Reforming Repo Rules

by Guest Author Mark Roe, Project Syndicate and Harvard Law School CAMBRIDGE – Sometimes, we just don’t learn. After the financial crisis, the United States enacted the Dodd-Frank Act to overhaul American financial regulation, with the aim of reducing the risk of another financial meltdown. But it did nothing to reform “repo” lending – arguably …

Notes on European and USA Bank Exposures

by Elliott Morss There is a lot of talk about bank contagion and exposures resulting from the Eurozone crisis. There is much less talk about the high unemployment rates and other hardships being forced on the weaker Eurozone countries by the ECB/IMF cadré. But for now, let’s focus on bank contagion and exposure. What do …

JP Morgan Markets Its Latest Doomsday Machine

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.