Now this one is rich folks, and comes to us from Zero Hedge courtesy of many readers here who shared it.

The New York Federal Reserve, that bastion of transparency and truthfulness, is accusing the huge German mega-bank, Deutsche Bank, of over exposure to derivatives. Here's the Zero Hedge article:

NY Fed Slams Deutsche Bank (And Its €55 Trillion In Derivatives): Accuses It Of "Significant Operational Risk"

Ok, so says the NY Fed to Deutsche Bank: "Whoa! You're way over-exposed to derivatives and at significant risk!"

We'll get back to what would be a fun Deutsche Bank response to this statement in a moment.

But consider some interesting facts from the article. Note that Germany's Gross Domestic product is approximately 2,740,000,000,000 euros, almost three trillion euros, while the whole Eurozone's GDP is only 9,600,000,000,000. In other words, Germany accounts for approximately 28.5 % of the Eurozone's GDP. If you've been wondering why Germany has such clout in the European, or for that matter, the world economy and geopolitics, that's why; it remains the locomotive of Europe's economy, after two World Wars and, some would argue, desperate attempts of certain people in certain Cities, to ruin the country once and for all.

But now note that Deutsche Bank's exposure to derivatives is around 54.7 trillion euros... that's almost twenty times the entire German GDP, and it's approximately 5.5 times the entire Eurozone's GDP.

Now in that context, consider this citation from The Wall Street Journal and Zero Hedge's analysis:

"In a letter to Deutsche Bank executives last December, a senior official with the New York Fed wrote that financial reports produced by some of the bank's U.S. arms "are of low quality, inaccurate and unreliable. The size and breadth of errors strongly suggest that the firm's entire U.S. regulatory reporting structure requires wide-ranging remedial action."


"The criticism from the New York Fed represents a sharp rebuke to one of the world's biggest banks, and it comes at a time when federal regulators say they are increasingly focused on the health of overseas lenders with substantial U.S. operations.

"The Dec. 11 letter, excerpts of which were reviewed by the Journal, said Deutsche Bank had made "no progress" at fixing previously identified problems. It said examiners found "material errors and poor data integrity" in its U.S. entities' public filings, which are used by regulators, economists and investors to evaluate its operations.

"The shortcomings amount to a "systemic breakdown" and "expose the firm to significant operational risk and misstated regulatory reports," said the letter from Daniel Muccia, a New York Fed senior vice president responsible for supervising Deutsche Bank.

"Deutsche Bank's external auditor, KPMG LLP, also identified "deficiencies" in the way the bank's U.S. entities were reporting financial data in 2013, according to a Deutsche Bank email reviewed by the Journal."

"Oh wait, so those €55 trillion in derivatives are actually completely fabricated? Well if that doesn't send the S&P 500 limit up nothing will.

"DB's response is the generic one already attempted by that other permacriminal bank, Barclays, which hired a few hundred compliance people after it was revealed that the British firm was manipulating and rigging pretty much every product and market it was involved in.

"We have been working diligently to further strengthen our systems and controls and are committed to being best in class," a Deutsche Bank spokesman said Tuesday. As part of this, he said, the bank is spending €1 billion globally and appointing 1,300 people, including about 500 compliance, risk and technology employees in the U.S. Mr. Muccia declined to comment.

"Sadly for now what this latest Pandora's box means is that confidence in Europe's insolvent banks just crashed with a bang once again, not that it would be reflected in the stock's rigged price of course: rigged most likely by Deutsche Bank among other of course."

So the bottom line here is this: Germany's largest bank is over-exposed to five and half times more derivatives than the entire Eurozone GDP, but Deutsche Bank might equally respond with some form of the following question to the NY Fed:

"OK. We're over-exposed. So, where do we rank in terms of over-exposure compared to, say, Barclay's, Westminster, BNP Paribas, Citibank, JP Morgan?"

In other words, just exactly where are all those credit default swaps and derivatives currently sloshing around?

And they might want to make one more statement, one calling into question just how sound the whole system is:

"OK, we're over-exposed. We've got bad books and bad credit. Just take it out in that gold that you won't repatriate."

In other words, look at the pot calling the kettle black.

Maybe, just maybe, what the financial system needs is a "Philippe le Bel" moment.

See you on the flip side...

(My Thanks to Mr. G.B. for his email pointing these things out).



Joseph P. Farrell

Joseph P. Farrell has a doctorate in patristics from the University of Oxford, and pursues research in physics, alternative history and science, and "strange stuff". His book The Giza DeathStar, for which the Giza Community is named, was published in the spring of 2002, and was his first venture into "alternative history and science".


  1. gkb623 on August 1, 2014 at 3:11 pm

    could it be, that the insanity and ludicrousness turn of events and contradicting statements from those involved may be because the deeper and real agenda is known only in the innermost circle, and that “the lie is different at every level”…

    • Robert Barricklow on August 1, 2014 at 6:24 pm

      …and just when you reach that level,
      you find you’ve just scratched the surface.

  2. DownunderET on August 1, 2014 at 2:54 pm

    The Fed warning the DB, well it did make the MSM. Also the IMF has told China to “tone down” their rising economy. Just who is running this financial world of ours? is it the Rottenchilds, is it the Zionists, is it off world dudes dismayed at shonky trade deals with the breakaway civilization?
    My guess is all of the above, it’s just that they differ a little in the sense of obeying the rules.

  3. marcos toledo on August 1, 2014 at 11:14 am

    Robert WW3 is the only way out for these swindlers. Unless they have all those nuclear fission reactors making gold on steroids. Their house of cards have began falling in 2008ACE yep the kettle calling the pot black.

    • Robert Barricklow on August 1, 2014 at 12:22 pm

      Looks like the BRICSA are calling their bet, a raising them another financial coin of the realm. One that isn’t privately owned, cancerous in its very nature, and controlled by the few; but one that is public, productive, and works for all including Earth herself.(as opposed to the extractive sequential currency).
      Last time it was the international workers, the wobblies, who called their bet. Result: WW1.
      So they do have a history of this; just as long as “they’ don’t have to be the ones fighting or spilling any blood. And of course they reap vast treasures and god awful power in the process.
      Putin doesn’t doubt their inhumanity, its a given; given their long and bloody history. They are an example of how absolute power corrupts absolutely.

      Yep, they are a curse personified, upon mankind
      & living Earth herself.

    • Robert Barricklow on August 1, 2014 at 12:39 pm

      Don’t know if you had a chance to check out Fetzer’s interview with Nick Kollerstorm(approx. first 30 minutes) & Dennis Cimino(approx. last 45 minutes). Monday July 21, 2014 Post. They discuss that the flight MH370 plane was one in the same M17 plane shot down. That was discussed as well as in Cimino’s talk, WW111.

      Sometimes you just don’t want to say, “It can’t get any stranger”; because, then Murphy just steps-up his game.

  4. QuietRiot on August 1, 2014 at 10:42 am

    Joseph, Ahh. So interesting, these Earthly doings. I have to wonder, if these derivative piles are secretly collateralized with materiel from somewhere else? “The system makes no sense unless there is another system connected to it off stage.” What if the D pile at DB, the Fed, and elsewhere are the aneurysms of the hidden system poking through its arterial wall?

    The purpose, of course, is to use the off planet collateralization and collateralization of post-colonial asset seizures, to *feudalize* (a synonym for privatize) the global asset base.

    As Michael Cremo points out in Human Devolution, “The ancient texts point out clearly that humanity first appeared on the Earth between the Caucuses and the Himalayas.” All races have both African and Asian Haplogroups in their mDNA, and the “Out of Africa” story is not borne out by the deep scientific facts once investigated, using the methods you and Cremo pioneered.

    It looks like the Rottenchilds just want their ancestral home back, lock stock and barrel, using space assets, financial instruments and the other things to get it. We can just dispense with the Oligocracy and get us back to some good ol fashioned “Baronal” Lagoon Living.


    • Robert Barricklow on August 1, 2014 at 11:13 am

      Liked you to ‘feudalize’, as another form of privatize; or, as the Russian people learned, by living it, to privatize is simply: To Grabitize.

  5. Robert Barricklow on August 1, 2014 at 7:49 am

    As I was reading I thought: talk about the pot calling the kettle black; the fan say to vacuum you suck, while the replied you blow.
    The BRICSA has really got “them” all shook up.
    Just hope those central bankers, who orchestrated WW1, aren’t going to da a turtle man “live action” w/ WW111.

  6. justawhoaman on August 1, 2014 at 7:01 am


    Just for fun, take a look at the derivative exposure for the top 9 US banks. This is a great article because they break the numbers down into units that they then compare to skyscrapers. This by the way is also a great article to help steer your money away from any of these criminal organizations. I stupidly have a few bucks with Bank of America only because the little locally owned banks don’t liable themselves with credit card exposure. BoA is happy to screw you to the wall and why not? They are so overexposed and the Fed will never do anything but go to the President and get Congress to bail them out again (rob the American people at their leisure). The idea of throwing Deutsche bank this slam is a total joke. Why aren’t they looking here at home at our b… oh…. never mind.

    Thanks, Dr. Farrell, for starting my day out with a hearty laugh!

  7. Lost on August 1, 2014 at 6:23 am

    Deutsche Bundesbank is the German Central Bank.


  8. Lost on August 1, 2014 at 5:58 am

    From above

    “OK, we’re over-exposed. We’ve got bad books and bad credit. Just take it out in that gold that you won’t repatriate.”

    Deutshebank is a commercial German Bank, like Chase or USB, etc. It’s not the central German, or European, bank. Why on earth would German gold held at the NY Fed go to Deutchebank to cover Deuchebanks problems?

    Yes and of course the NY Fed is being grossly hypocritical having helped Chase, and Citibank with all sorts of questionable trading, and then helped them out when that trading didn’t go so well.

    • Joseph P. Farrell on August 1, 2014 at 6:50 am

      Lost…for crying out loud…it was a JOKE!!

      • Lost on August 1, 2014 at 7:00 am

        Huh? The joke makes sense for a German central banker–no so much for a giant commercial German bank.

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