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Bad bets on unregulated credit derivatives cost the bank an initial $2 billion, and now Morgan Stanley estimates the losses will rise to $5 billion by the end of the year, the Financial Times's FT Alphaville blog writes.
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Moreover, investors can trade any share or derivative cost-effectively through a local exchange, using globally active brokers and so-called Direct Market Access services.
And for derivatives, historic cost accounting is patently wrong.
But the derivatives deal cost Navistar at least $20 million -- money that it will never recover.
He said new restrictions on credit and debit card fees, as well as derivatives, could cost his bank at least several hundred million dollars annually but added that the bank would find new sources of revenue to plug that gap.
In a 129-page internal report dissecting a bad bet on credit derivatives that cost the bank more than $6 billion, the bank confessed, in painstaking detail, to widespread "failures".
The news came as board members of Groupe Caisse d'Épargne, one of the largest French mutual banks, voted Sunday at an extraordinary meeting to fire the lender's three top executives after the announcement Friday that unauthorized trading in derivatives had cost the bank 600 million euros.
Other potential litigants -- hedge funds, maybe -- bought derivatives that cost them money when Libor rose.
But not being in it might have prevented JPMorgan's chief investment office from having those big bets on credit derivatives that cost it $2 billion.
Although, good-quality dried leaves of kalmegh could be sold for US$5/kg, purified compounds and their derivatives may cost as much as US$100,000/kg from specialist chemical suppliers [ 7].
However, most derivatives will cost a premium; it is up to the investor to decide if the premium is worth it.
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