SOS Derivatives

Credit Exposure to Capital ratio. Amounts in $Millions Bank Assets /Derivatives/
Credit Exposure to Capital Ratio

J.P. Morgan Chase

$1,768,657
$87,688,008
400.2

Citi
$1,207,007
$35,645,429
259.5

Bank Of America
$1,359,071
$38,673,967
177.6

HSBC
$181,587
$4,133,712
664.2

The assets comprise largely of Real estate, residential mortgage, student, car and credit card loans. With the rise in defaulting mortgages, delinquent credit card and other debt the problem can only get worse. To recapitalize the banks to the point where exposure is low enough to encourage lending would take trillions and that's before any more fallout from the collapsing economy. Lending also requires creditworthy borrowers, the number of which is in a nosedive.

The $165 Trillion in notional derivatives and the associated credit risk related to $15 Trillion in Credit Default Swaps illustrated below is the poison apple that the taxpayer has been forced to bite into.

Bank
Total Credit Derivatives

J.P. Morgan Chase
$9,177,731

Citi
$2,939,783

Bank Of America
$2,480,672

HSBC
$1,152,948