Roger M. asked

⚖️  Law

If I make a derivative bet with a bank based on the price movement of an underlying stock and they lose, did they lose any money? Specifically, if they take the money out of other client’s accounts to pay me, and I then deposit that money back into a bank account with them, wouldn’t they still have the same amount of money to lend and therefore not actually lose anything?

April 25th, 2023

Glenn C. answered

When a bank loses a derivative bet, it suffers a financial loss. This loss is not taken from other c...

April 25th, 2023

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