A list of puns related to "Offshore bank"
Prof. Greenberger describes in his 2018 paper how Dodd Frank regulations were put in place to protect the global economy from dangerous Swaps trading after 2008 but these rules were sidestepped by U.S banks using an offshore loophole.
The full article can be downloaded for free here: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3228783
In this post I will expand on some of the ideas in my post from yesterday and highlight some of the key facts about Swaps regulation avoidance as described in Prof. Greenberger's paper.
https://preview.redd.it/pedg1ttinpj71.png?width=1068&format=png&auto=webp&s=6c87eca431c3bdc53b6a5f04c31d18521d88bc03
This is an overview of the key ideas of the paper.
https://preview.redd.it/jd2iv8fonpj71.png?width=1690&format=png&auto=webp&s=5068f1ca20f75b6fdf8ed8ab50256140d9933d98
Regulatory guidance was put in place in 2013 by the Commodity Futures Trading Commission (CFTC) to clarify that all Swaps transactions by foreign subsidiaries should fall under the regulatory framework set out by Dodd-Frank. This includes increased transparency, as well as clearly defined capital and collateral requirements.
In a key part of the guidance, under a buried 563rd footnote, it was stated that "guaranteed" foreign subsidiaries should fall under the Dodd-Frank regulations. The term "guaranteed" foreign subsidiaries was not considered problematic in any way as all U.S. swaps dealers' foreign subsidiaries had been guaranteed by their corporate parents since 1992. This piece of wording was all that was required to create a monumental loophole.
In complete surprise to the CFTC the swaps dealer trade association privately circulated the suggestion that if it's members "deguaranteed" their foreign subsidiaries then these foreign subsidiaries would be exempt from Dodd-Frank regulation. Loophole established.
In the coming months and years there was a substantial shift in the U.S. swaps trading from large U.S. bank holding companies swaps dealers to newly deguaranteed "foreign" subsidiaries. And with that, regulations were out the window and the pre-2008 swaps game was back on at the casino.
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... keep reading on reddit โกDuring my rewatches, every time I get to the episode where Gaby is upset at Carlos for having embezzled money from Tanaka ($10M in an offshore bank account)...I'm confused. She acts like she didn't know he embezzled that $10M, but didn't she learn about it in S1? She found the papers with his passport (after Carlos instructed her to burn the papers - which she apparently never did). She used this as leverage to not sign the post-nup he was forcing her to sign. He then moved the money so she couldn't dangle that above his head anymore.
Has this been explored before? Or is this just another oversight/continuity on the writers' part?
https://www.federalreserve.gov/releases/h8/current/default.htm
Banks need money to work. An asset means +money, a liability means -money. Assets minus liabilities gets you net money. So if I have $5, I have $5 in assets. If I owe you $3, I have $3 in liabilities. $5 -$3 means I have a net of $2. Why this matters is if that net (row 41, labeled here as "Residual (Assets LESS Liabilities) ") is too low, the banks can be unstable. In the event of a market crash, if they hold a lot of their assets in stocks, they can go net negative and the bank has to close. If a bank has to close, that can trigger other banks to close and everything goes to shit real fast.
This is liabilities vs time, the bigger the slope upwards, the worse it is.
https://preview.redd.it/wm1jddw17fe71.png?width=592&format=png&auto=webp&s=ec227f7abf4b68d91f4db710cf0182ae81676bad
This is liabilities/assets, if it is going up, this means the bank is doing bad, not making as much money. For the back half of July, it only went slightly upward, a steep curve in this would have put fear in the markets.
https://preview.redd.it/fxnq2zh67fe71.png?width=587&format=png&auto=webp&s=6a5691210afa71babb25d686a9d6dc55b187dd6c
Assets and Liabilities of Commercial Banks in the United States - H.8 due today at 4:15 PM. Earlier this week we discovered puts that mysteriously showed up in a Bloomberg Terminal screenshot, then disappeared the next day.
Had these losses been kept in a secured financial institution within the United States, they would have needed to be declared in the report. This would have shown a massive loss for whatever institution was holding and would have been seen as a major liability for possibly multiple banks loaning out the credit to HF's.
CONSTANCIA INVESTMENT #1 HOLDER ON SCREENSHOT
https://constanciainvest.com.br/en/
A BANK NOT CONNECTED TO ANY U.S. FINANCIAL HOLDINGS.
KAPITALO INVESTMENT #2 HOLDER ON SCREENSHOT
A BANK NOT CONNECTED TO ANY U.S. FINANCIAL HOLDINGS.
https://preview.redd.it/odytpb1i3fe71.png?width=2880&format=png&auto=webp&s=6952efd97b25414f6dac0e415706b987e550b99b
These losses were moved to a bank in Brazil to not be exposed for the general public to see. They can then keep the losses in the bank in Brazil
... keep reading on reddit โกHey good people, I usually get my USD earnings via a wire transfer to my PFC account. Unfortunately I am now forced to convert these at really bad exchange rates.
Are you aware of any offshore banking options (with remote account openings) or digital wallets/neo banking that I could store my earnings in. Ideally one that gives out a VISA or Mastercard debit card to Sri Lanka. I have tried Wise and they do not even let you open a USD account anymore
https://www.federalreserve.gov/releases/h8/current/default.htm
Banks need money to work. An asset means +money, a liability means -money. Assets minus liabilities gets you net money. So if I have $5, I have $5 in assets. If I owe you $3, I have $3 in liabilities. $5 -$3 means I have a net of $2. Why this matters is if that net (row 41, labeled here as "Residual (Assets LESS Liabilities) ") is too low, the banks can be unstable. In the event of a market crash, if they hold a lot of their assets in stocks, they can go net negative and the bank has to close. If a bank has to close, that can trigger other banks to close and everything goes to shit real fast.
This is liabilities vs time, the bigger the slope upwards, the worse it is.
https://preview.redd.it/eih68kuqage71.png?width=592&format=png&auto=webp&s=d1c57a3d267303a6440e8a388a5818400b987017
This is liabilities/assets, if it is going up, this means the bank is doing bad, not making as much money. For the back half of July, it only went slightly upward, a steep curve in this would have put fear in the markets.
https://preview.redd.it/mls0ftptage71.png?width=587&format=png&auto=webp&s=2963a3fc29ceaf8e0c5df6c18714aee7205897c8
Assets and Liabilities of Commercial Banks in the United States - H.8 due today at 4:15 PM. Earlier this week we discovered puts that mysteriously showed up in a Bloomberg Terminal screenshot, then disappeared the next day.
Had these losses been kept in a secured financial institution within the United States, they would have needed to be declared in the report. This would have shown a massive loss for whatever institution was holding and would have been seen as a major liability for possibly multiple banks loaning out the credit to HF's.
CONSTANCIA INVESTMENT #1 HOLDER ON SCREENSHOT
https://constanciainvest.com.br/en/
A BANK NOT CONNECTED TO ANY U.S. FINANCIAL HOLDINGS.
KAPITALO INVESTMENT #2 HOLDER ON SCREENSHOT
A BANK NOT CONNECTED TO ANY U.S. FINANCIAL HOLDINGS.
https://preview.redd.it/d06nnsuuage71.png?width=2880&format=png&auto=webp&s=d092adbff1d3d7f2adb8d32ee4def1faa838451c
These losses were moved to a bank in Brazil to not be exposed for the general public to see. They can then keep the losses in the bank in Brazil
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