12.7. Notes
[] Robert C. Merton and Zvi Bodie, "The Design of Financial Systems: Toward a Synthesis of Function and Structure," Journal of Investment Management 3, no. 1 (First Quarter 2005): http://www.people.hbs.edu/rmerton/Designpaperfinal.pdf
[] "Financial Crisis for Beginners," Baseline Scenario, http://baselinescenario.com/financial-crisis-for-beginners/.
[] OTC markets are not inherently a bad idea; they work for corporate debt and other securities. A lack of reporting for these toxic derivative securities created a dark market on an unprecedented scale.
[] Carol Loomis, "Robert Rubin on the Job He Never Wanted," Fortune, November 28, 2007, http://money.cnn.com/2007/11/09/news/newsmakers/merrill_rubin.fortune/index.htm.
[] Marking to market is the process of evaluating a security to reflect its current market value instead of its purchase price or book value. Marking to market is generally a good idea, but there are circumstances when it can serve to amplify the effect of what might otherwise be a short-lived mini-panic. A discussion is beyond the scope of this chapter.
[] Ben Bernanke, "Reducing Systemic Risk," Jackson Hole, Wyoming, August 22, 2008, http://federalreserve.gov/newsevents/speech/bernanke20080822a.htm.
[] "PWG Announces Initiatives to Strengthen OTC Derivatives Oversight and Infrastructure," November 14, 2008, www.ustreas.gov/press/releases/hp1272.htm.
[] Rosenblatt Securities, "Trading Talk," October 17, ...
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