10-01-03 Calling for reconsideration of international credit policies towards the United States government

   


Date: Sun, 3 Jan 2010 12:42:31 -0500 (EST)
From: jz
To: "Ambassador of the People's Republic of China,Members of the Basel Accords Committee,and Bank of International Settlements (BIS)

Subject: Please reconsider credit policies towards US govenment in view of
 continued recklessness.

January 3, 2010

Dear Ambassador of the People's Republic of China, Members of the Basel Accords Committee, and Bank of International Settlements (BIS):

Copied below is yet another example of the ongoing failure of US banking and financial markets regulators, and the ongoing blatant violations of the law by US financial institutions. Any statements made by United States government officers in testimonies before United States Congress of "shoring up" the United States regulatory system cannot be reasonably taken at face value.  One must accept reality for what it is: The administration of President Obama and United States Congress lost control of United States financial institutions and United States banking and financial market regulatory agencies, which are flaunting their disregard for United States laws, international banking accords, and international credit agreements.

The United States government can no longer plausibly be deemed as either a good-faith party to the Basel Accords or a good-faith borrower in international credit markets. 

Reckless conduct by United States government agencies exposes United States and world financial markets to unknown risks, and those holding reserves in US denominations - to imminent losses on a large scale.  Needless to say, the United States treasury and United States economy are in no position to assume such risks, raising the odds of an imminent catastrophic failure.  

With the dawn of a new decade, it appears that the only measure that would possibly bring the United States government into treating its own citizens and the rest of the world with some degree of integrity would be tightening of credit policies. United States government may argue that such move by lenders would result in immediate untowardly effects.  However, continued flow of credit under current terms must be considered unreasonable in view of the increased and unpredictable risks to lenders. Moreover, continued flow of credit under current terms must be deemed as harmful - since it is seen by United States financial institutions and regulatory agencies as a license to continue their ongoing dishonest, deceptive, reckless conduct. 

An alternative, proactive approach, which should also be considered, would directly link credit polices to demonstrable performance by United States government towards establishing publicly accountable validation (certified functional logic verification) of large database management systems at public corporations, at financial institutions, at regulatory agencies, at the United States courts and in correctional facilities. It was the introduction of fraudulent database management systems at all levels over the past three decades, which lends the United States ungovernable today.  

Additionally, the Swiss government should be urged to pass and enforce laws, which would prohibit senior United States government officials (including, but not limited to United States judges) and officers and directors of publicly traded United States corporations from making deposits into numbered Swiss bank accounts while in office. Efforts should be made to keep the personal fortunes of such persons tied to the fate of the United States dollar.

Such actions by lenders would not only stabilize markets and dramatically reduce operational risks, but would also restore the Human, Constitutional, and Civil Rights of all who reside in the United States.   

Truly,

Joseph Zernik
Los Angeles County, California

http://inproperinla.blogspot.com/
Patriotic pics of sharon stone, beyonce knowles, and charlize theron,
To be added soon- deep house music! 

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At 06:44 03/01/2010, Yolanda Gibson-Michaels wrote:

RE: Re: Urgent Read: SEC Mary Schapiro call to investigate FDIC Inside Trading by Tyler Durden

Mary Schapiro Must Immediately Investigate The FDIC's Confidential Information Leak In Another Blatant Insider Trading Case, Then Resign

Submitted by Tyler Durden on 12/04/2009 17:39 -0800

• Federal Deposit Insurance Corporation
• FINRA
• Fund Flows
• Goldman Sachs
• Insider Trading
• Mary Schapiro
• non-performing loans
• Real estate
• Sheila Bair

The degree of insider trading in this market is getting ridiculous. And the strangest thing is those who are executing on blatantly obvious material, non-public insider information, are no longer concerned the least bit about getting caught as they realize that the "mighty" SEC will do nothing against them, courtesy of the example the SEC has set by finding absolutely nobody "responsible" (except, of course, the regulator's own future employers who thus get immunity from prosecution) for the greatest market heist in history in which over $5 trillion has been transferred from the middle class to the Wall Street oligarchy (future providers of paychecks for SEC staffers).

Today's grotesque example of the SEC's futility to act as even a modest deterrent to insider trading activity: New York Community Bancorp (which, just so happens, is a $602 million recipient of TLGP debt), whose stock surged in the final minutes of trading for reasons (then) unknown. As reader QevolveQ pointed out at 5:30 pm, the activity in both the stock and the calls of the company was many standard deviations away from average and raised major red flags. Those questions were quickly put to rest when it became known at 6:33 pm that NYB would in fact receive FDIC subsidies to acquire newly failed AmTrust Bank in a transaction that would be "immediately accretive to earnings." And how wouldn't it be:

Under the terms of the agreement, the Community Bank did not acquire any of AmTrust Bank’s  non-performing loans serviced by AmTrust Bank or any other real estate owned; construction, land, or development loans; private-label securities, or mortgage servicing rights, nor did it acquire any of the assets or assume any of the obligations of the holding company.

No, those would conveniently be funded by Ms. Bair herself. The cost to the FDIC, and US taxpayers, to make NYB a richer enterprise: $2 billion. This is value that will go straight to the bank's bottom line. As a result of this middle-class subsidy it was a certainty that its shares would spike.
The smoking gun here comes straight from a quick observation of NYB's intraday P/V chart: the jump at 3:24pm on statistically significant volume is a clear signal that someone was fully aware of the soon to be announced transaction:

Furthermore, as QeQ highlights, "8,933 of the Dec 12 calls traded vs. 2,244 OI, finishing +300% on the day." A very solid return for a few hours of trading. The block trades are visible below: one set of 2,500 Dec $12 calls bought at $0.20, followed promptly by two more 2,500 blocks around $0.25. With the stock poised to open much higher than its closing price, someone is sure to make a killing.

It is practically certain that the NYB stock and option transactions came courtesy of a insider tip. And as NYB is both a ward of the state, courtesy of its TLGP umbilical cord, and as the bank would soon become $2 billion richer as a result of some more middle class-to-Wall Street fund flows, it is very likely that the FDIC itself is the source of such leak. We truly hope that one of D.C.'s most ineffective and useless females (if grossly, grossly overpaid for her "work" in 2008) will analyze whether the agency headed by another such female has been responsible for yet more illegal insider trading activity. That the government is only capable of promoting unpunished criminal activity would not surprise anyone at this point. And as this will be one of those cases when everything is handed to the SEC on a silver platter, we don't doubt that some minor scapegoat will be put away to make it seem like the most worthless organization in the world earns its $1 billion annual budget fair and square.

What is chilling is the complete disdain that insider traders now flaunt when it comes to fear of retribution by the "regulators." And when Ms. Mary "$3.3 Million" Schapiro is done catching any and all masterminds behind this dastardly deed, we would all be very grateful if she could leave her keys, her chauffeur, and her masseuse as she packs her banker box full of Wall Street indulgences on the way out of public office once and for all -

Ms. Schapiro, the public does not want you betraying its trust any longer. Now please go work for Goldman Sachs where your continued betrayal of U.S. interests will be welcome and compensated much better than the meager $3.3 million you made at Finra. The sooner you get into a job that requires efforts more consummate with your diminished capacity, the sooner you can continue counting the $5-$25 million in cash payouts you slurped up from FINRA's defined benefit plans.