Do you think they might have an incentive to say that the most profitable swaps simply aren't clearable?
As to why Hollinger would swap profitable papers for less profitable papers, the company argued it would have room to improve the performance of the less profitable papers.
In another deal struck in 2000 with little board oversight, the suit says, Hollinger agreed to swap profitable newspapers that it owned for less profitable papers that belonged to a company owned by Lord Black.
For some workers, depending on their tax bracket and insurance costs, the new tax credits would exceed the value of the tax exclusion, making the swap profitable.
In particular, the most complicated, one-of-a-kind — and most profitable — credit-default swaps will most likely stay in the shadows, which is exactly where the big banks want them to be.
In Nigeria, Kunle Afolayan's Phone Swap created profitable comedy from the premise of a mobile phone mix-up.
This was hugely profitable until AIG's swaps, many of which were written against mortgage-backed securities, turned into colossal losing bets amid the collapse of the mortgage market, and regulators had to pull it onto the federal balance sheet to save it from collapse.
But competition was making those swap deals less profitable.
Pointing to a study by the Federal Reserve Bank of New York, he said: "In the presence of moral hazard the likelihood that sloughing the bad loans into a swap will be profitable the growth of a market for default risks could lead to bank insolvencies".
A large desk now would include about 15 traders and bankers, some to buy and sell bonds and others to structure more profitable derivatives, like interest rate swaps.
But keeping costs in check during the holiday shopping season will pose a challenge for the company, which said Tuesday it hopes to stay profitable as the music industry swaps record albums for digital downloads and the economy continues to slow.
