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Non-Tech
Derivatives: Darth Vader's Revenge
An SI Board Since August 1998
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2784 92 0
Emcee:  Worswick Type:  Unmoderated
According to informed sources as of March of this year the Long TErm Credit Bank of Japan had approximately 50 trillion yen of derivative contracts outstanding...eg. $725 billion dollars as of the exhcange yen/dollar currency rates of August, 1998.

Now that LTCB is finally acknowledged to be broke what has happened to this exposure? Has $725 billion dollars gone to money heaven?

One worries.

What does this portend for our own banks where all derivative contracts appear to be cross linked?

Is the global financial system about to be swamped with between $100 trillion and $500 trillion in unresolvable derivative contracts?

Where does one hide in this scenario?

According to the Federal Reserve Bank of New York...."activities in the 1996 annual reports of a sample of the largest, internationally active banks and securities firms in the G-10 countries, and notes improvements since 1993. The analysis builds, in part, upon a framework used by the Federal Reserve in analyzing the trading and derivatives disclosures of major U.S. banking organizations.

In total, 79 major banks and securities firms in the G-10 countries comprised the sample reviewed for the 1993-1996 period, representing over $14 trillion in total assets and over $83 trillion in notional amounts of derivative instruments. Disclosures in the 1995 and 1996 annual reports of a major securities firm in Hong Kong were also reviewed.

The analysis revealed that there have been general improvements as well as voluntary innovations in the annual report disclosures of a number of the surveyed firms. In particular, there were notable improvements in quantitative disclosures about market risk in 1996 and 1995. However, despite encouraging advances in disclosure practices by a number of institutions in the G-10 countries, many institutions continued to disclose very little about their trading and derivatives activities".

Please See: ny.frb.org

...for the full text of the 37 page report and the abstract.

Personally, I am worried about this.

I am surprised that a discussion of one of the most pressing questions of our time.... has not been addressed sooner.

Thanks for your consideration and, I hope, interest.



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2784And I do believe this is the end of the global world order such as it is now comWorswick1June 28
2783Further to Jim's posts ... my take ...this is the end .... The Fed has iWorswick-June 28
2782Thanks Garry for your latest ...I think back and I started this thread on 8,31.1Worswick-June 28
2781Imagine one bank by itself has $60 trillion in derivatives, that's right $60ggersh1June 25
2780jessescrossroadscafe.blogspot.com "A synthetic instrument has no real asseggersh1March 17
2779Once upon a time banksters jumped nowadays they get bailed out.....sighggersh1February 5
2778MAGIC .... 50 TO 1 LEVERAGE & THE FED THEN BAILS YOU OUT! Repo Magic CrisiWorswick2February 4
2777MANY THANKS TO GGERSH WHO FIRST POSTED THIS BUT IN CASE THE URL DISAPPEARS AS DWorswick1January 11
2776Now we know much more .....thank you Wall Street on Parade! You might check Worswick1January 11
2775Well if this doesn't explain how rotten the banking system is I'm not suggersh1January 8
2774Meet the Two Congressmen Who Facilitated Today’s Derivatives Nightmare at Wall SWorswick-12/23/2021
2773OCC Report Shows JPMorgan Chase Owns 62 Percent of all Stock Derivatives Held atWorswick-12/23/2021
2772Merry Christmas everyone!! wolfstreet.com Enough of this “Bond-Marketggersh-12/21/2021
2771The Fed Gets Its Ducks in a Row for the Next Wall Street Bailout; Quietly Adds GWorswick112/21/2021
2770History keeps repeating itself. Happy Holidays my friend! jessescrossroadscafe.ggersh-12/5/2021
2769A wrap up of the malefactions of the last few years relating and not relating toWorswick112/4/2021
2768Jamie Dimon amongst others all should've been sent to jail when Mr. hope andggersh-11/19/2021
2767IT IS DIFFICULT TO SEE HOW THEY ARE GOINGTO WIFFLE THEMSELVES OUT OF THIS .... Worswick-11/19/2021
2766Perfect timing as it's the 5th of November! [youtube video]ggersh-11/5/2021
2765Backing up a bit ... I started the movie with the last scene( in the previous poWorswick111/5/2021
2764I have been pondering this article since it appeared last week .... at first afWorswick211/5/2021
2763The most difficult year for me since I started this thread over two decades ago Worswick111/5/2021
2762moonofalabama.org On The Breeding Of Money - by Gordog bý Gordog Somggersh-9/2/2021
2761Jesse “They (economists) must set aside their contempt for other disciplines ggersh-8/14/2021
2760Millions of millions = Trillions.... but no worries, it's all good and we The Ox18/3/2021
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