Financial Times FT.com

Risks of derivatives 'not fully evaluated'

By Saskia Scholtes andRichard Beales in New York

Published: March 26 2007 03:00 | Last updated: March 26 2007 03:00

Fewer than half of global financial institutions account sufficiently for complex financial and commodity exposures in assessing the riskiness of their holdings, according to a survey by Deloitte.

The results suggest that much of the industry may "lag behind the explosive growth of credit derivatives and their attendant risks", the firm said. Risks in energy and other commodity derivatives were also not fully evaluated by most institutions, the survey found.

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