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Jim's Quote of the Day:
"JP Morgan has assets of $1.6 trillion and equity of $126 billion. They
seem reasonably well-capitalized at 7.6%. We just hope that there's no problems
in their almost $92 trillion derivative exposure that is more than 50 times
their assets and, more importantly, greater than 700 times their equity. We
hope them to be well-matched, but if they are even the tiniest bit wrong, their
equity could be wiped out as their equity represents just 0.13% of their gross
derivative
exposure." - Steven Romick, writing in Agora Financial's Rude Awakening e-newsletter,
May, 2008
