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By Pam Martens and Russ Martens: July 8, 2022 ~ In 2018, Bloomberg reporters Peter Waldman, Lizette Chapman, and Jordan Robertson published a stunning expose on how JPMorgan Chase was spying on its employees, including after hours, using as many as 120 engineers from the data mining company Palantir Technologies Inc. According to the Bloomberg report, “It all ended when the bank’s senior executives learned that they, too, were being watched, and what began as a promising marriage of masters of big data and global finance descended into a spying scandal.” But the surveillance program did not end. The bank simply developed its own proprietary spying system instead. Business Insider reporter, Reed Alexander, has reignited the scandal with the news that the internal surveillance program at JPMorgan Chase is now called “Workforce Activity Data Utility” or WADU. According to Business Insider, the surveillance is fostering paranoia inside the bank with … Continue reading →

By Pam Martens and Russ Martens: July 7, 2022 ~ The Office of Financial Research (OFR), a unit of the U.S. Treasury Department, was created under the Dodd-Frank financial reform legislation of 2010. Its job is to prevent, through early warnings, the kind of catastrophic financial crisis that occurred in 2008 when irresponsible and corrupt practices on Wall Street toppled the U.S. economy; brought on the deepest financial crisis since the Great Depression; and left the taxpayer and Fed bailing out the Wall Street megabanks that would have otherwise collapsed from their own hubris. Unfortunately, the OFR was savagely gutted under the Trump administration. Today, OFR is like the cop on the beat that has been stripped of his whistle, his walkie-talkie and is wearing dark sun glasses on a cloudy day. One of the tools that the OFR is supposed to use to warn federal regulators that Wall Street is … Continue reading →

By Pam Martens and Russ Martens: July 6, 2022 ~ Sam Bankman-Fried is the co-founder and CEO of crypto firm, FTX. He’s also a man on a mission. The mission is to spend tens of millions of dollars on political campaigns until he gets his desired outcome in Washington: permission for FTX to be able to offer highly leveraged derivative contracts on cryptocurrencies with margin accounts and 24/7 automated liquidation of defaulting customers, effectively being able to sell out customer accounts while they’re asleep in their beds. And, by the way, the pesky detail of a regulated brokerage firm intermediary in the transaction would become history. To bring his dream to fruition, Bankman-Fried has been writing out checks in a wild flurry of activity this year. Between February 4 and April 14 of this year, Bankman-Fried wrote out three checks totaling $23 million to Protect Our Future PAC. According to Federal Election … Continue reading →

By Pam Martens and Russ Martens: July 5, 2022 ~ The Department of Commerce’s Bureau of Economic Analysis (BEA) will release its advance estimate for U.S. Gross Domestic Product (GDP) for the second quarter of 2022 at 8:30 a.m. on July 28. All eyes on Wall Street will be glued to that number as a gauge of where stock prices are headed. As of this morning, the highly respected number crunchers at the Atlanta Fed’s GDPNow model are forecasting a contraction of -2.1 percent in U.S. economic growth in the second quarter. (That’s the real GDP growth/seasonally adjusted annual rate.) The Atlanta Fed’s GDPNow modelers will update their forecast five more times, based on additional economic data releases, before the advance estimate for second quarter GDP is officially released by the BEA on July 28. GDP contracted at a -1.6 percent annualized rate in the first quarter. Two quarters of negative … Continue reading →

By Pam Martens and Russ Martens: July 1, 2022 ~ Imagine a country that allows a private fossil fuels conglomerate (or its billionaire boss, Charles Koch, the 17th richest person in the world according to Forbes) to get away with the following: Meet secretly with big political donors twice a year to plot a coordinated strategy to put their chosen people in public office; Meet at his private club with a sitting Supreme Court justice who will then rule on key legislation that benefits his interests; Fund an organization that then sluices money to the wife of the Supreme Court Justice; Run a highly sophisticated voter registration database, data mining and get-out-the-vote operation called i360, in order to pack Congress with people who will pursue an antiregulatory agenda; Install dozens of its lawyers and operatives into the highest offices of the federal government; Run a sprawling, opaque trading operation that could … Continue reading →

By Pam Martens and Russ Martens: June 30, 2022 ~ JPMorgan Chase’s stock has lost 27 percent of its market value year-to-date through its June 29 closing price. But more disturbing than that is the above chart showing that the behemoth German lender, Deutsche Bank, has been trading like a clone of JPMorgan Chase for the past two months. Deutsche Bank’s stock price is down just one percentage point more than JPMorgan Chase year-to-date. JPMorgan Chase is the largest federally-insured bank in the United States. Looking like one is tied with an umbilical cord to Deutsche Bank has its perils on Wall Street. Let’s start with the raids on the Deutsche Bank’s headquarters, two of which coincided with dead bodies turning up. On November 29, 2018, Deutsche Bank’s headquarters in Germany were raided by 170 members of law enforcement. Prosecutors explained the action by stating that “Deutsche Bank helped customers found … Continue reading →

By Pam Martens and Russ Martens: June 29, 2022 ~ Last Tuesday, the Office of the Comptroller of the Currency (OCC) released its quarterly report on derivatives held at the megabanks on Wall Street. As we browsed through the standard graphs that are included in the quarterly report, one graph jumped out at us. It showed a measured growth in precious metals derivatives at insured U.S. commercial banks and savings associations over the past two decades and then an explosion in growth between the last quarter of 2021 and the end of the first quarter of this year. In just one quarter, precious metals derivatives had soared from $79.28 billion to $491.87 billion. That’s a 520 percent increase in a span of three months. (See Figure 18 at this link. The last ten years of the graph is shown above.) Having studied these quarterly reports since the 2008 financial crash, we … Continue reading →

By Pam Martens and Russ Martens: June 28, 2022 ~ In September 1999 the U.S. Department of Justice filed racketeering charges against the major tobacco companies and two of their front groups. The court filings in that case carefully pieced together a half century of conspiratorial conduct and lies that gravely harmed the health of the American people, while lining the pockets of the tobacco industry, its lawyers and its paid shills. The January 6 Select House Committee has that same, once-in-a-lifetime power in its hands. But that window of opportunity will close soon. The January 6 Committee can connect all the dots of the attempted coup leading to the doorstep of Charles Koch and expose his four decades of establishing front groups to shill for the fossil fuels industry and anti-climate change groups, or it can present a false and narrow view that this was all about the ego and … Continue reading →

By Pam Martens and Russ Martens: June 27, 2022 ~ When the cryptocurrency exchange, Coinbase, first offered its stock to the public on April 14, 2021, its S-1 Registration Statement that was filed with the SEC indicated that Goldman Sachs, JPMorgan and Citigroup were its financial advisors, along with Allen & Company. Most Americans would assume that if one is the financial advisor to a company going public for the first time, the financial advisor would know a considerable amount about that company’s business and future prospects. But as we reported last Wednesday, horror stories in the thousands about how Coinbase runs its exchange have been piling up in the publicly accessible database of the federal regulator, the Consumer Financial Protection Bureau. Three business days after we published that information, Goldman Sachs finally put out a sell rating on the stock of Coinbase. The news came from Goldman Sachs before the … Continue reading →

By Pam Martens and Russ Martens: June 24, 2022 ~ Add JPMorgan Chase, the biggest bank in the United States with an unprecedented five criminal felony counts since 2014, to the growing list of debacles of which the Fed has lost control. The Fed has its bank examiners pouring over the books of JPMorgan Chase on an ongoing basis, but somehow the bank’s dangerous book of derivatives has been allowed to spike by $14.42 trillion in the first quarter of this year, soaring from $45.84 trillion on December 31, 2021 to $60.26 trillion on March 31, 2022. That’s an increase of 24 percent in a three-month span. That information comes from page 18 of the newly-released report on derivatives in the banking system from the Office of the Comptroller of the Currency (OCC). The Dodd-Frank Act of 2010 was supposed to stop the insanity of unfathomable amounts of risky derivatives being … Continue reading →