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Their derivatives were more than double the US federal debt
Posted on: October 2, 2016 at 20:01:52 CT
JeffB MU
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and almost triple the European Union's GDP as of Dec. 2015.
They have allegedly dropped their exposure considerably, but it's undoubtedly huge. In the past, they have also tried to diminish such exposures by offsetting bets in one direction with bets in the opposite direction, but that isn't necessarily an accurate depiction of the actual risk.
If counterparties on one side or the other can't pay off if they lose their bet that "insurance" they thought they had really isn't there to backstop them. The parameters on those derivatives may also not be perfectly aligned. There might be different durations or trigger points involved.
http://www.zerohedge.com/news/2016-10-01/according-jpmorgan-biggest-risk-facing-deutsche-bank-point
Edited by JeffB at 20:35:15 on 10/02/16
They have allegedly dropped their exposure considerably, but it's undoubtedly huge. In the past, they have also tried to diminish such exposures by offsetting bets in one direction with bets in the opposite direction, but that isn't necessarily an accurate depiction of the actual risk.
If counterparties on one side or the other can't pay off if they lose their bet that "insurance" they thought they had really isn't there to backstop them. The parameters on those derivatives may also not be perfectly aligned. There might be different durations or trigger points involved.
http://www.zerohedge.com/news/2016-10-01/according-jpmorgan-biggest-risk-facing-deutsche-bank-point
Edited by JeffB at 20:35:15 on 10/02/16
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Their derivatives were more than double the US federal debt - JeffB MU - 10/2 20:01:52