German Banks, Now Leaders in Derivatives Trading
Oct. 18, 2016 (EIRNS)—A report on worldwide trading of derivatives, titled, "Here is Where the German Banks are the World Leaders—Unfortunately," shows the immediate necessity of a return to Glass-Steagall and LaRouche’s Four Laws.
A bar graph of the bank-owned derivatives traded worldwide shows the derivatives trading of the top five nations:
Germany: $881 billion
United Kingdom: $713 billion
Switzerland: $478 billion
United States: $380 billion
France: $174 billion
Most of the German derivatives are traded in London, not Frankfurt.
The German authors write,
"German banks have a long history as a supporter of the real economy. Many large industrial companies have good relations with the most important banks, and can hope for capital allocations for their growth plans. For a long time this was the strength of the German financial sector.
"However, they wanted to emulate the big investment banks in New York and London, with results which are just about to concern us again."