While perusing the news today, I came across this most interesting article in Bloomberg, Swaps ‘Armageddon’ Lingers as New Rules Concentrate Risk'. Before we delve into it, I want to review how vehemently I've sounded the alarm on this topic over the last 6 years. Let's start with So, When Does 3+5=4? When You Aggregate A Bunch Of Risky Banks & Then Pretend That You Didn't?, where I've aggregated my warnings into a single article. In a nutshell, 5 banks bear 96% of the global derivatives risk. The argument to defend such ass backwards risk concentration is "but it's mostly hedged, offset and netted out". Right! You know that old trader's saying about liquidity? It's always available, that is until you need it!

Even though I've made this point of netting = nonsense multiple times, I must admit, ZH did a more loquacious job, as follows:

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Wikileaks founder Julian Assange said his work "will not be cowed," as he promised the whistle-blowing site would release a million more documents.

In a speech from a balcony at the Ecuadorean embassy in London, he said the files to be published in 2013 would affect "every country in this world".

It is six months since he sought asylum to avoid extradition to Sweden over sexual assault claims, which he denies.

He fears being sent to the US and being punished for leaking diplomatic files.

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