The Triumvirate of Wall Street/ the Fed/ and US Politicians is Crumbling Pt 2

Phoenix Capital Research's picture

Months ago, I warned that a tsunami of litigation was going to be coming to Wall Street and Washington. At the time I noted that Goldman Sachs CEO Lloyd Blankfein had recently hired a mega-defense attorney, as well as the fact that the Fed had gone into damage control mode (staging town-hall meetings, opening itself up to Q& A sessions, defending its actions to Congress, etc.).



I also noted in a recent article that the triumvirate of Wall Street/ the Fed/ and US Politicians would be crumbling in the future as these three groups tried to shift the blame for what happened during 2008 from one to another in an attempt to divert public outrage.


Indeed, the only reason this process hasn’t already reached a fever pitch is because the benefits of not talking for most of those who were in on the corruption still outweigh the consequences of keeping their mouths shut.


This process has already changed for some players in the financial game: we have recently seen some minor players get taken down, but those have primarily been insider trading cases involving expert networks, hedge funds, and corporate directors.


The main issue or question is: when do we start seeing the real power players at the heart of the Financial Crisis come under scrutiny (what Blankfein is clearly anticipating by hiring a defense lawyer).


By the look of things, it’s coming sooner rather than later:


            Lehman Brothers Subpoenas Geithner In J.P. Morgan Fight


Lehman Brothers Holdings Inc. (LEHMQ) and its creditors late Thursday said they want to subpoena Treasury Secretary Timothy Geithner to question him under oath over allegations J.P. Morgan Chase & Co., (JPM) illegally siphoned billions of dollars from the collapsing investment bank in the days before it filed for the largest bankruptcy in U.S. history.


In a filing accompanying Lehman's filing, made in U.S. District Court in Washington, Lehman's official committee of unsecured creditors said Geithner has thus far refused to comply with an Aug. 9, 2011, subpoena, and it wants a court to force Geithner to give a deposition by a March 16 deadline.


"Despite being a crucial fact witness on these issues, Secretary Geithner has refused to appear at a deposition in accordance with a valid subpoena issued by the Committee," the committee's lawyers said in the filing. Geithner was president of the Federal Reserve Bank of New York at the time of the Lehman collapse.


This could represent a potential sea change in the legal environment in the US. It’s clear Geithner thought he could get out of this mess by virtue of the fact he’s among the highest level of the power elite. However, the announcement that he doesn’t expect Obama to keep him as Treasury Secretary may have changed this.


For one thing, it’s clear that Obama is trying to distance himself from Geithner for political reasons (more than one GOP candidate has stated Geithner should be fired). The real issue is whether it’s been decided that Geithner will be the one who gets the albatross hung around his neck.


It’s too early to know, but one thing is for certain, the litigation is beginning to shift from minor players to major players at the core of the Financial Crisis. Investors take note, this is a major shift and needs to be monitored as it will have major implications for market dynamics going forward.


Remember, the markets have been on life support from the Fed and Treasury ever since 2008 hit. If those behind that life support begin facing major legal trouble the aggressive “we will save the day” attitudes of the Fed et al may change.


And when this happens the life support will get pulled.


Make no mistake, we are heading into a Crisis that will make 2008 look like a joke. The money for all of these various programs (both in Europe and the US) simply isn’t there. So this time around we’re going to see stock crashes AS WELL as civil unrest, food shortages, and the like.


If you’ve yet to take steps to prepare for this, I can show you how: my Surviving a Crisis Four Times Worse Than 2008 report is chock full of information on how to not only survive but thrive during the months to come.


Within its nine pages I explain precisely how the Second Round of the Crisis will unfold, where it will hit hardest, and the best means of profiting from it (the very investments my clients used to make triple digit returns in 2008).


Best of all, this report is 100% FREE. To pick up your copy today simply go to: and click on the OUR FREE REPORTS tab.


Good Investing!


Graham Summers


PS. We also feature four other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s my proprietary Crash Indicator which has caught every crash in the last 25 years, or how to stockpile food (where to get it, what to buy, and how to store it) our reports cover this information in great detail.


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winterwin's picture

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rsnoble's picture

For some reason that makes more sense this am when im sober. LOL.

scrappycoco's picture

Financial Tyranny - Defeating the Greatest Cover Up of All Time

This is a MUST READ BUT READ THE ENTIRE ARTICLE, otherwise you will not understand.

Here is the lawsuit which will bring down the banking cartels.

The complaint is for Three Trillion Dollars and has already been filed in New York in Dec 2011.


Sandmann's picture

The US needs  Trust BUsters to bring back competitive markets and erode economic rent

AldousHuxley's picture

let them eat their own kind.

ebworthen's picture

Timmy was appointed Secretary of the Treasury after cheating on his taxes to the tune of the median U.S. annual salary.

How a crook like that can be appointed and then be expected to tell the truth under oath I have no clue.

Too bad we don't have magnetic tape anymore, as digital recordings and records are so much easier to alter or dispense with.

We can only hope and pray for justice, like the serfs and peasants of 1153 A.D.

covert's picture

fall of liberty and the future is coming.


rsnoble's picture

"Indeed, the only reason this process hasn’t already reached a fever pitch is because the benefits of not talking for most of those who were in on the corruption still outweigh the consequences of keeping their mouths shut."


"not talking" "consequences of keeping their mouths shut"

Someone please explain the difference to me.


Imminent Crucible's picture

It's not complicated. The benefits of not talking still outweigh the costs of not talking.

Milestones's picture

Proof yourself!           Milestones

Haddock's picture

Hey, Phoenix Capital - you're getting closer...

Try a piece that incorporates silver pumping, gun reviews and Ron Paul, and you may even get a subscriber!

Widowmaker's picture

"It’s too early to know, but one thing is for certain, the litigation is beginning to shift from minor players to major players at the core of the Financial Crisis."

!! BULLLLLL -- SHIT !!  Not one fucking thing has changed, not one charge filed, nothing but inflation destroying savers for as far as the eye can see.


Stuck on Zero's picture

Revolutions don't come about because the people at the bottom are dissatisfied.  They start with a falling out at the top.

steve from virginia's picture


Nothing from Rosenberg lately (maybe he's dead).

tsuki's picture

When Larry picked up his suitcase and took the bus outta town, I figured Geithner would be the goat.

mc_LDN's picture

Last trick in the book is always - war. If they go defcon 5 no-one will notice anything, Distraction here - nothing to see - move along please.

StychoKiller's picture

Defcon 5 - Business as usual

Defcon 4 - Yo, heads up!

Defcon 3 - Gas up the planes!

Defcon 2 - Pilots, strap yourselves in!

Defcon 1 - Missiles in the air (INCOMING!!!)

falun bong's picture

The "Phoenix Capital" schtick is getting really tiresome. Reggie usually digs up something new and interesting, even if you can't stand his back-patting all the time. I completely wasted .32 kilojoules of finger energy clicking the mouse to see this article, then .218 kilojoules of eye-energy and .17 kilojoules of firing brain neurons reading it...can I get a refund?

The Swedish Chef's picture

Next time, don´t click the paid ad...

falak pema's picture

wow, this guy has gone revolutionary!

NotApplicable's picture

By the time any of these cases see any sembelence of justice, it will be far too late to matter.

To me, it sounds just like the shocking headlines on 9/10/2001.