The publication of AIG FPâ€™s
counterparty payments since the government took over the firm last fall is
fascinating if not terribly surprising. Perhaps more surprising was the US governmentâ€™s effort to shield this information from the light of day until the firm reported it â€“ I am assuming
without pressure from the government. So all those taxpayer dollars going
out to greedy and grossly irresponsible AIG FP execs who nearly single handedly
sank the free world pales in comparison with all the taxpayer dollars that kept
AIG FP contracts whole â€“ posting of collateral, fees from lending securities
for short sales (presumably borrowed from the warehouse of the real money
accounts at the AIG insurance groups) and payments to states under GIAâ€™s â€“ see http://www.aig.com/aigweb/internet/en/files/Counterparties_tcm385-153017.pdf
But what I am most curious
about is how much customers of AIG FP knew and when they knew it. In
other words know your counterparty applies here to doing billions of dollars in
CDS contracts by AIG FP that clearly did not have the balance sheet to support
the underwriting in adverse conditions. Our all the â€śinsuranceâ€ť bought
without any underlying exposureâ€¦a pure bet like a spec being long euro/dollar.
Are we to believe that one bank buying CDS from AIG FP had no idea others
were into the firm for large amounts? Or more directly how many firms
bought CDS on AIG FP (presumably written by other banks) to hedge counterparty
risk from AIG FP written CDSâ€¦how much, when, etc?
While politicians foam at
the mouth over $165mln â€śearmarkedâ€ť for deconstructed products specialists, and
NY Attorney General Cuomo tries to find a legal way to break contracts with AIG
FP geniuses (getting paid on way up and down), how about a little furry over
the AIG counterparties who have yet to lose a dime on any CDS written by AIG in
a world of ever rising claims and collateral postings. Why are US politicians not looking for legal means to break or
renegotiate the CDS contracts so that taxpayers do not pay for the sins of the
AIG FP rocket surgeons? Why for instance is the US government not negotiating some half-way mark on the
AIG CDS contracts at the very least? Because the banks canâ€™t take any
more stress? What about the current stress tests? This to me is a
giveaway of Himalayan proportions. NECâ€™s and White House economist
Summers said this weekend in a TV interview the US government canâ€™t tear up
contracts struck by a firm it now owns. Well there is a lot between
tearing up a contract and renegotiating with counterparties...again what did
counterparties know about AIG FP CDS business and when did they know it?
Go to the email and check the CDS bought on AIG.
The image of an indignant
Bernanke slamming a phone after learning of AIG FP CDS casino is almost as
incongruous as the 60 Minutes revelation that the Fed Chairman was a poncho
wearing waiter or bus boy at Dillon, SCâ€™s South of the Border Mexican
restaurant as a young man.
I wonder how many phones
Bernanke slammed on NY Fed President Geithner after learning of the shenanigans
the banks the Fed regulates were up to when it came to leverage, RMBS and risk
management. Or maybe it was tequila shots with Compadre Tim at Tio Pepeâ€™s
One lesson the entire mess
of the last 18 months has taught me is that banks that are too big to fail are
going to remain in the hands of bankers and not government receivers (assert as
much anyway) and banks will be given a license to print money when balance
sheets are freed of â€ślegacyâ€ť assets. Late on a credit card payment a few
times and a bank issuing a card can charge you up to 29% AR. If you donâ€™t
run a balance and late on a payment by a day the card issuer can charge you
$35-40 and charge you a full monthâ€™s interest balance. Does this make
Benito hotter than a habanera? I doubt it. As long as banks can get
government out ASAP of owning shares anything goes when it comes to low bank
risk, high cost for consumers banking. Indeed why should the Fed buy
Treasuries when US banks can play yakyuu (baseball) and milk the yield curve
(borrow at near zero cost and lend longâ€¦to the government). At 29% a card
issuer can ride out even Meredith Whitney default assumptions a lot longer than
perhaps many think possible.
I am not suggesting banks
are now emerging from the wreckage intact and ready to rock and roll. But
I am saying that this government is intent on making them whole by offering the
whole enchiladaâ€¦by any means necessary short of wiping out shareholders and
forcing bondholders to take haircuts. So the next time Citi nears $1, buy
it (to sell it near $2.50) and thank a government committed to keeping banks
suffering from Montezumaâ€™s revenge full of rice and beans.
Forex Trading News
Daily Forex Market News Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Forex News Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
POTENTIAL PRICE RISK: HIGH to Medium- Wed --14:15 GMT-- US- Industrial Production
POTENTIAL PRICE RISK: HIGH- Wed -- 15:00 GMT-- CA- Bank Of Canada Decision
John M. Bland, MBA co-founding Partner, Global-View.com
Max McKegg's Daily Forex Trading Forecasts
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.