By Pam Martens and Russ Martens: January 19, 2023 ~ Daniel Friedberg, a former attorney at the collapsed crypto exchange, FTX, has filed a heart-stopping declaration today with the U.S. bankruptcy court in Delaware. He is effectively accusing one of the oldest law firms in America, Sullivan & Cromwell (S&C), of engaging in a fraudulent scheme in the FTX bankruptcy case. Friedberg further alleges that this fraudulent conspiracy was helped from the inside of FTX by S&C’s former law partner, Ryne Miller. According to new management at FTX, at least $8 billion of customer funds are missing, with the bulk of the money illegally diverted for use by Alameda Research, a hedge fund owned by the former co-founder and CEO of FTX, Sam Bankman-Fried, who has pleaded not-guilty to 8 criminal felony counts brought by the U.S. Department of Justice. Two of his top lieutenants, Caroline Ellison and Gary Wang, have … Continue reading →

By Pam Martens and Russ Martens: January 19, 2023 ~ On Tuesday, Jerome Powell’s Federal Reserve once again thumbed its nose at President Biden’s antitrust directive regarding the creation of more mega banks through merger. This time around, the Fed allowed the Bank of Montreal, with assets of $834 billion, and its subsidiary, BMO Financial, to gobble up Bank of the West, based in San Francisco. Following the merger, Bank of the West is to be merged into Bank of Montreal’s subsidiary bank, BMO Harris Bank. On Friday, July 9, 2021, President Biden released a sweeping Executive Order that warned federal bank regulators against actions that create “excessive market concentration” with specific mention of bank merger activity. One business day later, the Federal Reserve announced that it had approved another bank merger. According to the Fed’s own data, since January 1, 2006, it has approved 4,506 bank mergers, while denying one application. (See … Continue reading →

By Pam Martens and Russ Martens: January 18, 2023 ~ Remember those Fed bailouts of the mega banks on Wall Street during and after the 2008 financial crisis that the Federal Reserve battled in court for years to keep secret from the American people? Those bailouts went to the same Wall Street mega banks that collapsed the U.S. economy with their unbridled greed and unchecked corruption. The banks were even allowed to pay big bonuses to their execs with the bailout funds. When Senator Bernie Sanders forced the bailout details into the sunlight with a mandated government audit, the findings were so revolting that Senator Sanders had this to say: “As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world. This is … Continue reading →

By Pam Martens and Russ Martens: January 17, 2023 ~ In a January 12 Substack column penned by Sam Bankman-Fried, the indicted co-founder and former CEO of collapsed crypto exchange, FTX, he writes that “When I would visit NYC, I would sometimes work out of S&C’s office.” S&C is shorthand for the 144-year old Big Law firm, Sullivan & Cromwell, which has come under withering media attention for attempting to steamroll its way into the position of lead counsel in the FTX bankruptcy proceedings – including investigating its own conduct as outside counsel to Sam Bankman-Fried and his byzantine collection of crypto companies. Wall Street On Parade has been covering the mushrooming conflicts of interest held by Sullivan & Cromwell since two days after FTX (and its herd of more than 100 related companies) filed their Chapter 11 bankruptcy petition on November 11. Today, we will shine an even brighter light … Continue reading →

By Pam Martens and Russ Martens: January 13, 2023 ~ Women have been demanding equal opportunity on Wall Street for the past 60 years. We’re pretty sure that equal opportunity to commit crimes on a par with the big boys on Wall Street is not what they had in mind. Confronting women on Wall Street today are two especially disheartening cases. In the photo on the left above is Caroline Ellison, who looks more like the wholesome star of a Disney children’s flick than a woman who has pled guilty to seven criminal counts for frauds she committed as CEO of Sam Bankman-Fried’s hedge fund, Alameda Research. On the right in the photo above is Charlie Javice, founder and former CEO of Frank, a company that was hyped in a JPMorgan Chase press release when it acquired it in September of 2021 for $175 million as “the fastest growing college financial … Continue reading →

By Pam Martens and Russ Martens: January 12, 2023 ~ To grasp the severity of the miscarriage of justice that occurred yesterday at the hands of Judge John Dorsey in the bankruptcy hearing for collapsed crypto exchange, FTX, one first needs a brief bit of background. The FTX companies that the bankruptcy lawyers are attempting to resuscitate or sell off to other crypto outfits (while the law firms collect millions of dollars in billable hours for their work) are peddling a product – crypto – that is created out of thin air and has no legitimate productive purpose. (See Over 1,600 of the Brightest Scientific Minds in Technology Have Signed a Letter Calling Both Crypto and Blockchain a Sham.) The hundreds of billions of dollars that American investors have been dumped into crypto exchanges, crypto lenders, crypto miners, and crypto banks are not only threatening the safety and soundness of the … Continue reading →

By Pam Martens and Russ Martens: January 11, 2023 ~ In what is likely a first of its kind effort, four sitting U.S. Senators, including former Harvard Law Professor Elizabeth Warren, who is a bankruptcy law expert, have asked the Judge overseeing the bankruptcy proceedings of collapsed crypto exchange, FTX, to dump the Big Law firm of Sullivan & Cromwell as the lead law firm in the case because of its conflicts of interest in the matter. The case has garnered international media attention because more than $8 billion of customers’ money is said to be missing and the fact that high profile U.S. sports figures and celebrities promoted the company. On Monday, Senator Warren (D-MA) joined Senator John Hickenlooper (D-CO) along with Republican Senators Thom Tillis (R-NC) and Cynthia Lummis (R-WY) in a letter outlining the conflicts to Judge John Dorsey of the U.S. Bankruptcy Court for the District of … Continue reading →

By Pam Martens and Russ Martens: January 10, 2023 ~ Sullivan & Cromwell ranks among the oldest law firms in America. It was founded 144 years ago by Algernon Sydney Sullivan and William Nelson Cromwell in Manhattan’s financial district. During the financial bust in the 1930s, Sullivan & Cromwell garnered its reputation for defending Wall Street firms against shareholder lawsuits and antitrust actions. As Wall Street On Parade previously detailed, the firm’s Senior Chairman, Rodge Cohen, paved the way for the Fed’s unprecedented $29 trillion bailout of Wall Street banks after their corrupt activities collapsed the U.S. economy in 2008. And, of course, there was S&C partner Jay Clayton, who was tapped by President Donald Trump to Chair the SEC – and, in our opinion, left markets mired in the worst corruption since 1929. Against that backdrop, one would think that S&C would be attempting to stay off the radar screen … Continue reading →

By Pam Martens and Russ Martens: January 9, 2023 ~ Making headlines around the world last week was the news that the Attorney General of the U.S. Virgin Islands, Denise George, was fired just days after she filed a federal lawsuit against JPMorgan Chase, charging it with facilitating the sex trafficking of children by Jeffrey Epstein. George was fired by the Governor of the Virgin Islands, Albert Bryan Jr. Unfortunately, those headlines and the mainstream news articles that accompanied them, fail to capture the worst parts of this story, which includes the following: the 30-page lawsuit filed by Attorney General George on December 27 in the Federal District Court for the Southern District of New York includes a “Sealed Document Placed in Vault” according to the Docket Sheet in the case; after the paragraph headlined as “JP Morgan Ignored Obvious Red Flags Relating to Epstein’s Accounts,” large segments of the lawsuit … Continue reading →

By Pam Martens and Russ Martens: January 6, 2023 ~ If you’re looking for the poster child for everything that is toxic about mixing crypto with federally-insured banks, look no further than Silvergate Capital Corporation, parent of federally-insured Silvergate Bank. Yesterday, the company lost 42.73 percent of its market capitalization in one trading session, putting its stock price losses at 91 percent over the past 12 months. The stock has been plunging since April of last year. Then came the jarring news on November 11 that one of its large customers, crypto exchange FTX, was filing for Chapter 11 bankruptcy along with its sister hedge fund, Alameda Research – which, it turns out, had been using (and losing) billions of dollars of FTX customer funds to trade and acquire without the knowledge of customers. More than 100 opaque affiliates of FTX, many headquartered in offshore locations, also filed for bankruptcy. Three … Continue reading →