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Goldman Sachs (GS) and JPMorgan (JPM) have sold CDS protection on more than $5T of debt around...

Goldman Sachs (GS) and JPMorgan (JPM) have sold CDS protection on more than $5T of debt around the globe, just don't expect to get detail on whom it was sold, who the counterparites are, or how the banks have hedged themselves (perfectly if you ask the banks). Only a run - similar to what has occurred to Jefferies (JEF) - is likely to force them to divulge any more information.
Comments (5)
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    Let's start a run and bring down the entire Global financial system then all of the OWS protesters, the fear mongering Media and crooked Politicians who are calling for the lynching of all of the so-called Banksters can try to figure out how they are going to eat and keep themselves warm this Winter. It will be fun. Let's do it. Larry, Darrel and Daryl, who live down county, are waiting with their guns loaded to come by and load up those Gold Maple Leafs you are hiding in the basement. You didn't know they knew did you?
    16 Nov 2011, 01:01 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    Why not..they know they are backstopped by the government if something bad happens...its all good on Wall Street...no need to regulate this theft...they donate to the politicians mucho mucho
    16 Nov 2011, 01:05 PM Reply Like
  • credit_man
    , contributor
    Comments (172) | Send Message
     
    this is what they sold,they bought probably close to that number
    the issue is counterparty risk created by change in value of cdc especially of course on potential distressed names such as greece italy etc...
    not that worrying when you think that even greece has not yet defaulted............you need default to create a mess in "simple" cds world .very different from mortgage CDO world.
    16 Nov 2011, 01:16 PM Reply Like
  • balois
    , contributor
    Comments (167) | Send Message
     
    Why are Obama, Geithner et al desperately urging the Europeans 'to get their house in order'?

     

    Because if one of the 'netted' CDS counterparties around the world seizes up and starts the infamous domino and, say, only a couple of percentages of those trillions of 'notional' suddenly become very real, the WS betting parlors are toast as toast can be.

     

    And where are these trillions booked? Off balance sheet, of course. Only their +/- replacement values, deviously 'netted', are shown on the real thing. Derivative 'netting' is the mother of all deceptions to make these bucket shops look less ugly.

     

    http://bit.ly/vwP2wE
    http://bit.ly/tM4szi
    16 Nov 2011, 04:41 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    If the EU collapses then the financial system of the entire World will freeze up for some period of time and that cannot be good
    16 Nov 2011, 08:12 PM Reply Like
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