1% Trading Loss on $80 T by JP Morgan to Eviscerate Them!Submitted by Mark Twain on Sun, 07/03/2011 - 14:57
- Derivatives: A Capital Markets Gong Show For Whom The Bell Tolls
By Rob Kirby, July 2011.
... The world’s biggest derivatives player - J.P. Morgan - has “seemingly” NEVER, EVER made a bet even “1 % wrong” with their 80 Trillion derivatives book. The Morgue has a Market Cap of roughly $180 billion. A wrong bet of a mere 1% on their ‘book’ would translate to a loss of $800 billion dollars eviscerating their entire capital base more than four times over. The knock on effect from such an event would trigger multiple tsunamis reverberating through the global financial system. Sounds absurd, but it’s pure math.
Either J.P. Morgan NEVER makes a mistake or they get a pass if / when they do make a mistake. Back in early 2006, Business Week reported,
President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006,
... J.P. Morgan’s derivatives book constitutes national & international security... along with other large derivatives player are NECESSARILY excused from wrong way bets. The obscenely large derivatives books of J.P. Morgan and other select money center banks are being used to execute U.S. monetary policy and to achieve other arbitrary financial market outcomes. This has been occurring since at least the mid 1990’s and severely ramped-up in the mid 2000’s.
... B of A, Citibank, Goldman Sachs – all with derivatives books ranging from 44+ to 79+ Trillion [dollars] in size. Take note of the TOTAL derivatives for Commercial Banks at 243 Trillion (see linked article):
- Derivative books (in trillions)
- Derivative notions chart(in trillions, by user group
- Derivative charts on oil
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