Buffett said “derivatives are financial weapons of mass destruction” and mass destruction is exactly what happened.

Here’s the kicker: the derivatives exposures of the national US banks are going up every quarter. GS derivatives exposure is 340 times assets. JPM derivatives exposure is 48 times assets. BAC derivatives exposure is 27 times assets. That’s just the derivatives exposures. That doesn’t even include the exposures in the other asset classes. Banks should go back to basics. Take deposits, make loans. Facilitate production and trade. All other financial activities should be moved out of the banking system to reduce the unbelievable risk levels that exist right now.

From Officer of the Controller of the Currency, the national banks’ regulator, Q2 2009.

- bluesky

Related Posts:

• According to the 2rd qtr. OCC Derivative Report, the 5 largest holders of derivatives (commercial banks) hold 97% of all derivatives.
• It’s Going To Implode: Buy Physical Gold - NOW
• Duration Gap
• This just blows my mind! The table below is a list of the total derivative holdings of the top 25 holding companies as reported by the OCC (in $TRILLIONS).
• The whole banking system is fraudulent.

Leave a comment