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Manuel
Advanced Member
USA
762 Posts |
 Posted - 09 Feb 2004 : 09:12:30
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Cooking the Books: U.S. Banks are Giant Casinos
While media financial reporters keep the current focus of the public eye on Martha Stewart, the insolvency of U.S. banks due to their derivative holdings is being swept under the carpet.
Because banks have not been making a profit from traditional lending, derivatives became a fantastic way for them to net huge gains by trying to guess (gamble on) future prices of commodities or stocks. They were able to take these gambling risks because the Fed is supposed to back them from losses that would make them insolvent (more liabilities than assets). The worst part is that derivative transactions stay off the books and away from the prying eyes of investors and analysts.
U.S. interest rates being kept low by the Federal Reserve System (which is neither Federal nor does it have any intrinsic reserves) is to simply hide the nearly one-hundred $trillion ($100 Trillion U.S. Dollars = $100,000,000,000,000) of derivative losses and the true insolvency of U.S. banks. The moment interest rates start to run up, U.S. banks will be left holding little paper value assets to offset their vast derivative gambling losses.
U.S. stock markets are being manipulated to show overall value gains and "profits" is to keep U.S. banks "paper solvent". In reality, the public is being conned into thinking that U.S. banks are still solvent because they show "gains" in their own stock "paper" value and stock holdings portfolios. If the U.S. markets were not manipulated, U.S. banks would collapse overnight along with the entire U.S. economy.
U.S. banks are merging with each other to hide their derivative losses with "paper asset" bookeeping that incorrectly shows they are solvent with enough "assets" to overcome their losses. In reality, this is smoke and mirror accounting, a scam worth tens of $Trillions.
U.S. banks - with the privately owned Federal Reserve System at the helm - have turned into giant casinos by running a Casino Economy that is splintering into vast piles of insolvent firewood. The kindling was lit in the early 1990's, but now a bonfire is raging with great plumes of red-ink smoke. Can the Fed and the Fed-controlled media keep the public from seeing that red smoke with their manipulative mirrors? If the public would just open their eyes and wake up, they would see what's really going on, so here's something to focus your eyes on:
The top 25 U.S. banks with the largest derivatives holdings (these are estimates based on OCC Q3-2003 report and updated from news releases since 10/03). Remember, $1 Billion U.S. Dollars = $1,000,000,000.
RANK - BANK NAME - DERIVATIVES (in $US BILLIONS)
1 - JPMORGAN CHASE BANK - 33,700 ($33 Trillion, 700 Billion)
2 - BANK OF AMERICA - 13,800
3 - CITIGROUP - 11,000
4 - WACHOVIA CORPORATION - 2,457
5 - BANK ONE CORPORATION - 1,133
6 - HSBC - 1,043
7 - WELLS FARGO BANK NA - 911 ($911 Billion)
8 - FLEET BOSTON - 494
9 - BANK OF NEW YORK - 496
10 - COUNTRY WIDE FINANCIAL - 410
11 - STATE STREET - 320
12 - TAUNUS - 307
13 - NATIONAL CITY - 203
14 - ABN AMRO - 188
15 - MELLON - 153
16 - KEYCORP - 98 ($98 Billion)
17 - SUNTRUST - 82
18 - FIRST TENNESSEE BANK NA - 58
19 - U S BAN CORP - 54
20 - PNC BANK NATIONAL ASSN - 45
21 - DORAL - 31
22 - NORTHERN TRUST - 25
23 - CIBC DELAWARE - 25
24 - METLIFE - 22
25 - UTRECHT-AMERICA - 20
If you want to get a hint at how much red ink your U.S. bank casino is swimming in, look at their latest financial report and keep an eye out for an entry such as, "adjustment of derivative financial instruments" or "adjustment of non-interest instruments". If they list such an "adjustment" (most do not), this means they have written off the losses incurred from their derivative gambling.
If you bank with one of the 25 banks listed above, you can expect worse than the 1986-1990 Savings & Loan bank collapses when people were unable to remove all or most of their money from their accounts until years later. This time, you can expect to loose whatever they claim to "hold" for you because the FDIC and the "Fed" have no means to replace the losses with any instrinsic value.
If you choose to keep accounts with these U.S. banks, you have just become a high-stakes gambler, and the odds are stacked against you.
http://worldvisionportal.org/WVPforum/viewtopic.php?t=160
Written by Michael Edward of http://WorldVisionPortal.Org
Non-commercial reproduction allowed in whole only
Otherwise, copyright 2004 by WorldVisionPortal.Org |
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Manuel
Advanced Member
USA
762 Posts |
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Manuel
Advanced Member
USA
762 Posts |
Posted - 26 Mar 2004 : 12:09:16
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Cooking the Books PART II: US $71 Trillion Casino Banks
From the Pinocchio Files by Michael Edward
Derivative holdings by U.S. banks increased nearly $4 TRILLION in just 3 months to now total over $71.1 TRILLION. JPMORGAN CHASE accounts for $3.1 TRILLION of this increase.
That's $ 71,100,000,000,000
The first 7 banks listed below account for 96% of all commercial bank derivative holdings, with 90% of these derivatives in extremely risky OTC (Over the Counter) contracts.
As I said in Cooking the Books Part I, U.S. banks are giant gambling casinos, and now they have become even larger gambling addicts at the expense of all Americans.
US BANK DERIVATIVE CONTRACTS
(based on just released 03Q4 OCC Bank Derivatives report)
1. JPMORGAN CHASE BANK - $36,805,757,000,000 (Assets $628,662,000,000)
Risk Ratio 58.5:1 ($58.54 of derivatives per $1 of assets).
Credit exposure to Risk-Based Capital Ratio 844.6%
OTC Derivatives 92.6%
2. BANK OF AMERICA - $14,869,220,000,000 (Assets $617,962,000,000)
Risk Ratio 24:1 ($24.06 of derivatives per $1 of assets).
Credit exposure to Risk-Based Capital Ratio 221.7%
OTC Derivatives 83.4%
3. CITIBANK - $11,167,882,000,000 (Assets $582,123,000,000)
Risk Ratio 19:1 ($19.18 of derivatives per $1 of assets).
Credit exposure to Risk-Based Capital Ratio 267.1%
OTC Derivatives 96.4%
4. WACHOVIA BANK - $2,326,465,000,000 (Assets $353,541,000,000)
Risk Ratio 6.6:1 ($6.58 of derivatives per $1 of assets).
Credit exposure to Risk-Based Capital Ratio 80.6%
OTC Derivatives 70.2%
5. HSBC BANK USA - $1,353,741,000,000 (Assets $92,958,000,000)
Risk Ratio 14.5:1 ($14.45 of derivatives per $1 of assets).
Credit exposure to Risk-Based Capital Ratio 288.5%
OTC Derivatives 88.7%
6. BANK ONE - $1,232,095,000,000 (Assets $256,787,000,000)
Risk Ratio 4.8:1 ($4.79 of derivatives per $1 of assets).
Credit exposure to Risk-Based Capital Ratio 58.7%
OTC Derivatives 96.1%
7. BANK OF NEW YORK - $561,694,000,000 (Assets $89,258,000,000)
Risk Ratio 6.3:1 ($6.29 of derivatives per $1 of assets).
Credit exposure to Risk-Based Capital Ratio 77.7%
OTC Derivatives 78.1%
8. WELLS FARGO BANK - $557,161,000,000 (Assets $250,474,000,000)
Risk Ratio 2.2:1 ($2.22 of derivatives per $1 of assets).
Credit exposure to Risk-Based Capital Ratio 26.7%
OTC Derivatives 66.3%
9. FLEET NATIONAL BANK - $443,708,000,000 (Assets $192,265,000,000)
Risk Ratio 2.3:1 ($2.30 of derivatives per $1 of assets).
Credit exposure to Risk-Based Capital Ratio 20.2%
OTC Derivatives 64.1%
10. STATE STREET BANK - $369,843,000,000 (Assets $80,435,000,000)
Risk Ratio 4.6:1 ($4.59 of derivatives per $1 of assets).
Credit exposure to Risk-Based Capital Ratio 161.0%
OTC Derivatives 89.2%
JPMORGAN CHASE is far past the point of no return. To put it in simple terms, JPMORGAN CHASE, BANK OF AMERICA, CITIBANK, and HSBC are already insolvent many times over. They have no liquidity, yet they are still operating as if they do.
This has now gone way beyond the imminent bursting of the US financial debt bubble... it has become an explosive financial weapon of mass destruction.
To understand the gambling risk U.S. banks have created, please read the following articles:
THE 3-D BOMB: DERIVATIVE DOMINO DESTRUCTION
http://worldvisionportal.org/WVPforum/viewtopic.php?t=177
U.S. BANKS HAVE BECOME A PONZI SCHEME
Most Bank Derivatives Have UNLIMITED Risk
DERIVATIVES ARE THE KISS OF DEATH
(scroll down to view these articles)
http://worldvisionportal.org/WVPforum/viewtopic.php?t=160
U.S. Bank Fraud Created Europe's Largest Bankruptcy
http://worldvisionportal.org/WVPforum/viewtopic.php?t=176
$25 BILLION of Fannie Mae Derivative Losses
http://worldvisionportal.org/WVPforum/viewtopic.php?t=192
Non-commercial reproduction allowed, otherwise copyright 2004 by WorldVisionPortal.Org |
Edited by - Manuel on 26 Mar 2004 12:14:31 |
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Cooking the books: U.S. Banks are Giant Casinos
