Quote:
Originally Posted by teomaxxx
you know the biggest problem with all big banks is counterparty exposure, cause if Bearn Sterns would go into BK or any other bank with high derivate exposure, it could force a lot of other companies go into BK too.
Bearn Sterns alone has $13 trillion in counterparty risk.
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I read some analyst who wrote about BS counterparties, if BS was allowed to go BK , there would be around 50-60 billion loss from derivates.
good overview of banks derivate exposure.
http://bp2.blogger.com/_H2DePAZe2gA/...0-h/OCCpg1.png
any of these big companies going BK will force a lot of other counter parties BK too and so on....