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View Diary: If the Euro fails. (282 comments)

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  •  Actually, its the OTHER usual suspects (8+ / 0-)

    From Zerohedgefund:

    The top 4 banks: JPM with $78.1 trillion in exposure, Citi with $56 trillion, Bank of America with $53 trillion and Goldman with $48 trillion, account for 94.4% of total (derivatives)exposure...

    That's related to the $250T in "US exposure" derivatives (out of about $707T worldwide.  You can argue that quite a bit of that $707T is in cross-bets between the same parties - ie they would cancel out and/or can be unwound, if you will. That it is notional value versus "real" or gross market value.

    Of interest to me is that at the end of 2010 the total derivates stood at $600T. By mid 2011, it had gone up to $707T.  Yep, these asshole "usual suspects" have written over $100T in new derivatives in the first half of this year.  Why?  Mostly to keep their bonuses going, and keep propping up the house of cards that keeps them from going insolvent.  link:

    Christ, bad enough we didn't learn any lessons (or pass any laws, or prosecute anyone from Wall Street)) from the 2008 collapse. No, they are still writing up more of these unregulated, under/non-capitalized Gordian-knot complexity financial instruments.    

    And the American public goes shopping.

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