Replies to post #697229 on Mr Cooper Group Inc (COOP)

[ron_66271]

I Think The FDIC/FRB are Expecting Another Derivative Meltdown.

The “large banks” act as unregulated insurance companies, and place more bets(policies) than they can cover.
That is what happened in 2007-2008. JPM, BOA, WF... had $83+ Trillion in Notables(Contracts). The mortgage market at that time was $13 Trillion. Not all RMBS were insured by Derivative contracts, but enough and more than the “larger banks” could cover.
The “large banks” are part of the FRB, as was Lehman’s.

Anyone have the number for the current Derivative market?
Totally staggering. Beyond meltdown.
A Derivative Contract is equivalent to a naked call as an example.

The Derivative market needs to be regulated as to keep the “large banks” writing more contracts than they can cover.

I doubt that the FDIC/FRB will discuss the Derivative market issues in this Proposed Rules because they need to pretend that there is no problem.



Ron