If anyone in the Congressional committees that oversee the Fed had an operating brain cell, they should flay the Fed for its indefensible posture of ignorance and powerlessness. I have to confess to being too annoyed to read the underlying document, its semi-annual report on financial stability and am so instead relying on what I take to be a fair-minded recap in the Financial Times, Fed warns of hidden leverage lurking in financial system.
What I find most disturbing is the rank dishonesty of the Fed, in what looks to be deliberate mischaracterization of the Archegos implosion, made worse by the central bank’s “And how can you expect us to know what’s going on?” anticipatory blame avoidance. To put this another way, the Fed is trying to pre-sell a “whocoulddanode?” defense when that sort of guilty faced, foot-shuffling act is unacceptable after the Fed was caught out being way behind the curve in the runup to the global financial crisis.
Archegos and Derivatives: What Went Wrong with Risk Management? | Opinions
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Hedgefonds: Der Zusammenbruch von Archegos wirft im Basler Ausschuss Fragen auf
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Credit Swiss in a $4.7 Billion Bind Thanks to Hwang’s Leveraged Bets Even the world’s biggest banks have difficulty keeping track of risks involved with financial innovations like CFDs.
Last updated on April 06, 2021
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
After “The Big Short” movie, followed by Netflix and HBO Max announcements for two movies on the GameStop saga, another contender enters the fray. “Bill” Hwang is likely to be immortalized as the most devastating trader in banking history.
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