Derivatives Regulation Case Study: Regulatory Compliance Assessment Our Client: A Fortune 100 technology company with international operations and multiple hedging programs involving exchange-traded and over-the-counter (OTC) derivatives across different asset classes, including foreign exchange, interest rates, and credit. Situation: The company was concerned about the impact of new derivatives regulations on its hedging programs, including how the parent company and numerous subsidiaries might be classified under Title VII, what new regulatory requirements might apply, and the extent to which hedging costs may increase due to new regulatory requirements. The client’s hedging programs spanned multiple global regulatory jurisdictions and included several different entities including both financial and nonfinancial entities. Summary: Chatham conducted an in-depth review of the hedging programs, spending two days onsite at the client’s premises to interview stakeholders within the company, including representatives from treasury, risk, operations, legal, and…

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Oscar Wilde would have loved the Twitter genre; he was a veritable epigram machine. Even though everything he wrote is now at least a century old, it hasn’t lost relevance or zing. Think of how pertinent Wilde’s statements still are on topics as diverse as Narcissism: “To love oneself is the beginning of a lifelong romance.” Celebrity: “There is only one thing in the world worse than being talked about, and that is not   being talked about.” Identity: “Be yourself; everyone else is already taken.” Transcendence: “We are all in the gutter, but some of us are looking at the stars.” Modern conveniences: “We live in an age when unnecessary things are our only necessities.” For us, though, the best Oscar Wilde quote is from The Picture of Dorian Gray: “Nowadays people know the price of everything and the…

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First, there’s shock. Then, there’s sadness. Once the city with the highest per capita income in the U.S., Detroit’s slow tumble and decay over the past 50 years has left local government owning and managing too much city space and collecting too little in taxes to keep it running, given so many outstanding obligations. Promises to its public sector unions, pensioners, and bondholders could amount to as much as $20 billion, with no realistic ability to meet those claims as currently organized. Thus, a heavy hearted Detroit filed for Chapter 9 bankruptcy on July 18th, the largest municipal filing in U.S. history. You don’t have to live near or work in this city to be affected by Detroit’s finances. Already, other cities intending to issue new general obligation bonds expect their rates to rise. Philadelphia, for example, has suggested Detroit’s…

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