BIG BANK BLOODBATH
Many are the bank losses, which continue unabated. Many are the lawsuits, which continue unabated. Many are the criminal prosecutions, which continue unabated. Many are the banker deaths which continue unabated, but whose patterns cannot much longer be made to look like suicides. The climax is in progress, as LIBOR fraud, FOREX fraud, and Gold market fraud are coming into full view. Deutsche Bank is a key element serving as crowbar to force the data, communications, and testimony into the open. The banking system insolvency has turned acute, also in the open. The crime syndicate is perceived. The big banks are leading the systemic breakdown, due to insolvency, bond fraud, contract fraud, financial market fraud, derivative market fraud, collusion, conspiracy, grand larceny, and probably murder.
◄$$$ THE INVESTMENT FIRM AIS CAPITAL MGMT HAS FILED A CLASS ACTION LAWSUIT AGAINST THE FIVE BANKS THAT SET THE LONDON BENCHMARK GOLD PRICE... THE BIG CORRUPT BANKS HAVE MOVED FROM LIBOR CRIME TO FOREX CRIME, NOW TO GOLD CRIME... THEY ARE BEING CORRALLED. $$$
A US investment management firm has filed a lawsuit against the five banks that set the London benchmark gold price. The formal allegation is that the banks conspired to manipulate the Gold price with corrupt motives and gains. Based in Connecticut, AIS Capital Mgmt, filed a class action complaint on March 10th against Barclays, Deutsche Bank, HSBC Holdings, Bank of Nova Scotia, and Societe Generale in the US District Court for the Southern District of New York. The suit is on behalf of AIS and other investors involved with trade of gold futures, gold futures options, and gold derivatives. Such contracts were settled based on the gold fix, from 2004 to present. My best sources tell that the case is real and the plaintiff has teeth. See the Market Watch article (CLICK HERE).
Maybe BaFin or some other sources might provide data and information from back channels to AIS and its defense team, in order to help the other plaintiffs in their lawsuit. Putting pressure on the big corrupt banks in the US and the UK could push the banksters down the steps sooner. The Voice assured that the banks cited are being circled and corralled, then later to be slaughtered.
◄$$$ JPMORGUEN WAS THE MONEY LAUNDERER FOR MADOFF... THE GIANT BANK IS DIRTY UP TO ITS NECK WITH THE MADOFF FUNDS PROCESSING... THEY WERE TOTALLY AWARE, AND PERJURED THEMSELVES IN THE COURT... THE CASE WILL NOT GO AWAY. $$$
A newly obtained government document explains why, even five years after the Madoff arrest spotlighted his close ties to JPMorgan, the picture remains clouded and filled with stench. The giant corrupt bank center has reached a $2 billion settlement with federal authorities, but the case will not go away. Obtained through a Freedom of Information Act petition, certain key documents reveal an ongoing dispute between the Madoff team and the JPM hive, sure to challenge the bank's legal position further. It raised alarming accusations of perjury at the bank, certain to seek some verification. Next might come perjury charges against its deeply tarnished officials, in a separate case. More broadly, JPMorgan is positioned against the USGovt and ultimately one government agency against another, since the original Madoff arrest in December 2008.
Federal regulators at the Office of the Comptroller of the Currency pursued copies of the legal team interview notes that pertained to interview conducted internally to the bank. The issue gained momentum in 2012, when the OCC office conducted its own interviews with JPMorgan employees and discovered a pattern of forgetfulness stated under oath. The discovery phase was extensive. Suspicious that the memory lapses were feigned, the regulators again pursued the interview notes held by JPM legal team. The bank denied the requests. In its denial, the bank cited confidentiality requirements like the attorney-client privilege, a sacrosanct legal protection that covers private communications between a lawyer and a client. See the New York Times article (CLICK HERE). Next might come the perjury cases, which could arrive at any time, since aggrieved parties will not go away.
◄$$$ MADOFF SAID JPMORGAN EXECUTIVES KNEW OF HIS FRAUD, IN A NEW LAWSUIT BY JPM SHAREHOLDERS THIS TIME... THE INVESTORS HAVE TARGETED JPM UPPER MANAGEMENT, WHO ARE NOT PROTECTED BY THE DEFFERRED PROSECUTION DEAL. $$$
JPM shareholders have begun an attack against CEO Jamie Dimon and twelve other current and former JPM executives and directors. They have taken formal action, based in part from statements made by Madoff during a series of prison interviews. It is alleged that two senior officials at JPMorgan Chase, in addition to predecessor companies, repeatedly confronted Bernard Madoff over irregularities in his business. They directly accuse that bank officers had direct knowledge of his Ponzi scheme. The lawsuit was filed in federal court in Manhattan in mid-February on behalf of JPM shareholders, an entirely different twist. The formal complaint stated, "JPMorgan was uniquely positioned for 20 years to see Madoff's crimes and put a stop to them. But faced with the prospect of shutting down Madoff's account and losing lucrative profits, JPMorgan at its highest level chose to turn a blind eye." The revelations have come four to six weeks after JPMorgan agreed to pay an enormous $2.6 billion to settle lawsuits over its Madoff dealings, which related to the Bernard L Madoff Investment Securities LLC. However, the legal fine print has some leeway. Those lawsuits were brought by the USGovt, the Madoff Fund Trustee Irving Picard, and other shareholders. Picard has estimated that Madoff customers lost $17.3 billion. The Jackass has European sources that indicate the losses to be $150 billion, the funds tucked safely away in Swiss subsidiaries to Israeli banks. Here is the nasty twist for Dimon et al. The legal settlement included a Deferred Prosecution Agreement (DPA) to resolve criminal charges, under which JPMorgan acknowledged its responsibility for failing to stop Madoff. The DPA is not a type of formal immunity. It only means much later, the prosecutors have the right to continue the case. Furthermore, the JPM upper management was not implicated in that agreement. They might be soon.
David Rosenfeld is the attorney on record for the new lawsuit. He has proceeded, based upon many hours of interviews with Madoff, including some done personally on October 28th at the federal prison in North Carolina. During the talks, Madoff suggested that top JPM officials knew of the fraud. The giant bank did not disclose how its own senior executives at JPMorgan knew of the deep fraud by Madoff, or the urgent need to shut the fund down. It is an important distinction. The DPAgreement cannot defer what is not admitted. JPM officers did not admit to anything. The red herring in the case is Madoff himself, hardly the solid reliable unimpreachable witness. He informed Rosenfeld that what he has said is also easily verifiable. What Madoff said is not the legal piece to be used, but rather the spotlight to follow in pursuit of solid legal pieces.
The lawsuit was filed on behalf of some rugged no nonsense parties. They are the Steamfitters Local 449 Pension Fund in Pittsburgh Pennsylvania, and the Central Laborers Pension Fund in Jacksonville Illinois, both shareholders of JPMorgan. According to the complaint, senior bank officials who dealt with Madoff included Walter Shipley (former chief executive of Chemical Bank and Chase Manhattan Bank), and Robert Lipp (former JPMorgan senior adviser and director). Allegedly, Shipley and Lipp repeatedly confronted Madoff with significant concerns about irregularities in the fund's regulatory filings. In focus are certain JPM reports filed by Madoff with respect to Norman Levy, a former client of JPMorgan and Madoff, now deceased. The reports indicated strongly that Madoff was not investing Levy's money or lending him money on margin. The allegation continued that Shipley and Lipp often met Madoff for lunch over a ten-year period, frequently along with Levy, where they raised their concerns. The complaint made clear that the JPMorgan executives acted on a desire not to lose business from Levy, described as an extremely important preferred top-tier client of its private banking unit. The case is Central Laborers Pension Fund et al v. Dimon et al, US District Court, Southern District of New York, No 14-01041. See the Reuters article (CLICK HERE).
◄$$$ DIMON WAS AWARDED A 74% RAISE AFTER BILLIONS IN FINES, THE PUBLIC SPECTACLE OF MADOFF COMPLICITY, AND SCATTERED FRAUD... MISSION ACCOMPLISHED, WITH CONTINUED USGOVT WELFARE STILL ATTACHED AT THE GANGWAY WHILE SLUDGE IS EMITTED AT THE BILGE PUMP... THE JPMORGAN WOES EXTEND TO A BLOODBATH OF REPORTED QUARTERLY LOSSES, ANNOUNCED AFTER THE DIMON SALARY HIKE FOR FINE PERFORMANCE... DESPITE THE ROBUST ECONOMIC AND HOUSING RECOVERY, THE BIG BANK WILL CUT ANOTHER 8000 WORKERS... LAST YEAR THEY CUT 16,500 WORKERS, ALSO DURING A RECOVERY. $$$
After agreeing to pay $23 billion in penalties and settlements in 2013, JPMorgan Chase CEO Jamie Dimon was rewarded a 74% pay raise to $20 million in annual salary. Talent must be retained. The decision was made by the Board he chairs. No matter that Dimon has presided over a series of costly settlements with government investigators, including paying $13 billion for prevalent mortgage bond fraud and contract fraud activity and $2 billion for Madoff Fund tenuous complicity. The biggest accomplishment by Dimon has been to continue the USGovt banker welfare spigot, and to keep all felony convictions at bay. See the Business Week article (CLICK HERE). Dimon remains a hero in American lore, just like Al Capone, John Rockefeller, Leland Stanford, John Pierpoint Morgan, Joseph Kennedy, William Gates, Robert Rubin, and Hank Paulson, all criminals in the world of ethics, if not law. Dimon is in a league of his own with Rubin and Paulson.
JPMorgan announced some truly dreadful quarterly data as required to shareholders. JPM had a 15% decline in sales revenue versus a year ago. Revenue is down broadly across businesses, the worst being fixed income, cited due to lower client activity. The Madoff settlement kicked out $2 billion from the loan loss reserves. The lousy weather is once again blamed for client activity. But the other side that must be brought to light is how the High Frequency Trading methods combine with the USFed Quantitative Easing practices to remove any viable market participation by real investors. Market integrity is fading away. The bond market has effectively vanished. It is utterly amazing that the JPM share price is more than $1 per share, given it is bankrupt, crime ridden, without equity, without reserves, its HQ sold off, and plundered by its executives, with no connection whatsoever to economist valuation models. See the Zero Hedge article (CLICK HERE).
The venerable JPMorgan bank will cut another 8000 workers. After firing 16,500 workers in 2013, the investors must realize the job cuts were a mere down payment with more to come. The bank will furlough another 2000 in the consumer, business, and merchant segment, and another 6000 in the mortgage banking segment. Keep in mind that the job reductions are being done during a housing and economic recovery, whose chief promoter is Joseph Goebbels in spirit. See the Zero Hedge article (CLICK HERE).
◄$$$ NEXT CITIGROUP REVEALED ACCOUNTING FRAUD IN ITS MEXICAN UNIT... THEY MUST BE FOLLOWING THE LEADER EXAMPLE AT THE HOME OFFICE... NO ADMISSION OF NARCO MONEY LAUNDERING PROFITS WAS CITED IN OFFSET. $$$
Citibank has uncovered deep fraud in its Mexican subsidiary, forcing the venerable criminal bank to revise its Q4 earnings lower. They called it a despicable crime with their second face. The fraud involved PEMEX, the state owned oil company, which is rife with criminal activity in skimming funds, stealing oil, redirecting pipelines, stealing equipment, even violence against local police. The magical cut in earnings will amount to $235 million, hoping nobody will notice. The USGovt uses the same methods. Report estimated data, loaded with goofy assumptions, having no basis, absent from reality, then boost the stock price with some Plunge Protection Team participation, then a month later announce the discoverery of fraud in a subsidiary. To be sure, the reported amendment will not include any narco money laundering activity, which is rampant and critical to cover gaping holes.
The released 8-K released in late February went as follows, verbatim but abridged. Citi announced today that it is adjusting downward its fourth quarter and full year 2013 financial results, from those reported on January 16, 2014, by an estimated $235 million after-tax ($360 million pre-tax) as a result of a fraud recently discovered in its subsidiary in Mexico. The financial impact will lower Citi's 2013 net income from $13.9 billion to $13.7 billion. Citi's 2013 Annual Report on Form 10-K, to be filed with the US Securities & Exchange Commission on March 3, 2014, will reflect these adjustments. Citi also intends to release a revised Fourth Quarter of 2013 Quarterly Financial Data Supplement reflecting these adjustments.
As of December 31, 2013, Citi, through Banco Nacional de Mexico ("Banamex"), had extended approximately $585 million of short-term credit to Oceanografia S.A. de C.V. ("OSA"), a Mexican oil services company, through an accounts receivable financing program. OSA has been a key supplier to Petroleos Mexicanos ("PEMEX"), the Mexican state-owned oil company. Pursuant to the program, Banamex extended credit to OSA to finance accounts receivables due from PEMEX. As of December 31, 2013, Banamex also had approximately $33 million in either outstanding loans made directly to OSA or standby letters of credit issued on OSA's behalf. See the Zero Hedge article (CLICK HERE).
◄$$$ DEUTSCHE BANK EXPLAINED IN AN INTERBANK COMMUNIQUE NOTE THAT THE GERMAN HIGH COURT OPENED PANDORA'S BOX... THE OBJECT OF SCRUTINY WAS THE OUTRIGHT MONETARY TRANSACTIONS (OMT)... THEY ARE OPENLY CHALLENGING THE LEGALITY OF DRAGHI PATCHES FROM THE EURO CENTRAL BANK... THE DRAGHI POWER WINGS JUST GOT CLIPPED BY GERMANY. $$$
In early February, a surprising and perplexing decision was made by the German Constitutional Court (GCC) when it ruled that the Euro Central Bank had exceeded its powers. They poked a gigantic hole in the Draghi ECB when they declared that the "ECB's Outright Monetary Transactions program likely exceeded the central bank's powers." It was a major display of macho stones. The Draghi existence in a self-proclaimed post is anathema to the historically prestigious Bundesbank. Recall Prince Draghi regularly pontificates that he will do whatever it takes (see speech in July 2012) to keep the EuroZone together. The German court ruling displays the arrogant prince as having no monetary clothes. The Karlsruhe Court added that "There are important reasons to assume that the OMT exceeds the European Central Bank's monetary policy mandate and thus infringes the powers of the member states, and that it violates the prohibition of monetary financing of the budget. Subject to the interpretation by the Court of Justice of the European Union, the Federal Constitutional Court considers the OMT decision incompatible with primary law." It was a complete dismemberment. They shot down bond monetization itself, the printing of money to cover debt securities in unsterilized manner. The GCC responded by referring the final decision to the European Court of Justice, which has traditionally sided with European Union institutions. The prevailing logic has that the European Court would not threaten the very existence and purpose of the Draghi EuroCB. The bond markets of Europe barely responded with a burp.
Next came the Deutsche Bank memorandum, a communique delivered as a note overnight. In it D-Bank postulated that the GCC might have deliberately opened a Pandora's Box with its decision. The D-Bank derivatives exposure actually dwarfs the JPM volume by comparison. In definitive clear terms, the note made two important points. First, the OMT patchwork of bailout bonds exceeded the competences granted to the ECB by the European Treaty. Second, the Euro Central Bank would not consider itself bound by a positive ruling of the European Court of Justice. In D-Bank's opinion, the bank has put its weight behind the report's authors, who concluded that it "alters substantially the level of insurance we could expect from the ECB against any return of sovereign turmoil." In other words, the arrogant Whatever it-Takes backstop of an EuroCB led by the arrogant Draghi just had its mandate trimmed, pruned, and sheared resoundingly by Germany. The Bundesbank might have orchestrated more of the legal maneuvering than is apparent. The Buba despises the Draghi central bank for usurping power in the overreach of empire. The entire European banking foundation has been challenged for soundness and integrity. See the Zero Hedge article (CLICK HERE).
◄$$$ EUROZONE BANKS FACE A CAPITAL HOLE VALUED AT 50 BILLION EUROS, WITH A MAIN POCKET OF WEAKNESS BEING IN GERMANY. $$$
EuroZone banks are facing a new capital black hole of as much as EUR 50 billion, according to one of London's most respected financial analysts. The CEO of Algebris, Davide Serra advises the UKGovt on banking matters. He claims that this year's stress tests by the European Banking Authority and the Euro Central Bank were likely to find deep holes in the EuroZone banks. He pointed in particular to Germany as having one of the worst banking systems in the world, with three or four regional Landesbanken ready to be plowed under. It is always the basis of humor and the cause of laughter to hear New York and London bank analysts harshly critical of other nations and their banking system woes. The US and UK are the sites of predatory criminal insolvent colossus bank centers deeply committed to bond fraud, derivatives violations, financial markets rigging, and narcotics money laundering. Serra believes the banks in Portugal and Greece were likely to need more capital. "The country where I expect bad news is the country which has not been scrutinised and has been deemed to be the strongest," Serra said in reference to Germany. Without much reference in detail, the German banks are owners to over 90% of the French Govt debt, all of which is problematic. See the UK Telegraph article (CLICK HERE).
◄$$$ A RENOWNED HARVARD ECONOMIST PULLED ALL HIS MONEY FROM BANK OF AMERICA... HIS REASON WAS NO BENEFIT IN INTEREST WITH THE HIGH RISK OF NOT RETURNING HIS FUNDS. $$$
A classical economist has been preaching to the world that one's money is not safe in the US banking system due to the Weimar-like activity sponsored, endorsed, and acclaimed at the USFed. Burnham is no hypocrite. He put his withdrawal slip where his mouth is, by pulling $1 million out of Bank America. Terry Burnham is a former Harvard Economics professor, author of "Mean Genes" and "Mean Markets & Lizard Brains" who has served as a long-time critic of the Federal Reserve, a certain provocative figure and true gadfly. He argues that the USFed efforts to strengthen American banks have perversely weakened them, a point consistently shared by the Jackass. He boasted, "Last week I had over $1,000,000 in a checking account at Bank of America. Next week, I will have $10,000." He calls himself a stopped clock of criticism of the Federal Reserve at work for half a decade. He is a maverick and a brilliant one. His arguments are cogent and crisp. When the USFed intervenes in markets, it results in two negative effects. First, it decreases overall wealth by distorting markets and encourages bad investment decisions. Second, the members of the USFed become detrimental social architects. They take from the smaller unsophisticated investors and give to the rich with political connections. These effects have been noticed by the public. A recent Gallup poll reported that only the richest Americans support the USFed monetary policy.
Terry Burnham went further, explaining the micro rationale, the above argument being the macro rationale. He has withdrawn his funds from Bank of America because they pay zero interest. An added risk persists, that BOA will not redeem his account funds at a later date during the height of crisis. He stated that the cost-benefit conclusion has gone from stay to flee. The money is not kept safe, pays no yield, and might not be returned, succinctly put. See the Zero Hedge article (CLICK HERE).
◄$$$ BANKSTERS ARE CURRENTLY VIEWED WITH THE SAME LEVELS OF NEGATIVITY AS ORGANIZED CRIME, TERRORISM, AND DICTATORSHIP... THE RISK TO SOCIETY IS CLEAR, BUT THE RISK TO THE ECONOMIC FUNCTION IS ACUTE. $$$
Some new research from Media Tenor Intl (a Swiss based firm) has slammed the banking industry. The tainted industry is currently viewed with the same levels of negativity and disdain as organized crime, terrorism, and dictatorship. Their work has covered a great many industries. According to the firm, such a low level of negativity has not been seen in Media Tenor's 20 years of research experience. The survey positions banks as posing a greater societal risk than nuclear power or tobacco. Some people actually believe the research will step up the pressure on regulatory bodies and central banks to reform. But such is pure folly. Instead the banks will up the pressure on society with war, confiscated accounts, virus microbes, tainted food & air, contaminated oceans, abolished liberties, with much more ready in the wings. The cabal remains in control, but it is on the defensive. Indeed the critical risks banks face is maintaining their license to operate, while gives renewed emphasis to the dangers society faces from an untrusted unchecked banking sector. A business factor should be sobering and even encouraging. The breakdown of trust raises questions about how banks can maintain their current client relationships and attract new business. The larger problem is that capital formation within the broad economies depends upon the vitality of a strong banking sector. Therefore the risk is acute of systemic failure from inadequate income to service debt. See the Consortium News article (CLICK HERE).
◄$$$ A POTENTIAL MAJOR BANK FAILURE IS THE RISK AT ROYAL BANK OF SCOTLAND, DESPITE ITS UKGOVT PARTIAL OWNERSHIP... A BLACK HOLE HAS BEEN CREATED, WITH BOND FRAUD, BOND LOSSES, HIDDEN DEBT, THREATENING THE BIG CORRUPT BANK... NEXT CAME THE SEC WARNING, FOLLOWED BY THE MOODYS DEBT DOWNGRADE... THE HOLLOWED OUT BANK WILL CUT 30,000 JOBS IN A HUGE RETREAT FROM MORTGAGE BANKING... ITS DEATH IS NEAR, EVEN WITH SUPPORT LINES TO THE UKGOVT. $$$
The SEC warning was indeed prescient. The Royal Bank of Scotland Group is Britain's biggest lender, supported by large guy wires, oversized pylons, and wide money funnels to the UKGovt. The government owned lender made no effort to prepare the shareholders for a staggering loss. Back in 2008 the failed bank made history after setting aside GBP 3.1 billion (=US$5.1bn) for legal and compensation claims. Recall that RBS bought Ulster Bank even though chock full of unrecognized mortgage swill, levered to the hilt, with the debt hidden effectively. Over five years ago, the UKGovt awarded RBS the biggest bank bailout in history. The government still has not been able to cut its 80% stake. New CEO Ross McEwan, embattled but not responsible, commented "When the crisis broke, the bank was involved in a number of different businesses in multiple countries that have subsequently faced heavy scrutiny by customers and regulators. The scale of the bad decisions during that period means that some problems are still just emerging." Expect them to continue emerging until the bank failure climax across the Western big banks occurs, with RBS among the most vulnerable to collapse. In late February the axe fell. The pre-tax 8.2 billion Pound corporate loss is called sobering by the CEO, who faces the music. He admitted RBS to being the least trusted among the banking businesses. Compare the outsized loss to a 5.2 billion Pound loss posted in 2012. McEwan expects the bank to need a further three to five years for a verifiable recovery. A silly comment since it is walking dead.
The RBS will continue to shrink by order, as it will reduce its international and investment operations. The group, which includes NatWest and Ulster Bank, will concentrate instead on the retail market in the United Kingdom, with a renewed focus on the basics. Its seven operating divisions will be transformed into just three customer businesses: personal, commercial, and corporate. As part of this back to basics approach, the bank conglomerate will make sweeping reforms. They include an offer of simpler retail products, a cut in the length of time it takes to set up a current account, and rewards for the loyalty of existing customers, rather than offering sweeteners to new clients that have angered existing clients. It will also increase lending to small businesses. The bank is very busy cleaning up a 2.2 trillion Pound balance sheet that has rot, dents, and toxic elements laced all through it. The bank has shrunk by nearly half since 2008, and had shed a section of its business equivalent to the size of Lloyds. Its cost structure is way out of line with the competition. Its cost-to-income ratio currently stands at 73%, but RBS has set a target of bringing this down to about 55% by 2017.
Then came the firestorm of controversy. Despite the increased loss, RBS set aside 576 million Pounds for staff bonuses in 2013, a drop to be sure from the 15% on 2012. Of that sum, 237 million Pounds went to investment bankers. The executives explained that to remain competitive, they were compelled to offer generous bonuses, or else face a mass exodus. An exodus is occurring everywhere but upper management. McEwan defended the bonus pool, arguing that attracting the most talented staff was essential. The best employees were constantly being tapped by other institutions. Critics called the bonuses an astonishing betrayal by RBS, a state-sponsored grab by greedy senior bankers, and a commitment to reward failure. Nothing ever changes at the bonus trough, a basic self-dealing routine.
Then came the job cuts. McEwan confirmed that reducing costs would inevitably result in reduced staff levels. The sprawling lender will shrink by 30,000 as businesses including its US bank and some British branches are spun off. The bank will also pull out of dozens of the 38 countries in which it retains a business presence. The 30,000 jobs cited by the Financial Times included the 18,500 staff at RBS Citizens Financial Group, its US banking unit. That unit will be sold by RBS in an initial public offering this year. The cuts includes about 4500 workers at Williams & Glyn, a group of 314 branches that RBS is selling to satisfy regulators as a condition of its state bailout. The government, which owns 80% of RBS, has been pushing the lender to focus on UK consumer and corporate banking, in the aftemath of 45.5 billion Pounds (=US$76bn) invested by the UKGovt five years ago. The former CEO Stephen Hester departed in October after announcing he would leave in June. The RBS had created an internal Bad Bank in an effort to speed up the cleaning up of its balance sheet. That is always a sign of a mountain of toxic and fraudulent paper. See the warning in the Zero Hedge article (CLICK HERE) and company loss in the BBC article which includes a McEwan interview (CLICK HERE). Also see the debt downgrade in the Reuters article (CLICK HERE) and the job cuts in the Bloomberg article (CLICK HERE). Lastly see the Irish exposure in the Boom Bust Blog article (CLICK HERE).
◄$$$ CREDIT SUISSE SAW SCRUTINY BY THE US-SENATE FOR TAX EVASION... THE SWISS BANK IS ACCUSED OF AIDING AMERICAN CLIENTS IN HIDDEN ACCOUNTS, TAX EVASION, AND GOLD PURCHASE... THE SWISS BANKS ARE WORKING COOPERATIVELY WITH THE USGOVT IN DATA SHARING. $$$
Credit Suisse was subjected to the scanner and spotlight during a US senate hearing in late February. Nothing much happened except for a lot of noise and camera flashes. The Swiss bank will shut down its riskier investment banking businesses and largely exit US and Asian markets, as compromise. It has been under review for tax evasion. Stories are wild, like a wealthy customer who traveled on flights hiding $250,000 in pantyhose to tuck away in Swiss accounts. Their bankers are accused of aiding clients by purchasing gold bars to store in Swiss bank vaults. The USGovt prosecutors claim they have evidence to support their case that Credit Suisse helped US customers evade taxes on at least $4 billion in hidden assets. The scoop is that Credit Suisse has discussed a settlement of about $800 million. If penalties fall under the tougher US guidelines on reporting of foreign bank accounts, the penalties could reach 50% of account values. In the Credit Suisse case, that would mean $2 billion in fines.
In 2009, the other major Swiss bank UBS paid $780 million to settle similar charges. But at the time, in the height of the global financial crisis, the US and Swiss banking regulators struck a deal for a lighter penalty. They agreed to reduce the risk of upsetting the already vulnerable markets, but the Jackass has heard that important cooperative agreements were the deal. The Swiss banks have been working closely with the USDept Justice ever since on numerous investigations and data sharing pacts. As part of the controversy and the legal battle, in all eight Credit Suisse bankers have been charged, but all remain at large. They are believed to be hiding in Switzerland, maybe in full view. Furthermore, 14 Swiss banks are under criminal investigation. The USGovt has disclosed that up to 100 Swiss banks have signaled their intention to come clean about hidden US client under a program that promises leniency in exchange for cooperation. The statute of limitations is six years after a tax violation is brought forward in order to bring charges. See the CNN Money article (CLICK HERE).
◄$$$ MORE DEAD BANKERS, THE PILE GROWS... IN ADDITION, A WICKED TWIST, AS THE SON OF JON CORZINE (MF-GLOBAL INFAMY) WAS FOUND DEAD... THE LEGION OF MID-LEVEL BANKERS KNOW TOO MUCH, BUT ARE NOT HIGHLY RANKED. $$$
The pile of dead JPMorgan employees continues to grow. An Information Technology specialist at JPMorgan since 2008 was found dead outside a Walgreens pharmacy in Pearland Texas. He might have known too much about the $100 billion London Whale derivative losses. A FOREX trader for JPMorgan took a leap out of a Hong Kong office building. He might have known too much about derivative market price rigging. Another banker was found dead, a successful man who worked in an Arizona bank. He might have known too much about gun running with the Mexican drug cartel. A young stock trader from a Manhattan boutique threw himself in front of a train. He might have had a push, for knowing too much about High Frequency Trading. Lastly, Jeffrey Corzine, son of the former New Jersey governor and infamous CEO of the bankrupted defrauded MF-Global, was found dead in Mexico at age 31. It could have been a contract kill by the cartel south of the border, even as a favor. He had a history of drug problems, but was clean and sober reportedly. If they cannot reach the father, then move down the family line perhaps. See the Silver Doctor article (CLICK HERE). See the Zero Hedge article (CLICK HERE). See the Zero Hedge article (CLICK HERE). See the New York Post article (CLICK HERE). See the New York Post article (CLICK HERE).
The Jackass forecast of murdered mid-level bankers was made in mid-2011. The rationale was not complicated. The Voice made a passing comment that justice would never be served, surely not in a Nuremberg Banker Trial, a topic among a group of us at the time. So the forecast came into form. Too many mid-level bankers are not high enough ranked to be protected as CEOs, VPs, directors, of board members. They are not low enough ranked to be meaningless, without information to guard against revelations. The mid-level bankers did the trades, made the mule runs (bonds, cash), set up the offshore accounts, handled gnarly problems with foreign legal teams, met with dirty clients, developed the software systems, saw the funds in movement, verified finished projects to their executive management staff. The mid-level bankers know too much and could cooperate with prosecutors, but are expendable. They could reveal how dirty and ugly and rigged and corrupt the system really is. With the systemic crash imminent and in progress, with the big banks surrounded by barbarians, with prosecutions picking up speed, the legion of mid-level bankers represent a great risk. This correct forecast will continue to keep giving, like raining bankers from the sky. However, they are not the deeply culpable bankers at the top. As footnote, Vincent Foster served as a mule to do a Vatican bearer bond run, but he eventually refused the Clinton gang, then quickly suicided.