Goldman wants bonuses. Signs of recovery?
By Daniel at 9 November, 2009, 9:08 am
Do you know how much they have put at risk? (Guess it doesn’t matter if the taxpayers are going to bail you out). Looks like signs of an impending collapse if you ask me.
The following is a list of the top 10 banks holding derivatives. Note that the top 5 hold 97% of all derivatives. The following table lists the top ten banks and the notional value of derivatives they hold in $TRILLIONS.
JPMORGAN CHASE BANK NA…………….79.9
GOLDMAN SACHS BANK USA…………….40.5
BANK OF AMERICA NA……………………..39.1
CITIBANK NATIONAL ASSN……………….31.9
WELLS FARGO BANK NA…………………….5.1
HSBC BANK USA NATIONAL ASSN……….3.2
BANK OF NEW YORK MELLON…………….1.3
STATE STREET BANK&TRUST CO……….0.5
SUNTRUST BANK……………………………0.3
NATIONAL CITY BANK……………………….0.2
The following table lists the top 10 banks (holders of derivatives) ranked by assets (in $TRILLIONS).
JPMORGAN CHASE BANK NA……………….1.6
BANK OF AMERICA NA……………………….1.4
CITIBANK NATIONAL ASSN…………………1.2
WELLS FARGO BANK NA…………………….1.1
U S BANK NATIONAL ASSN………………….0.3
SUNTRUST BANK…………………………….0.2
BANK OF NEW YORK MELLON…………….0.2
HSBC BANK USA NATIONAL ASSN……….0.2
STATE STREET BANK&TRUST CO………..0.1
BRANCH BANKING&TRUST CO…………….0.1
Note that Goldman Sachs was #2 in terms of derivative holdings, but they don’t even show up in the list of top ten banks in terms of assets.
The following table lists the top 10 banks in terms of the ratio of the “TOTAL CREDIT EXPOSURE FROM ALL CONTRACTS” as a percentage of assets (as reported in the most OCC Derivatives Report 2nd qtr. 2009)
GOLDMAN SACHS BANK USA…………….155%
HSBC BANK USA NATIONAL ASSN………38%
JPMORGAN CHASE BANK NA………………24%
CITIBANK NATIONAL ASSN…………………20%
BANK OF AMERICA NA……………………….13%
NORTHERN TRUST CO……………………….11%
WELLS FARGO BANK NA………………………8%
BANK OF OKLAHOMA NA……………………..7%
BANK OF NEW YORK MELLON………………7%
STATE STREET BANK&TRUST CO………….6%
So Goldman Sachs, the second largest holder of derivatives, has a total credit exposure from derivatives equal to 155% of their assets!? This is not fabricated…this is the numbers reported to the OCC by Goldman Sachs.
Finally, the “bottom” ten banks (out of the top 25 reporting) in terms of the ratio of assets to derivatives. If a company has $1 in assets and $4 in derivatives, the ratio of assets to derivatives is 25%.
GOLDMAN SACHS BANK USA………………0.3%
JPMORGAN CHASE BANK NA………………2.1%
CITIBANK NATIONAL ASSN………………..3.6%
BANK OF AMERICA NA……………………….3.7%
HSBC BANK USA NATIONAL ASSN……….5.0%
BANK OF NEW YORK MELLON……………12.7%
WELLS FARGO BANK NA……………………21.5%
STATE STREET BANK&TRUST CO……….27.9%
NORTHERN TRUST CO………………………40.5%
BANK OF OKLAHOMA NA…………………..53.6%
In summary, Goldman Sachs has:
$40.5 TRILLION in derivatives….number 2 behind JPM as the top holder of derivatives
$119.6 BILLION in assets….not even in the top 10
$185.9 BILLION in total credit exposure from derivatives…..155% of assets…far and away the highest ratio of credit exposure to assets. JPM (the largest hold of derivatives) has a credit exposure to assets of just 24%. And I say “JUST” not because 24% is a small number, but because the exposure ratio for Goldman is roughly 6.5 times higher than JPM’s.
-Vics
No comments yet.