WSJ Article: Level 3 asset disaster loomingHere is the link:
https://online.wsj.com/article/SB11921458...
The article talks about the amount of Level 3 assets. Warren Buffett calls it "marking-to-myth". These assets may be worth only 70-80 cents on the dollar now, but the firms don't dare to mark it down too much.
GS has $70B in Level 3 assets. BSC has $20B in Level 3 assets.
It is a must read!!!!
WSJ brave enough to report real financial news. CNBC is in co-hoots with banks to avoid talking about this topic for fear of a consumer inspired run on banks that would collapse certain firms, particularly BSC.
Although the Canadian banks will be far less affected, though RY may have more exposure than we can possibly know due to its U.S. derivatives group, if a calamity hits U.S. banks we will not be totally immune. Just be careful. Canadian banks are trading very well, kinda a safe haven right now. But they are vulnerable to, like, a 10% pull-back from here.