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MVIS 1.080

+2.9%

Nov 7 9:30 AM EST

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To: dvdw© who wrote (7997)	1/20/2002 4:44:00 AM
From: Steve Lee	Read Replies (2) of 8150

re: "It's about a 33 Trillion dollar derivatives exposure at JPM" No it isn't. It's about 33 trillion dollars of derivatives notional values. And that 33 trillion is the total for all US banks. Do some research on what notional values are. I made a derivatives trade on Friday. The worst possible outcome was a $30,000 loss. Yet the notional value of the derivatives involved was $600,000. If it was a larger trade, I might have hedged it. If I had, my maximum downside would have been less, but the notional value would have doubled. You cannot draw a conclusion about exposure based on looking at total notional values. The Zeal article jumps all over some large numbers without explaining why they think it is a bad situation. I suspect they are using the "bullshit baffles brains" approach to support their JPM short position.

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