Sunday, February 28, 2010

Times calls Foul in "Fair Game"

Fair Game

It’s Time for Swaps to Lose Their Swagger

New York Times Published: February 27, 2010
 
“USING these instruments in a way that intentionally destabilizes a company or a country is — is counterproductive, and I’m sure the S.E.C. will be looking into that.”
 
That’s what Ben S. Bernanke, chairman of the Federal Reserve, said last week when lawmakers asked him about credit default swaps during his Congressional testimony. Concerns are growing about such swaps — securities that offer insurance-like protection and helped tip over the American International Group in 2008 when it couldn’t pay mounting claims on the contracts.

Now, there are fears that the use of these swaps may also help propel entire countries — think Greece — to the precipice.

Read more of the latest, Here:


http://www.nytimes.com/2010/02/28/business/economy/28gret.html

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