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Banks Promise No Lehman Moment By Relying On Unfinished Derivative Rule Change 

July 14, 2015

Antoine Gara, Forbes 

“Relax! This time, if we fail, we won’t drag the rest of capitalism down with us.” That seems to be the message from America’s financial powerhouses after a read through of their updated living wills, delivered to the Federal Reserve and FDIC this July.
 
JPMorgan Chase JPM +1%, Goldman Sachs Group GS +0.85% and Morgan Stanley MS +1.25% all said that if they were to default in a new crisis scenario, they don’t foresee another Lehman Brothers moment — a messy bankruptcy that freezes trillions of dollars in trades and anchors the country’s largest lenders and asset managers to a single sinking firm. But, much of that assurance rests on an arcane and yet to be finalized change to the way trading occurs in the $630 trillion market for over-the-counter derivatives.
 
Read More: Forbes
 
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