Federal Reserve Bank of New York
AIG warns of potential losses in CDS portfolio
AIG could be exposed to further losses on the super-senior credit default swap (CDS) portfolio held by its subsidiary AIG Financial Products (AIG FP) should credit markets continue to deteriorate, according to a filing the company made to the US…
NY Fed to push ahead with Talf for toxic MBS loans
The Federal Reserve Bank of New York is to push ahead with plans to open up the Term Asset-backed Securities Loan Facility (Talf) to purchasers of toxic commercial mortgage-backed securities (CMBS) and residential mortgage-backed securities (RMBS).
OMG commits to new clearing and reporting targets
The Operations Management Group (OMG) on June 2 outlined its latest targets to improve the operational infrastructure of the over-the-counter derivatives industry.
OTC trade repository plan faces hurdles
Financial authorities in the US and Europe have advocated the introduction of a central trade repository to gather data on the over-the-counter (OTC) derivatives market, but there is concern that multiple repositories could do more harm than good.
Time for Talf
Since its emergence in the 1970s, securitisation has provided a vital source of funding for the US economy. But with a large part of the market effectively closed since the second half of 2008, the government is pinning its hopes on the Term Asset-Backed…
New York Fed appoints Dudley chief executive
The Federal Reserve Bank of New York today named William Dudley as its president and chief executive.
CME awaits SEC approval for CDS clearing
The launch date for the Chicago Mercantile Exchange (CME) Group's credit default swap (CDS) clearing platform remains unclear, almost two weeks after it received the green light from two US financial regulators.
AIG terminates $46.1 billion of credit-default swaps (CDS)
AIG announced on Tuesday that an off balance sheet vehicle created by the Federal Reserve Bank of New York (FRBNY) has purchased $46.1 billion of its toxic collaterised debt obligations (CDOs).
CDS clearing house to miss November 30 deadline
The November 30 target for central clearing of index credit default swap (CDS) trades set by a consortium of industry associations and investment banks is unlikely to be met, sources within the Federal Reserve Bank of New York have said.
Paulson: buying MBSs no longer Tarp priority
Treasury secretary Hank Paulson closed the door to systematic US government purchases of illiquid mortgage-backed securities under its $700 billion Troubled Asset Relief Programme (Tarp), during a briefing in Washington, DC today.
Treasury and Fed help AIG lay-off CDO risk
AIG was shored up by a restructuring plan hammered out by the US Treasury and Federal Reserve Bank of New York today, which involved the creation of an off-balance-sheet vehicle to neutralise some of the insurer’s hefty collateralised debt obligation …
New York Fed hires Bear Stearns' ex-CRO
The Federal Reserve Bank of New York has hired Michael Alix, previously chief risk officer at Bear Stearns, as a senior vice-president in the bank supervision group.
November target for CDS central counterparty
Dealers have pledged to the Federal Reserve Bank of New York to begin using a central counterparty for clearing credit derivatives by the end of November.
Rethinking CDSs
Regulation
New York Fed appoints Krieger to lead new credit risk management group
The Federal Reserve Bank of New York has created a new payments policy and credit risk management group. The bank has appointed Sandra Krieger to lead it, and she will also become a member of the bank’s management committee.
Isda submits industry goals to New York Fed
Daily news headlines
Progress made on equity derivatives backlogs
Investment banks have continued to make progress with reducing confirmation backlogs associated with executing over-the-counter equity derivatives trades. The average backlog has been reduced to nine days, down from 19 days in November 2006, according to…
Isda praises letter to Geithner on equity derivatives
The International Swaps and Derivatives Assocation (Isda) has said it “applauds and supports” a letter from 17 investment banks to Timothy Geithner, president of the Federal Reserve Bank of New York, which commits them to improving the efficiency of the…
SwapsWire launches equity derivatives give-up service
London-based electronic confirmation service SwapsWire today launched its PBWire service, which supports give-ups on equity derivatives trades. PBWire allows buy-side clients, executing brokers and prime brokers to communicate give-up details in real…
Major banks reduce unconfirmed trades by 70%
Dealers with large derivatives portfolios have made significant progress in reducing the number of unconfirmed credit derivatives trades, according to the latest meetings organised by the Federal Reserve Bank of New York which were held in New York…
JP Morgan goes live on T-Zero
JP Morgan went live on T-Zero’s post-trade processing platform for credit derivatives on Monday. It is the first dealer to join the platform since Goldman Sachs initially used the technology after its trade with KBC Alternative Investment Management on…