Loading ...Of course, as during the previous financial crisis, government and financial executives will make reassuring statements, such as the one made by Treasury Secretary Yellen last Friday when she reassured the public that the American banking system is resilient and well capitalized.
But is it? The five banks labeled “too big to fail” have $188 trillion in derivatives. The brutal fact is that 5 US banks have risk exposure that is twice the size of the GDP of the entire world. It is incomprehensible that 5 US banks have sufficient capital to back derivative bets that are twice the size of world GDP.”