In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘financial fraud’

Naked shorts as liquidity machine

Posted by seumasach on August 18, 2010

Jim Willie

Kitco

12th August, 2010

The article of July 22nd on “Smoking Guns of USTreasury Monetization” hit more desks, raised more dust, and brought more attention than expected to the heightened malfeasance in progress using USGovt debt securities. The actions continue without any hint of regulatory notice or legal prosecution. The problem is more diverse than just JPMorgan sale of bonds far beyond their existing supply. Sure, the venerable colossus sold more than $2 trillion in USTreasurys than were issued in the 1990 decade. Records no longer exist. The problem goes far beyond the giant bank, which gobbled numerous other banks in the course of its reign, to become an oligopoly cog within the USGovt today. See Chase Manhattan, Chemical Bank, Manufacturers Hanover, and Bank One. Any competent student of financial economics can see that such merger is part & parcel of the Fascist Business Model, with climax merged union with the state, and certain side effect benefits of subterranean license in numerous markets like silver. JPMorgan cannot be fixed by the process any more realistically than an angry man with a vengeful heart can carve out his own cardiac pump in order to enjoy a better day. Thus no solution exists.

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The German government has had enough

Posted by seumasach on May 19, 2010

The Market Ticker

18th May, 2010

If you thought the German government was going to be a lapdog for Sarcozy, or worse, was going to fellate Brussels and the ECB, you got a rude shock today.

It appears that the German Government has just plain had enough of the crap that the banksters have tried to pull, and has decided to do what Barack Obama should have done in early 2009.

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Merkel blasts ‘treacherous’ banks in Greek crisis

Posted by seumasach on May 8, 2010

yahoo.com

6th May, 2010

BERLIN (AFP) – German Chancellor Angela Merkel on Thursday slammed “treacherous” practices by banks during the Greek crisis and said governments must crack down on speculators hunting profits in the turmoil.

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Stock market collapse: more Goldman market rigging

Posted by seumasach on May 8, 2010

Ellen Brown

Global Research

8th May, 2010
Last week, Goldman Sachs was on the congressional hot seat, grilled for fraud in its sale of complicated financial products called “synthetic CDOs.” This week the heat was off, as all eyes turned to the attack of the shorts on Greek sovereign debt and the dire threat of a sovereign Greek default. By Thursday, Goldman’s fraud had slipped from the headlines and Congress had been cowed into throwing in the towel on its campaign to break up the too-big-to-fail banks. On Friday, Goldman was in settlement talks with the SEC.

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Greek bailout signals time for change in eurozone

Posted by seumasach on May 5, 2010

“Why have hardly any attempts to impose stronger controls on the finance markets made any progress? Why is it that a few rating agencies can determine the fortune of an entire national economy? Why do taxpayers rescue banks, only to have the banks turn around and speculate against entire states? It seems that lobbyists representing the financial industry are doing their jobs just as well as ever.”

Christoph Hasselbach

Deutsche Welle

3rd M ay, 2010

German Chancellor Angela Merkel recently said that financial aid for Greece would probably not be necessary and would only be used as a last resort. Now, it’s surprising how quickly the worst case scenario has come about. The Germans and other Europeans are gritting their teeth and paying up.

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EU: “Who is S&P?” Questions rating agency’s downgrade of Greek, Portuguese debts

Posted by seumasach on May 3, 2010

New Europe

2nd May, 2010

European Monetary Affairs Commissioner Olli Rehn was frustrated with the downgrade of Greek debt by Standard & Poor’s to junk status last week, questioning the credit rating agency’s decision. “Who is Standard & Poor’s by the way?” asked Amadeu Altafaj, the spokesman for Rehn, during a briefing in Brussels.
The European Commission sent a warning to rating agencies urging them to act “in a responsible way.” After Standard & Poor’s downgraded Greece and Portuguese debts, EU markets plunged. Following the downgrade, the euro collapsed more than 1.5% on 27 April. The downgrade added to fears that Greece’s crisis would spread to other weak EU members.

“We would expect that when credit rating agencies assess the Greek risk, they take due account of the fundamentals of the Greek economy and the support package prepared by the European Central Bank, the International Monetary Fund and the Commission”, the spokesperson of the EU Financial services Commissioner Michel Barnier said.
Barnier said on 30 April that he is considering setting up a new European credit rating agency. “I am thinking… about the idea, feasibility and the added value of adding an extra rating agency that would be European,” French daily Les Echos quoted Barnier as saying.
European Commission President Jose Barroso said on 29 April that the Commission “has already taken action to put in place a regulatory framework on credit-rating agencies, and will continue to watch closely the behavior of the financial markets during this crisis.”
Greek Prime minister George Papandreou, addressing an Economist’s conference in Athens on 28 April, stressed that “a small fire, a spark must not be allowed to get out of control and become a threat for the Eurozone.”
Papandreou said that from the situation that has been created from the beginning of the crisis “the markets do not ultimately regulate themselves and they do not always function rationally,” while for the specific case he said that the markets “are afraid and evaluate by depending on the worst possible scenario and not the most probable.”
A day later, Antonis Samaras, the main opposition Leader, President of the New Democracy Party, who is a former member of the European Parliament, said that he had also called for the creation of a European rating agency. He said at the Economist conference that the rating agencies “were not always transparent” and often were “self-fulfilling prophecies.”
On April 30, Papandreou held consecutive consultations with his top ministers on the progress in the negotiations with a visiting delegation of the so-called “troika” of the European Commission, theECB and the IMF on the new package of economic measures expected to be announced in the coming days. Barroso said that the European Commission is making “solid and rapid progress” with the European Central Bank (ECB), the International Monetary Fund (IMF) and the Greek authorities to finalize the Greek adjustment program.”The Commission expects this work to be finalized in the coming days,” he said. “There is no doubt that Greece’s needs will be met in time.”

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Bring Down Goldman Sachs and Expose the Financial Coup

Posted by seumasach on April 29, 2010

David DeGraw

Global Research

28th April, 2010

Not only did Goldman Sachs profit on betting against CDOs they designed to fail; more importantly, they insured them through AIG which led to a $182 billion taxpayer bailout.

Have you heard the news? It’s everywhere! The SEC and Congress have all of a sudden sprung to life and are now “getting tough” on Goldman Sachs. Is this all the first phase of a long-awaited investigation that will reveal the causes of our current economic crisis, or is this just more show trials and psychological operations designed to manipulate public opinion and make the American people feel that our elected officials are finally standing up to their campaign funders on Wall Street?

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Dollar surges on Europe downgrades

Posted by seumasach on April 28, 2010

It’s working! What a great idea having your own rating agencies- one minute you can triple AAA rate a junk CDO, the next you can trash competing currencies. You can even maintain UK government bonds at AAA rating! The battle for Europe is heating up- look out for retaliation soon.

The Street

28th April, 2010

The dollar surged to a new 11-month peak against a basket of its major counterparts overnight, broadly boosted by mounting sovereign credit concerns in Europe.

Yesterday, Standard & Poor’s ratings agency downgraded Greece’s government debt to junk status amid mounting concerns about its ability to finance its soaring debt.

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EU says Greece won’t restructure; says it’s monitoring role of credit rating agencies

Posted by seumasach on April 28, 2010

Altafaj Tardio showed some disdain for the agencies. “Who is Standard & Poor’s anyway?” he said at the European Commission’s daily news briefing.”

It’s gratifying to see that the European Commission has twigged it regarding S&P’s blatant bias in downgrading Greek bonds for the benefit of the dollar and Wall Street. Now they are also downgrading Portuguese and Spanish debt in a strategy that is far too obvious to keep on succeeding. The rating agencies should be facing prosecution regarding their leading role in the subprime fraud rather than pontificating on the fate of nations.

Robert Wielaard, Associated Press

Canadian Business

28th April, 2010

The European Commission ruled out a Greek debt restructuring Wednesday and – with barely veiled annoyance – said it was “monitoring” credit rating agencies such as Standard & Poor’s that downgraded Greek bonds to junk status.

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Document: Goldman “shorted” mortgages because world wouldn’t expect it

Posted by seumasach on April 28, 2010

Truth Out

27th April, 2010

Washington – A key Goldman Sachs trading manager indicated in his personnel performance review that he could use the “fear” in the market of a coming collapse in the nation’s mortgage market to make profits for the Wall Street firm, documents released Tuesday show.

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The Devaluation of the US Dollar

Posted by seumasach on April 27, 2010


Now we have the Goldman Sachs fraud civil suit case. A closer check would raise suspicion from numerous corners. Five key red flags are raised, each worthy of future investigations.1) The Securities & Exchange Commission announced the fraud charges during a time when the Inspector General report was due for release. 2) The SEC fraud charges were announced during the time when a vote is soon coming for the Financial Reform Bill before the USCongress. 3) The SEC fraud charges were announced during the middle of the day, during stock market trading activity, a sharp break from proper information release. 4) Worse, the SEC gave Goldman Sachs a tipoff in the two weeks beforehand of the fraud charges to be made public. 5) Goldman Sachs has been privately accused of profiting from the adjustment in stock price due to its own problems. Stories are numerous of large S&P stock index puts purchased. Stories are numerous of a suspiciously high volume of ‘Out of Money’ stock option puts on GS, the Goldman Sachs stock share. They turned out to rise 140-fold, yet not much official talk about them.

So Goldman are making money out of speculating on the consequences of being prosecuted!!

Jim Willie

Financial Sense

22nd April, 2010

Click on link above for full article

The stream of events in the last four years casts extremely bad light on the US financial system, soon to reflect lower value. The subprime mortgage bonds were not isolated in damage done or loans gone bad. The prime mortgages, the Option ARMs, the second mortgages, the commercials, they almost all sport delinquencies and defaults that rival the subprimes. Details are shown in the last few Hat Trick Letter reports. The TARP Fund episode was an open extortion exercise, perpetrated on a hapless yet compromised USCongress, which now makes its own futile efforts to at least achieve disclosure of what the $700 billion or $500 remaining billion went. The US Supreme Court appears to be running interference for the US Federal Reserve, in blocking legal attempts to force disclosure of the USFed balance sheet, and disclosure of the TARP Fund disbursements. The overseas wars involve their own black eyes, what with $50 billion missing from the Iraq Reconstruction Fund. The United Nations drug task forces have pointed a finger at the US Security Establishment as funneling money into the US banking system, without which they claim the US banks would have collapsed in the autumn 2008. The nationalizations of Fannie Mae and American Intl Group took place amidst widespread charges of fraud, both in mortgage bonds and credit derivatives. Lawsuits were thwarted. The Credit Default Swap, an invention of Wall Street, has come under fire. It is being blamed for some distress in the European Govt debt markets. The CDSwap contract is under fire inside the United States even more so. Imagine a financial instrument that benefits from the implosion of financial firms, caused by policies and actions taken by the designers of the instruments. Only in America!

Now we have the Goldman Sachs fraud civil suit case. A closer check would raise suspicion from numerous corners. Five key red flags are raised, each worthy of future investigations.1) The Securities & Exchange Commission announced the fraud charges during a time when the Inspector General report was due for release. 2) The SEC fraud charges were announced during the time when a vote is soon coming for the Financial Reform Bill before the USCongress. 3) The SEC fraud charges were announced during the middle of the day, during stock market trading activity, a sharp break from proper information release. 4) Worse, the SEC gave Goldman Sachs a tipoff in the two weeks beforehand of the fraud charges to be made public. 5) Goldman Sachs has been privately accused of profiting from the adjustment in stock price due to its own problems. Stories are numerous of large S&P stock index puts purchased. Stories are numerous of a suspiciously high volume of ‘Out of Money’ stock option puts on GS, the Goldman Sachs stock share. They turned out to rise 140-fold, yet not much official talk about them.

In the following weeks we will see how much Goldman Sachs earned from their own legal challenges. In fact, a source informs me that his legal beagles regard the Paulson Abacus case as perhaps the weakest of all potential fraud cases against GSax. It might be designed to fail and be rejected by the courts. In fact, they mention that GSax might revert to a private investment bank, now that the TARP Funds were taken and returned, its commercial bank sham status no longer needed. The need instead is for privacy and no more prying eyes. GSax will not escape the lawsuits, but might face criminal charges. Watch the Germans, who are angry at being defrauded. Germany seems in many ways to act as the spearhead to disrupt, dislodge, and dismantle the US-UK streak of corporate fraud perpetrated by those wearing USGovt & UKGovt suits. The Goldman Sachs fraud case, and cases to follow, will render severe damage to the image of the USDollar, the USTreasury, and the USGovt leadership that is dominated by the GSax alumni. My belief is that the fraud charges have opened Pandora’s Box, for other complaints, other lawsuits, even class action lawsuits to be handled in federal court. The whiff of Pandora will be next seen in Germany from a broad swift response.

The White House connection to Goldman Sachs is not as clear as the USDept Treasury control by GSax. While GSax lawyers negotiated with the SEC over the high profile risk filled civil fraud charges, the GSax CEO Lloyd Blankfein visited the White House at least four times. White House logs show that Blankfein traveled to the national capital for at least two events with President Obama. Furthermore, the Obama 2008 presidential campaign received $995 thousand in donations from the GSax political action committee, its employees, and their relatives. The response included appointment of yet another GSax alumnus as Treasury Secretary, Tim Geithner. Worse, GSax has retained former Obama White House counsel Gregory Craig as a member of its legal team. The GSax connections to the White House and the Obama Admin are raising a lot of eyebrows. Influence is clear, as it might be bought. Watch the financial regulation overhaul grant even more power to Wall Street firms and more impunity for their actions. See the McClatchy Washington Bureau article entitled “Goldman White House Connections Raise Eyebrows” (CLICK HERE).

The crushing weight of lost integrity is vast. My suspicion is that the greatest impact from the Goldman Sachs stream of lawsuits and felony charges, complete with potential restitution attempts, will be on the USDollar and not the GS stock price or its balance sheet. What comes next is the survival reactions by nations under deep distress, weakend by sluggish if not moribund economies, weakened by exported toxic bonds from Wall Street, weakened by Credit Default Swap attacks lodged by Wall Street and London firms, weakened by years of accepted USTreasurys as legitimate payment for exported finished products, weakened by broad usage of the USDollar within their banking system. The Jackass maintains a firm conviction that the first few nations that break ranks from the USDollar embrace will become the leading nations in the next chapter. A shock this way comes, from a Paradigm Shift in progress, recognized across the world, but not in the United States or England. A sudden USGovt-led devaluation could come soon, ordered by the United States banking and government leaders. It might turn out to be a vain arrogant maneuver to achieve instant stability, to maintain chokehold control, and to attempt to prevent creditor abandonment.

A grand backfire comes, since numerous platforms and paper support beams can no longer bear the weight of US insolvency, US dishonesty, and US arrogance. A grand backlash comes. My best sources warn to expect flash events. Either the US will attempt to control the sudden rash of events, or foreign sources (dominated by US creditors) will pull the rug from under the US-UK controllers. The maestros in New York and London are fast losing control and credibility. The next victim front & center is information flow. The CFTC hearings to reveal the gold & silver market rigs is one item. The empty gold vaults at the London Bullion Market Assn is another item. The insider trading schemes in flash trading mechanisms by Goldman Sachs is another item. The involvement of Wall Street firms in European debt machinations is another item. The revealed USTreasury monetization and accounting is another item. The usage of the IMF and World Bank as financial weapons is another item. The narcotics trafficking under USGovt and USMilitary aegis is another item, complete with Wall Street money laundering. These highly important factors are all recent exposures of the US information machine losing its grip. These factors combine to invite a global response. It will be felt and realized eventually in the USDollar. The Euro is nowhere near as weak and fraught with insolvency as the USDollar, not to mention deep pervasive fraud. Time will prove this out.

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