4 ms·
I agree with this, but let's not forget about the counterparty risk making the interconnected financial system so fragile. If GS offsets its [long position with
by scyclow 11y ago
I agree with this, but let's not forget about the counterparty risk making the interconnected financial system so fragile. If GS offsets its [long position with JP] with a [short position with Citi], and Citi goes under, GS is screwed.
- retube 11y agoyeah but most interbank dealing is collaterised now so little counterparty credit risk left (altho this does arguably just shift counterparty risk to funding risk, but that's another story...)