Document accidentally released by lawyer shows naked short-selling by investment banks
Matt Taibbi is right that god rarely shines down on us in these matters. I wonder how that lawyer is doing right now? Has he resigned or is he sprucing up his resume?
I am not even going to try to give too many remarks on this. Mr. Taibbi and the Economist has done excellent work in this regard and I will instead link to each article respectably. If you want to read the actual release yourself, click here, pages 14-20 are what both articles are referring too.
Bottom-line is that naked-short selling is illegal, has to stop now and the people who have done this need to be put into jail, this will teach them and others a lesson about the rule of law and why we have them. Making bets on declining stocks is fine but you need to first secure them, creating them out of thin area outside of the normal supply and demand model is plain old fraud, pure and simple.
Rolling Stone’s Article (Matt Taibbi)
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Supreme Court “Healthcare” argument: single-payer is on it way
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I am listening to the audio transcript and you know what? I keep hearing the judges challenges, it seems to be hinting on if the Congress and determine if markets can exist. I have heard 3 judge pointing to this item. At the same time, they hint that is a service everyone is going to need. Put that together, they could be saying if you want to give universal health care, then you have to take that market over and provide it. This sounds like a public single-payer system where we are compelled to join like Social Security. This could be a turn of events.
Live Supreme Court Audio Stream Archive
Your thoughts?
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Barret Capital Management accused of using client funds for its own purposes
With the ongoing lack of answers and clients funds in the MF Global fraud, we have another alleged instance of a trusted financial fiduciary using their clients money to trade on the companies book for internal profits. The investors at Barret better put pressure on the regulators to prosecute this as hard as possible and not let them get off the hook by admitting no wrong-doing. It was a joke watching the C-span hearings of former MF Global boss Jon Corzine. He sat up their and told people about his intentions, in my opinion, that does not matter.
You should not be able to use your “intentions” as a defense. We HOPE, your intentions were not to mis-use a clients trust in you and your company. The facts are the facts and if we want a healthy and functioning banking, capital markets and regulatory system, we need to take a very hardline approach on this type of behavior, too many people are getting off with too little admitted guilt. Why are the people who are their to protect us, so capture that they can’t seem to do their job effectively?
Winnipeg Free Press – One of Canada’s investment regulators has accused Barret Capital Management, a firm specialized in futures and options on metals and other exchange-traded commodities, of using client money for its own purposes.
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Federal reserve finally reveals secret bailout loan details per judgement
Remember, nothing is for free and this disclosure is not an exception. It has been 2 years since this legal action start to get the secret bank bailout loans that were made during the financial crisis of 2008-present. The U.S. Federal Reserve released the details per the judgment of the courts that has to do with the Bloomberg L.P lawsuit. But now we have a law in place that starting in 2012, the Fed will be required to reveal these type of details in the future but with a mandatory 2-month delay.
What this means is now we have codified in law a delay on secret loans as public-private partnership makes on behalf of the U.S. Congress. Who I add are not elected so we do not really know at all times which mandate they are following, full employment (pro-banks) or stable prices (pro-savers & investors). We have basically codified secrecy in this part of our market system. That gives great advantage to the organizations that are receiving this type of public support and harmful to anyone who competes with these institutions and does not get the same favor (ie: WaMu, Lehman, Bear Sterns, etc.). Not to say those companies I mentioned did not operate is a self-interested greedy manner but they did not get the red carpet treatment.
MSN Money - The Federal Reserve released thousands of pages of secret loan documents under court order, almost three years after Bloomberg LP first requested details of the central bank’s unprecedented support to banks during the financial crisis.
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Big News: Supreme Court tells Fed to release secret bailout loan details
Over two years and finally some good news and in my opinion the right choice on this case. If you have read any of my previous postings about the secret Federal Reserve (NY Fed) loans to banks (domestic & foreign). The Federal Reserve tried to maintain that is was better to keep these secret to basically prop up the banking sector than to tell the truth and let us decide (with our deposits), which banks should succeed and who should fail. THAT IS HOW A MARKET SYSTEM WORKS and that is suppose to be a cornerstone in America (at least I was taught that in public schools).
I will continue to reiterate the point that if we do not punish the reckless banks and prosecute any criminal activity, we will have another financial crisis sooner than later and it will be much worst because they know as long as its bug enough, the taxpayer will be here to bail them out. Not in my country is what I say.
The Supreme Court not only denied the banks appeal but they did not even have comment, just do it. On the other side, this could have serious consequences for the short term but it will be good for the long term. I believe this release of information could be the needle that breaks the recoveries back. Heed those words, you have been warned.
NY Times: The high court, without comment, refused to hear an appeal from an association of bankers trying to keep the information from becoming public.
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Federal regulator investigating bonds sold to GSEs for fraud
Glad to hear something is actually being done in this area after the taxpayers have been hosed from the subprime crisis. It was not right that the loan originators basically let all lending standards go out the door to make fees while selling them to Freddie Mac and Fannie Mae. If they followed the standards in place then it was our fault and not their’s on a technical level.
On a moral level this was obviously not okay but that is not how we run our society, we run it on incentives and loan originators operated under the incentives that were laid out. What we need to figure out is if they did not follow those standards and committed fraud to make fees and bonuses. If so, those money needs to be recouped and any crimes need to be punished to the fullest extent of the law. We can not allow such lawless behavior in our country. If you let criminals operate with a free hand then they tend to continue to commit crimes and even bring their friends into it.
Good job on the investigations, this was a huge debacle so many more should be coming down the pipe.
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FTC moves against mortgage modification and foreclosure relief scams
We should be glad to see the FTC stepping up and doing its job against fraudsters of all kind. Today in other news, the Attorney General’s office is cracking down on companies that have been committing mortgage fraud. We have to persecute any and all wrong doing in this crisis or we will set up the precedent that is it okay to steal and loot the American people at will. The people that are taking these types of programs are already vulnerable because of their financial situation. We have to protect them from being exploited by these types of scams.
Consumer Reports - The Federal Trade Commission announced this week that it is taking legal action against more than a dozen marketers accused of offering bogus mortgage modification or foreclosure relief services. Foreclosure rescue companies that charge high upfront fees for help that never comes were among five financial traps we advised readers to steer clear of in a March 2009 Consumer Reports story describing scams that were flourishing in the wake of the economic meltdown.
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