Your English writing platform
Discover LudwigSuggestions(5)
Exact(6)
The top securities regulator in Massachusetts has sued UBS on the grounds of fraud, saying that the firm misled clients when it sold them auction-rate securities and that it pushed the increasingly risky instruments on individual investors to reduce its own potential losses.
But in the wake of JPMorgan Chase's stunning trading loss, now reportedly at $3 billion and counting, committee members need to push the regulators testifying — and each other — to explain why, four years after the financial meltdown, speculative trading in these risky instruments has not been reined in.
During the 1950s, Harry Markowitz developed a technique for maximizing the expected return on a portfolio of risky instruments by combining statistics and optimization theory.
At a minimum we need to bring back the Glass-Stiegel law that separates the standard banking from the investing part of the banks, and risky instruments like credit default swaps and derivatives should not be protected by the FDIC (you taxpayers).
Risky instruments are re-appearing.
Following the pivotal role such risky instruments played in the 2008-2009 financial meltdown, the last thing U.S. taxpayers should accept is another round of trillion-dollar Wall Street betting, this time based on energy instead of housing, and likely to eventually need another huge taxpayer bailout.
Similar(54)
Difficulties in the credit markets have been concentrated in the riskiest instruments.
With little incentive to park money in bank certificates of deposit, yield-starved investors have sought out riskier instruments.
Banks argue that riskier instruments like corporate debt should be included with traditionally safe assets like government bonds.
Credit Suisse had promised to invest the chip maker's money in safe securities but instead placed the company in far riskier instruments, STMicroelectronics contended.
Hedge funds have a natural inclination to buy higher-yielding (and thus riskier) instruments and sell low-yielding assets, since this delivers a positive income or "carry".
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com