The intricacies of repo, haircuts, hypothecation and other arcane financial engineering are discussed and the ongoing threat to financial stability explained. The terminology of the explanation includes terms such as “Doomsday Machine” and “Dragon”. And the terminology may be too mild.
Tag Archives: JPM
Bank Earnings May Not Cover Put-Back Losses.
The Congressional Oversight Panel estimates that banks have not provisioned for $31 billion of mortgage put-backs that are coming in the next 2-3 years.