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

To: ahhaha who wrote (426)	10/7/1998 9:37:00 AM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 2794

You absolutely can differentiate on capital controls. There is already a precedence in the derivatives industry based on BIS standards. There are specific capital requirements for type of business, maturity and quality of counterparty. The information on these exposures is routinely monitored by the banks and reported to the appropriate supervisory authorities. It would be a very simple matter to extend this concept to business done with highly levered funds. Your comment that even If you had a police state, with reviews of all internal bank actions, you still couldn't adequately control actions is completely off the mark and demonstrates you have no idea how the modern banking industry operates. The Fed auditors for instance have access to all transactional flow to the minute detail and direct access to individuals to explain the reasons for their actions. They don't routinely go to that level of detail but do when they feel the need or just want to keep the banks sharp. Trust me on this, I've been through it.