US Bank Derivative Exposure
Chris Whalen at the Institutional Risk Analyst asks an interesting question: How Much Capital Does a Bank Need?
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:
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Economic Capital is as calculated by IRA. All figures in $000 :
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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.
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Source:
Memo to the President-Elect; How Much Capital Does a Bank Need?
Chris Whalen,
Institutional Risk Analyst, August
21, 2008
http://us1.institutionalriskanalytics.com/pub/IRAstory.asp?tag=301
Thursday, August 21, 2008 | 02:30 PM | Permalink
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primero!
Posted by: JS | Aug 21, 2008 2:39:17 PM
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