The Derivative Project

Counterparty Credit Risk

Tucked on Yesterday’s Back Page of WSJ is The Issue for Congress to Investigate

The Derivative Project has long been a proponent of banning naked credit default swaps.  Angela Merkel of Germany was the first major economy to do so.  China and India, learning from the shocking failures of the mature economies’ derivative dabbling, has also banned them. The Wall Street Journal describes today…

FCIC’s Preliminary Report Defines Counterparty Credit Risk and Its History from a Regulatory Overview

The Financial Crisis Inquiry Commission (FCIC) released a Preliminary Report in June, 2010.  If one reads through the history of OTC Derivatives, buried in the history is the subject of “counterparty credit risk” and OTC derivatives’ exemption from the Commodity Exchange Act. FINANCIAL CRISIS INQUIRY COMMISSION PRELIMINARY STAFF REPORT –…