Banks will clear credit swaps through a clearinghouse by year end??? It's a good thing someone knows the REAL TRUTH.

Sinclair’s Commentary

Going forward? Sure. The quadrillion plus dollars of all OTC derivatives? No way. No clearing house can value what in truth is between zero and 5%. Don't believe the spin about this entire mountain of OTC derivatives being traded on an open exchange with a clearinghouse guarantee. This is blatant nonsense.

Banks to Clear Credit Swaps Through Clearinghouse By Year End
By Shannon D. Harrington

July 31 (Bloomberg) -- Banks that handle about 90 percent of the trading in credit-default swaps told regulators today they will start processing trades through a central clearinghouse by the end of the year.

Dealers including JPMorgan Chase & Co., Deutsche Bank AG and Morgan Stanley said in a letter to Federal Reserve Bank of New York President Timothy Geithner that they will start putting U.S. credit-default swap index contracts through the clearinghouse by Dec. 31. The clearinghouse would be designed to absorb losses in the event a major market-maker failsSinclair’s Commentary

Going forward? Sure. The quadrillion plus dollars of all OTC derivatives? No way. No clearing house can value what in truth is between zero and 5%. Don't believe the spin about this entire mountain of OTC derivatives being traded on an open exchange with a clearinghouse guarantee. This is blatant nonsense.

Banks to Clear Credit Swaps Through Clearinghouse By Year End
By Shannon D. Harrington

July 31 (Bloomberg) -- Banks that handle about 90 percent of the trading in credit-default swaps told regulators today they will start processing trades through a central clearinghouse by the end of the year.

Dealers including JPMorgan Chase & Co., Deutsche Bank AG and Morgan Stanley said in a letter to Federal Reserve Bank of New York President Timothy Geithner that they will start putting U.S. credit-default swap index contracts through the clearinghouse by Dec. 31. The clearinghouse would be designed to absorb losses in the event a major market-maker fails