In his 2002 Berkshire Hathaway
Counterparty Liabilities (March 2009) |
Year-on-Year Growth |
|
---|---|---|
Goldman Sachs |
$91 billion |
(13%) |
JPMorgan |
$86 billion |
26% |
Bank of America |
$77 billion |
(13%) |
Morgan Stanley |
$54 billion |
(22%) |
Citigroup |
$81 billion |
(36%) |
Total |
$389 billion |
(15%) |
Source: IMF Working Paper, Counterparty Risk, Impact on Collateral Flows and Role for Central Counterparties, August 2009.
The "counterparty liabilities" figure for each company represents the amount owed to all its trading counterparties on over-the-counter (OTC) derivatives after accounting for netting agreements and assigned collateral. In other words, the International Monetary Fund has quantified the risk to the financial system if any of the five major players in the derivatives market were to fail, and it's clear from their figures that systemic risk is alive and well.
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