Saturday, October 25, 2014

Banker " Suicides picking up again ( October 25 , 2014 ) - Deutsche Bank Lawyer And Former SEC Enforcement Attorney Found Dead In Apparent Suicide ...... Recent extreme market turmoil and volatility sparking latest round of " suicides " ?

Zero Hedge ....


Deutsche Bank Lawyer And Former SEC Enforcement Attorney Found Dead In Apparent Suicide

Tyler Durden's picture




 
Back on January 26, a 58-year-old former senior executive at German investment bank behemoth Deutsche Bank, William Broeksmit, was found dead after hanging himself at his London home, and with that, set off an unprecedented series of banker suicides throughout the year which included former Fed officials and numerous JPMorgan traders.
Following a brief late summer spell in which there was little if any news of bankers taking their lives, as reported previously, the banker suicides returned with a bang when none other than the hedge fund partner of infamous former IMF head Dominique Strauss-Khan, Thierry Leyne, a French-Israeli entrepreneur, was found dead after jumping off the 23rd floor of one of the Yoo towers, a prestigious residential complex in Tel Aviv. 
Just a few brief hours later the WSJ reported that yet another Deutsche Bank veteran has committed suicide, and not just anyone but the bank's associate general counsel, 41 year old Calogero "Charlie" Gambino, who was found on the morning of Oct. 20, having also hung himself by the neck from a stairway banister, which according to the New York Police Department was the cause of death. We assume that any relationship to the famous Italian family carrying that last name is purely accidental.
Here is his bio from a recent conference which he attended:
Charlie J. Gambino is a Managing Director and Associate General Counsel in the Regulatory, Litigation and Internal Investigation group for Deutsche Bank in the Americas. Mr. Gambino served as a staff attorney in the United Securities and Exchange Commission’s Division of Enforcement from 1997 to 1999. He also was associated with the law firm of Skadden, Arps, Slate Meagher & Flom from 1999 to 2003. He is a frequent speaker at securities law conferences. Mr. Gambino is a member of the American Bar Association and the Association of the Bar of the City of New York.
As a reminder, the other Deutsche Bank-er who was found dead earlier in the year, William Broeksmit, was involved in the bank's risk function and advised the firm's senior leadership; he was "anxious about various authorities investigating areas of the bank where he worked," according to written evidence from his psychologist, given Tuesday at an inquest at London's Royal Courts of Justice. And now that an almost identical suicide by hanging has taken place at Europe's most systemically important bank, and by a person who worked in a nearly identical function - to shield the bank from regulators and prosecutors and cover up its allegedly illegal activities with settlements and fines - is surely bound to raise many questions. 
The WSJ reports that Mr. Gambino had been "closely involved in negotiating legal issues for Deutsche Bank, including the prolonged probe into manipulation of the London interbank offered rate, or Libor, and ongoing investigations into manipulation of currencies markets, according to people familiar with his role at the bank."
He previously was an associate at a private law firm and a regulatory enforcement lawyer from 1997 to 1999, according to his online LinkedIn profile and biographies for conferences where he spoke. But most notably, as his LinkedIn profile below shows, like many other Wall Street revolving door regulators, he started his career at the SEC itself where he worked from 1997 to 1999.

****


"Charlie was a beloved and respected colleague who we will miss. Our thoughts and sympathy are with his friends and family,” Deutsche Bank said in a statement.
Going back to the previous suicide by a DB executive, the bank said at the time of the inquest that Mr. Broeksmit “was not under suspicion of wrongdoing in any matter.” At the time of Mr. Broeksmit’s death, Deutsche Bank executives sent a memo to bank staff saying Mr. Broeksmit “was considered by many of his peers to be among the finest minds in the fields of risk and capital management.” Mr. Broeksmit had left a senior role at Deutsche Bank’s investment bank in February 2013, but he remained an adviser until the end of 2013. His most recent title was the investment bank’s head of capital and risk-optimization, which included evaluating risks related to complicated transactions.
A thread connecting Broeksmit to wrongdoing, however, was uncovered earlier this summer when Wall Street on Parade referenced his name in relation to the notorious at the time strategy provided by Deutsche Bank and others to allow hedge funds to avoid paying short-term capital gains taxes known as MAPS (see How RenTec Made More Than $34 Billion In Profits Since 1998: "Fictional Derivatives")
Broeksmit’s name first emerged in yesterday’s Senate hearing as Senator Carl Levin, Chair of the Subcommittee, was questioning Satish Ramakrishna, the Global Head of Risk and Pricing for Global Prime Finance at Deutsche Bank Securities in New York. Ramakrishna was downplaying his knowledge of conversations about how the scheme was about changing short term gains into long term gains, denying that he had been privy to any conversations on the matter. 

Levin than asked: “Did you ever have conversations with a man named Broeksmit?” Ramakrishna conceded that he had and that the fact that the scheme had a tax benefit had emerged in that conversation. Ramakrishna could hardly deny this as Levin had just released a November 7, 2008 transcript of a conversation between Ramakrishna and Broeksmit where the tax benefit had been acknowledged.

Another exhibit released by Levin was an August 25, 2009 email from William Broeksmit to Anshu Jain, with a cc to Ramakrishna, where Broeksmit went into copious detail on exactly what the scheme, internally called MAPS, made possible for the bank and for its client, the Renaissance Technologies hedge fund. (See Email from William Broeksmit to Anshu Jain, Released by the U.S. Senate Permanent Subcommittee on Investigations.)

At one point in the two-page email, Broeksmit reveals the massive risk the bank is taking on, writing: “Size of portfolio tends to be between $8 and $12 billion long and same amount of short. Maximum allowed usage is $16 billion x $16 billion, though this has never been approached.”

Broeksmit goes on to say that most of Deutsche’s money from the scheme “is actually made by lending them specials that we have on inventory and they pay far above the regular rates for that.”
It would appear that with just months until the regulatory crackdown and Congressional kangaroo circus, Broeksmit knew what was about to pass and being deeply implicated in such a scheme, preferred to take the painless way out.
The question then is just what major regulatory revelation is just over the horizon for Deutsche Bank if yet another banker had to take his life to avoid being cross-examined by Congress under oath? For a hint we go back to another report, this time by the FT, which yesterday notedthat Deutsche Bank will set aside just under €1bn towards the numerous legal and regulatory issues it faces in its third quarter results next week, the bank confirmed on Friday.
In a statement made after the close of markets, the Frankfurt-based lender said it expected to publish litigation costs of €894m when it announces its results for the July-September period on October 29.

The extra cash will add to Deutsche's already sizeable litigation pot, where the bank has yet to be fined in connection with the London interbank rate-rigging scandal.

It is also facing fines from US authorities over alleged mortgage-backed securities misselling and sanctions violations, which have already seen rivals hit with heavy fines.

Deutsche has also warned that damage from global investigations into whether traders attempted to manipulate the foreign-exchange market could have a material impact on the bank.

The extra charge announced on Friday will bring Deutsche's total litigation reserves to €3.1bn. The bank also has an extra €3.2bn in so-called contingent liabilities for fines that are harder to estimate. 
Clearly Deutsche Bank is slowly becoming Europe's own JPMorgan - a criminal bank whose past is finally catching up to it, and where legal fine after legal fine are only now starting to slam the banking behemoth. We will find out just what the nature of the latest litigation charge is next week when Deutsche Bank reports, but one thing is clear: in addition to mortgage, Libor and FX settlements, one should also add gold. Recall from around the time when the first DB banker hung himself: it was then that Elke Koenig, the president of Germany's top financial regulator, Bafin, said that in addition to currency rates, manipulation of precious metals "is worse than the Libor-rigging scandal."
It remains to be seen if Calogero's death was also related to precious metals rigging although it certainly would not be surprising. What is surprising, is that slowly things are starting to fall apart at the one bank which as we won't tire of highlighting, has a bigger pyramid of notional derivatives on its balance sheet than even JPMorgan, amounting to 20 times more than the GDP of Germany itself, and where if any internal investigation ever goes to the very top, then Europe itself, and thus the world, would be in jeopardy.
Which is why perhaps sometimes it is easiest if the weakest links, those whose knowledge can implicate the people at the top, quietly commit suicide in the middle of the night... 



Banker Suicides Return: DSK's Hedge Fund Partner Jumps From 23rd Floor Apartment

Tyler Durden's picture




 
The summer, thankfully, has been largely bereft of the dismal trend of bankers committing suicide, but as Bloomberg reportsThierry Leyne, a French-Israeli banker and partner of Dominique Strauss-Kahn, the disgraced former chief of the IMF, was found dead Thursday after apparently taking his own life by jumping off the 23rd floor of one of the Yoo towers, a prestigious residential complex in Tel Aviv. This is the 16th financial services executive death this year.


Bloomberg reports that Thierry Leyne, the French-Israeli entrepreneur who last year started an investment firm with former International Monetary Fund Managing Director Dominique Strauss-Kahn, has died. He was 48.
Leyne died yesterday in Tel Aviv, according to his assistant at the firm, who asked not to be identified. Le Figaro newspaper reported that he committed suicide.

Last year, Leyne joined Strauss-Kahn in establishing the Paris-traded firm Leyne, Strauss-Kahn & Partners after the former IMF head bought a 20 percent stake to help develop the investment-banking franchise of Leyne’s company, Luxembourg-based Anatevka SA. Leyne had taken Anatevka public in March 2013 before joining forces with Strauss-Kahn, commonly referred to in France as DSK.

The new partnership -- usually called LSK & Partners by using both men’s initials -- was part of Strauss-Kahn’s efforts to rebuild his post-IMF life after he was charged in 2011 of criminal sex, attempted rape, sexual abuse, unlawful imprisonment and the forcible touching of a chambermaid at the Sofitel hotel in Manhattan. Strauss-Kahn denied the charges, which were later dropped. He settled the maid’s lawsuit in 2012.
Mr. Leyne, 48, jumped off the 23rd floor of one of the Yoo towers, a prestigious residential complex, according to Israeli officials.
Leyne, who resided in Tel Aviv, built his career as a financier in France, Israel and Luxembourg. He founded the investment firm Assya Capital in 1994 and listed it on Euronext in Paris in 2001. Leyne merged the business with Global Equities Capital Markets in 2010 to provide financial advice and private banking to clients in eastern Europe, Le Figaro reported.

Anatevka, which had a market value of 50 million euros ($63 million) when Strauss-Kahn purchased his stake, controlled the merged entity, known as Assya Compagnie Financiere, offering asset management, brokerage, corporate finance and capital investment. Anatevka had a staff of about 100 people in six countries -- Luxembourg, Belgium, Monaco, Israel, Switzerland and Romania -- in September 2013.

In 1996, Leyne founded the company Axfin, one of the first independent investment firms in France, according to the website of Assya Capital. Axfin listed on the Paris stock exchange in 1999 before it was bought by Nuremberg, Germany-based Consors Discount Broker AG. Leyne was the supervisory board chairman of Consors France until the end of 2002.

Leyne was born in September 1965, according to French public records. He held French and Israeli citizenship, Figaro said. He had an engineering degree from the Israel Institute of Technology in Haifa, his LinkedIn profile shows.
*  *  *
This is the 16th financial services executive death this year...
1 - William Broeksmit, 58-year-old former senior executive at Deutsche Bank AG, was found dead in his home after an apparent suicide in South Kensington in central London, on January 26th.
2 - Karl Slym, 51 year old Tata Motors managing director Karl Slym, was found dead on the fourth floor of the Shangri-La hotel in Bangkok on January 27th.
3 - Gabriel Magee, a 39-year-old JP Morgan employee, died after falling from the roof of the JP Morgan European headquarters in London on January 27th.
4 - Mike Dueker, 50-year-old chief economist of a US investment bank was found dead close to the Tacoma Narrows Bridge in Washington State.
5 - Richard Talley, the 57 year old founder of American Title Services in Centennial, Colorado, was found dead earlier this month after apparently shooting himself with a nail gun.
6 - Tim Dickenson, a U.K.-based communications director at Swiss Re AG, also died last month, however the circumstances surrounding his death are still unknown.
7 - Ryan Henry Crane, a 37 year old executive at JP Morgan died in an alleged suicide just a few weeks ago.  No details have been released about his death aside from this small obituary announcement at the Stamford Daily Voice.
8 - Li Junjie, 33-year-old banker in Hong Kong jumped from the JP Morgan HQ in Hong Kong this week.
9 - James Stuart Jr, Former National Bank of Commerce CEO, found dead in Scottsdale, Ariz., the morning of Feb. 19. A family spokesman did not say whatcaused the death
10 - Edmund (Eddie) Reilly, 47, a trader at Midtown’s Vertical Group, commited suicide by jumping in front of LIRR train
11 - Kenneth Bellando, 28, a trader at Levy Capital, formerly investment banking analyst at JPMorgan, jumped to his death from his 6th floor East Side apartment.
12 - Jan Peter Schmittmann, 57, the former CEO of Dutch bank ABN Amro found dead at home near Amsterdam with wife and daughter.
13 - Li Jianhua, 49, the director of China's Banking Regulatory Commission died of a sudden heart attack
14 - Lydia _____, 52 - jumped to her suicide from the 14th floor of Bred-Banque Populaire in Paris
15 - Julian Knott, 45 - killed wife and self with a shotgun in Jefferson Township, New Jersey
16 - Thierry Leyne, 48 - jumped from 23rd floor apartment in Tel Aviv.

Revisiting life in Greece under Troika rule ( October 25 - 26 , 2014 ) - Austerity hits Greek MPS with predictable squealing .... Greece Government dances with Troika over perpetual bailout and debt proposals...



Keep Talking Greece ....


23
OCT

LOL Ex-Minister complains about cuts in MPs’ salaries and allowances

Posted by  in Politics
Ex minister for Health and Nea Dimokratia MP Adonis Georgiadis complained about the cuts in MP’s pay and perks. “Greek MPs have suffered the biggest cuts in their salary and allowances than any other branch in the government,” he claimed adding “the salary cuts reached 60% and the parliamentary pensions went down 70%.”
Georgiadis was speaking to the Parliament when he said all these nice things that were heard by millions of Greeks whose wages and salaries cuts sent them to bite the cloth of hunger.
He also complained about the taxation of MPs’ salaries and office allowance and claimed that members of the Parliament suffered the biggest salary cuts than the citizens.
What he forgot to mention is that still MPs receive a monthly salary of €6,500, when the average salary in the private sector is hardly €1,000 gross independently of skills, PhDs and  years of working experience.
Of course, he also avoid to mention that an MP gets a pension after having being elected for two legislation periods (4×2= 8 years), while privater sector workers need to complete 35-40 years of work.


21
OCT

Death by Taxation: Greeks’ debts to tax office reach €70billion in September

Posted by  in Economy
It is a never ending horror spiral of tax debts and tax collection in recession-, austerity- and overtaxation-hit Greece. While many taxpayers make arrangements with the state to pay old debts and do indeed pay the installments month in, month out,  they do not manage to pay their taxes for the running year. Taxpayers’ “good will” is not enough, when income is low and pockets are empty.
“Tax debts to the Greek state hit a new record in September, reaching a total of 70.16 billion euros from 69.24 billion euros in August, the General Secretariat for Public Revenues said on Tuesday.
New debts in the January-September period came to 9.68 billion euros, added to a total shortfall of 60.48 billion dating from before 2013. in September alone, taxpayers ran up debts of 923 million euros, the secretariat said.
In the nine-month period from January to September, the state managed to collect 2.69 billion euros in arrears, or 14.16 percent, missing the target set by the troika for 2 billion euros in revenues from old debts by the end of the year and the collection of 25 percent of all new debts” (ekathimerini)
The same happen with debts to Public Power Company DEH. Debtors make arrangements and pay the installments of their old debts, but they are unable to pay the current bills.
PS We will die before we manage to pay our debts first. Growth can wait.


17
OCT

Rhodes: Jobless father hands out baby to tax office, after FinMin confiscates his last €300

Posted by  in Society
A desperate jobless father entered the tax office in Rhodes holding in his arms his 1.5-year-old baby. “Take it,” he told the stunned tax officers “I cannot feed it anymore.” A day earlier, the divorced father had found out that the tax office had confiscated 300 euro from his bank account, money that was deposited by the mother for the monthly child’s support.
Once the tax officers informed him that the confiscation was due to outstanding debts to the tax office and that the money could not be returned, the father offered them his child.
The 35-year-old father explained that he was led to a deadlock, since he was unemployed for quite some time. He complained that he was unable to take care of his child without this money and that the state was depriving him from the opportunity to raise his child with dignity.
After the case made the rounds in local and national media, the tax office in Rhodes issued a statement saying that “the bank account was registered as ‘recalcitrant‘ but the account holder had failed to update the status for 2014.”
According to confiscation law for debts to the state, tax offices can automatically grab money from debtors’ bank accounts unless, the accounts have less than 1,500 euro and have been registered as “unconfiscatable’.
Local media report that the head of the tax office promised to return the confiscated amount to the father, however chances are slim due to the notorious Greek bureaucracy.
In Greece of economic and humanitarian crisis, the state is quick in grabbing and confiscated money from the poor and needy debtors. Numbers and “primary surpluses” seem to be more important than human fates and needs.
But when it comes to “big money” and “big debts” the state always finds ways to come clear. Just a couple of days ago, coalition government partners Nea Dimokratia and PASOK passed a regulation through the Parliament, according to which
“40of total state funding to political parties cannot be confiscated.” The reasoning for this decision is that “political parties are legal entities of public purpose and that they need a minimum assured income to ensure their sustainability.” (reporter.gr)
According to main opposition party SYRIZA, the debts of Nea Dimokratia and PASOK to the banks amount some 270-300 million euros.
Debtors can certainly make arrangements to pay debts to the state  but the deal becomes invalid once the debtor misses the payment of one installment. However, Greece’s lenders, the Troika, oppose arrangements of more than 50+ installments.
Odd enough, Education Minister Andreas Loverdos said Thursday that a private educational institution with debts to the state amounting several million euros had made an arrangement to pay installments of just 160 euro per month.
“We will be dead and gone until this gentleman has paid his debts,” Loverdos stressed.
So how could this gentleman make such an arrangement with the tax office, when the Greek government struggles to get the green light from the Troika and facilitate debtors to pay in 75 or 100 payment installments?
In the list of private education institutions(IEK) given to the public by Loverdos, the highest debt to the state is 11 million euros, the majority of debts of the other IEK are in the average two or three million euros.
PS here in Greece, it’s all a matter of good connections and power….


Ekathimerini.....


Debt pay plan may hurt talks

 Troika was belatedly notified and will likely lean on Athens to take measures to absorb fiscal impact
 Finance Minister Gikas Hardouvelis addresses Parliament on Friday, as a wreath adorns the podium to mark the October 28 national holiday.
By Roula Salourou and Sotiris Nikas
A new regulation regarding payment programs for debts to the state and social security funds has added more thorny issues to the already difficult negotiations between the government and its creditors, the European Central Bank, European Commission and the International Monetary Fund.
In an effort to give debtors a breather, the government eventually opted for a major increase in the number of installments and a reduction in the amount due concerning tax and social security contribution arrears (due to the waiving of fines etc). Finance Minister Gikas Hardouvelis told Parliament on Friday that “there will be no income restrictions in order to allow for the greatest possible number of taxpayers to enter the payment programs,” and that “even tax debts run up after October 1 could be incorporated into the payment schemes too.”
However changing the entry terms and conditions for the payment programs has made Athens’s negotiations with the troika even tougher.
The first reason for that is that the government submitted the regulation without having first secured the consent of its creditors. The troika’s technical team reportedly received the details of the regulation after its submission in Parliament. Athens has made unilateral moves of such a nature on other occasions too, but this won’t make talks with the creditors any easier.
The second reason is that although there can be no safe estimate of the payment programs’ fiscal impact, the general consensus is that the end result will probably be negative, not positive. Revenues will likely be lower than was the case with previous programs, even though more debtors are expected to join the new scheme. As a result the troika is likely to increase the fiscal gap for 2015 that it already estimates at 2 billion euros. That could mean additional demands to cover the new hole in the budget created by the debt repayment programs.

ekathimerini.com , Friday October 24, 2014 (20:49)  







No decisions yet on Greek bailout, says Samaras

 Greek Prime Minister Antonis Samaras arrives for a European Union summit at the EU headquarters in Brussels on Friday.
The European Union leaders’ summit concluded in Brussels on Friday without any concrete decisions having been taken about Greece’s economic future despite Prime Minister Antonis Samaras holding a series with top officials.
“Nothing has been decided yet,” said Samaras at a news conference, during which he added that discussions about Greece exiting its bailout at the end of the year with a precautionary credit line are continuing.
Samaras met on Friday with European Central Bank President Mario Draghi as well as French President Francois Hollande, Italian Prime Minister Matteo Renzi, Dutch President Mark Rutte, Spanish Prime Minister Mariano Rajoy and Irish leader Enda Kenny.
“They are all sympathetic to our cause,” said Samaras, without giving any more details about his talks on the sidelines of the European Council.
“Our aim is to return to normality and for Greece to become a normal country,” added the premier, who admitted that the lack of economic growth in the eurozone as well as geopolitical dangers in other parts of the world are creating concern about how Greece might cope if it leaves its bailout.
Reuters reported on Friday that the government has sent a letter to the EU and the International Monetary Fund outlining its case for demands for further pension reform to be removed from the ongoing review of the Greek program. An official told the news agency that Athens argues in the letter that the current pension system is viable until 2060.
The troika had asked the government to merge several supplementary pension funds by next month but this would lead to a further cut to pensions, which the coalition wants to avoid.

ekathimerini.com , Friday October 24, 2014 (20:44)