when they realize if any one of them, fdic, the bank of england, bofa in germany or swiss authorities were to try to resolve one of the their major banks, under the isda master agreement, all of the foreign counter parties to swap agreements which number as you know in the trillions, would be able to immediately close out their contracts, net it and run. they are not constrained in the way others are by a stay. secondly, they are concerned that if the u.s. were to put a major bank in resolution and shift it to a bridge bank which is what title ii permits, this bank should be very healthy but a change in control under the isda master agreement would give opportunity for the counterparty declare a default and try to act. it would also be true if they exercised a default across clause. all of these things could make it virtually impossible to resolve a large international institutions because they have huge numbers of cross-border derivatives of these kinds. what the, these resolution authorities ask is to please think about changing its laws to, its master agreements to make all of this

over at the bofa, he is in asia. and saying that the bank they're advising buying credit, basically saying that they should buy swaps on five-year chinese debt as the easiest way to quote, hedge the china tail risk. there is lot of context here. remember back in june international markets shook after hints that a chinese central bank governor would be cushing credit and then lending rates in china skyrocketed. remember that? in october the pboc held back on liquidity operations. the market anticipated that and may put a brake on credit expansion. look how asian markets reacted to this. kospi was down. hang seng was down as well as nikkei was down. shanghai was down 1.6%. if you look what actually happened on the ground, dagen and connell, seems the roll back on the credit they have been talking about actually hasn't been fully executed. if you look at new local currency, loans that were dispersed, $103 billion in october. that's actually up from, sorry, that's up from october. so 103 billion excuse me in november. so