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The Fed released its Financial Stability Report late on Friday.

Not exactly prime time for the news media.

Wall Street On Parade highlighted this particular observation:

“The larger the bank, the greater the potential spillover if it defaults; the higher its leverage, the more prone it is to default under stress; and the greater its connectivity index, the greater is the share of the default that cascades onto the banking system.  The product of these three factors provides an overall measure of the contagion risk that the bank poses for the financial system.  Five of the U.S. banks had particularly high contagion index values — Citigroup, JPMorgan, Morgan Stanley, Bank of America, and Goldman Sachs.”

If only we had some regulator which had the power and capability to temper the systemic risk of these overleveraged, derivative monstrosities of a national banking system. 

Oh yeah, we do.  

It's called the Fed. 

And they have been serving the Banks, at the expense of the public, since 1913.

Stocks continued their bounce higher.

The US Dollar continued its recent decline, down to the 110 handle, which is still at high levels historically.

Gold and silver mostly marched in place.

The US will have its midterm elections tomorrow.

They may move markets when the results are finally tallied.

Have a pleasant evening.

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