George Washington’s Blog
Saturday, Oct 11, 2008
We know that issuers of Lehman’s credit default swaps will have to pay out hundreds of billions of dollars. But who will actually have to pay that out?
JP Morgan gave the following chart of European banks’ counterparty risk on Lehman a couple of weeks ago:
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Those banks apparently got nailed.
And probably some of the big American banks and investment houses (like JP Morgan, Citi and Bank of America), insurers (like AIG) and hedge funds with CDS exposure listed here also got nailed.
Some sovereign wealth funds may have also taken a hit.
This article was posted: Saturday, October 11, 2008 at 4:19 am