Winehole23
01-24-2012, 01:46 PM
Clearing houses -- the plumbers of high finance (http://www.reuters.com/finance) -- could become the next casualties of the crisis as regulators insist that banks run their riskiest and private trades through them.
At the moment banks conduct over-the-counter trades between themselves: one to one dealings often involving multimillion-euro bets on differences in interest or other rates, the scale and complexity of which can be difficult to track.
But with the financial crisis still raging and banks, hedge funds and governments alike faced with unforeseen levels of debt, regulators are now forcing this shadowy, $600-trillion industry into the light.
http://www.reuters.com/article/2012/01/16/clearing-default-idUSL6E8CD4AL20120116
At the moment banks conduct over-the-counter trades between themselves: one to one dealings often involving multimillion-euro bets on differences in interest or other rates, the scale and complexity of which can be difficult to track.
But with the financial crisis still raging and banks, hedge funds and governments alike faced with unforeseen levels of debt, regulators are now forcing this shadowy, $600-trillion industry into the light.
http://www.reuters.com/article/2012/01/16/clearing-default-idUSL6E8CD4AL20120116