Re:U.S. Secretly Halted JPMorgan’s Growth for Years
by pishpash on Monday October 29, 2018 @07:37AM
(#18326608)
Interest rate hedges are not free. There is no free lunch. Anyway I am not suggesting that there is a way to avoid paying the cost one way or the other, once the horse has left the barn when the banks put junk on their books with depositors' money. Unless you can unwind those or claw back years of executive compensation the damage is done.
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Re:U.S. Secretly Halted JPMorgan’s Growth for Years
by pas on Monday October 29, 2018 @08:30AM
(#18326930)
Agreed, but long term rates are and always were (to my knowledge) higher exactly because of the larger uncertainty.
That said, "mark to market" is better than some magical nominal pricing. Of course creative accounting is the name of the game, that's why regulators need proper authority to request reports that help clarify things (so that helps them to stay ahead).