Soros: Ban Credit Default Swaps
OPS_admin | Jun 12, 2009 | Comments 0
Soros slams ‘instruments of destruction’
The billionaire investor tells a banking conference that credit default swaps should not be traded at all.
BEIJING (Reuters) — Credit default swaps are “instruments of destruction” that should be outlawed, billionaire investor George Soros said on Friday.
Soros said the asymmetry of risk and reward embedded in CDS exerted so much downward pressure on the bonds underlying the contracts that companies and financial institutions could be brought to their knees.
“Some derivatives ought not to be allowed to be traded at all. I have in mind credit default swaps. The more I’ve heard about them, the more I’ve realized they’re truly toxic,” he told a banking conference.
“CDS are instruments of destruction which ought to be outlawed,” Soros told a meeting of the Institute of International Finance, many of whose member banks and financial institutions are active participants in the huge CDS market.
via Ban CDS as “instruments of destruction” – Soros – Jun. 12, 2009.
Filed Under: Economy - Labor
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If we don't change our ways soon...
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