Taibbi: The $9 Billion Witness - The Deal Manager That JPM Did Not Wish to Tell Her Story

"Corruption is why we win."

Danny Dalton, Syriana


"It was like watching an old lady get mugged on the street. I thought, 'I can't sit by any longer'... Every time I had a chance to talk, something always got in the way... I could be sued into bankruptcy. I could lose my license to practice law. I could lose everything.

But if we don't start speaking up, then this really is all we're going to get: the biggest financial cover-up in history."

Alayne Fleischmann, quoted in The $9 Billion Witness

It's nice to see Matt writing again about financial shenanigans.

Isn't it amazing how the sports editor at Rolling Stone magazine, and small blogs on the internet, keep coming up with amazing scoops and stories about financial corruption that are completely missed or glossed over by the mainstream media?

Confidence!  

Best markets, financial system, and news media, ever.   If you are a member of the one percent.

The $9 Billion Witness
By Matt Taibbi
November 6, 2014

Meet the woman JPMorgan Chase paid one of the largest fines in American history to keep from talking

...Fleischmann is the central witness in one of the biggest cases of white-collar crime in American history, possessing secrets that JPMorgan Chase CEO Jamie Dimon late last year paid $9 billion (not $13 billion as regularly reported – more on that later) to keep the public from hearing.

Back in 2006, as a deal manager at the gigantic bank, Fleischmann first witnessed, then tried to stop, what she describes as "massive criminal securities fraud" in the bank's mortgage operations.

Thanks to a confidentiality agreement, she's kept her mouth shut since then...

Six years after the crisis that cratered the global economy, it's not exactly news that the country's biggest banks stole on a grand scale. That's why the more important part of Fleischmann's story is in the pains Chase and the Justice Department took to silence her....

Read the entire article at Rolling Stone.

Lawsuit: CME Futures Market Creates 'Guaranteed Winners and Guaranteed Losers'

How appropriate that this morning Bart Chilton is appearing on Bloomberg TV with Terry Duffy, President of the CME, laughing it up with the 'news anchors' about 'Why Today's Markets Are Better Than Ever.'

I suppose that the US markets of today are quite efficient and effective. 

The public may just not understand in 'what way' they are intended to be efficient.

And may the odds be always in your favour.

This is a very brief excerpt of a well written story from Wall Street On Parade.

You may read it in its entirety here.
 

Lawsuit: Chicago Futures Market Creates “Guaranteed Winners and Guaranteed Losers”
By Pam Martens
November 6, 2014

Last week three futures traders told a Federal court in Chicago that it’s not just the high frequency trading firms that are reaping a windfall but the exchanges who are engaged in a conspiracy with them to create guaranteed winners and guaranteed losers...

But what Judge Charles P. Kocoras has been hearing in this case for months are these hair-raising charges of 'clandestine contracts' between the futures exchanges and high frequency traders; that the exchange is giving high frequency traders early peeks at data before the rest of the market under a process known as the 'Latency Loophole'; and that potentially as much as 50 percent of the trades on the exchange are 'wash trades.'

Gold Daily and Silver Weekly Chart - Send In the Clowns

Gold and silver were hit again rather hard last night, with a large number of contracts dumped at market during quiet periods.  This is a deliberate series of actions that are part control fraud, and part currency war. 

It is as much the predations of private money as it is government meddling.  Big money and government are in a corrupt partnership.   Those who have simplified their world views with slogans about getting rid of government do not get this.  But they will get it, and it will hurt.

This is not a problem for the Comex, which is essentially just a game.

This is going to be a huge problem for the miners, and those countries and people who depend on them. It is a problem down the road for those whose bullion has been leased out and sold by the banks into the metals markets.

For some miners, allied as they are with bullion banks in forward sales and hedges, it will be an opportunity to obtain more reserves and assets on the cheap from acquisitions and line their pockets, their shareholders be damned with the writedowns that follow.

For some analysts and industry organizations, it is a great opportunity to go along to get along, and get paid.

For some on Wall Street, this is just another brick in the wall of their historic transfer of wealth through control frauds. They are growing fat, picking the bones of the lower and middle classes.

For some well intentioned but incredibly naïve people who have been swept up in the political slogans of demagogues, it will be a great time to feel good, to believe that they at last are finally members of The Club, one of the In-Crowd, to feel that they are winning

But unfortunately for most, it will ultimately prove to be a pyrrhic victory when this long running scheme unwinds, and people start to stand up and say no, and stop acting out of emotions and anger and spite at each other.  And when enough of them do it, there will be real change.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Fantasy Island

There will be a Non-Farm Payrolls report for October on Friday.

Now that the elections are over, perhaps the government can stop window-dressing the statistics.

Have a pleasant evening.