How The European Rot Entered Wall Street

"It looks pretty sure that Germany won't play along. And it's hard to see from where I'm sitting how the intricacies are lined up exactly, but seeing as Morgan Stanley has $56 trillion in derivatives outstanding, much of which will of necessity be on European sovereign and bank debt, and knowing that JPMorgan and BofA have even larger derivatives portfolio‘s, that 10.47% Morgan Stanley loss on Friday looks like a harbinger of things to come. "