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Template:Flawed asset capsule: Difference between revisions
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That was then; 1987; they hadn’t even invented the {{csa}}. Even once they had, it would be common for a muscular [[broker/dealer]]s to insist on one-way margining: “You, no-name pipsqueak highly [[Leverage|levered]] [[hedge fund]] type, are paying ''me'' [[variation margin]] and [[initial margin]]; I, highly-capitalised, prudentially regulated<s>, [[Balance sheet|balance-sheet]] [[Leverage|levered]]</s><ref>Amazing in hindsight, really, isn’t it.</ref> financial institution, am not paying ''you'' ''any'' [[margin]].” | That was then; 1987; they hadn’t even invented the {{csa}}. Even once they had, it would be common for a muscular [[broker/dealer]]s to insist on one-way margining: “You, no-name pipsqueak highly [[Leverage|levered]] [[hedge fund]] type, are paying ''me'' [[variation margin]] and [[initial margin]]; I, highly-capitalised, prudentially regulated<s>, [[Balance sheet|balance-sheet]] [[Leverage|levered]]</s><ref>Amazing in hindsight, really, isn’t it.</ref> financial institution, am not paying ''you'' ''any'' [[margin]].” | ||
Well, those days are gone, and bilateral zero-threshold margin arrangements are more or less obligatory nowadays, so it’s hard to see the justification for a [[flawed asset]] provision. But we still have one, and modish post-crisis threats by regulators worldwide to stamp them out seem, | Well, those days are gone, and bilateral zero-threshold margin arrangements are more or less obligatory nowadays, so it’s hard to see the justification for a [[flawed asset]] provision. But we still have one, and modish post-crisis threats by regulators worldwide to stamp them out seem, some time in 2014, to have come to a juddering halt. | ||