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Non-Tech : Derivatives: Darth Vader's Revenge

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To: Worswick who wrote (1044)12/21/2001 10:35:17 AM
From: Thomas M.  Read Replies (1) of 2794
 
Some interesting stats in this free teaser of a Grant's article:

<<< KEEPING UP WITH JPM

J.P. Morgan Chase is the Hertz of the derivatives
business with no visible Avis, affirms the new
quarterly "Bank Derivatives Report" of the Office of
the Comptroller of the Currency. Although
possessing just 13.2% of the assets of all banks with
derivatives on September 30, JPM held 59.3% of
the derivatives contracts within the banking system
(measured at face, or notional, amount). Although
holding just 0.8% of the capital of banks dealing in
derivatives, it was exposed to 49.4 % of the net,
systemwide credit risk associated with derivatives. In
the past four quarters, both ratios--notional to assets,
net credit exposure to capital--have worked higher.
Is it a crime to be big? >>>

grantspub.com
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