GAO Fail: Phony Fed Audit Fails to Reveal BlackRock & Jamie Dimon's Dirty Secret

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Mon, 01/02/2012 - 22:34 | 2027547 oleander garch
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Do as Wall Street does, not as it says.
Wed, 09/14/2011 - 03:26 | 1666999 chinawholesaler
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Mon, 08/22/2011 - 19:12 | 1588131 mberry8870
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"If one guy with nothing more than a laptop and an internet connection could find all this, we are left to wonder what other elephants the GAO ignored during its field trip to 33 Liberty Street."


The difference being you were looking.

Mon, 08/22/2011 - 18:50 | 1588040 jmc8888
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Anyone else having problems with ZH?

Mon, 08/22/2011 - 18:11 | 1587880 Tunga
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We're sorry but Microsoft is not currently translating HP code. Please download the latest version of for the latest version of this very exciting but not so unexpected conclusion to the saga formerly known as; WTF was I thinking? Life Liberty and the Pursuit of Happiness? HAHAHAHAHAHAAHA!

Mon, 08/22/2011 - 18:03 | 1587851 falun bong
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I wonder what the AFL-CIO guy is doing on that list?

His membership should be pretty underwhelmed with the share of the pie they got out of this deal.

After all, who needs solvent "customers" with actual wages in their pockets to buy your products when you can make money instead with all these games.

Biggest heist in history, happening before our eyes, under our noses. If you walk in to a bank with a wheelbarrow, fill it with money, and nobody stops you at the door, what do you do? You go back foir seconds, that's what you do...


Peace (dividend)

Mon, 08/22/2011 - 14:42 | 1587010 strateshooter
strateshooter's picture

this and other recent revelations now clearly show that the politicos sanctioned massive fraud as a panic measure to help out the FIRE industry that had consumed itself thru massive fraud.

There can be doubt now about the collusion between the Banks and their politico puppets.

Sometime in the future..ALL these people ought to be in court and tried before the American people.

Their defence will be ..we had no choice, we had to do it to avoid catastophe.Bullshit.They did to save their own asses.

Paulson, Bernanke ...all of 'em. Jail time ...serious jail time and hard time .


Mon, 08/22/2011 - 14:06 | 1586799 disabledvet
disabledvet's picture

Spunds like Jamie Dimon made his pick for a billion good reasons to me. All that's missing is a le etat cest moi moment.

Mon, 08/22/2011 - 13:41 | 1586650 sgt_doom
sgt_doom's picture

Fantastic blog posting, Master EB, fastastic!

Gee whiz, old Stephen Friedman, who was:

Senior Principal of Marsh & McLennan Capital, Inc during 2001.

Also, Bush’s director of the National Economic Council,

And don't forget, he served on President’s Foreign Intelligence Advisory Board (PFIAB), Aspin/Brown Commission on the U.S. Intelligence Community, Jeremiah Panel on the National Reconnaissance Office, In-Q-Tel, Markle Foundation

And Blackrock spewed forth from Peter G. Peterson's Blackstone Group, and David Rockefeller handpicked Peterson to be his replacement as director at Council on Foreign Relations, and later Peterson would handpick little Timmy Geithner to replace Peterson at NY Federal Reserve.

Yup, it's a small world after all (please add Coca Cola muzak here).

Is it irony or perversity that President Kennedy stood up to both US Steel and GE, but then our Hopeless Changeling, Barack Obama, appoints the CEO of Zero-tax paying, and massive jobs offshoring, GE, to be the "jobs czar"?????

?Ain't Amerika grand?

So he's been on just about every intelligence panel between 1980 to 2000, and knows quite a bit about the NRO, plus he's Goldman Sachs, plus FRBNY, plus CIA's "venture firm" In-Q-Tel, plus the Markle Foundation which, together with the Center for a New American Security, appears to be the author of too many of the Obama Administration's position papers.

Mon, 08/22/2011 - 16:46 | 1587547 Rick64
Rick64's picture

NEW YORK (Reuters) - Former New York Governor Eliot Spitzer was hit with two libel lawsuits seeking $90 million by former Marsh & McLennan Cos executives over a column posted on about an insurance bid-rigging scandal.

Mon, 08/22/2011 - 14:27 | 1586929 EB
EB's picture

And didn't Obama's mom work with papa Peter Geithner on microfinancing projects in Indonesia for the Ford Foundation?  

Mark Lombardi would be having a field day with this stuff had he only chosen not to commit suicide right as his career was taking off.

Mon, 08/22/2011 - 13:07 | 1586518 daxtonbrown
daxtonbrown's picture

At some point some these guys are going to be running for their lives. With this degree of crookedness, abetted by the Federal government, how can we not end up in a civil war?

Mon, 08/22/2011 - 12:34 | 1586373 tradewithdave
tradewithdave's picture

Yes indeed, but don't forget that "one guy with a laptop" is worth two Goldman laptops found in a New York garbage room.

Dave Harrison

Mon, 08/22/2011 - 12:43 | 1586420 EB
EB's picture

LOL...forgot about that one.

Mon, 08/22/2011 - 12:30 | 1586353 gwar5
gwar5's picture

Blackrock is wingman for the squids. They are everywhere too.


Mon, 08/22/2011 - 12:15 | 1586259 Troy Ounce
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Too many economists are munching from the Keynesian trough.  Time to change the daily feed to exactly the same volume. Decrease the size of the trough. Or slaughter a few economists.

Mon, 08/22/2011 - 12:43 | 1586421 wisfool
wisfool's picture

... or just inject them up with the print-more-hormone shot to fatten them up a little more for the butcher.

Mon, 08/22/2011 - 11:45 | 1586143 Oh regional Indian
Oh regional Indian's picture

Is this not the only question that Professor Paul needs to ask out aloud in the house:

Who Owns the Federal Reserve? Look at the names on that list, with our own poison water selling Indra Nooooooo nooooooo noooooo yi in the mix. I'm sure the corssover with Bilderberg/CFR/Trilateralists must be epic.

Tell the big lie long enough seems to have worked very well for the FED.

Vivek (ORI)


Mon, 08/22/2011 - 11:45 | 1586139 Burticus
Burticus's picture

<----- Hang 'em all

<----- Hang the worst 30,000, put the rest in prison

Disclosure:  Long rope

Mon, 08/22/2011 - 12:42 | 1586411 HellFish
HellFish's picture

Agreed.  But I do have a fantasy that these higher level folks get pardoned and sent into servitude.  Let them clean public toilets for the rest of their miserable lives 12 hours a day.

Mon, 08/22/2011 - 13:37 | 1586628 Larry Darrell
Larry Darrell's picture

They are criminals at heart.

If you put them in charge of cleaning highway rest stops, it would only take 2 days for the following:

1)  No toilet paper, hand soap, paper towels, etc to be found.  All taken home by the staff for personal use

2)  Professional prostitution rings with trucker "lot lizards" miracurously upgraded

3)  Every semi which stops would be looted

4)  Highway patrolmen put on the kickback list.


Etc, etc. etc. 

This is who they are and what they do.  Best to just hang em high and be done with it.

Mon, 08/22/2011 - 11:31 | 1586069 HCSKnight
HCSKnight's picture

The Information Super-Highway is backfiring on the wealthy. Given the disposal of Christian morality, I think the Wall Street saying of "blood in the streets" will come to be a reality Wall Street thought was a relic of the French Revolution......

The tragic effects of the evil of abortion on demographics is the fruit of fundamental moral choices by a materialism focused West.

Mon, 08/22/2011 - 11:43 | 1586133 DOT
DOT's picture

" Christian morality" is an oxymoron.

Maybe there exists Christian feudalism/fundamentalism, and as the MSM reminds occasionally, Islam has its prefered form  the Califate.

Cover and absolution always available to the PTB.

Mon, 08/22/2011 - 12:35 | 1586378 gwar5
gwar5's picture

For the longest time (hundreds of years), it was a well understood capital offense for bankers to debase the currency. It actually worked pretty well as a deterrent. 



Mon, 08/22/2011 - 11:29 | 1586062 ReactionToClose...
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had forgotten the Board  composition of NY Fed ..... we are doomed .....

Mon, 08/22/2011 - 11:13 | 1585975 Downtoolong
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You hold all this up against Black Rock’s shitty performance investing the old fashioned way (like we all have to do it) in BAC stock and quickly realize that not one of these glorious TBTF institutions could survive on its own without insider trading, rigged deals, and an endless stream of government subsidy in one form or another.

Mon, 08/22/2011 - 11:41 | 1586122 Rick64
Rick64's picture

+1000  How do you lose with all those advantages and yet we have to bail them out.

Mon, 08/22/2011 - 11:08 | 1585940 Careless Whisper
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FRBNY is a private corporation...

say what?

Mon, 08/22/2011 - 11:29 | 1586064 Sgt.Sausage
Sgt.Sausage's picture

Actually, he's not wrong.

But he ain't exactly right either.

The Federal Reserve (and it's various banks - including NY) have components that are both privately owned, and parts that are government run. It's a unique mixture of the two.

Educate yourself:



Mon, 08/22/2011 - 12:51 | 1586452 Kayman
Kayman's picture

both privately owned, and parts that are government run

Private Criminals take the profits and losses are dumped on the Public.

Mon, 08/22/2011 - 12:30 | 1586358 EB
EB's picture

I merely quoted the GAO there.  But then again, they've been light on truth recently.

Mon, 08/22/2011 - 17:04 | 1587628 Lazlo Toth
Lazlo Toth's picture

You are not wrong. The answer was wrong. They are PRIVATELY OWNED. Key word owned. Being privately RUN by a part of the Government, doesn't make you Govenment. It actualy makes you more like Boeing.

Continue good sir.


Mon, 08/22/2011 - 17:14 | 1587671 Lazlo Toth
Lazlo Toth's picture

Now where's my 1900 hat?

Mon, 08/22/2011 - 11:39 | 1586109 Careless Whisper
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Sir, thank you sir, but I was being sarcastic, sir.

Here's one for you;


Mon, 08/22/2011 - 15:06 | 1587128 Sgt.Sausage
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Don't call me "Sir", Private --  I work for a living.

Mon, 08/22/2011 - 10:58 | 1585904 ??
??'s picture

Don't be too hard on @Nouriel

But he sure had some harsh tweets this weekend directed towards the Tea Party, anti-Keynesians, anti-Fed crowd.


Mon, 08/22/2011 - 11:12 | 1585967 Herbert_guthrie
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The fact that Nouriel will not admit that fractional reserve banking is nothing more than fraud, confirms that he is one.

Mon, 08/22/2011 - 11:39 | 1586092 akak
akak's picture

Fuck Count Chocula already, and the Bernankster he rode in on.


Nov. 4 {2009} (Bloomberg) -- Nouriel Roubini, the economist who predicted the global economic crisis, said a forecast by investor Jim Rogers that gold will double to at least $2,000 an ounce is “utter nonsense.”

There is no inflation or “near-depression” to drive gold prices that high, Roubini said today at the Inside Commodities Conference in New York. If a severe depression came to pass, with investors buying canned goods and hiding out in log cabins, “maybe you want some gold in that scenario,” Roubini said.

“Maybe it will reach $1,100 or so but $1,500 or $2,000 is nonsense,” Roubini said.

Mon, 08/22/2011 - 19:41 | 1588240 StychoKiller
StychoKiller's picture

Yet, AU is currently trading at $1910/Toz!

Mon, 08/22/2011 - 12:28 | 1586336 Rick64
Rick64's picture

Jim Rogers is solid. No double speak no talking in circles.

Mon, 08/22/2011 - 19:31 | 1588208 Tom of the Missouri
Tom of the Missouri's picture

As a former country  boy and motorcycle rider myself I am biased, but Jimmy Rogers rocks.  I just wished I had followed  his advice and bought more gold and a farm earlier. Per Rogers, I could then have been in line for Jamie Dimon's Maserati.

Mon, 08/22/2011 - 21:24 | 1588530 JW n FL
JW n FL's picture JimRogersChannel's Channel (YouTube)
Mon, 08/22/2011 - 12:01 | 1586205 Smiddywesson
Smiddywesson's picture

Too funny.

Maybe he left out a zero here or there and meant $15,000?  Still seems a bit low to me

Mon, 08/22/2011 - 14:13 | 1586840 TheMerryPrankster
TheMerryPrankster's picture

Isn't it actually referred to as "fictional reserve" banking?

Mon, 08/22/2011 - 10:52 | 1585876 LawsofPhysics
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QE3 will result in the true cost of creating capital out thin air being pushed on to more of the middle class.  Commodities and all physical assets of real value will adjust closer to their inflation-adjust price. I am positioned and hedged accordingly.  Go ahead Ben, I dare you.  Pump my meager equity portfolio or pump my physical and commodities portfolio, personally, I don't care either way.  Selling more paper gold (not physical) for more arable land to expand operations will follow.  bring it.

There is a real cost for creating capital and then mis-allocating it.

Mon, 08/22/2011 - 10:57 | 1585902 SwingForce
SwingForce's picture

Its hard to understand why people don't think STOCKS will be QE3. After all, they are the best inflation hedge (better than gold), they pay CASH DIVDS, when they go up money is created out of "thin air", and best of all- They are PAPER! 

Mon, 08/22/2011 - 12:34 | 1586374 LawsofPhysics
LawsofPhysics's picture

Unfortunately, you ignore the fact that those stocks are paying their dividends in increasingly useless paper.  Besides, the average time a stock is held is less than 10 seconds now.  Again, when you "cash out" do you get the purchasing power back that you put in?  No, more useless paper.  I'll stick with re-investing in my business and employees.  That is a much better infaltion/survival hedge, thanks.  Playing with paper that is gamed is a fools venture, it all burns eventually and besides I actually want to produce things of real value and that takes time and effort.  People forget this.

Mon, 08/22/2011 - 13:06 | 1586516 illyia
illyia's picture

+ 401 K AU

Mon, 08/22/2011 - 10:43 | 1585854 iamse7en
iamse7en's picture

<------Roubini is an idiot.

<------Roubini is a genius.

Mon, 08/22/2011 - 12:16 | 1586265 Herbert_guthrie
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I had to vote genius.

If he is being paid for his "economic knowledge and predictions", that makes him a genius in my book.

No one will pay me for my economic concepts, thus I am an idiot.

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