ATLANTA The U.S. market for derivatives has slowed since Procter & Gamble Co. reported a big loss on interest rate swaps earlier this year, says NationsBank Corp, chief executive Hugh McColl.

"The derivatives market is O.K. Activity has slowed down some, and I think it will adjust itself, which is to say that rational behavior - market forces - is all that's needed," he told reporters at the Atlanta Chamber of Commerce last week.

"After Procter & Gamble, I think every CEO in America called their treasurer and said, 'What are you doing with derivatives?' And I think that had a great chilling effect."

Mr. McColl said there's still demand for interest rate swaps, which NationsBank provides for corporate clients. But he said the market for more exotic derivative products has not fared as well.

"The market for exotics, which we were never in, I believe is dead for the moment," he said.

"It's very straightforward to me.' If somebody sells you something that's totally manufactured, it shouldn't surprise anybody that there's no market for it when you want to sell it."

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