Category Archives: Financial Watch

Moody’s downgrades Stanley, Sachs, Morgan and Bank of New York Mellon

We believe that US bank regulators have made substantive progress in establishing a credible framework to resolve a large, failing bank,” said Robert Young, the Moody’s Managing Director. “Rather than relying on public funds to bail-out one of these institutions, we expect that bank holding company’s creditors will be bailed-in and thereby shoulder much of the burden to help recapitalize a failing bank.”

EFF: New York Times Hasn’t Read TPP But Endorses It

 

You and I can’t read the text of  the proposed Trans-Pacific Partnership agreement, and presumably neither have the editors of The Times. But that is not stopping them from endorsing it. This reminds me of how some legislators are endorsing NSA spying tactics without knowing what those tactics are.

Via EFF.org: The New York Times’ editorial board has made a disappointing endorsement of the Trans-Pacific Partnership (TPP), even as the actual text of the agreement remains secret. That raises two distressing possibilities: either in an act of extraordinary subservience, the Times has endorsed an agreement that neither the public nor its editors have the ability to read. Or, in an act of extraordinary cowardice, it has obtained a copy of the secret text and hasn’t yet fulfilled its duty to the public interest to publish it.

Read original article at www.eff.org

H.R. 992 Guts Dodd Frank

The US House is attempting to sell out Main St. yet again, in a bipartisan bow down to their masters on Wall Street.

Via Represent.US:

The U.S. House just passed a bill called H.R. 992 — the Swaps Regulatory Improvement Act — that was literally written by mega-bank lobbyists. It repeals the laws passed in 2010 to prevent another meltdown like the one that crashed our economy in 2008. The repeal was cosponsored by a former Goldman Sachs executive and passed with bipartisan support from some of the House’s largest recipients of Wall Street cash.

How the NYPD is in Bed with JP Morgan

 

NYPDbankster

It’s one thing to target the poor while protecting the very rich. We already know that’s been the central tenet of Mayor Bloomberg’s leadership strategy. That said, it is quite another to have the NYPD work side by side with JP Morgan employees (a company facing eight ongoing criminal/civil investigations) as some sort of law enforcement strategy. Yet, that is precisely what it has been doing.

Chase Isn’t the Only Bank in Trouble

As one friend of mine put it, “Whatever those morons put aside for settlements, they’d better double it.”

Firstly, there’s a huge mess involving possible manipulation of the world currency markets. This scandal is already drawing comparisons to the last biggest-financial-scandal-in-history (the Financial Times wondered about a “repeat Libor scandal”), the manipulation of interest rates via the gaming of the London Interbank Offered Rate, or Libor. The foreign exchange or FX market is the largest financial market in the world, with a daily trading volume of nearly $5 trillion.

A ruling against the banks in this case, which goes to trial in April of next year in England, could have serious international ramifications. Suddenly, cities like Philadelphia and Houston, or financial companies like Charles Schwab, or a gazillion other buyers of Libor-based financial products might be able to walk away from their Libor-based contracts. Basically, every customer who’s ever been sold a rotten swap product by a major financial company might now be able to get up from the table, extend two middle fingers squarely in the direction of Wall Street, and simply walk away from the deals.

Nobody is mincing words about what that might mean globally. From a Reuters article on the Guardian Care case:

“To unwind all Libor-linked derivative contracts would be financial Armageddon,” said Abhishek Sachdev, managing director of Vedanta Hedging, which advises companies on interest rate hedging products.

 

Click here to view original web page at www.rollingstone.com

Hillary Clinton’s Lucrative Goldman Sachs Speaking Gigs

Hillary Clinton spoke at two separate Goldman Sachs events on the evenings of Thursday, October 24 and Tuesday, October 29. As both Politico and the New York Times report, Clinton’s fee is about $200,000 per speech, meaning she likely netted around $400,000 for her paid gigs at Goldman over the course of six days. Last […]