CollectionsDerivatives
IN THE NEWS

Derivatives

FEATURED ARTICLES
NEWS
August 25, 1994 | by Randolph Smith, Daily News Staff Writer
Derivatives have become a boogeyman to novice investors. With unsettling frequency, mutual-fund sponsors are shelling out millions of dollars to cover losses caused by derivatives in supposedly safe money- market and government bond funds. Derivatives have become the latest source of anxiety for savers who count on money-market and short-term bond funds for higher returns than bank deposits. But what are derivatives? They are complex securities whose returns are linked to some underlying asset, such as stocks or bonds, or an investment index.
BUSINESS
April 18, 1995 | By Andrew Cassel, INQUIRER STAFF WRITER
The power of derivatives to bite as well as boost a bank's bottom line was illustrated yesterday as PNC Bank Corp. reported sharply lower first-quarter earnings. The Pittsburgh-based bank-holding company, which operates the Philadelphia area's fourth-largest commercial bank, said net income fell about 39 percent, mainly because of measures the bank took in the derivatives market to offset the impact of higher interest rates. PNC announced in January that it had failed to anticipate the effect that rising interest rates would have, and had suffered large losses in part because of derivative contracts used to boost the yield of its $23 billion securities portfolio.
BUSINESS
January 7, 1995 | By Jeff Brown, INQUIRER STAFF WRITER
Representatives of local governments and the securities and banking industries told Congress yesterday that there is no need for new legislation on the use of derivatives, despite the $2 billion loss that pushed Orange County, Calif., into bankruptcy. Their views mirrored what federal regulators said Thursday. "The Orange County problems resulted from flawed and deliberate investing strategy used by the local investment official," Robert Seale, president of the National Association of State Treasurers, told the Senate Committee on Banking, Housing and Urban Affairs.
NEWS
May 16, 1994 | By PAUL GIBSON
Here we go again. The bear market has hardly begun and the complaints about Wall Street's outrageous behavior are flying. Dubious advice. Self dealing. Inept managers. While the daily headlines are depressingly familiar, there's a new wrinkle at work. It's the D-word. Derivatives are high finance's current fad, a new breed of exotic financial instruments that carry horrible risks for the unwary. Already many supposedly sophisticated investors bear their scars with such industrial titans as the heads of Procter & Gamble, General Electric and Dell Computer listed among the wounded.
NEWS
March 1, 1995 | By Jeff Brown, INQUIRER STAFF WRITER
The collapse of a British bank . . . at the hands of a rogue trader in Singapore . . . who lost $1 billion by borrowing money to place high-risk derivatives bets in Japan. . . . It all seems exotic and remote. But to some market watchers, the collapse of Barings PLC had an eerily familiar ring. When Orange County, Calif., fell into bankruptcy last December, it was also the result of bad bets with borrowed money, made by a trader no one was watching. And last year the brokerage firm of Kidder, Peabody & Co. was sold off by its parent company because of $100 million in losses caused by a trader who had been given free rein after a string of successes.
BUSINESS
April 17, 1994 | By Jeff Brown, INQUIRER STAFF WRITER
Swaps and strips. Caps, collars and floors. Options, futures, forwards and LEAPs. IOs and POs. And who knows what else. On Wall Street they're called derivatives, and they're the hottest thing going - a lot sexier and more exciting than a plain old stock or bond. And a lot more dangerous, too. But until recently, most people hadn't heard the term derivatives, even if they already knew something about a few of the older, less-exotic types such as options and futures - the things that got Hillary Rodham Clinton into so much controversy.
BUSINESS
January 6, 1995 | By Jeff Brown, INQUIRER STAFF WRITER
The nation's top securities and banking regulators yesterday told Congress that derivatives were not the chief culprit in Orange County's financial debacle. The regulators also told the Senate Committee on Banking, Housing and Urban Affairs that there is no immediate need for broad legislation to tame the volatile derivatives market. They testified at the committee's first hearing since it came under Republican control this week, and the event offered a capsule view of how the dominant philosophy on regulation has changed.
BUSINESS
October 15, 1997 | FROM INQUIRER WIRE SERVICES
Two Americans shared the Nobel prize for economics yesterday for helping devise a way to value derivatives, those securities linked to, or derived from, an underlying asset such as stocks or currency. Professors Robert C. Merton of Harvard University and Myron S. Scholes of Stanford University were lauded by the Royal Swedish Academy of Sciences, and will share the 7.5 million crown ($992,000) prize. Their work helped build what now is a $70 trillion global market. "In a modern market economy, it is essential that firms and households are able to select an appropriate level of risk in their transactions," the Swedish academy said.
BUSINESS
December 8, 1994 | By Jeff Brown, INQUIRER STAFF WRITER
The blown gambles that pushed Orange County, Calif., to scurry for bankruptcy protection on Tuesday are raising questions around the country about whether high-risk investing schemes will push other local governments into financial crises. By late yesterday, most regulators and other players in the securities industry still believed the Orange County debacle was an extreme case and probably not the tip of an unseen iceberg, but there were those who thought there is still much to unfold.
BUSINESS
April 8, 2007 | By Reid Kanaley, Inquirer Columnist
Derivatives - often-esoteric financial instruments invented to minimize investors' risks - are a huge and complicated business, and the tussle to own the industry's massive Chicago Board of Trade put us in search of helpful Web sites. CBOT battle. The Chicago Mercantile Exchange offered $8 billion for the Chicago Board of Trade (CBOT) in October. A subsequent unsolicited bid by Atlanta-based IntercontinentalExchange Inc., valued at $9.9 billion, is the subject of predictable criticism on the Mercantile Exchange's site: IntercontinentalExchange is an electronic futures market.
1 | 2 | 3 | 4 | 5 | Next »
ARTICLES BY DATE
ENTERTAINMENT
February 28, 2015 | By Tirdad Derakhshani, Inquirer Staff Writer
"Did I just die?" Those pretty much are the last words you want to hear from your lover. Especially if she's as lovely as Olivia Wilde. That's one of the many unintentionally funny lines in The Lazarus Effect , a creepy thriller that boasts a fine cast, including Mark Duplass, Donald Glover, Sarah Bolger, and Evan Peters, and one of the most derivative scripts this side of the Scary Movie franchise. Mildly enjoyable despite its basic mediocrity, The Lazarus Effect stars Wilde and Duplass as brilliant research scientists and lovers, named Zoe and Frank who have developed a life-giving serum that can bring the dead to life - just as the slimy fluorescent green stuff did in one of the film's chief inspirations, Re-Animator . (Actually, the couple didn't so much invent the drug as borrow it from the TV show Smallville , where the term Lazarus Serum originated.)
NEWS
October 11, 2013
ALL Ralph, no Alice. That's been the problem the past couple of decades with our "Honeymooners" economy, except that no one who wants a good job thinks it's funny. "The Honeymooners," for you kids out there, is a classic TV show whose characters formed the basis for the modern sitcom: Ralph Kramden, the husband who always had a dubious get-rich-quick scheme in the works, and Alice Kramden, the wife who always said no. In this, the show was on firm anthropological ground. Studies consistently show that women are better investors than men. They favor slow-and-steady growth, while men - entranced by the lure of speculative profits - ignore catastrophic risk.
BUSINESS
April 17, 2013 | By Robert Field, For The Inquirer
The U.S. Supreme Court hearing Monday on whether human genes can be patented cuts to the heart of law, science, and even philosophy: Should a firm have exclusive rights to use the genetic code in your cells? Patients, researchers, and the life-sciences industry all have much at stake. But beneath the dispute lies an issue that may be more important in the long run. Who should own the aggregated information that companies compile with gene patents? The issue was not raised in the hour-long hearing Monday before the court, but it's critical.
BUSINESS
December 21, 2012 | By Liam Vaughan, Gavin Finch, and Lindsay Fortado, Bloomberg News
Tom Hayes, one of two former UBS AG traders charged by U.S. prosecutors, is portrayed by American regulators as the kingpin of a three-year campaign that succeeded in manipulating global interest rates. Hayes, 33, was charged with wire fraud and price-fixing, the Department of Justice said in a criminal complaint unsealed Wednesday. The trader and Roger Darin, a former short-term interest-rates trader at UBS whose responsibilities included the firm's Libor quotes in yen, were also charged with conspiracy.
NEWS
April 9, 2012 | Wires / Bloomberg
By Eric Posner and Glen Weyl In February, Mary Schapiro, chairwoman of the Securities and Exchange Commission, said the agency is looking for ways to rein in high-frequency traders, who use computer algorithms to buy and sell derivatives at lightning speed to make instantaneous profits. High-speed trading can waste resources and disrupt markets, so the commission is right to look into it. But this is only one issue at the edge of a bigger problem requiring significant government intervention.
BUSINESS
November 18, 2011 | By Christine Harper and Michael J. Moore, Bloomberg News
  JPMorgan Chase & Co. and Goldman Sachs Group Inc., among the world's biggest traders of credit derivatives, have disclosed to shareholders that they have sold protection on more than $5 trillion of debt globally. Just don't ask them how much of that was issued by Greece, Italy, Ireland, Portugal, and Spain, sometimes known as the GIIPS, or even PIIGS. As concerns mount that those countries may not be creditworthy, investors are being kept in the dark about how much risk U.S. banks face from a default.
NEWS
November 11, 2011 | By Christopher Leonard, ASSOCIATED PRESS
NEW YORK - Defunct trading company MF Global Inc. has terminated its entire workforce of 1,066 employees, the trustee for its liquidation said Friday. James W. Giddens, the court-appointed trustee for the liquidation of MF Global, said in a statement that the company is dismissing workers in accordance with a bankruptcy court mandate. Between 150 and 200 former employees are being hired to assist with the liquidation and court proceedings. The company did not specify which employees it will rehire, presumably on a temporary basis, to help conduct the liquidation.
NEWS
October 17, 2011
Federal prosecutors have alleged that some California dispensers of medical marijuana are peddling their product to recreational users. Meanwhile, a medical-marijuana program with stricter controls is getting under way in New Jersey. Now, scientists at Temple University are exploring a less controversial option: providing at least one of the purported medical benefits of pot without the high. They are looking at the properties of a marijuana extract called cannabidiol, which has anti-inflammatory and pain-relief properties but no psychoactive effects.
NEWS
June 6, 2011 | By Andrew Maykuth, INQUIRER STAFF WRITER
Shell Oil Co. announced Monday it is developing plans to build a large Appalachian petrochemical plant to process or "crack" ethane from Marcellus Shale natural gas. The plant's location is not yet determined, but ethane is a valuable side stream of Marcellus production in southwestern Pennsylvania and West Virginia. Ethane is processed into ethylene and derivatives such as polyethylene, a raw material in plastics. Most of the material now produced in the region is shipped to Gulf Coast petrochemical plants.
NEWS
August 3, 2010
Radian Group Inc., the second-largest U.S. mortgage insurer, posted its fourth straight quarterly loss on a charge tied to derivatives. The second-quarter net loss was $475.1 million ($4.31 a share), over profit of $231.9 million ($2.82 a share) in the year-earlier period, the Philadelphia-based company said in a statement today. Excluding results from the derivatives, the loss was $1.22 a share, wider than the 78-cent loss that was the average estimate of seven analysts surveyed by Bloomberg.
1 | 2 | 3 | 4 | 5 | Next »
|
|
|
|
|