The wheelings and dealings of the global financial institutions are finally catching up with the perpetrators of this financial depravity.
These “banks” (aka money laundering operations) have created quadrillions in so-called “derivatives” to prop up a profoundly sick and fraudulent system.
“A derivatives book of $49 trillion notional puts Deutsche Bank in the same league as the bank holding companies of U.S. juggernauts JPMorgan Chase, Citigroup and Goldman Sachs, which logged in at $48 trillion, $47 trillion and $42 trillion, respectively, at the end of December 2018 according to the Office of the Comptroller of the Currency (OCC).”
In other words, using these figures, that’s $186,000,000,000,000 in derivatives, just among JP Morgan Chase, Citigroup, Deutschebank, and Goldman Sachs alone, or, to put a different point on it, that’s about 20% of $1,000,000,000,000,000, a quadrillion dollars.
Factor in all the other banks in this diagram, and you’re approaching that 14 to 17 quadrillion dollar figure for the amount of derivatives the banks ballooned prior to 2008.
That’s several times the gross domestic product of the entire planet.
And again, most of that is in derivatives, those bundles and bundles of bundles, whose actual contents are not well known. And remember something else very significant: most of the trading in these bundles is being conducted by algorithms and computers, not humans. Indeed, computers were used to create the bundles, and then to rate them.
So kudos to Zero Hedge for mentioning the problem again, and doing so in the context of busting up these too-big to fail too-big-to-jail banks.
It doesn’t take much imagination to see why that may be necessary, because only by untying each bundle and seeing what’s inside them can and tracking the trades can we see who committed what and when. Only by untying those bundles and taking a peek inside each and every one of them, will we be able to fix the problem, and find the perpetrators.
And if the fraud is as bad as I suspect it is (and consider the fact of the numbers: how can it not be fraud if the notional book-value of derivatives is in the quadrillions of dollars and several times larger than the GDP of the planet!?!?) then it’s time to give these people a cell next to Mr. Epstein.
This wasn’t really equity capitalism at all. It was finance capitalism, or as I like to call it, crony crapitalism of the worst sort.