Bankers Trust Swaps
Lecture no. 57 from the course: Crashes and Crises: Lessons from a History of Financial Disasters
Taught by Professor Connel Fullenkamp | 04 min | Categories: The Great Courses Plus Online Economics & Finance Courses
Learn the ropes for interest rate swaps, the most popular financial derivative in the world. Then, see how a complex form of swaps, brokered by Bankers Trust in the early 1990s, led to huge losses for some famous corporations and an ensuing round of bitter lawsuits. The case holds lessons for anyone investing in financial instruments that they don’t fully understand.