It all leads to what the probable end game is: a "good" bank (Goldman Sachs) will survive and highly benefit, when the "bad" bank (JP Morgan) collapses and the entire world (except the good bank) will bear the cost of that collapse.

It may take a bit more time for the bad bank to swallow up bad assets and exponentially build up derivative positions and, ofcourse, push some other banks over the edge in the process.

Isn't Goldman Sachs long gold by now?