Thursday, January 7, 2010

JPM' Derivatives Are Larger than World's GDP

On January 3rd we reported on JPM's total derivative portfolio being $79T+.

It appears that 35% of these are rated BBB or worse. The ratio was 17.0% for Bear Stearns in February 2008 and 9.2% for Lehman Brothers in May 2008, according to a study done by Reggie Middleton.

JPM's current derivatives is larger than the world's GDP:

Remember that the top 25 US banks and holding have $293T, that's about 6 times larger than the world's GDP. Indeed, you bet they are too big too fail.

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