Tag: ABCP

Business Models, regulation

The Magnetar Trade – otherwise known as ‘The Black Hole”

Colin Henderson

This is a complex article at ProPublica that in simple terms illuminates all that was wrong with CDO’s and synthetic CDO’s. These instruments allowed investment bankers like Magnetar to circumvent insider trading rules.  The story of Goldman Sachs being charged by the SEC for fraud is only the beginning.  Financial reform is the last thing many financiers and bankers will have to worry about as this story takes hold. Magnetar involved all the big names and most are listed here.  You will see many recognisable names, eg. Citi, Wachovia, Deutsche, Lehmans, UBS, Mizuho, JP Morgan.  At this point it appears … Continue reading The Magnetar Trade – otherwise known as ‘The Black Hole”

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Arrangement shelters ABCP worth 27% of Canadian Bank equity base

Colin Henderson

The always clear thinking Fareed wrote this piece on the Canadian Banking system and how it is the envy of the world.  The facts outlined are indisputable and the distinctions between the US and Canadian systems that favour care and moderation in Canada are all true. However there is one other event he does not mention, that has quietly gone on for the last 14 months and in fact just completed in January this year with the announcement noted below on the E&Y site dated Jan 21st, 2009. The story here goes back to December 2007, when I first noted … Continue reading Arrangement shelters ABCP worth 27% of Canadian Bank equity base