Saturday, May 8, 2010

The derivatives bomb--and silver suppression

In the latest Office of the Comptroller of the Currency quarterly report , part of the US Treasury Department, the following exists:

The notional value of derivatives held by U.S. commercial banks increased $8.5 trillion in the fourth quarter, or 4.2%, to $212.8 trillion.

Five large commercial banks represent 97% of the total banking industry notional amounts and 88% of industry net current credit exposure.

In Table 1 on page 23, the five biggest banks: JPMorgan Chase, Bank of America, Goldman Sachs, Citibank, and Wells Fargo have total combined assets of $5,464,143,000,000, or almost $5.5 trillion. Yet, the notional value of their derivative contracts is $206,182,123,000,000, or over $206 trillion.

Financial reform? Too big to fail? Our shiftless government and banking regulators haven't learned a thing, and therefore, future financial crises will be unavoidable.

With silver, JPMorgan and HSBC hold derivatives with a notional value representing 106% of annual global production. I'd like to see exactly where they store all this silver, and exactly when these banks got into the mining business.

No comments:

Post a Comment