Category Archives: Uncategorized

By Pam Martens and Russ Martens: June 11, 2018 ~   Most Americans are not aware that the Securities and Exchange Commission (SEC) had the opportunity to stop Bernie Madoff’s Ponzi scheme 16 years before he confessed in 2008. In 1992, the SEC settled an investigation against two Florida accountants, Frank Avellino and Michael Bienes. The duo had been raising money for Bernie Madoff to “invest” for their clients for 30 years by handing out promissory notes to investors that promised returns of 13.5 percent or higher. Avellino and Bienes sold over $440 million in these unregistered notes to thousands of unwitting investors. The Avellino and Bienes matter was settled by the SEC with an order for the accountants to stop selling unregistered securities and with Madoff returning the money. No inquiry was made into where Madoff obtained the funds to pay back investors. The SEC did not lay a finger on … Continue reading →

  By Pam Martens and Russ Martens: June 8, 2018 ~ A long-tenured cartoonist at the Pittsburgh Post-Gazette has recently had his anti-Trump cartoons censored by the editorial director at the newspaper. Yesterday the New York Times reported that the Justice Department has seized years of one of its reporters’ email and phone records. Before we get to those details, it’s important to look at the backdrop around these actions. Four days after Donald Trump’s inauguration as President on January 20, 2017 he began a propaganda campaign against a free press in the United States on his Twitter page, labeling major media outlets as “Fake News.” According to the searchable database of Trump Tweets, he has since that time posted a total of 230 Tweets calling out major media as “Fake News.” Former FBI Director James Comey wrote in a memo regarding a February 2017 meeting he had with the … Continue reading →

By Pam Martens and Russ Martens: June 7, 2018 ~ Short memories are going to once again doom millions of stock market investors who are getting their advice from Wall Street’s minions of deeply conflicted analysts and brokers. This is a good time to reflect on the fact that when the dot.com bubble went bust from 2000 to 2002 it wiped 78 percent of the value off the Nasdaq stock index. In the midst of the crash, this is how Ron Chernow correctly described what was happening for New York Times’ readers on March 15, 2001: “Let us be clear about the magnitude of the Nasdaq collapse. The tumble has been so steep and so bloody — close to $4 trillion in market value erased in one year —  that it amounts to nearly four times the carnage recorded in the October 1987 crash.” Chernow characterized the Nasdaq stock market … Continue reading →

By Pam Martens and Russ Martens: June 6, 2018 ~  Several early warning signs emerged in the stock market yesterday. The tech-heavy Nasdaq Composite Index closed at a record high but every major Wall Street bank with large exposures to derivatives closed in the red yesterday. Leading the decliners were Deutsche Bank with a loss of 1.61 percent; Morgan Stanley closed down 1.49 percent; Bank of America lost 0.95 percent while Citigroup, Goldman Sachs and JPMorgan Chase were in the red by less than one percent. But the red ink didn’t stop there. Five of the seven U.S. insurance companies that were singled out in the 2017 Financial Stability Report from the U.S. Treasury’s Office of Financial Research also closed in the red yesterday. The five insurers showing losses of less than one percent were Ameriprise Financial, Hartford Financial Services Group, Lincoln National Corp., Prudential Financial and Voya Financial. Two … Continue reading →

By Pam Martens and Russ Martens: June 5, 2018 ~ The Dodd-Frank financial reform legislation that was passed in 2010 required that publicly traded companies report publicly how much the CEO makes compared to the median salary of workers. The Securities and Exchange Commission, with its close ties to Wall Street, stonewalled for years in passing the final rule and had to be pressured and publicly embarrassed in open letters from members of Congress before it finally implemented the rule. As a result, eight years later, we are finally seeing the hard numbers that define CEO greed in America. In May, Democratic Congressman Keith Ellison from Minnesota’s 5th District released a study on the new data that was being released. The study was titled “Rewarding or Hoarding: An Examination of Pay Ratios Revealed by Dodd-Frank.” Among the key findings in the study were the following: Two-thirds of the richest 1 … Continue reading →

By Pam Martens and Russ Martens: June 4, 2018 ~ The largest bank in the United States, JPMorgan Chase, is already a 3-time felon. It received two felony counts in 2014 for its role in the Bernie Madoff Ponzi scheme and pleaded guilty to an additional felony count in 2015 for its role in a bank cartel that was rigging foreign currency trading. One more felony count and its Chairman and CEO, Jamie Dimon, might have finally been sacked by the bank’s timid Board for placing the bank’s global reputation under yet another scandal. So, it appears this morning, based on an avalanche of reporting from Australia, that JPMorgan Chase has ratted out U.S. behemoth, Citigroup; the troubled German bank, Deutsche Bank; and Australian bank ANZ, in order to save its own skin. The Australian Financial Review politely writes that “JPMorgan blew the whistle” on the other banks over a … Continue reading →

By Pam Martens and Russ Martens: June 1, 2018 ~ Yesterday the Wall Street Journal dropped a bombshell into financial markets with a report that “about a year ago” the U.S. Federal Reserve had “designated Deutsche Bank AG’s sprawling U.S. business as being in a ‘troubled condition.’ ” The Financial Times added to market angst by also reporting yesterday that the FDIC, which provides Federal deposit insurance to U.S. banks, has designated Deutsche Bank as a “problem bank” sometime within the past year. Until yesterday, both of these actions by Federal regulators were secret and unknown to Deutsche Bank’s shareholders, to the markets and to the New York Stock Exchange where Deutsche Bank’s stock trades in the U.S. Over the past year, Deutsche Bank’s stock has lost more than 40 percent of its value as a result of a lack of positive earnings for three years and serial regulatory lapses … Continue reading →

By Pam Martens and Russ Martens: May 31, 2018 ~ JPMorgan Chase likes to hold its annual shareholders’ meetings far away from the media glare of New York City’s pesky press corps. Jamie Dimon, Chairman and CEO of JPMorgan Chase, has good reason to want to dodge Manhattan’s investigative reporters – who might start to see a pattern of fraudulent behavior. At the 2011 shareholders’ meeting in Columbus, Ohio more than 1,000 protesters descended on the event to protest the bank’s unsavory foreclosure practices. JPMorgan Chase’s 2013 shareholders’ meeting in Tampa – 1100 miles from New York City — came less than two months after the U.S. Senate’s Permanent Subcommittee on Investigations issued a 300-page report on how JPMorgan Chase had used its bank depositors’ money to gamble in risky derivatives in London, eventually losing $6.2 billion of that money. The 2014 shareholders’ meeting, also in Tampa, came four months … Continue reading →

By Pam Martens and Russ Martens: May 30, 2018 ~  Big Wall Street bank stocks outpaced the decline in the markets yesterday by a big margin. That’s a serious problem but here’s a bigger problem: if you get your information from mainstream media, you have no idea this happened or what it portends for the U.S. economy. Corporate media (a/k/a “mainstream” media) is obsessed with ratings, clickbait and celebrities behaving badly – which goes a long way in explaining why the U.S. has a billionaire celebrity in the oval office who publicly talks about television ratings when he greets hostages released by North Korea. It’s also now clear why so many members of Congress claimed that nobody could have seen the 2008 financial crisis coming: mainstream media simply refused to heed and report on the many warnings. The same thing happened yesterday. The Standard and Poor’s 500 Index fell by … Continue reading →

By Pam Martens and Russ Martens: May 29, 2018 ~ U.S. investors have returned this morning from a 3-day Memorial Day break for parades and barbecues to find that turmoil in European stock markets may serve up losses to U.S. portfolios. At 7:18 a.m. this morning, futures on the Dow Jones Industrial Average were projecting a loss of 191 points at the open of trading in the U.S. The turmoil is rooted in a failed coalition government in Italy over the weekend with the prospect for Euro-sceptics gaining more power in a new Italian election in the fall. Italy’s finances are in no condition for a flailing government. It has over 2.3 trillion Euros in outstanding debt. Last Friday the credit ratings agency, Moody’s, placed Italy’s sovereign debt rating under review for a possible downgrade. The rating is already weak at Baa2, just two rungs above junk bond status. Moody’s … Continue reading →