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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 393.24+1.1%Dec 11 4:00 PM EST
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To: carranza2 who wrote (85924)1/16/2012 9:13:36 AM
From: carranza21 Recommendation  Read Replies (1) of 218437
 
To continue.....

And if rehypothecated assets can serve as collateral for derivatives (which seems to be the case), then things get infinitely worse because it means that assets which are in fact not owned by the bankrupt firm can be siphoned away by a derivatives holder.

Bottom line: senior debt is now insecure and assets which are not owned by the bankrupt firm can be taken post-bankruptcy without intervention of the BK court or Trustee.

This is really quite serious.
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