CDSs

Derivatives Played "No Role" in Financial Crisis?

At the Financial Services Inquiry Commission hearing, former Wall Street derivatives executive Steven Kohlhagen claimed derivatives generally played "no role" in causing the financial crisis. This puzzling argument doesn't pass the straight-face test.

Legal Briefing: Will Big Banks Pay Over Misleading Ratings?

MBIA has sued Merrill Lynch because the CDOs on which Merrill bought insurance from MBIA were AAA-rated junk. MBIA says Merrill knew the CDOs didn't deserve the top rating at the time it insured them. If this case succeeds, big banks may find dud ratings very expensive.