1. Bankers Trust said that at its peak, about five percent of its revenues came from such leveraged derivatives. 2. Many of the traders that focused on leveraged derivatives have left the bank since Newman was hired last year. 3. Most of those losses came as investors tried to use leveraged derivatives created by Wall Street to magnify their returns beyond those paid by the underlying securities. 4. The bank said that these transactions represent all of the potential problems it may face from the leveraged derivatives business. 5. The trades involved volatile bets on interest rates known as leveraged derivatives, because their value is derived from bond prices. 6. To make its case, Procter identified eight other companies that had lost money as a result of leveraged derivatives sold by Bankers Trust. |
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