Tuesday, March 19, 2013

U.S. Derivatives To Deposit Insurance Ratio: 11,900-to-1!

U.S. Derivatives To Deposit Insurance Ratio: 11,900-to-1!As I noted yesterday, the European Central Bank bailout/deposit seizure in Cyprus puts into question the safety of savings in the U.S. Something else to be concerned about with regards to domestic savings: the gross derivative to deposit insurance ratio. According to the Office of the Comptroller of the Currency (OCC) and is illustrated by this stunning chart, the current ratio is a mind-blowing 11,900-to-1. It's important to note that the derivative/deposit insurance ratio was approximately the same in the months leading up to the 2008 financial crisis.

U.S. Derivatives To Deposit Insurance Ratio: 11,900-to-1! - chart

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