US, NY to investigage credit default swaps market
The US government and New York attorney general will investigate the credit default swap (CDS) market to see if short sellers violated any laws.
Interestingly, many are blaming the CDS market for the Wall Street meltdown. The Bush administration claimed the taxpayer needed to purchase "toxic" mortgage assets to save these financial companies. It may be that rumors helped cause a collapse in credit default swaps used to insure banks against mortgage defaults. When these swaps failed, the mortgage-related securities also failed.
Interestingly, many are blaming the CDS market for the Wall Street meltdown. The Bush administration claimed the taxpayer needed to purchase "toxic" mortgage assets to save these financial companies. It may be that rumors helped cause a collapse in credit default swaps used to insure banks against mortgage defaults. When these swaps failed, the mortgage-related securities also failed.
StarPhoenix
US, Cuomo Open Credit Default Swap Investigation (Update1)
Bloomberg -1 hour ago
Cuomo has been investigating whether credit-default swaps were manipulated by short sellers to spread false rumors about financial companies. ...
US, NY Probing Credit-Default SwapsWall Street Journal
US probing credit-default swap marketInternational Herald Tribune
Joint US-New York Inquiry Into Credit-Default SwapsNew York Times
Labels: credit default swaps, mortgage crisis, stock market meltdown
posted by Paul Kekai Manansala at 10:01 AM
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