Absence of regulation meant swaps not supported by capital reserves
The absence of regulation meant that, unlike a traditional insurance contract, there was no regulatory requirement to have adequate capital reserves to pay back the liabilities embodied in the credit default swap.
Immediately related elementsHow this works
-
The Global Financial Crisis »The Global Financial Crisis
▲
Immediate triggers of the financial crisis? »Immediate triggers of the financial crisis?
▲
Pathology in the Credit Default Swaps market »Pathology in the Credit Default Swaps market
▲
Credit default swaps became divorced from underlying value »Credit default swaps became divorced from underlying value
■
Absence of regulation meant swaps not supported by capital reserves
●
Absence of capital set aside sucked companies in »Absence of capital set aside sucked companies in
●
Allowed swaps contracts to be made many times over »Allowed swaps contracts to be made many times over
+Commentaires (0)
+Citations (0)
+About