The two global banks with the largest derivatives exposures are J.P. Morgan and Deutsche Bank. The derivatives exposure of J.P. Morgan is around $70,000 billion and of Deutsche Bank €55,000 billion. These figures are, respectively, about one-and-a-half times the total value of all the assets in the USA, and twenty times German national income. But the numbers in the balance sheets of these banks are much lower. Deutsche Bank declares its investment in derivatives at €768 billion: not a small amount, but only a modest fraction of the bank’s exposure. Deutsche Bank’s financial position is set out in Fig. 9.
David Sheppard, “INSIGHT-Goldman puts ‘for sale’ sign on Iran’s old uranium supplier,” Reuters, 11 February 2014
- In 2009, Goldman bought firm that once sold Iran uranium
- Goldman sitting on $200 million stockpile of yellowcake
- Deutsche Bank holds similar inventories of the fuel
Simon Chouffot, “Boris’ Curious Use of Facts in Attacking the Robin Hood Tax,” The Huffington Post UK, 24/07/2013
But Boris’ speech nonetheless got my blood boiling. In taking a swipe at the proposal for a European Financial Transaction Tax – every City fat cat’s favourite bug bear at the moment – he chronically misrepresented how it works.
David Kocieniewski, “A Shuffle of Aluminum, but to Banks, Pure Gold,” The New York Times, July 20 2013
Hundreds of millions of times a day, thirsty Americans open a can of soda, beer or juice. And every time they do it, they pay a fraction of a penny more because of a shrewd maneuver by Goldman Sachs and other financial players that ultimately costs consumers billions of dollars.
Matt Taibbi, “Chase, Once Considered ‘The Good Bank,’ Is About to Pay Another Massive Settlement,” Rolling Stone, July 18 2013
In the three-year period between 2009-2012, Chase paid out over $16 billion in litigation costs. Noted financial analyst Josh Rosner of Graham Fisher slammed Chase in a report earlier this year, pointing out that these settlements and legal costs represented a staggering 12% of Chase’s net revenue during this time. There couldn’t possibly be a clearer demonstration of the modern banking model, in which companies break rules/laws as a matter of course, and simply pay fines as a cost – a significant cost – of doing business.