Big Bets Gone Bad: Derivatives and Bankruptcy in Orange County. The Largest Municipal Failure in U.S. History

Big Bets Gone Bad: Derivatives and Bankruptcy in Orange County. The Largest Municipal Failure in U.S. History cover

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Author: Philippe Jorion Ph.D.

Pages: 176

Size: 2.798,68 Kb

Publication Date: September 18,1995

Category: Public Finance



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How do a municipal purchase pool, which is meant to be safe and sound, lose vast amounts of dollars?7 billion of Orange County’s $7. In December 1994, Orange County became the biggest municipality in U.S.4 billion investment portfolio. “Big Bets Gone Poor” provides an intro to the U. What exactly are derivatives and how do they donate to this tragedy? background to be bankrupt. “Big Wagers Gone Poor: Derivatives and Personal bankruptcy in Orange County” may be the first detailed explanation of the Orange County personal bankruptcy. Writer Philippe Jorion, the just professor in Orange County who teaches and researches derivatives, is uniquely positioned to comprehend the technical information on the portfolio and environment in the Orange County municipal govt that motivated the decisions that resulted in the personal bankruptcy. By borrowing seriously and placing the incorrect wagers, Orange County Treasurer Robert Citron dropped $1.S. relationship market and details Federal government Reserve Chairman Greenspan’s attempts to tighten credit. Its explanation of the $35 trillion derivatives marketplace makes the losses of Barings Lender, Kashima Essential oil, West Virginia, and Metallgesellschaft even more understandable. Because nobody loves to eliminate $1. “Big Wagers Gone Poor” explains what everyone ought to know about taxes monies and open public investments.7 billion.


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