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

To: accountclosed who wrote (838)	3/25/1999 11:37:00 AM
From: Henry Volquardsen	Read Replies (1) \| Respond to of 2794

I was talking about counterparty risk in the derivatives portfolio. Good question about who fits under the "too big to fail" net. The LTCM certainly indicates the net has widened under the guise of wanting to maintain orderly markets. While not as critical as some, I believe the Fed should have stayed out of LTCM. It would only have been messy for a very short period and it would have been much moe instructive to the market if the failure had played out.