Wall Street Embraces a Rule It Hates


By Peter Eavis – Banks can make more money from derivatives trading by doing it in their insured subsidiaries. These subsidiaries usually have higher credit ratings than other parts of the bank, in part because of their implied government support.

And the higher ratings enable the banks to get better terms in the derivatives bets they make with their trading partners, bolstering the banks’ profits. more> http://tinyurl.com/n8osn6z

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