JP Morgan Chase And Its Derivative Position Poses Serious Risk To World Financial Stability
Monday, 27. October 2008, 01:38:10
It is noteworthy that JP Morgan is a dealer for the US Federal Reserve/US Treasury, and it is troubling that it is responsible for over half of all derivatives, as revealed by Stephen Lendman who relates: "The derivatives problem is especially ominous. At extreme levels and very dangerous. An estimated $180 trillion held by commercial banks alone meaning those with most of it are technically insolvent. JP Morgan Chase holds half of it. An "unprecedented concentration of risk in modern US history." The large counterparty default risk in this market isn't understood. Currently the Office of the Comptroller of the Currency (OCC) reports credit derivatives exposure (or risk of trading partner default) at $465 billion. Up 159% from 2007. Failure to address the derivatives time bomb "leaves a gaping hole through which financial panic can spread."
In addition, beyond the above lowball figure, no estimates are available of derivatives default amounts or forecasts of more likely in a continuing downturn.
In sum, a monumental problem. Too big to ignore, but precisely what Congress is doing. At enormous risk to the economy, businesses, households, the American way of life, and the nation as the world's economic superpower. Plus the effect on world economies and people everywhere".
One wonders to what extent investment banker, Nomura Holding has in derivatives and if intends to pursue action agains JP Morgan. The Nikkei in article 'Nomura Continues Global Quest As Last Investment Bank' reports: "As Nomura, MMR, ramps up its bid to become a major player in global investment banking, about 8,000 former Lehman Brothers employees, are on board, ready to contribute their M&A and underwriting expertise to the effort".
If one has wealth, it is best to put it far, far away from the current financial system, safe and sound in a guarded vault, like BullionVault and GoldMoney, with an account personally at streetTracks Gold Trust, and in physical possession of gold coins.
Related Charts
The Yahoo Finance ongoing two year chart of JPM
The Yahoo Finance ongoing one year chrt of NMR, JPM, and KCE
Jesse in article OCC Derivatives Report: The Four Horsemen of the Apocalypse provides the
Chart of Derivates Owned by Organization which shows the JPM owns over half the derivatives outstanding; the exposure to derivaties is concentrated in the top four US Banks.
The chart of the gold ETF, GLD shows a close up to $72 ... GLD
Gold, $GOLD, closed up at $730 ... $GOLD
In addition, beyond the above lowball figure, no estimates are available of derivatives default amounts or forecasts of more likely in a continuing downturn.
In sum, a monumental problem. Too big to ignore, but precisely what Congress is doing. At enormous risk to the economy, businesses, households, the American way of life, and the nation as the world's economic superpower. Plus the effect on world economies and people everywhere".
One wonders to what extent investment banker, Nomura Holding has in derivatives and if intends to pursue action agains JP Morgan. The Nikkei in article 'Nomura Continues Global Quest As Last Investment Bank' reports: "As Nomura, MMR, ramps up its bid to become a major player in global investment banking, about 8,000 former Lehman Brothers employees, are on board, ready to contribute their M&A and underwriting expertise to the effort".
If one has wealth, it is best to put it far, far away from the current financial system, safe and sound in a guarded vault, like BullionVault and GoldMoney, with an account personally at streetTracks Gold Trust, and in physical possession of gold coins.
Related Charts
The Yahoo Finance ongoing two year chart of JPM
The Yahoo Finance ongoing one year chrt of NMR, JPM, and KCE
Jesse in article OCC Derivatives Report: The Four Horsemen of the Apocalypse provides the
Chart of Derivates Owned by Organization which shows the JPM owns over half the derivatives outstanding; the exposure to derivaties is concentrated in the top four US Banks.
The chart of the gold ETF, GLD shows a close up to $72 ... GLD
Gold, $GOLD, closed up at $730 ... $GOLD
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