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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: axial who wrote (1546)	3/30/2010 10:25:39 AM
From: axial	3 Recommendations Read Replies (1) \| Respond to of 2794

California Treasurer Asks Six Banks for Swap Details California’s treasurer asked six investment banks that underwrite the state’s bonds to explain why they also market credit-default swaps on them, saying such contracts may cost taxpayers by exaggerating credit risk... ... “I have no preconceived notions about the effect of CDS trading on California GO bond prices,” Lockyer said in a letter to Goldman Sachs Chief Executive Officer Lloyd Blankfein, referring to credit-default swaps and general-obligation bonds. “I do, however, worry about firms selling our bonds, on one hand, and trading CDS on our bonds, or otherwise participating in that market, on the other.” bloomberg.com Jim