And Meanwhile On The Other Side Of The World...
From the Doug Kass rumor bag:
"High above the Alps, my Gnome continues to hear of a $3 billion-plus derivative loss at a major Japanese financial institution. Stay tuned, as that Gnome has a good nose."
Update from a reader: Some more color on deriv losses - hearing that it was a structured desk...that explains why low spread names are wider and high spread names so much tighter...supersenior vs equity was very popular way to bet on weakness cheap