Structured products
Failure of $700bn bailout sparks equity slump
US equity markets have experienced their biggest one-day drop in history following the failure of the US Congress to pass legislation that would have empowered the Treasury department to buy up to $700 billion in mortgages and other assets from…
CDS spreads push out as bailout drags on
The cost of protection on some of the world’s largest dealers surged on Friday as uncertainty grew over the US government’s $700 billion plan to purchase devalued assets from financial institutions.
Bailout saga pushes CDS spreads ever wider
After another tumultuous 24 hours that saw talks stall on the US government’s $700 billion plan to purchase devalued assets from financial institutions and the forced closure of Washington Mutual, credit default swaps (CDSs) for major dealers continued…
JP Morgan acquires Washington Mutual
JP Morgan has stepped in to acquire Washington Mutual for $1.9 billion, after the Seattle-based bank was closed by US regulators on Thursday evening.
Regulation of CDS market ‘will be counterproductive’
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UK calls for greater global regulation and curbs on executive pay
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Update: HK SFC publishes list of Lehman-related structured products / outstanding values of notes
The Securities and Futures Commission (SFC) of Hong Kong has published a list of all unlisted Lehman Brothers-related retail structured notes. The list offers data on the issuers, the issues, the issue dates and the maturity dates pertaining to notes…
Singapore distributors appoint independent parties to oversee investigations into product misselling
Structured products distributors in Singapore, which sold DBS High Notes 5, Lehman Minibonds and Merrill Lynch Jubilee Series 3 LinkEarner Notes, in consultation with the Monetary Authority of Singapore (Mas) have appointed independent parties to oversee…
Update: HK SFC commences formal investigation into Minibond misselling
The Hong Kong Securities and Futures Commission (SFC) has commenced a formal investigation into allegations that Lehman Brothers-related retail structured notes, Minibonds, may have been misrepresented and mis-sold to Hong Kong investors.
JP Morgan launches mobile forex platform
A new proprietary e-trading platform that allows clients to access real-time executable streaming foreign exchange rates (forex) from their desktops and Blackberry devices was launched on Wednesday by JP Morgan.
Restructuring and resignations at Fannie Mae
US housing agency Fannie Mae has undergone significant management changes after going in to conservatorship on September 7.
Markets dip as bailout drags on
The financial markets have reacted negatively as the US government rescue plan for the financial sector makes slow progress through Congress.
New York governor announces CDS regulation
The governor of New York, David Paterson, has declared parts of the credit default swaps (CDS) market will be regulated from January 2009, in an attempt to clamp down on what he described as a major contributor to the emerging crisis on Wall Street.
Remaining investment firms become Fed-regulated banks
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Goldman and Morgan become bank holding companies
Goldman Sachs and Morgan Stanley have applied to the US Federal Reserve to become bank holding companies, in response to the crisis that has seen the bankruptcy of Lehman Brothers and the acquisition of Merrill Lynch by Bank of America.
Goldman and Morgan become bank holding companies
Goldman Sachs and Morgan Stanley have applied to the US Federal Reserve to become bank holding companies, in response to the crisis that has seen the bankruptcy of Lehman Brothers and the acquisition of Merrill Lynch by Bank of America.
CDS spreads continue to tighten
Credit default swap (CDS) spreads on financial institutions had tightened further by close of play on September 19, as market confidence continued to rise after large injections of cash from central banks
Australia extends shorting ban to covered short sales
Sydney-based regulator the Australian Securities and Investments Commission (Asic) today extended its ban on naked short-selling – introduced last week – to covered short sales of all listed stocks.
Historic deal to remove toxic mortgage assets close to approval in the US
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The value of your Lehman structured products
If you own a Lehman Brothers structured product issued in Europe, on a basic level, it works like this. The basic components you are ultimately invested in are a bond and an option. The bond is a zero coupon, which means it is issued at a price well…
Short selling ban could hit derivatives business
A short selling ban imposed by the US Securities and Exchange Commission (SEC) could result in reduced equity derivatives and structured products business for dealers.
SEC and FSA ban short selling on financials
The US Securities and Exchanges Committee (SEC) and UK Financial Services Authority (FSA) have both announced temporary bans on the short selling of financial stocks, as they look to halt the slide in bank equity prices.
Barclays to launch FX trend index
Barclays Capital will next week launch the latest in its range of investable foreign exchange indexes, the Barclays Adaptive FX Trend Index. This follows the Intelligent Carry Index (ICI) the bank launched in 2006 and the FX Volatility Indices it…