AIG or American Insurance Group is a large insurance company that played a big role in the 2008 financial crisis in which the US government need to bail it out to survive for around $200 billion. It is through its subsidiary AIG financial products that they maintained an accumulated indirect exposures in real-estate-backed debt securities in terms of OTC credit protection on obligations with collateralized debt. Since AIG is at a credit rating of AAA, they are not actually required to post collateral at the time contracts were made. CSA and AIG agreed that it is when their credit rating will be downgraded; they will comply to post collateral then. So as September 2008 went through, they have a credit rating down by 3 levels. So since the insurance …show more content…
their series of transactions will enter in a CCP for OTC markets. There is an uncertain risk that the buyer will default on such transaction. There is also a big risk that the seller of a derivative is not selling in good faith as underlying assets came from complex structures that could clash losses against each other. For these cases, it is better to have a CCP framework in place to strengthen the gaps and circumstances that each parties can take opportunities out of technical aspects such as collaterals, rates and margins. Since CCP intends to regulate such OTC markets by giving enough criteria for trades to take place; collateral management and margining are now surfacing into the picture. These items will set boundaries and reduce counterparty risk, placing trades into an exchange, reducing margins during the process, and simplify the approach for trades. The results of regulation will further define specific rules like types of collaterals to be accepted, risk models, and certain policies on cash collateral, etc. Margins will also play part of regulating the actual initial and variation margins, which affects the movement of mark-to-markets that will improve control on sudden hike of trades at once. So now overall, CCP can help manage and control counterparty risks, prevent derivatives especially OTCs to have over or under collateralization and with a sense of marginal controls to prevent suspicious and abusive transactions to take place on security markets that are not so much regulated by
Out of more jobs can accelerate the next decade, there be a budget deficit. AIG got
The Private Equity Partnerships (PEPs) agreement contains mechanisms to align the interest of general partners (GPs) with those of the limited partners (LPs): performance incentives and direct means of control. In the case of Accel VII, we are interested in how the performance incentives align both the interest of the general and limited partners. They include the terms of the general partners’ compensation structure and calculations of management fees and carried interest. These details can significantly affect the general partners’ incentive to engage in behavior that does not maximize value for investors.
The world’s financial system was almost brought down in 2008 by the collapse of Lehman Brothers that was a major international investment bank at that time. The government sponsored these banks’ bailouts that were funded by tax money in order to restore the industry. Before the crisis, banks were lending irresponsible mortgages to subprime borrowers who had poor credit histories. These mortgages were purchased by banks and packaged into low-risk securities known as collateralized debt obligations (CDOs). CDOs were divided into tranches by its default risk. The ratings of those risks were determined by rating agencies such as Moody’s and Standard & Poor’s. However, those agencies were paid by banks and created an environment in which agencies were being generous to ratings since banks were their major clients.
1.) Describe the method or methods you would use to determine priorities for both existing and potential services that the Lakeview Medical Center might offer.
Task 4: Explain when and why the inquiries and serious case review processes are required, issues of how to share findings and implications for the worker's practice.
We've had some major news stories about MA Plans overcharging lately. What exactly are they about?
On September 3, 2013, the Department of Human Services, Office of Program Review, Monitoring and Investigation (OPRMI), Fraud Investigations Division received a hotline compliant alleging that District of Columbia (DC) benefit recipient, Shaniqua Williams (Ms.Williams) was employed by Hoffman Theatre in Alexandria, VA on Eisenhower, and has not reported her income while receiving benefits.
The specific issues to consider would be how CES broke its ruling by not offering a hearing as it previewed for the school officials to notify the parent before an automatic suspension. The board of CES was supposed to hold a full hearing for the third offense to find out if the student is guilty before expulsion, arrest, incarceration for 30 days or confiscating the student's phone permanently. Congress may transfer the authority to create substantive rules that are compatible and in the scope of its statute. CES had a secluded requirement in the statute that allowed their officials to target principally female students because allegedly females talk on the phones than males. CES did not obtain Congressional delegation to target mostly female
CCIB received a SOC 341 via email stating that facility staff reported to RP, patient Effie had no injury as of 0400 hours (4 AM). RP reported Effie was found after fall with urine soaked clothes and large bruising. In addition, the report states that Effie also had dried blood/scars in the head and a large bruise on left elbow all which were not from 10 min prior. RP reported that staff from the home stated that Effie fell on 5/2/2017 and that they called the paramedics (no detail). RP reported that Effie disclosed to RP in private that she fell the day before (5/1/2017). RP reported that Effie was taken to Kiser in Santa Rosa to receive medical attention on 5/2/2017.
To begin, Adnan had a terrible lawyer. One year after Adnan’s trial, his attorney Cristina Gutierrez was disbarred, and $282,000 dollars were awarded to past clients she’d wronged with her shoddy legal skills. Not only did Gutierrez never challenge the state’s sketchy phone records, she never even contacted Asia McClain, a potential alibi witness for Adnan. Later, Gutierrez’s associate William Kanwisher signed an affidavit stating that she didn’t necessarily make a “strategic decision not to interview and/or call as a witness Asia McClain”. In other words, someone who knew Gutierrez extremely well at the time is admitting that she didn’t have a master plan formulated, she simply forgot about a potentially essential part of her client’s defense.
This report reflects that Sam E. Antar, former Chief Financial Officer furnished this office with a signed statement on 8 March, 1989, indicating he had assisted Eddie Antar and the Antar family in alleged stock fraud of inflating of earnings along with other conspiracies mentioned herein.
Notes: Mr. Howard came into PATH requesting assistance for the PATH/OUTREACH-SOAR SSI program Mr. Howard is a Non Path Client 51-year-old African America male. He appears to be unstable and having depressive thought he has his chronic health condition. He wears a deciliter life vest. Mr. Howard initials appointment he brought in all the needed documents for assistance. Case management assistant client with Team Mental appointment Mr. Howard case is ongoing with PATH case management for his SOAR SSI case.
Derivative contracts were either negotiated with specific counterparties (over-the-counter) or were standardized contracts executed and traded on an exchange. Negotiated over-the-counter derivatives were comprised of forwards, swaps, and specialized options contracts. Over the counter derivatives can be tailored to meet the customers’ needs with respect to time and quantity and they are not traded in an organized exchange. On the other hand, standardized exchange-traded derivatives consisted of futures and options contracts. Even though over-the-counter derivatives were usually not traded like securities in an exchange, they might be terminated or assigned to an alternative counterparty. Standardized derivatives trade on an exchange and have time and quantity that are fixed.
The Treasury Department purchased $40 billion in AIG preferred shares from its Capital Repurchase Plan. The Fed will purchase $52.5 billion in mortgage-backed securities. The funds are allowing AIG to retire its credit default swaps.” The case of AIG demonstrates a specific illustration of the “too big to fail” problem.
With MiFID emphasizing on best execution of trades across trading venues and the emergence of Multilateral Trading Facilities, (MTFs), competition between trading venues increased. As a natural progression of this, competition emerged in the post trading area amongst CCPs and CSDs to provide clearing and settlement services to trades executed on the new trading platforms. EMIR provided a further impetus to this by setting out common rules for CCPs, enabling recognized CCPs to offer their services across the