Can you name any banks that got in trouble by making these derivative bets?
I can name plenty that got in trouble by making "safe" mortgage loans. And they made those loans, USING OTHER PEOPLES MONEY!
When a bank like JP Morgan, just naming one, is allowed to ignore GAAP, and Banking 101 on balance sheets, and run up a 70 trillion NEGATIVE NET WORTH balance sheet
Wow! That's some imagination you've got. Can you show your math?
That’s ok with me too as they have stolen the peoples money and cannot pay it back
What did they steal? Where?
http://jonathanturley.org/2011/11/06/bank-of-america-the-great-derivatives-transfer/
Sir, with respect to this statement of yours...”Can you name any bank that got in trouble by making these derivative bets?” The answer is yes. That Bank would be Bank of America (see link above; it is an article by Jonathan Turley which is plain enough) although there are several other big American Banks that are well known world wide to be “in EQUAL jeopardy” to B of A. B of A right now is operating on stock that is rated “junk status”. That speaks for itself and to the thrust of your arguments.
Regarding your statement about Mortgage Loans, I find very little disagreement. My “little” country bank has never made a bad mortgage loan. This simple fact speaks to the corruption between government and the “big” banks and the whole “too big to fail” mentality that is one root cause of all this.
Regarding your question about “show your math”, LOL, it’s not a “math” problem I am speaking of. It IS about the honest application of GAAP.........which has been completely blown away by these derivative schemes. Indeed, “honesty” in any form being practiced by anybody (as far as I know) is gone from the whole subject of banking and derivatives.
On your question of “What did they steal?”.........I could write a book and many have been written on the subject; but speaking of just my own first hand experience with banks in Texas in the eighties, and Austin in particular, I can tell you that only one bank that I know of survived. Hundreds of millions of taxpayer money was lost (some think stolen).
And, your right, most of the underlying causes back in those days were bad or just plain “crooked” mortgage loans. I personally witnessed a 1.5 million loan liquidated at just one of hundreds of auctions for $41,000.00. Arguably, the difference was in this case, as in many cases, stolen!
I don’t believe ANY S & L (in the Austin area) survived and several (not enough) of those guys went to jail. There is no such thing as an S & L to my knowledge anymore. It is not in dispute that the most fundamental reason they failed, on a bumper sticker is dishonest bankers making dishonest loans or honest bankers making dumb stupid loans, and one or two of them went to jail.
Along with them, most believe there should have been some regulators and government officials going to jail too. But, I don’t think any ever did. We see that today in our government. There simply is no accountability. When sound banking practices are observed by honest bankers, and the regulators do their job, and banks are not allowed to get too big, evidence shows we simply don’t have these problems. And of course there is the politicians involvement in all this but I will save my breath on them.
Now, Austin banks and S&L’s in the eighties were playing tiddly winks compared to these derivative folks today. But, the principal is the same, tens of millions went into bankers and select clients pockets BY DESIGN and INTENT and DISREGARD for well known SOUND banking practices. One banker was flying to work in a helicopter! He and several other of his banker colleagues in the area went to prison (for stealing funds). At least One of Austin’s leading citizens went to prison too. But, I won’t name him out of respect for his surviving family.
It’s the “Intent” that makes what these derivative guys are doing criminal and what I am mad about. These bastards know they are doing wrong while they are doing it and they use their ill gotten gains as financial clout to buy politicians and get them to force regulators to do their bidding so that when and IF (not much risk) the prosecutors come knocking they (the bankers) have some cover. B of A is now trying to slide an amount of their derivatives, equal to Federal Coverage, in Merrill Lynch’s back door so the government will cover their ass! More theft! Read the Turley article. A young aggressive prosecutor could make a big name for himself by putting some of these top bankers in prison.
I will save you some trouble and simply note that I’m sure from the tone of your comments that you disagree with a lot or all or most of what I say. That is your right.
Thanks for your comments.