Banksters Ship taking on Water

Next Bankster

Well, the public won't see any of this money but it's good practice to go after the ones who continue to line their pockets of false business.  If we're to ever move forward with America to gain respect of the government and corporations, that model is going to have to work weekends and around the clock, show me!  So much has come over the wire this past month I was waiting for it to accumulate and it's like a destroyer turning all guns and firing.  The government can't keep picking the pockets of the taxpayers to support what is wrong, the Federal Reserve can't keep printing money and add what is not collected to the taxpayers which in turn gets tacked to the national debt of future Americans.

I'll tell ya something, the dollar is just about to be burned at the stack and new money is needed in a big way, that's why all these suits are being hammered on the banks.  Not only that but some Banksters seem to have a conscience, let's take a look as the pot is boiling over!  To top it off the NSA scandal is also on the burner.  The US government support by the people, well I'll just say it, SUCKS!  

Ackermann Quit Zurich After Being Named in Suicide Note:
Ackermann, who led Germany’s Deutsche Bank AG (DBK) through the financial crisis in 10 years as the chief executive officer, said yesterday he was stepping down from Zurich Insurance.  Read more:

Microsoft, Google plan to sue over surveillance disclosure:
The U.S. Department of Justice's talks with Microsoft and Google have hit a wall as the government pushes back at the tech companies' demand for the ability to disclose the now-secret data requests they receive. Both companies may sue in order to "speak more freely."  Read more:

U.S. Bank Legal Bills Exceed $100 Billion:
The six biggest U.S. banks, led by JPMorgan Chase & Co. (JPM) and Bank of America Corp., have piled up $103 billion in legal costs since the financial crisis, more than all dividends paid to shareholders in the past five years.  Read more:

Regulators Prepare Penalties for JPMorgan:
Two federal regulators are preparing a series of enforcement actions and fines against JPMorgan Chase stemming from its dealings with consumers during the recession, presenting the latest legal threat to the nation’s biggest bank.  Read more:

JPMorgan's former 'London Whale' supervisor arrested in Spain:
Spanish police arrested former JP Morgan Chase trader Javier Martin-Artajo on Tuesday as he prepares to fight possible extradition to the United States over a $6.2 billion financial scandal at the United States' largest bank.  Read more:

Charges Against 2 Former JPMorgan Traders Fault Management:
Criminal charges brought against two former London traders on Aug. 14 continue to mar the reputation of investment bank JPMorgan Chase, intensifying the scrutiny surrounding its N.Y. executives. U.S. Attorney Preet Bharara publicly denounced the lack of oversight and controls placed on traders by senior management officials, as well as the practice of hiding significant losses.

InsideOut Ptv

Melt Down the Finical Cissis

Melt Down Part 1: the financial crisis, with the first hour tonight devoted to the exotic Wall Street products that led to the fall, while the second hour is a ticktock beginning with the failure of Bear Stearns, and ending with former Treasury Secretary Henry Paulson's dispersal of TARP (Troubled Asset Relief Program) money.

What went wrong in Europe & the USA

A synopsis of what went wrong:

Helga is the proprietor of a bar.

She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar.  To solve this problem, she comes up with a new marketing plan that allows her customers to drink now, but pay later.  Helga keeps track of the drinks consumed on a ledger (thereby granting the customers' loans).


Word gets around about Helga's "drink now, pay later" marketing strategy and, as a result, increasing numbers of customers flood into Helga's bar.  Soon she has the largest sales volume for any bar in town.


By providing her customers freedom from immediate payment demands, Helga gets no resistance when, at regular intervals, she substantially increases her prices for wine and beer, the most consumed beverages.


Consequently, Helga's gross sales volume increases massively. A young and dynamic vice-president at the local bank recognizes that these customer debts constitute valuable future assets and increases Helga's borrowing limit.

He sees no reason for any undue concern, since he has the debts of the unemployed alcoholics as collateral!!! At the bank's corporate headquarters, expert traders figure a way to make huge commissions, and transform these customer loans into DRINKBONDS.


These "securities" then are bundled and traded on international securities markets.  Naive investors don't really understand that the securities being sold to them as "AA" "Secured Bonds" really are debts of unemployed alcoholics.

Nevertheless, the bond prices continuously climb!!!, and the securities soon become the hottest-selling items for some of the nation's leading brokerage houses.  One day, even though the bond prices still are climbing, a risk manager at the original local bank decides that the time has come to demand payment on the debts incurred by the drinkers at Helga's bar.  He so informs Helga.

Helga then demands payment from her alcoholic patrons, but being unemployed
alcoholics they cannot pay back their drinking debts.  Since Helga cannot fulfil her loan obligations she is forced into bankruptcy.  The bar closes and Helga's 11 employees lose their jobs.


Overnight, DRINKBOND prices drop by 90%. The collapsed bond asset value destroys the bank's liquidity and prevents it from issuing new loans, thus freezing credit and economic activity in the community.

The suppliers of Helga's bar had granted her generous payment extensions and had invested their firms' pension funds in the BOND securities.  They find they are now faced with having to write off her bad debt and with losing over 90% of the presumed value of the bonds.

Her wine supplier also claims bankruptcy, closing the doors on a family business that had endured for three generations, her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 150 workers.


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