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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (325)	10/4/1998 5:36:00 PM
From: Henry Volquardsen	Respond to of 2794

e, I believe for the most part the '$3.5 bln' was essentially accounting entries and there were not a lot of checks moving around. Firms that had $100 mln in lending exposure now had $100mln in equity. There may have been some variations but I suspect that was the main mechanism. This essentially allowed them to avoid collateral siezures and forced liquidations that could have been very ugly. Re gold, I have heard those rumours and have been skeptical. If they did short gold however I doubt they did so on the exchange and did it all OTC. You don't have a suspicous mind, a lot of questionable behaviour has taken place. Henry