Is Your Bank a Casino?


Remember the list of banks I had posted on my overhead bin? Here’s an update from The Office of the Comptroller of the Currency.

These are the top 25 banks in the nation with the highest exposure to derivatives. Warren Buffet has said “derivatives are financial weapons of mass destruction.”

Keep in mind: the US GDP is $11 trillion. The entire world’s GDP is $45 trillion. The top bank is gambling with $91 trillion in derivatives.

 Derivatives by Bank

This is why I left Wells Fargo in 2006. When you compare these banks’ assets to their derivatives position you can see how fragile they really are.

BofA credit cardLook at #3 on the list, Bank of America. Are they getting desparate for $ after bailing out CountryWide Financial? BusinessWeek is reporting that B of A “in mid-January sent letters notifying some responsible cardholders that it would more than double their rates to as high as 28%, without giving an explanation for the increase.”

BusineesWeek asks “Is BofA greedy or needy?” See article. BofA raised the rates of one software developer from 9.99% to 24.99% simply because they felt he hadn’t been paying down his balance fast enough (he’s at only 50% of his credit limit).

Protect YourselfPlease protect yourself:
Don’t carry a balance on a credit card.
Don’t bank at one of the 25 banks above.

◊◊◊◊ As of today: Gold @ $916.25, Silver @ $16.95 ◊◊◊◊

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6 Responses

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  5. […] at $80/share. Chase buys it for $2/share. 97% less! Fire sale! And get this: JPMorgan Chase has gambled more on derivatives than any other bank! OMG they’re into it for $91.7 trillion. Yes, […]

  6. […] Hmmm… you don’t suppose some of those banks could be on my list of top 25 derivative gamblers… […]

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