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Derivatives: The Real Reason Bernanke Funnels Trillions Into Wall Street Banks

Posted By admin On February 9, 2011 @ 4:56 am In Money Watch | Comments Disabled

Seeking Alpha [1]
Feb 9, 2011

We’ve been over the numerous BS excuses that US Dollar destroyer extraordinaire Ben Bernanke has made for QE enough times that today I’d rather simply focus on the REAL reason he continues to funnel TRILLIONS of Dollars into the Wall Street Banks.

I’ve written this analysis before. But given the enormity of what it entails, it’s worth repeating. The following paragraphs are the REAL reason Bernanke does what he does no matter what any other media outlet, book, investment expert, or guru tell you.

Bernanke is printing money and funneling it into the Wall Street banks for one reason and one reason only. That reason is: DERIVATIVES.

According to the Office of the Comptroller of the Currency’s Quarterly Report on Bank Trading and Derivatives Activities for the Second Quarter 2010 (most recent), the notional value of derivatives held by U.S. commercial banks is around $223.4 TRILLION.

Five banks account for 95% of this. Can you guess which five?

click to enlarge

Derivatives: The Real Reason Bernanke Funnels Trillions Into Wall Street Banks saupload gpc 2011 10 3 20top 20five 20derivative 20exposure thumb1 [2]

Looks a lot like a list of the banks that Ben Bernanke has focused on bailing out/ backstopping/ funneling cash since the Financial Crisis began, doesn’t it? When you consider the insane level of risk exposure here, you can see why the TRILLIONS he’s funneled into these institutions has failed to bring them even to pre-Lehman bankruptcy levels.

Derivatives: The Real Reason Bernanke Funnels Trillions Into Wall Street Banks saupload gpc 202 8 1

Full article here [1]

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URLs in this post:

[1] Seeking Alpha: http://seekingalpha.com/article/251375-derivatives-the-real-reason-bernanke-funnels-trillions-into-wall-street-banks

[2] Image: http://static.seekingalpha.com/uploads/2011/2/8/saupload_gpc_2011_10_3_20top_20five_20derivative_20exposure.png

[3] Stock up with Fresh Food that lasts with eFoodsDirect (AD): http://www.efoodsdirect.com/

[4] Image: http://www.stansberryresearch.com/pro/1011PSIENDVD/PPSILC35/PR

[5] Wall Street’s love affair with Ben Bernanke: http://www.prisonplanet.com/wall-street%e2%80%99s-love-affair-with-ben-bernanke.html

[6] Bernanke Discusses Occupy Wall Street I Don’t Blame Them For Protesting: http://www.prisonplanet.com/bernanke-discusses-occupy-wall-street-i-dont-blame-them-for-protesting.html

[7] ‘More robust’ regulation needed for Wall Street firms: Bernanke: http://www.prisonplanet.com/more-robust-regulation-needed-for-wall-street-firms-bernanke.html

[8] The Real Reason the Giant, Insolvent Banks Aren’t Being Broken Up: http://www.prisonplanet.com/the-real-reason-the-giant-insolvent-banks-arent-being-broken-up.html

[9] Derivatives: The Quadrillion Dollar Financial Casino Completely Dominated By The Big International Banks: http://www.prisonplanet.com/derivatives-the-quadrillion-dollar-financial-casino-completely-dominated-by-the-big-international-banks.html

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