US Banks may Lose Sovereign Clients Over Margin Rules
By Ducan Wood and Matt Cameron
Published May 27 2011 Risk Magazine
Non-US sovereigns say they could stop executing over-the-counter derivatives with US banks if their counterparties are obliged to collect collateral from them-as envisaged in proposals from US prudential regulators published at the state of April. Sovereigns typically don’t post collateral, and most say they are unwilling to change – whether their counterparties are required to collect it or not.
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