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Bernard L. Madoff

American Bank Exposure to Europe

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Global ramifications could be profound, with major US banks heavily exposed to Greek debt.

Five companies alone have $2.5 trillion in exposure, with Citigroup at 77.7 percent of the total, Morgan Stanley at 65.6 percent, and JPMorgan Chase at 59.8 percent, according to Bove's research.

"What you're faced with is you simply do not know which countries are solvent, which countries are insolvent," Bove said. "You do not know who the counterparties are for these insolvent countries, so you run for the hills."

Read more: http://www.cnbc.com/id/36998246

May 7 (Bloomberg) -- The cost of insuring against losses on European bank bonds soared to a record, surpassing levels triggered by the collapse of Lehman Brothers Holdings Inc., as the sovereign debt crisis deepened.

The Markit iTraxx Financial Index of credit-default swaps on 25 banks and insurers soared as much as 40 basis points to 223, according to JPMorgan Chase & Co. The index closed at 212 basis points March 9, 2009. Swaps on Greece, Portugal, Spain and Italy rose to or near all-time high levels.

http://www.bloomberg.com/apps/news?pid=20601085&sid=afPiOhKxYSq8

The cost of insuring against losses on European bank bonds soared to a record, surpassing levels triggered by the collapse of Lehman Brothers Holdings Inc.

:scared: :scared: :scared:

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Five companies alone have $2.5 trillion in exposure, with Citigroup at 77.7 percent of the total, Morgan Stanley at 65.6 percent, and JPMorgan Chase at 59.8 percent, according to Bove's research.

There must be someone sticking pins into a voodoo doll with citigroup written all over it... They are right there everytime there is a economic disaster. I reckon if they offered to loan me a few billion I would knock it back. Likely I'd get hit by the next passing bus.

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There must be someone sticking pins into a voodoo doll with citigroup written all over it... They are right there everytime there is a economic disaster. I reckon if they offered to loan me a few billion I would knock it back. Likely I'd get hit by the next passing bus.

Classic :thumbsup:

I like this

You do not know who the counterparties are for these insolvent countries, so you run for the hills

This is before the CRE, AltA and OptionArm maelstrom hits them later this year. This is before some of their states default. Wanna buy a bank stock? :rolleyes:

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How can they have $2.5 trillion in exposure when Greece debt is only around $400b (from memory)?

I assume this is derivatives exposure and if so this level of exposure doesn't necessarily mean this is what they will have lost this figure off their balance sheet if Greece defaults...?

This worlds financial systems are just a ponzi scheme, a house of cards waiting to collapse...

Edited by hobo-jo

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How can they have $2.5 trillion in exposure when Greece debt is only around $400b (from memory)?

I assume this is derivatives exposure and if so this level of exposure doesn't necessarily mean this is what they will have lost this figure off their balance sheet if Greece defaults...?

This worlds financial systems are just a ponzi scheme, a house of cards waiting to collapse...

if you look at the source article it appears that this is the US banks exposure to the pigs/europe. it's not very clear but that's what i deduced

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