In Historic First, Singapore Shuts Local Private Bank Due To "Worst Gross Misconduct" Is Has Ever SeenSubmitted by Tyler Durden on 05/24/2016 08:03 -0400
Over one year after the collapse of 1MDB, aided and abetted by none other than Goldman Sachs, officials have finally started to piece together the fund flows, and BSI was the first casualty: "BSI Bank is the worst case of control lapses and gross misconduct that we have seen in the Singapore financial sector," Ravi Menon, managing director of MAS, said in the statement. “It is a stark reminder to all financial institutions to take their anti-money laundering responsibilities seriously."
With high-yield bond funds suffering the largest redemptions in their history, this week saw gold fund flows soar to their highest in 2016 as buyers took advantage of the lower prices following the same path as George Soros, Stan Druckenmiller, Jana Partners, and Canada's financial giant CI Financial.
Now that 13-F reporting season is over, we have the data to compile who bought, who sold, and what the top holdings of the largest hedge funds are.
Instead of selling US Treasurys, as many has expected, Saudi Arabia appears to have been buying US paper over the past year according to government data.
As we reported earlier today, following the surprising "resignation" of the company's CEO and Chairman, Renaud Laplanche as a result of an "internal board review of sales of $22 million in near-prime loans to a single investor", which resulted in the stock losing a quarter of its market cap in minutes, subsequent revelations have seen the spotlight shining brightly on none other than former Morgan Stanley CEO and current Lending Club board member, John Mack, who according to Bloomberg invested in the same venture that led to the termination resignation of the CEO.
Last week we had a bearish EIA Report and Oil moved up $3 bucks due to Fund Flows getting ahead of the fundamentals.
Three weeks after angering the mainstream media with his apocryphal assessment that the US "Is Headed For A Massive Recession" and that "It's A Terrible Time To Invest In Stocks", Trump is likely set to make even more waves with an interview he gave to Fortune magazine, which will be released in its entirety later this week, in which Trump says that while he likes Janet Yellen’s low interest rates, he is not a big fan of Janet Yellen herself. "I think she’s done a serviceable job," Trump tells Fortune. "I don’t want to comment on reappointment, but I would be more inclined to put other people in."
Meet Andy Guo, an 18-year-old Chinese immigrant, who loves driving his red Lamborghini Huracán. He does not love having to share the car with his twin brother, Anky. "There’s a lot of conflict," Mr. Guo said, as a crowd of admirers gazed at the vehicle and its vanity license plate, “CTGRY 5,” short for the most catastrophic type of hurricane. Or Diana Wang, 23, who thinks a supercar is a poor investment, because its value decreases over time. "Better to spend half a million dollars on two expensive watches or some diamonds."
When last we checked in on the 1MDB saga, Goldman was busy tying up a few loose ends. Tim Leissner, the banker who built the firm’s Southeast Asia operation from the ground up and the man behind a series of questionable deals that funded what would eventually become Malaysian PM Najib Razak’s personal slush fund, was essentially forced out in January, after bank investigators uncovered what they said was an unauthorized reference letter. Now, the global effort to find out how nearly three quarters of a billion dollars ended up in Najib's checking account looks set to ensnare all of the usual suspects.
The entire Deep State complex is at the heart of the nonsensical, corrupt, and fraudulent system... Expecting the Mad Hatter to protect you? Or the Cheshire Cat? Good luck with that!
"Three quarters of the previous selling of equity ETFs during January and February has been reversed in just three weeks. CTAs appear to have fully covered their shorts. Indeed both CTAs and Discretionary Macro hedge fund managers appear to be close to neutral right now... we conclude that the short covering phase that started a month ago is very advanced."
"We are in the bottom of the 8th or 9th inning, and unless the Fed steps in to add liquidity to the market, which seems unlikely, I don’t expect extra innings... there is no question that the bubble will burst, resulting in a mini or not-so-mini credit crisis."
Once the current short squeeze is over, expect everyone to start paying far more attention to recovery rates and the true value of "fundamentals." Here's why.
Amid a recent exuberant short-squeeze-driven bounce, the 'real' valuation of the Russell 2000 remains at insanely high levels (and gravely decoupled from credit markets). But as Dana Lyons' explains the market likes to do whatever will fool the most people. So while this level should at least be an interesting one in producing a battle between the Russell 2000 bulls and the bears, it would also be an ideal spot for the market to unleash its shenanigans.
Not only has the Yen strengthened and stocks collapsed since BoJ's Kuroda descended into NIRP lunacy but, in a dramatic shift that threatens the entire transmission mechanism of negative-rate stimulus, Japanese banks (whether fearing counterparty risk or already over-burdened) have almost entirely stopped lending to one another. Confusion reigns everywhere in Japanese markets with short-term interest-rate swap spreads surging and bond market volatility spiking to 3 year highs (dragging gold with it).