Quote:
Originally Posted by teomaxxx
and by the way, if these guys go under, add BSC to the mix and you can be sure there will be a massive casade failures of other institutions too...
So at the end it doesnt matter much who will goes under as first, second or third, because they will trigger massive defaults of other institutions too....
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just read this about BSC
"``Bear Stearns is a big counterparty in the credit derivatives universe,'' said Jochen Felsenheimer, head of credit strategy at UniCredit SpA in Munich. ``If it were to default, definitely that situation is a horror. There would be huge distortions in the market. That is why the monetary authorities are trying to avoid any failure of banks.'
Barclays Capital analysts last month estimated that if a financial institution that had $2 trillion in credit-default swap trades outstanding were to fail, it may spark between $36 billion and $47 billion in losses for those that traded with the firm. That doesn't include ``large, potentially concentrated'' market value losses others would face, the analysts, led by Arup Ghosh in London, wrote on Feb. 20.
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maybe if BSC isnt saved, they will be first to trigger massive casade of failures...
but of course BSC isnt the only one to be saved, there are more banks slowly the way..and not enough dough to save them all.