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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (84283)	12/8/2011 1:35:20 PM
From: Giordano Bruno	Read Replies (1) \| Respond to of 221985

You are being facetious?

To: Haim R. Branisteanu who wrote (84283)	12/8/2011 9:03:44 PM
From: TobagoJack	Read Replies (1) \| Respond to of 221985

not good, just in in-tray On Thu, Dec 8, 2011 at 5:09 PM, M wrote: Quick question. Let's say the UK closes this "loophole" and follows US procedures. Wouldn't that entail a dramatic shrinkage of liquidity in the banking system? If so, as Michael Tortorelli used to say, "SELL EVERYTHINGGGGGGGG!" M On Fri, Dec 9, 2011 at 8:59 AM, M wrote: Good article on the intricacies of MF Global - goes in to hypothecation, re-hypothecation, etc. Looks like banks are abusing UK rules rather than US ones in this case.... Put your money with a local, regional brokerage? M newsandinsight.thomsonreuters.com SNIP: Under the U.S. Federal Reserve Board's Regulation T and SEC Rule 15c3-3, a prime broker may re-hypothecate assets to the value of 140% of the client's liability to the prime broker. For example, assume a customer has deposited $500 in securities and has a debt deficit of $200, resulting in net equity of $300. The broker-dealer can re-hypothecate up to $280 (140 per cent. x $200) of these assets. But in the UK, there is absolutely no statutory limit on the amount that can be re-hypothecated. In fact, brokers are free to re-hypothecate all and even more than the assets deposited by clients. Instead it is up to clients to negotiate a limit or prohibition on re-hypothecation. On the above example a UK broker could, and frequently would, re-hypothecate 100% of the pledged securities ($500). This asymmetry of rules makes exploiting the more lax UK regime incredibly attractive to international brokerage firms such as MF Global or Lehman Brothers which can use European subsidiaries to create pools of funding for their U.S. operations, without the bother of complying with U.S. restrictions. In fact, by 2007, re-hypothecation had grown so large that it accounted for half of the activity of the shadow banking system.Prior to Lehman Brothers collapse, the International Monetary Fund (IMF) calculated that U.S. banks were receiving $4 trillion worth of funding by re-hypothecation, much of which was sourced from the UK. With assets being re-hypothecated many times over (known as “churn”), the original collateral being used may have been as little as $1 trillion – a quarter of the financial footprint created through re-hypothecation.

To: Haim R. Branisteanu who wrote (84283)	12/9/2011 1:25:51 AM
From: elmatador	Read Replies (1) \| Respond to of 221985

Everybody is European, until the time to pay the bill!! Summit abandons EU-wide treaty change. Cameron said: "What's on offer isn't in Britain's interests," he said, adding that he would not put the proposed deal before British parliament as it was an accord outside EU structures. Hungary also decided to remain outside the proposed treaty, while the Czech Republic and Sweden wanted first to consult with their parliaments bbc.co.uk

To: Haim R. Branisteanu who wrote (84283)	12/9/2011 9:07:01 AM
From: elmatador	Read Replies (1) \| Respond to of 221985

Leaked Strauss-Kahn Hotel Footage dailymail.co.uk

To: Haim R. Branisteanu who wrote (84283)	12/9/2011 9:20:44 AM
From: elmatador	Read Replies (2) \| Respond to of 221985

Once DSK pushed for financial regulations he was doomed Therefore, financial regulations should have at least been imposed on all banking-like activities. As if that is not enough, the IMF Managing Director (Dominique Strauss-Kahn) also added that the financial crisis originated as a result of failure on the part of financial regulations to guard against excessive risk-taking in the financial system. memoireonline.com Financial sector repair and reform: bank stress tests need to be linked to some form of recapitalization, on extending supervision to the shadow banking sector, dealing with systemically important financial institutions, implementing the macroprudential framework, cross-border banking resolution, and completing work on possible taxation of the financial sector. imf.org Once DSK pushed for financial regulations he was doomed.... Someone framed DSK knowing that the blame would fall on France since DSK was seeking the PM job.