Alessio Rastani, the trader who shook the MSM financial world with his September BBC interview predicting collapse of the Eurozone (merely 2 months later his call looks pretty good, huh?), has posted a message today that two of the world's largest financial institutions are "on the brink of collapse", and 1 is a UK firm that "poses the systemic risk of MF Global x 10"
UNCONFIRMED: Two of the world's largest financial institutions are on the brink of collapse - one of them facing bankruptcy by end of January 2012. Both of these firms are heavily exposed to JUNK EUROPEAN DEBT and they are classed as TBTF. Inside sources say that a THIRD bank is also involved - and the third bank is NOT based in Greece, Spain or Italy - but in the UK. The systemic risk posed by this UK firm is estimated as MF Global x 10 - placing many hedge funds at huge risk. <----- (I have no idea whether the information is true, I cannot confirm it, but I can say it comes from reliable and trusted inside City sources. I cannot disclose any names of firms for legal reasons). My feeling is this information may be priced in since Monday's decline.
Personally, The Doc would be surprised if the TBTF's on the brink are currently limited to two institutions. BOA and MS make 2 just from this side of the pond.