FINANCIAL TIMES: …No bank has dramatically adjusted its exposure to the five countries, betting that gross positions, which range from $5.4bn at Morgan Stanley to more than $20bn at JPMorgan Chase, are manageable…
One senior Wall Street executive said his bank was approaching derivatives counterparties to say: “‘We’ve got this contract, it’s in euros, what I want to know is in the event that Spain were to be redenominated are we going to end up being adversaries on this or can we just agree that this is a euro contact? Let’s just move it to London law so we each agree that we know where we stand.’
“If they don’t … when that contract matures there’s not going to be any roll-over.” … (more)
