Results for tag "banking"

2 Articles

German banking system, causes for concern

The international financial system suffered fresh convulsions yesterday it emerged, that Germany’s IKB Deutsche Industriebank, one of the country’s leading small business lenders, had a huge exposure to high-risk sub-prime mortgages – mortgages which are made to borrowers with weak credit histories – in the United States. Defaults on these housing loans recently had reached a 10-year high, driving down the value of bonds backed by mortgages.

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Regulatory frameworks for financial derivatives

US DERIVATIVES REGULATION

The Obama administration on May 13th unveiled a sweeping plan to regulate over-the-counter derivatives in an attempt to seize greater control over an opaque market that has been blamed for exacerbating the financial crisis.

The move is intended to increase transparency and reduce risk in a market that is worth more than $680,000bn but has so far been largely unregulated. Many problems like accounting rules for derivatives have to be solved.

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