Tag Archives: Economic Meltdown

LIBOR Scandal: Arrests Imminent

From Zero Hedge:

For over four years, virtually everyone in the finance industry knew that Libor was manipulated. The stench of manipulation rose to the very top and thanks to a document release of formerly confidential information, we now know for a fact that even the Fed was in on it – recall that as part of production, the Fed provided a transcript of an April 2008 phone call between a Barclays trader in New York and Fed official Fabiola Ravazzolo, in which the unidentified trader said: “So, we know that we’re not posting um, an honest LIBOR.” And yet without any tangible, black on white evidence, there was no catalyst for pursuing legal action. That all changed when in a desperate attempt to protect its ass, Barclays decided to rat out everyone by settling with regulators, and “turn state” producing e-mail based evidence, most of it quite visual (after all what is more tangible to the common man that evil bankers sipping on Bollinger), which essentially threw years of quiet cartel cooperation under the bus. As a result, regulators, enforcers, and legal authorities, many of whom were in on this manipulation from the beginning, no longer had an excuse to not pursue civil and criminal charges against perpetrators, who until recently were footing the tabs at various gentlemen’s venues and ultra expensive restaurants. And while the imminent waterfall of civil prosecution will force bank litigation reserves to go through the roof, here comes, with a very long delay, the criminal charges. As Reuters reports, here come the arrests.

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Barclay’s Chairman To Resign

From Zero Hedge:

And a few days after the first public exposure of Lie-borgate, the first victim has been claimed: as numerous sources report, Barclays’ Chairman Marcus Agius will step down immediately.

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Debt Relief Most Effective Technique In Combating Foreclosures

NEW YORK (CNNMoney) — Reducing the amount struggling homeowners owe on their mortgages is proving to be a more effective way to prevent foreclosures than other methods, such as reducing interest rates or postponing payments, a new report finds.

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Debt Relief  is one of the tenets of a Framework for Peace as outlined in the book A World Without War.

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Matt Taibbi: America’s Biggest Banks Use Mafia Techniques

Someday, it will go down in history as the first trial of the modern American mafia. Of course, you won’t hear the recent financial corruption case, United States of America v. Carollo, Goldberg and Grimm, called anything like that. If you heard about it at all, you’re probably either in the municipal bond business or married to an antitrust lawyer. Even then, all you probably heard was that a threesome of bit players on Wall Street got convicted of obscure antitrust violations in one of the most inscrutable, jargon-packed legal snoozefests since the government’s massive case against Microsoft in the Nineties – not exactly the thrilling courtroom drama offered by the famed trials of old-school mobsters like Al Capone or Anthony “Tony Ducks” Corallo.

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Martenson: Repeat of 2008 crisis coming?

Financial commentator Chris Martenson details why he believes we are about to enter another 2008-style financial crisis.

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JP Morgan – could it get worse?

In the wake of JP Morgan’s $2 billion (and counting) loss this quarter, Robert Reich makes the case for breaking up Big Banks and resurrecting the Glass-Steagall act to separate commercial and investment banking. According to MoneyNews, while the public face regarding the situation blames a ‘rouge trader,’ in reality this is not the case. 

Believe it or not, some considered the JP Morgan losses ‘small’ and therefore not worth disclosing in such a public fashion. As reported in Zero Hedge, JP Morgan’s CEO Jamie Dimon responded this way to the question about ‘why disclose this info now?’:

“It could get worse, and it’s going to go on for a little bit unfortunately,” Dimon replied.

Get informed. Be empowered. Stay compassionate.

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