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To: proxy_user
"Nobody knows what is in these contracts, except for DB."

DB and the counter party.

Events may have already taken place which executed DB. We'll not know for a week or two.

Derivatives are constructed in every conceivable fashion. You could probably construct and sell a derivative on whether the Giants will win another world series and there's no controlling legal authority that says you can't.

And that's not a business a consumer deposit and loan bank ought to be in.

15 posted on 10/02/2016 5:36:58 PM PDT by Mariner (War Criminal #18)
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To: Mariner

1. DB is far from a consumer deposit and loan bank.

2. While each counterparty knows what is in their own contract, they have no idea to what extent DB has hedged the risk. I may know that DB has to pay me 1.1 million Euro a month if the central bank rate goes above .5%, but I have no idea if somebody else has to pay them 1.2 million Euro a month if the central bank rate goes above .5%.


18 posted on 10/02/2016 6:35:59 PM PDT by proxy_user
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