Is Citi The Next AIG: 70 Trillion Reasons Why Citigroup And Congress Scrambled To Pass The Swaps “Push-Out” Rule

citigroup

Is Citi The Next AIG: 70 Trillion Reasons Why Citigroup And Congress Scrambled To Pass The Swaps “Push-Out” Rule (ZeroHedge, Jan 5, 2015):

Something stunning and unexpected took place in the third quarter: Citigroup, or rather its FDIC-insured Citibank National Association entity, just surpassed JPM and is now the biggest single holder of total derivatives in the US. Furthermore, as the charts below show, while every other bank was derisking its balance sheet, Citi not only increased its total derivative holdings by $1 trillion in Q2, but by a whopping, and perhaps even record, $9 trillion in the just concluded third quarter to $70.2 trillion!

Flashback:

GAO Audit Of The Federal Reserve Reveals $16 TRILLION In Secret Bailouts (Sott.net, Sep 1, 2012)::

The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows..

Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
and many many more including banks in Belgium of all places

View the 266-page GAO audit of the Federal Reserve (July 21st, 2011):

Sources:
US Government Accountability Office (GAO)
FULL PDF on GAO server.
Senator Sander’s Article

Comment: It’s not “socialism for the rich”; that’s an oxymoron.

It’s corporatism, i.e. fascism, as defined by Benito Mussolini.

 

7 thoughts on “Is Citi The Next AIG: 70 Trillion Reasons Why Citigroup And Congress Scrambled To Pass The Swaps “Push-Out” Rule

  1. Boy, does the FED need auditing!
    Just a rough estimate of these numbers total: $12.6 trillion.
    The so-called entire income of the US economy is $14-16 trillion….is it all just smoke and mirrors? Sure looks that way.

    What does this indicate besides the fact the US dollar is a piece of a huge printing press with zero value behind it.

    Even Benito Mussolini didn’t have the power of such a printing press……I would like to ask why the US is loaning German, Swiss and French banks such huge amounts of money but the banks are all international in their endless collusion and corruption. This is the most sickening article I have seen to date.

    I wonder what a real audit would show, not one done by their own people.

    Today, the rigged stock market showed a $331 billion dollar loss. I wonder if it were not so carefully rigged how far it would really fall. All reasons given are false. They blame it all on oil…..I wonder what it would really show if the truth were known.

    The numbers from this one article are staggering.

  2. Another thing that ought to have every American with FDIC protected funds concerned is that in that awful budget they passed last year, they gave the bankers the right to gamble with FDIC funds on derivatives. I looked up derivatives, not being a math science major in college, and it is a way of gambling on the behavior of something else……..also used in calculus. I could follow calculus in economics classes, but never learned anything like that.

    Someone told me the US would not let the EU join Russia. My response is how will the US stop them? If one looks at the 28 member states of the EU, it is very poorly constructed and has few regulations to control any of them. Most are not going to go broke to benefit the US, regardless of what the US says or does. The US cannot wage war on the world, and right now, 70% of world economies no longer conclude deals in US dollars.

    To me, it is very clear what is happening. The shocking drop in prices for consumer goods is staggering to me, but it is a strong sign of deflation, a result of falling wages. As people have less money to spend, the prices come down or the buyers wait. Computer purchases have made the instant gratification change. People go online and buy something in a few minutes, they no longer need to drive to the mall. But, online, they can compare prices, and the best price wins the buyer. Deflation is a common sense result, but it is deadly.

    People sitting on real estate waiting for the day it booms again will have to wait a few decades…..if ever. Nothing is replacing the old economy. If the Amazons and cheap food places win out, if Amazon can use drones to deliver, and junk food dumps can use robots to cook, millions of jobs will vanish. For every job, seven others are supported.

    Our technology has far exceeded our abilities to grow with them as a friend of mine put it. Plutonium is now floating on the top of the Pacific…..the biggest ocean in the world is dead…..yet, nobody knows, that truth is hidden so carefully regardless the lives of millions are at stake. Japan is dying, not a word is said…..

    The US, and the west coast of the Americas are dying, and people refuse to address the Fukushima issue at all. I just don’t understand it, nor do I understand how bankers can loan out more money than the entire economy creates in a year. Nothing makes sense any longer, my time is drawing to a close……and I am ready to go. In my lifetime, the world has gone mad.

    Had Orwell named his book 2004 instead of 1984, he would named a prophet. But, even he didn’t see the horror of Fukushima, and he was fortunate. The sea life I have so loved are dead. I don’t know what this dead ocean will do to the oxygen level on the planet….alive, it provided 50% of the world’s oxygen.

    I won’t be around to find out, and for that, I am profoundly grateful.

  3. Greed or incompetence, or perhaps a cocktail of both have delivered untenable economics for several decades.
    Common sense & logic haven’t prevailed for a long time. Lying is the dominant quality.
    Yet their complacent, sanctimonious and condescending response to anyone questioning their policies and their results insult even the basic simple shopkeeper whose principles put the banksters to shame.
    Anybody with an overdraft, loan, mortgage or savings, is in uncharted waters, and would be best looking for a nice safe beach…..now.

  4. To friend Stanley. Everyone is overdrawn, they just don’t know it.
    When an economic system is so corrupt that the dollar means nothing, property values are going nowhere but south……………..everyone is overdrawn.
    I know people sitting on multiple properties waiting for that day they can “flip” their properties, totally in denial regarding what has happened to the western economy. If I were twenty, I would emigrate to Russia.

    The so-called strong man of the EU, the Germans have debt to GDP of 225%, France 270%, even my beloved UK has one of 470% debt to GDP. How can any of these nations lead the EU out of its debt and into a position of power? Why they were so sloppy in choosing member nations is beyond me. When the nations applied for membership, that was the time to investigate and demand truth. Instead, so greedy for a position of power in the world economy, they grabbed all members they could and used their lies to claim an economic position on the world stage…..and for a decade or so, they looked good. Once things started going south………………they went south with it.

    Now, as to the US, they are in deep trouble because the world has moved away from it, and less than 70% use the dollar today, down from 100% this time in 2010. The US is the power of day before yesterday, and the leaders deny it with all their might. It is up, the overdraft is clear, and they pretend it is for someone else……….

    Friend Stanley, I don’t know where this leads except down. The problem is that the EU is tied to the US, and that means they go down, too. Already some of your members are finding ways around the dollar………, depressing, but true.

Leave a Comment