They paid a fee already when signing the derivative contract. There's no way they're stupid enough to fork over more money. Would you?
I guess if China sells naked calls and on expiration its ITM, they can also refuse to deliver securities as well. But they keep the premium
Breaking derivative contracts on the basis of poor financial sophistication is pretty common... long history of this. These aren't exchange-traded positions; the counterparty isn't a clearinghouse. When these investment banks took the other side of these investments, they should've understood the counterparty risk inherent in these trades. Ultimately, the investment bank will decide if they value the on-going business relationship more, or they'll sue and resolve this in court. If they do sue, it better be ironclad. The investment bank will get their emails, voicemails, text messages, trading records subpoened... and their managing directors will have to spend days testifying. The goal by the defaulting counterparty: finding one email/message somewhere by a Goldman Sachs banker, gloating about the huge profits they're making on this trade, or laughing about the incompetence of the corporate officer signing the deal. If they can find proof of that, the deal is off. Read "Traders, Guns and Money" for more background on this.
Could someone tell me how investment banks are able to provide price agreements of a commodity they do not supplY?
Yes, much better to arrest, outlaw, abuse and torture religious groups like Falun Gong because they are seen as a threat... After all, who wants freedom, human rights or other stupid things like that? Ever heard of Tibet, Taiwan, Tianmen Square or other places that feel the love of the Chinese govt? I have spent time in China. Many of their intellectuals do not share the love you have for their govt. Let's all move to North Korea.
Have you ever thought of why the current government officials hate the falun gong group so much? They're atheist btw. What about the churches, that's a much bigger group of people congregating. Who also wants human rights, freedom, etc.. Yet the government officials leave them alone and let the churchgoers do their own thing. Now lets look at things from the falun gong POV, how did they accumulate all these people almost overnight. Continue to ignore government warning and keep provoking them. Yet they can remember 6/4 very clearly. Then when shtf, is the only time that the western media can finally get a glimpse of whats going on. Even the blind could see whats going on, Falun Gong was a front for power grab from the current Communist officials.
Quote from sumfuka: Have you ever thought of why the current government officials hate the falun gong group so much? They're atheist btw. Let's see what the non-coms classify them as: There is on-going debate about Falun Gong's classification as a religion, a new religious movement (NRM), or a "cult", term used by the Chinese government to describe the movement. Its teachings are derived from qigong, Buddhist and Daoist concepts. In April 1999, over ten thousand Falun Gong practitioners gathered at Communist Party of China headquarters, Zhongnanhai, in a silent protest following an an incident in Tianjin. Two months later the Chinese government banned the practice through a crackdown and began a large propaganda campaign. Since 1999, Falun Gong practitioners in China have been reportedly subject to torture, illegal imprisonment, beatings, forced labor, organ harvesting, and psychiatric abuses What about the churches, that's a much bigger group of people congregating. Who also wants human rights, freedom, etc.. Yet the government officials leave them alone and let the churchgoers do their own thing. You live in a fantasy world. Communism considered religion as suspicious going way back. Asian/European Communism has treated the religious as subhuman party poopers that are addicted to something that is not as good as Communism. Now lets look at things from the falun gong POV, how did they accumulate all these people almost overnight. Continue to ignore government warning and keep provoking them. Why should they have govt warnings? And as to provoking them, that is the Communist term for "disagreeing" with the Party. Yet they can remember 6/4 very clearly. Then when shtf, is the only time that the western media can finally get a glimpse of whats going on. Even the blind could see whats going on, Falun Gong was a front for power grab from the current Communist officials. Who has the tanks, nukes, army, navy? What have they or any other minority "grabbed"??? The current Communist officials have been in a continuous monopolistic power grab for decades. Of course they have the nerve that others may actually not be thrilled about a govt that controls every aspect of life. You sound like one of those insane Iranian govt officials, that keeps attacking their own people, because they actually have the nerve to question/oppose why the govt/religious authorities crackdown because everyone does not agree with them. Some of us westerners have a different view than yours. It is called "democracy." The govt belongs to the citizens, not to the top 1% that lives in luxury while everyone else lives in the mud. You work for them? You certainly sound like you have no idea about being an average, every day resident of a country. Of course we have our own version, that loads up on trillions of euros, dollars, pounds of debt. If you stopped being so paranoid, you might find out these "subversive" groups like the religious or others, just want to be left alone. Most of us wish governments would shrink drastically, and stop bleeding away the money, rights and happiness of the people.