The Derivative Project

Introducing the Goldman Syndrome – Review of B. U. Professor Bodie’s Book: Why Academics and Industry Blame Investors for 2008 Retirement Losses

The Derivative Project is introducing a new term, in honor of ex-Goldman Director Greg Smith, “the Goldman Syndrome.” The Goldman Syndrome:  It is a situation when Wall Street does not act in the best interests of its clients, despite being “fiduciaries”.  It is defined as a circumstance when Wall Street…

In honor of Mr. Smith’s Op-Ed on his Goldman Departure, We Remind Congress of the Goldman Libya Trades that lost Billions

The Derivative Project is re-running our June 3, 2011 Blog Post in thanks to Mr. Smith’s actions today in his New York Times Op-ed, highlighting as Mr. Smith has said, Goldman puts their interests before that of their clients. We hope Congress will take swift and clear action to ensure…

Why Goldman’s Equity Derivative Director’s Departure Statements Can No Longer Be Ignored by SEC and Congress

Goldman Sach’s Executive Director of Equity Derivatives and head of the Firm’s equity derivative business reported in an Op-Ed piece today, March 9 Letter to Chairwoman Shapiro by The Derivative Project. Mandated training on equity derivatives for every SEC registered investment advisor is woefully long-overdue, but it must also accompany a strict…

How the Greek CDS Trigger Shows Fallacy of AIG “Non-Trigger” and the Duped Taxpayer

The Wall Street Journal Editorial page crowed this morning, Greece’s Credit Non-Event, Bond default insurance is triggered. World does not end.”  “The settlement process is expected to go smoothly,” said the Wall Street Journal.  The Editorial Board goes on to say in this Opinion piece, “Credit default swaps got a…

Dodd-Frank Passed in 2010, But the Financial Blogosphere is Just Starting to Focus on a Fundamental Issue

Finally, progress!  We share with you a Blog Post from The Big Picture, Barry Riholtz’s Blog. Credit Default Swaps are Insurance Products, Not Tradeable Assets, that was linked to on the New York Times news service that aggregates and publishes links to Blogs.  Just “Google” Blog Runner- Derivatives to follow…

Casino Capitalism and Why the Average American Should Care About the Hellenic Republic “Credit Event”

American taxpayers are being forced to spend millions to monitor speculative bets by a few banks and hedge funds on”credit events”, which is the determination if a bond is in default of its covenants and if there will be payouts on credit default swaps on these bonds. Here is the…