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In 2008 at the height of the financial crisis, the investment bank kept its derivative business in its core operations rather than shifting it into a subsidiary that enjoyed greater taxpayer protection and a higher credit rating.
"We wanted to make sure we didn't drive all the derivative business out of New York," said Representative Gregory W. Meeks, a Democrat from Queens, who served on the conference committee.
Indeed, in September 2005, he summoned the bankers doing the most derivative business to attend a meeting at the New York Fed offices for the first time since the 1998 Long-Term crisistandManagement (LTCM) crisis, and was able to get them all to agree to overhaul their back-office procedures for confirming trades on credit derivatives.
This was never more evident than in their questioning of the A.I.G. witnesses on the first day of this week's hearing, including Joseph J. Cassano, the former head of A.I.G.'s Financial Products, the unit whose derivative business helped bring down the parent company.
The FMG segment manages the derivative business, foreign exchange, and asset liability management operations.
Because of this natural selection, a bank is mostly in the receivables in its derivative business with corporates.
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And along with the growth of coaching come derivative businesses that cater to them.
For years the big banks have relied on taxpayer-funded deposit insurance to backstop their lucrative derivative businesses.
At J.P. Morgan Investment Bank, more than 100 people, from traders to risk managers and computer programmers, have been busy for months retooling the bank's giant derivatives business.
Look at the derivatives business.
It has a tiny, token derivatives business.
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consequent business
differential business
due business
soft business
circumstantial business
subsequent business
indirect business
secondary business
consequential business
subsidiary business
derived business
downstream business
associated business
result business
daughter business
proxy business
mineral business
products business
spin off business
mushroom business
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