[coloradan]

Yes, John lent $1,000,000 and can lose $1,000,000.

But ... but ... but you said that only the net matters, and the net was zero in this case. Now you're saying that the gross amount is what is important (if another party goes bankrupt)? The gross of derivatives is $300 trillion, not $279 billion.

[Neidermeyer]

Now you’re saying that the gross amount is what is important (if another party goes bankrupt)? The gross of derivatives is $300 trillion, not $279 billion.
*******************************
The numbers are so obscene that if the banksters attempt to use the FDIC rules to confiscate all our deposits it will collapse the currency... collapse EVERYTHING .... I do see them however using this ploy to “bail in” (like Cypress?) when hedge funds (many of them under their control) either fail or are ordered to fail by their controlling banks ... easily done by telling them to take their place as counterparty to whatever position the squid is working to collapse...

END THE FED

[Toddsterpatriot]

NCCE, net current credit exposure, includes possible losses if your counterparty defaults completely.

The net in this case is not zero.