2005 Bankruptcy Laws and I.S.D.A. (wink wink nod nod)

[beefsteak]

Found on ZERO this morning...

Mystery of the Day: Who Wrote This Email to the Fed Just Before Lehman's Collapse?

http://www.zerohedge.com/sites/default/files/pictures/picture-4533.png (http://www.zerohedge.com/users/eb)
Submitted by EB (http://www.zerohedge.com/users/eb) on 03/23/2012 10:15 -0400



Bankruptcy Code (http://www.zerohedge.com/taxonomy_vtn/term/7844)




Submitted by EconomicPolicyJournal.com (http://english.economicpolicyjournal.com/2012/03/mystery-of-day-who-wrote-this-email-to.html)

And, here it is....
http://www.zerohedge.com/sites/default/files/images/user4533/imageroot/2012/03/LehmanFedLetter.PNG


Feel free to leave your best guess(es) in the comments along with your reasoning. We have our own, but will wait to disclose so as not to corrupt the noodling process.



On another note, doesn't this pretty much destroy the systemic risk argument that was used to justify the sweeping changes to the bankruptcy code in 2005, which grants exemptions for derivatives and repos from automatic stay?

In other words, if all the counterparties to a bankrupt entity can liquidate the counterparty's collateral they're holding for repos and derivative trades, doesn't that fuel the "wave of selling unlike any we have seen before"?



Thank you ISDA (http://www2.isda.org/about-isda/board-of-directors/).

---------------

And thank you George Bushie Jr. :p

[chad]

5 years...2013. qe3 baby!

[osoab]

Was it Fisher of the Dallas Fed?

The below is from the last couple of days.


Fed’s Fisher Says ‘Too-Big-to-Fail’ Problem Remains (http://blogs.wsj.com/economics/2012/03/21/feds-fishers-says-too-big-to-fail-problem-remains/)




By Michael S. Derby

Despite new laws aimed at reforming the financial system, the nation’s largest banks remain a threat to stability and should be broken up, a Federal Reserve official said Wednesday.
The so-called too-big-to-fail banks “remain a hindrance to full economic recovery and to the very ideal of American capitalism,” Federal Reserve Bank of Dallas President Richard Fisher said in a letter accompanying his bank’s annual report. “Downsizing the behemoths over time into institutions that can be prudently managed and regulated across borders is the appropriate policy response,” he said.

[osoab]

Here is the link to the article.

Beefsteak, I didn't see it in your OP.

Mystery of the Day: Who Wrote This Email to the Fed Just Before Lehman's Collapse? (http://www.zerohedge.com/contributed/2012-12-23/mystery-day-who-wrote-email-fed-just-lehmans-collapse)

[beefsteak]

Caught me. 40 lashes with a soggy cloth bookmark.....

[osoab]

Caught me. 40 lashes with a soggy cloth bookmark.....

I'll let it slide this time, just don't let it happen again. ;D


Nah, it was one of the contributor links and I wanted to see some of the comments. Since it wasn't on the main page, I figured it was needed.

[Mouse]

All regulation serves the system. It is designed to fail, on purpose, to support the ends of the controllers. Look up Dodd Frank. That is the 4 years running now solution to the problem of failing to enforce the law. More law. More regulation. More consulting fees to me to setup your crappy shitsystems to account for bullshit useless regulation. More fucking nothing. They won't enforce the law, so they make more regulations that they won't enforce. It's dog and pony time, bitchez.