Banks increase derivative exposure in Q4
We are letting the biggest US banks grow bigger and take larger risks ALL THE TIME. Where are the systemic regulators?
Wall Street Journal: US Banks lose total of $9.2 billion on derivative trades in 4th Quarter. The notional value of derivatives held by U.S. banks climbed $24.5 trillion in the fourth quarter to $200.4 trillion, as major U.S. investment banks converted to become banks to access government aid.
Bank Losses Spreading!:
"According to the OCC’s Q4 2008 report, America’s top five commercial banks control 96 percent of the industry’s total derivatives, while the top 25 control 99.78 percent. In other words, for every $100 dollar of derivatives, the big banks have $99.78 … while the rest of the nation’s 7,000-plus banking institutions control a meager 22 cents!
Commercial banks lost a record $3.4 billion in interest rate derivatives, or more than seven times their worst previous quarterly loss in that category."
Wall Street Journal: US Banks lose total of $9.2 billion on derivative trades in 4th Quarter. The notional value of derivatives held by U.S. banks climbed $24.5 trillion in the fourth quarter to $200.4 trillion, as major U.S. investment banks converted to become banks to access government aid.
Bank Losses Spreading!:
"According to the OCC’s Q4 2008 report, America’s top five commercial banks control 96 percent of the industry’s total derivatives, while the top 25 control 99.78 percent. In other words, for every $100 dollar of derivatives, the big banks have $99.78 … while the rest of the nation’s 7,000-plus banking institutions control a meager 22 cents!
Commercial banks lost a record $3.4 billion in interest rate derivatives, or more than seven times their worst previous quarterly loss in that category."
posted by Tolli at 2:05 PM
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