Interest Rate Derivatives & Goldman Sachs & JPMorgan

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WendyT's picture
WendyT
Status: Bronze Member (Offline)
Joined: Sep 26 2008
Posts: 39
Interest Rate Derivatives & Goldman Sachs & JPMorgan

Chris,

Could you please comment on the matter of interest rate derivatives; the huge amounts of these held by GS and JPM (on the order of $87 Trillion and $38 Trillion, respectively, according to one source -which unfortunately I cannot locate at the moment); and the implications for FED policy visavis interest rates, for future banking sector losses, and the financial system in general? (I'm not asking for too much, am I? LOL)

I read "according to the fourth quarter report just released this past Friday by the Comptroller of the Currency (OCC), commercial banks lost a record $3.4 billion in interest rate derivatives, or more than seven times their worst previous quarterly loss in that category." The link to the OCC report is

http://www.occ.treas.gov/ftp/release/2009-34a.pdf

and an analysis of it is found at: http://www.moneyandmarkets.com/alarming-news-bank-losses-spreading-32910

Thanks!

WendyT

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