{"id":199619,"date":"2007-07-11T05:51:00","date_gmt":"2007-07-11T10:51:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/07\/11\/more-blood-in-the-hedge-fund-derivative-water\/"},"modified":"2007-07-11T05:51:00","modified_gmt":"2007-07-11T10:51:00","slug":"more-blood-in-the-hedge-fund-derivative-water","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/07\/11\/more-blood-in-the-hedge-fund-derivative-water\/","title":{"rendered":"More Blood in the Hedge Fund\/Derivative Water"},"content":{"rendered":"<p>My commentary is at the end.<\/p>\n<blockquote style=\"color: rgb(0, 0, 153);\"><p><span style=\"font-size:130%;\"><a href=\"http:\/\/www.telegraph.co.uk\/money\/main.jhtml?xml=\/money\/2007\/07\/03\/bcnitaly103.xml\"><span style=\"font-weight: bold;\">I<\/span><span style=\"font-weight: bold;\">talease blow-up stokes derivatives fears<\/span><\/a><\/span><br \/>By Ambrose Evans-Pritchard<br \/>Last Updated: 1:47am BST 05\/07\/2007<\/p>\n<p>A derivative blow-up at the Italian bank Italease has sent tremors through Milan&#8217;s banking fraternity and exposed the hidden dangers of exotic credit instruments.<\/p>\n<p>The bank has paid off 610 million euros (\u00a3419m) in recent days to counter-parties in what amounts to a massive margin call after interest rate rises in Europe caused hedging and derivative losses by clients to mushroom out of control.<\/p>\n<p>The share price has tumbled 9pc so far this week, and is down 64pc since the troubles first began to emerge in April.<\/p>\n<p>&#8220;These derivatives were very complex and suddenly turned against us,&#8221; said Pierantonio Arrighi, the bank&#8217;s spokesman.<\/p>\n<p>&#8230;<\/p><\/blockquote>\n<p>Think about that last statement.  They are saying that they <span style=\"font-weight: bold;\"><span style=\"font-variant: small-caps;\">do not understand<\/span><\/span> the instruments that that they are investing in.<\/p>\n<p>This is a freaking bank, and they <span style=\"font-weight: bold;\"><span style=\"font-variant: small-caps;\">do not understand<\/span><\/span> the instruments that that they are investing in.<\/p>\n<p>Jeebus.<\/p>\n<p>Would someone put adults in charge?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>My commentary is at the end. Italease blow-up stokes derivatives fearsBy Ambrose Evans-PritchardLast Updated: 1:47am BST 05\/07\/2007 A derivative blow-up at the Italian bank Italease has sent tremors through Milan&#8217;s banking fraternity and exposed the hidden dangers of exotic credit instruments. The bank has paid off 610 million euros (\u00a3419m) in recent days to counter-parties &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1261,973,985],"tags":[],"class_list":["post-199619","post","type-post","status-publish","format-standard","hentry","category-bubble","category-economy","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/199619"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=199619"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/199619\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=199619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=199619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=199619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}