Over My Shoulder

U.S. Banks Aren’t Nearly Ready for Coming European Crisis

June 26, 2012

Yes, I am in Tuscany, but that doesn't mean I can't pay attention to what is happening. History is unfolding before our eyes, in perhaps the most dramatic financial period of my life; and at 62 that is saying a lot. This report shows how much of a problem the interactions among banks could be. I have written about this in the past. Looking at net derivative positions on a bank balance sheet is misleading. If the world goes FUBAR, then who is your counterparty? I am deeply concerned it will be the US taxpayer. Read this and join me in fretting (sigh!). (Although writing from the veranda, looking out over the Tuscan hills does mitigate a lot of worry…)

Download - US_Banks_Arent_Nearly_Ready_for_Coming_European_Crisis_-_Bloomberg.pdf