I think that derivative products… the CDS on sovereign debt have to be at least very, very regulated, rigorously regulated, limited or banned, this is a personal position on financial instruments
– Christine Lagarde, Europe 1 radio, February 28 2010
The French arm of LCH.Clearnet, Europe’s largest independent clearing house, will on Monday launch clearing of credit default swaps – a victory for French efforts to ensure the processing of such off-exchange derivatives instruments is done in Paris.
– Jeremy Grant, The Financial Times, March 29 2010
It’s just rather odd to create clearing houses for something you’ve claimed you want to ban. To quote the master:
Ceux de qui la conduite offre le plus à rire
Sont toujours sur autrui les premiers à médire.
Those whose conduct gives room for talk
Are always the first to attack their neighbors.
– Molière, Tartuffe, Act I, sc. i (1664)
(And a tip of the hat to Sam Jones for Mme. Lagarde’s bons mots).
“Nada de lo que está ocurriendo en el mundo, incluidos los editoriales de periódicos extranjeros, es casual o inocente” – FT Alphaville
What is it with politicians and CDS? – FT Alphaville
The not entirely unexpected Germano-Greek inquisition – FT Alphaville
Is there an alternative to exchange-traded CDS? – Felix Salmon