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Sunday, January 23, 2011
ARTICLE: So Where, Exactly, Did Lehman’s $130 Billion Go?
Lehman had $6 trillion of derivatives. But if they included credit default swaps, they were presumably hedged with offsetting positions, so the notional amount would way overstate real exposures. And another portion was probably plain vanilla stuff like interest rate swaps, which would not have a lot of latitude for pricing disputes.
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