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USD 5 Trillion

last night, JP Morgan Chase revealed that they have sold a total of USD 5 trillion [for European readers US$ 5,000 billion] of sovereign credit protection.  That's a global number and doesn't break out the PIIGS -- but how much of that will be for Germany or France? lets be honest you hedge was you are concerned with!

Put this in perspective, JPM has US$125 billion in market capitalization (TNW of US$ 182 billion), and total assets of USD 2.2 trillion.  Obviously, not all of this is to bad credits, but lets say that just 5% of JPM's book is to PIIGS, that folks is USD 250 billion, or 1.3x their tangible net worth and 14x their annual profits (2010).  Just saying that's a lot!

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