Contagion – 2008

  • From: “Habayeb, Elias”
    Sent: 09/16/2008 07:16 AM 
    To: Alejandro LaTorre
    Cc: “Frenkel, Dr. Jacob A.” <Jacob.Frenkel@aig.com >
    Subject: FX Settlement Failures
  • Alex,
    • It seems that Barclays, JPM and Deutsche Bank are holding back on the amounts they owe us under FX transactions.
    • If this continues, the amounts are in the billions. This is extremely dangerous because it impairs our ability to make payments on the other side.
    • This is the risk we were most concerned about and shared with you over the weekend.
    • I would like discuss with you soonest possible as it is cascading through the system.

https://ypfsresourcelibrary.blob.core.windows.net/fcic/YPFS/JX-062sdnewones.pdf