Die größten Banken Amerikas pleite?

verfasst von R.Deutsch, 29.07.2002, 23:06

Have The Big US Derivatives
Banks Exploded?
By John Hoefle
Executive Intelligence Review
www.larouchepub.com/eiw
7-28-2

(EIRNS) -- Indications are growing that the top three U.S. derivatives banks--J.P. Morgan Chase, Citigroup and Bank of America--have been pushed to, if not over, the brink of"technical" bankruptcy by problems in the derivatives markets. (See end section for background on what derivatives are.--Mark) We say"technical" because the top U.S. banks have long counted hundreds of billions of dollars of fictitious assets on their books, making them bankrupt in reality, and solvent only by perception.

Both Morgan Chase and Citigroup have shown up with uncanny frequency as the top lenders to the current crop of exploding corporations and are clearly facing huge losses on their loan portfolios. With corporations and individuals going bankrupt at record rates and defaults soaring, the loan problems at Morgan Chase, Citigroup and Bank of America go far beyond what has publicly surfaced, but their loan problems pale in comparison to the dangers lurking in their derivatives portfolio.

J.P. Morgan Chase, the world's largest derivatives bank, is a prime example; a loss equivalent to less than 0.2% of its $24 trillion derivatives portfolio would be enough to wipe out every last penny of the bank's equity capital. {EIR} believes that Morgan Chase actually collapsed in mid-2001, and is being secretly run by the Federal Reserve, similar to the way the Fed took over Citicorp in 1989.

Morgan Chase is the result of the acquisition of J.P. Morgan & Co. by the bigger Chase Manhattan. The deal, which closed on the last day of 2000, has been an absolute disaster as measured in ordinary--and therefore misleading--market terms. The market capitalization of the combined Morgan Chase is now less than that of Chase alone on the day before the merger, with Morgan (or at least its equivalent value) having simply vaporized. This is not surprising, as it was likely a bankruptcy at Morgan, and perhaps Chase as well, which led to the takeover of Morgan by Chase.

Citigroup may again be under Fed control as well, as rumors of major derivatives losses circulate. Citigroup is the result of the 1998 takeover of Citicorp by Travelers Insurance, creating what is now the largest bank in the U.S., with just over $1 trillion in assets and $9 trillion in derivatives. Former Treasury Secretary Robert Rubin revealed on July 15 that he was retiring from his position as vice-chairman at the bank, and three days later it was announced that Saudi Prince Alwaleed bin Talal, Citigroup's largest individual shareholder, had invested another $500 million in the bank, raising his holding to $10 billion. Alwaleed, a nephew of Saudi King Fahd, obtained his initial stake in the bank shortly after the Fed took it over in 1989 and began arranging a bailout. The latest cash infusion raises suspicion that Alwaleed is performing a similar service for Citigroup.

Not to be left out is Bank of America, whose $620 billion in assets puts it third behind Citigroup's $1 trillion and Morgan Chase's $713 billion. Bank of America's $10 trillion in derivatives puts it solidly on the hot seat in any financial crisis, and it has also loaned heavily to bankrupt companies. Rumors are flying that Bank of America has applied to the Fed for a secret bailout.

Banking sources in Europe have confirmed to {EIR} that a major derivatives crisis is underway, centered around the giant U.S. derivatives banks, Morgan Chase and Citigroup in particular. Were one of the big derivatives banks to explode, it could overwhelm the Fed's ability to cover up the losses, triggering a chain reaction which could blow out the entire global financial system.



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gesamter Thread:

• Die größten Banken Amerikas pleite? - R.Deutsch, 29.07.2002, 23:06
  • Hr.Deutsch - daß Du mal was von Lafontaine toll findest - Turon, 29.07.2002, 23:29
    • Ihn nicht ansprechen! (Silber fällt wieder stark) - Taktiker, 30.07.2002, 00:44
      • Re: Ihn nicht ansprechen! (Silber fällt wieder stark) / Du wandelst wieder.... - ---- ELLI ----, 30.07.2002, 00:50
        • Re: Ihn nicht ansprechen! (Silber fällt wieder stark) / Du wandelst wieder.... - Taktiker, 30.07.2002, 00:58
          • Re: hallo, Elli, wer auf die Knüppelfritzen nicht vorbereitet ist, - Baldur der Ketzer, 30.07.2002, 01:01
      • @ Taktiker - Turon, 30.07.2002, 05:14
      • Re: Ihn nicht ansprechen! (Silber fällt wieder stark) - PuppetMaster, 30.07.2002, 09:40