I’M SURE THERE IS NOTHING TO WORRY ABOUT

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anon a moos
anon a moos

maff is hard

A cruel accountant
A cruel accountant

It won’t be the banks that will blow up the economy and the markets this time.

“History doesn’t repeat itself but it rhymes “.

A cruel accountant
A cruel accountant

And I have cash on the sidelines waiting for bargains.

Anonymous
Anonymous

I hope that is not in “their” fiat shitpaper.

It will be worthless.

Crawfisher
Crawfisher

I suspect the banks listed are trading derivatives amongst themselves. Can’t wait to see what happens when the music stops.

ken31
ken31

Nothing. You will just have one bank left. Maybe it will coincide with the Antichrist making one world religion.

lager
lager

A notable list of skeery risk exposure for the major banks.

Be nice to see a similar list of Credit Unions that are at risk vs. healthy and strong.

MrLiberty
MrLiberty

At first you think billions, then you realize that there are three more zeros, and we’re actually talking about TRILLIONS for the top 8.

Dan
Dan

U.S. GDP is a little over $23 trillion. How can just one bank have over $53 trillion in just contracts? Is this like those sliced and diced subprime MBSs that somehow became AAA in the process? That is, is most of this just BS designed to get big commissions and bonuses by baffling with bullshit?

Anonymous
Anonymous

Yes.

m
m

Who the fuck cares about derivatives?
One rule change by the Fed or any other ‘agencies’, and the banks can hold their derivatives “at par”, up to maturity or expiration. Problem solved.

Klingon
Klingon

$ 2.3 Trillion missing from Pentagon said Rumsfeld on 9 / 10 / 2001. Next day 9-11 all was forgotten.

Now , think bigger.

VOWG
VOWG

This is as big as it gets. It means that nothing has any value.

Anonymous
Anonymous

Yeah, the CIA was about to b forced 2declare bankruptcy on 9/11 &it was a planned demolition(on the buildings). Architecturally, highrise buildings r built (engineering code) to NOT-PANCAKE.

Walter
Walter

One of the banks I use is on the list. I wonder how fully the derivatives are interlarded through the system, like, does Umpquah bank participate? Does it matter? Is it just a digital bla bla that maintains power and control on both ends-debtor and lender? Will it all get written off in the coming world war?

VOWG
VOWG

I said this years ago and will say it again, derivatives were/are a bet, backed by nothing, you might as well have gone to Vegas and flushed the money. FUCKING PROVE ME WRONG.

Harrington Richardson
Harrington Richardson

It has never mattered for you or me. They always keep the profit and charge the depositors or insurance or government(also us) for the losses. The evil fuque David Rockefeller said it out loud decades back. They privatize the profit and socialize the losses.

Anonymous
Anonymous

That last sentence is Communism.

Anthony Aaron
Anthony Aaron

Umpqua is #58 on the list at $8,143,804,000

The list is here …

https://www.usbanklocations.com/bank-rank/derivatives.html

mark
mark

This is old news 2012 – can’t imagine how much worse the truth really is…Get out of Babylon!

WHAT COMES AFTER A TRILLON?

A few weeks back news broke that a portion of the derivatives unit at JP Morgan had made a major mistake on a trade that essentially blew up in their face. The trade (so far based on what we know) has cost JP Morgan $2 billion in losses. Jamie Dimon, the CEO of the bank, was forced to hold an emergency conference call after hours with investors to discuss the losses.

Derivatives have been famously called by Warren Buffett weapons of mass destruction. Their size has grown so enormous in the financial market that no political leader even dares mention the topic of their regulation. The derivatives market can be thought of as an enormous atomic bomb resting in the ocean with the power to blow up the entire planet. Think that is an exaggeration?

The following chart shows the size of the derivatives market (red line) compared to other major asset classes around the world. The spec next to the red line in green is the entire global annual GDP. The yellow line is the sum total value of the entire global stock market.

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Estimates show that the derivatives market is now somewhere between 700 trillion and 1 quadrillion dollars in size. It grows rapidly every year, like a contagious plague spreading through the financial system.

JP Morgan is by far the largest participant in the derivatives market. They are approaching close to $100 trillion in derivatives just on their own. The following chart shows their total holdings (red line) next to the assets they have backing potential losses (light green line next to it).

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Why does this matter? If anything should happen to these precious banks or their balance sheet we now know that the government (taxpayers) stand behind them 100%. They have become wards of the state who collect endless millions in bonus payouts when derivatives contracts go well and turn to the Federal Reserve and tax payers when they go bad.

This week the Senate banking committee held a hearing where they wished to investigate this derivatives “thing” they have heard about on the news. Who has paid for the Senators to receive their seat on the senate?

JP Morgan and Jamie Dimon

http://www.ftense.com/2012_06_10_archive.html

Watson the REGULATORY ARBITRAGE game is afoot!

WALL STREET BANKS ARE DANGEROUSLY EVADING U.S. DERIVATIVES RULES BY MAKING TRADES AT FOREIGN SUBSIDIARIES

On May 30, with little mainstream media attention, four European academics published a report on how some of the largest Wall Street banks (all of whom received massive amounts of secret Federal Reserve bailout money during the 2007 to 2010 financial crash) were shamelessly gaming the system again.

Rather than complying with the derivatives regulations imposed under the Dodd-Frank financial reform legislation of 2010, the Wall Street mega banks had simply moved much of their interest rate derivatives trading to their foreign subsidiaries that fall outside of U.S. regulatory reach. This is known as regulatory arbitrage: seeking the most lightly regulated jurisdiction to ply your dangerous trading activity. (Think JPMorgan’s London Whale fiasco.)

The European academics are Pauline Gandré, Mike Mariathasan, Ouarda Merrouche and Steven Ongena. The paper is titled: “Regulatory Arbitrage and the G20’s Global Derivatives Market Reform.”
The researchers discovered that “US banks reduced their [derivative] holdings at home, while increasing them in Australia, Japan, the UK, Brazil, China, Hong Kong, and Mexico.”

The poster child for becoming a financial basket case in 2008, Citigroup, was called out particularly in the report. Citigroup had gone from no interest rate derivatives at its foreign subsidiaries in the fourth quarter of 2010 to over 60 percent by the fourth quarter of 2015. JPMorgan Chase went from about zero percent to more than 40 percent from the fourth quarter of 2010 to the fourth quarter of 2015. Both Goldman Sachs and Morgan Stanley more than doubled their foreign subsidiary exposure to derivatives during the same time frame.

During the last financial crisis, Citigroup received the largest bailout in global banking history, grabbing $45 billion in capital from the U.S. Treasury; over $300 billion in asset guarantees from the federal government; the Federal Deposit Insurance Corporation (FDIC) guaranteed $5.75 billion of its senior unsecured debt and $26 billion of its commercial paper and interbank deposits; and the Federal Reserve secretly made a cumulative $2.5 trillion in below market interest rate loans to Citigroup from 2007 through at least the middle of 2010, according to an audit by the Government Accountability Office (GAO).

According to documents released by the Financial Crisis Inquiry Commission (FCIC), at the time of Lehman Brothers’ bankruptcy on September 15, 2008, it had more than 900,000 derivative contracts outstanding and had used the largest banks on Wall Street as its counterparties to many of these trades. The FCIC data shows that Lehman had more than 53,000 derivative contracts with JPMorgan Chase; more than 40,000 with Morgan Stanley; over 24,000 with Citigroup’s Citibank; over 23,000 with Bank of America; and almost 19,000 with Goldman Sachs. These are the same Wall Street mega banks shown on the chart above that are now evading Dodd-Frank derivative rules by moving large amounts of their opaque derivative trades to their foreign subsidiaries.

Another chart from the Financial Crisis Inquiry Commission that will take your breath away shows the derivatives casino that Goldman Sachs had become by June of 2008. The figures are simply staggering. In the most dangerous form of derivative, credit derivatives, Goldman Sachs had $5.1 trillion notional (face amount) exposure. And almost all of its counterparties were being propped up by the Federal Reserve’s secret revolving loans. In the case of Merrill Lynch and Morgan Stanley, where Goldman had more than $600 billion exposure to each counterparty, the Fed made $2 trillion in secret, cumulative, below-market rate loans to each firm, according to the GAO audit.

Because of the pivotal role that derivatives played in the Wall Street collapse of 2008, which spawned millions of foreclosures and job losses across the U.S., the Dodd-Frank financial reform legislation was supposed to prevent insured depository banks from holding these dangerous derivatives. One derivatives reform measure was known as the “push out rule,” where derivatives would be pushed out of the insured bank to a different part of the bank holding company that could be wound down without taxpayer support if the bank became insolvent. But before that rule ever took effect, Citigroup engineered its repeal.

Another measure in the Dodd-Frank legislation required that derivatives move from over-the-counter contracts between two private counterparties to a central clearing facility in order to remove counterparty default risk from causing systemic contagion in the financial system as it did in 2008. It’s been more than 10 years since Dodd-Frank was signed into law. By now, the vast majority of derivative trades should be centrally-cleared. Instead, this is what the Office of the Comptroller of the Currency reports as of March 31, 2020:

“In the first quarter of 2020, 42.3 percent of banks’ derivative holdings were centrally cleared. From a market factor perspective, 52.9 percent of interest rate derivative contracts’ notional amounts outstanding were centrally cleared, while very little of the FX [foreign exchange] derivative market was centrally cleared. The bank-held credit derivative market remained largely uncleared, as 34.4 percent of credit derivative transactions were centrally cleared during the first quarter of 2020.”

The mega Wall Street banks have been getting minor slaps on the wrist and insignificant fines over their derivative violations under the Trump administration. On September 25, 2017, the Commodity Futures Trading Commission (CFTC) fined Citigroup $550,000 for failing to properly report derivative trades. One of the violations was defined as follows: “…Citi violated its reporting obligations by reporting ‘Name Withheld’ as the counterparty identifier for tens of thousands of swaps with counterparties in certain foreign jurisdictions.”

In October 2017, for the second time in two years, the Financial Conduct Authority in the U.K. fined Bank of America’s Merrill Lynch for failure to properly report its derivative trades. The action resulted in a fine of £34,524,000 over Merrill’s failure “to report 68.5 million exchange traded derivative transactions between 12 February 2014 and 6 February 2016.” Exactly how does one forget to report 68.5 million transactions? Forgive us for thinking it’s a feature, not a bug.

A decade after the worst collapse of iconic Wall Street institutions in history and the largest Federal Reserve bank bailouts in global banking history, there is very little to show in the way of meaningful reform. Without the restoration of the Glass-Steagall Act, Wall Street’s wealth transfer system, that plunders the 99 percent in service to the 1 percent, will continue humming along.

Wall Street Banks Are Dangerously Evading U.S. Derivatives Rules by Making Trades at Foreign Subsidiaries

Harrington Richardson
Harrington Richardson

Good stuff. I would love to say we should just say “get ripped” over your “foreign” losses, but since the FED has made itself the world’s banker ( where the F is THAT in their charter?) it would undoubtedly make desperate efforts to make whole all the filthy bastards who should and perhaps will some day decorate lamp posts.

Mary Christine

Hey Mark, did you happen to catch this one from last week? She talked about derivatives saying they are doing something called compression which makes the amount they hold look smaller than it really is.

mark
mark

Mary,

I have been watching her off and on for years…but had not seen this one just finished watching…sent it to some family and friends who I have also been warning for years.

It was great, she was on fire!

She can explain the techno babble they use to confuse the Normies.

Card802
Card802

Reading this and listening to a podcast with Egon von Greyerz, about world wide debt and derivatives.

Purchasing power since 1971 has dropped the “value” of the $US to approximately.2c

Once the debt implodes, in coming years…

Basically higher taxes and CBDC.

For a preview on expanded taxes and new taxes, review what this administration is pushing for.
Astounding.

VOWG
VOWG

Way too many stupid and greedy ass holes on the planet. Give the people exactly what the derivatives are worth , NOTHING.

VOWG
VOWG

There are more derivatives out there than actual wealth on the planet. That said, derivatives are not backed by anything. the person who bought the derivative loses, no one else. If banks actually bought them, we are fucked.

mark
mark

BACK TO BASICS WITH EXTER/S PRYAMID

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By Bill Holter, Miles Franklin:

It is obviously time to go back to basics. I say this based on the emails we’ve received this week which ranged from tears to tirades regarding gold and silver price action. While speaking with a friend a few months back (during a period of price weakness), I said tongue in cheek that I should write an article titled “We are not your psychoanalysts”! The amount of fear was and is astonishing to me. We have tried to demonstrate with math, logic and history what the ending is. The problem for most is, even if the ending is understood they “want it and they want it now”!

So, in an effort to help the panicked or despondent, let’s go back to the very basics. Below is an image of John Exter’s pyramid;

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You will notice the pyramid is inverted. 100 years ago, this pyramid was inverted but obviously much smaller altogether. What has happened over the last 100+ years is that more and more “derivatives” of all sorts have been created. Also, “promises” of all sorts have been made. When I say promises, we are talking about pension plans, health aid, welfare etc. that promise current and future benefits. Basically, via the use of credit (and derivatives since the 1970’s), asset values have been continually inflated and re inflated. Without credit and without derivatives, valuations of most ALL assets would be only tiny fractions of what they are today.

The size and scope of the pyramid has gotten larger and larger in relation to the base (gold and silver). Notice that as you go higher and higher up the pyramid, the assets carry more and more risk. It is the high risk assets that now make up a larger and larger majority of all assets. Thus, “systemic” risk has continually grown over the years as the highest risk assets are now the vast majority of what society considers “assets”. As a side note, everything above gold on the pyramid is “derived” from money (gold), the further away from money …the lesser connection to (think money) value.

Looking at the pyramid, the vast majority of assets are “promises” to pay or perform something in the future. Gold and silver are different, they don’t promise anything at all in the future. Rather, theirs is simply a past promise. Gold and silver only promise that capital, labor and equipment WAS USED in the past to create it. This in a nutshell is what gold is all about. It already is pure money and the capital was already expended to create it. It does not need to promise anything in the future (ie. pay interest) to have value today. For example, what value would any debt security have if it promised to never pay any interest? (Yes I know, we almost live in that world now with some debt trading at negative yields but that only proves the point of insanity in our society today!).

Look around you, everyone and everything is in debt or has value created by debt. Sovereign treasuries all over the world now have debt to GDP levels that 30 years ago were signposts to being banana republics (and they are the ones who issue what the public considers money?). Pensions are woefully underfunded even with asset values at all time (and unsustainable) highs. Credit is now regularly offered with little to no proof of ability to pay back. Loans have had maturities extended so borrowers could “fit” into the amounts borrowed. …And on the other side, we have seen lenders/investors accept ridiculously low rates from deadbeats because “they needed yield”. Don’t ever forget, the vast majority of what the world now considers “assets”, require the performance of a promise(s) to perform. When the dust settles, this statement will be wholly obvious to all!

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Harrington Richardson
Harrington Richardson

What could go wrong? The top three have the equivalent of about ten years of US GDP more or less.
Would we cover house damages for a guy who keeps a wading pool filled with gasoline near his fireplace? This is an equivalent situation. These assholes should not get a dime from us for any of their greedy miscalculations.

mark
mark

This is a fascinating interview!

THE ONLY HONEST BANKER: JOHN EXTER
9,846 views Jun 1, 2018

According to Wikipedia, John Exter was an American economist, member of the Board of Governors of the United States Federal Reserve System, and founder of the Central Bank of Sri Lanka. He is also known for creating Exter’s Pyramid (see graphic below).

According to his son-in-law Barry Downs, who I had the pleasure of interviewing for this podcast, John Exter was “the only honest central banker.” What the Fed has done to their balance sheet in pushing it at one point to $4.5 Trillion through quantitative easing and buying up of assets during the financial crisis of 2008/2009 is a new frontier for the financial world and most don’t understand what it really means. Most can’t see a credit deflationary contraction on the horizon, and they’ll wake one morning and see much of their wealth was destroyed and possibly in quick fashion. What started this new era of the Fed and monetary intervention was the 2008/2009 financial crisis. What’s coming next is going to be monumental. But it takes someone who has lived through past monetary crisis to put it all into perspective.

That’s what you’ll hear with the interview of Barry Downs and his comments about John Exter. I really don’t use fear in my articles, but trade both sides and follow trends, however, after interviewing Downs, I may start doing it more and more. While this may be the summer of fun for the stock market as we move to a new all-time high, the smart money will be exiting before we see trouble later this year. But there will be some places to put your money that we discuss thoroughly. That asset is gold (and silver). It’s the only asset that sits outside the risk pyramid below. Money will flow down the pyramid during the crisis, looking for a bid. But as Downs puts it, for some assets there may be no bid. And eventually, when many realize the Fed is losing control of the situation, you’ll be hard pressed to find anyone selling their gold too.

I did ask Barry Downs what he thought the price of gold would get to. While the title of this article gives it away, you have to put his estimate into perspective in what a real monetary crisis would look like. And you have to view gold as insurance for this crisis because over time, it maintains its purchasing power.

Anonymous
Anonymous

If something is too complex and convoluted for the average investor to understand , it could be a con game. A swindle. But greed blinds many , so they get burned.

Clues about what’s ahead come in a variety of ways. Look at what some ” players ” are telling us.

References to Magnum Opus or ” The Great Work ” …. great reset ?

SINISTER SITES
The Occult Symbolism Found on the Bank of America Murals

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vigilantcitizen.com/sinistersites/analysis-of-the-occult-symbols-found-on-the-bank-of-america-murals/

boron
boron

I’d like to see another column in the table:
assets.

Anthony Aaron
Anthony Aaron

What assets?

Who said anything about assets?

They taught us in evidence class in law school: never ask a question whose answer you don’t want to hear …

ken31
ken31

I remember when I was younger, Wells Fargo bought my local bank and then stole all my money and ruined my life.

The Central Scrutinizer
The Central Scrutinizer

Wells Fargo, Citibank, and 5th 3rd Bank… all shit.

Glock-N-Load

$53 Trillion?

Anthony Aaron
Anthony Aaron

The list of fall bank derivatives at 12.31.22 is here … only the first 1125 have any exposure …

https://www.usbanklocations.com/bank-rank/derivatives.html

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