Updated to provide more detail on banks' derivatives exposures.



) -- Trading revenues at U.S. commercial banks fell 37% on a sharp fall in foreign exchange trading, which was only partly offset by strong gains in the trading of interest rate products, according to a report Friday from the Office of the Comptroller of the Currency.

Banks in the U.S. posted trading revenues of $4.2 billion, compared to $6.6 billion in the second quarter and $5.7 billion in the third quarter of 2009.

Those numbers apply only to the banks regulated by the OCC, which in certain cases are subsidiaries of much larger corporate entities known as holding companies. Holding company trading revenues also declined, however, dropping 11% on a sequential basis and 43% versus the third quarter of 2009, according to the OCC report.

Derivatives activity continued to be dominated by the largest players. According to the OCC, the largest five banks hold 96.4% of the total derivatives contracts. The top five are

Goldman Sachs

(GS) - Get Report


JPMorgan Chase

(JPM) - Get Report






(C) - Get Report


Bank of America

(BAC) - Get Report

. HSBC replaced

Wells Fargo

(WFC) - Get Report

in the top five in the second quarter of this year.

While the OCC does not provide a breakdown of the individual banks' exposures, Greg Coleman, risk specialist at the OCC, provided this information in response to questions from


. Coleman says JPMorgan accounts for 33% of outstanding derivatives contracts, Citigroup and Bank of Ameruica each account for 22%, Goldman accounts for 18% and HSBC USA represents just 2% of the total.


Written by Dan Freed in New York


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