Financial Derivatives: Actions Needed to Protect the Financial System : Report to Congressional Requesters |
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Common terms and phrases
accounting rules assessments assets associated with derivatives audit committee bank derivatives dealers bank regulators Basle capital requirements capital standards CFTC corporate governance counterparties credit risk deferral hedge accounting derivative products derivatives activities derivatives contracts derivatives markets Derivatives Oversight Derivatives Require Careful derivatives transactions disclosure ensure equity examinations external auditors FASB FDICIA Federal Reserve financial institutions financial instruments financial statements financial system forward contract futures contract GAO's Survey Group of Thirty Improving Their Derivatives including derivatives interest rate risk interest rate swaps internal controls issued legal risk limits losses major OTC dealers major OTC derivatives major U.S. market participants market risk monitoring netting agreements notional/contract amounts options OTC derivatives dealers percent positive market potential proposal recommended Regulators Are Improving require banks Require Careful Management Response result risk-management systems Safety and Soundness securities firms senior management SFAS Thirty report total derivatives trading U.S. bank year-end
Popular passages
Page 172 - ... self-regulatory organizations, such as the National Association of Securities Dealers and The New York Stock Exchange, as well as federal rules relating to the extensions of credit (Regulation T).
Page 34 - Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom and the United States (ie the 'Ten' minus Belgium plus Switzerland).
Page 47 - Internal control is broadly defined as a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories: • Effectiveness and efficiency of operations. • Reliability of financial reporting. • Compliance with applicable laws and regulations.
Page 98 - LIABILITIES are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.
Page 22 - Uncertainties in Global Financial Markets Derivatives are globally used financial products that have evolved to meet the demand for cost-effective protection against risks associated with rate and price movements. Derivatives essentially unbundle and transfer those risks from entities less willing or able to manage them to those more willing or able to do so. The values of derivatives are based on, or derived from, the value of an underlying asset, reference rate, or index — called the underlying....
Page 98 - ASSETS are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
Page 30 - It consists of senior representatives of bank supervisory authorities and central banks from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Sweden, Switzerland, the United Kingdom, and the United States. It usually meets at the Bank for International Settlements in Basle, Switzerland, where its permanent Secretariat is located.
Page 3 - Options contracts grant their purchasers the right but not the obligation to buy or sell a specific amount of the underlying at a particular price within a specified period.
Page 1 - As part of an effort to better anticipate and prevent future financial crises, Congress and federal regulators have focused on the increasing use of financial products known as derivatives. Derivatives have enabled commercial corporations, governments, financial firms, and other institutions in the United States and worldwide to reduce their exposure to fluctuations in interest rates, currency exchange rates, and the prices of equities and commodities. Derivatives also have enabled users to reduce...
Page 30 - States controlled the top job at the World Bank, also known as the International Bank for Reconstruction and Development, while the managing director of the IMF was picked through consultation among European governments and central banks.