from Greenberg Center for Geoeconomic Studies

Prime Brokers and Derivatives Dealers

April 7, 2010

Download PDF
Report

More on:

Economic Crises

Inequality

United States

Overview

Runs by prime-brokerage clients and derivatives counterparties were a central cause of the global financial crisis. These runs precipitated the failures of Bear Stearns and Lehman Brothers by substantially reducing the broker’s liquidity. This Working Paper, the ninth in the Squam Lake series distributed by the Greenberg Center for Geoeconomic Studies, argues for higher regulatory liquidity requirements for dealer banks that use assets of clients and counterparties as a source of liquidity.

More on:

Economic Crises

Inequality

United States

Explore More on Economic Crises

Monetary Policy

What Is the U.S. Federal Reserve?
Over the past decade, the Fed kept interest rates low while it deployed trillions of dollars in stimulus and expanded its regulatory oversight. Now, the central bank is back in the spotlight for its battle against inflation.

Backgrounder by James McBride, Anshu Siripurapu and Noah Berman October 20, 2023 Renewing America

Puerto Rico

Puerto Rico: A U.S. Territory in Crisis
The Caribbean island, which shares a close yet fraught relationship with the rest of the United States, faces a multilayered economic and social crisis rooted in long-standing policy and compounded by natural disasters, the COVID-19 pandemic, migration, and government mismanagement.

Backgrounder by Amelia Cheatham and Diana Roy September 29, 2022

Economics

Revisiting the Ides of March, Part III: Scary Stories to Tell in the Dark
This is a guest blog by Josh Younger, an interest rate strategist at J.P. Morgan. Joshua Younger is employed by the Research Department of J.P. Morgan Chase & Co. All views expressed in this forum ar…

Blog Post by Guest Blogger for Brad Setser July 23, 2020 Follow the Money

Top Stories on CFR

Taiwan

Taiwan’s Democracy Is Thriving in China’s Shadow
Despite China’s growing pressure, Taiwan has developed one of the world’s strongest democracies—one that will be increasingly tested in the coming years. 

Blog Post by David Sacks May 13, 2024 Asia Unbound

Artificial Intelligence (AI)

Beyond Watermarks: Content Integrity Through Tiered Defense

Watermarking is often discussed as a solution to the problems posed by AI-generated content. However, watermarking is inadequate without other methods of detecting and sorting out AI-generated content.

Blog Post by Kevin Klyman and Renée DiResta May 8, 2024 Net Politics

RealEcon

In Economic Security, Trade-Offs Abound
Policymakers face complex cost-benefit considerations when intervening in the market to mitigate perceived risks, from climate change to competition with China.

Article by Thomas J. Bollyky, Chloe Searchinger, Alice C. Hill, Zongyuan Zoe Liu and Benn Steil May 8, 2024