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Thu Mar 26, 2020, 03:28 PM

Exclusive: Capital One got CFTC waiver after oil price plunge increased swap exposure - sources

Source: Reuters

BUSINESS NEWS MARCH 26, 2020 / 6:08 AM / UPDATED 16 MINUTES AGO

WASHINGTON/NEW YORK (Reuters) - U.S. lender Capital One Financial Corp got a waiver from the Commodity Futures Trading Commission (CFTC) after plunging oil prices increased the bank’s derivatives exposure above a key regulatory threshold, according to two sources with knowledge of the matter.

On Friday, the CFTC said it would temporarily exempt a U.S. bank from a requirement to register as a “Major Swap Participant” even though its growing energy swaps exposure would technically require it to do so by the end of the next quarter.

The CFTC did not name the bank on Friday, but the two sources told Reuters it was Virginia-based Capital One, which is best known for its retail lending and credit card business.

The regulator and Capital One declined to comment on the identity of the bank on Wednesday. A spokesman for the CFTC said it issued the waiver to protect the bank and its energy clients from undue disruption, given the unprecedented market conditions over the past month amid the coronavirus outbreak.

Editing by Michelle Price and Sonya Hepinstall



Read more: https://www.reuters.com/article/us-health-coronavirus-capitalone-cftc-ex/exclusive-capital-one-got-cftc-waiver-after-oil-price-plunge-increased-swap-exposure-sources-idUSKBN21D1BC?il=0



-snip-

Call me a charlatan or an idiot, didn't the taxpayers go through this once before

6 replies, 1214 views

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Reply Exclusive: Capital One got CFTC waiver after oil price plunge increased swap exposure - sources (Original post)
turbinetree Mar 26 OP
alwaysinasnit Mar 26 #1
turbinetree Mar 26 #4
cstanleytech Mar 26 #2
yaesu Mar 26 #3
MoonlitKnight Mar 27 #5
turbinetree Mar 27 #6

Response to turbinetree (Original post)

Thu Mar 26, 2020, 03:32 PM

1. K&R Thanks for posting.

"Call me a charlatan or an idiot, didn't the taxpayers go through this once before."

And we will, yet again.

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Response to alwaysinasnit (Reply #1)

Thu Mar 26, 2020, 04:41 PM

4. Your welcome..................

In my twisted way of thinking it didn't work for them the first time like they wanted and got caught so they are going to do it again..................just now it will come in drips.........................

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Response to turbinetree (Original post)

Thu Mar 26, 2020, 03:43 PM

2. What is the point of having rules to prevent major problems if said rules can be waived?

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Response to turbinetree (Original post)

Thu Mar 26, 2020, 04:33 PM

3. Banks get what banks want, no questions asked. Buying politicians is a good investment. nt

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Response to turbinetree (Original post)

Fri Mar 27, 2020, 02:22 AM

5. Just the first of many to come

Lots of oil shale companies are highly leveraged with junk bonds that have derivatives.

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Response to MoonlitKnight (Reply #5)

Fri Mar 27, 2020, 09:32 AM

6. Yes, they are just ask the US Senators from the state of Oklahoma and the Harold Hamm family .....

they are always currying favors............................

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