Dear Jamie Dimon - Is The Swiss National Bank A Fraud?

Tyler Durden's picture

The price of shares in The Swiss National Bank is up 11 days in a row, soaring 150% in the last two months.


That sounds like a 'tulip' bubble-like 'fraud'...



The SNB is up over 120% in Q3 so far - more than double 'bubble' Bitcoin...


Let's check with the markets ultimate arbiter of what's fraud and what's real - JPMorgan CEO Jamie Dimon:

  • It's a bubble (because it has exploded vertically in the last few months) - check
  • It's a fraud, there's nothing behind it - check
  • It's a business where people can invent a currency out of thin air - check
  • People who buy it are "stupid" - check
  • "Shocked that anyone can't see it for what it is" - check

In fact, The SNB farce is now hitting the mainstream media... WSJ notes The SNB is a rarity among rarities. Only a handful of central banks - including Japan and Belgium as well as the Swiss - have private shareholders.

...those looking for a good reason behind the rally, or trying to judge whether the stock is fairly valued, will likely be disappointed.

While the SNB does release monthly data on its balance sheet and quarterly profit, it doesn’t issue the reams of financial metrics that most listed companies do. The central bank also isn’t covered by analysts in the same way as commercial banks or companies.

UBS economist Alessandro Bee, who covers the SNB as a central bank and not as a stock, said he sees no particular reason why the stock rose.

There are only 100,000 shares outstanding and the stock is thinly traded, which can exaggerate price moves. On an average day, about 174 SNB shares are traded, compared with nearly 12 million for Credit Suisse AG.

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So Jamie - is The Swiss National Bank a fraud?

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Mementoil's picture

The answer is YES, The SNB is a fraud as well.
All national banks are frauds.

VD's picture

three frauds (jpm, snb, btc) dont make a right.


four frauds ("markets", jpm, snb, btc) dont make a right.


and so on and so forth...

Government needs you to pay taxes's picture

Banksters cover for each other.  NO FRAUD HERE.

TheSilentMajority's picture

The SNB actively manipulates the US stawk “market” using digital money that it prints from thin air.

Isn't it time for the SEC or the FED or USA Congress to put and end to this ongoing fraud being commited by a foreign central bank?

Government needs you to pay taxes's picture

How do you think Congressional personal investment accounts consistently outperform in line with a top-decile hedge fund?  

NaiLib's picture

Maybe a sign of the inflation that is coming...

doctor10's picture

there's no inflation coming. Among many other reasons, most central banks only pay interest rates in tenths of a percentage. They're not about to go to 7-8% and fund a bunch of pensions they've been trying to vacuum up with
negative rates

Mementoil's picture

The fact that national banks can't raise rates doesn't mean there will be no inflation.
There will be inflation, and they will be powerless to stop it.

equity_momo's picture

Only a handful of central banks - including Japan and Belgium as well as the Swiss - have private shareholders.


Wrong. They all have private shareholders. Do your due dilligence and understand who OWNS your money supply.

Ghordius's picture

yes, do your due diligence and you'll find out that some central banks are set up as "private shareholders" NBs...

... but with the government and/or the government-owned banks as "private shareholder" majority (the SNB is so)

meanwhile, some are 100% owned by the state

the People's Bank of China, for example. or the Bank of England, which was taken away from the Rothschild's private shareholder (in a process called Nationalization, btw)

I think for all purposes the Bank of England ought to be the best example for how wrong your "They all have private shareholders", but the very "contains Rothschild history" thing might distract. how about the Russian national bank?

the FED is not super-special, you know? nor is it the standard of central banking, worldwide. the USD... now, that is something completely different

the USD is special, among currencies, because it is the current Global Reserve Currency. see ZH's recurrent graph of the history of the Global Reserve Currencies

Mementoil's picture

It doesn't really matter who owns national banks.
The result is the same - the inevitable hyperinflation of all fiat currencies.

Ghordius's picture


I am hovering between making a comment about the SNB's stocks or not since the whole series of ZH articles started

usually, it's about the pesky details of a stock which I would dub "an insider's game" of Swiss State Banks, all legal, then it's covered by a special Swiss National Bank Law

but this is ZH. oh, and ZH is kind of "letting me down", on the SNB

because... of gold

specifically, 1'000 tons of gold, property of the SNB (70% in the SNB's vaults in Switzerland)

(that's twice what the ECB puts on it's very first asset chapter of it's balance sheet, just to make a comparison)

no, there is no reason why this stock rose now. yes, that stock has a history, since 1907, or rising a notch or two, periodically. no, if you are not a Swiss State Bank, you are not an insider in this "game"... by law. so, in a way, for you and me it's... a tulip, of sorts

a kind of "system-guaranteed-but-not-explicitly" tulip

conclusion: you can't compare this stock to anything. it's special. trust the Swiss to know how to make "special", it's something they really know how to do

scintillator9's picture

At times, I have wondered how much of that AU was never reclaimed due to acute lead poisoning from the owners during various European and other world conflicts.


wisehiney's picture

Nothing is as it seems.

No comparison to historical norms.

But, I would like to ski the Swiss Alps.


JailBanksters's picture

Can the Swiss Bank create as many Federal Reserve dollar equivelants as they like ?

No, so they're a Fraud.

katchum's picture

Where's the SEC to suspend the SNB?

ConfederateH's picture

Of course the SNB is a fraud.  When Hildebrand ended up at Blackstone after his insider trading it was pretty clear.  But with SNB meddling directly in the gold initiative should have removed any remaining doubt.  The gold initiative was when the Swiss got to vote on whether to force the SNB to keep, as I recall, 20% of its assets in gold.  This would have forced the SNB to purchase ~$50B in gold in the last few years and it would have broken the IMF/Onebank efforts to demonitize gold.

Instead the SNB intervened heavily and the initiative didn't pass, and the SNB has become a hedge fund, like the Fed, ECB and all the other members of the cabal.

Ghordius's picture

interesting opinion

yes, the SNB was specifically asked to comment on a referendum's campaign... about the very SNB

by the opponents of this initiative. which did not pass because the referendum went the other way

you seem to think that the SNB should have kept silent. and you seem to think that because it gave it's opinion, that swayed the Swiss electorate

how do people do referenda, in your country? with one side forbidden to... talk? or to consult the objects of the proposals?

TheSilentMajority's picture

The SNB actively manipulates the US stawk “market” using digital money that it prints from thin air.

Isn't it time for the SEC or the FED or USA Congress to put and end to this ongoing fraud being commited by a foreign central bank?

VangelV's picture

"The SNB actively manipulates the US stawk “market” using digital money that it prints from thin air."

As the Fed does when it prints money to buy mortgage-backed securities from the banks and Greek bonds while the ECB buys American bonds to prop up the American debt market.  Digital money is no less fraudulent than paper money that is issued out of thin air.  All fiat money is a fraud.  But it will continue to be treated as money until the complexity overwhelms the system and has to reset at a totally different level.  

Cashboy's picture

Imagine being able to print money, exchange it for US dollars and buy what ever you want.

That is the Swiss National Bank.

CatsPaw's picture

Why would you ask Jamie Lannister about the Swiss bank? The Iron bank maybe.

Just Take It All's picture

Just imagine if it were the Russians printing money to buy AAPL.  it would draw scrutiny to the whole central bank scam and finally bring down our fake markets.

VangelV's picture

Of course, it is a fraud.  The SNB can create purchasing power out of thin air by issuing credit just like BitCoin can create purchasing power out of thin air by calling the process that produces by 'mining' what the unwashed consider 'coins' in server farms.  

bshirley1968's picture

Why hell yes it's a fraud!   What kind of dumbass question is that? 

Is your logic that as long as you can find a bigger fraud, then your fraud is not so bad?

Maybe that's why DC is running the Kim Jon Un play so much.  That way Trump doesn't look so bad.  Funny.

Sanity Bear's picture

Of course it's a fraud. It's right there in the name "National Bank". Technically that's TWO frauds.

skm343's picture

in a word.....yes

skm343's picture

in a word.....yes