The Top 25 Global “Too Big to Fail Banks” and What You Should Know About Them

1 Industrial & Commercial Bank                 $2,813.5B                             China

2 HSBC Holdings                                      $2,692.5                               United Kingdom

3 Deutsche Bank                                      $2,655.7                               Germany

4 BNP Paribas                                          $2,517.1                               France

5 Mitsubishi UFJ Financial Group               $2,488.8                               Japan

6 Credit Agricole                                       $2,431.4                               France

7 Barclays                                                $2,420.6                               United Kingdom

8 JPMorgan Chase                                    $2,359.1                               United States

9 Bank of America                                     $2,258.5                               United States

10 China Construction Bank                       $2,241.0                               China

11 Royal Bank of Scotland Group                $2,131.4                               United Kingdom

12 Agricultural Bank of China                      $2,124.2                               China

13 Bank of China                                       $2,033.8                               China

14 Mizuho Financial Group                         $1,882.9                               Japan

15 Citigroup                                              $1,864.7                               United States

16 Banco Santander                                   $1,675.5                               Spain

17 Societe Generale                                   $1,650.5                               France

18 Sumitomo Mitsui Financial Group            $1,578.2                               Japan

19 Lloyds Banking Group                            $1,501.7                               United Kingdom

20 Wells Fargo                                           $1,423.0                               United States

21 UBS                                                      $1,376.8                               Switzerland

22 UniCredit                                                $1,223.1                               Italy

23 Credit Suisse Group                                $1,010.6                               Switzerland

24 Goldman Sachs Group                             $   938.6                              United States

25 Nordea Bank                                          $   894.0                                Sweden
Source: Bloomberg.com

 

The first thing that should stand out to you is how much of the global wealth is “tied up” in these top 25 banks’ assets. It is a staggering $43 Trillion dollars or nearly half of the global GDP. It is also nearly half of the world’s wealth lying stagnant and not working in the economy. This goes a long way to explain why global growth is not occurring.

Now here is the most startling part. Let’s just take one of these banks, say No.2 HSBC.  Check out what HSBC owns here http://removingtheshackles.blogspot.com/. It is important that you understand these “banks” are not “banks”, they are the front to controlling the global economy. This illustrates how when a bank like HSBC does collapse, and it will, they take down a whole lot more than you can imagine. Further, it is this reality that they used to blackmail governments to fork over public monies to save their butts.  What you find interesting is at the near bottom of the list is SWIFT. SWIFT (Society for Worldwide Interbank Financial Telecommunication) provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. Swift also sells software and services to financial institutions, much of it for use on the SWIFTNet Network, and ISO 9362. Business Identifier Codes (BICs) are popularly known as “SWIFT codes”. Basically- SWIFT codes move ALL the money all over the world, and HSBC owns it 100%.

 Keep in mind this in depth research is on just one of the top 25 banks, so we can reasonably assume they each have as extensive holdings on a global basis. It is not conspiracy theory to say fewer than 200 entities control 99% of the economy. This is very real and very detrimental to all of us. Here’s why:

These banks are also exposed to credit swaps that could exceed $12 Trillion and could be much higher, given the over-the- counter credit swaps market is a staggering $633 Trillion! Just let that sink in for a moment. This is nearly 6 times the global GDP! Are you beginning to see how fragile this house of cards really is, in reality. Let’s put it in terms we can understand. This is like you being in debt at 6 or 7 times your net worth!  The irony here is that none of these banks would even look at you for a loan with those kinds of numbers. They would claim “game over” for you. However, they do expect us to bail them both out and in!

This is beyond insane. It is even beyond Twilight Zone mentality. Many of these banks were recipients of Bailouts from the Fed in 2009 and 2010, which in the end, truth told, was nearly $7 trillion dollars and we have no idea how much the EU central banks contributed to bailing their butts out of the fire, but I am sure it was also several trillion dollars! Yet, here we are in 2013 and the situation is worse than in 2008.  

Now here is the sobering reality. The GAME IS OVER for these guys! Maybe the fat lady hasn’t sung yet, but the game is over. There will be a total collapse of the global economy soon and the Fed and all the central banks of the world will not be able to bailout these banks, print money fast enough, and even if they were successful in raiding every individual’s bank accounts and assets for 100%, instead of the 47% hit the people with assets in the Cyprus banks took, it still wouldn’t be enough to cover this disaster. These are hard truths to face, but the numbers don’t lie, even though everyone involved is lying, period.  They know this doomsday scenario is just around the corner, so they are simply trying to rake as much personal wealth as possible on the various trading schemes before the crash occurs.

It is time to prepare for this reality. When the banks close it will be too late. This is not to say run the banks, because even now you can’t do that. Just ask anyone in Cyprus or Spain how that worked out for them. No, the reality is you have to begin to think how you will survive without ANY money, for say a year or two. It is a crime that those we trusted to regulate these fools have totally failed us.

The good news is that after the collapse, we, as “we the people”, will have the opportunity to reset the globally economy in a manner that is fair, equitable, and vibrant. To be sure, this should never again occur in this world. It will be “we the people” who will fix this mess and we should never tolerate another entity, no matter if it is a bank or a corporation to ever be “too big to fail”!

How “Bail-outs” and Bail-ins” Are Just a Huge Transfer of Wealth

In our continuing effort to educate even those who call themselves “experts” on the economy, we have to continue with the facts that the banksters, MSM, and dupes that call themselves legislators don’t want you to see or understand.  We have, in recent past articles, shown you just the facts about the bailouts and now the bail-ins going on in the EU for what they are, just a huge transfer of public wealth to the hands a few elites in banking and the central banking system.

As we watch the economy continue to falter, and jobs vanish, don’t you wonder where all the so-called QE monies really went that were meant to stimulate the economy? Here we are, 5 years into this so-called recovery and unemployment in the US is still 7.6% and only 47% of Americans hold full time jobs.  The number one employer is WalMart and the number two employer is Kelly Temp Services! In the EU, there is a 40% unemployment rate and people’s bank accounts are being raided without consent to supposedly prop up the banks (Bail-Ins). Government services are being slashed everywhere and still nothing seems to be improving.

Well, even though you are not supposed to understand this, let’s look at the Central Bank Practices and especially at the issue of banks’ reserves at the FED and other central banks in the world. This is a complex subject with much technical jargon that confuses a lot of people. Besides, don’t be surprised that your bank branch manager on Main Street as well as lecturers in finance and economics are also ignorant on this issue. In the case of the latter, this subject is hardly taught in universities. And this is the reason why the scam has not been exposed or understood. But, for those who have a basic idea of bank reserves and how this huge amount of “excess reserves” have been created by the FED, have you asked yourself, “Why have I not spotted this scam earlier?”

Many have been taken in by the propaganda that “excess reserves” is the means to encourage banks to extend credit (give out loans) to desperate borrowers who needed urgent funds to survive and to jump-start their businesses. This propaganda is grounded on the assumption that there is insufficient liquidity in the market. This assumption is misleading.

What are Excess Reserves? The latest figures obtained from the H.3 release from the Board of Governors of the Federal Reserve System (the FED) shows excess reserves of about $1.794 trillion (data as of April 17, 2013)! This level of excess reserves is unprecedented and is the highest since reserves were legislated as a requirement.

Excess reserves are the surplus of reserves against deposits and certain other liabilities that depository institutions (collectively referred to as “banks”) hold above the statutory amounts that the FED requires in accordance with the law. The general requirement is that banks maintain reserves at least equal to ten percent of liabilities payable on demand. There is now data to show that as much as 50% of these “excess reserves” are held for United States banking offices of foreign banks.

 

Let me elaborate. Banks receives deposits from their customers which are inter-alia placed in current accounts (checking accounts) or time deposits (fixed deposit accounts) and which the customer can at any time withdraw from the bank. But, banking practice shows that at any one time, only a small fraction of customers would withdraw their deposits in full. So, there was no need for banks to keep all the deposits in their vaults to meet such a demand for payment. Laws were enacted to allow banks to keep in reserve a small amount of monies to meet such demands. That being the case – if only 10% reserves is all that is required according to banking regulations to meet repayment demands, why should there be such a huge amount of reserves, beyond the legal requirement of 10%?

Understand the fact that when a customer deposits monies in a bank, he is in law a “creditor” (he has loaned the monies to the bank) and the bank is a “debtor” (and he can use the money in any way at his absolute discretion, even to speculate). This is because the ownership of the money has been transferred to the bank. The money is no longer the money of the customer. It now belongs to the bank. And as long as the bank is solvent, and there is a demand for repayment of the deposit, the law of contract stipulates that the bank must repay together with the agreed interest that has accrued.

silver-coins-bars

Now here is where, legally it gets interesting.. if at the time when demand for repayment is made, the bank is bankrupt (i.e. in a liquidation) then the depositor/customer in law is deemed an “unsecured creditor” and must join the queue of all unsecured creditors to share the proceeds of any remaining assets after all secured creditors have been paid. If there are no remaining assets, the depositors get zilch! That is why and as illustrated in the bank confiscation of deposits in Cyprus banks acting in concert with central banks can expropriate all customers’ deposits to pay their secured creditors. You catching on here?

How did the Excess Reserves balloon to a massive US$1.794 Trillion? The Fed’s overall balance sheet has expanded from about $909 billion before the crisis (i.e. before 2008) to about $3.3 trillion in 2013. Of the $2.4 trillion increase, approximately $1.8 trillion is excess reserves. Banks were up to their eyeballs in toxic assets (financial sewage) and they are drowning in this cesspool but for the rescue efforts of the FED and other central banks they would have sunk to the bottom of the cesspool.

The FED created trillions of money out of thin air by a digital entry in its books to purchase the toxic assets (financial sewage) in batches from the banks. The objective of QEs is to save the banks and to save the US Treasury from bankruptcy and not Joe Six-Pack. However, in this article we are focusing on the banks. So, let’s say that the banks HAVE OVER US$10 trillion of financial sewage AND WANT TO DISPOSE THEM WITHOUT AROUSING ANY ALARM.  The monies flowed from the FED to the banks to purchase the financial sewage. The financial sewage is sucked into the FED’s financial vacuum. However the monies are not channeled to the banks’ branches in Main Street to be loaned out to Joe Six-Pack. It is re-routed back to the FED as “reserves”. When the reserves exceed the minimum 10% requirement, the excess is classified as “excess reserves.” This is merely a book entry! And adding insult and injury to Joe Six-Pack, interest of 0.25% is paid on the reserves (i.e. giving profits to the banks).

The banks are allowed to survive in spite of their massive frauds and other financial hanky-pankey. The banks are allowed to use digital technology (e.g. high-frequency trading) to corner the market and destroy Joe-Six-Pack. But, Joe-Six-Pack has to suffer the indignity of unemployment, foreclosures, reduced unemployment benefits, surviving on food-stamps, and other austerity measures. Starting to see the picture here and how this crap is how we are being fleeced like passive little lambs?

“The money flows from the FED to the Too Big To Fail (TBTF) Banksters to Buy Toxic Assets, which is sucked in by the FED’s Financial Vacuum, thereby cleansing the TBTF banks’ balance sheets. The money is then re-routed back to the FED as “excess reserves”.

The FED create monies out of thin air to bail-out the Too Big To Fail banks (TBTF banks) by purchasing their financial sewage (valued at book value as opposed to mark-to-market i.e. instead of paying only 10 cents on the dollar or less, the FED pays dollar for dollar) thereby removing the financial sewage from the balance sheet of the TBTF banks to reflect a “healthier” balance sheet as there are now less financial sewage in the banking system. And, because the TBTF banks are suffering losses, the FED pays 0.25% interest on the “excess reserves” created so as to generate easy profits for the TBTF banks for doing nothing at all. They are earning profits merely from a book-entry in the FED’s books!

The propaganda which I referred to earlier that such monies were meant to enable the TBTF banks to extend credit is therefore bullshit and a load of financial nonsense. So why are the so-called reputable economists at leading universities such as Harvard, Princeton, Cambridge, Oxford etc. touting this propaganda?  In spite of all this past mismanagement, the practices by the TBTF banks is continuing unabated, including the so-called record profits declared by the TBTF banks and the huge bonuses given out to the bankers and their hire-lings. These practices are all just window dressing as long as the toxic assets are not marked-to-market and not declared as junk. If such assets are properly declared, the fiat money banking system would be staring at a bottomless black-hole of toxic assets and indebtedness! What’s worse is these same TBTF banks are still up to their eyeballs in toxic debt, such as derivatives, credit swaps, etc.  In fact JP Morgan Chase alone has exposure more than twice the US GDP! JPMC is exposed just in interest rate derivatives at $45 TRILLION. Take a look at the Fed’s H.8 report to understand how bad it really is.

This has compounded the problem. After the Global Financial Tsunami, all the TBTF banks don’t have enough reserves to meet the withdrawal of deposits placed by customers before the crash. The TBTF banks don’t even have the requisite 10% reserves to meet these demand deposits (Old Deposits).  However, banks are continuing to receive deposits from customers of which 10% of these deposits must be transferred to the FED as reserves. Data shows that customers’ deposits are at an all time high (since 2007), but bank lending is not keeping pace.

Banks are not lending out what they are entitled to do so for two reasons:

1) The banks are using a portion of the “New Deposits” to meet the liability of having to repay the “Old Deposits” in the system. This is because even the excess reserves (created under the QE) are insufficient to meet the demand for repayment of the Old Deposits. So, part of the current New Deposits would be utilized for that purpose. This is the Deposit Ponzi Scheme.

2) Banks are earning no risk profits from interests on “Excess Reserves” at the FED and are only willing to lend to credible borrowers. In the present economic climate, there are just too few credible customers. This is another reason why banks are not lending.

When QE stops, the FED would not be out on a limb because the monies used to purchase the financial sewage from the TBTF banks are still in the FED’s books. The Fed need only to have a reverse entry in it’s books after re-packaging the financial sewage INTO SOME NEW FORM OF FINANCIAL PRODUCT OR WHATEVER (which the TBTF banks are adept at doing before the crash and are still continuing to do so) and dumping them back to the banks and another generation of stupid investors at such time when and if the banks would have recovered. But with the TBTF banks continuing their same toxic practices unabated there is no recovery, ever. Further, with the bank’s unbridled right (sanctioned by law) to confiscate the customers’ deposits (now commonly referred as “Bail-In”) using the Cyprus template, banks have additional financial resources to continue with the plunder and financial rape of the public.

I hope this helps us understand that this unabated transfer of wealth ends with our economic enslavement. The public must be able to understand these fundamentals and demand the end to this fractional banking system and the end of the FED. Your congressmen and women are dupes in this game, as they really don’t understand and therefore do what they are told to do. Inform them WE GET IT and WE DON”T LIKE IT, AND IT MUST STOP NOW! Fire the Fed, break up the TBTF banks and return to pre-1913 banking system controlled by the US Treasury. WAKE UP!  A special thanks to Matthias Chang of Global Research, who unknowingly contributed so much to this article.

So Where Did All of Our Money Go?

As I have reported in this blog and the issue has been featured in a number of articles from the New York Times, the Financial Times and the Wall Street Journal, trillions of dollars have been taken out of the global economy or it is sitting “on the sidelines”, in addition to the ludicrous profits taken by the banksters.  So where did our money go?

In two words, offshore banking. Offshore banking is an important part of the international financial system (read scheme here). Experts believe that as much as half the world’s capital flows through offshore centers. Tax havens have 1.2% of the world’s population and hold 26% of the world’s wealth, including 31% of the net profits of United States multinationals. According to Merrill Lynch and Gemini Consulting‘s “World Wealth Report” for 2000, one third of the wealth of the world’s “high net-worth individuals”—nearly $6 trillion out of $17.5 trillion—may now be held offshore. Some $3 trillion is in deposits in tax haven banks and the rest is in securities held by international business companies (IBCs) and trusts. These numbers have quadrupled since 2000.

The IMF has said that between $600 billion and $1.5 trillion of illicit money is laundered annually, equal to 2% to 5% of global economic output. Today, offshore is where most of the world’s drug money is allegedly laundered, estimated at up to $500 billion a year, more than the total income of the world’s poorest 20%. Add the proceeds of tax evasion and the figure skyrockets to $1 trillion. Another few hundred billion come from fraud and corruption. “These offshore centers awash in money are the hub of a colossal, underground network of crime, fraud, and corruption” commented Lucy Komisar quoting these statistics. Among offshore banks, Swiss banks hold an estimated 35% of the world’s private and institutional funds (or 3 trillion Swiss francs), and the Cayman Islands (1.9 trillion US dollars in deposits) are the fifth largest banking centre globally in terms of deposits. However, recent data by the Swiss National Bank show that the assets held by foreign persons in Swiss bank accounts declined by 28.1% between January 2008 and November 2009. This was a direct result of the US making demands that Swiss banks report US citizen deposits to the Fed.

Offshore financial centres include:

Antigua and Barbuda , Bahamas, Barbados, Belize, Bermuda, British Virgin Islands

Cayman Islands, Channel Islands (Jersey, Guernsey, Alderney, Sark and Herm)

Cook Islands, Cyprus, Dominica, Ghana, Hong Kong, Isle of Man, Labuan, Malaysia

Liechtenstein, Luxembourg, Malta, Macau, Mauritius, Monaco, Montserrat, Nauru

New Zealand, Panama, Saint Kitts and Nevis, Seychelles, Singapore, Switzerland and the

Turks and Caicos Islands

While there are a number of independent banks serving the offshore banking needs, several of the major banks and financial institutions have offshore branches providing the same services.  HSBC, Bank of America, Lloyds, and Credit Suisse, just to name a few.  All offering “Offshore Wealth Management” services.

You and I live in a totally different world than the ultra-rich and the international banking elite do.  Many of them live in a world where they simply do not pay income taxes.  Today, it is estimated that a third of all the wealth in the world is held in offshore banks.  So why is so much of the wealth of the globe located in places such as Monaco, the Cayman Islands, Bermuda, the Bahamas, and the Isle of Man?  It isn’t because those are fun places to visit.  It is to avoid taxes, period. The super wealthy and the international banking elite think that it is really funny that our paychecks are constantly being drained by taxes, and retirement deposits while they literally pay nothing at all.  These incredibly rich elitists make a ton of money doing business in wealthy western nations and then they transfer virtually all of their profits offshore where they don’t have to contribute any of it in taxes.  It works out really great for them, but it sucks for the rest of us.

According to an article in Forbes magazine, there is a total of approximately 15 trillion to 20 trillion dollars in offshore bank accounts, brokerage accounts and hedge fund portfolios. A recent article in the Guardian stated that a third of all the wealth on the entire globe is held in offshore banks and that the vast majority of international banking transactions take place in these tax havens….

On a conservative estimate, a third of the world’s wealth is held offshore, with 80% of international banking transactions taking place there. More than half the capital in the world’s stock exchanges is “parked” offshore at some point.

Nobody knows for sure how much money big governments around the globe are missing out on from all this tax avoidance, but everyone agrees the number is huge.  It is at least in the hundreds of billions of dollars every single year. When you compare this to the new money being printed as “bailout money, I think we would find the ledger in balance.  That is, new money printed and money stolen.

It is a shadow banking system that most Americans and Europeans don’t know anything about. Most folks don’t have the resources to be able to set up shell companies in half a dozen different countries so that they can “filter” their profits.  Most people don’t know a thing about complicated tax avoidance plans that tax lawyers use such as the “Double Irish” and the “Dutch Sandwich”.  Most common working middle class folks or honest businessmen and women would have no idea how to eventually have most of the money that they make end up in Bermuda so that it can avoid taxes.

If common folks even attempted such things, we would be swarmed by state investigators, IRS agents and tax agents of all kinds, and likely we would face criminal charges.  My question is two-fold.  First, why isn’t our governments pursuing and changing these loop-holes and two, why aren’t we insisting they do.  The answer is simple, like credit swaps and derivatives, these schemes are not understood, even by our legislators.  Let’s all get informed and then begin to insist on the appropriate actions.  We do not have to be lambs to the slaughter, well at least I won’t go willingly to financial slavedom.

The Awakening has begun in earnest

If you are a regular reader of this blog, you know that I rail against the fact that MSM and PTB who own 85% of mainstream media have decided what we will be informed of and what they will choose not to report.  This is of course is done to keep the Sheeple asleep.  Why you ask.  It is simple, there are about 6,000 people living who know “the whole truth” of our orgins and our destiny.  There maybe 100X more people who know some of the truth because of their “compartmentalized” requirement to serve the PTB in continuing to cover the “real story” in fog or prepare  for the coming events (newscasters, weather forecastors, scientists, geologists, engineers, etc.).

I would imagine there may several millions, but not tens of millions world wide who are at least aware of “something” going on, but they are operating more on instinct and belief than they are on having the real facts.  As we transition through this most active period of the profound changes that basically are going to reshape the planet and us, a debate has broken out within the ” international group” who know all of the truth.  For our purpose, we will call them the White Group and the Black Group.  The Black Group’s argument is basically that even if we all knew the “truth” it will not fundamentally change the outcome and the release of the information to the general public would only create social and economic chaos, disrupt religious institutions, and create anarchy.  I call this the Pacino Argument.  If you saw the movie, A Few Good Men, Pacino has a quote that was, “The truth, you can’t handle the truth”.

The White Group argues that each and every person has a right to know and a right to decide how they are going to cope with the realities we are facing and further that the Black Group’s argument underestimates the true nature of all of us to deal with any realities we would face and secondly, the Black Group’s argument concerning the withholding of the information is only to allow them to have the “upper hand” in the aftermath of the events.  There are some real merits to that aspect of the argument to be sure.  But as these elements battle, both on planet and off world, a phenomena is occurring.  The sheeples are waking up all by themselves, like Rip Van Winkle after a forty year sleep.

I see it everyday, in responding to emails and meeting with people.  People, of all ages, are taking this “gut feeling” that is gnawing at them and beginning to demand answers from world leaders, politicians, scientists, and religious leaders.  I have lunch on a bi-weekly basis with a very bright young man from Lebanon and over the last year, Maher has slowly begun to wake up to these realities.  This is a well grounded, bright young man who has seen many things, is successful both as a businessman and a human being.  He is not prone to ascribing to conspiracies or fantasy, but has begun to instinctively understand that the events he is witnessing are manufactured for reasons of control and greed.  Slowly, slowly he has begun in his own mind to ask questions that are quite frankly rocking the very foundations of what he thinks he knows, but he is persisting none-the-less.   This is repeating itself with more and more people everyday.  This is a factor that wasn’t considered by either the White Group or the Black Group.  I call it the NEO factor.  Again, if you saw the movie  ‘The Matrix”, you will remember Neo’s reaction when he first was rescued from his chamber.  It was hard for him to believe that what he was experiencing was true, but there he was in an alternative reality that he couldn’t initially explain or understand.  Which reality was the “true reality”?

If we lift our heads from the grindstone for a moment, I wonder how many questions might come to your mind.  Some things to ponder:

1).  Is global warming man made or a natural phenomena?  If it is a natural cyclic phenomena, why are the developed nations promoting the opposite?

2). What is the true nature of the space program and why is there such an increase of probes and observing systems being launched now in this time of economic impairment?

3). Why would a US President declare a national emergency of an H1N1 epidemic that has so far failed to materialize?

4).  How can large institutional banks collapse, requiring governmental bailouts, and then 3 months later, declare record profits and bonuses?

5). Why such a push to get us to give up our civil liberties in the name of security, when in fact we truly, and I say this with all due respect to those who have been personally affected by terrorist acts and our military efforts to combat terrorism (our family is one who has had tragic losses), haven’t been damaged in such a manner to warrant the foregoing of our basic civil liberties by those acts of terror.

6).  Why is the North Pole now moving at a rate of 37 miles per year toward Russia?  

It is time to wake up.  It is time to question our leaders, politicians, religious leaders, and scientists.  If it doesn’t pass the smell test, it is probably BS.  So who is slinging the poop and why?  The more we all begin to question the things we feel aren’t quite right, the more we will know.  The more we know will better prepare us as individuals to deal with the REAL situation we are collectively facing.  It is time to wake up and speak up.  Make your own list of things that just don’t seem quite right, then act on that list and begin to ACTIVELY question “authority”.