Given that these products were and are largely to totally unregulated, why should we not expect that there are examples of multiple CDSs on a given default exposure, in some cases by the same institution? Given the lack of appetite for prosecuting very wealthy individuals, why should there not be cases that have deliberately been set up to fail and then multiply insured? As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
according to the Financial Ombudsman
The essential components of fraud are intent to deceive and desire to induce the firm to pay more than it otherwise would. Establishing these points can require an analysis of the claimant's motives.
Unless you wish to ad,it it's all just a big casino I think it fits. Any idiot can face a crisis - it's day to day living that wears you out.
CDS contracts have been compared with insurance, because the buyer pays a premium and, in return, receives a sum of money if one of the specified events occur. However, there are a number of differences between CDS and insurance, for example: the seller need not be a regulated entity; the seller is not required to maintain any reserves to pay off buyers in the United States CDS contracts are generally subject to mark to market accounting, introducing income statement and balance sheet volatility that would not be present in an insurance contract; Hedge Accounting may not be available under US GAAP unless the requirements of FAS 133 are met; if it were not possible to, it could increase income statement and balance sheet volatility if the CDS was purchased to hedge an exposure; The buyer of a CDS does not need to own the underlying security or other form of credit exposure; in fact the buyer does not even have to suffer a loss from the default event.[2][3][4] By contrast, to purchase insurance the insured is generally expected to have an insurable interest such as owning a debt.
CDS contracts have been compared with insurance, because the buyer pays a premium and, in return, receives a sum of money if one of the specified events occur. However, there are a number of differences between CDS and insurance, for example:
