JPMorgan's big move into derivatives

The carnage on Wall Street has redrawn the pecking order in many markets. Which spells opportunity for those that have emerged in a relatively strong position. JPMorgan for example has made a big move in OTC derivatives, especially interest rate and currency swaps, reports Bloomberg. The bank reportedly made $5 billion from such trading in 2008. JPMorgan held more of these derivatives than the next two banks combined, Bank of America and Citigroup, as of Sept. 30, the article notes.

Figures for Goldman Sachs and Morgan Stanley have not been released. This is impressive but also a bit dangerous. As a TARP banks, it might draw some attention from the government. Making markets is always a two-edged sword. There's no guarantee the gains will continue. Some might see a disaster in the making.   

For more:
- here's the Bloomberg article

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