24 September 2013
With an economic collapse potential at some point in the future,the dangers of the derivatives market pose a very real threat in the near future, over all else. This threat is not limited to the United States, but spans the global economy. One of the most highly leveraged financial institutions is Germany’s Deustche Bank. Their derivatives exposure is 96 times the value of their total assets. There is no way they could cover losses that large. However, many U.S. institutions are also highly leveraged and therefore at great risk. Consider the current derivatives exposure of some of the “too big to fail” financial institutions and ask yourself where are the regulators? They are as much to blame as the banks.
- Deutsche Bank – $55.6 trillion in derivatives exposure as of April 2013 backed by only $575 billion in assets. So their derivatives exposure is 96 times larger than their assets.
- JP Morgan – $72 trillion in derivatives exposure compared to only $2.3 trillion in total assets. Their derivatives exposure is 31 times larger than their assets.
- Goldman Sachs – $41 trillion in derivatives exposure compared to only $938 billion in total assets. Their derivatives exposure is 43 times larger than their assets.
- Citigroup Inc – $57 trillion in derivatives exposure compared to only $1.9 trillion in total assets. Their derivatives exposure is 30 times larger than their assets.
- Bank of America – $44 trillion in derivatives exposure compared to only $2.2 trillion in total assets. Their derivatives exposure is 20 times larger than their assets.
- Wells Fargo - $44 trillion in derivatives exposure compared to only $1.3 trillion in total assets. Their derivatives exposure is 33 times larger than their assets.
(Source: FDIC and SNL Financial for US institutions, Zerohedge.com for Deutsche Bank)
~ author unknown
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