2024-01-23
When is an owner not an owner?
It's a relevant question in these fraught financial times.
If the banking system goes belly up (and who would bet against it?) what do we get left with?
Do we own the stocks and bonds in our pension schemes?
Do our pension funds own the stocks and bonds held within their schemes?
The world runs on faith in our financial systems, but are these systems worthy of our trust?
" ... the customers assets are taken without the knowledge of the customers, transported ... free of payment ... used by somebody else and put at risk ... "
" ... a derivative is a financial contract written about the behaviour of something else ... "
" ... you are 'not exposed' to the failure of a counterparty because the central clearing counterparty is always the counterparty ... "
" ... the central clearing counterparty has essentially no capitalisation ... "
" ... the derivatives complex would be ... about 20 times the size of the global economy ... "
What could possibly go wrong?
(70 minutes)
