Search Results for: Federal Reserve

By Pam Martens and Russ Martens: August 9, 2019 ~ When it comes to serial and systemic frauds perpetrated by big banks on Wall Street, the U.S. Department of Justice typically punts. It will either not charge the bank itself or it will issue a felony charge along with a non-prosecution agreement that lets the bank settle the charges without a trial. These tactics by the Justice Department are why Wall Street crimes remain serial and systemic in nature. This morning, the Attorney General in Malaysia stunned Goldman Sachs with an indictment of 17 of its former and current executives. That came on the heels of criminal charges filed last December by Malaysian authorities in the same matter against three Goldman Sachs subsidiaries and two former Goldman employees, Tim Leissner and Roger Ng. Indictments announced this morning included charges against Richard J. Gnodde, Goldman’s top international banker in London and … Continue reading →

By Pam Martens and Russ Martens: August 7, 2019 ~ On July 30, 2019, the day before the U.S. central bank, the Federal Reserve, cut interest rates by one-quarter of one percent, the yield on the 10-year U.S. Treasury note closed the day at 2.06 percent. Early this morning, the yield on the 10-year U.S. Treasury stood at 1.65 percent, a stunning decline of 41 basis points in 8 days. A yield evaporation on U.S. sovereign debt that resembles a snow cone in July is not consistent with a strong economy. It is consistent with a seriously sputtering economy and a stock market out over its skis in terms of valuation. In addition to the collapsing yield in the benchmark 10-year, we now have a seriously inverted yield curve with the 3-month T-bill yielding 2.01 percent this morning versus the 10-year T-note yielding 1.65 – a difference of 36 basis … Continue reading →

By Pam Martens and Russ Martens: August 2, 2019 ~ On April 3, 2008 Federal Reserve Chairman Ben Bernanke and the President of the Federal Reserve Bank of New York, Tim Geithner, appeared on a panel of witnesses before the U.S. Senate Banking Committee. The subject of the hearing was the Federal Reserve’s unprecedented actions the prior month to bail out the collapsing investment bank, Bear Stearns, and facilitate its purchase by JPMorgan Chase. Putting Bear Stearns into the hands of JPMorgan Chase, now a three-count felon, was like returning a garden snake to a pet store and walking out with a python. The New York Fed had crafted a deal where $30 billion of toxic assets were going to be purchased from Bear Stearns to prevent JPMorgan from bearing the risk of sizeable losses when it took over the firm. The New York Fed put up $28.82 billion in … Continue reading →

By Pam Martens and Russ Martens: August 1, 2019 ~ On July 21, 2011 the investigative arm of Congress, the Government Accountability Office (GAO), released the first-ever government audit of the Federal Reserve in its 98-year history. The audit came about as a result of the determined efforts of Senator Bernie Sanders to force transparency on the secretive Wall Street bailout actions of the Federal Reserve during the 2008 financial crash and the years that followed. Sanders successfully tacked an amendment on the Dodd-Frank financial reform legislation of 2010 that mandated a top-to-bottom audit of how much the Fed had spent on its bailout and the financial institutions to whom it went. Sanders issued a statement saying this on the day the findings were released: “The first top-to-bottom audit of the Federal Reserve uncovered eye-popping new details about how the U.S. provided a whopping $16 trillion in secret loans to … Continue reading →

By Pam Martens and Russ Martens: July 31, 2019 ~ Last night’s Democratic Debate could have covered all the positions in the field at Yankee Stadium and had one player left over. In fact, the debate roster should have been limited to nine contenders instead of ten because former Maryland Congressman John Delaney was clearly batting for the other team. Time and time again, Delaney sounded like a die-hard Republican. And Delaney was aided and abetted by CNN moderator Jake Tapper, who phrased one question to Senator Bernie Sanders this way: Tapper: “Let’s start the debate with the number-one issue for Democratic voters, health care. And Senator Sanders, let’s start with you. You support Medicare For All, which would eventually take private health insurance away from more than 150 million Americans, in exchange for government-sponsored health care for everyone. Congressman Delaney just referred to it as bad policy. And previously, … Continue reading →

By Pam Martens and Russ Martens: July 29, 2019 ~ Jeffrey Epstein, the accused sex trafficker of underage school girls, presided over a $6.7 billion offshore company as its Chairman from November 9, 2001 to at least March 19, 2007, a period during which he is accused of committing his sex trafficking crimes against minors. The company is Liquid Funding Ltd. and it had two offshore connections: it was incorporated in Bermuda on October 19, 2000 by the Appleby law firm, known for setting up offshore companies in secrecy jurisdictions like the Isle of Man, Guernsey, Cayman Islands, and Jersey. Liquid Funding’s investment manager was Bear Stearns Bank Plc in Dublin, Ireland – a non-U.S. regulated institution, which was later merged into JPMorgan Bank Dublin. A Securities and Exchange Commission filing by Bear Stearns, prior to its epic collapse in 2008, indicated that Bear Stearns owned 40 percent of Liquid … Continue reading →

By Pam Martens and Russ Martens: July 25, 2019 ~ If you are buying stocks based on what your stockbroker (a/k/a “financial advisor”) is telling you the research analysts at his brokerage firm are recommending, our headline above should provide a cautionary warning. On July 21, Philip Van Doorn, a reporter for Dow Jones’ MarketWatch, published a chart showing that 82 percent of bank research analysts on Wall Street have a “buy” rating on the stock of Citigroup. According to MarketBeat.com, among the stock analysts making “buy,” “outperform,” or “overweight,” recommendations on Citigroup are those receiving a paycheck from Goldman Sachs, Credit Suisse, Morgan Stanley, JPMorgan, Deutsche Bank, UBS, and Bank of America – all of whom have a vested interest in wanting Citigroup – and each other — to stay strong because they are all interconnected as derivative counterparties. All of these banks are in a unique position to … Continue reading →

By Pam Martens and Russ Martens: July 24, 2019 ~ On Monday, Democratic presidential contender Senator Elizabeth Warren posted a column on Medium that carried the provocative headline: The Coming Economic Crash — And How to Stop It. Warren’s column came just 11 days after we titled our own article: Is There a Stealth Financial Crisis? Alarm Bells Are Ringing. Warren wrote about economic trends like the fact that the U.S. manufacturing sector is already in recession and the staggering amount of household and corporate debt. We wrote about the striking similarities to the early warning signs that ushered in the 2008 financial crash and those happening right now: like being locked out of withdrawing money from a mutual fund because of a run on the fund and an inability to find a buyer for its illiquid investments; and a major international bank firing a big chunk of its labor … Continue reading →

By Pam Martens and Russ Martens: July 23, 2019 ~ Yesterday afternoon, Jamie Dimon had his world rocked. And not in a good way. Dimon is the Chairman and CEO of the largest bank in the United States, JPMorgan Chase, which has over 5,000 retail branches blanketing the U.S. and has scooped up $1.6 trillion in deposits, much of it from moms and pops who have no idea that the bank is a three-time felon. When you’re a 3-count felony bank and still on probation until January of 2020, you really don’t want to see your name appear in the New York Times connected to the most radioactive felon in the United States right now, Jeffrey Epstein, the man newly indicted on July 6 on charges of sex trafficking of underage girls and sexually assaulting dozens of them. But that’s what happened yesterday afternoon. The New York Times published a … Continue reading →

By Pam Martens and Russ Martens: July 17, 2019 ~ Yesterday the U.S. Senate Banking Committee assembled to hear Facebook’s David Marcus explain how the company wants to create a global digital currency called Libra, to be run by a Switzerland-based global organization called the Libra Association, made up of 27 members from the fields of payment systems, technology, telecommunications, blockchain services, venture capital, nonprofits and academic institutions. Given Facebook’s serial history of abusing the privacy rights of its users and selling their data without their permission, not to mention its role in facilitating Russian interference in the 2016 presidential election, we immediately went to check out the names of the nonprofits that had signed up to monitor this sprawling international monetary system cooked up in a Facebook lab in a year’s time. We were hoping to see names like American Civil Liberties Union, Public Citizen, Consumer Federation of America, … Continue reading →