The Dallas Fed Is Calling For The Immediate Breakup Of Large Banks
1. The Dallas Fed Is Calling For The Immediate Breakup Of Large
Banks
http://articles.businessinsider.com/2012-03-21/wall_street/31218166_1_banking-industry-financial-
crisis-megabanks#ixzz1rkDmp2CL
Unregulated Unsecured Bank Derivatives
Set New Record
A good example for reading past the headlines to get the whole story:
http://richcash8tradeblog.blogspot.com/2011/11/unsecured-unregulated-
bank-derivatives.html
"$707,568,901,000,000: How (And Why) Banks Increased Total
Outstanding Derivatives By A Record $107 Trillion In 6 Months
Submitted by Tyler Durden on 11/26/2011 - 20:44 AIG American International
GroupCounterparties Gross Domestic Product Mean Reversion MF Global notional
value OTCOTC Derivatives Volatility
World GDP IMF 2012 estimated at 73.74 Trillion $
http://www.google.com/publicdata/explore?ds=k3s92bru78li6_#!
ctype=l&strail=false&bcs=d&nselm=h&met_y=ngdpd&scale_y=lin&ind_y=fal
se&rdim=world&idim=world:Earth&ifdim=world&hl=en_US&dl=en_US
2. OCC’s Quarterly Report on Bank Trading and Derivatives Activities
First Quarter 2011
http://www.occ.gov/topics/capital-markets/financial-
markets/trading/derivatives/dq111.pdf
OTC derivatives market activity in the first half of 2011
http://www.bis.org/publ/otc_hy1111.pdf
Banks Lobbying Against Derivatives
Trading Ban
http://www.nytimes.com/2010/05/10/business/10lobby.html?_r=1
EDITORIAL
A Long Road to Regulating Derivatives
Published: March 24, 2012
That would minimize the practice of trading derivatives as private bilateral
contracts, in which the price is whatever the bank says it is. Over a year ago, the
C.F.T.C. sensibly proposed a system in which buy and sell offers would be
electronically posted and widely accessible. In response, industry lobbyists and
some lawmakers have made the absurd argument that open trading would hurt
banks’ flexibility to continue doing business as usual.
http://www.nytimes.com/2012/03/25/opinion/sunday/a-long-road-to-
regulating-derivatives.html
3. G20 and other discussion fora on derivative regulation, comG20 and
other discussion fora on derivative regulation, commodity price
volatility and food speculation
Eriva
http://somo.nl/dossiers-en/sectors/financial/eu-financial-reforms/newsletter-
items/issue-6-april-2011/g20-and-other-discussion-fora-on-derivative-
regulation-commodity-price-volatility-and-food-speculation
4. Derivatives May Still Endanger The Financial System
Derivative instruments held by US banks have a nominal value
of $250 trillion– or about 150 times the aggregate balance
sheet equity of these same banks, according to figures compiled
by the Federal Deposit Insurance Corporation, the FDIC, the
regulatory agency responsible for ensuring the safety of
banks across America.
It is for this reason that you might ponder on whether the
absurd level of leverage in the banking system might well rock
the nation at a moment when economic recovery is still
relatively fragile.
You won’t read these warnings in 2012 annual reports of
Goldman Sachs, JP Morgan Chase, Citigroup, or Bank of
America or Morgan Stanley. But, if you are lucky enough to lay
your hands on the report from the privately help Plymouth
Rock Company, an insurance company chaired by Jim Stone, a
former chairman of the CFTC, you will read the following:
“It was the systemic risk arising from oversized and
interconnected derivative positions that turned a real estate
price correction into a general collapse, and now exacerbates
the European debt crisis,”: Stone writes. The $250 trillion open
interest in derivatives– held mainly by about 6 too- big- to -fail
US banks– “is out of scale with any legitimate hedging function,
incompatible with the notion of financial services as a
lubricant rather than a driver in a free economy, and a source
of risk beyond the ability of any executive or board member to
fathom, let alone manage prudently.”
http://www.forbes.com/sites/robertlenzner/2012/03/30/derivatives-may-still-endanger-the-
financial-system/
5. We can end the crisis without passing the costs onto ordinary
people. This would also reduce debt, poverty and economic chaos.
But it's going to need massive public pressure so we all need to get
involved. reduce debt, poverty and economic chaos. But it's
going to need massive
public http://www.positivemoney.org.uk/
