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To: banco$ who wrote (36781)	7/7/1999 1:46:00 PM
From: long-gone	Read Replies (1) \| Respond to of 116790

A very good read: Has derivatives disease infected US companies? Tuesday 6 July 1999 In Tokyo, foreign brokers have been in trouble recently. They are accused, as it were, of turning native and helping Japanese banks to hide some of their staggering losses. The route to concealment involves derivatives. If you own assets that have fallen in price, you have made a loss. If you don't want this known you will welcome help, particularly if your job is at stake. You need someone who will buy the assets at their original cost and such people are normally difficult to find. The problem can at least be postponed, if you can sell your duds at the wrong price and buy their duds at an equally wrong price to compensate. But you must not be found out and you must be able to pretend that the asset you have bought is worth its purchase price. This means either fooling the accountants, or having silly accounting rules. Derivatives, are ideal. (cont) smithers.co.uk