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To: d:oug who wrote (39762)	8/30/1999 3:15:00 AM
From: Zardoz	Read Replies (2) \| Respond to of 116801

It's a derivative, but may not be a ticking time bomb. Any equity that you gain leverage from, whether it be a margin or loan, is a derivative transaction. Some derivative can be positive lock in before the transactions actually begin. So know doubt the term of the loan would occur after the lender hedges into a position. The loan is also non-recourse, so you have no personal liability for your loan, and your maximum downside is capped at 10% for your entire loan term. Uhhhm I wouldn't count on that statement being "forthright". Hutch PS: with out disclosure of the hedging programme, the liability can not be judged.

To: d:oug who wrote (39762)	8/30/1999 9:18:00 AM
From: long-gone	Read Replies (1) \| Respond to of 116801

<<David Tice calls the 90% Stock Loan a derivative transaction and calls it a ticking time bomb.>> Doug, I overheard some talk yesterday (one of the guys talking was wearing a ball cap with NYSE on it) saying his firm was "quietly and softly tightening select margin requirements". He went on to tell his friend he just hates weeks that start like this as it will cost him business when the firm rather than the Fed changes the rules mid-game. He was pounding shots of gold tequila and chasing them with an expensive micro-brew beer in a casino where tap beer and call drinks are free. I believe some of the most speculative margin has come out of the market or will come out very shortly.