Top 5 Banks Have 45:1 Leverage

Top 5 Banks Have 45:1 Leverage

Bank of America, Citibank, Goldman Sachs, HSBC and JPMorgan —collectively accounted for more than 50% of the $700T Over the Counter [OTC] derivatives trades worldwide in total notional value.

The top five banks’ assets and total exposures to derivatives activities showed a leverage of one to 45 times. The OCC report [U.S. Office of the Comptroller of the Currency] showed that JPMorgan Chase North America has total assets of $1.8T to cover $70T worth of OTC derivatives exposure. JPMorgan Chase & Co has total assets of $2.3T, the report also stated.

Leave a Comment