The Office of the Comptroller of the Currency (OCC) issues a Quarterly Report on Bank Trading and Derivatives Activities. The OCC's mission is "To ensure that national banks and federal savings associations operate in a safe and sound manner, provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations". Pam Martens does not think it is doing a very good job ensuring that "national banks and federal savings associations operate in a safe and sound manner".
And when you read the press release on its latest report, you have to agree with her. The first thing you notice is that "credit exposures from derivatives increased during the third quarter" by 10%. Weren't derivatives one of the primary causes of the Great Recession? Yet, "the notional amount of derivatives held by insured U.S. commercial banks increased $2.6 trillion, or 1 percent, from the third quarter to $239 trillion. To make matters worse 93% of this amount is held by just four banks; the entire 100% is held by just 25 banks.
Is the OCC actually "ensur(ing) that national banks and federal savings associations operate in a safe and sound manner"?
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