The $2 Billion UBS Incident: ‘Rogue Trader’ My Ass

20 09 2011

By Matt Taibbi

The only thing that differentiates a “rogue” trader like Barings villain Nick Leeson from a Lloyd Blankfein, Dick Fuld, John Thain, or someone like AIG’s Joe Cassano, is that those other guys are more senior and their lunatic, catastrophic decisions were authorized (and yes, I know that Cassano wasn’t an investment banker, technically – but he was in financial services).

In the financial press you’re called a “rogue trader” if you’re some overperspired 28 year-old newbie who bypasses internal audits and quality control to make a disastrous trade that could sink the company. But if you’re a well-groomed 60 year-old CEO who uses his authority to ignore quality control and internal audits in order to make disastrous trades that could sink the company, you get a bailout, a bonus, and heroic treatment in an Andrew Ross Sorkin book. . .  (more)

http://solari.com/blog/the-2-billion-ubs-incident-rogue-trader-my-ass/

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J P Morgan = Satan

11 04 2011

The (evidentely still free-online ) NY Times has this softie headline:

JPMorgan Accused of Breaking Its Duty to Clients

By LOUISE STORY

In the summer of 2007, as the first tremors of the coming financial crisis were being felt on Wall Street, top executives of JPMorgan Chase were raising red flags about a troubled investment vehicle called Sigma, which was based in London. But the bank chose not to move out $500 million in client assets that it had put into Sigma two months earlier.

Sigma collapsed a year later. Now, new documents unsealed late last month as part of a lawsuit by bank clients against JPMorgan show for the first time just how high the warnings about Sigma went — all the way to the office of the bank’s chief executive, Jamie Dimon.

While the clients lost nearly all their money, JPMorgan collected nearly $1.9 billion from Sigma’s demise, according to the suit. That’s because as Sigma’s troubles worsened, JPMorgan lent the vehicle billions of dollars and received valuable assets in the form of a security deposit.

After Sigma came undone in September 2008, many of those assets ultimately became JPMorgan’s and eventually appreciated in value, giving the bank a large profit, the suit says. . . (blah, blah, blah … greed + Wall St. = greed x 10)

http://www.nytimes.com/2011/04/11/business/economy/11bank.html





Wall St. Ponzi Scheme Set to Implode THIS YEAR

22 02 2011

From Market Watch

Market Crash 2011: It will hit by Christmas

By Paul B. Farrell
Commentary: The S&P 500 is worth only 910. Get out or lose big

SAN LUIS OBISPO, Calif. (MarketWatch) — “Politicians lie. Bankers lie. Yes, they’re liars. But they’re not bad, it’s in their genes, inherited. Their brains are wired that way, warn scientists. Like addicts, they can’t help themselves. They want to sell stuff, get rich.

We want to believe they’re telling us the truth. Silly, huh? Both trapped in this eternal “dance of death” controlled by programs hidden deep in our brains, telling us what to do, telling us to ignore facts to the contrary — till it’s too late, till a new crisis crushes all of us.” . . . (more)

http://www.marketwatch.com/story/market-crash-2011-it-will-hit-by-christmas-2011-02-22

 

From Aljazeera –

US economics: One big Ponzi scheme

By Danny Schechter

While Bernie Madoff languishes in jail, bankers continue to profit as the poor lose their homes and hope.

“Thank you, Bernie, for breaking your silence – even if you are still clinging to that cover-up mode you adopted since you took the entirety of the blame for your crimes.

What is clear is that ripping off the rich is punished far more severely than ripping off the poor. The lengthy sentence you were given spared countless other greedsters and goniffs from facing the music – what music there is.

In an interview – with a reporter from The New York Times who is writing a book to cash in on a man who has already cashed out – we learn, in the vaguest terms, that Mr M believes the banks he did his crooked business with “should have known” his figures did not figure. Keeping with the deceit that has served him well over the years, he names no names.

That said, how right he may be. There were many who should have known and done something about it. The Securities and Exchange Commission (SEC) and other regulators for one. Perhaps The New York Times for another. Remember, it was Madoff’s confession to his sons that started him on his way to his new 12′ x 12′ home from home – in a federal correctional institute, where he may dream of his seized penthouse, homes and yachts – rather than any press expose.

For years, he went undetected by business journalists, who knew – or should have known – what he was up to. There are even questions about the speed with which he was sentenced, preventing him from being tried – a process which, through diligent cross-examination, would have brought us more information on the details of his dirty deals.” . . . (more)
http://english.aljazeera.net/indepth/opinion/2011/02/2011218151257526294.html

 





H1N1 threat a bunch of hooey

4 06 2010

Report: WHO overstated H1N1 threat

A joint report into the handling of the H1N1 outbreak has found that some scientists who advised governments to stockpile drugs, had previously been on the payroll of big drug companies.

The report, published in the British Medical Journal, found World Health Organisation (WHO) guidelines on the use of medicine to treat the virus were prepared by experts who had received consulting fees from the top two manufacturers of the drugs – Roche and GlaxoSmithKline….(more)

http://english.aljazeera.net/news/americas/2010/06/20106485035915742.html

see also LegitGov.org’s FLU ODDITIES page – http://www.legitgov.org/flu_oddities.html