VideoWhat's your exposure to credit-default swaps and have they caused any problems for you?
We use credit-default swaps as a hedging tool within our global banking and markets business. Have we come a cropper on them? Structurally, no. But just because of widening spreads within that marketplace, we have experienced some mark-to-market pressure. If you total up credit-default swaps across our entire traded book within the U.S. bank, the marks we've taken over the last 18 months are in the region of $2.2 billion. But we've had no exposure to collateralized debt obligations.
From a portfolio perspective, credit-default swaps are within the book. But in terms of have they represented or do they represent a significant risk to the institutions? I'd have to say that's not the case.
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