The five biggest US banks preparing to go out of business

http://www.reuters.com/article/2012/06/27/us-banks-bailouts-wills-idUSBRE85Q0AZ20120627

By David Henry and Dave Clarke

NEW YORK/WASHINGTON | Wed Jun 27, 2012 4:29am EDT

(Reuters) - Five of the biggest banks in the United States are putting finishing touches on plans for going out of business ...

The plans, known as living wills, are due to regulators no later than July 1 under provisions of the Dodd-Frank financial reform law designed to end too-big-to-fail bailouts by the government. The living wills could be as long as 4,000 pages....

JPMorgan Chase & Co (JPM.N), Bank of America Corp (BAC.N), Citigroup Inc (C.N), Goldman Sachs & Co (GS.N) and Morgan Stanley (MS.N) are among those submitting the first liquidation scenarios to regulators at the Federal Reserve and the Federal Deposit Insurance Corp, according to people familiar with the matter.

The five firms, which declined to discuss their plans for this story, have some of the biggest balance sheets, trading desks and derivatives portfolios of financial institutions in the United States.

Fed Audit Legislation Passed by House Oversight Committee
http://www.bloomberg.com/news/2012-06-27...-committee.html

By Joshua Zumbrun - Jun 27, 2012

"A U.S. House committee approved legislation introduced by Representative Ron Paul that would subject the Federal Reserve to an audit of its activities, including monetary policy decisions.

The House Oversight and Government Reform Committee in Washington approved the bill today in a voice vote. The bill now advances to consideration in the full House.

Paul, a Republican from Texas and author of the book “End the Fed” calling for the abolition of the central bank, seeks through the bill to require an audit by the Government Accountability Office of the Fed’s board of governors and 12 regional banks." ...

http://www.stumbleupon.com/su/2q2Vxs/www...ouse-committee/

"In a nearly unanimous voice vote on Wednesday, the House Oversight Committee approved a bill that would require the U.S. Federal Reserve to conduct a first-ever complete audit of its books and divulge details about its monetary policy discussions."

Slovenia May Ask for Bailout in July, Prime Minister Jansa Says

http://www.bloomberg.com/news/print/2012...jansa-says.html

"Slovenia may ask for an international bailout if lawmakers fail to adopt legislation next month that would limit public spending, Prime Minister Janez Jansa said in an interview with a local radio station." ...


---------------

Now Is The Time To Prepare For The (Next) French Bailout Of Their Banking System & Potential Bailout Of France
http://www.zerohedge.com/contributed/201...ntial-bailout-f

"French bank Italian Exposure: As Italy pops with outrageous funding yields (just like Greece), France will be forced to bailout its banks once again, leaving the socialist country facing the dilemma of potentially having to ask for a bailout itself. As you may know from my previous writings, the French banking system is bigger than France itself so a true bailout cannot practically come from within."

Well, Drake has launch the GREEN LIGHT alert yesterday with a 72 hours notice to the public for the activation of "the Plan" to mass arrest the Cabals.

I do not know if the GREEN LIGHT came from the good guys of the Pentagon(Military) who design "the plan" or the ETs whom Drakes believes will intervene with their own plan if the Military doesn't act. Personally, I have my doubts about Drake since he became impatient with the Military for not acting quick enough.

Benjamin Fulford don't believe it will happen now and hopes that this fall the Cabals will be out of monetary resources and won't be able to keep their 30,000 highly paid guards. Then this would allow a more peaceful arrest with the lease casualies on both sides. Anyway, time will tell.

Here's Drake's website for more info on the GREEN LIGHT alert.

http://americannationalmilitia.com/2012/06/green-light/

Maybe I wasn't clear. I was speaking of it's value at total anarchy, total collapse.
Do you see that's where we're headed as shown in the trend in Elle's posts?

Many things has been happening, but been too busy to report. Here's a very good simple explanation about the recent Libor/Barclays scandal. The biggest scandal there is which involves 16 biggest banks.



As the Lord brings the sins of Mystery Babylon out in the open, the people of the world will demand they be prosecuted for their crimes... time to stop supporting her and get out of her money racket.

Since last year I've been hearing from top economists or ex traders predicting that by the end of 2012 all paper assets(stocks, bonds, etc..) will be worth nothing. Potentially most currencies also. It is time to transfer your assets to something that will retain its value like silver and gold. Act with the leading of the Spirit and not out of fear.

This is not dooms day but a Jubilee, a liberation, great news. The Lord gave us a TYPE of what is to come -- look at Iceland.

German Police Officers Take Off Helmets & Marched With German Citizens Against Rothschild European Central Bank!

"The German police took off their helmets and marched with the protesters, clearing the way for them.


"Blockupy Frankfurt. Police are escorting. Reports 20,000+ protesters.

Who Owns The European Central Bank?


The same people who own the Federal Reserve and who owned the first national bank of America, The Second national bank of America, The Bank of England. The same people who has been responsible for almost every war on earth…

The Rothschild A.K.A. The Illuminati who are satanist."

Major banks say they are ready to go under

http://rt.com/business/news/banks-cr...ure-plans-381/


The US Federal Deposit Insurance and Federal Reserve released public summaries of plans for quick liquidation of nine of the world’s largest banks in the case of an emergency, without government bailouts.

Complex financial firms with more than $250 billion in nonbank assets including J.P. Morgan Chase, Bank of America, Citigroup Inc., Goldman Sachs Group Inc., Morgan Stanley, Barclays PLC, Deutsche Bank, Credit Suisse and UBS were the first to prepare the worst case scenarios by July 1. In total, about 125 banks are expected to submit plans to the regulators by the end of 2013.

Public summaries reveal that Morgan Stanley and Goldman Sachs plan to sell assets or stand-alone businesses to other financial firms, private-equity investors or insurance companies in the event of a collapse. Citigroup said its banking business could be split off from the parent company and recapitalized as a smaller bank. Credit Suisse plans to sell its businesses to hedge funds, banks and securities firms.

Meanwhile Barclay’s paper is already out of date after the resignation Tuesday of CEO Bob Diamond and COO Jerry Del Missier.

Banks are required to give the government the tools to wind them down in a case of failure under provisions of the Dodd-Frank financial reform law designed to end the practice of bailing out “too big to fail” banks by the state. The act aims to secure the financial system from turmoil such as followed the collapse of Lehman Brothers or Bear Stearns in 2008.

Big Banks Have Criminally Conspired Since 2005 to Rig $800 Trillion Dollar Market

http://lucas2012infos.wordpress.com/...t-2-july-2012/


Submitted by George Washington on 07/01/2012 21:40 -0400


We noted Friday:

Barclays and other large banks – including Citigroup, HSBC, J.P. Morgan Chase, Lloyds, Bank of America, UBS, Royal Bank of Scotland– manipulated the world’s primary interest rate (Libor) which virtually every adjustable-rate investment globally is pegged to.

***

That means they manipulated a good chunk of the world economy.
We actually understated the impact of the Libor scandal.

Specifically, more than $800 trillion dollars worth of investments are pegged to the Libor rate. As the Wall Street Journal reports today:

More than $800 trillion in securities and loans are linked to the Libor, including $350 trillion in swaps and $10 trillion in loans.
(Click here if you don’t have a subscription to the Journal).

Remember, the derivatives market is approximately $1,200 trillion dollars. Interest rate derivatives comprise the lion’s share of all derivatives, and could blow up and take down the entire financial system.

The largest interest rate derivatives sellers include Barclays, Deutsche Bank, Goldman and JP Morgan … many of which are being exposed for manipulating Libor.

They have been manipulating Libor on a daily basis since 2005.

They are still part of the group of banks which sets Libor every day, and none have been criminally prosecuted.

They have received a light slap on the wrist from regulators, which – as nobel economist Joe Stiglitz points out – is just the cost of doing business when fraud is the business model.

Indeed – as Bloomberg notes – they’re probably still manipulating the rate:

The U.K. bankers and regulators charged with reviewing Libor in the wake of regulatory probes are resisting calls to overhaul the rate because structural changes risk invalidating trillions of dollars of contracts.

The group, established by the British Bankers’ Association in March after probes into allegations that traders rigged the London interbank offered rate … won’t propose structural changes such as basing the rate on actual trades or taking away oversight of the benchmark from the BBA, the people said.

Libor is determined by a daily poll that asks banks to estimate how much it would cost them to borrow from each other for different timeframes and in different currencies. Because banks’ submissions aren’t based on real trades, academics and lawyers say they are open to manipulation by traders. At least a dozen firms are being probed by regulators worldwide for colluding to rig the rate, the benchmark for $350 trillion of securities.

“I don’t see a significant enhancement to the reputation of Libor without basing it on actual transactions,” said Rosa Abrantes-Metz, an economist with Global Economics Group, a New York-based consultancy, an associate professor with New YorkUniversity’s Stern School of Business and the co-author of a 2008 paper entitled “Libor Manipulation?” [Shah Gilani also warned of Libor manipulation in 2008, and Tyler Durden, Max Keiser and others started sounding the alarm at or around the same time.]

“It would only be disruptive if current quotes are inaccurate,” so resistance “is suspicious,” she said.

***

Traders interviewed by Bloomberg in March at three firms said they were given no guidance on how Libor should be set and there were no so-called Chinese walls preventing contact between the treasury staff charged with submitting the rate and traders who stood to profit on where Libor was set each day. They regularly discussed where Libor would be set with their colleagues and their counterparts at other firms, they said.

“Sadly the response looks to be very consistent with the response of policy makers to the banking disasters we’ve seen over the last four years — cosmetic changes, but nothing substantial happens,” said Richard Werner, a finance professor at the University of Southampton. “It’s insufficient and doesn’t really go to the heart of the problem.”

LIBOR Banking Scandal Deepens; Barclays Releases Damning Email, Implicates British Government

http://www.rollingstone.com/politics/blo...rnment-20120704
POSTED: July 4, 11:35 AM ET


This Libor-manipulation story grows crazier with each passing minute. We have officially disappeared now down the rabbit-hole of the international financial oligarchy.

Former Barclays CEO Bob Diamond is testifying before parliament in London today, and that's sure to bring some shocking moments. But there's already been one huge stunner . In advance of that testimony, Barclays released an email from October 29, 2008, written by Diamond to then-Chairman John Varley and COO Jerry del Messier (who also stepped down yesterday). The email from the CEO to the other two senior Barclays execs purports to detail the content of the conversation Diamond had with Bank of England deputy governor Paul Tucker that same day.

In the email, Diamond essentially tells the other two execs that he has been given permission by Tucker – encouraged, actually – to rig Libor rates downward. What’s even worse is that Diamond’s email suggests that Tucker was only following orders, i.e. that Tucker had received phone calls from "a number of senior figures within Whitehall" – that is, the British government – expressing concern about Barclays' high Libor rates. Tucker in this version of events was acting as a middleman for the British government, telling Diamond to fake his borrowing rates in order to preserve the appearance of financial stability, for the good of Queen and country as it were.

[picture of email provided at Matt Taibbi TAIBBLOG]


Again: Libor, the London Interbank Exchange Rate, is the rate at which banks borrow from each other. A huge percentage of the world’s variable-rate investments are pegged to Libor. When Libor rates are high, it suggests that the banks’ confidence in each other is low, and high Libor rates are generally an indicator of shaky financial health among the banks. If the banks manipulated Libor, they did it to make themselves look healthier, but this had the consequence of affecting hundreds of trillions of dollars’ worth of financial products worldwide.

During the crash of 2008, governments understandably would have been concerned about high Libor rates – high rates and a lack of confidence in banks threatened economic stability – but the notion that governments would have encouraged banks to fake those rates would have been beyond unthinkable even a decade ago.

Back to the email. Diamond’s version of the conversation with Tucker, if true, is mind-blowing. To paraphrase, Diamond said that Tucker started off by asking Diamond why other banks were reporting such low borrowing rates relative to Barclays.

Diamond apparently deadpanned that his bank’s problem was that it was reporting the real numbers, while all the other banks were lying. "I asked [Tucker] if he could relay the reality, that not all banks were providing quotes at the levels that represented real transaction," Diamond wrote.

Tucker then steered Diamond to crime using the painfully oblique manner of an English gentleman trying to engage a prostitute without using any dirty words. He told Diamond that "while he was certain [Barclays] did not need advice,” the bank did not necessarily need to report such high rates all the time. Tucker put it this way: “It did not always need to be the case that [Barclays] appeared as high as [it has] recently."

This email amazes for a few reasons. One, it suggests that Barclays, which is currently carrying the standard in the LIBOR-manipulation scandal, was actually bringing up the rear -- that all of the other banks were in on it, and Barclays only attracted the government's notice because they were last.

The second is the apparent revelation that Tucker was acting on orders, or at least suggestions, from Whitehall. If nothing else, this is an awesome piece of political jungle defense by Diamond, tossing a hand-grenade into the seat of Her Majesty's government minutes before he's supposed to be grilled by parliament. This revelation is almost certain to inspire an Aldrich-Ames-style manhunt for the Whitehall figures responsible for this alleged communication to Tucker. And if this turns out to be true? Wow.

Of course, right now, we only have Diamond's word that it is, and under normal circumstances his word should mean less than nothing. The disgraced ex-CEO, who last year infamously said it was time for banks to stop apologizing, will likely now replace Jamie Dimon (who replaced Lloyd Blankfein, who replaced Angelo Mozilo, etc.) as the reigning hateable-white-guy Face of World Financial Corruption, so he'll have a difficult time if this whole thing comes down to a test of his public credibility.


But we already know that this Tucker-Diamond conversation did in fact take place, and that LIBOR was discussed.

Anyway, more on this after the testimony...