Insured U.S. commercial banks lost
$9.97 billion trading cash and derivative
instruments in the fourth quarter of 2007, according
to the Office of the Comptroller of the Currency.
This was a sharp reversal from $2.3 billion in
revenues in the third quarter. Commercial banks also
lost $11.8 billion in credit trading in the fourth
quarter, a further deterioration from $2.7 billion
in losses in the third quarter.
The report noted the heavy concentration of
derivative contracts in a small number of
institutions. The largest five dealers hold 97% of
the total notional amount of derivatives, while
the largest 25 banks hold nearly 100%. The report
said 98% of all credit derivatives are in the form
of credit default swaps.
The IRS’s 2016 Data Book, a “hot job” of particular interest at this time of year, and insight into how executive and audit committees view the insights from financial statement audits received attention recently. See how much you know with this short quiz.