Regulators Investigate Banks For Lying About Investor Interest In European Bond Market

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Tue, 07/12/2011 - 21:03 | 1450083 knukles
knukles's picture


Wed, 07/13/2011 - 06:02 | 1450875 MarketTruth
MarketTruth's picture

Impossible? ;-)

Zero Hedge wrote:
"A year ago we discovered that several European countries only managed to squeeze into the Eurozone by misrepresenting their total debt courtesy of Goldman Sachs facilitated currency swaps which misrepresented the true state of said countries' finances."

And in YESTERDAY'S Fed minutes:
"In light of ongoing strains in some foreign financial markets, the Committee considered a proposal to extend its dollar liquidity swap arrangements with foreign central banks past August 1, 2011. Following their discussion, members unanimously approved the following resolution:

The Federal Open Market Committee directs the Federal Reserve Bank of New York to extend the existing temporary reciprocal currency arrangements ("swap arrangements") for the System Open Market Account with the Bank of Canada, the Bank of England, the European Central Bank, the Bank of Japan, and the Swiss National Bank. The swap arrangements shall now terminate on August 1, 2012, unless further extended by the Committee."

Tue, 07/12/2011 - 21:03 | 1450086 zorba THE GREEK
zorba THE GREEK's picture

 I find this difficult to believe, that banks would lie.

 Is there nothing sacred anymore. The next thing they'll be saying, is that governments lie.

 Whose making these absurd accusations? 

Tue, 07/12/2011 - 21:05 | 1450088 Downtoolong
Downtoolong's picture

Someone in the financial industry over selling the value of an investment. When did this ever not happen, and how many minutes was it before the person doing it got fired?

Tue, 07/12/2011 - 21:06 | 1450091 shinola
shinola's picture

Banks are being investigated for lying!?!


I am SHOCKED, shocked I tell you...

Tue, 07/12/2011 - 21:09 | 1450097 knukles
knukles's picture

See.  See.
Lookit all the testimony!

Toldja it was Impossible!

Tue, 07/12/2011 - 21:09 | 1450101 smlbizman
smlbizman's picture

the hedge, the hedge, the hedge is on fire tonight....

Tue, 07/12/2011 - 21:10 | 1450104 nonclaim
nonclaim's picture

“When it becomes serious, you have to lie” -- Jean-Claude Juncker

Tue, 07/12/2011 - 21:11 | 1450106 Sqworl
Sqworl's picture

LMAO...Homer..with bases loaded..

Tue, 07/12/2011 - 21:13 | 1450113 jbc77
jbc77's picture

Europe overstating interest in auctions? Ya don't say. Funny this subject should come up because I always scratch my head at some of the interst the U.S paper seems to draw. Esepecially yeilding effectively nothing in some cases.

Wed, 07/13/2011 - 01:50 | 1450635 Oh regional Indian
Oh regional Indian's picture

Indeed, the under-arm of the ponzi begins to show in that case, eh? 

Pardon me arsehole, your undie is showing.

Think GB and the Dutch buying UST. Makes no sense. At all. None.

As always, plausible deniability rules.



Tue, 07/12/2011 - 21:14 | 1450115 Number Yuan
Number Yuan's picture

I talked to my favorite bank manager about lying and the imminent collapse...

and he left a deposit on the floor.

Tue, 07/12/2011 - 21:17 | 1450122 knukles
knukles's picture

Actually, Tyler. 
While you mention something like "first in equities, then in bonds" having been on both sides the street and numerous asset classes, I'd suggest that the real skulduggery as you're describing is substantially more prevalent in the fixed income markets than equities....
More lightly regulated, no organized exchanges (all OTC), homes of the interest rate, credit default, etc. swaps.... very murky.  Hard to discern.  Why, just think of the discussions over the years about lack of viable quotes on bonds...etc.

And if you want murky, dive head first off the high board into the shallow end, smack dab into the rabbit hole, Alice, mushrooms and all, go for munis.  I mean, the pay to play games, bid rigging, known about by everybody, generally held knowledge, but opaque as one big fresh laid cow pie.

Ummmm um.   

Tue, 07/12/2011 - 21:28 | 1450145 MrBinkeyWhat
MrBinkeyWhat's picture

No! Really! Can you imagine my shock! Gummint MF's LYING!!! OK, enough Exclamation points. But really. Or not. If the hypocrisy was any thicker we would all be breathing thru tubes.

Tue, 07/12/2011 - 21:28 | 1450146 slewie the pi-rat
slewie the pi-rat's picture

complaints?  please put them in the basket on the floor over there.  yes, the round one.  thank you.  we'll be in touch, or you can just call our 800 # and talk to someone in asia. 

oh, you're very welcome.  that's why we're here:  to help you. 

Tue, 07/12/2011 - 21:54 | 1450224 trampstamp
trampstamp's picture

Sounds like the banker I spoke to today. Must be part of the hand book.

Tue, 07/12/2011 - 21:49 | 1450205 oldman
oldman's picture


Europe is doomed except for the Swiss, Norwegians, Swedes, Finns, Germans, Dutch, Danes, and who else? I am really quite ignorant on Europe(as well as everything else).

The Chinese are going down from what I read on ZH as well as the Japanese and again: ignorance.

Now the US of A is not in good shape, but there is no doubt that quite a few of our states are aslready in default or bankrupt.

I only know what I read here on ZH-----So I need to ask the question

Why is the Euro the only currency that we trash day after day?

How is the dollar stronger absent the nuclear threat that the US poses to the rest of the world? The economy here appears to be weaker than the rest of the nations in the developed world and its debt is nearly in the same category and its capacity to recover weaker than anytime in its history.

Come on dudes, help an old man out on this; he just does not comprehend why the Euro seems to be the whipping boy of the world according to MSM and here at ZH.

Wed, 07/13/2011 - 01:05 | 1450592 ViewfromUnderth...
ViewfromUndertheBridge's picture

European banks are buying dollars...through their US Primary Dealer subsidiaries. That is where QE2 Tyler showed and the rest of the world is starting to digest

So, the worse it gets in Europe and the greater the need those banks have for cash and reserves, the more those banks buy US dollars to buy USTs etc, which for them are money good on their balance, they can lever them up.

So, Ron Paul's suggestion that the Fed just eat the $1.6Trln in USTs would blow-up Europe....the end of the Ponzi.

Every time there is a "flight-to-safety" surge in the USD (and your USD short gets fucked) you can now enjoy the added inner-glow of knowing that as a US taxpayer the money that fucked your trade over came from you as well.

In addition, USD is the carry-trade currency of choice now (ZIRP) so all risk-off days sees USD buying to close out those trades...ZIRP paid for by you, too.

Thank you for asking.

Wed, 07/13/2011 - 04:03 | 1450815 oldman
oldman's picture


I understand the above, however I am not understanding how, when the house of cards falls, it will make the Euro worse than the dollar.

If this shit comes apart or 'when' it does----everyone will be 'in a world o' hurt'.

Do you think that the fed or treasury will get those dollars back? In this kind of Ponzi when the music stops there won't be a chair on the planet that is not made of pm's; this is an end game not a depression. They will take the money and run to buy your gold.


I suppose I was looking for some reason or reasons that were more rational and 'economic' rather than endgamish, but you are probably right----no explanation will cover up the larceny of this madness; it is an irrational universe we inhabit----of our own making.

Thanks for the help and good luck on your trades          om

Tue, 07/12/2011 - 21:52 | 1450215 buzzsaw99
buzzsaw99's picture

if it were me, i'd bet everything. [/john candy]

Tue, 07/12/2011 - 21:55 | 1450232 treasurefish
treasurefish's picture

RE √ Ω L U T ↑ Ø N 
RON PAUL  2012!!!

Tue, 07/12/2011 - 21:59 | 1450246 StormShadow
StormShadow's picture

I'd rather put my money with Bernie Madoff than any developed country government leader right now. I mean, hell, what Enron did is nothing compared to what our Fed does every day. Good grief!

Tue, 07/12/2011 - 22:13 | 1450280 max2205
max2205's picture

I hope I live to see the truth play out and those responsible put to death :)

Tue, 07/12/2011 - 22:52 | 1450368 honestann
honestann's picture

I hope you do.  But the chances are not good.

Tue, 07/12/2011 - 22:23 | 1450306 Everyman
Everyman's picture

How about the MBS and the CDO's and the Credit Default swaps?  Let alone all the mortgage trash on the books.  Commercial and Residential Real Estate that has gon backwards in value in all the loans, and the laons that never will be paid or foreclosed.

How big do they have to "eat it" before they choke on their own corruption.

They all deserve to be "piked" in front of their own banks.

Tue, 07/12/2011 - 22:47 | 1450354 TK7936
TK7936's picture
One Currency to rule them all,
One Currency to find them,
One Currency to bring them all,
And in the darkness bind them.
Tue, 07/12/2011 - 22:51 | 1450364 honestann
honestann's picture

Why anyone believes anything that anyone in the financial markets says is totally beyond me.  How much overt, in-your-face corruption do people need to witness before they stop cooperating with predators?

Get physical.  Get gold instead.

Wed, 07/13/2011 - 01:38 | 1450626 Popo
Popo's picture

Because unfortunately it's not that simple.  I wish it was.  But the long arm of gubmint can fuck with you even if you hold gold.

Yes,  buy gold.  But don't put all your eggs in one basket.

When they tax your gold transactions at 80%,  who will be the buyers?

When they levy customs export tax on gold at 80% where will you take your gold to find buyers?

Think it won't happen?   It *absolutely* will happen.



Thu, 07/14/2011 - 03:20 | 1455211 honestann
honestann's picture

Oh, and get the hell out of the USSA, like I did.

Convenient?  Not so much.

Worth it?  Damn straight!

Tue, 07/12/2011 - 22:54 | 1450371 honestann
honestann's picture

News flash.  While almost nobody was looking, 6 billion humans were abducted from planet earth, and replaced with sheep.

Tue, 07/12/2011 - 23:09 | 1450399 Paul Thomason
Paul Thomason's picture

A 'reasonable' settlement should fix this problem. No worries here, move along people.

Tue, 07/12/2011 - 23:14 | 1450406 Atomizer
Atomizer's picture

Obama's 2012 election campaign playbook documents must have been leaked.

We should all embark on new lying skills to fool the masses into financial obviation/banker servatude.

Tue, 07/12/2011 - 23:29 | 1450434 oldman
oldman's picture


This is sort of what I was afraid of----we are all just parrots babbling incessantly about the confusion and hysteria on the street.

Maybe, fundamentally and technically it is all the same.


Wed, 07/13/2011 - 00:01 | 1450479 gwar5
gwar5's picture

The EU and NWO has all been built on lies? 

Say it ain't so.... Party is barely getting started and we're already tripping over bodies?  This won't do at all.

The sooner the EU crashes and the Euro elite-trash is taken to the dump, the sooner we can bury the horrible  notion of a global marxist-style governance by the even bigger NWO body of unelected more-of-same.

Wed, 07/13/2011 - 00:54 | 1450568 oldman
oldman's picture


How is that going to bail out this sinking ship?

I don't care----just asking what that does forus---US of A?

Wed, 07/13/2011 - 01:10 | 1450598 Peter K
Peter K's picture

Goldman might have been the facilitators, but everybody knew what was being facilitated, the Greeks as well as the EU. And now they are shocked,.... shocked:)

Wed, 07/13/2011 - 05:14 | 1450850 HankPaulson
HankPaulson's picture

"Regulators Investigate Banks For Lying About Investor Interest In European Bond Market "

You say that like there might be some problem.

Since human society is nested within the "free" market and not vice versa, if someone makes a profit (from lying), you should rejoice.

Wed, 07/13/2011 - 11:05 | 1451796 midnight
midnight's picture

From the article: "A year ago we discovered that SEVERAL European countries only managed to squeeze into the Eurozone by misrepresenting their total debt courtesy of Goldman Sachs facilitated currency swaps which misrepresented the true state of said countries' finances. "


Which are those "SEVERAL" countries and where is the link that proves it?

Do NOT follow this link or you will be banned from the site!