Photographer: Michael Nagle/Bloomberg

Professor to Wall Street: You're Doing Swaps Accounting Wrong

  • Banks use a broken method for derivative trades, paper argues
  • `If you follow the math you can’t reach any other conclusion'

The world’s largest banks are incorrectly accounting for their swaps trades, locking up money that could otherwise be paid out as dividends to their shareholders, according to a bold new academic paper.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.