http://www.silverdoctors.com/jpm-privately-panicking-over-munis-unfunded-pension-liabilities-now-4-trillion/
JP Morgan has released a confidential report to important clients regarding their concern over the ‘huge ticking time-bombs’ of the unfunded pension crisis, which JPM states is likely $4 TRILLION.
Now who do you supposed assisted towns and cities across America in hiding their true liabilities off the balance sheets using complex derivatives?
Great news for customers who had their money stolen by Wall Street!
No need to worry about its return, now they can sell their claims at a discount to -- Wall Street!
Perhaps we can get rid of the FDIC and cumbersome banking regulation and let people auction off their looted savings deposits and CD's when the Bankers lose their money by gambling on derivatives.
And as for education, well, children do have a lot of time and energy that might be better utilized in manual labor.
Free market! Assymetry of information! Predatory finance! Innovation!
It's got something for everyone -- well, everyone that counts, that is.
This has to be considered with the other headline that was released about the same time by Gary Anderson at The Business Insider: Did Dimon and JP Morgan Steal MF Global Funds? Chris Whalen Thinks So.
Perhaps it is just an overdeveloped sense of justice, but I find this to be particularly repugnant. Wall Street is taking advantage of people's fears of not receiving their money back in the face of a blatant theft by some undisclosed financial parties, and of course an overwhelming show of legal force and slick maneuvering in the bankruptcy process by JPM.
and.....
http://www.silverdoctors.com/gold-gone-for-good/
From Turd:
and......
JPM Privately Panicking Over Muni’s: Unfunded Pension Liabilities Now $4 TRILLION!
JP Morgan has released a confidential report to important clients regarding their concern over the ‘huge ticking time-bombs’ of the unfunded pension crisis, which JPM states is likely $4 TRILLION.
JPM states that ‘many of the real liabilities are located “off balance sheet,” hidden from the public’s eye‘.
Now who do you supposed assisted towns and cities across America in hiding their true liabilities off the balance sheets using complex derivatives?
That’s right, banks like JPM and The Vampire Squid, who infamously assisted Greece in hiding their true debt from the EU.
Meredith Whitney will be proven 100% correct in due time.
While the Senate Banking Committee last week spun its wheels trying to get JP Morgan chief Jamie Dimon to admit to something nefarious during testimony about his “London Whale” trading loss, executives at the big bank were concealing a far bigger scandal…
A “strictly confidential” report JP Morgan issued last year describes in straightforward, frightening detail how underfunded pensions are huge ticking time-bombs for many of the nation’s big cities and states.
The scandal isn’t simply that most public officials are misleading the public about the enormity of the problem and what steps must be taken to address the matter. As the Morgan report notes, many of the real liabilities are located “off balance sheet,” hidden from the public’s eye, and lax accounting standards let cities and states minimize their enormity.
It’s also that JP Morgan itself kept the report’s findings a secret except for a few big clients, mostly hedge funds and large institutional investors, who got the inside tip on which states and cities are most likely to default on their debt as their pension liabilities fester.
* * *
and......
http://jessescrossroadscafe.blogspot.com/2012/06/mf-global-customers-get-chance-to.html
MF Global Customers "Get the Chance" To Auction Off Hopes For the Full Return of Stolen Funds
No need to worry about its return, now they can sell their claims at a discount to -- Wall Street!
Perhaps we can get rid of the FDIC and cumbersome banking regulation and let people auction off their looted savings deposits and CD's when the Bankers lose their money by gambling on derivatives.
And as for education, well, children do have a lot of time and energy that might be better utilized in manual labor.
Free market! Assymetry of information! Predatory finance! Innovation!
It's got something for everyone -- well, everyone that counts, that is.
This has to be considered with the other headline that was released about the same time by Gary Anderson at The Business Insider: Did Dimon and JP Morgan Steal MF Global Funds? Chris Whalen Thinks So.
"If Whalen's opinion is true, no account at a broker/dealer is safe from the investment bank that determines to get money from a bankruptcy proceeding. There is a loophole that allows a margin call, even from companies that are bankrupt, and the bank can accept money that comes from protected accounts. They do not have to wait for the bankruptcy proceeding and then no one is left to protect the account holders! Wow, I say."Of course we still do not know who did it yet, but there is no doubt that the money, and some precious metal and Treasury bond assets held on account, were stolen. And it is an old axiom 'that Caesar's wife must be above suspicion.' And in this case, she is at least caught outdoors in her nightie.
Perhaps it is just an overdeveloped sense of justice, but I find this to be particularly repugnant. Wall Street is taking advantage of people's fears of not receiving their money back in the face of a blatant theft by some undisclosed financial parties, and of course an overwhelming show of legal force and slick maneuvering in the bankruptcy process by JPM.
Especially when those fears have been created by some of the very institutions that stand to further benefit from the lack of justice in how this is being handled by their bought and paid for regulators and politicians.
Financial Times
MF Global clients get chance to auction claims
By Tracy Alloway in New York
June 19, 2012
Former customers of MF Global will have the chance to auction off their claims, giving them another opportunity to recoup money from the failed broker-dealer.
SecondMarket, a trading platform for bankruptcy claims and other specialised investments, on Tuesday began an auction process for MF Global customers wishing to sell their recovery rights in the company once run by Jon Corzine, a former Goldman Sachs chief executive.
MF Global collapsed in October, leaving $1.6bn worth of missing customer funds and triggering a series of complicated and continued cross-border bankruptcy proceedings. Clients of the failed broker-dealer who are owed money can choose to sell their claims to the bankruptcy estate in an effort to recoup their funds earlier.
Such claim trading is common after big bankruptcies, such as Lehman Brothers’ 2008 collapse or Hostess Brands’ early 2012 filing. (Note that NO Customer Accounts had to be auctioned off at less than par in these cases - Jesse)
Buyers – including hedge funds and some large investment banks – are essentially punting on the ultimate recovery values of the claims.
MF Global claims already trade on SecondMarket, but the new auction system is meant to make it easier for sellers to find buyers. Former MF Global customers will be able list their claims for sale on a centralised platform, and potential buyers will be able to conduct due diligence and then make their bids....
and.....
http://www.silverdoctors.com/gold-gone-for-good/
Gold Gone for Good?
Our friend Turd from TFMetalsReport states that 2 independent sources have informed him that Eastern buyers have been taking London good delivery gold bars OUT OF THE LBMA systemdirectly to refiners, and the bars are being melted into new 1kg bars with official government stamps.
If true, this is an absolute paradigm changer for the cartel, as the paper shenanigans cannot continue with all the PHYSICAL GOLD being daily drained from the system!!
From Turd:
Beginning some time ago, but continuing today at an accelerating pace, physical metal is being purchased in London and then delivered out of the system. Under “normal” circumstances, this is not necessarily unusual. The bullion banks simply expect this metal to return to them at some point, where it can be re-leased, re-hypothecated and re-delivered in the future. This is how it has worked for decades.
However, this time it’s different.
What I have learned and have since been able to confirm via a second source is this: London Good Delivery bars are being delivered to Eastern buyers. Instead of being vaulted inside the LBMA system, these bars are being sent directly to refiners. The bars are then being melted and recast in 1 kilogram sizes. The new bars are then being stamped with official, government insignia and sent on to vaults outside of the LBMA system and points east, never to return again.
What does this mean and why is this important? Quite clearly this information, if accurate, has several significant ramifications:
The Chinese and others are preparing for a new system. Whether it’s simply a new gold pricing and delivery system to replace the LBMA/Comex or whether it’s a new global trade settlement system that is guaranteed with gold is impossible to say, at this point.
The physical gold supply of the LBMA and secondarily the Comex, much of which has been acquired/supplied through leasing, is being rapidly depleted and will not be coming back.
The bullion banks, which have profited for years from leasing, trading, vaulting and the like, are about to feel the rather dramatic effects of this supply depletion.
and......
http://harveyorgan.blogspot.com/2012/06/spanish-10-year-bond-yield-remains.html
This should be interesting for gold and silver. Please note that the buyer will clamp down on the lucrative metal warehousing business which attracted investments from Goldman Sachs etc. They also plan on shortening the waiting time to take PHYSICAL METAL. That should be interesting to see:
(courtesy Jack Farchy/London Financial Times)Hong Kong buyer plans to crack metal delivery bottlenecks at LME
Submitted by cpowell on Mon, 2012-06-18 07:48. Section: Daily Dispatches
HKEx Plans LME Warehousing Shake-UpBy Jack Farchy
Financial Times, London
Sunday, June 17, 2012The prospective buyer of the London Metal Exchange has warned that it will clamp down on the lucrative metal warehousing business that has attracted investments from Goldman Sachs and Glencore.Hong Kong Exchanges & Clearing, which on Friday announced an agreement to buy the 135-year-old group for L1.4 billion, said it was planning to change the rules governing the LME's network of warehouses in an attempt to shorten the wait to take delivery of metal.Long queues to remove aluminium from LME warehouses have sparked angry confrontations between consumers of metal, such as Coca-Cola, PepsiCo, and General Motors, and warehouse owners, including Goldman, JPMorgan, Glencore, and Trafigura.Banks and trading houses have rushed to buy warehousing companies to profit from the fact that large quantities of metal have become surplus to requirements since the financial crisis. But now that the metal is needed, consumers say, it can take more than a year to be delivered.
The problem is most acute at warehouses owned by Glencore in the Netherlands and Goldman in Detroit. The premium to buy a cargo of aluminium for immediate delivery has soared to record highs as a result, in spite of large stocks, consumers say.Charles Li, chief executive of HKEx, told the Financial Times that warehousing was a "very challenging issue." The LME's responses to date -- which include increasing the rate at which the largest warehouses must deliver metal -- "generally speaking fit the problem," he said.Martin Abbott, chief executive of the LME, has in the past attributed the problem to logistical challenges in removing metal from warehouses and low interest rates that make it easy to finance inventories."It is no longer just a simple logistic challenge issue. ... There are behaviour issues. We need to look at the rules, what behaviour they encourage and what behaviour they discourage," Mr Li said. In a later statement clarifying his views, he added: "Our position is no different from the current LME position."HKEx's bid must still pass a vote of the LME's shareholders, of which the largest are JPMorgan and Goldman Sachs.Warehouse companies earn a fee while they hold metal, even if it has not left because of queues. Consumers and some traders have complained that because queues guarantee a future revenue stream, producers are being persuaded to store their metal."As long as warehouses continue to offer incentives to attract metal that is guaranteed to stay in storage for prolonged periods, less metal is available for actual usage," said Nick Madden, chief procurement officer at Novelis, the top buyer of aluminium.The LME said: "We are constantly monitoring the way that LME warehousing functions and will take action when appropriate."Simon Collins, head of dry bulk commodities at Trafigura, the second-largest metals trader, said: "We would welcome a review by HKEx of LME rules on warehousing and delivery."The dispute, along with a disagreement about raising trading fees, has caused many LME shareholders to lose faith in its management structure. Half the board is made up of banks and brokers, including Goldman.Numerous investors say concerns about governance are one reason LME shareholders are likely to vote for a sale.
and....
I found the following amusing. Does this mean that gold investors are finally realizing that there is a cash settlement to the well connected? The weekly option holders want a physical component and not a financial settlement! enjoy.
(courtesy Chris Powell of GATA/Lori Spechler/CNBC)
Are gold investors wising up to cash settlement?
Submitted by cpowell on 07:55PM ET Friday, June 15, 2012. Section: Daily Dispatches
Short-Term Gold Options Get Physical
By Lori Spechler
CNBC, New York
Friday, June 15, 2012http://www.cnbc.com/id/47835510
The CME Group this week is amending its contract for short-term or weekly gold option contracts to allow for the physical delivery of gold.
"Investors had wanted a physically delivered contract as opposed to a financially settled contract," says CME spokesman Damon Leavell. "I think that this will attract over-the-counter traders to the exchange."
The short-term gold option contracts were originally launched about a year ago but fell short of expectations. Once approved, the options would be five-business-day contracts that launch every single day.
Short-term investing has become the norm of high-net worth investors according to a recent report by the World Gold Council.
"With the prospect of continued market uncertainty, the challenge for investors is to develop new strategies to cope with higher levels of ambient risk," says Marcus Grubb, World Gold Council Managing Director.
The exchange currently has financially settled weekly options in gold, crude oil, and natural gas.
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