82,890
edits
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
Line 1: | Line 1: | ||
{{a|g|{{image|leagle beagle|jpg|Now, what is this “[[Aïessdiyé]]” of which you speak?}} }}{{dpn|/ˌlɪtɪˈɡeɪʃᵊni/<br> (Also [[suish]], [[squabblative]]|adj}}Of a commercial issue, important, basically straightforward, but thanks to the intervention of [[professional advisers]], rendered in language so opaque that no-one outside an [[Clavam Hominum Senum Pallidorum|inner cabal]] knows what is really going on. | {{a|g|{{image|leagle beagle|jpg|Now, what is this “[[Aïessdiyé]]” of which you speak?}} }}{{dpn|/ˌlɪtɪˈɡeɪʃᵊni/<br> (Also [[suish]], [[squabblative]]|adj}}Of a commercial issue, important, basically straightforward, but thanks to the intervention of [[professional advisers]], rendered in language so opaque that no-one outside an [[Clavam Hominum Senum Pallidorum|inner cabal]] knows what is really going on. | ||
It often describes commercial endeavours that are predicated on [[plausible deniability]] — for example, that [[credit default swap]]s are not [[insurance contract]]s, or that [[equity swap]]s aren’t [[stamp duty|stampable]] investments in [[shares]] — which fictions oblige practitioners to adopt silly walks, secret handshakes and elliptical ways of describing | It often describes commercial endeavours that are predicated on “[[plausible deniability]]” — for example, that [[credit default swap]]s are not [[insurance contract]]s, or that [[equity swap]]s aren’t [[stamp duty|stampable]] investments in [[shares]] — which fictions oblige practitioners to adopt silly walks, use secret handshakes and invent elliptical ways of describing mundane things, all in the service of ''not uttering inconvenient realities''. | ||
They become [[squabblative]] because while the [[legal eagle|practitioners]] who propagate | They become [[squabblative]] because, while the [[legal eagle|practitioners]] who propagate them are well drilled, fluent and strongly incentivised to maintain their theatre, their counterparts in the [[Litigation|litigation department]], at the [[King’s Counsel|bar]] and [[King’s Bench Division|on the bench]] are not. | ||
We have remarked before about the differing [[purpose|functions]] a contract has during its lifecycle, for sales, operations and trading departments. When it reaches cataclysm, the parties find a different purpose again: to deny utterly the tacit accommodations they made to each other in fair times to reach mutual goals in a compliant and tax efficient manner. This is the great disadvantage of hindsight: how we are goaded to forget. | We have remarked [[Purpose|before]] about the differing [[purpose|functions]] a contract has during its lifecycle, for sales, operations and trading departments. When it reaches cataclysm, the parties find a different purpose again: to deny utterly the tacit accommodations they made to each other in fair times to reach mutual goals in a compliant and tax efficient manner. This is the great disadvantage of hindsight: how we are goaded to forget. | ||
But litigation advisers and those who adjudicate disputes don’t have even that much incentive, and none of the practical experience | But litigation advisers and those who adjudicate disputes don’t have even that much incentive, and none of the practical experience. | ||
There are $60 trillions of derivative notional outstanding at any time: documenting and managing them day-to-day keeps a [[military-industrial complex]] of worker-bees gainfully employed from Nashville to Manila. | |||
ISDAs come before the courts one at a time. They are exotic specimens, rather like those rare ghost orchids retrieved from the sweaty depths of a tropical swamp that are prone to cause hallucinations. It is usually obvious that no-one conducting arguments about them has much of a sense of what they are for or how they work, and those adjudicating certainly don’t.<ref>{{Casenote|Marine Trade|Pioneer}} is a great example. The outcome — fortunately now overruled — is just patently absurd to anyone who has spend a week in the derivatives business.</ref> | |||
There are some cases where the confusion goes deeper: the | And here {{icds}}’s vernacular plays into the hands of caprice and obstrepereity. That wanton left-handedness ''begs'' to be misunderstood. Just try asking a non-specialist to glom onto a [[flawed asset]] clause,<ref>{{casenote|Metavante|Lehman}}</ref> a credit derivative {{cddprov|Event Determination Date}}, or even the {{isdaprov|Notices}} provisions of an {{isdama}}.<ref>{{casenote|Greenclose|National Westminster Bank plc}}</ref> | ||
There are some cases where the confusion goes deeper: the [[Jolly Contrarian|JC]]’s contention is that [[credit default swap]]s are an intrinsically left-handed way of solving a straightforward problem, and as such are bound to create fear and loathing. | |||
But this all adds to the JC’s mounting, great conspiracy theory that the whole the financial services industry, and perhaps even commerce itself, is really a perpetual motion machine devised by the various guilds of professional advisers for the sole purpose of [[Rent-seeking|extracting rent]] from it. | |||
{{sa}} | {{sa}} | ||
*[[Plausible deniability]] | *[[Plausible deniability]] |