Search Results for: JPMorgan

By Pam Martens and Russ Martens: April 29, 2020 ~ Thus far, the highly controversial corporate bond buying programs that the Federal Reserve first announced on March 23 have yet to spend a dime according to a spokesperson for the New York Fed, the regional Fed bank that is overseeing almost all of Wall Street’s emergency bailout programs today as well as during the financial crash of 2007 to 2010. But as the above chart indicates, just a promise from the Fed to spend billions removing toxic waste from Wall Street’s mega banks is enough to put a bid back in the junk bond market. Here’s the skinny on how the Fed propped up both the Dow and the junk bond market with its well-timed announcements on March 23 and April 9. From the close on March 4 to the close on March 23, the junk bond exchange traded fund … Continue reading →

By Pam Martens and Russ Martens: April 24, 2020 ~ The Fed is back to its same ole bait and switch routine. Yesterday, the Federal Reserve issued a press release, which, on the surface, made it sound like the Fed is going to make full disclosure on where its trillions of dollars in money created out of thin air is going. Unfortunately, upon closer inspection, the Fed is saying it will only release the names and details of its programs where the taxpayer is putting up money to absorb losses. That leaves the following programs with no guarantee of timely transparency: the Fed’s repo loan program which has already made more than $9 trillion in super cheap revolving loans to the trading houses on Wall Street; the Fed’s Discount Window which, as of this past Wednesday, has a balance of $33.7 billion that went to unknown banks; the $31.5 billion … Continue reading →

By Pam Martens and Russ Martens: April 20, 2020 ~ The Federal Reserve’s role under the U.S. law that governs it (the Federal Reserve Act) is to function as the nation’s central bank and lender of last resort to deposit-taking commercial banks in a crisis and to set monetary policy to achieve the dual objectives of stable prices (preventing deflation as well as runaway inflation) while maximizing employment. But since December 2007, the Federal Reserve has simply written its own playbook, independent of the law that governs it. The Fed has decided to outsource to one of its 12 regional Federal Reserve banks, the New York Fed, the role of propping up the swamp on Wall Street. The New York Fed’s own playbook involves dangling a shiny object for mainstream media in a “look here but not there” operation. During the 2008 financial collapse on Wall Street that took down … Continue reading →

By Pam Martens and Russ Martens: April 17, 2020 ~ According to the Federal Deposit Insurance Corporation, as of yesterday there were 5,117 federally-insured banks and savings associations in the United States. But in terms of risk to the U.S. economy and financial system, according to the U.S. Treasury’s Office of Financial Research, only five of those banks matter. And as you can see from the chart above, those five banks are tanking. On February 14 of this year, Citigroup’s share price closed at $78.79. Yesterday, it closed at $40.52, a decline of 48.5 percent in two months. This is the same bank that was resuscitated by its regulators during the 2007-2010 financial crash when its share price went to 99 cents. Citigroup received the largest bailout in global banking history, including $2.5 trillion in secret, cumulative revolving loans from the Federal Reserve. On February 14, the common stock of … Continue reading →

By Pam Martens and Russ Martens: April 16, 2020 ~ Bloomberg News has an article up today with the headline: “The Fed Loves Main Street as much as Wall Street This Time.” The article is accompanied with a graphic of Fed Chair Jerome Powell shooting equal amounts of money at Main Street and Wall Street. Nothing could be further from the truth. Despite the headline, the article by Peter Coy offers not a scintilla of evidence to support the premise that Main Street is getting a fair shake from the Fed. What the article does do is adopt the talking points the Fed has used in every press release it has issued on a new funding facility rollout – that the money will (through some magical and invisible and unexplained hand of the market Gods) make its way to American workers and households. It’s all bunk. Here’s what is actually … Continue reading →

By Pam Martens and Russ Martens: April 14, 2020 ~ In the past few weeks everyone from Fed Chair Jerome Powell to U.S. Treasury Secretary Steve Mnuchin to former Fed Chair Janet Yellen to bank analyst Mike Mayo have appeared on TV to tell the American people that the big banks on Wall Street are well capitalized. To put it in Janet Yellen’s exact words on CNBC last Thursday, “we have a strong, well capitalized banking system.” These folks have to keep repeating this mantra to the public because the public is increasingly getting curious as to why the New York Fed has had to pump a cumulative $9 trillion in cash to these Wall Street banks, since September 17 of last year, if they are so well capitalized. Can big banks actually be well capitalized and have no liquid money to make loans – the key function of a … Continue reading →

By Pam Martens and Russ Martens: April 9, 2020 ~ For the first time in the history of the Federal Reserve, it has signed on to a plan with Congress to nationalize the unmanageable debts of global banks and other multinational corporations and put the U.S. taxpayer on the hook for the losses. Conducting the bulk of these programs will be the Federal Reserve Bank of New York, known as the New York Fed, which is a private institution owned by (wait for it) multinational banks. Because the New York Fed is owned by multinational banks and is allowed to create trillions of dollars out of thin air to conduct bailouts of global banks and multinational corporations since it created this precedent in 2008, it is effectively functioning as a multinational central bank with the Federal Reserve in Washington, D.C. and Fed Chairman Jerome Powell little more than titular props … Continue reading →

By Pam Martens and Russ Martens: April 7, 2020 ~ If it sounds ghoulish, it’s because it is ghoulish. Some of the biggest banks on Wall Street have been intimidating their traders to come back to work despite an executive order from the Governor of New York State, Andrew Cuomo, ordering people to remain at home during the coronavirus outbreak unless they work for essential businesses like grocery stores, pharmacies and hospitals. New York State, home to Wall Street, is now the epicenter of the coronavirus outbreak in the United States with 5,489 deaths as of today or 44 percent of all deaths from coronavirus in the entire United States. Now, it turns out, while Wall Street traders have taken on greater health risks of catching the coronavirus by traveling to work on mass transit and working in a potentially contaminated building, some of the biggest banks will collect a … Continue reading →

By Pam Martens and Russ Martens: April 7, 2020 ~ It’s become your life or your trading bonus at some Wall Street firms. On November 10 of last year, Lesley Stahl of the CBS investigative news program, 60 Minutes, interviewed Jamie Dimon, the Chairman and CEO of JPMorgan Chase. As part of the interview, Dimon strolled Stahl around one of his trading floors in New York where traders appeared tightly packed in close quarters. Dimon said this: “This is one of six trading floors in the building. There’s like 450 people in this trading floor. An equivalent to this in London, half of this in Hong Kong, and in 23 other countries around the world.” When we went back to re-watch the program to more carefully consider the dystopian work environment of human beings in the 21st century, we took a screen shot of a female trader at JPMorgan Chase. In … Continue reading →

By Pam Martens and Russ Martens: April 1, 2020 ~ On March 26 Federal Reserve Chairman Jerome Powell went on the Today show to deliver one message: “There is nothing fundamentally wrong with our economy.” Recently U.S. Treasury Secretary Steve Mnuchin has appeared on the White House lawn to tell reporters that this is nothing like the last financial crisis. Fed regional bank presidents have appeared on cable news asserting that the Wall Street banks have plenty of capital and today’s economic distress is caused solely by the coronavirus. Even New York Times columnist and perpetual Wall Street cheerleader, Paul Krugman, was on CNBC this week reassuring viewers that today’s problem was not like the last financial crisis. And yet – the facts keep getting in the way of this “official” narrative. The first coronavirus COVID-19 case was discovered in China in December 2019 and didn’t become a major issue … Continue reading →