V polovině měsíce jsem publikoval část výňatku zaměřenou na stav Bank of America a projev Bernankeho v Jackson Hole Nyní najdete další vybrané úryvky.
Americké banky bojují mezi sebou. O co? O to, kdo koho sežere.
ENTER THE CANNIBALS AMONG THE BIG US-BANKS. THE EXECUTION OF BEAR STEARNS WAS THE FIRST KILL. PERMITTING LEHMAN BROTHERS TO BE KILLED WAS AN EXPLOITED MERCY KILL, DECIDED AMONG THE BRETHREN IN CONSENSUS. NEXT WILL BE A KILLJOB OF A WEAK BROTHER, SINCE IT OFFERS PROFIT POTENTIAL. A GANG ALWAYS TURNS ON ITS WEAK LINKS. THE GROUP’S LOSSES ARE MONSTROUS. THEIR SURVIVAL IS AT RISK. TURNING ON WEAKLINGS ASSURES MORE TIME AND GREATER CHANCE TO RESIST THE COLLAPSE. WATCH THE LAWSUITS. THE ENTIRE BANKING PLATFORM WILL COLLAPSE IN MY VIEW, LEADING TO A BANK HOLIDAY CLIMAX, WHERE MASSIVE THEFTS CAN BE FACILITATED. THE COMMON TARGET APPEARS TO BE JPMORGAN, THE OBJECT OF A CLASS ACTION SILVER INVESTMENT LAWSUIT.
The AIG $10 billion lawsuit against Bank of America is just an opening salvo, many more to follow. The Federal Housing Finance Agency lawsuit against 17 global banks is a major escalation. The digestion of Countrywide Mortgage by BOA and of Washington Mutual by JPMorgan seemed like opportunities to exploit some profit at the time, deals made with expedience and greed in mind. The colossal losses have been estimated by numerous entities. Bloomberg tallied $66 billion in losses from the five biggest US home lenders. Analyst Paul Miller of FBR Capital Markets has credibility. Miller expects costs for all banks to surpass $121 billion as the dust begins to clear on lax lending practices. Under his new estimate, which covers only repurchase costs, Bank of America, Wells Fargo, JPMorgan, and Ally Financial will bear 60% of the burden, with Bank of America alone paying 33% of it. Neil Barofsky served as special inspector general for the Troubled Asset Relief Program (TARP). He succinctly said, „You are not talking about improperly stapling together two documents. You are talking about systematic fraud in the system. What this shows is that before the financial crisis, the banks were essentially lying to the purchasers of the mortgages about the quality.“ Nice summary, no nonsense or murky language. Diverse profound systemic fraud.
The Bloomberg tally was compiled from regulatory filings, company statements, and financial presentations. The data covers provisions and expenses attributable to repurchases, foreclosure errors & abuses, payments to reimburse investors for lost value on faulty mortgages, legal settlements, and litigation expenses. The compilation also includes writedowns of assets, such as mortgage servicing rights, when a firm attributed the loss in value to problems in mortgage underwriting or foreclosures, and the costs of remedies. The figures are fluid, sure to increase as more details become available. While a comprehensive list of categories, in no way does it cover all the hidden toxic credit assets at the biggest banks. The trailing losses are staggering, only a portion made public. Previously known as GMAC, Ally has suffered $3.28 billion in costs. After the former car finance firm for sales & leases lost $10.3 billion in 2009, it required a USGovt bailout totaling more than $17 billion, largely due to losses from its Residential Capital mortgage unit. Ally is 74% owned by the USDept Treasury, the proud owner of toxic swill paper. Citigroup has racked up staggering losses, a record 2008 net loss of $27.7 billion that paved the road for a $45 billion bailout to cover subprime loans gone bad. At least the subprime loan crisis was contained, hardly!!
Wells Fargo has filed lawsuit against JPMorgan over 800 ruined home mortgage loans.They wish to force JPM to buy back the entire basket of toxic paper that it oversees as trustee. They accused the EMC Mortgage unit within the JPMorgan fortress of refusing its demands that EMC buy back the loans they originally acquired from the Bear Stearns Mortgage Funding Trust. The claim cites reckless home loan approval despite clear defects, including faulty appraisals and inflated borrower incomes. In a forensic sampled review, it was demonstrated that EMC breached warranties on 89% of 948 loans. Wells Fargo called the basket plagued by an alarming rate of defaults and foreclosures. The structure is complex. Trustees such as Wells Fargo act on behalf of investors in securities (mortgage bonds) backed by underlying loans. Aggrieved banks such as Wells Fargo and US Bancorp have taken their cases to the courts, where Wall Street influence is minimal. US Bankcorp sued Bank of America Corp last month, as part of the parade. Wells Fargo has size. By assets, it ranks fourth among US banks, but among mortgage lenders, it ranks first.
JPMorgan is the target of another lawsuit, a class action silver investor lawsuit that might actually gain traction. The case involves significant revelations and details of players involved and techniques used, even motive. The case was filed in the US District Court of New York against JPMorgan for Silver price manipulation. Insider perspectives are shown. The stage was perhaps set, or greatly enhanced, by the giant bank’s acquisition of massive short silver position owned by Bear Sterns. Point #93 indentifies Robert Gottlieb as the person who developed that massive short silver position, along with assistance from HSBC silver trader Mike Connolly.
Banky shánějí financování i výměnou za zlato
BANKS RUSH TO LEASE GOLD ASSET TO OBTAIN USDOLLAR FUNDING. THE LEASE RATE IS ACTUALLY NEGATIVE, A SIGNAL MUCH LIKE AN UPSIDE DOWN NATIONAL FLAG FLOWN ON THE MAST AT A FORT UNDER SIEGE. THE FACTOR IS SHORT-TERM NEGATIVE FOR GOLD, BUT LONG-TERM EXTREMELY POSITIVE FOR GOLD. RECALL THAT AFTER THE 2008 GOLD DECLINE, THE GOLD PRICE MORE THAN DOUBLED IN TWO YEARS TIME.
The liquidity problems among European banks is heightened acute radical nasty. The distressed banks are rushing to use their gold assets in order to access desperately neededUSDollar funding. Gold dealers and analysts report a strong increased move to lend gold in the past week, accelerating in recent days. The rush has pushed gold leasing rates to record lows, according to Thomson Reuters data. The murky market puts lease rates as the implied interest rate for lending gold for USDollar funds. The Jackass admits not to comprehend this fuzzy niche well. The one-month gold leasing rate has plunged to a historic low of minus 0.48%, which means a bank lending gold for one month would have to pay to do so. Therefore they hold their gold tightly. The latest move is dramatic and highlights the stresses in the USDollar funding market, according to bankers. Huge demand has come at the end of quarter in September for exchanging gold forUSDollars. The cost for European banks to swap Euros into USDollars has jumped five-fold since June, hitting the highest levels since December 2008, essentially locking out the weaker players. Veteran traders explain that the large volume of gold leasing was one reason gold prices had struggled to achieve upward momentum, despite growing concerns over theEuroZone crisis, the teetering bank edifices, and the visible impact craters. The lower (even negative) lease rates are bearish for gold, since the asset is used to raise cash. However, it is also a long-term signal of profound distress which is tremendously supportive of gold from the next chapter assured to include bond bailouts, bank recapitalization, and monetized debt, even enormous economic stimulus in extremely motivated reaction.
Přípravu na konvertibilitu yuanu jsou v plném proudu
LONDON IS BEING PREPARED AS THE CHINESE YUAN TRADE HUB, THE YUAN MADE FULLY CONVERTIBLE BY 2015. THE KEY IS DEVELOPING OFF-SHORE YUAN TRADING HUBS, WHICH LONDON BANKS ARE ASSISTING IN CREATION. ALL PROCESSES ARE BLESSED BY BRITISH AND CHINESE BANKING OFFICIALS, ALONG WITH THE CHINESE VICE PREMIER. THE TRANSITION TO A COMPETITIVE CONVERTIBLE CHINESE CURRENCY IS MAKING SLOW BUT GOOD PROGRESS.
Plans are being furthered to make the Chinese Yuan fully convertible by the year 2015, so claims Chinese officials before the EU Chamber of Commerce and its business executives. No timetable is formally adhered to, but the Chinese officials report the overseas Yuan market and flows are developing faster than imagined, a main requirement. The other is a brisk Yuan-based bond market trade. The usage of Yuan has been promoted in bilateral trade with several nations as a means to limit reliance and risk from the USDollar. The concept has been reported regularly within the Hat Trick Letter for four years, aware of its importance. Full convertible currency is a criterion the United States and Europe demand from China as a condition entry in the Intl Monetary Fund currency basket. Inclusion is the positive, but opening vulnerability to the standard Anglo criminal mechanisms in FOREX markets is the negative side. The Peoples Bank of ChinaGovernor Zhou Xiaochuan reminded that his nation aims at „gradually realizing the renminbiconvertibility under the capital account. [But the nation] has no defined timetable for the Yuan to be fully convertible. It will be a gradual process.“
Zhou was in London for an official visit with bankers. An upward rise in Yuan currency valuation is assured. The central bank disclosed on August 1st an intention to manage the Yuan more actively against a basket of currencies, instead of just the USDollar, which would permit market forces to play a greater role. The current management entails limiting daily movements, and limiting conversion for investment purposes. Their FX reserves grow by $40 to $50 billion per month. Chinese Vice Premier Wang Qishan met with UK Chancellor of the Exchequer George Osborne in Britain. The UK banks are busy establishing a Yuan-based offshore trading center inLondon. The Vice Premier will support such efforts. Zhou confirmed the development, saying „The City of London has expressed its interest to help develop Yuan offshore business. We are very encouraged.“ The downside is that a higher Yuan valuation will harm Chinese exports, which leads their officials to move with caution.
Sacha Tihanyi of Scotia Capital in Hong Kong said, „Making the Yuan fully convertible will lead to foreign inflows into China and a stronger Yuan. Making the Yuan fully convertible is also the key step in pushing it as a reserve currency and enhancing its use in global trade.“The timetable might not be practical. Neither Taiwan (Dollar) nor South Korea (Won) have full convertibility yet either for their currencies. Global market instability might render the target date as difficult or impractical. The clownish US politicians wish to see a higher Yuan exchange rate and removal of import barriers in order to spur trade. But a higher Yuan would mean higher import prices across the board, at Wal-Mart, Target, Best Buy, and Home Depot. Removal of barriers would not mean much more US trade to China, since the same USGovt officials block computer and telecommunication export. Apart from these items, the Chinese desire little if anything. Export from the United States of its main technical expertise, namely bond fraud, is no longer wanted. The Chinese Govt is clever. They are formulating plans to introduce Foreign Direct Investment in the country using funds denominated in Yuan, but raised offshore. Doing so would not push the Yuan higher from fresh demand. They plan to permit qualified fund managers to invest such funds in Chinese stocks and bonds. A similar program already allows licensed companies to convert a quota of foreign exchange funds.
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