Finan¢ial $en$e: Derivatives Exposure of U.S. Banks

October 3, 2011

Derivatives Exposure of U.S. Banks

Notional derivatives exposure:

JP Morgan Chase - $78.7 trillion
Bank of America - $72.5 trillion
Goldman Sachs - $48.9 trillion
Morgan Stanley - $41.5 trillion
Citicorp - $39.3 trillion

This data is stale - as of Dec. 2009. I couldn't find more current numbers, but something tells me that more current numbers wouldn't be that different. These are some BIG numbers! Although some of this is interest rate swaps, which have limited risk, especially with Ben Bernanke keeping interest rates artificially stable. But there are also plenty of credit default swaps in here, too. Just more fuel for a possible fire.

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Disclaimer:

David Keepes aka Dave K. is the writer for this blog titled "Finan¢ial $en$e". He is NOT a registered investment adviser nor does he work in any capacity for an SEC-registered, or any other, investment advisory firm. He writes in an educational capacity and urges and expects anyone who reads his posts and comments to not rely on them for accuracy, and for any reader to perform their own due diligence in regards to all investment and retirement matters. David holds a BA in Economics from the University of Illinois and an MBA from Eastern Illinois University. He is also a permanent Certified Cash Manager since 1995. He lives in Carrollton, Texas, with his wife and one child. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks.

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