tag:blogger.com,1999:blog-8387134575347301650.post935574895415265526..comments2014-08-18T16:44:40.040+01:00Comments on An Occasional Letter From The Collection Agency: Pre-emptive warning of a major banking crisisThe Collection Agencyhttp://www.blogger.com/profile/09889696891409987315noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8387134575347301650.post-33732616748633004722008-03-14T14:32:00.000+00:002008-03-14T14:32:00.000+00:00Margin call on a SpreadBet company:This is officia...Margin call on a SpreadBet company:<BR/><BR/>This is official notification that all clients of FuturesBetting.com must close out their spread bet positions with FuturesBetting.com by 15.30hrs GMT today, Friday 14th March, 2008.<BR/><BR/> <BR/><BR/>Any position that is not closed out by clients by the time stipulated above, will be closed out by FuturesBetting.com between 15.30hrs and 16.00hrs GMT today, Friday 14th March, 2008.<BR/><BR/> <BR/><BR/>All funds on deposit with FuturesBetting.com will be returned to the bank account held on record for each client; process commencing Friday 14th, 2008. The funds returned will reflect the full value of each account as at 16.00hrs GMT on Friday 14th March, 2008 and will reflect any profit or loss associated with the closing of all positions.<BR/><BR/> <BR/><BR/>----------------------------------------------------------------------------------------------------------------------------------------------------------------------<BR/><BR/>It is with regret that FuturesBetting.com has had to take this action; however it is the priority and responsibility of the firm, as a regulated entity, to protect client funds.<BR/><BR/>The reason for the decision to require all clients to close their positions is because the Company can no longer meet its capital adequacy requirements. Unfortunately FuturesBetting.com has been caught up in the financial crisis of Global Trader Europe and a significant proportion of the company’s resources have been ‘frozen’ along with that of all of Global Trader Europe’s other clients.The Collection Agencyhttps://www.blogger.com/profile/09889696891409987315noreply@blogger.comtag:blogger.com,1999:blog-8387134575347301650.post-73136884044597953512008-03-14T13:38:00.000+00:002008-03-14T13:38:00.000+00:00NEW YORK (Thomson Financial) - JPMorgan Chase & Co...NEW YORK (Thomson Financial) - JPMorgan Chase & Co. said Friday it's agreed to provide secured funding for Bear Stearns. The funding is to be provided in conjunction with the Federal Reserve Bank of New York. The initial period will be up to 28 days.<BR/><BR/>JPMorgan said the Fed will provide "non-recourse, back-to-back financing" for the deal so it doesn't believe the transaction represents any material risk for its shareholders.<BR/><BR/>In addition, JPMorgan said it's "working closely" with Bear Stearns on securing "permanent financing or other alternatives" for the company.<BR/><BR/>Shares of Bear Stearns jumped more than 9% to $62.28 in premarket action following the news.<BR/><BR/>US TSYS/FED: Regarding JPM, BSC news on discount window borrowing,<BR/>Tony Crescenzi of Miller Tabak offers this excerpt from page 366 of his book, Stigum's Money Market: Reserve banks are authorized, "in unusual and exigent circumstances" and after consultations with the Board of Governors, to extend credit to an individual, partnership, or corporation that is not a depository institution if, in the judgment of the Federal Reserve Bank, credit is not available from other sources and failure to obtain such credit would adversely affect the economy. The interest rate charged on such credit would be above the highest rate in<BR/>effect for advances to depository institutions. Such loans were used in the 1930s to grant about 125 loans totaling a mere $1 million but it has not been used since. Other sorts of federal subsidies or assistance, the Fed believes, should be granted only by decisions of Congress and the administration, not by an independent central bank.The Collection Agencyhttps://www.blogger.com/profile/09889696891409987315noreply@blogger.comtag:blogger.com,1999:blog-8387134575347301650.post-34857653674385914202008-03-13T19:06:00.000+00:002008-03-13T19:06:00.000+00:00You would think that Anom is right, that the Fed w...You would think that Anom is right, that the Fed wouldn't launch a new rescue without doing the groundwork first.<BR/><BR/>Not according to this, published on the 13th<BR/><BR/>http://www.newyorkfed.org/markets/operating_policy_031308b.htmlThe Collection Agencyhttps://www.blogger.com/profile/09889696891409987315noreply@blogger.comtag:blogger.com,1999:blog-8387134575347301650.post-61629673434000052372008-03-13T18:14:00.000+00:002008-03-13T18:14:00.000+00:00It's hard to imagine these Fed efforts have been i...It's hard to imagine these Fed efforts have been initiated without establishing a legal framework with a specific answer to the question you pose at the end of your article. If not, the Fed could become involved in a lot of large lawsuits, which would generate massive uncertainty in the entire financial system. Hard to imagine.Anonymousnoreply@blogger.com