12 votes

Big Bank Theory: $250 Trillion Tender. JPM BoA GS MS. Bang!

Bet of the Century! Big Bank Theory! Tender ready to blow!

Five Banks Account For 96% Of The $250 Trillion In Outstanding US Derivative Exposure;

US Office Of the Currency Comptroller

The latest quarterly OCC report... is out and as usual it presents in a crisp, clear and very much glaring format the fact that the top 4 banks in the US now account for a massively disproportionate amount of the derivative risk in the financial system. Specifically, of the $250 trillion in gross notional amount of derivative contracts outstanding (consisting of Interest Rate, FX, Equity Contracts, Commodity and CDS) among the Top 25 commercial banks (a number that swells to $333 trillion when looking at the Top 25 Bank Holding Companies), a mere 5 banks (and really 4) account for 95.9% of all derivative exposure. The top 4 banks:

  1. JPM with $78.1 trillion in exposure
  2. Citi with $56 trillion
  3. Bank of America with $53 trillion
  4. Goldman with $48 trillion

They account for 94.4% of total exposure (US). As historically has been the case, the bulk of consolidated exposure is in Interest Rate swaps ($204.6 trillion), followed by FX $26.5TR, CDS $15.2 trillion, and Equity and Commodity $1.6 and $1.4 trillion, respectively. And that's your definition of Too Big To Fail right there: the biggest banks are not only getting bigger, but their risk exposure is now at a new all time high and up $5.3 trillion from Q1 as they have to risk ever more in the derivatives market to generate that incremental penny of return.

Is Morgan Stanley Sitting On An FX Derivative Time Bomb?

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nm

"In the end, more than they wanted freedom, they wanted security. They wanted a comfortable life, and they lost it all -- security, comfort, and freedom. When ... the freedom they wished for was freedom from responsibility, then Athens ceased to be free."

WANTED! JP Morgan. Insanely Perfect Trading 9 months straight.

WANTED! JP Morgan. Insanely Perfect Trading 9 months straight. 02/15/2011. Submitted humbly by Mark Twain, DailyPaul member.

2012. Update: JP still wanted after all these years. Still trading with abandon. Converting other people's money unto themselves.

JP Morgan Fairy Tale: In their own words... which, like your money, they own.

.... Links to links ... Your paper-money at peril. Save @ your own risk. A derivative story... A fable.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Please break down for the average voter's comprehension

like me :-)

Here is a new cartoon version that presents a $27 Trillion start

We each must start somewhere untangling this infinite make-believe "legal tender" folly.
http://www.seekingalpha.com/article/301260-bank-of-america-d...

When trillionaires lose trillions, does it make a sound in the woods?

On Wall Street?

And what about that bear in the woods?

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

The seeds of destruction were sowed in 1913

My, how for they've grown out of control. It's a beanstalk to heaven.

More like hell.

.

Disregard government. Acquire liberty.

Building a stairway to heaven...

Damns one to hell.

The root of all evil is the express way route to Hell.

A 100 year old vine has deep roots.

JP & the Boyz celebrate losing billions by gambling trillions.

The Fed: Loaning you blind, since 1913.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Bank Gambling bets = $250 Trillion. Broke banks bet $250 T?

Alarm bells are ringing! Banks are betting in extreme excess.

2007 - 2011. Banks are hard pressed to show improvement over direr straights. Bailouts, QEs, slathers of cash discounts... Never enough.

So, just where did $250 Trillion come from?

Picture this: 5 Big Bang Bank leaders go to the Dakota Territories... They pay an Indian guide to lead them by horseback up to the base of Mount Rushmore. Before the guide can dismount to show them around, those 5 bankers lay odds on, "Who has more rocks in their head?"

The bankers invite the Indian & others nearby to participate in their trillion dollar betting.

The Indian just stares in disbelief. Other folk take scenic pictures & draw landscape sketches. The bankers are ignored. Will there be fines for littering the landscape with all their bets?

In conclusion, who will be left to clean up this mess, after the next big bang?

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Indeed

'Houston we have a problem'

No wonder the savers are losing vs. the speculators.

I think they are looking at more than a brush cut. ;)

donvino

Are those listed Federal Reserve Members?

IIRC the OCC is charged by law to record Reserve membership.

Free includes debt-free!

Much worst. Owners of the right to create National Debt! Owner

Difficult to confirm how bad it is. Most measure of banks use the very measure they create out-of-thin-air. A dozen or so owners are known... Difficult to confirm. The percent share of the Fed is a tightly guarded secret. As you know, the US Treasury certainly knows who cashes their payments. It is a very convoluted maze hiding actual owners from the public purview.

Federal Reserve Bank member lists are common. US interstate banks are members (no exceptions known to me). Most large state banks are members. Other financial institutions as they become large, seek membership. Membership has its privileges.

Easy to query membership. Tough to query ownership.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

That is a big group of numbers

This thing is coming down.

This makes me so angry. They deserve to fail.

I want them to FAIL, completely.

Ann in Florida

US Banks failed. Most by 1934. Utterly & completely by 1971.

We are living in a make-believe "legal thender" tenderizing combine.

Pick your point of reference:

Please be thankful for what you learn. Troubling as life may be, folks have their suspicions all their live long day.

Something good may happen when you you least suspect it.

Children know this to be true. Wise men oft remind themselves.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Can someone put this into

Can someone put this into concise Laymen's terms? Besides "We're screwed".

1942. Simple, timeless dialogue from Casablanca.

Scene opens with a scuffle at Rick’s Café entrance. German Central Banker refused entry. 2/2011 - Annotated by Mark Twain

Take in some theater that suits you. If young children come along...
♖All the Kings Horses v Golden Humpty Dumpty ♖ 8/2011 - Annotated by Mark Twain

News is mostly bad or worse theater. Please take in theater that suits you. We live in a make-believe economy. Over the centuries, most do. Ron Paul seeks to correct some of it. It is his quest. His possible quest. Reminds me of Don Quixote's valor. Quixote fought the Wind-Mills of his time (concentrated power).

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

.

.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

It means the real bubble is astronomical

Thus, unmentionable. Just speaking of it could make it pop, because it's based upon a foundation of people not knowing it exists.

Does a tillion come before or after

a brillion. I mean I know what a co-tillion is ... I think, but there's a lot I don't know.

New Hampshire and Ecuador.

Bailout...

Bailout these bastards and they'll incite a civil war. The people will flat out rise up.

"It does not take a majority to prevail but rather an irate, tireless minority keen on setting brushfires of freedom in the minds of men."

--Samuel Adams

Look at the chart - top 5 banks compared to all others:

http://advisoranalyst.com/glablog/wp-content/uploads/HLIC/9a...

It's a much larger disaster than most everyone realizes.

Mark Twain, I think you should make this chart the focal point

People like pictures. More visuals, less bold text.

Ask to have the image embedded at top.

Here is a condensed version:
http://img853.imageshack.us/img853/9154/derivitives.gif

$250 Trillion gambling casinos should not exist for big banks!

Agree. I rarely ask DailyPaul to embed graphics. Wish we had more privilege to do this ourselves. Per your request, I will ask.

It is very important for folks to see that the amount of casino gambling by big banks dwarfs any supposed value some have for them.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

reedr3v's picture

These parasites along with their federal enabler

are bleeding our economy dry.

Bloody dry is it now? No respect for me hard working pirates?!

Mate, ye be a seditious Scot?! Thar be only ye economy bleeding? By jitney! Posting dispatch directly to Her Majesty, the Queen.

'ill set yer straight! Weigh anchor boys! Last stanza of "God Save Our Queen"

    6. Lord grant that Marshal Wade
    May by thy mighty aid
    Victory bring.
    May he sedition hush,
    And like a torrent rush,
    Rebellious Scots to crush.
    God save the King!

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Federal Reserve Act, circa MIMXIII, Page I, sentence I. Elastic!

(Preamble to US monetary destruction)

"An Act To provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes."

Complete & utter monetary destruction. Elastic! Derivative of the Bank of England Charter, 1694. Also see Bank of USA I & II.

The Fed: Flooding our land with liquidity... Elastic liquidity, since 1913.

[Victrolas: "God Save Our Queen" 2 minute.]

First publicly performed in London, 1745
(Beware! Last stanza: Rebellious Scots to crush.)
God save the King!)

    1. God save our gracious Queen,
    Long live our noble Queen,
    God save the Queen!
    Send her victorious,
    Happy and glorious,
    Long to reign over us;
    God save the Queen!

    2. O Lord our God arise,
    Scatter her enemies
    And make them fall;
    Confound their politics,
    Frustrate their knavish tricks,
    On Thee our hopes we fix,
    God save us all!

    3. Thy choicest gifts in store
    On her be pleased to pour;
    Long may she reign;
    May she defend our laws,
    And ever give us cause
    To sing with heart and voice,
    God save the Queen!

    4. Not in this land alone,
    But be God's mercies known,
    From shore to shore!
    Lord make the nations see,
    That men should brothers be,
    And form one family,
    The wide world over.

    5. From every latent foe,
    From the assassins blow,
    God save the Queen!
    O'er her thine arm extend,
    For Britain's sake defend,
    Our mother, prince, and friend,
    God save the Queen!

    6. Lord grant that Marshal Wade
    May by thy mighty aid
    Victory bring.
    May he sedition hush,
    And like a torrent rush,
    Rebellious Scots to crush.
    God save the King!

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul