Stress Tests or Feather Tests?

Marketplace is fantastic.  If you don’t already listen, please start.

Here is some nice commentary and analysis on the stress tests and how banks are reacting.

APM Marketplace: Stress Tests

Derivative Dangers and Frank Partnoy

This is a bit of an old reference in internet time (from > month ago), but this is a new blog, so who cares.

Below is a link to one of the better bits I’ve heard on the reality and dangers of deratives trading, how the trade was allowed to grow and thrive over the years, and how the lack of transparency leant itself to the eventual collapse.

“Frank Partnoy directs the University of San Diego’s new Center for Corporate and Securities Law.”  He’s also a former derivatives trader.

Enjoy!

Frank Partnoy on NPR’s Fresh Air