Our bloated government needs to stop controlling and start serving. Providing its "less wealthy" citizens the very same investment freedoms that it grants its wealthier ones would be a good start.
It is somewhat ironic that none other than CNBC is reporting the news (which was suggested here months ago in "Will JPMorgan's "Enron" Be The End Of Blythe Masters?") that as part of its divestment of its physical commodities unit announced previously, JPMorgan may also seek to cover up any trace of market manipulation in the division recently embroiled in the aluminum cartel scandal (which we reported on in June 2011 and which story recently rose to prominence as a result of follow up reporting by the NYT) by getting rid of none other than Blythe Masters.
- So no great rotation into EM? Capital Flows Back to U.S. as Markets Slump Across Asia (BBG)
- Muslim Brotherhood leader arrested in Egypt (Reuters)
- Allies Thwart America in Egypt: Israel, Saudis and U.A.E. Support Military Moves (WSJ)
- Dear Bloomberg: when you buy the loans of a distressed retailer, you are not betting on a rebound, you are betting on being the fulcrum security in a bankruptcy: Kyle Bass Said to Bet on J.C. Penney Comeback With Loan Purchase (BBG)
- Bubbles Bloom Anew in Desert as Buyers Wager on Las Vegas (BBG)
- Britain rejects Spanish request for Gibraltar talks (Reuters)
- U.K. Mortgage Lending Rises to Highest Since Lehman Collapse (BBG)
- Pension Funds Dispute Math in Detroit Bankruptcy (WSJ)
- Christie Says Gayness Inborn as He Signs Therapy Measure (BBG)
DOJ Picks Up Where FERC Left Off: Begins Investigation Of JPMorgan's "Enronesque" Energy Market ManipulationSubmitted by Tyler Durden on 08/19/2013 18:50 -0400
On July 30, when FERC announced that it had agreed to resolve it allegations of JPMorgan manipulation of the energy market for a $410 million fine, with the bank neither admitting nor denying guilt, we posited that the only question on Jamie Dimon's mind was whether to pay the fine from petty cash or just to charge it on his corporate Amex. Three weeks later he may have some other questions swirling in his head, such as "whose Christmas lobbying stocking did I not fill with campaign donations?" after the WSJ reported that it is no longer FERC, but the DOJ itself, led by Preet Bharara, which is investigating whether JPM manipulated energy markets. Ironically, this is a deja vu of the SAC take down by the same Bharara, when a few months after SAC settled with the SEC it was shocked to be crushed by the Department of Justice which pulled an "Arthur Anderson" on it and for all intents and purposes shut it down (although with nobody sent to prison). It remains to be seen if Bharara will have the balls to take this prosecution to the next level and whether after he made SAC into Arthur Anderson, he will make JPMorgan into the New Normal's Enron and whether Jamie Dimon or Blythe Masters will be the next Lay and/or Skilling. One can hope.
Greed; corporate arrogance; lobbying influence; excessive leverage; accounting tricks to hide debt; lack of transparency; off balance sheet obligations; mark to market accounting; short-term focus on profit to drive compensation; failure of corporate governance; as well as auditors, analysts, rating agencies and regulators who were either lax, ignorant or complicit. This laundry list of causes has often been used to describe what went wrong in the credit crunch crisis of 2008-2010. Actually these terms were equally used to describe what went wrong with Enron more than twenty years ago. Both crises resulted in what at the time was the biggest bankruptcy in U.S. history — Enron in December 2001 and Lehman Brothers in September 2008. Naturally, this leads to the question that despite all the righteous indignation in the wake of Enron's failure did we really learn or change anything?
Trough-feeding debtism faces the need to clean up its detritus.
There was a time when Jamie Dimon liked everyone to believe that his JPMorgan had a "fortress balance sheet", that he was disgusted when the US government "forced" a bailout on it, and that no matter what the market threw its way it would be just fine, thanks. Then the London Whale came, saw, and promptly blew up the "fortress" lie. But while JPM's precarious balance sheet was no surprise to anyone (holding over $50 trillion in gross notional derivatives will make fragile fools of the best of us), what has become a bigger problem for Dimon is that slowly but surely JPM has not only become a bigger litigation magnet than Bank of America, but questions are now emerging if all of the firm's recent success wasn't merely due to crime. Crime of the kind that "nobody accept or denies guilt" of course - i.e., completely victimless. Except for all the fines and settlements. Here is a summary of JPM's recent exorbitant and seemingly endless fines.
The Only Question On Jamie Dimon's Mind This Morning (As JPM Neither Admits Nor Denies It Is The Next Enron)Submitted by Tyler Durden on 07/30/2013 08:33 -0400
Now that the previously reported "fine" of $400 million which the firm just got slapped with following its manipulation of various energy markets, is fact...
- JPMORGAN AGREES TO PAY $410 MLN TO SETTLE U.S. ENERGY PROBE
... One may say JPM has just admitted it is the next Enron. One would be wrong: "JPMVEC admits the facts set forth in the agreement, but neither admits nor denies the violations." In other words, JPM is a Schrodinger Enron: it admits the facts that the company best known for manipulating electricity - a charge which in 2000 was enough to crush the company, and which is now a fine equal to 0.4% of the firm's $99.5 billion in revenues - but neither admits nor denies this. But the biggest question plaguing Jamie Dimon this morning, is whether he will pay the $410 million FERC find with a personal check... or petty cash.
Lets face it, shysters exist....it's our job to ensure we stay well clear of them. Here are some RED FLAGS to look out for!
While Chanos' last year's short on HP has not been a tremendous success (yet), it seems the market is more acquiescent to the famous China bear's short call on CAT (among other things due to its infamous major exposure to China). As we noted in detail most recently first two months ago and then one month ago, things at the industrial company are not going at all well, but Chanos notes some more important concerns:
- CHANOS: SHORT CATERPILLAR INC.
- CHANOS: SAYS CATERPILLAR HAS ‘ACCOUNTING ISSUES’
- CHANOS SAYS CATERPILLAR IS TIED TO WRONG PRODUCTS IN WRONG TIME
- CHANOS: WILL FACE A SERIES OF SUPERCOMMODITY HEADWINDS
- CHANOS: ACCOUNTING FOR BUCYRUS DEAL MAY HAVE BOOSTED CAT EPS
- CHANOS: EARNINGS DRIVER FOR CAT MAY HAVE BEEN ONCE IN LIFETIME
For now, CAT is down around 2.2% on the day and while he believes global growth (and CAT's geographic bets) will hurt, it is the accounting for Bucyrus which makes the Enron billionaire most nervous.
Larry Summers has been failing up since he entered the public sphere. The reults have been catastrophic for many main street Americans.
The last two weeks oil inventories fell by a record 20 million barrels, this event has never happened in 30 years of historical data. Something just doesn`t add up here...
Giant Banks Take Over Real Economy As Well As Financial System … Enabling Manipulation On a Vast ScaleSubmitted by George Washington on 07/10/2013 01:37 -0400
Big Banks Move Into Uranium Mining, Petroleum Products, Aluminum, Ownership and Operation Of Airports, Toll Roads, and Ports, and Electricity
When Charles Ponzi was around, it took just a tad longer to rake in the cash and commit financial fraud, escaping with the proceeds to better climates. Today, the internet and the power of the virtual world have made the transfer of funds so much quicker.
- Bonds Tumble With Stocks as Gold Drops in Rout on Fed (BBG)
- Bernanke Sees Beginning of End for Fed’s Record Easing (BBG)
- Gold Tumbles to 2 1/2 Year-Low After Fed as Silver Plummets (BBG)
- PBoC dashes hopes of China liquidity boost (FT)
- U.S. Icons Now Made of Chinese Steel (WSJ)
- Emerging Markets Crack as $3.9 Trillion Funds Unwind (BBG)
- Everyone joins the fun: India sets up elaborate system to tap phone calls, e-mail (Reuters)
- China Manufacturing Shrinks Faster in Threat to Europe (BBG)
- More on how Syria's Al-qaeda, and now US, supported "rebels", aka Qatar mercenaries, operate (Reuters)
- Echoes of Mao in China cash crunch (FT) - how dare a central bank not pander to every bank demand?