The Role of Derivatives in the Financial Crisis – Credit Default Swaps and the Economic Meltdown

Testimony of Michael Greenberger Law School Professor University of Maryland School of Law ~ Financial Crisis Inquiry Commission Hearing Dirksen Senate Office Building, Room 538 Washington DC Wednesday, June 30, 2010, 9am EDT ~ Introduction ~ I have been asked by the Commission to address the following four questions in my testimony: The history of … Read more

Florida Schools, the State of California and the State of Navada are Screwed – The Fed Owns Credit-Default Swaps on Debt Owed by all three – The Fed WILL Profit When they Default

My tin foil hat is officially broken, again… NPR reports: As part of the bailouts of AIG and Bear Stearns, the Federal Reserve Bank of New York spent more than $70 billion to buy toxic assets the companies owned. Last week, prompted by a lawsuit filed by Bloomberg News, the Fed finally told the world … Read more

Securitization, Mortgage-Backed Securities, Collateralized Debt Obligations, and Credit Default Swaps

From Wikipedia, the free encyclopedia Securitization is a structured finance process that distributes risk by aggregating debt instruments in a pool, then issues new securities backed by the pool. The term “Securitisation” is derived from the fact that the form of financial instruments used to obtain funds from the investors are securities. As a portfolio … Read more