Loading ...Who is Morgan-Stanley and why its 31-trillion in derivatives should concern you.
Buried deep in the report is Table 2, which broadens the landscape beyond just the commercial banking units of the mega Wall Street firms to what is lurking in the holding companies. In Table 2 we learn that Morgan Stanley ranks right up there with the other big boys on Wall Street, holding $31 trillion notional in derivatives. (See chart below.)
Adding in Morgan Stanley’s derivatives, the total rises to $247 trillion in notional derivatives with just these five banks holding 93 percent of the total. Equally noteworthy, the table shows that within Morgan Stanley’s $31 trillion in derivatives there are $1.6 trillion in notional credit derivatives – those pesky instruments that took down the big insurer AIG in 2008 and almost took down Morgan Stanley.
Who is Morgan Stanley and Why Its $31 Trillion in Derivatives Should Concern You