http://wallstreetonparade.com/2012/09/did-jpmorgan-host-a-secret-meeting-on-libor-with-7-members-of-the-ny-fed/
( Anyone really think JP Morgan goes down due to Liborgate - without taking the Fed with it ? )
http://www.reuters.com/article/2012/09/21/us-bank-trading-report-idUSBRE88K0VP20120921?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28Business+News%29
http://www.blacklistednews.com/JPM_Sued_For_%27Grand_Theft_Derivatives%27_In_Lehman_Case/21607/0/38/38/Y/M.html
Lehman, dead, but still filing lawsuits.
JPM is being sued for stealing $230 million and 'filing false and inflated claims' in a $2.6 billion derivatives battle with Lehman. It was a mad scramble for cash and collateral in Lehman's final week, and Jamie Dimon's team grabbed everything they could find while Fuld and company were busy setting up secret cash payments to insiders. But that's another story.
WSJ
Lehmans bankruptcy estate is suing J.P. Morgan over the bank's more than $2.6 billion in derivatives claims. Lehman, joined by its creditors, is asking a bankruptcy judge to slash J.P. Morgan's claims related to terminated swaps and other deals Lehman struck with JPM and Bear Stearns.
Lehman's lawyers said Friday that J.P. Morgan "inflated" its claims by, among other techniques, choosing the wrong valuation dates and adding charges for losses the bank didn't suffer.
and......
http://dailybail.com/home/report-senior-atf-agent-in-charge-of-fast-n-furious-gun-runn.html
( Anyone really think JP Morgan goes down due to Liborgate - without taking the Fed with it ? )
Did JPMorgan Host a Secret Meeting on Libor, With 7 Members of the NY Fed
By Pam Martens: September 24, 2012
U.S. Treasury Secretary, Timothy Geithner
JPMorgan Chase, the Wall Street mega bank now under criminal probes for losing billions of FDIC insured deposits in risky derivative trades, for years has been one of the dinner hosts of an unseemly industry trade and lobby group established by none other than the Federal Reserve Bank of New York, its own regulator.
On the evening of October 8, 2009, representatives of the largest Wall Street banks enjoyed cocktails and dinner at 270 Park Avenue in Manhattan, the headquarters of JPMorgan Chase. Bill Hirschberg of Barclays was there; Jeff Feig of Citigroup; Troy Rohrbaugh of JPMorgan; Fabian Shey of UBS and numerous others.
Also enjoying the food and conversation were seven officials from their regulator, the New York Fed. The Fed attendees were: Steven Friedman, Marcus Lee, Susan McLaughlin, Patricia Mosser, Jamie Pfeifer, and Brian Sack. Michael Nelson, currently Counsel and Senior Vice President of the New York Fed was also in attendance.
The group is called the Foreign Exchange Committee and its sponsor is the New York Fed, the same body tasked with policing these firms to root out illegal conduct.
On this particular evening, there is the suggestion that more than foreign exchange may have been discussed. In attendance was Michael Cross, a high ranking official from the Bank of England who has been centrally involved in the Libor matter. In Libor-related emails that were released, Cross shows a bias toward self-regulation. In an internal June 2, 2008 email, Cross stated that “a panel of senior bankers overseeing the BBA process (from within the BBA) is a way to go.”
The BBA refers to the British Bankers Association, a trade association that overseesLibor, the interest rate setting mechanism for financial products used globally. The public learned earlier this year that the rate has been rigged for years by an international banking cartel.
It’s curious enough that an official from the Bank of England was at this meeting, but even more curious were two other guests: Susan Gammage of Thomson Reuters and John Nixon of ICAP.
Thomson Reuters is the company that assists the BBA in calculating and announcing Libor interest rates. ICAP is an inter-dealer broker implicated in the Libor rate-fixing matter.
The host of this event, JPMorgan, is under investigation in the Libor matter as is Citigroup, which also sent a representative. Barclays, which was in attendance, has already admitted to and settled the charges with fines of $453 million by U.K. and U.S. regulators. UBS is said to have a whistleblower providing evidence to investigators. Traders from ICAP have been implicated by the Canadian Competition Bureau, as have JPMorgan and Citigroup.
There are no publicly available minutes from this meeting. According to the newly enacted charter of the Foreign Exchange Committee posted at the New York Fed’s web site, “Any information disclosed, opinions expressed, or statements made during Committee meetings shall be treated as strictly confidential by members, unless the Committee has authorized release.” (The charter is new but the group has been meeting for decades.)
Whether the banking cartel was meeting this night to discuss the allegations of rigging Libor with their regulator behind closed doors is not known. The New York Fed, which sent seven officials to the meeting, had known about Libor misconduct since 2007 but did not make the matter public. Nor did it refer the matter to the U.S. Department of Justice. Timothy Geithner, then President of the New York Fed, is now the U.S. Treasury Secretary.
Conveniently, the U.S. Treasury Secretary was given the power under Dodd-Frank financial reform to decide if foreign exchange trading should be exempted from derivatives regulation. In April of last year, Geithner requested the full exemption.
On May 20, 1999, Paul Kimball, Chair of the Foreign Exchange Committee, testified before the House Agriculture Subcommittee on Risk Management, Research and Specialty Crops that “The over-the-counter foreign exchange market in the U.S. needs no additional regulation.”
On February 20, 2009, the group wrote to another regulator, FINRA (Financial Industry Regulatory Authority) effectively telling it to mind its own business when it came to setting leverage limits for retail customers wanting to trade foreign exchange. The group wrote: “As an initial matter, we would like to note that since foreign currency transactions are not securities and are not subject to the federal securities laws, we therefore question the basis for FINRA’s legal authority to regulate the terms of transactions in this market. While we recognize that FINRA may be able to regulate the sales practices of broker-dealers, even in connection with non-securities, we are not aware of the foundation for FINRA’s authority to control the actual terms of non-securities transactions.”
The same could certainly be said for the New York Fed in setting up an industry lobby and self-governance group in the field of foreign exchange. The Commodity Futures Trading Commission (CFTC) is the regulatory body tasked with regulating futures and derivatives. How the New York Fed carved out a niche for itself and the largest Wall Street firms in the gargantuan $4 trillion a day foreign exchange market should command the interest of Congress.
In August 1976, the Committee on Banking, Currency and Housing released a report titled: Federal Reserve Directors: A Study of Corporate and Banking Influence. The report drills down to the core of the problem:
“The big business and banking dominance of the Federal Reserve System cited in this report can be traced, in part, to the original Federal Reserve Act, which gave member commercial banks the right to select two-thirds of the directors of each district bank. But the Board of Governors in Washington must share the responsibility for this imbalance. They appoint the so-called ‘public’ members of the boards of each district bank, appointments which have largely reflected the same narrow interests of the bank-elected members. The parochial nature of the boards affects the public interest across a wide area, ranging from monetary policy to bank regulation. These are the directors, for example, who initially select the presidents of the 12 district banks—officials who serve on the Federal Open Market Committee, determining the nation’s money supply and the level of economic activity. The selection of these public officials, with such broad and essential policymaking powers, should not be in the hands of boards of directors selected and dominated by private banking and corporate interests.”
As JPMorgan faces multiple probes on multiple continents, its Chairman and CEO, Jamie Dimon, sits on the Board of Directors of its regulator, the New York Fed. Coming up on October 3 at 4 p.m. will be another Foreign Exchange Committee event hosted by JPMorgan Chase with the group’s sponsor, the New York Fed, no doubt in attendance.
http://www.reuters.com/article/2012/09/21/us-bank-trading-report-idUSBRE88K0VP20120921?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28Business+News%29
(Reuters) - JPMorgan Chase & Co's multibillion-dollar loss on a bloated derivatives portfolio led the way to a 73 percent decline in U.S. banking industry trading revenue, according to a new government report.
Trading revenue fell to $2 billion in the second quarter from $7.4 billion a year earlier, the Office of the Comptroller of the Currency said on Friday.
"It was clearly the highly publicized losses at JPMorgan Chase that caused the sharp drop in trading revenues," Martin Pfinsgraff, deputy comptroller for credit and market risk, said in a statement from the OCC. Less demand from clients for trades was also a factor, he said.
Compared with the first quarter, trading revenue fell almost as much, by 69 percent, from $6.4 billion.
So far, JPMorgan has pegged its total loss on the trades at $5.8 billion, using public-company accounting standards and assigning part of the loss to the first quarter.
A London-based trader involved in the trades was known in the credit derivatives market as the "London whale" for the large size of the positions he took.
The OCC's tally of industry results put JPMorgan's second-quarter loss on the trades at $3.7 billion, which the regulator said had caused the bank to report an aggregate $420 million trading loss for the quarter. Accounting for bank regulations is different in some ways from that used in companies' reports to shareholders.
The OCC report echoes similar data reported on August 28 by the Federal Deposit Insurance Corp.
JPMorgan Chief Executive Officer Jamie Dimon has said as recently as September 11 that the company has largely contained the problem with the portfolio.
and.....
http://www.blacklistednews.com/JPM_Sued_For_%27Grand_Theft_Derivatives%27_In_Lehman_Case/21607/0/38/38/Y/M.html
Lehman, dead, but still filing lawsuits.
JPM is being sued for stealing $230 million and 'filing false and inflated claims' in a $2.6 billion derivatives battle with Lehman. It was a mad scramble for cash and collateral in Lehman's final week, and Jamie Dimon's team grabbed everything they could find while Fuld and company were busy setting up secret cash payments to insiders. But that's another story.
WSJ
Lehmans bankruptcy estate is suing J.P. Morgan over the bank's more than $2.6 billion in derivatives claims. Lehman, joined by its creditors, is asking a bankruptcy judge to slash J.P. Morgan's claims related to terminated swaps and other deals Lehman struck with JPM and Bear Stearns.
Lehman's lawyers said Friday that J.P. Morgan "inflated" its claims by, among other techniques, choosing the wrong valuation dates and adding charges for losses the bank didn't suffer.
Lehman also claims J.P. Morgan understated the amounts that the bank and Bear Stearns owed the failed investment bank after netting out their trades.
Lehman is also asking U.S. Bankruptcy Judge James Peck of Manhattan to force J.P. Morgan to return more than $230 million it says the bank illegally grabbed as so-called setoffs of amounts owed under derivatives transactions.
In addition to trading with Lehman, J.P. Morgan served as Lehman's clearing bank, providing cash advances of up to $100 billion a day to Lehman to facilitate overnight repurchase, or repo, agreements, a major element supporting the so-called shadow banking system. It held the collateral that Lehman pledged to secure the loans in the triparty repurchase agreements.
That role has resulted in J.P. Morgan being one of Lehman's key adversaries in numerous disputes surrounding the investment bank's demise as well as one of the largest creditors of the bankrupt holding company and its subsidiaries.
Lehman Brothers sued J.P. Morgan in 2010 for $8.6 billion, claiming the bank's demand for more collateral triggered a liquidity squeeze that contributed to Lehman's failure. J.P. Morgan later countersued, arguing its traders actually benefited Lehman's creditors by avoiding a fire sale of the bank's assets in the days following Lehman's collapse.
Judge Peck trimmed some of Lehman's claims in that case, which is pending.
Earlier this year, the estate made its initial distribution to creditors, paying out $22.5 billion, more than double its original estimate. It plans to make a second distribution Oct. 1.
Lehman is also asking U.S. Bankruptcy Judge James Peck of Manhattan to force J.P. Morgan to return more than $230 million it says the bank illegally grabbed as so-called setoffs of amounts owed under derivatives transactions.
In addition to trading with Lehman, J.P. Morgan served as Lehman's clearing bank, providing cash advances of up to $100 billion a day to Lehman to facilitate overnight repurchase, or repo, agreements, a major element supporting the so-called shadow banking system. It held the collateral that Lehman pledged to secure the loans in the triparty repurchase agreements.
That role has resulted in J.P. Morgan being one of Lehman's key adversaries in numerous disputes surrounding the investment bank's demise as well as one of the largest creditors of the bankrupt holding company and its subsidiaries.
Lehman Brothers sued J.P. Morgan in 2010 for $8.6 billion, claiming the bank's demand for more collateral triggered a liquidity squeeze that contributed to Lehman's failure. J.P. Morgan later countersued, arguing its traders actually benefited Lehman's creditors by avoiding a fire sale of the bank's assets in the days following Lehman's collapse.
Judge Peck trimmed some of Lehman's claims in that case, which is pending.
Earlier this year, the estate made its initial distribution to creditors, paying out $22.5 billion, more than double its original estimate. It plans to make a second distribution Oct. 1.
and......
http://dailybail.com/home/report-senior-atf-agent-in-charge-of-fast-n-furious-gun-runn.html
REPORT: Senior ATF Agent In Charge Of Fast 'N Furious Gun Running Program Was Also Working For JPMorgan
Nice hire, Dimon.
Is there any fraud, theft, or border-patrol murder that doesn't haveJPMorgan's
fingerprints on it.
---
Meet Deputy Assistant ATF Director William McMahon
Washington Post
In an unusual arrangement, a senior official of the Bureau of Alcohol, Tobacco, Firearms and Explosives involved in the controversial gun operation Fast and Furious is receiving his government salary while working full time for the investment bank J.P. Morgan, according to two Republican lawmakers.
In a letter Tuesday to B. Todd Jones, the acting ATF director, Rep. Darrell Issa (R-Calif.) and Sen. Charles E. Grassley (R-Iowa) said that Deputy Assistant ATF Director William McMahon,who oversaw the agency’s Western region during the Fast and Furious operation, has been receiving two salaries simultaneously.
The lawmakers said the ATF apparently approved allowing McMahon to remain on paid leave for four or five months while working for the investment bank in order to reachretirement eligibility.
“ATF has essentially facilitated McMahon’s early retirement and ability to double dip for nearly half a year by receiving two full-time paychecks — one from the taxpayer and one from the private sector,” Issa and Grassley wrote.
McMahon is receiving a six-figure salary as an official in the ATF Office of Professional Responsibility and is serving as executive director of global security and investigations for J.P. Morgan in the Philippines, according to Issa and Grassley.
McMahon was one of five ATF officials recently singled out in a congressional report on the botched gun operation. The report alleged that McMahon knew that no safeguards were in place to prevent a large number of guns from getting into Mexico, but he made no effort to stop them.
and speaking of JP Morgan..... more silver games today....
http://www.silverdoctors.com/cartel-dumped-2x-annual-us-silver-production-on-market-in-15-min-to-smash-silver-under-35/
CARTEL DUMPED 2X ANNUAL US SILVER PRODUCTION ON MARKET IN 15 MIN TO SMASH SILVER UNDER $35
After silver exploded through $35 on this today’s COMEX open, 
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