The Great Taking Report is an in-depth legal and economic analysis of the financial service industry’s use of their client’s securities as collateral, the cooresponding bubble in derivatives this produced and the unrecognized global systemic risks this inherantly caused. The report documents a multi-decade lobbying effort by the financial services industry to make important changes to securities and bankruptcy law which has granted GSIB “to big to fail’ banks super priority to take client securities in the next financial crisis. This diminution of the property rights of individual and institutional investors alike needs broader recognition and to be reformed.
The widespread unfettered use of client securities has produced an alarming bubble in the derivatives market, that combined with the centralized clearing of derivatives through Central Clearing Counterparties (CCPs) exacerbates the likelihood of a financial crisis. The rise of the repo market as the primary money market between banks has a historical parallel to the margin loans that led to the 1929 crash.
The first 5 reports documents these issues in detail, referencing primary source documents and the remaining 5 reports analyses the level of collateral integration by jurisdiction globally (North & South America, Europe, CIS countries and Asia). Chapters 1 – 5 are available individually and the full report includes the jurisdictional overview.
Chapter 3: Central Clearing Counterparties
Not currently available
Chapter 4: Rise of the Repo Market & Parallels to the 1929 Market Collapse
Not currently available
Chapter 5: Super Priority of GSIB Banks Ahead of All Secured Creditors in the Next Crash
Not currently available
Chapter 6: Market Overview – Europe
*Available upon purchase of the first five chapters
Chapter 7: Market Overview – North America
*Available upon purchase of the first five chapters
Chapter 8: Market Overview – South America
*Available upon purchase of the first five chapters
Chapter 9: Market Overview – CIS Countries
*Available upon purchase of the first five chapters
Chapter 10: Market Overview – Asia
*Available upon purchase of the first five chapters
The Great Taking Report is an in-depth analysis of the industry use of client securities as collateral for their own gain. How the practice became a ubiquitous feature of the global financial system, the impact this has had on the derivatives market and the ever present and unrecognized risks this poses to all investors, big and small. The report documents the risks using primary sources and provides a global jurisdictional analysis of collateral integration.