Are Interest Rate Swaps with Nonprofit Entities Unconscionable Contracts?

A. Rashad Abdel-khalik

Chapter 34 in Brazen:Big Banks, Swap Mania and the Fallout, 2019, pp 397-426 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Dancing with snakes in their ceremonial rituals and related magic shows has been a long-held tradition of the Native American Hopi tribe in Arizona. Starting in 1990s, big banks began performing their own form of dance. They scattered their sales forces across the land to entice nonprofits to a perpetual grand dance with a special type of intangible snakes that were not defanged — snakes known otherwise as interest rate swaps or interest-rate-exchange contracts…

Keywords: Swaps; Interest Rate Swap; Unconscionable Contracting; Termination Penalties; Embedded Costs; Paying for Nothing; Gambling; ISDA; Master Agreement; Deceit; Inadequate Disclosure; Hidden Costs; Zero Sum Game; Wealth Transfer; Paper Chasing Paper; Floating Rate; Synthetic Rate; Credit Risk; Demonstrations; Water Shut Off; Union Class Action Suit; The LIBOR Scandal; Non-Profit (search for similar items in EconPapers)
JEL-codes: E43 E44 (search for similar items in EconPapers)
Date: 2019
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