Global Financial Risk Management; Fall 200JArticles from Wall Street Journal & other sources; Corporate Uses of Derivatives

Index

Summary of Recent Derivative Disasters 1

Group of Thirty Derivatives Project Good Practice Recommendations 2

Bankers Trust Says Derivatives Boosted 1st Qtr Profit - 4/21/94 4

Bank Regulator Signals Move on Derivatives - 4/21/94 5

Kidder Firing May Indicate Further Woes - 4/22/94 6

Dell Computer Sees Derivatives Losses - 4/22/94 7

Fancy Footwork: Bankers-Trust Thrives Pitching Deriv.'s - 4/22/94 8

Bank on It: Upheaval Breeds Derivatives - 4/26/94 10

Fed Studies Mortgaged-Backed Market - 5/20/94 11

Derivatives Aren't the Danger - 5/23/94 12

SEC is Seeking Data on Firms' Derivative Risk - 5/24/94 13

Greenspan Suggests Derivatives Require Different Kind of Regulation - 5/26/94 .14

SEC Chief Levitt Warns Mutual Funds in Handling Derivatives - 6/21/94 15

Funds Prodded to Shed Assets in Derivatives - 7/5/94 16

SEC, Six Firms Work to Set Derivatives Rules - 7/6/94 17

Piper Manager's Losses May Total $700 Million - 8/25/94 19

Disclosing Data on Derivatives To Be Required - 8/28/94, 10/6/94 20

First Union, Undeterred, Peddles Derivatives to Midsize Firms - 11/28/94 21

Bankers Trust Facing Action On Derivatives - 12/5/94 22

A Royal Mess: Britain's Barings Bets on Derivatives And Cost is Dear - 2/28/95 .. 23

Barings Collapses; Financial System Bears Up Well - 2/28/95 25

Leeson Loses Barings - 2/28/95 .26

Securities Firms Agree to Set Controls on Derivatives - 3/9/95 .27

S&P Takes Rare Stand Against FASB Over Plan to Assess Risk of Deriv's-3/15/95.28

Plain Vanilla Derivatives Can Also Be Poison - 3/20/95 29

Connecticut's Pension Fund May Incur Loss Up to $25 Million on Deriv's-3/28/95 .30

Dollar to Play Central Role in Profit Data - 4/17/95 31

Treasurers of Multinationals Took Risks to Profit From Falling Dollar - 4/17/95 .. 32

Emerging Markets Grab Exchanges' Attention, Attract Bond Investors-4/17/95 33

Where's the Reward in Hedging Against Risk? - 4/27/95 34

Dirty Dealing - 5/5/95 35

. Do Knock-Out Options Need to Be Knocked Out? - 5/5/95 36

A Big Investor Feels Little Fear of Derivatives - 5/22/95 38

SEC Inquiry on Whether Trader Violated Rules Involving College Fund - 3/3/95 . .40

Proper Use of Derivatives Cuts Risk - 7/10/95 41

A Primer on Managing Foreign Currency Risk - 7/10/95 .42

Barings Collapse Tied to Wide Cast in Special Report - 7/19/95 : .44

CFTC Levies Fines Against German Firm - 7/28/95 .45

Paine Webber to Invest $100 Million of Own Capital With Outside Fund -8/8/95 . .46

How to Prevent Future Nick Leesons - 8/8/95 .47

Rein In the CFTC - 8/17/95 .48

SWAPs in Danger - 8/17/95 49

Derivatives Could Hedge Career Growth - 8/24/95 50

Fischer Black, 57, Wall Street Theorist, Dies - 8/31/95 51

Peat Faces Orange County $3 Billion Suit - 9/1/95 53

Index Options Touted as Providing Peace of Mind - 9/5/95 54

Nineteen U.S. Exchanges to Share Data on Dealings - 9/6/95 55

As Orange County Blames Others, Guess Where Latest Report Points - 9/7/95 56

J. P. Morgan Slashes Its Mortgage Business - 9/18/95 57

Armco Hedges to Hold Market Gains - 9/18/95 58

Derivatives' Risks Remain Unchecked - 9/19/95 59

Futures Market Loses Allure as Stocks Soar - 9/15/95 60

P&G Can Add Racketeering to Its Claims - 10/4/95 61

CBOE Proposes a Rule to Quell 'Dorfman Effect' - 10/11/95 62

Harvard is Knee-Deep in Derivatives - 11/20/95 63

Brokerage Firms Take Action to Detect Rogue Traders in Their Midst - 11/29/95 .. 67

New Index Derivatives Target Growth, Value Managers - 11/27/95 69

SEC's Long-Delayed Plan Would Make Companies Disclose Risks - 11/27/95 70

Fanners May Be Next Victims of Derivatives - 12/11/95 71

OTC Derivatives Trading Globally Put at $41 Trillion - 12/19/95 72

Grain Accords Pose Problems for Elevators - 12/26/95 73 ~

Report on Common Fund Cites Warning Signs - 1/17/96 75

Bankers Trust Pays $67 Million to Settle Deriv's Dispute with Finn - 1/25/96 76

SEC Limits Money Market Funds' Risk - 3/22/96 77

Hybrid Issue Skirts Taxes, Federal Law - 3/26/96 78

EU Exchanges Vie for an Edge in Currency Union - 4/3/96 80

FASB Modifies Deriv's Approach In Move to Reduce Profit Fluctuations - 4/5/96 .. 82

'Duration" Is a Key to Bond Funds' Risk - 4/6/96 83

Proposed Accounting Rule Could Boost Per-Share Earnings of Some - 4/1 0/96 84

Commodities Get Bold Push from Goldman - 4/22/96 86

Grabby - 9/18/96 88

Merrill Aides Could Face Charges - 9/25/96 89

Bid to Overhaul Futures Trading Sparks Debate - 2/18/97 90

Pre-Emptive Strike by Derivatives Players - 2/21/97 91

High Court Rules Against CFTC in Options Case - 2/26/97 93

More Finns Use Options to Gamble on Their Own Stock - 5/22/97 94

Variable Success - Global Finance, July 1997 95

Exercising Your Options - Latin Finance, July 1997 98

Credit Derivatives: A Loan Together, AsiaRISK, August 1997 100

Corporate America Bullies FASB, Part IT- 9/11/97 104

Asian Currency Chaos Roils U.S. Tech Finns, But It Isn't All Bad - 12/12/97 105

VaR Offers Another Way to Slice Data - Pensions & Investments, 7/27/98 106

Derivatives= Role in Sell-Off - 9/2/98 107

Fund Partners Got Outside Financing - 9/28/98 108

Regulators Face Calls on Scrutiny of Hedge Funds - 9/28/98 109

Hedge Fund Recently Sold $5 Billion of Assets - 9/29/98 110

Derivatives: A Mixed Bag for U.S. Banks - 9/29/98 112

How Buffett, AIG & Goldman Sought Long- Tenn Capital - 9/30/98 114

What Are Hedge Funds and Who Are They For? - 9/30/98 115

How to Save the World - 9/30/98 116

Most Hedge Funds Play It Safe - 10/1/98 117

Long- Term Capital=s Partners Got Big Loans to Invest in Fund - 10/6/98 118

Long-Term Capital Had Wide Bets - 10/7/98 119

A Firm that Failed Well- 10/12/98 120

BankAmerica Disaster Arose From a Lack of Standards - 10/27/98 121

Long-Term Capital Bailout Spotlights a Fed >Radical= - 11/2/98 122

CFTC Chief Refuses To Take Back Seat In Derivatives Debate - 11/3/98 124

London=s Rate-Setting Is Raising Doubts - 10/11/98 126

Annuity Designed to Battle Volatility Is Also Hurt By It - 12/7/98 128

SEC Probes Hedge Fund=s Disclosure - 12/8/98 129

A Fund Charges It Was Defrauded Of$21.6 Million - 12/24/98 130

Long-Term Capital Partnership May Get $50 Million Fee - 12/24/98 131

New Electronic Options Market Is Bringing Changes to Industry - 5/26/00 132

Leach Criticizes Bank Regulator On Stock Rule - 9/11/2000 134

New Accounting Standard Gets Mixed Reviews - 10/23/00 135

MITTS: Stock Plays for Chickens - Business Week - 4/9/01 136

A Bear-Proof Way to Ride the Market - Business Week - 4/30/01 137

As Enron's Derivatives Trading Comes Into Focus, Gap in Oversight - 1/28/02 . 138

How Ford's Big Batch Of Rare Metal Led To $1 Billion Write-Off - 2/6/02 139

Irish Bank Says a U.S. Trader Lost $750 Million- 2/7/02 142

As Big Losses Grew, Trader's Solution Backfired - 2/8/02 143

Enron's Actions Before News Event May Have Multimillion Payoff -2/15/02 .. 145

Options Aren't Optional in Silicon Valley - 3/4/02 146

Options Trading Explodes Online In Latest Trend - USA Today - 3/18/02 147

The Ugly Option - 4/10/02 148

Is the ProblemStock Options - or Stock Prices? - 4/24/02 149

Accounting for Options - 5/3/02 150

IRS Wants Tech Firms to Report Option Values in Affiliate Deals - 6/24/02 151

Fannie Mae Profit Slides 6.5%, Hurt by Changes in Accounting 152

The Options-Value Brain Teaser - 8/6/02 153

What the New Options Rules Mean - 8/7/02 155

OM to Record Options as Expense But Raises Question on Valuation - 8/7/02 . 157

Contrary Intel Won't Expense Options - 8/8/02 158

The Real Value of Options - 8/8/02 160

Rocky Markets Foil Firms' Bets Based on 'Risk Models' - 9/27/02 161

How EDS Rolled Dice - and Lost - 9/27/02 163

EDS Isn't Alone in Betting on a Rising Stock - 9/27/02 165

A Safe Bet-8/1/03 167

Options May Become Perk of the Past - 4/2/04 168

Intel Urged to Expense Options - 5/20/04 169