CITI and Morgan and Enron

Citigroup hedged its Enron exposure through the use of a derivative instrument called credit-linked notes, according to a story in today's New York Times. The story raises a lot more questions than it answers, to say the least. Kausfiles explains.

Meanwhile, the buzz in New York is that JPMorganChase is reeling from the Enron debacle. John Crudele wrote about the bank's derivative exposure in yesterday's New York Post. Today, the Economist gives a good overview of the bigger, uglier picture. Expect the New York Times to waddle in here any day now.