The Derivative Project

FCIC Report

The Derivative Project Requests Investigation by House Tea Party Caucus on Use of Taxpayer Dollars for AIG/Goldman Collateral Calls

On April 14, 2011, The Derivative Project submitted a request to Congresswoman Michelle Bachman for a House Tea Party Caucus investigation into possible constitutional misuse of U.S. taxpayer dollars given to AIG and passed on to Goldman Sachs for collateral calls on speculative financial contracts, that were created by AIG without…

Attention House Financial Services: What Hasn’t Been Highlighted for You In the FCIC Report?

Page 350 of the Financial Crisis Inquiry Report, published January 2011 states: “On Tuesday morning, the Fed put a number on the table:  it would loan $85 billion so that AIG could meet its immediate obligations….”   “The Fed stated a “disorderly failure of AIG could add to already significant…

The Three Mistakes of TARP – FCIC, Show the American People that Regulatory Capture Has Ended

The Derivative Project wrote last week of regulatory capture.  Simon Johnson, MIT Economics Professor and former IMF official, outlined yesterday in his blog, Baseline Scenario , the three mistakes of TARP.  All of these mistakes are the result of regulatory capture.  We believe strongly the most significant of these mistakes…

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 –…