Top 25 commercial banks/trust companies holding derivatives:

[dixiegrrrrl]

My previous post outlined what would happen if you have an account at one of these derivative holding banks.

[patrice]

1. Link?

[tabatha]

2. This one?

http://occ.gov/topics/capital-markets/financial-markets/trading/derivatives/dq211.pdf

[patrice]

5. Thank you!

:hi:

[dixiegrrrrl]

6. self delete..I posted wrong link.

[FBaggins]

3. Unfortunately, "holding derivatives" doesn't say enough.

An interest rate contract, for instance, can actually reduce risk IF it hedges against interest rate risk that's inherent in the bank's asset/liability mix.

The very same derivative adds risk if it's "naked" speculation on the direction of future interest rates (or worse, if it actually bets in the same direction that the bank's A/L mix is unbalanced).

[tabatha]

4. These derivatives are not a problem until a bank is liquidated.

Then derivatives take preference over clients.

[Po_d Mainiac]

10. The hedge 'against' risk argument is only valid

if the counter party/s are able to pay.

With the current shadow banking/off balance sheet accounting, no one really knows who is exposed to what until the margin calls come in rapid fire.

[grasswire]

7. can someone clarify that graph?

It can't be possible that JPMorgan Chase has only $1,791,060 in total assets.

[dixiegrrrrl]

8. Methinks it is in billions.

[Po_d Mainiac]

9. add 6 zero's n/t