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To: pater tenebrarum who wrote (50774)	12/22/2000 9:36:34 PM
From: yard_man	Read Replies (1) \| Respond to of 436258

I meant the whole thing to be encompassed by my <g> what will be interesting to see is what happens when a counterparty fails on a very large derivative contract or series of them ...again -- I'm not rooting for it -- just expect it is inevitable -- as was LTCM (not them specifically -- though some would argue that -- but something like it) VAR is a joke for most complicated transactions ... I was sitting in a meeting on Thurs and I was discussing purchasing a commodity (forward) versus a financial position. The ranking financial person began talking about credit rankings and how much better it would be to be involved with a bank (one that recently warned of increasing bad loans) because of its credit rating rather than another non-financial institution ... The bond ratings of the two entities were compared and I thought to myself -- who makes up the bond ratings anyway? Does standard and poors have that much independence from the banks? Who, if they are subject to any market risk at all, is going to get a better rating than a large cap bank?