Search
 

Swaps Collateral Battle Is On

FDIC vice chairman fights congressional efforts to block requirements that banks and their affiliates post collateral for internal swaps trades.

By Silla Brush and Jesse Hamilton, Bloomberg | Updated on July 21, 2015

Thomas Hoenig, vice chairman of the Federal Deposit Insurance Corp. (FDIC), is fighting congressional efforts that have made progress in freeing large banks from having to hold collateral against derivatives used internally.

Hoenig has cautioned lawmakers in meetings and in a letter last week about the risks of giving the firms a pass from posting collateral in trades with their own affiliates. In the July 16 letter addressed to members of the House and Senate on the banking, appropriations, and agricultural committees, he said requiring this kind of collateral could have shielded JPMorgan Chase & Co.’s main bank from the London Whale trading losses that totaled more than US$6 billion.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.