The Entire Financial System could Collapse

In a interesting interview in King World News Mr. Art Cashin, who is Director of Floor Operations at UBS ($650 billion under management). said:

The Federal Reserve’s balance sheet holds $3.84 trillion in assets, with capital of just $54.86 billion, putting the Fed at 70-to-1 leverage against its stated capital.

Given the relatively long maturity of Fed asset holdings, even a 20 basis point increase in interest rates effectively wipes out the Fed’s capital. 

Her is the link:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/5_This_Can_Cause_The_Entire_Financial_System_To_Collapse.html