By Pam Martens and Russ Martens: August 23, 2023 ~ The speed at which the largest U.S. banks are shedding deposits is unlike anything seen in the last half century – at least. But then again, the speed at which those same banks gained deposits from the various stimulus programs during the COVID-19 pandemic was also unprecedented. According to Federal Reserve data, for the week ending April 13, 2022, deposits at the 25 largest domestically-chartered commercial banks in the U.S. stood at $11.68 trillion (a new record) before doing a bungee dive in the following week to $11.4 trillion – likely triggered by the horrific scenes on network television of Russia’s invasion of Ukraine along with the severe economic sanctions against Russia announced on April 6, 2022 by the U.S. and other nations. This likely triggered a rush by Russian oligarchs to get their billions of dollars out of U.S. banks. As … Continue reading →

By Pam Martens and Russ Martens: August 22, 2023 ~ The stock prices of KeyCorp and Comerica had already lost more than 40 percent of their market value over the past year through the closing bell on Monday. KeyCorp was sporting a depressed share price of $10.89 at the close yesterday after trading in the single digits during the banking crisis in March. Then S&P Global delivered more bad news yesterday. It downgraded the credit rating on both KeyCorp and Comerica by one notch.  Outlooks were indicated as “stable” for both banks by S&P. Three other banks were also downgraded by one notch yesterday by S&P: Valley National Bancorp, UMB Financial Corp. and Associated Banc-Corp. S&P lowered outlooks on two other banks to negative: River City Bank and S&T Bank. The ratings action on KeyCorp is particularly noteworthy. According to the Federal Reserve, as of June 30 KeyCorp had $193 billion in … Continue reading →

By Pam Martens and Russ Martens: August 21, 2023 ~ Remember all of that sensational social media buzz in 2016 about a politically-connected ring of pedophiles operating out of a pizza parlor in Washington, D.C.? The story was debunked by Snopes but not before it had gone viral. While the pizza parlor was getting plenty of attention, an actual, highly sophisticated, child sex-trafficking ring had been operating with impunity for more than a decade out of the largest bank in the United States, JPMorgan Chase. Based on astonishing internal documents from JPMorgan Chase obtained during discovery in a federal lawsuit and filed on the court docket last week, it now appears that the U.S. Department of Justice has turned a blind eye toward this bank’s facilitation of Jeffrey Epstein’s sex trafficking crimes for more than 16 years, during the administrations of four separate Presidents of the United States. The heavy-lifting for what … Continue reading →

By Pam Martens: August 17, 2023 ~ American democracy is in a slow death gurgle from the repetition of Orwellian reverse-speak slogans: “Make America Great Again,” “Save America,” “Drain the Swamp,” and “America’s Mayor.” Most Americans have forgotten that Rudy Giuliani was under serious consideration to be nominated by Donald Trump as his Attorney General. As “America’s Mayor,” Giuliani would have likely sailed through his Senate confirmation. Allowing public relations and branding agents to create the brand of “America’s Mayor” as the country reeled in shock after 9/11, launched the power-hungry Giuliani that today is facing a 13-count indictment that includes charges of racketeering and conspiracy. The new media buzz is how did America’s Mayor get caught up in this mess. The hard truth is that Giuliani was always a wannabe authoritarian dressed up by handlers as an American hero. During Giuliani’s two terms as Mayor of New York City, from 1993 … Continue reading →

By Pam Martens and Russ Martens: August 16, 2023 ~ Yesterday, the Dow Jones Industrial Average took a tumble of 361 points by the closing bell. Numerous headlines attributed the big decline to a weakening economy in China. But the actual trigger for angst among traders was a headline at 5:30 a.m. EDT yesterday at CNBC. The headline read: “Fitch warns it may be forced to downgrade dozens of banks, including JPMorgan Chase.” JPMorgan Chase is not just the biggest bank in the United States in terms of assets and deposits. It is the biggest bank in terms of its derivative exposure. According to the federal regulator of national banks (those operating across state lines), the Office of the Comptroller of the Currency (OCC), as of March 31, 2023, JPMorgan Chase Bank had assets of $3.2 trillion and derivative exposure of more than $59 trillion notional (face amount). The OCC report also … Continue reading →

By Pam Martens and Russ Martens: August 15, 2023 ~ The Bill Clinton administration’s repeal in 1999 of the 1933 Banking Act, commonly known as the Glass-Steagall Act, ushered in the greatest kleptocracy America has ever known. The Cambridge dictionary defines “kleptocracy” as: “a society whose leaders make themselves rich and powerful by stealing from the rest of the people.” In fact, the actual goal of repealing Glass-Steagall was to do just that. The momentum for the repeal of Glass-Steagall came from the announcement in 1998 that Wall Street veteran, Sandy Weill, wanted to merge his trading firms, Salomon Brothers and Smith Barney (under the Travelers Group umbrella), with Citicorp, parent of the federally-insured Citibank commercial bank. Because of the Glass-Steagall Act, such a merger was illegal at the time. The 1933 Congress that passed the Glass-Steagall Act had watched the stock market lose 89 percent of its value over the years … Continue reading →

By Pam Martens and Russ Martens: August 14, 2023 ~ In 2017, Simon & Schuster released the book, The Chickenshit Club, by the Pulitzer-prize winning public interest writer, Jesse Eisinger. The title derives from the premise that the prosecutors at the U.S. Department of Justice are too worried about losing a case or harming their ability to get those seven-figure pay packages at the big Wall Street law firms to do their jobs properly as prosecutors. Aside from that narrative, which is brilliantly analyzed by Eisinger, the book reveals a stunning fact about Manhattan federal district court Judge Jed Rakoff – a man who has gone out of his way to portray himself with the media as the protector of the public interest. Eisinger writes this: “Karp, sixteen years younger, and Rakoff began having dinner every several months, often with their wives and other lawyers, at restaurants around Manhattan: Il Gattopardo, … Continue reading →

By Pam Martens and Russ Martens: August 10, 2023 ~ That office space company we warned our readers about so extensively in 2019, WeWork, collapsed to 13 cents a share yesterday. Its bonds were trading at about 13 cents on the dollar. WeWork’s stock has been on a steady decline since the company began to trade publicly on October 21, 2021. The chart above shows how investors would have fared in WeWork stock versus a 10-year U.S. Treasury note since WeWork started trading in 2021. The collapse in the share price this week came as a result of an 8-K filing with the Securities and Exchange Commission on Tuesday in which the company uttered these discomforting words: “…as a result of the Company’s losses and projected cash needs, combined with increased member churn and current liquidity levels, substantial doubt exists about the Company’s ability to continue as a going concern.” The … Continue reading →

By Pam Martens and Russ Martens: August 9, 2023 ~ Jamie Dimon is between a rock and a hard place. He is either going to have to convince a jury come October that he was left in the dark by the bank’s general counsel, his compliance and money laundering executives, and the heads of his investment bank and asset and wealth division about the fact that notorious child molester Jeffrey Epstein was a client at the bank for more than a decade – which would make Dimon sound so isolated as to be unfit to be running the bank – or Dimon is going to have to admit that he lied under oath in his federal court deposition. Neither is a comfortable proposition to be facing for a jury trial currently scheduled for October 23. JPMorgan Chase is currently facing off against three federal lawsuits before Judge Jed Rakoff in the … Continue reading →

By Pam Martens and Russ Martens: August 8, 2023 ~ Brace yourself for some tremors in the stock prices of banks today — especially those that have counterparty risk to the biggest U.S. banks. In a move that sent Dow futures on a steady downward plunge beginning at 5 a.m. EDT this morning (clocking in at down 268 points by 8:14 a.m.), last evening the credit ratings agency, Moody’s Investors Service, took more sweeping actions in the U.S. banking sector. Moody’s cut the ratings of 10 banks by one notch, placed six banks on review for potential downgrade, and changed its outlook to negative on 11 other banks. Causing particular alarm on Wall Street was the fact that four of the six banks that Moody’s put on review for potential downgrade rank among the 15 largest banks in the United States. They are: U.S. Bancorp, the 5th largest bank in the U.S. with … Continue reading →