Reuters:
Clearing houses: the next casualty of the crisis?
Slowly the derivative fraud/disaster is coming to broad daylight.....
But with the financial crisis still raging and banks, hedge funds and governments alike faced with unforeseen levels of debt, regulators are now forcing this shadowy,
$600-trillion industry into the light.
The question being asked by industry insiders is whether the clearing houses, also known as central counterparties (CCPs), are any more secure.
"
What happens if they go bust? I can tell you the simple answer:
mayhem. As bad as, conceivably worse than, the failure of large and complex banks," Paul Tucker,
deputy governor of the Bank of England, said in October.