How to fuck up the economy by the U.S. too big to fail US banks.
Global swap markets – missing transactions reflected an effort by some of the largest U.S. banks — including Goldman Sachs, JP Morgan Chase, Citigroup, Bank of America, and Morgan Stanley — to get around new regulations on derivatives enacted in the wake of the financial crisis, say current and former financial regulators.
This leaves a concentrated knot of risk at the heart of the financial system.
The U.S. derivatives market has shrunk but remains large, with outstanding contracts worth $220 trillion at face value.
And the top five top banks account for 92 percent of that.
The data in the U.S. is misleading.
The U.S. banks were still trading as vigorously as ever – but their trades – booked through London affiliates, without any credit guarantees linking them back to the U.S., were now showing up in the data as the work of European banks.
Note: In reading this please note the obvious – bankers have continued the same shit that led to the 2008 financial crisis. In this case ‘affiliates’ trading through London. No one is safe – maybe this time someone will be incarcerated through knowingly bending the rules to suit themselves.