Something Just Snapped At The Comex (Zero Hedge), page-59

Who? The depositors! Which is how it should be. The sooner that people who have money in a bank realise that they are just unsecured creditors of the bank, and what that actually means, the better for them. When you put money in the bank, you are lending it to them. If they can't pay it back, you lose it. Simples.


Banking 102: How come banks that only have a few hundred billion in assets have several trillion in derivatives? Why does every asset $, and every liability $, have multiple $$$ in derivatives hanging off it? Bonus marks will be given if anyone can determine a method for working out who the ultimate counter-party is and how solvent they are.