By Pam Martens and Russ Martens: September 1, 2021 ~ JPMorgan Chase is the bank that gambled with the bank deposits of moms and pops across America in 2012 by trading exotic derivatives in London and losing $6.2 billion in the process. It’s also the bank that admitted to two felony counts in 2014 for its role in facilitating Bernie Madoff ripping off the life savings of thousands of more moms and pops across America. Its rap sheet of ripping off the little guy reads like that of an entrenched crime family. But when the bank was indicted in France on April 16, 2015 for being complicit in tax fraud, it had the temerity to appeal the charges on the basis that its “human rights” had been violated, along with various codes of criminal procedure. Its argument boiled down to this: it hadn’t been advised that it had the right to … Continue reading →

By Pam Martens and Russ Martens: August 30, 2021 ~ As of this past Friday, August 27, the U.S. had 330 COVID-19 infections per 100,000 over the last 7 days, according to the Reuters COVID-19 tracker. Canada had 6.3 times fewer cases, reporting only 52 per 100,000 over the past 7 days. The U.S. stood at 62 percent of its prior peak of cases on Friday while Canada stood at 32 percent of its prior peak. The U.S. and Canada confirmed their first cases of the virus within a week of each other in January of 2020. Both countries began vaccinating their population at roughly the same time, in December of 2020. The majority of shots in both countries came from the Pfizer-BioNTech and Moderna vaccines, which require two doses to be considered fully vaccinated. But the U.S. fell dramatically behind Canada in the early days of testing for the virus. … Continue reading →

By Pam Martens and Russ Martens: August 27, 2021 ~ For the past 19 years, China has been stonewalling U.S. regulators over access to the work papers of auditors of publicly traded companies that are based in China but listed on U.S. stock exchanges. China takes the position that these audit work papers hold state secrets and it prohibits audit firms from releasing the documents directly to U.S. regulators, effectively gutting U.S. law. Finally, last December, Congress addressed the long brewing problem. Both houses of Congress unanimously passed legislation called the Holding Foreign Companies Accountable Act. The legislation requires that the Securities and Exchange Commission (SEC) identify companies that are listed in the U.S. which the Public Company Accounting Oversight Board (PCAOB) cannot “inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction.” The legislation also requires the listed companies to provide documentation showing that … Continue reading →

By Pam Martens and Russ Martens: August 26, 2021 ~ JPMorgan Chase is unique among the mega banks on Wall Street – and not in a good way. It owns the largest federally-insured bank in the United States despite a rap sheet that would make the Gambino crime family jealous. It has been charged by the U.S. Department of Justice with five felony counts since 2014, admitting to all of them. Its Board of Directors has left the same man, Jamie Dimon, at the helm of the bank as Chairman and CEO, throughout those five felony counts. JPMorgan Chase is also the only American bank to ever be fined for using depositors’ money to gamble in derivatives in London and lose $6.2 billion of that money. (Jamie Dimon was Chairman and CEO at the bank then as well.) JPMorgan Chase is the only federally-insured bank in the United States to be … Continue reading →

By Pam Martens and Russ Martens: August 25, 2021 ~ Billionaire hedge fund titan Ken Griffin’s Citadel Advisors has had a stake in the biotech company, Regeneron Pharmaceuticals, since at least December 31, 2011 – a decade ago. The same is true for billionaire Jeffrey Yass’ giant hedge fund, Susquehanna International Group. Both stakes have grown in size in recent years. As of the most recent 13F SEC filing for Citadel Advisors for the quarter ending June 30, 2021, it and its related entities held a stake in Regeneron of long call options and common stock with a value of $189.7 million versus a short position of puts with a value of $188.5 million. As of its filing with the SEC for the quarter ending June 30, 2021, Susquehanna International Group reported a long position of common shares and calls of 1,116,127 shares valued at $623.4 million versus a short position … Continue reading →

By Pam Martens and Russ Martens: August 24, 2021 ~ The most recent Congressional Budget Office (CBO) forecast is projecting government debt levels in the U.S. not seen since World War II. According to a CBO report released on July 21: “After all the government’s borrowing needs are accounted for, debt held by the public rises from $21.0 trillion at the end of 2020 to $35.8 trillion at the end of 2031 in CBO’s baseline projections. As a percentage of GDP, debt at the end of 2031 stands at 106 percent, about 6 percentage points higher than it was at the end of 2020 and nearly two and a half times its average over the past 50 years.” As for the federal budget deficit as a share of GDP, things aren’t looking good there either according to CBO forecasts: “CBO projects a federal budget deficit of $3.0 trillion in 2021 as the economic disruption caused by the 2020–2021 coronavirus pandemic and … Continue reading →

By Pam Martens and Russ Martens: August 23, 2021 ~ Federal Reserve Chairman Jerome Powell and Fed Vice Chairman for Supervision, Randal Quarles, would desperately like to make three of the Fed’s emergency bailout programs to Wall Street disappear from further scrutiny by Congress or the American people. That’s because the specific details of those programs do not comport with the testimony that Powell and Quarles have provided at Congressional hearings throughout the pandemic. Both Powell and Quarles have told Congress that the mega banks were a source of strength during the pandemic. (The chart above shows what was really happening.) The three emergency lending programs that the Fed would like to make vanish are the Primary Dealer Credit Facility (PDCF); the Commercial Paper Funding Facility (CPFF); and the Money Market Mutual Fund Liquidity Facility (MMLF). These are not only the most opaque of the Fed’s “official” bailout programs but they … Continue reading →

By Pam Martens and Russ Martens: August 19, 2021 ~ The Lollapalooza Music Festival was held at Chicago’s Grant Park from Thursday, July 29 through Sunday, August 1. An estimated 100,000 people crowded into the event on each of its four days. A large segment of those attending were not wearing masks and social distancing averaged about 6 inches to zero. The Sturgis Motorcycle Rally took place in Sturgis, South Dakota on August 6 through August 15. The South Dakota Department of Transportation reported that a total of 525,768 vehicles entered the rally, using nine locations, for the combined 10 days of the event. The majority of the attendees did not wear masks. Social distancing was not practiced on the streets, in bars or in restaurants. Even the former President of the United States, Barack Obama, threw himself a big birthday bash on Saturday evening, August 7, at his $12 million … Continue reading →

By Pam Martens and Russ Martens: August 19, 2021 ~ When high risk derivatives start blowing up again at Wall Street’s mega banks and tanking the U.S. economy, be sure to send your thoughts along to these two men: former Congressman Randy Hultgren (R-IL) and former Congressman Kevin Yoder (R-KS). You can reach Hultgren at the Illinois Bankers Association where he now sits as President and CEO after losing his seat in Congress in the 2018 election. Yoder…wait for it…is a registered lobbyist at Hobart Hallaway & Quayle Ventures after also losing his seat in the general election of 2018. These two men were effectively the handmaidens of Wall Street in getting a critical derivatives provision in the Dodd-Frank financial reform legislation repealed in 2014. We’ll get to the specifics of the role the two men played in a moment, but first some background. According to the official analysis and report … Continue reading →

By Pam Martens and Russ Martens: August 18, 2021 ~ Before daybreak on any business day in lower Manhattan, the glow of lights from Bloomberg terminals illuminate windows at 33 Liberty Street, home of the New York Fed. The New York Fed not only has its own trading floor with speed dials to the Wall Street trading houses, but it also has its own global markets intelligence gathering group, called simply the Markets Group. According to a previously released educational video featuring Karin Kimbrough, then the Director of Financial Stability Market Monitoring at the New York Fed – a position she held until November of 2014 — the traders at the New York Fed take turns coming in at 4:30 a.m. in order to get a jump on market intelligence by calling their contacts in London, Frankfurt and Japan. (See video below.) Kimbrough explains what kind of intelligence the traders and … Continue reading →