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The Shadowy Side of Derivatives Trading

Posted on Dec 12, 2010
New York Times

Even after the economic crash and subsequent scrutiny of Wall Street, a circle of big banks has managed to maintain a monopoly on derivatives trading and keep a cloak of secrecy over its process. —JCL

The New York Times:

On the third Wednesday of every month, the nine members of an elite Wall Street society gather in Midtown Manhattan.

The men share a common goal: to protect the interests of big banks in the vast market for derivatives, one of the most profitable — and controversial — fields in finance. They also share a common secret: The details of their meetings, even their identities, have been strictly confidential.

Drawn from giants like JPMorgan Chase, Goldman Sachs and Morgan Stanley, the bankers form a powerful committee that helps oversee trading in derivatives, instruments which, like insurance, are used to hedge risk.

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By reynolds, December 13, 2010 at 9:54 pm Link to this comment

omop; to deflect uncle rico, try this:
“you’re making an awful lot of unfounded and unfair
assumptions about me and I wish you’d cut it out.”
yes, it sounds very much like whining, but he’ll

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rico, suave's avatar

By rico, suave, December 13, 2010 at 9:47 pm Link to this comment


Do you not know that Lehman Brothers ceased to exist two years ago?

You throw these Tourettes Sydrome outbursts around indiscriminately and expect to be taken seriously?

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By omop, December 13, 2010 at 7:27 pm Link to this comment

rico, suave

  Since I do not know you and am certain you do not know me I would hazard a
guess you must opine about others in the only imbecilic way you are capable of.

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By rico, suave, December 13, 2010 at 7:02 pm Link to this comment


“Lehman Brothers of New York” (!!!!)
You sir are an idiot.

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By omop, December 13, 2010 at 1:44 pm Link to this comment

So whose gonna tell them guys to behave?

The Federal Reserve or those who own the 12 Central banks and include:-

  Rothschild Bank of London Warburg Bank of Hamburg Rothschild Bank of Berlin
Lehman Brothers of New York Lazard Brothers of Paris Kuhn Loeb Bank of New
York Israel Moses Seif Banks of Italy Goldman, Sachs of New York Warburg Bank
of Amsterdam Chase Manhattan Bank of New York

These bankers are connected to London Banking Houses which ultimately control
the what bankers do in America.

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By bogi666, December 13, 2010 at 12:41 pm Link to this comment
(Unregistered commenter)

Derivative trading provides a great vehicle for money laundering. The banksters collect a fee for laundering money and they make $billions this way. It’s not going away and money laundering is enabled by governments around the world who also use taxpayer monies to keep the money laundering banksters afloat. The One World System, the Beast of revelation,  globalized PREDATORY CAPITALISM FOR THE WEALTHY WELFARE KINGS will collapse but without revolution it will emerge again, for a short time, and the end will be ugly.

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By truedigger3, December 13, 2010 at 8:53 am Link to this comment

Something is muddied in this article, probably deliberately, and that is derivative is not always a protection, but in its essence is a speculative financial transaction that could go wrong for one of the parties, as happened many times before, with dire consequences, like the current economic debacle.
This dereivative business is very harmful to the economy and the tax payers in two ways:

1) The fees for these derivatives are indirect tax on the economy and the average people, that cause rising of the prices and diminish the competitiveness of the US goods and services.
2) When the losses in these derivatives are massive both in magnitude and spread, then the tax payers are forced to intervene and bail-out the “too big to fail” banks.
That derivatives business is bad news for everyone and should be banned. Derivatives hurt everyone except the “too big to fail”  banks.

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RayLan's avatar

By RayLan, December 13, 2010 at 5:46 am Link to this comment

The so-called Wall Street reform much like the Health Care bill leaves the corporate moguls untouched -cause spineless Obama is their bitch.

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By MarthaA, December 13, 2010 at 1:40 am Link to this comment

In the United States there is democracy for the upper 30% of the population and no democracy for the rest.  The lower 70% MAJORITY of the population aren’t represented in the making and enforcing of laws.

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By eir, December 12, 2010 at 10:06 pm Link to this comment

While 44 million Americans are un-employed because Wall Street has been cannibalizing the real economy for years, it’s Record Breaking Holiday Bonus Time on Wall Street (The Casino) / Who said these people had no sense of the sacred?

Below, at the is the story of the red hot disco inferno where those bonus dollars will be spent on among other luxuries, $175 burgers made with 10 oz kobi beef, truffles, and gold leaf flakes that actually add no flavor but “makes it pretty” and I suppose gives one the satisfaction of knowing that when Wall Street takes a massive dump on us, why, at least it’s gold plated shit.

We Give Them Our Blood Money So They Can Literally Shit Gold

Meanwhile, in Ireland (and of course, other countries), children are the victims of “austerity measures” needed to keep the dico inferno party going.

Bankers Celebrate as Irish Children Starve

If you can’t prop up these “bankers” to be fleeced, then you really ought to do the decent thing and just die, unless you’re like Brian and Ilsa who want to live and as blogger, Gonsalvo Lira said, told tax payer funded bailout recipient, Wells Fargo

“Show Me The Note, Motherfucker!”

Strangely enough, this cryptic message from Brian and Ilsa instigated an immediate solicitous response from an executive from the inferno.

We have the power.  But, we have to understand that we have the power to crush these MoFos before they can eliminate many of us, and they will if we let them.  World War is their usual solution to too many pesky, restless slaves.

They Kill.

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By glider, December 12, 2010 at 8:55 pm Link to this comment

Like I said a couple years ago.  They are not shutting this manipulation down.  All you need to do to verify that is look at the volume of derivatives trading.  You will like see it rise not fall from its 600 trillion dollar nominal value.  All the talk will be smoke and mirrors.

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By berniem, December 12, 2010 at 8:19 pm Link to this comment

This justice dept. will do nothing! While always “looking forward’ not back” it occassionaly stops to take a breather to trounce some washed-up jock for ‘roids or trying to figure out ways of shutting up Assange before he exposes more crimes. The nonesense which is the Dodd/Frank scam is just a bamboozle for not re-instituting Glass/Steagle or breaking up the fraudulent giants that caused and continue to perpetuate the financial meltdown for all but those vested in the greed cartel. It’s comforting to know that minority AGs can be just as corrupt as any ol’ middle aged white guys.

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