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Derivatives: Darth Vader's Revenge
An SI Board Since August 1998
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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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2768Jamie Dimon amongst others all should've been sent to jail when Mr. hope andggersh-November 19
2766Perfect timing as it's the 5th of November! [youtube video]ggersh-November 5
2765Backing up a bit ... I started the movie with the last scene( in the previous poWorswick1November 5
2764I have been pondering this article since it appeared last week .... at first afWorswick2November 5
2763The most difficult year for me since I started this thread over two decades ago Worswick1November 5 On The Breeding Of Money - by Gordog bý Gordog Somggersh-September 2
2761Jesse “They (economists) must set aside their contempt for other disciplines ggersh-August 14
2760Millions of millions = Trillions.... but no worries, it's all good and we The Ox1August 3
2759Here we go again.....sigh Hoping everyone that posts heggersh1August 3
2758What comes after Quadrillion? -nfg-ggersh1April 19
2757Fun Facts [graphic] The $2.3 Quadrillion Global Timebomb BYWorswick3April 19
2756Fun Facts [graphic]Worswick1April 19
2755Interesting tale about Citadel/Rehypothecation TL;DR- Citadel andggersh1April 16
2754It's about that time again for an overview as to where we are in derivative Worswick3April 16 The Archegos Capital Management hedge fund implosion hasggersh3March 30
2752Message 33261131 One of World’s Greatest Hidden Fortunes Is Wiped Out in DaysByThe Ox2March 30
2751This is from Dealbook's newsletter. The formatting can't be helped. HerSam-January 31
2750Reminds me of back in the mid-90's with the WacoKid and TokyoJoe.. The gHawkmoon1January 27
2749Must watch Video about Game Stop and the freaking out of WS [youtube video]ggersh1January 27
2748"The FED has a Problem" ROFL..... By Pam Martggersh1January 26 <i> <snip> Shortly after Yellen made this stThe Ox211/24/2020
2746Message 33036985 Last week, the New York Times’ Emily Flitter, Jeanna Smialek aThe Ox111/12/2020
2745Must watch [youtube video]ggersh-9/6/2020 [graphic]ggersh18/12/2020
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