It’s a good thing that Wall Street and the City of London are working night and day on inflating another $30-50 trillion speculative green bubble — because they are simultaneously in the process of intentionally wiping out trillions of dollars of investments in fossil fuels and entire chunks of the banking system to boot. That’s what Reuters reported yesterday, based on conversations with “four people with knowledge of the matter,” who explained that “climate change could upend the financial system.”
“The U.S. Federal Reserve has asked lenders to start providing information on the measures they are taking to mitigate climate change-related risks to their balance sheets,” Reuters reported. With this, they are finally following in the footsteps of the directors of “the Bank of England who are more aggressively integrating climate change risks into the regulatory framework,” CNBC explained.
What are those risks? “Climate change could upend the financial system because physical threats such as rising sea levels, as well as policies and carbon-neutral technologies aimed at slowing global warming, could destroy trillions of dollars of assets, risk experts say.”
Therefore the Fed is demanding that the banks conduct stress tests that will include “testing the geographical exposure of bank assets to physical risks such as flooding, drought and wildfires, as well as testing exposures to different sectors, such as how oil and gas loans may perform versus renewable energy loans.”