Financials play a pivotal role in the markets. They led the way as they enabled the previous run-ups and bubbles, and they led the way down when the house of cards was revealed for what it was. The survival of nearly all markets is hanging by a QE thread, so we’ll take a fresh look … continue reading →
Tag Archives: banks
I’ve been harping on the incredible threat represented by the $250 trillion in almost entirely off-the-books, unregulated derivatives market — 95% of which is should be but isn’t on the books of the top five US banks [see: The Wipeout Ratio.] It’s an astonishing 550 times the tier 1 capital on the books of these … continue reading →
A simple calculation comparing major banks’ derivatives positions to their assets and capital shows how little it would take to wipe out either. The first ratio is the multiple that derivatives represent of Tier 1 capital. The second shows the miniscule percentage decline in the value of derivatives portfolio it would take to completely wipe … continue reading →
When Wells Fargo CEO John Stumpf sleeps, he dreams — like all good bankers — about numbers. He probably doesn’t dream about the number 600 — the number of foreclosure packages signed each day by his robosigners. He probably doesn’t dream about 14,420 — the number of conveyance claims fraudulently submitted to HUD in exchange … continue reading →