JP Morgan Joins Goldman in Keeping Investors in the dark on Italy derivatives risk

[marmar]

If you can't trust a bankster, who can you trust? http://1.bp.blogspot.com/-TS68uqraHDk/TZ_Hvlfg0KI/AAAAAAAAB54/lpSFlVwbcfA/s400/bankster+cartoon.jpg



(Bloomberg) JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS), among the world’s biggest traders of credit derivatives, disclosed to shareholders that they have sold protection on more than $5 trillion of debt globally.

Just don’t ask them how much of that was issued by Greece, Italy, Ireland, Portugal and Spain, known as the GIIPS.

As concerns mount that those countries may not be creditworthy, investors are being kept in the dark about how much risk U.S. banks face from a default. Firms including Goldman Sachs and JPMorgan don’t provide a full picture of potential losses and gains in such a scenario, giving only net numbers or excluding some derivatives altogether.

“If you don’t have to, generally people don’t see the advantage to doing it,” said Richard Lindsey, a former director of market regulation at the U.S. Securities and Exchange Commission who worked at Bear Stearns Cos. from 1999 through 2006. “On the other hand, if there were a run on Goldman Sachs tomorrow because the rumor was that they had exposure to Greece, you’d see them produce those numbers.” ...............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-11-16/jpmorgan-joins-goldman-keeping-investors-in-dark-on-italy-derivatives-risk.html

[lonestarnot]

1. Why do you think we're occupying Australia?

It's going to blow. Could also be bullets found at the White House grounds. Window broken but not penetrated.

[rfranklin]

2. And what they would produce would be a complete lie...

There are trillions in hidden deals and derivatives because there is no transparency.