Top 5 Banks Hold 95.7%, Or $221 Trillion, Of Outstanding Derivatives

WASP writes –

Every quarter the Office of the Currency Comptroller releases its report on Bank Derivative Activities, and every quarter we find that the Too Big To Fail get Too Bigger To Fail. To wit: in Q4 2011, of the total $230.8 trillion in US outstanding derivatives, the Top 5 banks (JPM, BofA, Morgan Stanley, Goldman and HSBC) accounted for 95.7% of all Derivatives. In some respects this is good news: in Q2, the Top 5 banks held 95.9% of the $250 trillion in derivatives.

Unfortunately it is also bad news, because $220 trillion is more than enough for the world to collapse in a daisy chained failure of bilateral netting (which not even all the central banks in the world can offset). What is the worst news, is that the just released report indicates that in addition to everything else, we have now hit peak delusion, as banks now report to the OCC that a record high 92.2% of gross credit exposure is “bilaterally netted.” While we won’t spend much time on this issue now, it is safe to say that bilateral netting is the biggest lie in modern finance (read How US Banks Are Lying About Their European Exposure; Or How Bilateral Netting Ends With A Bang, Not A Whimper for an explanation of this fraud which was exposed completely in the AIG collapse). And just to put this in global perspective, according to the BIS in the first half of 2011, global derivative gross exposure increased by $107 trillion to a record $707 trillion.

It will be quite interesting to get the full year report to see if this acceleration in gross exposure has increased. Because if it has, we will now know that in 2011 European banks were forced up to load up on several hundred trillion in mostly interest rate swap exposure. Which can only mean one thing: when and if central banks lose control of government bond curves, an rates start moving wider again, the global margin call will be unprecedented. Until then we can just delude ourselves that central planners have everything under control, have everything under control, have everything under control. ………….

The Tap Blog is a collective of like-minded researchers and writers who’ve joined forces to distribute information and voice opinions avoided by the world’s media.

One Response to “Top 5 Banks Hold 95.7%, Or $221 Trillion, Of Outstanding Derivatives”

  1. Scotty says:

    I’m feeling a bit sorry for this story, as no one has commented. Let me think of something to say…oh yes,

    All this money $XXtrillion was created out of thin air by the very institutions who then proceed to gamble with other financial institutions who have created money in just the same way.

    And taxpayers then have to borrow vast sums from these same institutions when the gambling goes wrong – which means deliberately crashed.

    Central banking – private corporations printing and then lending money to governments (citizens) at interest is the biggest fraud ever perpetrated. The citizenry of the entire world has been scammed. And now with the supposed accidental ‘crash’ of global banking in 2007, we are all in debt to these same corporations almost literally for ever!

    911, followed by the ‘War on Terror’ (War on Humanity), the unprovoked invasions of many nations, the 2007 financial crash – what have THEY got planned for us next? Sorry for being such a harbinger of doom, but I dread to think what the remainder of 2012 will bring. This ride ain’t over yet – and we can’t off !

    The occurrence of terrible events happening in the world is increasing, the growth seems to be exponential, raising towards a fever pitch, some kind of tipping point; maybe an event so terrible that it will allow those in power to push humanity in to some sort of New Age, where nothing will be the same as it was before. I believe that this is the true purpose of wars and revolutions – as nations, their populations and values are always dramatically altered, as a result.

    As for myself, I’m a Christian. That Satanic powers will take over completely was predicted by Jesus and is prophesied and well detailed in the Holy Bible.

    I do not envy those with no knowledge or understanding of Christian doctrine. I was ignorant, a non-believer (and a devout Darwinist !) until about a year ago. The journey of becoming a Christian has been incredible. Before, I thought I knew truth. Now I know that there is very little truth to be had in this world, Satan’s world. The Holy Bible is the only truth I’ve ever come across. Reading some verses is like being slapped in the face! It says in the front of my ESV Holy Bible, ‘This is a supernatural book’, which is completely correct.

    Some people I know think I’ve gone a slightly mad ! What’s happened is that I’ve been exposed to a higher, fundamental truth about existence, life, humanity, etc that reveals this world as it really is and identifies, very clearly, the dark Satanic forces that really are running the whole show.

    Since ‘The Enlightenment’ (a contradiction in terms), TPTB have, very deliberately, been turning people away from, and now fully against, Christianity. Why do you think that might be?

    I would like to suggest that you throw away your TV, don’t bother with newspapers anymore and go and buy a ESV (English Standard Version) Bible and start to read. Start with the New Testament, the Book of Matthew.

    Most people are, at present, fully immersed in ‘the world’ (can’t think of another way to write that!) So, for a time, move away from the world; read the Bible and then look back at the world with fresh eyes, from a different perspective. As Jesus said, ‘you shall know the Truth, and the Truth will make you free.’ John 8:32


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