Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
So, uh, can't we just ban that?

And how in gods name can they short a non-securitised loan they have issued themselves?

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Mon Apr 26th, 2010 at 04:04:01 PM EST
[ Parent ]
One way is to swap the interest and principle payments for the loan bank A made for the interest and principle payments of a different loan that bank B made. And banning that, or regulating it very severely rather, is precisely what is being proposed in the US banking reform legislation in Sen. Blanche Lincoln's version. The banking industry is resisting it full bore, however, since that kind of insurance trading is how so many US banks posted their most profitable years on record last year, during the worst banking crisis in 70 years.
by santiago on Mon Apr 26th, 2010 at 04:32:05 PM EST
[ Parent ]

Display:

Top Diaries

Occasional Series