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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
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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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