Senate Report: JP Morgan Lied & Deceived Regulators, Investors And Public on London Whale Losses

March 14, 2013 By 18 Comments

JPMorganAfter today’s market close, and ahead of tomorrow morning’s 9:30am Senate hearing on JPM’s London While IG9 trades that cost the firm upwards of $10 billion, the Senate Permanent Committee on Investigations has released a 300 page document titled JPMorgan Chase Whale Trades: A Case History of Derivatives Risks and Abuses in which the Senate Committee accuses JPMorgan and Jamie Dimon in particular of lying to and intentionally deceiving regulators, investors, and the public regarding the extent of the derivatives losses the firm sustained as Bruno Iksil nearly took down the ship in early 2012.

Full senate report is below: [Read more...]

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Derivatives: Who is Going to Pay?

March 14, 2013 By 22 Comments

DerivativesSubmitted by Bill Holter:

Kyle Bass claims to have purchased $500 billion worth of Japanese debt protection for 1 basis point (which if my math is correct cost him $5 million).  Presumably he is not the only one that this bank sold the “protection” to.  Is there any bank anywhere on the planet that could come up with that type of cash today?

Let me put this in just a little perspective for you.  $500 billion, doesn’t sound like much the way “billions” are thrown around like confetti does it?  The “admitted” on books accumulated debt of the 237 year history of the U.S. Is $16 trillion…or only 32 times the size of Mr. Bass’s bet!  When (not if) Japan fails, who’s going to bail out this little puppy trade (and presumably many more like it)? [Read more...]

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THE LAST SAMURAI- JAPAN INITIATES HARI KARI-FINANCIAL DIS-EMBOWELMENT

March 14, 2013 By 12 Comments

hari kari derivativesJapan is falling on their sword for the good of the NY & London criminal banksters by purchasing their worthless derivatives.

The Japanese have decided to perform Hari-kari on themselves and disembowel their economy on a global stage. In what can only be described as willful suicide, the BOJ has decided to begin buying derivatives. The most volatile financial weapon of mass destruction will be purchased by the Japanese, the question is why?
As the US economy continues its death spiral, Japan has been ordered to jump on the grenade and keep the dollar charade going for just a little bit longer.
Japan is finished, energy and food prices are through the roof and they are moving from the lost decades to being the lost civilization.
[Read more...]

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How to Shoot Yourself in the Foot: Central Banks Begin Buying Derivatives

March 13, 2013 By 9 Comments

central bankersBy Bill Holter:

The Bank of Japan announced over the weekend that they are considering buying derivatives to jump start their economy.  Oh yes, that will do it!  Print money (currency) lots and lots of it, purchase derivatives that are worthless and have zero chance of performing and book them on your balance sheet.
Yes I know, taking dead derivatives off of bank balance sheets and replacing them with Yen, Dollars or what have you will “strengthen” the selling banks balance sheet by removing the Albatross but….what about the central bank’s balance sheet?
This cannot work because all they are doing is destroying themselves!

[Read more...]

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Gonzalo Lira: Why Isn’t Gold Higher?

January 30, 2013 By 42 Comments

SLIDE_GOLD_DEFAULTHint: Because it’s the Credit Default Swap of the Next Financial Crisis

Submitted by Gonzalo Lira

Credit default swaps were the insurance—the hedge—against exactly what happened in 2008: Bonds threatened to default, during the Global Financial Crisis. So the CDS’s insuring those bonds rose in value—until suddenly, they didn’t: CDS’s stopped rising in value just when the markets collectively realized that the counter-parties to those CDS contracts might not be able to pay up.

What if the price of gold is drifting not because the markets don’t trust the world’s reserve currencies to continue to devalue, but because the market doesn’t trust gold?

Since everyone with any sense realizes that this is the endgame of the current race to the bottom, gold ought to be rising dramatically, but that is not happening. Gold rose steady and strong from 2000 through September 2011—but since then it’s been drifting jaggedly.
So why would gold—which is an actual, physical commodity—be acting like credit default swaps did right before the 2008 crisis?
For the same reason: Gold buyers don’t trust the counter-parties selling gold. [Read more...]

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Nobody Wants to Buy America’s Opium- Credit Default Swaps

January 8, 2013 By 7 Comments

imagesIn the latest Keiser Report, Max & Stacy discuss the butch welfare Queens in Virginia, Maryland and DC who rely on the ‘untouchable’ Pentagon budget. They also discuss the US deploying both its FMDs — “financial extortion”, “monetisation” and “devaluation” — to finance its debt and deficit requirements and its troops to 35 African nations. In the second half of the show, Max Keiser talks to Dan Collins of TheChinaMoneyReport.com about the petro-yuan, China’s gold and the problem with the fact that nobody in Africa wants to buy America’s opium – credit default swaps. [Read more...]

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