For the derivatives market, one of the most interesting and
controversial events of the credit crunch occurred in the week
of September 7 2008, when US mortgage lenders Fannie Mae and
Freddie Mac were bailed out. The rescue triggered a credit
event for many different types and tranches of bonds, but the
storm around one particular bond led to an unprecedented move
by industry association Isda.
David Geen, general counsel at the International Swaps and
Derivatives Association, was at the heart of the storm. As the
head of Isda's seven-man legal team in the UK, US and Asia, he
has to coordinate the legal response to issues brought to Isda
by its members around the world. And during those weeks there
was a deluge of requests.
"We were flooded with questions largely
straightforward ones, but which required a lot of coordination
to answer and keep on top...