Selasa, 27 Maret 2012

DB and JPM - following the moves made by their chief banksters ......


The biggest bank in the EU is also one of the most over-leveraged and under-capitalised. The Slog offers a less than flattering portrait of the man at the top of Deutsche Bank.
I remember only too well reading the bullish soundbites of former RBS boss Fred Goodwin in 2008. It is my sad duty to report that the person in banking right now who most resembles theuber-confident crap put out by Goodwin – or ‘badloss’ as wags took to calling him – is Josef Ackermann, the chap in charge of what is now officially Europe’s biggest bank, Deutsche.
Equally, he has the same swaggering anti-politician, anti-regulation attitude that so marks out Lloyd Blankfein from the run of not quite so completely ignorant Wall Street bankers. Ackermann was among the first to chastise IMF bossette Christine Lagarde for having the temerity to suggest last year that some large European banks were in need of “urgent recapitalisation”. Sloggers will know already that I am no Lagarde fan – indeed, she did a volte-face herself on this very issue when she joined the IMF. But I have no hesitation on this occasion in saying she is right, and Ackermann is talking out of another orifice entirely, some distance from his mouth.
Ackermann’s bank – which has been assiduously adding assets as other lenders did the opposite – this week overtook France’s BNP Paribas SA to take back the mantle of being Europe’s largest bank. Its assets  rose 14% to 2.16 trillion euros during the last 2011-12 fiscal year. But wise heads in both Europe and the US have their doubts about Herr Ackermann….and in my view, with a great deal of justification.
A year ago, MIT professor and former IMF staffer Simon Johnson called Deutsche CEO Josef Ackermann “one of the most dangerous bankers in the world.”  He  fingered Ackermann as the crazy author of Deutsche Bank’s longstanding profit target of 25% return on equity, and what he called “excessive risk taking” there. And London-based banking analyst at Mediobanca SpA Christopher Wheeler told Bloomberg this week that “leverage and lack of capital are impacting Deutsche Bank’s valuation”. The message is clear: there is too much risk on Deutsche’s balance sheet, and not enough capital to back it up. The motive behind this is, once again, greed. The higher a bank’s leverage, the higher the returns when times are good. And when times are bad, Ackermann is cute enough to think that he too is Too Big To Fail, and will be rescued by the taxpayer.
Greek debt purchased over the years by the bank offers a classic example. Last year, the Deutsche boss told a bankers’ seminar  that many of them could be swallowed by competitors if they had to mark down their entire sovereign debt holdings to real-world market values. He told his audience that it was “stating the obvious that many European banks would not survive having to revalue sovereign debt held on the banking book at market levels”, an assertion that subsequent events might suggest was deranged rather than obvious. Nevertheless, having said this, once Josef Ackermann privately saw the writing on the wall – around July 2011 – he was quick to use his relationship with Merkel to organise a grubby deal restricting Beutsche Bank’s Greek haircut to 21%….the rest being digested by the unfortunate German taxpayer. Not many commentators are aware of the arrangement; but those in Berlin who detest Herr Ackermann are only too aware of it.
Largely as a result of that deal – and wacko Acko’s incessant anti-Government public statements – his previously close relations with Merkel have become distinctly chilly. The German chancellor believes European banks need more capital, and far stricter stress tests. Bizarrely, Ackermann’s stated view is that Deutsche Bank doesn’t need capital, and regards itself as above the stress-test ideas of ‘interfering politicians’. Bob Diamond, David Buik, Freddie Goodwin….they all spout the same MoU bollocks.
American regulators too have every reason to dislike this man whose self-belief is rarely borne out by events. When debt markets rallied in 2009, the bank posted a return on average equity of 14.6%. The following year, as Europe’s sovereign-debt crisis went from worse to awful, margins fell to 5.5%. Ackermann’s ‘business model’ is not that different from Northern Rock’s Adam Applegarth: it is built for good times, on the idiotic assumption that there will no longer be any bad times….or even worse, interesting times.
But bad times are always just around the corner for dumbos. Deutsche Bank was one of the largest recipients of US dollars in the aftermath of 2008.  This received near-zero coverage in the financial media, but the fact remains that, just three few months before receiving billions of dollars from the Fed as part of the AIG fiasco, Ackermann had paid his shareholders some 2.6 billion euros in dividends.  Since then, it has paid out an additional 1.7 billion in dividends. Be in no doubt: Josef Ackermann is a sort of libertarian/corporate Robin Hood: he believes in taking from the sovereign rich, and giving to the private stinking rich.
When Ackermann retires in two months time, his legacy is likely to be a balance sheet 40% bigger than that of 2006, and 80% of the entire size of the Bundesrepublik economy. In the light of any lessons learned at all from 2008 – and the completely potty idea of one bank with a balance sheet at four fifths of easily EU’s biggest economy – on the whole I think The Slog is justified in suggesting that Deutsche Bank is not so much an accident waiting to happen, as a certainty about to scorch the Earth of anyone speaking a European language.
And that includes, of course, the United States of America.
and consider the next two items.........

CFTC Pulls Public Comments from JP Morgan Whistle-blower: “We Are Fearful of a Cascading Credit Event; Wide-Scale Market Collapse”

One argument you’ll hear from the majority of Americans who refuse to wake up to the madness around them is that if there truly was an economic and financial cabal in cahoots with the government we would have heard about it. If this was actually happening, wouldn’t there be insiders from the private and public sectors that would have alerted us to the conspiracies? And wouldn’t the mainstream media report on it? And wouldn’t the Justice Department vigorously pursue and prosecute those responsible for the fraud, theft and manipulation?
It turns out that there are whistle-blowers – hundreds of them. But any attack on the establishment is met with either a full-on counter-attack that targets the credibility of the individual bringing forth the information and marginalizes the content of the message by dismissing it as the ravings of a lunatic or disgruntled employee, or, it’s simply erased from public view by the very institutions tasked with investigating such activity.
Yesterday, an open letter posted in the public comments section at the Commodity Futures Trading Commission (CFTC) by a self described JP Morgan insider and whistle-blower was removed in short order (no cache of the page exists, but it was briefly indexed by search engines). It was dead on arrival. A direct link to the letter now leads to an empty page in the hopes that it will never be seen by the 99% of Americans who tune in only to mainstream news sources for their daily dose of truth. Don’t worry, though, because if there’s one thing alternative news media learned from Orwell’s 1984 and real world experience, it’s that we should always expect the powers that be will attempt to rewrite history. As such, the full content of the post has been copied and archived for posterity’s sake by alternative media (and reprinted below).
In the letter, the JP Morgan insider reveals that high level executives and traders at the bank are putting the investments and savings of thousands, if not millions, of hard working Americans at risk of complete, wide-scale market collapse through their machinations and fraudulent practices. Moreover, he suggests that executives at his bank are fully aware of commodity manipulations in which the bank engages, as well as the risks posed by a European collapse, an event that, according to the whistle-blower, will lead to annihilation of investments within a matter of days.
Here is the full open letter (now removed from CFTC’s public comments), made available via Market Ticker and Modern Survival Blog:
[Emphasis Added]
From: Z A N
JPMorgan Chase

Comment No: 57019
Date: 3/14/2012

Dear CFTC Staff,
Hello, I am a current JPMorgan Chase employee. This is an open letter to all commissioners and regulators. I am emailing you today b/c I know of insider information that will be damning at best for JPMorgan Chase. I have decided to play the role of whistleblower b/c I no longer have faith and belief that what we are doing for society is bringing value to people. I am now under the opinion that we are actually putting hard working Americans unaware of what lays ahead at extreme market risk. This risk is unnecessary and will lead to wide-scale market collapse if not handled properly. With the release of Mr. Smith’s open letter to Goldman, I too would like to set the record straight for JPM as well. I have seen the disruptive behavior of superiors and no longer can say that I look up to employees at the ED/MD level here at JPM. Their smug exuberance and arrogance permeates the air just as pungently as rotting vegetables. They all know too well of the backdoor crony connections they share intimately with elected officials and with other institutions. It is apparent in everything they do, from the meager attempts to manipulate LIBOR, therefore controlling how almost all derivatives are priced to the inherit and fraudulent commodities manipulation. They too may have one day stood for something in the past in the client-employee relationship. Does anyone in today’s market really care about the protection of their client? From the ruthless and scandalous treatment of MF Global client asset funds to the excessive bonuses paid by companies with burgeoning liabilities. Yes, we at JPMorgan that are in the know are fearful of a cascading credit event being triggered in Greece as they have hidden derivatives in excess of $1 Trillion USD. We at JPMorgan own enough of these through counterparty risk and outright prop trading that our entire IB EDG space could be annihilated within a few short days. The last ten years has been market by inflexion point after inflexion point with the most notable coming in 2008 after the acquisition of Bear.
I wish to remain anonymous as of now as fear of termination mounts from what I am about to reveal. Robert Gottlieb is not my real name; however he is a trader that is involved in a lawsuit for manipulative trading while working with JPMorgan Chase. He was acquired during our Bear Stearns acquisition and is known to be the notorious person shorting in the silver future market from his trading space, along with Blythe Masters, his IB Global boss. However, with that said, we are manipulating the silver futures market and playing a smaller (but still massively manipulative) role in manipulating the gold futures market. We have a little over a 25% (give or take a percentage) position in the short market for silver futures and by your definition this denotes a larger position than for speculative purposes or for hedging and is beyond the line of manipulation.
On a side note, I do not work directly with accounts that would have been directly impacted by the MF Global fiasco but I have heard through other colleagues that we have involvement in the hiding of client assets from MF Global. This is another fraudulent effort on our part and constitutes theft. I urge you to forward that part of the investigation on to the respective authorities.
There is something else that you may find strange. During month-end December, we were all told by our managers that this was going to be a dismal year in terms of earnings and that we should not expect any bonuses or pay raises. Then come mid-late January it is made known that everyone received a pay raise and/or bonus, which is interesting b/c just a few weeks ago we were told that this was not likely and expected to be paid nothing in addition to base salary. January is right around the time we started increasing our short positions quite significantly again and this most recent crash in gold and silver during Bernanke’s speech on February 29th is of notable importance, as we along with 4 other major institutions, orchestrated the violent $100 drop in Gold and subsequent drops in silver.
As regulators of the free people of this country, I ask you to uphold the most important job in the world right now. That job is judge and overseer of all that is justice in the most sensitive of commodity markets. There are many middle-income people that invest in the physical assets of silver, gold, as well as mining stocks that are being financially impacted in a negative way b/c of our unscrupulous shorts in the precious metals commodity sector. If you read the COT with intent you will find that commercials (even though we have no business being in the commercial sector, which should be reserved for companies that truly produce the metal) are net short by a long shot in not only silver, but gold.
It is rather surprising that what should be well known liabilities on our balance sheet have not erupted into wider scale scrutinization. I call all honest and courageous JPMorgan employees to step up and fight the cronyism and wide-scale manipulation by reporting the truth. We are only helping reality come to light therefore allowing a real valuation of our banking industry which will give investors a chance to properly adjust without being totally wiped out. I will be contacting a lawyer shortly about this matter, as I believe no other whistleblower at JPMorgan has come forward yet. Our deepest secrets lie within the hands of honest employees and can be revealed through honest regulators that are willing to take a look inside one of America’s best kept secrets. Please do not allow this to turn into another Enron.
Kind Regards,
-The 1st Whistleblower of Many

JP Morgan-MF Global-Euro Gate Escalates
by Tom Heneghan
International Intelligence Expert
Sunday March 25, 2012!/image/656152717.jpg_gen/derivatives/article_aufmacher_klein/656152717.jpg
UNITED STATES of America - It can now be reported that the U.S. Senate Committee on Banking has new evidence showing that JP Morgan had a $200 million overdraft aka a second margin call on the London LIFFE Exchange three days before the MF Global bankruptcy fiasco was triggered.

The second margin call (the first margin call was four days earlier for $175 million) dealt with cross-collateralized, compounded naked euro currency put options that were written by JP Morgan with the transactions being placed through the CME Group and the aforementioned London LIFFE Exchange.

We can now divulge that, thanks to PROMIS software, MF Global took the opposite side of the trade.

Note: The fact that MF Global took the opposite side of the trade is a significant development and it completely torpedoes the ISDA's (International Swaps and Derivatives Association) legal standing that declared the latest Greek bailout a non-credit event rather than what it really is, a Greek default.The ISDA's decision has temporarily rewarded crooked banks, as well as Goldman Sachs and JP Morgan, and screwed the hedge funds as well as the looted customer segregated accounts that were tied to MF Global.

The fact that two margin calls were issued in a span of one week against JP Morgan is clearly a game changer.

The first margin call aka the overdraft was triggered when the JP Morgan SWIFT wire transfer (to pay for their derivative trades) was rejected by the London LIFFE Exchange after the Dallas Federal Reserve Bank refused to honor the JP Morgan float aka line of credit.

Dallas Fed President and CEO Robert W. Fisher actually notified the New York Fed on that day that JP Morgan was using TARP money (Troubled Relief Asset Program) to write their euro currency option derivatives.

This illegal trading done by JP Morgan violated the terms of the 2008 Bush-Pelosi bank bailout that forbid banks like Goldman Sachs and JP Morgan from using U.S. Taxpayers' money to engage in any type of derivative trading.

What followed was the largest 24-hour crime spree aka money laundry in financial history.

Forty-eight hours after JP Morgan's line of credit was rejected (their electronic check bounced creating an overdraft), a second larger margin call was issued to JP Morgan, which set off the following change of events:

Immediately financial terrorist Jamie Dimon, CEO of JP Morgan phoned Federal Reserve Chairman Bernard Bernanke, U.S. Treasury Secretary Timothy Geithner and CFTC Chairman Gary Gensler and discussed his predicament.Within an hour the CME Group re-issued the second margin call singling out only MF Global and removing JP Morgan from its liability.

Fifteen minutes later Jamie Dimon called MF Global CEO Jon Corzine threatening his life and demanding that MF Global meet the $200 million margin call that was originally issued for JP Morgan.

One hour later the crooked ISDA ruled the MF Global trades to be null and void, which then allowed JP Morgan and Jamie Dimon to short the MF Global stock and then, with the approval of the Federal Reserve Bank of New York laundered the proceeds into the London LIFFE Exchange, and issued new naked derivatives which would be used in the latest Greek-Euro bailout ponzi scheme.

Note: Dallas Federal Reserve President and CEO Richard W. Fisher immediately phoned Fed Chairman Bernanke to protest this latest JP Morgan money laundry involving customer segregated accounts.

Bernanke told Fisher, and I quote "Timothy Geithner calls the shots".

Reference: The Federal Reserve Bank of New York tried to disguise this ponzi scheme by first moving the MF Global customer segregated funds through the Dominion Bank of Toronto, Canada and then on to the London LIFFE Exchange.

At this hour we can divulge that Dallas Fed President and CEO Richard W. Fisher is cooperating with U.S. Marshals who are investigating this financial treason and will shortly offer his resignation.

P.S. We can now also report that JP Morgan and MF Global had a joint custodial account with a side clearing agreement with the noted derivative clearing house Maiden Lane LLC.We can now also reveal that the joint JP Morgan-MF Global custodial account had a common email address with the financial officers of both JP Morgan and MF Global having access and ability to receive and send emails to each other.

This joint account specialized in using crooked high-frequency trading aka 3-second electronic front running in creating artificial wide spreads in the forex foreign currency futures markets that guaranteed that both MF Global and JP Morgan could not lose on any of their foreign currency transactions.

In other words, folks, both Jamie Dimon and Jon Corzine were running a ponzi scheme.

P.P.S. We can now report that the crooked CFTC, NFA and SEC issued a clean audit report for both MF Global and JP Morgan three months before the aforementioned MF Global-JP Morgan financial debacle.

It is clear the alleged financial regulators were bribed because new evidence now in possession of Senator Carl Levin, Democrat of Michigan, indicates that JP Morgan was in violation of both CFTC and SEC rules concerning proper capitalization of their assets versus their margined derivative liability exposure.

We can now divulge that at the time the JP Morgan audit was issued its margined derivative exposure exceeded their capital assets by 2500 to 1.

Note: Word is out on the street that JP Morgan made a deal with the crooked aforementioned financial regulators to throw their broker dealers under the bus in return for the regulators to look the other way when it came to JP Morgan's massive financial criminal misconduct.

In closing, we can divulge that thanks to the efforts of patriotic elements of the U.S. military, the U.S. Marshal Service, International Monetary Fund President Christine Lagarde and Russian President Vladimir Putin, the repatriation of U.S. dollars back to the U.S. Treasury continues, which will lead to the final implementation of the Wanta-Reagan-Mitterrand Protocols.

and to the extent one doesn't think theft can't happen in broad daylight , consider this repost......


“But Lucas my dear, if you run out of poor people, you can always steal from the sick”


Bank of Greece complicit in broadscale embezzlement revealed by respectable Greek health site
The illegally denied default of Greece entered a dramatic new phase this afternoon with the revelation by mainstream Greek public health website Health News that, shortly before midnight on March 8th – the eve of Greece’s psi completion on Friday March 9th – on average 70% of public utility funds in varous large, interest-bearing accounts at the Bank of Greece were raided. These included most of the State’s regional hospital budgets, various universities and (it is alleged) at least one utility company.

The shortfalls came to light late last week and this morning as various hospital purchasing cheques in particular began to bounce. The monies – estimated by one source to total some 1.4 billion euros – appear to have been used to pay off the tiny minority of private sovereign creditors who, under the original terms of their bond purchase, were entitled come what may to full payment of the bond’s yield entitlement.
Setting aside the amoral audacity of this act, it does yet again raise the issue of a Greece so utterly lacking in any real funds in the real world, that to pay off a minute proportion of the bondholders it had to resort to such a desperate measure.
“The Greek government used this money in order to purchase government bonds from various bondholders without getting permission from the bank account owners,” one reliable Athens source told The Slog in commenting on the story, “hospitals and universities have been robbed of hundreds of millions of Euros, absolutely essential for their core functionality.”
On being pointed at the Health News site, The Slog immediately contacted another of many Athens sources who have flocked to this website in recent weeks. This informant in turn offered access to a senior administrator in a major teaching hospital. The person thus contacted told me: “There can be no doubt about this. It isn’t even very subtle. All the monies were withdrawn over a brief period of time on March 8th after normal banking hours. I have spoken to teaching contacts at Universities over the weekend, and it has been confirmed that they too have the same embarrassment. These people are criminals who should be brought to justice. But in the Greece of today, it will not happen”.
One final source told me shortly before posting, “The Bank of Greece is naked in this matter. We ask them for the reasons why this has happened, and they claim to have no knowledge of such things. This is ridiculous. This could not have been done without their cooperation. There is nobody now in Greece we can trust”.

Equally, nobody should be surprised that senior politicians and government officials have conspired to do such a thing. The Venizelos elite has shown itself to be without ethics or remorse in many ways already. The European Central Bank, Brussels, the IMF and even Berlin have also shown a compliant willingness to look the other way or simply ignore the Law if it suits them so to do. But now, I think institutions around the world – and their stakeholders – need to look at what’s happening in southern Europe and ask themselves, ‘Is this really right? Is any cause worth this amount of depravity and deprivation?’
Footnote: sharp-eyed Sloggers may have noticed that last Friday – that ill-starred March 23rd – the Greeks once again postponed the time by which English Law bondholders have to participate in psi. The reason: they aren’t going to participate, and Athens does NOT have the money to pay them…as the above post demonstrates rather well.

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