Italy had almost €90 billion of uncollateralised derivatives trades with a group of 14 European banks at the end of last year, European Union stress tests have revealed, leaving the banks to fund margin calls on as much as €13.8 billion of exposure. BNP Paribas alone had net derivatives exposure of €3.4 billion to Italy.
That is a potential source of systemic risk, critics claim, and is prompting calls for more sovereign counterparties to start posting collateral.
"We are talking about massive f
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