WCP: "Understanding The Global Currency Reset"

According to the most recent data from the Office of the Comptroller of the Currency (OCC), the regulator of national banks, as of March 31, 2017 the following five bank holding companies controlled the lion’s share of the derivatives market: Citigroup held $54.8 trillion in notional (face amount) of derivatives; JPMorgan Chase held $48.6 trillion; Goldman Sachs Group had $45.6 trillion; Bank of America held $35.8 trillion while Morgan Stanley sat atop $30.8 trillion. According to the OCC report, the top 25 bank holding companies controlled a total of $242.3 trillion in notional derivatives at the end of the first quarter of 2017, with these five bank holding companies accounting for 89 percent of that amount. [See 16:00 into https://www.youtube.com/watch?v=efVOgx9GBm0]

The Fed’s Comprehensive Capital Analysis and Review stress tests (CCAR), the results of which were announced on June 28, gave the green light to these mega Wall Street banks to eat away at their capital through monster share buybacks and increases in their dividends to shareholders. This effectively ignored the concentration of derivatives held by these five firms and their heavily intertwined connectivity that results from the obvious fact that they share many of the same counterparties to these derivative contracts. The reason these mega bank stocks trade like a herd in a stressed market environment is because these banks are a herd