15/01/2013
Nicky Campbell and Rachel Burden with all the day's news and sport. More than 4000 jobs at risk as HMV calls in administrators. Colin Montgomerie tipped for second Ryder Cup captaincy. Plus England face India in second one dayer.
Last on
Clips
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Gambaccini: End to the era of record shops is "tragic"
Duration: 02:02
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Dan Snow on Syria : "I saw terrible things"
Duration: 06:01
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Challenge Andy: Credit default swaps
Duration: 01:01
Challenge Andy Verity
Explain what credit default swaps are and how they brought down huge financial institutions in 2008.
George lends Rachel a million pounds but worries she might not manage the 拢50,000 a year repayments. Nicky reckons her CREDIT's good so he offers George a SWAP. For 拢10,000 a year, he promises that if Rachel DEFAULTS, he'll pay instead.
The worry money rolls in with no payouts so Nicky gets greedy and does thousands of similar deals with borrowers all rated triple-A by Standard & Poor's. Then Rachel's interest rates jump and she can't pay. When many others default, neither can Nicky. Rachel's homeless, George is bust and Nicky is accused.
Rachel is the subprime borrowers, George is Lehman Brothers. And Nicky is AIG. And you, the listeners, are bailing him out.
Broadcast
- Tue 15 Jan 2013 06:00大象传媒 Radio 5 Live