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Derivatives: Darth Vader's Revenge
An SI Board Since August 1998
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2794 90 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 $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:

...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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2794Must watch and become scared by the shit they're doing to us tptb are cominggersh110/2/2023 Gold is replacing the dollarAug 2, 2023·Alasdair MacleodFinggersh-8/7/2023
2792 As I have been saying tirelessly for a quarter of century.... for 25 yrears ..Worswick57/26/2023 On March 17, 2022, the Federal Reserve began its intereggersh-6/26/2023
2790Gold a safe haven from the upcoming disaster? [graphic]ggersh-5/16/2023
2789BIS out of nowhere finds $80tril in "hidden swap debt" Preview to a cggersh-12/6/2022 Egon von Greyerz (EvG) stores gold for clients at the biggest pggersh-11/4/2022
2787No one seems to survive without them ...something to pledge in time of crisis I Worswick110/30/2022
2786Hello threadsters... a bit of work we have been doing in terms of disclosure forWorswick110/15/2022
2785New Study: Wall Street Banks Are Doubling Down on Risk by Selling Credit DefaultWorswick210/7/2022
2784And I do believe this is the end of the global world order such as it is now comWorswick26/28/2022
2783Further to Jim's posts ... my take ...this is the end .... The Fed has iWorswick16/28/2022
2782Thanks Garry for your latest ...I think back and I started this thread on 8,31.1Worswick16/28/2022
2781Imagine one bank by itself has $60 trillion in derivatives, that's right $60ggersh16/25/2022 "A synthetic instrument has no real asseggersh13/17/2022
2779Once upon a time banksters jumped nowadays they get bailed out.....sighggersh12/5/2022
2778MAGIC .... 50 TO 1 LEVERAGE & THE FED THEN BAILS YOU OUT! Repo Magic CrisiWorswick22/4/2022
2776Now we know much more .....thank you Wall Street on Parade! You might check Worswick11/11/2022
2775Well if this doesn't explain how rotten the banking system is I'm not suggersh11/8/2022
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!! 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
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