Replies

Few analysts, pundits, or anchors are aware of the mammoth conflict of interest involved with the USTreasury Bond sales required to pay for all the bailouts. JPMorgan, with the essential aid of Goldman Sachs, plot to bring down the DJIA index and the S&P500 index whenever the USTreasury conducts auctions or needs Congressional passage of key bailout bills. In Oct 08, they sold $194 billion of Cash Mgmt Bills (CMB) over two weeks. The big stock declines seen recently work to the BENEFIT of the USTreasury and US Fed. as agent for auctions. TBill yields are down near zero, in case you have not noticed, with principal prices corresponding almost as high as the bond permits. The USGovt is conducting auctions for TBills at top dollar prices, when its credit rating should be caving in radically upon downgrades. These USTreasurys are destined to enter default at a later date, where the loss to foreign investors will be maximized. Most of the US public has savings dominated by stocks, with little in bonds. So the US public is being fleeced, coming and going, since even money markets contain toxic mortgage bonds. Look for the stock market decline to come to a surprising end when the USGovt has completed the majority of their planned emergency supply sales via auction.

The Wall Street tactics have recently turned more vicious and devious, actually creating volatility, producing fear for political purpose. They accused hedge funds of driving up the crude oil price, rendering great harm to the US Economy and US citizens. So they urged unsuccessfully the Securities & Exchange Commission to force hedge funds to reveal their speculative positions. The Wall Street thieves and conmen wish to learn details on hedge fund positions so as to target them illicitly. In a queer twist, JPMorgan has benefited from an interesting double kill. They exploit hedge funds, wreck them, then encourage them into the fold at JPM in brokerage accounts, where their private accounts are rendered vulnerable under the new US Fed. rules. JPMorgan is a monster predator at work, which is permitted to manipulate markets and clients with total impunity.

The path of JPMorgan growth into a FRANKENSTEIN took radical changes in course after both the failures of Lehman Brothers and recognition that Fannie Mae & Fannie Mae had to be taken over by the USGovt. To halt the run on their bonds, the USGovt acquired the entire F&F Cesspool. The impact hit the Credit Default Swap market immediately. AIG had been weakened one week earlier from the technical default of Fannie & Freddie, which resulted in broad CDSwap payout’s. Ripple effects from the Lehman Brothers failure that followed were deep and broad throughout the system, killing AIG. The Wall Street central harlot (Goldman Sachs) advised the USGovt to assume full control and risk of AIG, as GSachs avoided $20 billion in sudden losses in the nick of time, a pure coincidence!

Two mergers of questionable nature highlight the altered role of the Federal Deposit Insurance Corp (FDIC), which no longer protects bank depositors or their investors, but rather serves JPMorgan Chase. When Bank of America merged with Merrill Lynch, a trend started, one that exposed private stock brokerage accounts. Officially they can be legally borrowed across subsidiary lines. The FDIC averted a failure of Merrill Lynch without the credit default implications.

The other event was more blatant, as the FDIC steered Washington Mutual out of bankruptcy failure and into the JPMorgan slaughterhouse. Inside its chambers, JPM gobbled up the WaMu deposits and benefited from ratio improvements. Senior WaMu bond holders were crushed, fully denied due process from bankruptcy. The FDIC has become an ugly investment banker lookalike, serving JPM and not the US public. The FDIC owns a pitifully small $45 billion in funds available for bank bailouts, at June 08 count. When the dust clears a year or more from now, many multiples more will be necessary for many bank failures. The reversal by the FDIC to not serve the public has caused gigantic Wall Street problems.

There is one more detail. Lest one forget, Goldman Sachs was exempt from the short rule restriction placed on a few hundred financial stocks traded. The reason had something to do with market stability and integrity assurance! Goldman Sachs clearly profited from the ups & down in the Dow and S&P500, lifting stocks after Congressional agreements, pulling them down before those agreements. JPMorgan and Goldman Sachs profit handsomely when the USGovt Plunge Protection Team pushes the stock indexes up with their usual methods. Oh by they way, JPM and GSachs are the managers of the PPT efforts.

The lies, deceit, backroom pressure, and fleecing of the American public is deep. Take the Emergency Economic Stability Act. Most of the initial $250 billion outlay was not devoted to American bankers, but rather to foreign bankers, primarily in Europe and England, and to purchase preferred US bank stocks. The US public was not told about this redirection, which constitutes misallocation, misappropriation, and fraud. The usage of funds to buy investment stakes in the giant US banks (GS is now a bank, etc, etc....) is assisting banks close to the power center, yet reeking with corruption.

The top-down approach used to date aids the bankers, while the homeowners are denied aid. That aid is promised but rarely arrives. The fundamental problem here is that billion$ are devoted to shore up insolvent banks, to redeem their worthless (or nearly worthless) bonds, and to give a giant pass to the executives.

My opinion is the greatest threat to the US economy right now is the trifecta of (JPMC, Goldman Sachs, and the FDIC) continuing to cordinate CDSwap fires. Its time for both Goldman and JPMorgan to be downsized, not let to grow larger. At a minimum, a breakup of their investment and retail banking divisions into independant companies.
The FDIC needs to return to its mandate of protecting US depositors and its investors, instead of acting as an investment banker agent for the major US financials and banks. They need less power, not an expansion of their powers as they have have recently been lobbying the US government for.

Goldman (and other banks') "Hedges"

There is a rumor about Goldman Sachs flying around on the street - allegedly they are about to report their second-best quarter in history, +$12 billion or so.

In addition, there is this from Bloomberg:

A 47 percent gain for the company’s stock price this year and a return to profitability in the first quarter may help Chief Executive Officer Lloyd Blankfein raise new money, analysts said. That might let Goldman Sachs, the sixth-biggest bank, return the cash received in October from the Treasury’s Troubled Asset Relief Program and shake off compensation and hiring restrictions imposed on banks that took the U.S. aid.

Gee, you don't think being paid by the taxpayer through AIG's "conduit" for losses that didn't (yet) happen at 100 cents on the dollar might have anything to do with that, do you?

And further (and potentially much worse) there is the repeated statement by Goldman executives that they were "fully hedged" against a potential counterparty default by AIG.

One wonders - was that "hedge" to be short the equity on AIG itself, perhaps?

Why is this important?

Because if that's how Goldman hedged they got paid twice and the taxpayer literally got robbed.

Someone in Congress needs to look into this now; there are already rumblings of investigation. Those rumblings need to get a lot louder and turn into subpoenas, not "polite inquiries."

If in fact Goldman (or anyone else) was "hedged" against a possible credit loss from their CDS with AIG and they were able to collect on that hedge (no matter what it was) those payments through AIG need to be clawed back immediately as nobody is entitled to be paid twice for the same risk and reap what amounts to a windfall profit by quite literally engineering a multi-billion dollar transfer of funds from the Taxpayer to the firm!

This is not small potatoes either - we're talking $100 billion+ in aggregate with these various banks on a worldwide basis.

We the people deserve answers on this right now and if persons in our government handed these banks $100 billion dollars of our tax money for what was a covered bet, allowing them to collect twice on a risk that had not yet been realized (when at most they were entitled to collect once via their private hedging activity) every single person involved in that scandal must be immediately removed from office, prosecuted if possible, and every nickel of those funds must be clawed back by whatever means are necessary.

http://market-ticker.org/archives/953-Goldman-and-other-banks-Hedges.html

Bravo ! . . . Proud_USA_Republican understands.

The lies, deceit, backroom pressure, and fleecing of the American public is deep. Take the Emergency Economic Stability Act. Most of the initial $250 billion outlay was not devoted to American bankers, but rather to foreign bankers, primarily in Europe and England, and to purchase preferred US bank stocks. The US public was not told about this redirection, which constitutes misallocation, misappropriation, and fraud . . .
The top-down approach used to date aids the bankers, while the homeowners are denied aid. That aid is promised but rarely arrives. The fundamental problem here is that billion$ are devoted to shore up insolvent banks, to redeem their worthless bonds, and to give a giant pass to the executives . . .

American taxpayers were and are being victimized by organized crime. Greedy criminals control the government. Taxpayers are fleeced mercilessly to prop up a huge criminal enterprise. Trillions of dollars stolen to commit more fraud, pay bribes and blackmail. Our hard-earned money will never be recovered . It has vanished forever in a huge Ponzi scheme guaranteed and enforced by government.

But real criminal masterminds control the Federal Reserve Bank. Our corrupt central bank must be audited. It must account for every penny over the past 40 years. Please check my freeper page. There are links to read and videos to watch.

People who control our government attend a Satanic ritual in Bohemian Grove. Ever see the movie 'Eyes Wide Shut?' Many believe that the director, Stanley Kubrick, was murdered. 'Payback' for spilling the beans. This type of activity goes on in the woods in Northern California. Gay prostitution abounds.

These corrupt elitists will meet again in July, 2009.

Few analysts, pundits, or anchors are aware of the mammoth conflict of interest involved with the USTreasury Bond sales required to pay for all the bailouts.

What is the conflict?

JPMorgan, with the essential aid of Goldman Sachs, plot to bring down the DJIA index and the S&P500 index whenever the USTreasury conducts auctions or needs Congressional passage of key bailout bills.

Is it an evil plot?

The big stock declines seen recently work to the BENEFIT of the USTreasury and US Fed. as agent for auctions.

How does the Treasury (and the Fed) benefit from big stock declines?

Most of the US public has savings dominated by stocks, with little in bonds.

Really?

The Wall Street thieves and conmen wish to learn details on hedge fund positions so as to target them illicitly.

You mean the Wall Street thieves and conmen who provide prime brokerage services to hedge funds want to drive them out of business?

They exploit hedge funds, wreck them, then encourage them into the fold at JPM in brokerage accounts, where their private accounts are rendered vulnerable under the new US Fed. rules.

Huh? Maybe this would make more sense if the writer spoke English?

When Bank of America merged with Merrill Lynch, a trend started, one that exposed private stock brokerage accounts. Officially they can be legally borrowed across subsidiary lines.

Individual stock holdings can be borrowed across subsidiary lines? How does that work exactly?

The other event was more blatant, as the FDIC steered Washington Mutual out of bankruptcy failure and into the JPMorgan slaughterhouse.

And saved the FDIC from paying out billions for insured deposits.

Inside its chambers, JPM gobbled up the WaMu deposits and benefited from ratio improvements.

Yeah, that's kinda why JPM bought them.

The FDIC has become an ugly investment banker lookalike, serving JPM and not the US public.

The public and WaMu depositors didn't benefit from the purchase?

Goldman Sachs clearly profited from the ups & down in the Dow and S&P500, lifting stocks after Congressional agreements, pulling them down before those agreements.

Which stocks, which agreements on what days? How much were the profits? How does the writer know?

Jim_Willie_CB needs to get back on his meds, he might make more sense.