That includes a charge for the risk that a counterparty goes bust.
Bear is a counterparty to some $10 trillion of over-the-counter swaps.
Anybody who has Enron as a counterparty in a trade might be concerned about getting paid".
Kerviel had entered the name of Baader Bank, a German brokerage, as a counterparty.
"Banks would rather show the Fed as a counterparty than another bank," Mr. Crandall said.
But if a counterparty is in trouble, that may not be appropriate.Investors may have taken one position with Bear Stearns as a counterparty, and then hedged its risk through another trade with, say, Morgan Stanley.
My fund may have a perfectly matched book, but it is suddenly in deep trouble if a counterparty is defaulting.
And this time, with the collapse of Jeb Bush, there isn't even a Mitt figure as a counterparty.
It has proposed that large, important institutions should have no more than 10% exposure to a counterparty.
"Every time a counterparty removes itself from the market, it makes it more difficult for anyone to do business.
The US government, in one form or another, is a counterparty to every single financial player in the world.
