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We Demand The Fed Be The Financial Uber-Regulator... The Australia Fed That Is
We already know that the Federal Reserve System was blind, mute, dumb, and frankly, retarded when it came to Lehman's Repo 105, and pretty much every other aspect of the Lehman collapse. As the Examiner discloses: "Secretary Geithner “did not recall being aware of” Lehman’s Repo 105 program", "Jan Voigts, who was an Examining Officer in FRBNY’s Bank Supervision Department, had no knowledge of Lehman removing assets from its balance sheet at or near quarter?end via a repo trade", "Arthur Angulo, who was a Senior Vice President in FRBNY’s Bank Supervision department, likewise was unaware that Lehman engaged in repo transactions at quarter?end" although the latter did point out that "the described repo transactions appeared to go “beyond other types of [permissible] balance sheet management.” And lastly, "Thomas Baxter, FRBNY General Counsel, had no knowledge of Repo 105 transactions, either by name or design." Yet it is these clowns that want to become America's uber-regulator. Now that is funny, considering that at the apex of the greatest cataclysm for the financial industry, the Fed was blissfully unaware of one of the most egregious book cooking scams ever conducted by a Wall Street firm. Yet with all the Fed's bells and whistles, with all its Bloomberg terminals, all its fancy daytraders, all its Flash trading enabled momentum chasing algos, one central bank, half way around the world, knew all too well what was going on at Lehman - the Reserve Bank of Australia. Which is why we nominate the RBA's chair, Glenn Stevens, to be direct supervisor of the entire ungodly and corrupt mess that is Wall Street (and to make Ben Bernanke his butler). We also strongly endorse the nomination of Amanda Drury to supersede that of Janet Yellen, as the Fed's new chair of vice. At least she will bring some inflationary pressures to the Marriner Eccles building.
From the Examiner's report:
Jawad reported that the Reserve Bank of Australia asked Lehman why Lehman wanted to engage in Repo 105 transactions.
The associated text is more or less irrelevant but shows once again just what a scam 105's were
Jawad then stated, “I spoke to Mark Cosaitis about this and he obviously would like us to give a vague reason about getting better net down treatment, which isn’t a lie. However, if they want a deeper explanation then we may have to get down to the nitty gritty of the truth. Do you want us to go down this line or want us to just give it a miss . . . . [T]he more people that know the truth, the more dodgy it can be.” The statement by Jawad about “better net down treatment” refers to Lehman’s terminology for the reduction of net assets by means of Repo 105.
Yada, yada, more criminality, we get it. What is funny is the massive game of pass the buck that is occurring on on US soil, even as the Aussies knew too well the shitshow that was about to unravel in the soon to be Socialist States of Amerika. Cause, you see, Tim Geithner, was not, is not, and never will be a regulator. In fact, if TurboTax can't hack it, you won't find timmay within 50 feet of it. Once again from the report:
In the words of one of the FRBNY’s on?site monitors: “how Lehman reports its liquidity is between Lehman, the SEC, and the world.” In the same vein, FRBNY witnesses repeatedly stated that they were mindful that the FRBNY was not Lehman’s “primary regulator” under the CSE program, and that the FRBNY was not monitoring Lehman with an eye toward compliance or enforcement. - Examiner’s Interview of Treasury Secretary Timothy F. Geithner, Nov. 24, 2009, at p. 4 (repeatedly emphasizing that the SEC, not the FRBNY, was Lehman’s primary “supervisor").
Ok, fine. So it is the SEC's obligation. So what do we find is the SEC's excuse for gross oversight:
[SEC Assistant Director for Trading and Markets Matthew] Eichner stated, the SEC applied a “much different standard” to holding company liquidity pools than the companies themselves did. Eichner characterized the SEC’s standard as “narrower” than the standard to which the holding companies held themselves in public disclosures. Additionally, he said that the SEC was “very comfortable living with a world where numbers in the public were the ones the firms worked out with their accountants,” as opposed to the narrower numbers worked out by the SEC.
Ah, ok, so the SEC is now passing the buck to Lehman's auditors, the soon to be defunct Ernst & Young (setting aside that fact that there is some serious Times Square real estate that will soon need to be filled: recall that 5 Times Square, E&Y's New York Headquarters, is at a DSCR of 0.98, with E&Y occupying 97% of the building. Something tells us the lease will be forcefully terminated before its 2022 maturity).
So what is E&Y's take on things:
Asked whether Ernst & Young was aware of or had concerns with Lehman’s inclusion of certain assets, such as the Citibank deposit or JPMorgan’s intraday collateral, in its liquidity pool, Schlich stated that the composition of the liquidity pool was a “regulatory issue."
Yup, folks, you heard that right: E&Y throws the ball back at the regulators, which for all intents and purposes is the FRBNY and the SEC, which have both washed their hands of the whole affair. And so we are back to square one, with nobody caring to take any responsibility, while thousands of people lost the entirety of their Lehman investments because of the corrupt trio of the FRBNY-SEC-E&Y. Just swell.
Please can Australia annex the US already?
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It's one thing removing/replacing these clowns. However, they are just as clever as the rest of us, but corrupt to the bone.
Let's uncover the puppet masters and isolate each and everyone.
Then and only then, we can start fresh with any chance to succeed.
Actually, public shootings are the easiest answer. Any time that a publicly traded company does what Lehman does, line the guilty parties up against a walll, read them what they said, rattle off how many people's lives they'd f*cked over as a result of their actions, then *bang* bye, bye guilty parties.
I bet compliance would go through the roof.
China does this per se. China literally DOES kill banksters. America has a lot to learn as China also raised the reserve requirements of banksters while the USA lets banksters get away with 'money for nothing'.
Of course China is not the best safe haven either. IMHO there is no good central banking system in the world, as they all can steal from you via currency devaluation (also called inflation). Few Americans truly realize the massive theft going on for the past many generations under the central bank name of 'inflation'.
I'd like to see this "I didn't know, did you?"
"Nah, I didn't know," turns to the next guy/gal, "Did you?"
"No way, did you?" (and so on) routine LIVE . . .
in the context of a mass perp walk.
Now that would make it truly entertaining. Otherwise, it's just cheap slapstick that insults the very idea of human intelligence.
Well done, excellent follow up on yet just one more of the clusterfucks that is the Fed/Treasury/Wall st banking complex. Of course, the same shit is happening today but oh no, let's not audit the Fed, Mr. President Obama, the hope and change agent with no phucking stones. Anyways, I digress...
As is the case with all these highly questionable, possibly illegal, certainly morally corrupt practices, nobody in the current power structure thinks they are responsible, it was the other guy.
Well, I'm gonna blow the doors wide open and disclose who the person was who is responsible: it's the fat guy with the red stapler in Office Space.
Jimmy James
Rico this shat
Come and listen to the story about the chairman named Ben
The last time he spoke the truth, even he can’t remember when
Appointed by the oligarchy because he would do what he is told
Especially when it came to manipulating the price of gold
The soft, shiny stuff, the yellar metal
The first thing Ben did was crank up the printing press
When he is going to stop is anyone’s guess
Deflation will never happen you just wait and see
He distributed the cash to bankers from sea to shining sea
Security threads, dead presidents, multi-colored, serialized
Thank you all for coming and learning about Chairman Ben
Now you know there is no way against the machine we are going to win
Make your reservations now for the tour to be held next week
You will get to watch Ben and his cronies suck that oligarchy teat.
Supple, warmed to 98.6, momma’s milk
Now exit to the right and take small children by the hand
Don’t forget to stop at the souvenir stand
Thank you very much for your interest in Ben
Please drop your children’s future into the trash bin
Just before the door to the right
great beverly hillbillies lyrics.
I see no connection to the theme song of "Beverly Hillbillies".
Funny - and it is the Beverly Hillbillies!
Are you serious?
You mean the RBA that is presiding over a still inflating housing bubble that dwarfs the one the US had?
The average Australian household debt has increased north of 90% in the last five years! In other words they will have a crash that will be truly epic.
People on the ground in Australia are housing crazy - everyone knows for a fact that housing doubles every seven years no matter what. They wont even discuss that this might be wrong.
This article is an extremely wild swing and a miss about a subject you know nothing of.
Dead serious, especially about Drury.
Ahh, nominating the egotistical Glenn Stevens - the same one who hiked rates into the middle of the 08 melt down - to supervise anything is just nonsense. The guy is completely retroactive and is deluded by his own belief that in a small open economy like Australia, anything he does makes a shred of difference.
The RBA asked a question of Lehman ......so what. They didn't do anything about it.
Glenn Stevens is no better than any of them, it's just with your US centric view of the world he seems a lot better than the clowns you have.
Everyone likes Amanda though
one year + and sarcasm indicators are still needed. sigh
Most of the hoards here are well aware and appreciative of your ironic twists and turns. Would be a dull place without them.
you just know that robo is going to pop into this thread with pics....
Jesus, I just turned 57 years of age and the Lehman thing just made sense when viewed through Abbot and Costello
http://www.cranberryleague.com/Who1st/Who1sts.htm
Before I die I want to see Dick Fuld and his cosy club of jackals jailed for life doing hard labor. Dick Fuld along with the whole treacherous club. They walk this earth free and clear. Liars under oath and signature.
Do you have a justice system or is America one big brain dead corporation of fools begetting fools paid for and brought off to turn a blind Eye. Trust once broken can never be rebuilt and that means its never coming back. Well may you say "In God we trust" because every one else is on the payola.
Tyler you should think the mafioso - They at least have a trusted system that eliminates greed at source with little or no cost. Ring Vinnie, he'll have the money back in a coupla days with the added bonus of "UNEXPECTED JUMP IN JOB VACANCIES" headlines.
First party I see that runs their campaign based on anarchy and eye candy, I'm all in.
I think you may have missed the <sarcasm off> sign at the end of the post, pls. re-read slowly. Esp. the part about about making Mr. BB the butler to Mr. Stevens, the RBA Chairman.
THat's right Sydney housing 8.3 times median wage, Melbourne more expensive than Lonodn --yes and the banks were lending 110% and the Govt/firsthome buyers aid up to 25K and the Chinese can come over and buy a batch of houses with the Govt's blessing.... google Steve Keen to get some truth. Iys truly scar and the first home buyers from last year have a majority in mortgage stress by now.. and there is always drought even when it floods and Aus exports wheat and rice...
So it's Glen Stevens fault that we're all morons who'll gorge on debt and fall hand over fist to buy over priced housing with bugger all income to support it. Seriously, the RBA has warned on many occasions about the housing bubble and have stated that they are now in the business of popping bubbles. So if these morons want to keep piling on the debt then they will pay the consequences and the RBA will oblige accordingly. While far from perfect at least I have abit of faith and confidence in the RBA to do the vaguely correct things much more so than the US or China.
Keep dreamin' mate!
Gidday and good luck.
An Open Letter to Secretary Geithner:
Dear Mr. Secretary,
Please resign or kill yourself you incompetent asshole.
Regards,
The American Taxpayers
/signed
Damn, you found my contrarian indicator!
When investment bankers are picked off in the streets I know that we are close to seeing "change you can believe in."
Sadly it has nothing to do with ol spineless incompetence in a cheap suit with an oval office.
Looks to me like it would be easier to make a list of things Timmah did know about.
I'd be enthusiastic about seeing Geithner called on the carpet and removed, but I fear that would satisfy the crowds, who would settle for the prosecution of the errand boy while the store owners go free.
you always seem to have excellent words Ned. Your insights are valuable!
I for one welcome our new Australian overlords.
Please, come to DC. Feel free to take the best seats in the house (and the Senate!)
BULLSHIT TYLER, QUIT SPOUTING MIS-INFORMATION!
First sentence SHOULD read: We already know that the US public is blind, mute, dumb, and frankly, retarded when it came to the Federal Reserve, and pretty much every other aspect of the American collapse.
Open your fekkin eyes.
Leave Tyler alone.
But, you are right, Americans should engage more and should learn more about civics and financing, rather than sports, American idol and the latest gadgets.
My company invited an expert from Europe (non-English speaking country) to troubleshoot some specialty heavy machinery for a power plant. To our amazement the person that showed up, was a youngster shy of his 25th birthday. We thought that he was the guy minding the testing equipment.
But.. no. he was the expert. Checked the equipment, gave us the rundown, wrote the report in English and back to Europe.
Out of engineering college at 22, 3 years full blast in-shop training and bingo.
Now, most Americans around that age that I know still cannot tie their shoes. Granted though that we have several geniuses, but not enough practical common sense go-get them types.
Too much bubble gum? Too much TV? Too many gadgets? Too many loose chemical blond bimbos?
You call it.
Ok then, I'm looking for work & never been to the USA.
But seriously, I spend much time interpreting the RBA statistics.
The balance sheet of the RBA is a smoking ruin, a bombed out shell.
The AUD is no less worthless than the USD.
to the contrary, you have lots of natural resources the Chinese want bad. The Chinese are keeping your dollar up in the same way as Canada's loony is, by buying resources from you. When the resources run dry, then you will have a Australian Dollar worth what the US Dollar is worth or maybe less.
Need a job in the USA. Teach us how to surf, hell we are already treading water, so we might as well have some fun.
mate, those resources gonna last till 2070. By the time we start having problems, ya people in the Us of A will be living among smoldering ruins since long.
Gidday
Jeezus is it that hard if AUS could figure it out? I have no confidence in our US oligarchs.
Jeezus is it that hard if AUS could figure it out? I have no confidence in our US oligarchs.
hanging inverted over a heap of glowing charcoals one could ask the same simple questions, lowering a notch at a time till answers more readily believable spluttered from their lips ...
Shame the lucky country wont have any water in ten years despite all the booty they have extracted from the dust.
You don't want Glen Stevens, because you don't want the type of deception that you've already got. In December 2008 Glen Stevens stated “I do not know anyone who predicted this course of events."
http://som.eldoc.ub.rug.nl/FILES/reports/2009/09002/09002_Bezemer.pdf
when, as we all know, many did - including Australian academic Steve Keen (sic). If only they'd listened. I guess too much at stake to rock-the-boat - the same problem you/we all have now...
And you think you've got problems waking up your fellow countrymen/women. Here the intellectual complacency and urge to conform is so great that any dissent is seen as lunacy - the mindset of "yes, we're all individuals" *in unison* prevails.
http://www.youtube.com/watch?v=Zjz16xjeBAA&feature=player_embedded
Aussie, Aussie, Aussie...
Mahooley.
Yes and the bureaucratic profiteering started with selling the girls and women from the 2nd and 3rd fleet on the wharf for rum to he highest bidder...
so the women still know to shut up. Different ways.
aus punter - that's a bit unfair on Stevens and the RBA. They were hiking up interest rates because the Australian economy was booming and they were trying to deflate the aussie housing bubble. So when the GFC struck they hit reverse and droppped interest rates. On the bright side the sudden drop in interest rates helped Australia avoid a technical recession. On the dark side it's re-inflated housing bubble. Mind you the RBA also cleaned up on the forex markets when the AU$ was dropping like a stone back in 2008 and deposited an extra $5.2bil into the federal budget.
I must admit, I give the RBA much higher marks than the Fed. Likely this is because I find the RBA far less corrupt, less bought 'n paid for.
However, they are going to have the mess of all messes on their hands when the Aussie housing bubble busts. Like all bubbles, a matter of time.....
Calm, younglings, calm. Does it not strike any of us as odd, that stone perfect meat has been thrown our way in this juicy Lehman report? What, did we get lucky? Is the FED being held over a barrel by a congressional oversight committee?
-Look, corruption is being normalized. If this sort of thing can get swept under the rug, nothing else (short of a massive expose of the Fed members drastically controlling the media) will dent the BHC tyranny.
The way these things are planned there are two outcomes possible, either one is acceptable when you're in control. One; the market was made by the Fed, inflated -supposedly to encourage bullishness, the instruments would then be bought off the Fed, transmogrification of problem to profit complete..0100100(7) Or, Fed spreads an almighty cold through the global economy that leaves nothing standing but the dollar, any dollar-denominated asset looks even better in a bikini.
We're in 'Or,' country, by the way. ..did you know, last week, there was a sale, by Goldman, of its entire stake, over ten percent, in a european giant, and the price moved up as a result.
you mean Italian cable maker Prysmian SpA. Well, why not Italy is only a short boat ride from Greece. Quite sure the pump, while we dump, program is in high gear. What we won't know about the next problem for sometime, so cover your capital like Goldman is doing. There is bad smell in the air. And, good old Warren Buffett, the grand daddy of clean hands and quotable wisdom...just where does he fit into this "hole" picture with his 10% stake in Goldman and spit trading closeness to the FED, etc.
And so we are back to square one, with nobody caring to take any responsibility
Responsibility?! They are doing the work of God, or so these folks have been trying to tell us. Or that if we dare to ask what the fuck is going on we need to apply to God for permission to ask the question, let alone do the audit. Responsibility has been rendered as a sad joke that is only played upon the morts.
If the plan is to pass the baton onto the next Anglo Imperial colony (and don't tell me the US is NOT still part of the Imperial Empire), then the main choices are South Africa, Canada or Australia. Since most blind economists agree the 21st century belongs to the Asians, then Australia is the natural choice.
The infrastructure and laws have already been laid out. And for those who are unaware of how much of a police state Australia has become over the last decade, just come on down and see it for yourself.
http://www.deepcapture.com/tag/the-madoff-exemption/
Did any one hear of the SEC's Madoff exemptiion, named for you know who.
This exemption allowed the prime brokers and their favored hedge funds to not borrow shares in order to short stocks
How did Lehaman manage to go BK when the could sell something the created out of thin air.
And how did the DTCC clear these trades?
Read the above link.
In the Forrest Gump world we live in, "Uh..I dunno. Guess I was an idiot" is a perfectly permissable defense.
"Oh. I see. You didn't commit a crime, but were just stupid? Not your fault! You were born that way. Let's just move on. And since we all know stupid people are better at getting stuff done than some smart guy, please go back to being in charge and keeping things running! I'm too busy to think about it. Thanks!!!"
And that's all I know about that.
I've been lurking here for around a year. Don't praise Glenn Stevens too highly. The RBA and Glenn Stevens gave no sign of having seen the GFC coming. Recently Glenn Stevens was deriding Barnaby Joyce (Opposition Finance Minister who obviously reads blogs like ZH et al)for suggesting that the USA might default on its debt and that Australia might also if it continues on its current path of stimulus spending. Although the Aussie Govt debt is relatively small as yet, consumers are in more indebted than Americans. Keynesians are alive and well down here. Maybe we're just not as corrupt. Mind you, the investment banks did make a forceful case some years ago for relaxing Aus's banking regulations but it didn't fly.
Aussie sheila
Nail. Head.
That Amanda Drury webpage is creepy. It's almost like Sears catalog porn.
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