The OCC (Office of the Comptroller of the Currency) published its report on derivatives in the FDIC Insured banks. It is important to pay attention to this because many people rely on banks to hold our savings and therefore, determines what happens to our future security.
The “Great Recession” was caused by a derivative implosion driven by bank’s speculative proprietary trading. Dodd-Frank was supposed to eliminate this risk, but many of those rules were postponed and then systematically dismantled. Rather, new accounting rules were implemented beginning in 2013 that hid the risk. Initially, these accounting rules made the “nominal value” of derivatives decline, but in truth, this danger has escalated.