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Original Message --------
Dear
Colleagues:
Regulatory reforms outlined by Timothy Geithner (NPR: Geithner Outlines Regulation Overhaul, 26 March
2009) now provides a template for all United Nations member countries.
Consensus is building for collaborative fast track analysis,
refinement and implementation for containment and stabilization of the
global financial system.
In the United States, the topic of insurance fraud, in the context of
non-capitol based derivative instruments, is now a focus of legal
action and recovery of taxpayer money paid to AIG
counterparties.
After AIG was rescued by the U.S. from collapse last
year,
banks that bought credit-default swaps got $22.4 billion in collateral
and
$27.1 billion in payments to retire the contracts, the insurer said
earlier
this month. Goldman Sachs, Deutsche Bank AG and Societe Generale SA
were
among the largest recipients. The letter asked whether holders received
100 cents on the dollar for their securities, a sum they wouldn’t be
entitled
to get unless their bonds actually defaulted. -- AIG
Payments to Banks Should Be Probed, Lawmakers Say: Bloomberg, 26 march 2009.
The role of credit agencies that facilitated the non-capitol based
foundation of the shadow banking system, broadens the focus for legal
containment of all non-capitol based over-the-counter
derivatives ($684 Trillion: BIS Projection).
A capitol foundation for all financial instruments is the foundation
for systemic viability.
Humanitarian Relief Operations
The size and scope of grassroots challenges facing international relief
operations are viewed as exponentially more severe then those in the
United States:
Residents of Sacramento’s Tent City to Move to
Fairground: New York Times, 25 March 2009.
Related:
-------- Original Message --------
Dear
Colleagues:
Excellent progress is being made regarding challenges associated with
regulatory oversight of the derivatives market. We are looking
forward
to 100% transparency, in the form of an accounting overview of progress
regarding resolution of the $684 Trillion toxic asset (valued based on
the
underlying collateral that backs the asset) containment strategy.
According to the Bank for International Settlements, the
notional value of over-the-counter derivatives worldwide reached a
mind-boggling $684 trillion last summer. That's more than six times the
scale they had reached by 2002 when Warren Buffett dubbed derivatives
"financial weapons of mass destruction". -- $10.2
Trillion? A Mere Drop in the Bucket: Motley Fool, March 24, 2009.
In the context of the leadership to bring about full regulation of
these variables in the United States, equivalent efforts and
transparency is needed throughout the global financial system for
stabilization.
Btw: I think we have consensus that it would have been
much
easier to contain this problem in the late 90's when the elimination of
regulatory oversight of the derivatives market was coordinated in
conjunction
with the global infusion of cash associated with global remediation for
the Year 2000 conversion (HRI:
Risk Analysis). Tremendous profits were generated, but
unfortunately we also experienced two market crashes (01-02; 07-08).
Looking forward to your feedback.....
Stephen M. Apatow
Founder, Director of Research & Development
Humanitarian Resource Institute
Humanitarian University Consortium Graduate Studies
Center for Medicine, Veterinary Medicine & Law
Phone: 203-668-0282
Email: s.m.apatow@humanitarian.net
Internet: www.humanitarian.net
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Humanitarian Resource Institute
Legal Resource and Assistance Center
The Humanitarian Resource Institute Legal Resource and
Assistance Center provides access to initiatives that include the
Consumer's Guide to Legal Help on the
Internet (American Bar Association - Free Legal Help, Self
Help, Legal Aid), Pro Bono Legal Assistance (United States and
International), and online tools for legal research.
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