17 March 2013
Jim Willie CB,  “the Golden Jackass”




Special Report #1

JPMORGAN AS MONSTER VILLAIN CANCER

The vile colossus JPMorgan Chase is a bank conglomerate first, but foremost it is the primary war room to defend the embattled USDollar and its vehicle the USTreasury Bond by extensive hidden apparatus. Many are the tentacles to financial market levered control switches and to the central bank itself. It abuses its power among peers. It distorts every market it touches. It suppresses the Gold & Silver price, using gigantic naked shorting of contracts in blatant criminal manner. It steals from its own clients in numerous markets. It colludes with other large foreign banks to hold the broken monetary system together, often using scummy devices. Its hidden partnerships read like the elite among sinister forces. It manages important narco money laundering functions from Afghan pillboxes. It runs the derivative engines, whose devices have turned on them. JPMorgue is being outed slowly as a gigantic criminal organization with so many stained sides that the entirety is being painted and identified as a corrupt organism, the realization recognized more clearly with each passing month. Everything that JPM touches, it distorts and defiles, then guts and destroys. It is a financial cancer, symbolic of the toxic disease contracted by the USDollar and USTBond.

The MF-Global thefts have run the full course, the conclusion for which is as obscene as the original crime, in the form of huge payouts. In late 2008, JPMorgue shot Lehman Brothers dead, another revelation coming to light in court proceedings. The wretched colossus deserves to be processed by RICO liquidations, except it is entwined with the USGovt itself. Nothing will happen to the protected privileged pillar of American financial corruption until the national debt default occurs. Through its own self-defense, the bank will ensure the United States is more fully isolated since it bears the nation's financial face. Defensive actions by the major nations of the world will coordinate the isolation, but not only of JPMorgue. It will isolate the USDollar and render the USTBond a toxic bond that will find only one haven, through the USFed doors onto its ballooned balance sheet. To prevent a collapse, the USFed will be eventually forced to buy it all, or watch foreign nations determine its value of zero as they diversify, desert, dispose, then finally abandon and dump them. In the meantime, JPMorgue is under widening scrutiny for its plethora of criminal deeds.

◄$$$ JPMORGAN IS RECEIVING INCREASING PUBLICITY AS A CRIME SYNDICATE CENTER STRONGHOLD. THE DOCUMENTED CRIMINAL DEEDS MAKE FOR AN IMPRESSIVE LIST. THEY OPERATE THE PRIMARY FUNCTIONAL OFFICES FOR THE U.S. FEDERAL RESERVE ITSELF. THE LITANY OF CRIMINAL VIOLATIONS, MANY OF WHICH STAND ON RECORD AS PART OF SETTLEMENTS AND SANCTIONS, IS VERY IMPRESSIVE. THEY PROVE A CRIMINAL ENTERPRISE AS A SUM OF ITS PARTS. $$$

Bring out the RICO law for seizure of the entire JPMorgan Chase global assets. But wait! That would overlap with seizure of USGovt assets and US Federal Reserve assets. The nation's federal government and central bank are infiltrated, overrun, and taken over completely by a financial crime syndicate. Josh Rosner of the firm Graham-Fisher & Co has shown bravery in publishing a new report entitled "JPM: Out of Control" which can be accessed on the Ritholtz website (CLICK HERE). The scathing indictment report exposes the gigantic US bank as a crime center, without bothering to focus at all on its mortgage fraud participation. Rosner's work has been featured in the Hat Trick Letter over the years, the first time back in 2007 when the subprime mortgage fiasco blossomed. Rosner is a superb bank analyst. His compilation of criminal fraud and malfeasance is truly remarkable and expert. The entire Too Big To Fail philosophy as accepted policy is being challenged. Some change the term to Too Big To Manage, but others appropriately call it Too Big To Jail which captures the essence with rhyme icing. Let's watch to see if any traction comes from a fresh initiative by maverick Dallas Fed President Richard Fisher, whose speech last Friday urged a break-up of the banks at a large influential conservative political conference.

A break-up is a mild form of treatment. The more appropriate action is to invoke the Racketeer Influenced & Corrupt Organizations Act, commonly known as the RICO law. It is not a law directed as excessive wearing of neck jewelry by Puerto Ricans. It is a law intended to seize assets from criminal groups like the Mafia, more exactly to seize assets purchased from criminal profit and gain. The JPMorgan Chase bank is a perfect target for invoking the RICO law, but such action would have to come from a broadly armed citizen action with global support.

The current event schedule is recently dominated by the Senate Finance Committee, which will conduct an investigation with grilling of the executives past and present from JPMorgan Chase for their failures and frauds and lies. It is bound by laws like Sarbanes-Oxley, all in violation. Senator Carl Levin is bold for pushing forward, but my belief is that he is putting on an insincere whitewash show to give the public the impression that the USCongress is confronting the criminal Wall Street syndicate. The specific focus will be on the London Whale and the Chief Investment Office with claimed hedged trades versus speculative high risk portfolio (mis)management. The losses were reported as around $2 billion, but now the buzz is they are more like $8 billion. However, my source told that the total hedge book losses related to sovereign bonds, currencies, and USTBond controls total over $100 billion.

JPMorgan and staff are hiding the slow breakdown in their Interest Rate Swap machinery which supports the entire USTreasury Bond complex (tower). It is unclear that the full extent of losses will ever revealed. The final report from the Levin committee is going to be loaded with comprehensive charges, and unsparing of finger pointing at the top brass. The hearing was mildly explosive, as expected. As prologue, bear in mind that the last Levin report from prior investigations of Wall Street, including Goldman Sachs, was perfectly packaged to the USDept Justice as a criminal referral. The mafia consilieri (mob lawyers) at the Attorney General's office promptly tossed it in the wastebasket.

The Rosner report reads like a criminal indictment or rap sheet. In fact, Rosner takes mortgage malfeasance out of the equation, and yet manages to fill a 45-page report with a skein of documented cases to prove serious fraud and abuse. The curious part is that most of the cited (criminal) actions JPM has already admitted to. They have a string of formal settlements, with the handy telltale final statement where the bank executives neither admit nor deny wrongdoing, the standard appended boilerplate enabling them to skate free. Rosner calls JPMorgan the most systemically important domestic bank recently subjected to broad public non-mortgage related regulatory actions or consent orders. The contradiction the Wonder Boy Dimon's reputation is stark. He is considered the smartest among the Wall Street CEO's, whose complex portfolio and hedge strategy is deemed the most superior, whose bank never loses money due to sparkling expertise. The reality is the opposite, a criminal organization which profits from fraud, theft, intimidation, and pervasive market violations. It is hardly a fortress of geniuses. It is constantly propped by implicit bailout guarantees, regulators using kid gloves, and insider policy information. Rosner paints a picture of a corporation saddled with pervasive internal control problems, resulting in shareholder losses, sure to bring future material impact to future profitability. He calculates that since 2009, JPM has paid out $8.5 billion in settlements for its unlawful activity, which equals 12% of net income over the same period.

The sheer litany of illegal activities is overwhelming, from the cited list below. These are past criminal actions involving settlements or sanctions. The list does not include ongoing investigations into LIBOR price fixing, improper inclusion of mortgage bonds within employer funds (another ERISA violation), the London Whale activity disguised as hedged trades, and restitution lawsuits for mortgages, none of them. Related to the Synthetic Credit Portfolio, the Whale office at the CIO hid losses, improperly marked positions, misused federal loan funds, managed deceptions, permitted wild risk with altered risk models, re-stated investor earnings, concealed information from regulators, deceived the entire regulatory process, and misled on derivative risk while over-running legal limits. The complexity of the CIOffice is tremendous, with difficult mark to market pricing on positions, some with thinly trading markets, some with multiple contract interplay. But many are standard liquid markets with easy marks.

The Task Force from 2011 and 2012 designed to investigate improper proprietary trading mixed with client hedging activity was a sham. Its lead figure had conflict of interest. Senior executives were well aware of activity and losses. Rosner charges that Sarb-Ox Title III violations took place, since top executives annually attested to the accuracy of financial statements known to be untrue at the time. The Task Force tried to exonerate Jamie Dimon by actually inserting in a footnote that the CEO was out of town for a period of time covered by the report. Telephones, faxes, emails, even video-conferences are standard forms of communication for the fast lane bankers, who remain bound to legal duties. As recently as May 2012, Dimon certified that all was well with internal CIO controls as of the end of 1Q2012. His signature is on the document. A recent ruling by Judge Jed Rakoff has seriously increased exposure, a worrisome prospect for the giant bank. The main question is whether law means anything with the Wall Street leading firms.

With the continued endorsed impunity enjoyed by the banks and their mafiosi executives, the ultimate cost will be born on the JPM shareholders and US taxpayers. No prosecution has become the norm, entrenched by precedent, made clear by defiance. Their financial crimes bear consequences, but part of their cost of doing business, nothing more. Consider a summary of recent legal violations and criminal deeds:

  • Bank Secrecy Act violations
  • Money laundering for drug cartels
  • Violations of sanction orders against Cuba, Iran, Sudan, and Liberia
  • Violations related to the Vatican Bank scandal
  • Violations of the Commodities Exchange Act
  • Failure to segregate customer funds in the US and UK
  • Knowingly executing fictitious trades with clients on both sides of trade
  • Various misrepresentations of leveraged CDO bonds and mortgage bonds
  • Foreclosure fraud with Attorney General settlement and OCC settlement
  • Violations of the Service Members Civil Relief Act (military soldiers)
  • Illegal flood insurance commissions
  • Violations on shifting currency trading losses to client accounts
  • Fraudulent sale of unregistered securities to stock clients
  • Car finance thefts for bank clients
  • Illegal increases of overdraft penalties for bank clients
  • Violations of federal ERISA laws in New York state
  • Municipal bond market manipulations with rigged bids
  • Violations of the Sherman Anti-Trust Act
  • Filing of unverified affidavits for credit card debt collections (like mortgages)
  • Energy market manipulation that triggered FERC regulatory lawsuits
  • Artificial market making at affiliate firms in Japan
  • Fraudulent sales of derivatives to the city of Milan in Italy
  • Obstruction of justice in the Madoff case and PFG-Best case.

The Rosner report gave emphasis to two particular cases, which stand out since they are ongoing in their festering nature, under current scrutiny. When JPMorgan acquired Washington Mutual, it was obligated to manage and suffer its related liabilities, to absorb them. Time passed, a few years. But suddenly, after facing the likely outcome of massive mortgage related to restitution claims (putbacks) on mortgage backed securities (MBS), the privileged JPM has begun the process to shift losses for $190 billion in MBS onto the FDIC. The objective is to escape up to $5 billion in losses in such maneuvers. The JPM tactical claim is illogical on its face, that they purchased WaMu but not any of its risk-related activities down the road. The case demonstrates a bank that operates more like a crime center with a government godfather. See the Naked Capitalism articles (CLICK HERE and HERE) on JPMorgan as criminal enterprise.

◄$$$ JPMORGAN IS THE LARGEST BENEFICIARY IN SETTLEMENTS TO THE MF-GLOBAL CRIME SCENE, WHICH JPMORGAN PERPETRATED. THE BANK PILFERED PRIVATE FUTURES BROKERAGE ACCOUNTS, MOTIVATED BY THE HUGE DEMAND FOR SILVER DELIVERY ON CONTRACTS. THEN THE COURTS BLESSED A WRONGFUL RESOLUTION AFTER THE MF-GLOBAL BANKRUPTCY. THE LAST NAIL ON THE CRIMINAL SKEIN IS THE AWARD TO JPMORGAN THE LION SHARE OF PAYOUTS TO CREDITORS. A QUICK LOOK AT THE PAST REVEALS CLEAR EVIDENCE OF THEFT IN THE INVENTORY SHIFTS. $$$

JPMorgan has won the biggest payout among all creditors in the MF-Global case, an absolute fiasco and travesty of justice. It serves in my book as the quintessential example of fascist business model corruption put before the justice bench. The dispute among MFG creditors concerning inter-company claims within the bankrupt brokerage firm's estate has been made final. The settlement effect will bolster JPMorgans payout, despite JPM being the perpetrator of the theft. The parent firm to MF-Global will increase the bank's projected recoveries, the greater details to be expected soon from the lapdog US Bankruptcy Court in Manhattan, a lapdog with a past record. Whereas most of unsecured MF-Global creditors will receive between 13.4 cents and 39 cents on the dollar for the debt held, JPMorgan is set to receive 73 cents on the dollar. The number will even increase due to certain provisions within the settlement.

The suspicious behavior by JPMorgan is rather easy to track, by following their silver inventory. Several analysts noted that JPMorgan made a large adjustment of physical silver into its registered accounts overnight. In the immediate wake of the MF-Global collapse, the registered JPM inventories tripled from 557,265 ounces to 1,660,545 ounces on a single day. The similarity between the 1.1 million ounces adjustment into registered vaults at JPM and the 1.4 million ounces of registered silver linked to MF-Global accounts served as the clear confirmation of theft. The deed is theft, since the account holders have lost their entire accounts, total loss.

Never before has the Hat Trick Letter quoted my own work, but the Silver Vigilante did. It is worth another look, since so revealing of the crime scene forensic evidence. This is important evidence. He wrote that Jim Willie echoed this statement at the time: "Here is the smoking gun. Days after the MF Global bankruptcy was filed, a vast array of deliveries in silver were expunged. The silver vault inventory tells the story of the crime. JPMorgan simply converted what should have been MF Global client silver into JPM licensed vaults. Review the timeline. MF Global declared bankruptcy on October 31st. About a week later the CME began reporting that 1.4 million ounces of Registered silver was unaccounted for and unavailable for delivery, including 627,182 ounces from non-cartel banks. About 7 to 10 days afterwards, JPMorgan suddenly reported a deposit of 613,738 ounces into Eligible vaults. Exactly seven days later, JPMorgan adjusted this silver into Registered vaults. JPMorgan had not seen one significant silver deposit in months prior to this bountiful day. Great work on the part of the Silver Doctors to decipher the story. The charade continues before the USCongress. They are told of claims that investigators are searching avidly for the missing funds. They know where the funds are, in JPMorgan London accounts." Sums it up nicely. See the Silver Vigilante article (CLICK HERE).

◄$$$ JPMORGAN HAS A GOLD VAULT ADJACENT TO THE NEW YORK FED IN A FAST FLOWING TUNNEL, AN UMBILICAL CORD. THE BEHEMOTH BANK IS THE OPERATION ARM OF THE CENTRAL BANK ITSELF KNOWN AS THE (U.S.) FEDERAL RESERVE. A DOUBLE COUNTING IS PRACTICED BETWEEN THE NEW YORK FED AND JPMORGAN ON GOLD INVENTORY. THINK FRACTIONAL BANKING SQUARED, AND QUADRUPLE ACCOUNTING AFTER LEASE. $$$

Some recent publicity has come for the adjacent locations of the Chase Manhattan and JPMorgan secure vault in Manhattan. The two criminal sites might be physically connected by their secure vaults. It seems a no-brainer since JPMorgan is the operational arm of the USFed itself. When the central bank requires some action to be done, whether it is buying some REPO USTBonds, or paying back a gold block on lease, or doling out $100 billion in a Dollar Swap Facility to a European bank, or covering up a narco money laundering transaction at 3am, it calls upon JPMorgan staff members. They have their protocol. The article by Zero Hedge (CLICK HERE) actually brought a yawn, sorry since so obvious. The vaults would necessarily have to be closeby for security reasons on guarding the bullion riches. For cost reasons a tunnel with convenient ramps would connect the two august syndicate institutions. What intrigues the Jackass is the attention given to JPMorgan for its criminal behavior, but more so, the attention to its partners like the Vatican and Mafia. For thirty years, the giant JPMorgan bank managed much of the Vatican gold. Events are playing out that attest to the stresses put on the Vatican by both the Basel bunch at the Bank For Intl Settlements and JPMorgan the bank. Both exert extraordinary hidden pressures.

As preface, assume safely that JPMorgan leased and sold improperly much of the Vatican gold on allocated account, with JPM the custodian in charge, the thief with the key. A well informed New York City source offered the following. JPM is the party applying extreme pressure on the Vatican by shutting down its USDollar pipeline, even announcing it with great publicity. The ultimate goal by JPM is to recoup the large gold hoard that the Vatican has stored during World War II. As for the vault proximity issue, he shared, the vaults easily communicate between 33 Liberty street (NYFed) and 1 Chase M Plaza (JPMorgue). It allows JPM & NYFed to double count gold reserves. After leasing programs, the fractional reserve practices actually result in the leverage squared. The Jackass rejoinder is to conclude that each site is double counted, resulting in quadruple gold accounting by the tag team drivers at the syndicate helm. Tyler Durden missed the fractional squared banking and quadruple gold accounting part of the story, but his work is utterly outstanding and without peer.

◄$$$ IN SEPTEMBER 2008, THE LONDON WHALE AT THE CHIEF INVESTMENT OFFICE OF JPMORGAN INTENTIONALLY STARTED THE MARGIN CALL AVALANCHE THAT CRUSHED LEHMAN BROTHERS. THE MARGIN CALL WAS NOT WARRANTED BY THE EQUITY AND LEVERAGE SHOWN ON THE LEHMAN POSITIONS. THE CALL WAS ERRONEOUS, BUT THE BIG BANK PUSHED ITS WEIGHT ON LEHMAN STAFFERS. THE MELTDOWN WAS ENGINEERED BY JPMORGAN, AND FULLY EXPLOITED BEFORE, DURING, AND AFTER THE EVENT. IT WAS IN MY OPINION PART OF PLAN TO FORCE GRAND NATIONALIZATIONS TO COVER UP MORTGAGE BOND FRAUD AND DEEP DECAY IN A VAPOROUS BANK DERIVATIVE FOUNDATION. $$$

The conventional wisdom is that in the days before the ill-fated September 15th events of 2008, a gang of rookie clerks panicked and experienced hands attempted to hold things together. Most people believe that Lehman Brothers was over-leveraged, and thus precipitated the breakdown of events in a dreadful cascade. Lehman lacked the cash, but the margin calls were not legitimate. The truth reveals something sinister at work at the time. Lehman did not falsify its balance sheet or its credit marks. All was in order, so the data path reveals, coming out in the past several weeks. JPMorgan pushed its weight around, made unjustified margin calls to Lehman, and probably exploited the situation to cover some of its own urgently needed cash demands. In fact, Lehman was victimized, and JPMorgan exploited the situation. More accurately, JPMorgan was a principal party that caused the breakdown. The contrast of experience between the two firms begs a question of motive.

The battle continues over the Lehman Chapter 7 cleanup to this day between the Lehman creditor estate and tri-party repo stalwart JPMorgan. The latest was the dead firm attempted to force a sworn testimony from a former employee of the big rogue bank. The hope is to catch the firm in a malicious act of defrauding Lehman of precious liquidity in its final hours, which is tantamount to forcing it to liquidate, a kill job as the Jackass has described it for a couple years. The Lehman estate has named the infamous and embattled Bruno Iksil as accountable along with others from London Whale herd, for an infamous fatal initial margin call to the tune of $273.3 million. The claim is that it was unjustified, and the evidence proves Lehman was correct. The margin call was not warranted. The JPMorgan credit marks were wrong, and the quarter of $1 billion cash was not warranted in added margin demanded and handed over. The Lehman filing stated, "JPMorgan made its first of two demands that week each for $5 billion of extra cash collateral that it had no right to obtain and that drained Lehman of $8.6 billion." The cash transfers burdened Lehman at a vulnerable point in time, when loaded with a heavily weighted mortgage bond portfolio and other deeply leveraged mortgage assets, called Collateralized Debt Obligations. The margin calls later followed from other Wall Street firms in a flurry, and Lehman went bust, a grand historical financial failure. JPMorgan initiated a feeding frenzy and panic. In my opinion the events surrounding the Wall Street community in late 2008 represent the death of the US banking system in its complete fallout.

Only the intrepid competent analysts and seekers of truth proceed further. The Lehman estate was absolutely correct. In other words, a chronological forensic analysis of the events surrounding the margin call in question confirm, beyond a shadow of a doubt that the margin call issued by JPMorgan's CIO unit was absolutely unwarranted. Worse, and more damning, the error was so blatantly naive, made by the expert staff where the London Whale superstar swam and washed his huge trades, that one can only conclude that the actions were premeditated financial murder for purposes of exploit. The margin call appears to have been done in a purposeful malicious manner, with full intent to destroy Lehman. Eight years after the infamous 911 attack on the World Trade Center in New York City, the finger points to a matching hidden flag attack on South Manhattan where Wall Street infects the city that does not sleep. The Lehman failure has many earmarks of a financial hit squad event, planned to force a sense of desperation.

Focus on the financial enginneering details briefly, since of extreme importance to prove the willful negligence of JPMorgan that rendered harm to Lehman Brothers. It is a short hop from willful negligence to motivated attack. The contracts in question were Credit Default Swap contracts, three different CDX trades called HY8 five year 0-10 tranche index trades, which Lehman had purchased from Bruno Iksil. The table reveals the large mark-to-market (MTM) divergence between the JPM and Lehman credit marks. The $263 million discrepancy sticks out clearly from the two calculations.

Any experienced competent credit trader could conclude that Lehman was marking its HY8 exposure correctly, and in line to what MarkIt and other pricing databases would have indicate. However, quite the opposite on the big bank side. In Tyler Durden's words, what JPMorgan did was take the upfront priced index and price at the 1 par minus price! In other words, where Lehman had it priced at 83.05%, what JPM wanted to do was express a price of 1-19.42%, or 81.58. Instead the JPM front, middle, and back office chain of command made a mistake so rookie it is impossible to call an error, It appears to have been maliciously intended to force a liquidity event. Witness a smoking gun. This was a heavily traded CDX contract, with high liquidity, easily available price quotes, commonly calculated margin needs. A correctly calculated JPM credit mark (MTM) would have been a variation margin call of just $6 million, easily managed by Lehman. Instead of a whopping $257 million greater figure, which JPM demanded from the cash-strapped company.

The rookie was correct on the Lehman side, but under pressure, they yielded to JPMorgan pressure. What drove the first of a series of fatal massive margin calls was a wrong pricing done by the big expert veteran JPMorgan, the London Whale himself, Bruno Iksil and his team. In no way was this an error made from confusion or thin market or rookie inexperience. No way! Not credible at all! In the technical terms, literally overnight, instead of pricing Lehman's paid upfront collateral at Price, JPM decided to revalue  it at 1-Price! The erroneous margin call launched by JPM's CIO is what started the cash outflow from Lehman. It was followed by two other comparable $5 billion margin calls, which likely had the same totally erroneous justification. But Lehman had no choice to the uber-behemoth and tri-party REPOS guardian JPM. Refusal to JPM was tantamount to suicide anyway. JPMorgan started an avalanche of margin calls by other Wall Street firms, which together brought down Lehman and killed them.

The signs all point to financial murder, with exploit to be clarified over time. The Jackass has identified some exploit, like the JPMorgan receipt of $138 billion by a bankruptcy judge in Manhattan on a Saturday 6am session to supposedly settle client accounts from an acquisition. The purpose and amount were both spurious. It was a reload of slush funds for price suppression in at least the Gold market. JPMorgan paints a picture of saving the American system and way of life, when it is simply piling on profits and riches for its executives, the stock long since having been pummeled.

Their reason was in the opinion of many analysts, including the Jackass, to take Lehman down and to start the nationalization process which would effectively conceal massive system-wide bond fraud and bank fraud with a vaporous banking system foundation. Fast forward to today, and the same JPM Chief Investment Office is under heavy scrutiny for the same style of business operation, but with no Lehman to lean on. The supposedly sophisticated and brilliant staff at the now infamous CIO unit had for years been misreporting its Value at Risk (VaR) due to calculation error, an Excel spreadsheet error, altered MTM rules, overridden requirements, submitted false statements to regulators, and more. What has changed in the challenge to the JPMorgan behemoth is the perception of the firm, the allegations that it operates as a criminal organization, and the smear of its integrity. The nation is enduring a systemic failure, a death event of sorts, and JPMorgan might fit the frame for much of the blame. Connect the dots, and gauge the coincidence that JPM's largest gold vault in the world is located a few steps away from the gold vault of the New York Fed. See the Zero Hedge article (CLICK HERE).

My other favorite bank analysts are the irrepressible Chris Whalen of Tangent Capital Partners and Barry Ritholtz, author of the significant book "Bailout Nation" which exposes the bank syndicate corruption tied to the USGovt. See the Ritholtz article on "Bankistan Vanquishes America" (CLICK HERE) and the article on JPMorgan's suspicious segregation of client accouts (CLICK HERE). The syndicate aspect of the JPMorgan colossus is receiving notable publicity finally, not for their expertise but rather for their deep corruption.

◄$$$ THE ULTERIOR MOTIVE FOR THE WRONGFUL MARGIN CALL BY JPMORGAN MIGHT HAVE BEEN TO ENGINEER THE NATIONALIZATION OF FANNIE MAE IN ORDER TO HIDE ITS PROFOUND ENDEMIC FRAUD, AND TO FORCE THE NATIONALIZATION OF AMERICAN INTL GROUP IN ORDER TO HIDE ITS PROFOUND DERIVATIVE COMMITMENTS THAT WOULD INDICATE THE BIG US-BANKS HAD NO VIABLE WORKING FOUNDATION. $$$

One can make a cogent credible argument that concealing a criminal clearinghouse (Fannie Mae) of slush funds with bond fraud trimmings, together with concealing the unregulated vaporous leveraged bank foundation system insured by an empty shell (American Intl Group), might have been the real motives. An ordinary mortgage bond bust would have resulted in gross disclosure by an army of prying lawyers and aggrieved major investors. Instead, the plug was pro-actively pulled, and the system went for cover under the much more effectively reinforced USGovt pillboxes in the defended cancerous larcenous fascist royal court. The recent bond purchase program by the USFed, the QE3, has a designed motive to cover through yet more monetization the most toxic but also the most fraudulent of mortgage bonds and mortgage related assets (leveraged CDO bonds) in order to bury them finally without exposure. The motive is to clear the bond logjam in order to permit the housing market an opportunity to recover. The US bankers want foreign participation as investors both for residential and commercial property, but the foreign parties have insisted that the most corrupted securities be removed from the bond market.

◄$$$ THE PREVIOUS BLATANTLY CLEAR DEMOLITION WAS OF BUILDING #7 AT THE WORLD TRADE CENTER ON 911. IT CONTAINED ENRON EVIDENCE TOWARD JPMORGAN DEEP INVOLVEMENT WITH CITIGROUP. $$$

A bloody vile footnote. Building 7 at the World Trade Center stored records from the Enron full life span, from planning to implementation to trading scams to stock fraud. JPMorgan made certain that Arthur Anderson took the fall, a project well done in creating a convenient scapegoat. Yet Anderson was the main JPMorgan partner, finally betrayed at crunch time when Enron inevitably failed. The Enron project was hatched at Harvard University as an fictional market experiment. The financier was Citigroup. The investment banker, complete with expertise to lead in creating offshore special purpose vehicles in Cayman Islands, was JPMorgan. By the way, the huge Harvard Endowment Fund profited on the rise of Enron stock, then was tipped off by JPMorgan and Citigroup, and profited by shorting the Enron stock on its decline. Mohamed El-Erian (now of PIMCO) was a lead manager of the huge fund at the time. He moved from the east coast to the west coast to escape the wide spotlight from Enron.

Reports from several sources tell the same story. They indicate with details that a shootout took place on 911 at the lobby of Building 7 between the white hats of the FBI and the private security thugs of the Wall Street bank. Two dozen dead bodies littered the lobby before the entire building was sent to demolition, which subsequently fell due to structural sympathy for the twin towers, so claims the absurd official 911 Commission story, even whose authors dispute. That structural sympathy part of the story stands as the most ludicrous cockeyed sham explanation in my entire adult memory. It is like a third tree falling after two nearby trees are cut down by a chain saw, out of structural sympathy. Yet the public swallowed the cockamamey drivel.