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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (3821)	8/13/1998 1:34:00 PM
From: yard_man	Read Replies (1) \| Respond to of 86076

When is the deal complete? They trade as separate issues. Hedging is good -- let's face it without the proper controls it becomes speculating or if badly done ...

To: MythMan who wrote (3821)	8/13/1998 1:45:00 PM
From: Defrocked	Respond to of 86076

Banks usually hedge credit risk through industry, country limits and trading/fee-based activity. But what's a bank to do when Far East, So.Am., other exposures all decline at once??? Bank stocks getting tagged in Hong Kong and London today. They probably won't show losses but writedowns will drag on earnings IMHO. Uptick in volatility will alter mix of currency, interest rate, emerging market desks positively, if lucky, or negatively, if not so nimble. BWTFDIK<g>