What if…another Lehman Bros. crisis hit but this time to the Central Banks?

What if…another Lehman Bros. crisis hit but this time to the Central Banks?

Published on 05/08/2013

Lehman Bros . collapsed in 2008 with equity of $22B on assets of $700B [3%].

What about our Central Banks today?

  • TODAY, the US Federal Reserve has $54B of capital on assets of $3.6T [1.53%]
  • While the Bank of England has a ratio of 0.84%.

So….. two major Central Banks have less equity than Lehman’s….so what if another crisis occurred and wiped out these banks’ core capital? Who lends to the Lenders of Last Resort?

It would mean that any counterparty holding their liabilities ie holders of Dollars or Sterling, would lose ie currency collapse.

Of course, it won’t happen, will it? Protect Your Assets Now.

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