http://www.senseoncents.com/2009/07/can-we-trace-jp-morgans-business/ Navigating the Economic Landscape Wed, 17 Mar 2010 00:14:24 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.senseoncents.com/2009/07/can-we-trace-jp-morgans-business/comment-page-1/#comment-3363 Aaron kramer Fri, 17 Jul 2009 13:23:32 +0000 http://www.senseoncents.com/?p=7789#comment-3363 Great idea LD but it will be fought because TRACE would expose how much counter party risk GS and JPM actually are exposed to and expose others to. There are rumors to the actual size of JPM off the balance sheet derivatives exposure and it is a multiple of our country's GDP. I not saying that its ultimate exposure is that great, as we saw with the Lehman book close to 90% of the book was netted out, but a little clarity would be nice. Of course would you see JPM as a great counter party if you knew they had 60 trillion in derivatives on its books? a 100 trillion? The idea of netting out risk is great when all the parties pay at 100%, just ask GS. Unfortunately when your counter parties don't pay everyone else is left in a lurch. Great idea LD but it will be fought because TRACE would expose how much counter party risk GS and JPM actually are exposed to and expose others to. There are rumors to the actual size of JPM off the balance sheet derivatives exposure and it is a multiple of our country’s GDP. I not saying that its ultimate exposure is that great, as we saw with the Lehman book close to 90% of the book was netted out, but a little clarity would be nice. Of course would you see JPM as a great counter party if you knew they had 60 trillion in derivatives on its books? a 100 trillion? The idea of netting out risk is great when all the parties pay at 100%, just ask GS. Unfortunately when your counter parties don’t pay everyone else is left in a lurch.

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