Mega-Bank Equity Derivatives in the US Surge to $4+ Trillion, from $737 Billion in 2008

Rigged Game

Equity Derivative Contracts by Maturity at Federally Insured Banks

“The four banks with the most derivative activity hold 88.4 percent of all bank derivatives.” In other words, four banks out of 4,989 U.S. banks are putting the entire system at risk.

ByPam Martens and Russ Martens of Wall Street on Parade.

During Federal Reserve Chairman Jerome Powell’s press conference this past Wednesday, he took a question from Brian Cheung of Yahoo Finance. The question was: “It seems like to people on the outside who might not follow finance daily, they’re paying attention to things like GameStop, now Dogecoin. And it seems like there’s interesting reach for yield in this market to some extent — also Archegos. So, does the Fed see a relationship between low rates and easy policy to those things, and is there a financial stability concern from the Fed’s perspective at this time?”

As part of Powell’s long, meandering answer, he said this: “Leverage…

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