Wall Street On Parade

JPMorgan Chase’s Derivatives Spike by $14 Trillion in First Quarter to Six-Year High of $60 Trillion

JPMorgan Chase’s Derivatives Spike by $14 Trillion in First Quarter to Six-Year High of $60 Trillion

By Pam Martens and Russ Martens: June 24, 2022 ~ Add JPMorgan Chase, the biggest bank in the United States with an unprecedented five criminal felony counts since 2014, to the growing list of debacles of which the Fed has lost control. The Fed has its bank examiners pouring over the books of JPMorgan Chase on an ongoing basis, but somehow the bank’s dangerous book of derivatives has been allowed to spike by $14.42 trillion in the first quarter of this year, soaring from $45.84 trillion on December 31, 2021 to $60.26 trillion on March 31, 2022. That’s an increase of 24 percent in a three-month span. That information comes from page 18 of the newly-released report on derivatives in the banking system from the Office of the Comptroller of the Currency (OCC). The Dodd-Frank Act of 2010 was supposed to stop the insanity of unfathomable amounts of risky derivatives being … Continue reading →

-

Is the Crypto Threat to U.S. Financial Stability $889 Billion or $10 Trillion?

Is the Crypto Threat to U.S. Financial Stability $889 Billion or $10 Trillion?

By Pam Martens and Russ Martens: June 23, 2022 ~ Yesterday, Benzinga reported on a curious statement made by Fed Chair Jerome Powell during his appearance before the Senate Banking Committee on Wednesday. Powell was asked by Senator Kyrsten Sinema (D-AZ) if the Fed had been tracking the events in the crypto markets in the past several weeks. Powell responded that the Fed was watching those events “very carefully” but the Fed “did not see significant macro-economic implications.” The article goes on to lend credence to this observation from the Fed by noting the following: “It is important to note the entire cryptocurrency market cap is $889.25 billion versus the American GDP, which is $25.34 trillion, and an equities market that controls more than $49 trillion.” Before we drill down into the weeds of that crypto market cap figure, it’s important to note that former Fed Chair Alan Greenspan told Congress that he saw no major … Continue reading →

-

Crypto Victims’ Cries for Help Are Piling Up at a Federal Complaint Center

Crypto Victims’ Cries for Help Are Piling Up at a Federal Complaint Center

By Pam Martens and Russ Martens: June 22, 2022 ~ The Consumer Financial Protection Bureau (CFPB) is the federal agency that was created under the Dodd-Frank Act of 2010 in response to Wall Street’s harrowing abuses to average Americans in the leadup to the financial crash of 2008. One of its key benefits is that it has a complaint database where consumers can post their complaints to the agency, and the general public and reporters can read those complaints on a public website. The general public benefits by seeing what types of complaints are being made against a financial institution they might be considering doing business with and reporters can look for dangerous patterns that are emerging. We delved into a specific area of complaints at the CFPB yesterday. We put the word “Bitcoin” into the search box and pulled up 1,031 matches. Next we searched under the word “crypto” and … Continue reading →

-

Has Crypto Endangered Federally-Insured Big Banks? Ask State Street

Has Crypto Endangered Federally-Insured Big Banks? Ask State Street

By Pam Martens and Russ Martens: June 21, 2022 ~ There have been a number of articles lately attempting to reassure Americans that the crypto carnage will not cause financial instability or an economic collapse in the U.S. like that of 2008. The fact is, absolutely no one can say with any degree of certainty what will be the outcome of this unprecedented era of reckless investing. That’s because anything that causes the megabanks on Wall Street to pull back from lending to one another or to major counterparties – out of fear that the institution has dangerous crypto exposure – could cause the same contagion effect that occurred in 2008 from opaque derivatives and toxic subprime debt exposures. We decided to have a look at the websites and quarterly SEC filings (10-Qs) made by the megabanks on Wall Street, the ones that since the repeal of the Glass-Steagall Act in … Continue reading →

-

After Crypto Money Piled into Campaign Coffers of Senators Lummis and Gillibrand, They Introduced a Sweetheart Legislative Bill for Crypto

After Crypto Money Piled into Campaign Coffers of Senators Lummis and Gillibrand, They Introduced a Sweetheart Legislative Bill for Crypto

By Pam Martens and Russ Martens: June 20 , 2022 ~ On June 7, Senator Kirsten Gillibrand, a Democrat from New York who sits on the Senate Agriculture Committee which oversees commodities, and Senator Cynthia Lummis, a Republican from Wyoming who sits on the Senate Banking Committee which oversees Wall Street and trading, introduced a bill as an early Christmas present to the crypto industry. It carries the Alice in Wonderland title of the Responsible Financial Innovation Act. In reality, it is an irresponsible piece of legislation whose sponsorship by these two women only makes sense when you understand that their campaign coffers are being stuffed with money from the crypto industry. Let’s start with Lummis. A $5800 donation is not a big deal to every member of Congress. But it is a big deal to a Senator from Wyoming, a state whose population is less than 600,000. According to data … Continue reading →

-