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De-facto guarantee test

Must-Read Investigative Report Highlights Wall Street's Latest Lobbying to Avoid Key Financial Reforms

Reuters' Charles Levinson has written a must-read investigative report on Wall Street's latest scheme to avoid critically important financial reforms: change a few words in their derivatives contracts and pretend that they are not guaranteeing their overseas affiliates. Wall Street's handful of biggest banks merely erase/delete the word "guarantee" from one or more of their foreign affiliates and then claim/pretend it is not guaranteed by the gigantic U.S.-based parent bank (backed by U.S.