In March 1993, the leadership of Paribas Capital Markets makes a final review of the proposal to establish Paribas is Garantis (PDG), a special purpose subsidiary of Compagnie Financiere de Paribas (CFP), which would guarantee derivative products offered by the Bank Paribas. This offer is unique in a number of ways and the CFP will be the first group of banks to set up such subsidiary. Management Paribas Capital Markets must now submit to the Board of Directors CFP, parents Banque Paribas, in the logic of forming PDG, the structure of the subsidiary, as well as the rationale for the commitment of capital. Due to the derivatives markets: structure and risks, can be used to study the structure and risks of the OTC derivatives market, and more, creating a triple subsidiaries and credit risk management "Hide
. by Scott P. Mason, Kuljot Singh Source: Harvard Business School 9 pages. Publication Date: September 27, 1994. Prod. #: 295008-PDF-ENG