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US Bank Derivative Exposure
Posted By Barry Ritholtz On August 21, 2008 @ 2:30 pm In Credit,Derivatives,Valuation | Comments Disabled
The short answer: Alot.
The longer answer depends upon the bank’s derivative exposure. Chris includes this handy chart to help you figure out just what that cap need might be:
Sources: FDIC/IRA Bank Monitor; Q1 2008 data shown in “bank only” rollup.
WTF? $90 Trillion dollars derivative exposure for JPMorgan ? No wonder the Fed "rescue" of Bear Stearns was via JPM — it was their own derivative exposure that was at risk.
Memo to the President-Elect; How Much Capital Does a Bank Need? 
Institutional Risk Analyst, August
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2008/08/us-bank-derivative-exposure/
URLs in this post:
 Institutional Risk Analyst: http://us1.institutionalriskanalytics.com/
 How Much Capital Does a Bank Need?: http://us1.institutionalriskanalytics.com/pub/IRAstory.asp?tag=301
 Image: http://bigpicture.typepad.com/comments/files/bank_deriv_exposure.png
 Download bankcds_capital.pdf: http://bigpicture.typepad.com/comments/files/bankcds_capital.pdf
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