can basically loan or gamble on derivatives thirty three times that amount earlier i spoke with robin berry a former investment banker with credit suisse and a corporate finance executive and i asked her about leverage during the financial crisis and the expansion of the derivatives market. all of the banks got in trouble in the financial crisis because of the bets they placed on the mortgage market in the securitization that happened from that we saw just last year j.p. morgan have a trading loss that they first. started as a loss of you know some they thought that their loss was two billion then it became six billion. and that's just one example of something that can't be valued if they don't know their total risk which is hard for for even the banks to know at any given time and we have capital management stevie cohen's front for him is facing charges allegations of insider trading wire fraud and the hedge funds are leverage to the hold to i think they had thirteen billion dollars under management but they actually had forty four billion dollars at risk and what you're saying if i unders

was my interview with former investment banker with credit suisse and corporate finance executive robin berry now following up on our discussion about interest rates let's look at in the story example of interest rate fixing among two central banks in the lead up to the great depression for more on this we turn to prime interest producer justin underhill justin can you walk exactly through what happened during the early one nine hundred sure well we have a graph here of the english economy from one thousand nine hundred through one nine hundred thirty the green line is the value of pounds in terms of gold the lower the line the less valuable the pound is in the less gold you would receive for each pound the yellow line is the price index ranging. from zero to thirty well england was on the gold standard the price level was fairly constant so that's going up until one nine hundred fourteen so during world war one nine hundred fourteen thousand nine hundred eighteen england effectively doubled its money supply causing the price index to increase substantially as we see it right here during this

that was my interview with former investment banker with credit suisse and corporate executive robin berry now following up on our discussion about interest rates let's look at in the story example of interest rate among two central banks in the lead. to the great depression for more on this we turn to prime interest producer justin underhill justin can you walk as exactly through what happened during the early ninety's hundreds well we have a graph here of the english economy from one thousand nine hundred through one nine hundred thirty the green line is the value of pounds in terms of gold the lower the line the less valuable the pound the less gold you would receive for each pound the yellow line is the price index ranging from zero to thirty well england was on the gold standard the price level was fairly constant so it's going up until nine hundred fourteen so during world war one hundred fourteen thousand nine hundred eighteen england effectively doubled its money supply causing the price index to increase substantially as we see right here during this time they also suspended the g