This just in–give it an hour to hit the media, watch your bank stocks rise, then sell 8 hours later–works every time (but the confidence-gaps are getting shorter).
April 21 (Bloomberg) — Treasury Secretary Timothy Geithner told a congressional panel that the “vast majority” of U.S. banks have more capital than needed.
Well of course they do Tim.
Nobody can deny that, after all, as directly quoted in the latest OCC derivatives report:
Derivatives activity in the U.S. banking system is dominated by a small group of large financial institutions. Five large commercial banks represent 96% of total industry notional amount and 81% of industry net current credit exposure.
Therefore … of course the vast majority of banks are adequately capitalized. It’s the top 20 you keep bailing out that are the point here. As everyone knows by now the TOP US derivative holders, which are also the TOP US TARP bailout recipients, are the ones who are getting bailed out through TARP and the AIG conduit, and they represent a small minority of corrupt gamblers, committing fraud in a very big way.
Even if you take the top 20 U.S. derivative holders, which are all severely undercapitalized as a result of unwinding derivative bets, there are still THOUSANDS OF U.S. BANKS left over which are solvent – they just don’t make bad bets in the TRILLIONS, like JP Morgan, Bank of America, Citi, Wells Fargo and HSBC.
So your “market making” statement, though egregiously misleading, is absolutely true.
But aside from that, as long as we allow Banks to report profits Wells Fargo style, of course we’ll be seeing the CON-fidence restored.
I think we’re more interested in hearing what Barofsky and Warren have to say, since you’re time at the pulpit is coming to an end. You should be chatting with Lewis and Pandit about what opportunities there might be for you back at Goldman Sachs.
http://bloomberg.com/apps/news?pid=20601087&sid=aOE309jQZ_jY&refer=home
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My comment is not for this particular post. It’s the way I view not only this post but your entire site. KEEP UP THE GREAT WORK!!! Our tax dollars has already made these white collar criminals too wealthy already!
But why should they think any different? We’ve bailed out these people several times over the past century. They knew the taxpayers money would come to the rescue when they entered their ‘den of theives’.