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Strategies & Market Trends : P&S and STO Death Blow's

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To: LTK007 who wrote (14406)11/9/2002 11:08:17 AM
From: ajtj99  Read Replies (2) of 30712
 
Even though their derivative exposure is large at JPM, I don't think their at risk derivative exposure is anywhere near that ratio.

They probably have enough money available to cover 1/3 or 1/2 of unrealized loss if it is in the $70-billion range. The US would have to take it over and do a JPM resolution trust thing. It's bad, but it won't bring down the US financial system. It will make the premiums the FDIC charges for insurance of accounts go up, however, as that would be a big hit on that fund.
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