July 16, 2010 journal, 5 banks are too big to fail hold 90 percent of worthless derivatives. "The 5 are, in declining order of importance: JP Morgan Chase which holds a staggering $88 trillion in derivatives (€66 trillion!). Morgan Chase is followed by Bank of America with $38 trillion in derivatives, Citibank with $32 trillion. Number 4 in those derivatives sweepstakes is Goldman Sachs with a 'mere' $30 trillion in derivatives. Number five, the merged Wells Fargo-Wachovia Bank, drops dramatically in size to $5 trillion. Number 6, Britain's HSBC Bank USA has $3.7 trillion. After that the size of US bank exposure to these explosive off-balance-sheet unregulated derivative obligations fall off dramatically. Just to underscore the magnitude, a trillion is-$1,000,000,000,000. Continuing to pour taxpayer money into these 5 banks without changing the operating system, is tantamount to treating an alcoholic with unlimited free booze." This is called the dirty little secret the Treasury Secretary don't want you to know that the largest banks are the weakest banks. These are actually like giant sinkholes in the middle of interstate highways in the country. "Government bailouts of AIG to over $180 billion to date has primarily gone to pay off AIG's Credit Default Swap obligations to counterparty gamblers Goldman Sachs, Citi-bank, JP Morgan Chase, Bank of America, the banks who believe they are 'too big to fail.' In effect, these five institutions today believe they are so large that they can dictate the policy of the Federal Government. Some have called it a bankers' coup d'etat. It definitely is not healthy. This is Geithner's and Wall Street's Dirty Little Secret that they desperately try to hide because it would focus voter attention on real solutions. The Fed-eral Government has long had laws in place to deal with insolvent banks. FDIC places the bank into receivership, its assets and liabilities are sorted out by independent audit. The irresponsible management is purged, stockholders lose and the purged bank is eventually split into smaller units and when healthy, sold to the public. The power of the five mega banks to blackmail the entire nation would thereby be cut down to size. Ooohh. This is what Wall Street and Geithner are frantically trying to prevent. The problem is concentrated in these 5 large banks. The financial cancer must be isolated and contained by Federal agency in order for the host, the real economy, to return to healthy function. This is what must be put into bankruptcy receivership, or nationalization. Every hour the Obama Administration delays that, and refuses to demand full independent government audit of the true solvency or insolvency of these five or so banks, inevitably costs to the US and to the world economy will snowball as derivatives losses explode. That is pre-programmed as worsening economic recession mean corporate bankruptcies are rising, home mortgage defaults are exploding, unemployment is shooting up. This is a situation that is deliberately being allowed to run out of (responsible Government) control by Treasury Secretary Geithner, Summers and ultimately the President, whether or not he has taken the time to grasp what is at stake. Once the 5 problem banks have been put into isolation by the FDIC & the Treasury, the Administration must introduce legislation to immediately repeal the Larry Summers bank deregulation including restore Glass-Steagall and repeal the Commodity Futures Modernization Act of 2000 that allowed the present criminal abuse of the banking trust. Then serious financial reform can begin to be discussed, starting with steps to 'federalize' the Federal Reserve and take the power of money out of the hands of private bankers such as JP Morgan Chase, Citibank or Gold-man Sachs. F. William Engdahl is author of A Century of War: Anglo-American Oil Politics and the New World Order; and Seeds of Destruction: The Hidden Agenda of Genetic Manipulation (www.globalresearch.ca ). His newest book, Full Spectrum Dominance: Totalitarian Democracy in the New World Order (Third Millennium Press) is due out at end of April. He may be reached through his website", www.engdahl.oilgeopolitics.net . The above data site- http://www.globalresearch.ca/index.php?context=va&aid=12953 beginning with "S Treasury Secretary Tim Geithner has unveiled his long-awaited plan to put the US banking system back in order. In doing so, he has refused to tell the 'dirty little secret' of the present financial crisis. By refusing to do so, he is trying to save de facto bankrupt US banks that threaten to bring the entire global system down in a new more devastating phase of wealth destruction. The Geithner Plan, his so-called Public-Private Partnership Investment Program or PPPIP, as we have noted previously is designed not to restore a healthy lending system which would funnel credit to business and consumers. Rather it is yet another intricate scheme to pour even more hundreds of billions directly to the leading banks and Wall Street firms responsible for the current mess in world credit markets without demanding they change their business model. Yet, one might say, won't this eventually help the problem by getting the banks back to health? Not the way the Obama Administration is proceeding. In defending his plan on US TV recently, Geithner, a protégé of Henry Kissinger who previously was CEO of the New York Federal Reserve Bank, argued that his intent was 'not to sustain weak banks at the expense of strong.' Yet this is precisely what the PPPIP does. The weak banks are the five largest banks in the system. The 'dirty little secret' which Geithner is going to great degrees to obscure from the public is very simple. There are only at most perhaps 5 US banks 5 which are the source of the toxic poison that is causing such dislocation in the world financial system. What Geithner is desperately trying to protect is that reality. The heart of the present problem and the reason ordinary loan losses as in prior bank crises are not the problem, is a variety of exotic financial derivatives, most And especially so-called Credit Default Swaps". No way is this boat going to float. Compare one trillion dollars to the admitted national debt of $13 trillion, you know it is collapsing, never call it Jewish. This is all one big whirlwind increasingly difficult to keep control of and keep the lid on for confidence by the international investors that buy our bonds at which time it will be clearly obvious that the American foreign phony secret Federal Reserve is just printing money at which time investors will disappear and the entire house of cards leaning tower of Pisa will collapse. Glenn Beck said that our Republic dies with the new reform bill of Wall Street. Our republic has been dead for over a hundred years already but he does not know it. Glenn Beck works for the cause of the problem or at least one major pillow in the capitalistic system of the Zionist domination of trying to appear as conservative or a neo-conservative which is either the Khazar Russian Communist or their sympathizers. I believe the new bill gives Wall Street a green light doing nothing to correct the problem. The problem was never subprime mortgages, it was their trading in derivatives and losing like air in our tires leaving America still out to dry for 5 or 600 trillion dollars compared to the 13 trillion admitted debt that is bankrupting this country. I say it is overwhelming. Even if the bill is legitimate it is closing the barn door after the horse is stolen by them at Zionist led Wall Street with the Federal Reserve covering its rear to continue its power authorizing artificial money. Those fake derivatives are coming home to roost suddenly.