If you look at Citigroup's balance sheet then you can see the carnage. The bank is insolvent with its bogus on-balance sheet reporting. When you take its $24T derivative exposure and place that on the books the bank would implode just to fund 1 percent of that exposure.
Goldman, JPMorgan, BofA are all leveraged over 40-1 in the credit default swap market still. Most of that exposure is in interest rate swaps with a total of about $140T.
The banks get cheap money from the Fed and then bet against the US in the currency market with huge leverage.
This explains why the dollar is trading within a tight range as well as gold prices.
Bernanke and Geithner have to prop up currencies in order to keep these banks open.
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