Jan 28, 2008

Joseph Mason on derivatives

The contingent liability of banks to support off-balance sheet assets is a huge source of volatility in the financial markets and that a system which supports over $9 trillion worth of GSE and private label securitizations atop $6.7 trillion worth of US bank deposits is inherently unstable.

~ Joseph Mason, Drexel University Professor, "Rogue Traders and Economic Capital," IRI, January 28, 2008

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