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The biggest fraud that you haven't heard of
Submitted by midtowng on Tue, 04/06/2010 - 20:14
fraudgoldsilver
Fraud traditionally occurs behind closed doors. The larger the fraud, the more chances of its existence leaking out to the public. Only after the scheme has blown up does the news media report it.
Fraud has a short lifespan once it is subject to the harsh rays of sunlight. It is only a matter of time before the lies on which it is built come crumbling down.
Last week a massive case of fraud was exposed to the light, but because it hasn't imploded yet the mainstream news media isn't reporting it. In fact, the media seems to want to ignore the facts.
Why? Not because they question the facts, but simply because of the subject of the fraud - precious metals.
The normal reaction to the claim that precious metal prices are manipulated is usually an eye-roll and either a dismissive sigh or a guffaw. It's hard to even get someone to hear the facts because the subject is taboo. Just talking about it gets you lumped in with conspiracy theorists such as JFK's second gunman, the 9/11 conspiracy, and the people who claim the Federal Reserve works on behalf of Wall Street banks.
The bias against precious metals is beyond irrational. Even now, after a nine year bull market in gold prices, most people would never dream of owning any. They are still speculating on stocks, despite a 10-year bear market, or real estate, despite a four year bear market. What's wrong with this picture?
It's strange that so many people think that manipulation of the precious metals market is a cuckoo idea when manipulation of oil prices is accepted by the mainstream. What's more, governments have been openly manipulating precious metal prices since the Roman Empire, and doing it behind closed doors just a few decades ago. Is it really so hard to believe that they are still doing it?
The Whistleblower
Andrew Maguire is a metals trader in London. He had nothing to gain by contacting the Commodity Futures Trading Commission on February 3rd to alert them about a price manipulation event in the silver market by JP Morgan that would happen in two days. He described the scenario of how it was going to play out.
"It is common knowledge here in London among the metals traders that it is JPM's intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits."
- Andrew Maguire
On February 5, as the metals price smackdown happened exactly as he foretold, he emailed the CFTC and explained to them what was happening in real time. His emails can be seen here.
Six weeks later, when the CFTC began holding hearings to tighten regulations, Maguire became angry that he wasn't invited to testify. So he contacted Bill Murphy from the Gold Anti-Trust Action Committee and gave him his information so he could go public with it.
Coincidentally, the very next day after going public, Andrew Maguire and his wife were driving in London when a car sped out of a side street and struck their car. Both Maguire and his wife were injured, but not serious. The car then sped off, nearly running over pedestrians in an attempt to get away.
A few days later, the popular economic website King World News, obtained a half-hour interview with Maguire. Within a day of posting the interview, the web site was brought down with a Denial of Service attack.
If this sounds familiar, its because you've recently heard a story much like it. When whistleblower Harry Markopolos tried to expose Bernie Madoff's ponzi scheme to the SEC, the SEC refused to act. The CFTC also refused to act on Maguire's information. Markopolos ended up carrying a gun because he feared for his life.
How does this work?
On August 16, 2006, the London Metals Exchange (LME), the largest base metals exchange in the world, went into default.
"Those with short positions in nickel falling prompt on Friday 18 August 2006, and on subsequent prompt dates until further notice, who are unable to effect physical delivery an/or unable to borrow metal at a backwardation of no more than $300.00 per tonne per day, shall be able to defer delivery for a day at a penalty of $300.00 per tonne."
...
While Mr. Heale states that the action by the exchange is designed to prevent default, the action taken is nothing but a declaration of default, rendering his statement as absurd. Default is a simple word. Any time you unilaterally violate or negate the terms and conditions of any legal contract, that contract is in default. Period.
What does it mean when contracts on commodities can be unilaterally changed? And more importantly, how is it possible that there were more short positions than there was physical nickel to deliver?
It's called Naked Shorting, and basically means "selling something you don't own".
Obviously, naked shorting can be immensely profitable as long as you don't get caught. Since the SEC and CFTC have basically been asleep at the switch for years, the danger of getting caught is low.
However, that isn't the only way that naked shorting can blow up on you. When you naked short a commodity there better be enough physical inventory of that commodity to satisfy short-term demand. Otherwise someone who wants, say, a few tonnes of nickel might ask you to cover your naked shorts. That's what triggers a default.
Which brings us back to the silver market.
When JP Morgan Chase took over Bear Stearns in 2008, it also inherited its huge short positions in the silver market. When those short contracts were about to mature in the summer of 2008, something funny happened.
As of July 1, 2008, two U.S. banks were short 6,199 contracts of COMEX silver (30,995,000 ounces). As of August 5, 2008, two U.S. banks were short 33,805 contracts of COMEX silver (169,025,000 ounces), an increase of more than five-fold. This is the largest such position by U.S. banks I can find in the data, ever. Between July 14 and August 15th, the price of COMEX silver declined from a peak high of $19.55 (basis September) to a low of $12.22 for a decline of 38%.
The crash of silver prices caused those Bear Stearns short positions to go from big loser to big winners for JP Morgan Chase. It was also such an obvious manipulation that even the sleepy CFTC took notice and started an investigation that has culminated with the recent March hearings. The hearings were supposed to be a non-event, but the revelations from it are leaking out despite an effective news media blackout.
Would you be surprised to learn that the cameras had a "technical malfunction" during Bill Murphy's statement, which magically righted itself immediately after he finished?
After the hearing, according to Douglas, Murphy was contacted by several major media outlets for more interviews. Within 24 hours, all the interviews were canceled. All of them.
Probably the most startling revelation during the hearings came from Jeffrey Christian, a former Goldman Sachs staffer, who told the regulators that the "LBMA trades over 100 times the amount of gold it actually has to back the trades."
Christian is no gold bug. In fact he came there to testify against trade limits. Yet he also admitted to the bullion market banks being leveraged at 100-to-1. To put that into perspective, Bear Stearns was only leveraged at 30-to-1 shortly before it failed. Adrian Douglas put this into perspective at the hearings:
A. Douglas: We are talking about the futures market hedging the physical market. But if we look at the physical market, the LBMA, it trades 20 million ozs of gold per day on a net basis which is 22 billion dollars. That’s 5.4 Trillion dollars per year. That is half the size of the US economy. If you take the gross amount it is about one and a half times the US economy; that is not trading 100% backed metal; it’s trading on a fractional reserve basis. And you can tell that from the LBMA’s website because they trade in “unallocated” accounts. And if you look at their definition of an “unallocated account” they say that you are an “unsecured creditor”. Well, if it’s “unallocated” and you buy one hundred tonnes of gold even if you don’t have the serial numbers you should still have one hundred tonnes of gold, so how can you be an unsecured creditor? Well, that’s because its fractional reserve accounting, and you can’t trade that much gold, it doesn’t exist in the world. So the people who are hedging these positions on the LBMA, it’s essentially paper hedging paper. Bart Chilton uses the expression “Stop the Ponzimonium” and this is a Ponzi Scheme.
[...]
J. Christian: If you start putting position limits on bona fide hedgers for example, the bullion banks, and the previous fellow was talking about hedges of paper on paper and that is exactly right. Precious metals are financial assets like currencies, T-Bills and T-bonds they trade in the multiples of a hundred times the underlying physical...
This is a mind-blowing admission. Unlike financial assets like T-Bills, gold is a physical asset, yet it is being treated like a piece of paper by these markets. What's more, the leverage against these physical assets is nothing but paper on top of more paper at levels that no regulator would ever allow at a commercial bank.
It's very similar to the Madoff ponzi scheme.
In case you think that Mr. Christian misspoke, he later said:
People say, and you heard it today, there is not that much physical metal out there, and there isn't. But in the "physical market," as the market uses that term, there is much more metal than that. There is a hundred times what there is.
I've got news for Mr. Christian - there can only be as much of something as there is, not 100 times of it.
What Christian is doing is saying that there is no difference between the physical metal and the the paper product it represents, no matter how much paper there is. Or to put it another way: "it has been persistently that way for decades" and "there are any number of mechanisms allowing for cash settlements."
A cash settlement is a default. Period. That's fine when you are talking about T-Bills, but not when you are talking about something tangible.
JP Morgan and HSBC control between 85% and 100% of the futures market for gold and silver. That's a monopoly by any definition, and it can smash down the price whenever it wants to as long as a large percentage of the traders don't take physical delivery.
If this sounds too much like conspiracy, consider that JP Morgan was forced to pay its customers millions of dollars in 2007 to settle a lawsuit where was charging 22,000 clients storage fees on silver bullion that didn't exist.
Now imagine that you are a large Asian financial client that is paying the LBMA banks to store your gold and silver. After hearing this news you decide to take delivery of it. Oops! The gold and silver don't exist.
You then have what amounts to a bank run. If the world assumes that there is X amount of a commodity in the world, when there is in fact only a 100th of that amount, what do you think will happen to the price of that commodity?
Now Goldman is warning about "violent price spikes" in commodities. Perhaps they realize that the ponzi scheme is coming to an end.
In Perspective
The net commercial short position on precious metals is beyond suspicious. At various times it has gone from 10% of worldwide silver production, to over 40% of world yearly production.
In comparison, short positions on NYMEX crude oil is generally about a day or two's worth of global production.
So what is the purpose of the manipulation?
For starters, any price manipulation, whether it goes up or down, is designed to fleece the sheeple. People that put their money into a rigged market without insider knowledge constitute suckers. They are all "marks". It doesn't matter how or why.
As for precious metals, the rigging is only one way - down. Since the days of the Roman Emperors it has always been this way. The smackdown that Maguire warned about was designed to push down the prices. The massive naked shorting is further proof.
While this makes some sense for governments, why would banks be so keen on suppressing the prices of precious metals?
Just see Christian's testimony above. "Precious metals are financial assets like currencies..." That's how Wall Street perceives gold and silver.
Precious metals are a barometer for measuring the strength of financial assets like currencies. By artificially suppressing the price of gold and silver, it gives the false impression of strength for the financial assets that the banks sell to their clients. Sort of like AAA ratings on subprime mortgage-backed securities.
How about the multi-year bull market in gold and silver? Instead of proving that the price suppression is false, it proves that the ponzi scheme is breaking down. It is a fighting retreat. The equivalent of "extend and pretend".
There is no longer a question as to whether the price of gold and silver are being suppressed. Whistleblowers like Maguire, the data collected by GATA, and the testimony at the CFTC hearings has put that question to rest. The only questions now are how and when the ponzi scheme ends.
Electronic records are replacing paper stock certificates
Updated 5/25/2010 12:30 AM For many of us, the three most important pieces of paper in life are the birth certificate, stock certificate and the death certificate. One of those is rapidly vanishing.
The iconic symbol of capitalism and stock ownership for centuries, the paper stock certificate, is becoming more of a historic relic than a real record of ownership for investors.
"Stock certificates are on life support," says Lance Lee, founder of OneShare.com, which sells investors framed paper stock certificates. "Everything is put in place where (the industry) could just pull the plug."
The decline in paper stock certificates has been dramatic. Just 1.6 million paper stock certificates remain in the vault of the Depository Trust & Clearing Corp., a leading firm responsible for tracking stock ownership. That's down from 1.9 million last year, 8 million in 2000 and 32 million in 1990.
Reason for being evaporates
Paper stock certificates used to be the only way for investors to prove and record stock ownership. That's no longer the case, due to:
•Rapid acceptance of technology. An industry database, the Direct Registration System, has caught on that lets companies, brokers and regulators keep track of shareholders electronically. Regulators gave DRS another push last year by requiring that all major public companies be eligible to be in the system.
•Regulation allowing companies to banish paper. Companies are no longer required to provide paper certificates, and an increasing number are opting out, says Joe Clemente of the Depository Trust & Clearing Corp., or DTCC, which operates DRS. More than 420 of the 7,000-plus publicly traded securities — including names such as Visa, Intel, Tupperware, Tiffany, Sears and Chevron — don't print paper stock certificates anymore.
•Waning demand The number of investors asking for paper stock certificates continues to dwindle. Spokespeople for brokerages Charles Schwab, E-Trade, TradeKing and Zecco all say demand for paper certificates continues to drop if not vanish.
•Fees designed to discourage paper certificates. Charges and fees designed to push investors toward electronic records are rising. Many brokers charge customers $500 or more to produce a paper certificate. That's because they're passing along a fee they're charged by the DTCC, which is using the fee to coax investors to go paperless.
Cumbersome and costly
Proponents of the move to kill off stock certificates, called dematerialization, say it benefits everyone.
Paper stock certificates are cumbersome and costly for the industry to process, resulting in higher fees and slower turnaround time for transactions, says Kevin Brennan, managing director of BNY Mellon, a large transfer agent hired by companies to track their shareholders.
Bob Kerstein, who operates paper stock certificate-collecting website Scripophily.com, agrees paper stock certificates have their drawbacks. Investors who lose certificates, such as from theft or fire, must pay large fees to have them replaced.
Also, investors who lose track of certificates, either after moving or just from forgetfulness, risk forfeiting their stock as unclaimed property. Certificates are "a great piece of history, and nothing else," Kerstein says.
In some ways, it's amazing paper stock certificates still exist, says DTCC's Clemente. U.S. government debt securities are all electronic, as are mutual fund records and stock markets in most other developed nations, he says.
Resistance arises
But while the industry can't bail on paper certificates fast enough, some investors resent companies and brokerages that are making it so hard to get them.
Shirley Pullan, 83, wanted a paper Google certificate to give to grandchildren as a gift, as well as to serve as tangible evidence that she owned a piece of the search engine. Her online discount brokerage told her it would cost hundreds of dollars. "It would be nice to have (a certificate), and who wants to pay $500?" she says.
Francis Cordell, 77, says he wants to hold some of his stock on paper certificates in case the financial system is strained, so he'll have something tangible. His broker was unable to help, he says.
Such demands are why the securities industry must give investors the option to get paper certificates, says Jean Setzfand, director of financial security for AARP. "There shouldn't be a financial penalty for it," she says.
Investors willing to do some legwork can still get paper stock certificates for free, as long as the company is still issuing them, says Charlie Rossi, president of the Securities Transfer Association and an executive of Computershare, a top transfer agent.
Shareholders must first instruct their brokerage to put the shares directly in their name on the transfer agent's books. Most brokers don't charge for this, but some do. Investors must then call the transfer agent and request a paper certificate. Neither Computershare nor BNY Mellon charge for paper certificates, though smaller transfer agents do. "Certificates are still there, just less and less so," Rossi says.
Comes with artwork
Some companies say paper certificates still serve a purpose and have no plans to do away with them. Disney, famous for its stock certificate adorned with drawings of its famous characters, mails certificates to investors for no charge, spokesman Jonathan Friedland says. Disney certificates are treasured by many investors, he says. "It is relatively expensive," he says. "But it's something we do for our shareholders." Disney doesn't charge, but there is a $250 minimum investment — nearly eight shares at the stock's current $32.48 price.
But for most companies, the future will likely be paperless, OneShare's Lee says. While regulators aren't banning stock certificates, they're certainly allowing the industry to discourage them, he says.
"We're losing another touchstone to our physical existence, and a pretty one at that," he says. "It's the end of an era."
The Destruction of the American Economy
The Office of Financial Regulation presentation April 22nd, 2011 The Destruction of the American Economy.
How the hell did this happen, who’s to blame, and how we can get America back on track.
For those American Taxpayers mad about the Wall Street Bailouts, mad about the free falling economy, mad that the unemployment rate is skyrocketing, mad at your depleted 401K portfolios, this is a must read article.
This article will expose everything dirty about Wall Street and our Market Regulators. The crimes committed by the Wall Street Financial Banks/Brokers that lead to the Credit Crisis will be exposed. Crimes that our leaders in Washington and our Market Regulators are so desperately trying to hide from public view.
This report will detail all aspects of the Credit Crisis. You will learn that the Credit Crisis was caused by a combination of risky leveraged derivative bets, which are simply bank gambling debts and by the counterfeiting of stock securities, known as Naked Shorting. This report will detail who participated in these actions, this report will Name Names!
You will learn why the bailout of the banks will ultimately cost American Taxpayers tens of trillions of dollars more then what our leaders are currently forecasting. You will learn what the devastating effects the bailouts will have on our future and our children’s future.
Finally, this report will outline a simple plan that will force the clean up of Wall Street, which should then help turn our economy around.
Who am I and how do I know all this? I am a shareholder of a small company called Bancorp International. Bancorp International, known as BCIT is a small start up company, which was on its way to building itself into a growing successful company, before it was viciously targeted and attacked. The story of BCIT will shock and anger most hard working Americans.
The BCIT and its shareholders are victims of an orchestrated criminal act called Naked Short Selling. We have witnessed the horrors of Naked Shorting first hand.
Naked Shorting is a practice that the large Wall Street Financial Banks/Brokers used to rig the stock market for huge profits by counterfeiting the stock of targeted individual companies with the intent of bankrupting them. Yes counterfeiting of stock!!!
How big is Naked Short Selling? Naked Shorting makes the Bernard Madoff scandal look like a small parking infraction, that’s how big Naked Shorting is!
The fact is the Naked Shorters have counterfeited stock in thousands of American companies over the past few years. The Naked Shorters have stolen trillions away from these companies and their shareholders. Hundreds of thousands of jobs were lost with the destruction of these companies, making Naked Shorting the largest act of Financial Terrorism ever inflicted on the American people.
Yet our own Market Regulators and Congressional leaders have done nothing to stop this. They have turned a blind eye to the plight of all these American companies and their shareholders. They have been well aware of Naked Shorting for years and refused to enforce the laws that would have stopped Naked Shorting. Now they even refuse to go after the criminals, who were involved in Naked Shorting.
The reason why our Market Regulators and Congress refuse to go after the Naked Shorters is because it is the large Wall Street Financial Bankers/Brokers doing the crime.
The evidence in this report will clearly show that in today’s America the large Wall Street Financial Bankers/Brokers are above the law. They hold all the power and are the puppet masters that really run the American Economy, while Congress, the SEC and the DTCC are just their puppets.
Note 1: The Security and Exchange Commission, the SEC, is the police force for Wall Street. Their top job is to protect the public.
Note 2: The Depository Trust Clearing Corporation, the DTCC’s is a private company whose job is to oversee the settlement of virtually all the trades in the United States Market. In other words, the DTCC’s main job is to make sure the brokers are delivering real shares and not counterfeit shares to the investment public.
Note 3: The Senate Committee on Banking, Housing, and Urban Affairs is a Congressional Committee responsible for overseeing the SEC, the Stock Market, and the Banks. They are the ultimate watchdogs of the Economy.
The SEC under the leadership of former Chairmen Christopher Cox, the DTCC under the leadership of Donald F. Donahue and the Senate Committee on Banking, Housing, and Urban Affairs led by Republican Richard Shelby and Democrat Christopher Dodd all are guilty of betraying the American Public.
They all should be immediately fired and all should be investigated for fraud and possible kickbacks. Under their watch they allowed the large Wall Street Financial Banks/Brokers to destroy and pillage the American Economy. These individuals sat back and did noting while the financial elite counterfeited shares of companies like BCIT & CMKX & Siri and thousands of other companies.
BCIT the Smoking Gun.
BCIT is the smoking gun. BCIT has undeniable proof that well over 350 million counterfeit shares of BCIT stock were created by the large banks/brokers. Furthermore, BCIT’s case shows that the SEC, the DTCC and Congress were all well aware of this and refused to do anything about it. The Naked Shorting criminals pocked well over 50 million dollars from the counterfeiting of BCIT stock alone.
After we provide our evidence, we hope you the American Public will begins to understand how broken our Economy really is and will help us spread the word about what is really happening within our economy.
All it takes is for one person to stand up to the injustices and say enough is enough followed by another, then another and soon a movement is born. We hope this report will start such a movement and that you will stand up with us.
We only ask that you forward this report on because this effects EVERY AMERICAN CITIZEN!
Only through public awareness and public pressure will we succeed in getting rid of the criminals that run Wall Street. Only through public awareness and public pressure will we be able to make the changes necessary to fix our Economy.
Without these changes our kids will inherit an America that is a shell of itself. An America with staggering higher taxes, a lower standard of living, and fewer job opportunities. Conversely the Wall Street rich and powerful will continue to get away with their criminal activates against their fellow Americans without any consequences.
Two hundred years ago, our forefathers would have gathered up their guns and pitchforks and used them to run all of the Wall Street Financial Bankers/Brokers, Market Regulators and Congressional Leaders that caused the Credit Crisis out of town.
Today we do the exact opposite. Instead of punishing those who caused the Credit Crisis we bail them out. They destroyed our economy and we reward them by giving them trillions of dollars.
We must change this. The day the large Wall Street Financial Banks/Brokers became greater than the law was the day that the American Economy’s fate was sealed.
We must make the large Wall Street Financial Banks/Brokers accountable for their actions. We must make our Congressional leaders and Market Regulators accountable for not doing their jobs. Accountability must mean firings and jail time for those involved in causing the Credit Crisis or nothing will ever change.
The Credit Crisis
The Credit Crisis is the reason our economy is now in a freefall. Without a Credit Crisis, America would not be knee deep in a recession right now.
The two major causes of the Credit Crisis were risky Leveraged Derivative Bets and Naked Short Selling.
Credit Crisis Causes #1: Leveraged Derivative Betting
Derivatives are used by banks and other major businesses to hedge risk, make a market, or to engage in speculation. Speculation is the Motherload of all EVIL. In other words, derivatives are basically big bets made with a tremendous amount of leverage. Derivative bets can be made on anything like stocks, bonds, currencies, commodities, the housing market, etc. The housing market was the bet of choice by many on Wall Street.
A typical Wall Street Bank/Broker with 1 billion dollars in hard assets was allowed to borrow 50 to 100 billion dollars and then wager that money on the derivative market. When the housing market was going up the Wall Street Banks were making billions on their leveraged bets. The more money they made the riskier bets they made. In good times the high leveraged bets resulted in insane year-end bonuses for all those employed at these Wall Street Banks/Brokers.
The music stopped when the housing market and other derivatives turned south.
What do you suppose happens to that 50 billion dollar housing market bet in a free falling housing market?
A twenty percent housing market downturn would result in a 10 billion dollar loss on the original 50 billion dollar housing market bet. How then does a bank cover a 10 billion dollar loss when the bank only has 1 billion dollars in real value? Can you say “Taxpayers Bailouts”!
Total of the Taxpayer Bailouts
So what is the total value of the combined bets Wall Street made on the derivative market?
If we know this we can quantify how big the total losses will be. This will tell us how much bailout money the banks and Wall Street will ultimately need.
World GDP is about 50 trillion dollars, which represents all of the world’s total hard assets. In 2001 the derivative market was also roughly 50 trillion dollars. This is economically sustainable because 50 trillion dollars of derivative bets were backed by 50 trillion dollars of real assets, an equal 1 to 1 ratio.
However, the derivative market went from 50 trillion in 2001 to a staggering 700 trillion by 2007, all because of leveraged borrowed money.
The ratio of GDP (50 trillion) to the derivative market (700 trillion) went from a realistic 1 to 1 ratio to an unsustainable 1 to 14 ratio all because of GREED from the likes of Goldman Sachs, Citigroup, Morgan Stanley, Bear Stearns, Lehman Brothers and many other.
They made 700 trillion dollars worth of bad bets back by nothing more than thin air. A pack of degenerate gamblers that literally bet the house on the housing market with money they didn’t have and now we the American Taxpayers will be forced to pay off their gambling debt for decades.
What were former FED Chairmen Allan Greenspan, President Bush and Congress doing while the banks were making their 700 trillion dollars worth of bad bets that now threaten to destroy us?
Incredibly our leaders decided that the banks needed no transparency and they were perfectly capable of self-regulating themselves.
The SEC, the police of Wall Street, with the insistence of former Commissioner Annett Nazareth, in 2004, went as far as removing an important regulation that limited the amount of money that investment banks could borrow. With this regulation removed the banks had no more borrowing restrictions. This paved the way for them to borrow unlimited amounts of money, which they used to make even riskier bets on the housing market and other derivatives. The SEC removal of this important regulation is the main reason the derivate market went from 50 trillion to 700 trillion dollars.
Total Bailout Cost
If we take the 700 trillion dollar derivate market, which is nothing more than 700 trillion dollar in bets and take a very conservative 10% drop in derivative prices (10% drop in housing market, commodities, stock market…etc) across the board, we are talking about 70 trillion dollars in betting losses by the large banks. If world GDP is roughly 50 trillion dollar then lets assume bank assets make up 20 trillion of the 50 trillion GDP figure.
The banks would then have 70 trillion in losses and only 20 trillion in hard assets to cover these losses. This would leave the banks with 50 trillion dollars in losses beyond what they could cover themselves (70 trillion minus 20 trillion equals 50 trillion), or in other words they are in need of 50 trillion in taxpayer bailouts.
America are you beginning to realize how big of a catastrophe we are facing?
Now you know why each week the FED and Treasury keep raising the amount of bailout money they are paying out to the banks.
The FED as of today has pledged nearly 8 trillion dollars and the Treasury has pledged 700 billion dollars. This is just the start of the bailouts, we only have 41.3 trillion or so more to go.
The Impact of the Bailouts on the Future of America
Even before any of the bailouts started about half of our tax dollars were going towards paying just the interest, again this is only the interest on our national debt. Now with all the bailouts the national debt will explode in the coming years. Soon all of our tax dollars will go towards paying the interest on the national debt and still this might not be enough. This will leave no money for schools, roads, health care and national defense unless there are major tax increases.
There is no ways around the upcoming tax increases. It might not be this year or next year but very soon. In the years to come our taxes will sky rocket, maybe even double or triple. Our children will be forced to pay life altering higher taxes throughout their lifetime, all because of the sins of the large Wall Street Financial Banks/Brokers.
Believe it or not run away higher taxes is the best-case scenario in this Credit Crisis tragedy. If our leaders continue to allow the large Wall Street Financial Banks to dictate economic policy you will continue to see the banks getting more and more bailout money each month.
Eventually the burden of the bailouts will be far too great for even the American Taxpayer to finance and this could easily lead America into bankruptcy. As shocking as this sounds it will be our reality if the bailouts continue. We simply cannot afford to bailout the banks to the tune of 40 to 50 trillion dollars.
Credit Crisis Causes #2: Naked Shorting
While Leveraged Derivative Betting was the primary cause of the Credit Crisis, Naked Shorting helped amplified the Credit Crisis.
As mentioned above, Naked Shorting is the greatest crime against small and mid size American companies and shareholders in the history of the United States. Naked Shorting over the years has destroyed thousands of American companies, costing trillions of dollars in lost shareholder wealth and hundreds of thousands of lost jobs
The Naked Shorting game is played like this. A large Wall Street Broker targets a company. The brokers then start making big bets that the company’s stock price will go down.
This is called taking a short position, which is legal . Think of shorting as the opposite of buying a stock. When you short a stock, you only make money if the stock price goes down you lose money if it goes up. The further down the stock price goes the bigger the profits you make on your short bet.
Normally it’s up to a company’s performance and market conditions that decide whether or not a company’s stock price goes up or down.
Naked Shorting, which is very ILLEGAL, takes all of this out of the equation. Naked Shorting rigs the market so the targeted company’s stock price always drops regardless of any other factors.
How do the brokers manipulate the stock price? It’s the counterfeiting of stock that gives the brokers total control.
Note: We will discuss in a later section how the target companies can be completely unaware that the brokers are counterfeiting their stocks.
By the brokers adding a never-ending supply of counterfeit shares, the brokers eventually exceed any demand there is for the stock and the stock price drops. How far the stock price drops depends on how many shares the brokers are willing to counterfeit.
Naked Shorting always ensures the brokers have the winning hand.
In summary Naked Shorting is rather very simple, the brokers first target a company, then they place bets that the share price of that company will go down, then they illegally manipulate the share price down by counterfeiting shares, and then they collect the money on their winning short bet.
But wait it gets much worse
The ultimate goal for the Naked Shorters is not to just drive down a company share price, but the real goal is to bankrupt the company.
Bankruptcy is the tool the brokers use to hide the counterfeiting evidence. The millions or billions of extra counterfeit shares, suddenly disappears when the company declares bankruptcy. That’s because bankruptcy eliminates all stock shares, real or counterfeit, they all get wiped out.
The Making of Counterfeiting Shares
When you buy (or short) a stock or even when a big buyer like a Hedge Fund buys (or shorts) a stock the process is the same. You give your broker real money and in exchange your broker is obligated to deliver real stock to you at an agreed upon price.
What people don’t realize is that when you make a stock purchase your broker first sends you an electronic marker to your trading account. YOU DON”T HAVE REAL STOCK YET!!!!!
The electronic marker looks and acts like real stock, people just naturally assume they own the real stock. This is understandable because the electronic marker looks authentic, only your broker, the DTCC, and SEC would know the difference.
Remember the DTCC, the Depository Trust Clearing Corporation is a private company whose job is to oversee the settlement of virtually all the trades in the United States Market. The DTCC’s main job is to make sure the brokers are delivering real shares and not counterfeit shares to their customers.
In reality the electronic marker is nothing more than an IOU from your broker, even though it says you bought X amount of stock at X share price at this time of the day.
The electronic marker confirms the stock amount and stock price of your business transaction between you and your broker but your broker still must go out into the market and retrieve the real stock at that agreed upon price and then deliver that real stock into your trading account.
Up to this point the broker’s actions are perfectly legal. The United States Settlement System gives the brokers 3 business days to go out into the market and purchase the real stock.
For the most part, honest brokers usually deliver real stock to your account close to the same time your electronic marker gets entered into your account. Only in unusual cases like in an extremely volatile market or with an extremely illiquid stock should it take up to three days for your broker to deliver the real stock to you.
But what if your broker has alternative motives? What if your broker wants to manipulate the company your buying stock from? What if your broker decides not to deliver real stock to you and never intends to? Then what happens?
All the electronic markers in your account, now become permanent counterfeit stock . There is no real stock attached to the electronic marker.
At some point you will likely sell the electronic markers, which at that point the electronic markets becomes counterfeit shares of stock.
And why not? You have no idea your holding counterfeit stock.
When the counterfeit stock is sold it goes back into the market for others to buy and sell. At this point the counterfeit stock and the real stock get mixed together and are indistinguishable from one another. Since the counterfeit shares get added in with the real shares the total number of shares of that stock increase with every counterfeit share created.
If the broker repeats this process over and over again with their other clients, it’s easy to see how millions if not billions of extra counterfeit shares can get mixed in with real shares and a company’s share structure can balloon out of control.
Now the company’s whose stock is being counterfeited as well as the company’s shareholder base has no idea this is occurring.
They have no idea that their stock is being diluted to hell and that is the reason the stock price is dropping like a rock. They only know for some unexplained reason the stock price is dropping fast.
Who are the brokers involved in Naked Short Selling? There is the Loop Hole in the system at the DTCC, which is called the Stock Borrow Program, which lets all trades go thru the system at the DTCC regardless to wether or not the brokerage houses and hedge funds find and deliver the actual shares. This flaw is then massively manipulated by these criminals that have flooded the system with Counterfeit / Phantom Shares. Reports have been announced that $30 Trillion dollars a month flows through the DTCC with at least $6 Billion dollars a day of counterfeiting shares and it continues to grow as the counterfeit / Phantoms shares are multiplying since the hole in the system allows all the trades to go through electronically, even though these criminals Fail to Deliver ( FTD’s ) the actual shares. This crack in the system at the DTCC could once again destroy the American Financial System if not corrected soon.
Overstock.com is another company battling Naked Shorting, in their lawsuit awaiting trial ( December 5th, 2011 ) they charge the following large Wall Street Broker Institutions with Naked Shorting. Hopefully this will be the Casey Anthony Trial of the Century in the Business World. It will be the biggest story ever told, now lets see if the business world will cover the trial like they did the OJ Simpson and the Casey Anthony trials 24/7.
The firms are:
Goldman Sachs, Morgan Stanley, Bear Stearns, Bank of America, Bank of New York, Citigroup, Credit Suisse, Deutsche Bank, Merrill Lynch and UBS.
Many other companies have made similar accusations against these same large Wall Street Financial Institutions for Naked Shorting.
To date, no criminal charges have been brought against these firms by the SEC. The SEC refuses to investigate the large Wall Street Financial Banks/Brokers for Naked Shorting. Goldman Sachs was fined on May 4th, 2010 for counterfeiting / Phantom shares on 385 separate transactions during a two month period of ( Dec 2008 & Jan 2009 ) Just as Bernie Madoff was all over the news for his so called Ponzi Scheme, more like ( NSS ). So Goldman Sachs is fined for their Fails To Deliver ( FTD’s ) on May 4th, 2010, the same day they find a car bomb in New York City, yes you guessed it, this story of Goldman Sachs counterfeiting shares should have been all over the TV news, but not once was it covered. Well, we all know what happen two days later on May 6th, 2010, the FLASH CRASH, and to this day, some 14 months later, we still have no answers to what caused the Flash Crash of May 6th, 2010. Were these Wall Street criminals sending a message to back off or this is what we will do to your markets as we all witnessed the stock market go from 300 points down around 2:30pm in the afternoon to almost 1,000 points in less than 3 minutes. Did they send the message to stop looking into the rampart Naked Short Selling that had flooded the stock market with counterfeit shares allowed by the DTCC and the Stock Borrow Program, the whole in the system, that has been manipulated by these criminals.
The SEC ignored decades of evidence surrounding Bernard Madoff and his 50 billion dollar ponzi scheme. Likewise, the SEC has ignored a decade worth of evidence surrounding the over trillion-dollar Naked Shorting scheme. The SEC has ignored tens of thousands of letters from the American Public, letters from the Chamber of Commerce, letters from the Small Business Association over the years demanding they clean up Naked Shorting. There is also the Largest Lawsuit in World History in regards to Naked Short Selling now in Central District of California – United States District Court. It is a case with Allegations of a Government Sting Operation in regards to Naked Short Selling of a company called CMKM Diamonds with the trading symbol CMKX. The case # CV-01-03894-RSWL The case is 7 plaintiffs of CMKM Diamonds ( CMKX ) represented by Al Clifton Hodges vs the SEC Commissioners ( former and current ) that allowed the Counterfeiting of CMKX shares. There are some pretty amazing Allegations by Lawyer Al Clifton Hodges and how the Largest Lawsuit in World History is not all over the news is beyond me. Why is the Government and also the NEWS Media ignoring this Lawsuit.
Apparently it seems inconsequential to the SEC that trillions of dollars of wealth has been stolen away from the American Public by the likes of: Goldman Sachs, Morgan Stanley, Bear Stearns, Bank of America, Bank of New York, Citigroup, Credit Suisse, Deutsche Bank, Merrill Lynch and UBS (as indicated by the Overstock.com lawsuit)
How is this possible when even former SEC Chairmen Cox after several years of denial, finally admitted that Naked Shorting is a big problem? The SEC admitted that Naked Shorting is a market wide problem, as Christopher Cox stated in March of 2008 when Bears went down and then the Government protected the top 19 banks from naked short selling. Then when Lehman brothers went down because of Naked Short Selling, the Government again stepped in to protect 799 financial stocks from Naked Short Selling. What about all the other companies that were being naked shorted like Sirius XM Radio and the thousands of other stocks left unprotected from these corrupt hedge funds and brokerage houses. BCIT is living proof there is Naked Shorting, yet nobody is ever found guilty of doing it. Then they arrest Bernie Madoff in December 2008 just a few months after the financial meltdown on Sept 15th, 2008. What a con job that was, blame it on Bernie Madoff.
The BCIT Story
The SEC and the DTCC continue to downplay Naked Shorting to the public but then how do they explain BCIT. The truth is they can’t and that is why they are desperately trying to kill BCIT by preventing them from trading again.
If BCIT were to trade again, this would expose to the world that the brokers counterfeited 350 million shares of BCIT stock. More importantly it would expose the roles the SEC and the DTCC played in covering up this counterfeiting crime. The evidence shows that for five years they knew all about the counterfeiting of BCIT shares by the brokers. BCIT has detailed the counterfeiting of shares in their company’s filings for years and yet the SEC still does nothing.
Even today, in the year 2011, with all the promise of changes and cleanups they are still doing everything in their powers to hide the evidence that 350 million shares of BCIT stock was counterfeited at the expense of 1500 damaged shareholders.
The brokers started Naked Shorting BCIT in the summer of 2005. BCIT however, is fighting back, thanks to a heroic CEO named Thomas Megas and a relentless shareholder group.
Thomas Megas above all else is a man of honor and values. A man that has spent nearly a million dollars of his own money fighting for his company’s survival and fighting for the rights of his damaged shareholders.
Flanked at Mr. Megas side is the BCIT shareholders.
The shareholders will never stop fighting for what is right. They will never give up trying to get back their stolen money. Another Group of shareholders seeking answers are the CMKX shareholders.
They will never stop trying to expose the SEC and DTCC, for their roles in covering up the broker’s crimes.
The BCIT evidence that the Bankers/Broker, DTCC, and SEC want to keep secret.
A brief history of BCIT events:
Ø In the spring of 2005 there was 4,750,000 shares of BCIT stock.
Ø The company share price dropped more then 90% in the spring of 2005.
Ø In the summer of 2005 the CEO, Thomas Megas alerted the SEC and the DTCC that there seemed to be a problem with the trading of his company stock. There were way to many shares being traded on a daily bases. Considering the stock only has 4,750,000 tradable shares in the market and on some days BCIT traded well over 100,000,000 shares.
Ø In August 2005 the company issued a press release reaffirming that they only issued 4,750,000 tradable shares and there was definite manipulation going on with the stock. The press release was a cry for help by the company to the regulators, hoping that this would force them to wake up and investigate the company’s price drop and the never-ending supply of shares being traded.
Ø The regulators reaction to BCIT press release had the opposite effect. Instead of the regulator going after the brokers, for counterfeiting millions of shares, they did the complete opposite and went after BCIT.
Ø The DTCC placed a global freeze on BCIT starting in August 2005. The global freeze still remains today, three long years later.
Ø A global freeze is a suspension of DTCC services, without DTCC services the brokers won’t trade the stock.
Ø A global freeze is only supposed to be a temporary event. Any share imbalance should be immediately investigated and rectified by the DTCC. That is what is supposed to happen, unfortunately for BCIT and BCIT shareholders the DTCC seems to be able to break their own rules to serve their own agenda.
Ø In the BCIT case the DTCC is using the global freeze as a means to keep BCIT from trading.
Why would the DTCC not want BCIT to trade?
Ø Thomas Megas the CEO proved through his own investigation, that at a minimum there are 350 million counterfeit shares in BCIT.
Ø The only way that many counterfeit shares are sold to the public is if the DTCC is woefully negligent or part of the fraud.
Ø If the DTCC were to follow the laws in place they would have to rectify the share imbalance in BCIT prior to or immediately at the start of BCIT trading by following these rules:
1.) The DTCC would have to admit to the public that under their watch the brokers counterfeited a minimum 350 million shares of BCIT stock.
2.) The brokers would then be forced to return the millions of dollars they stole from the BCIT shareholders.
3.) The public might finally realize that the counterfeiting that took place with BCIT is not an isolated incident but actually a common occurrence that has happened to over a thousands other companies.
All the things BCIT has done to try to get the global freeze lifted.
Ø It doesn’t seem to matter to the DTCC and the SEC that over the last five years, BCIT has filed 35 separate filings with the SEC, filed 16 filings with the Nevada Secretary of State, 2 separate protracted lawsuits in Oklahoma, 1 lawsuit in Arizona, purchased two new CUSIP numbers, and filed form 15c211 all in an effort to lift the global freeze.
Ø BCIT has satisfied every regulatory requirement with the Nevada Secretary of State, the SEC, and the Financial Industry Regulatory Authority (FINRA), but BCIT is still blocked from trading similar to that of CMKX.
Ø Everything that BCIT has done is twice the amount of filings and requirements that any other company has been asked to do to maintain their trading status, yet the DTCC still keeps BCIT under a global freeze.
Exposing the DTCC
Ø The DTCC is not a federal agency but a multi billion dollar private corporation, which somehow been given the power to oversee the clearing and settlement of virtually all equity trades in the United States.
Ø Most private companies have a Board of Directors in which the company’s executives answer to. The private DTCC is no different, they too have a Board of Directors in which their company executives answer to.
Ø The big problem with the DTCC is who is allowed to sit on the DTCC Board of Directors.
Ø How is the DTCC supposed to objectively oversee broker trading when many of the DTCC Board of Directors members work for the same large Wall Street Brokers they are set up to oversee?
Ø The conflict of interest inside the DTCC is truly alarming.
Ø As mentioned above, the Institutions involved in Naked Shorting as outlined in the Overstock.com lawsuit are: Goldman Sachs, Morgan Stanley, Bear Stearns, Bank of America, Bank of New York, Citigroup, Credit Suisse, Deutsche Bank, Merrill Lynch and UBS.
Ø Now look who sits on the DTCC Board of Directors:
o Mark Alexander
Managing Director – Global Markets, Merrill Lynch
o Art Certosimo
Executive Vice President, Bank of New York
o Randolph L. Cowen
Chief Information Officer, Goldman Sachs
o Neeraj Sahai
Senior Managing Director, Citi Markets & Banking
o Michele Trogni
Global Head of Operations, UBS AG
Ø It should now make perfect sense to anyone with half a brain, who the DTCC is protecting and why they are hell bent on preventing BCIT from trading. CMKX Shareholders having been waiting years to trade again also and it has been rumored that there were 2.25 Trillion phantom shares of CMKX, the largest in Wall Street History.
How many counterfeit shares are there in BCIT?
Ø We know it’s well over 350 million. The only reason we know this is because of BCIT own investigation. The SEC did nothing for BCIT when it came to Naked Shorting, they refused to investigate the counterfeiting of shares in BCIT.
Ø In the spring of 2008, BCIT management issued a proxy vote. A proxy vote is where all the shareholders are allowed to vote on upcoming company actions.
Ø In a proxy vote each known share is counted and weighted equally. So if company X issued 1000 shares total, and all the shareholders voted, the total vote count should equal 1000 shares.
Ø Now if a company stock contained Naked Shorted shares, the evidence would be seen in the vote count. All votes exceeding the 1000 number would indicate the number of shares that were counterfeited and mixed in with the real stock.
Ø With a typical proxy vote its up to the brokers to send out the voting material to their clients. The broker must send out the material well enough in advance to insure their clients have plenty of time to review the voting material and then have enough time to cast their vote prior to the voting cut off date.
Ø With BCIT proxy voting, almost 50% of the shareholder did not receive their proxy material in time to vote. It seemed that many brokers conveniently did not send it out in time.
Ø Still with little more then 50% of the BCIT shareholders participating in the proxy vote, the amount of votes above the amount of shares BCIT issued, was roughly 350 million votes. Which indicated at a minimum 350 million counterfeit shares in BCIT and this is with just slightly more the 50% of the shareholder base voting.
Ø Imagine if all the shareholders were allowed to vote the real amount of counterfeit shares is likely closer to 600-700 million shares.
Ø Regardless, even with a known 350 million counterfeit shares and taking a conservative price of 15 cents a share (the last trading price of BCIT), the amount of money stolen by the brokers is 52.5 million dollars (15 cents * 350 million). Again, this is with a conservative 15 cent stock price. BCIT most likely would be trading at several dollars if it weren’t for all the counterfeit shares diluting the share price down to 15 cents.
Blackmail
Ø In an October 2008 meeting between BCIT and the DTCC, the DTCC finally gave BCIT an ultimatum after years of giving BCIT management false promises about lifting the Global Trading Freeze.
Ø BCIT management was told if they ever wanted the Global Trading Freeze lifted they first had to issue enough new shares to cover all the existing Naked Shorted shares the brokers created out of thin air.
Ø Issuing new company shares would essentially allow the brokers to cover up all of BCIT shares they counterfeited.
Ø This would also allow the brokers to keep all of the money they stolen from the BCIT shareholders without penalty. Furthermore, all the extra shares would severely dilute the share structure and cause even further damage to the stock price. This is nothing more then BLACKMAIL by the DTCC. There are no other words to describe it.
Ø How the SEC and Congress continue to allow the DTCC to blackmail BCIT is beyond comprehension.
Ø Anthony Carlisle, Isaac Montal, Larry Thompson are three officials at the DTCC who are directly involved with the BCIT case. How they can allow the brokers to sell 350 million counterfeit air shares to innocent BCIT shareholders and then later block BCIT from trading which further injures the BCIT shareholders is beyond comprehension.
Ø I just hope that their families and friends get sent this email, so one day they will understand what these men have done to the BCIT shareholders.
The suffering BCIT shareholders
BCIT shareholders have had well over 50 million dollars stolen from them and unless, BCIT trades again, that money will be forever lost, and the brokers will forever keep that money.
The majority of BCIT shareholders are not wealthy. On the contrary we are struggling everyday middle of the road Americans who made an investment. An investment taken away from us, not because of any fault of our own, or any fault of the company we invested in, but because of a corrupt Wall Street System. So corrupt that blatant robbery of its citizens falls on deaf ears. It is the Whole in the System within the DTCC called the Stock Borrow Program that allowed the counterfeiting of these phantom shares to grow and grow out of control all throughout the DTCC system with the FAILS TO DELIVER ( FTD’s ) by the big brokerage houses and the ever growing hedge funds that exploited the hole in the system.
We never envisioned that any of this could ever be remotely possible in a great country like America. Sadly, for our sake and our families’ sake we were terribly wrong.
Like many Americans, many BCIT investors are now facing tough times with the current economy:
Ø Some have lost their jobs and need their BCIT money just to keep them from losing their homes.
Ø Some were planning on using their BCIT money to pay for their kid’s college education.
Ø Some need the money to pay their medical bills.
The BCIT shareholders desperately need BCIT to trade again; they need to get their money back now.
They have waited five long years for justice; they should not have to wait one minute longer. What are all the politicians and regulators doing while this injustice is blatantly happening to the BCIT shareholders? Are there no good guys left in Washington to stop this EVIL.
How is all of this possible?
How is it that the financial elite, the likes of Goldman Sachs, Citigroup, Morgan Stanley and others were allowed to destroy the greatest economy the world has ever known by making bad bets they couldn’t cover and by rigging the market by counterfeiting stocks securities?
How is it the banking leaders single handily brought the American Economy to her knees and yet we are the ones forced to pay for their mistakes in taxpayer bailouts?
How is it possible that those receiving bailout money refuse to tell the American Public what they are spending the bailout money on and our leaders go along with this?
How is it possible that not one high ranking bank executive is being investigated for Naked Shorting crimes?
How is it that the SEC is still allowed to operate under its current structure and leadership still allowed to operate?
How is it possible that the DTCC, whose job is to oversee broker trading, seats those same brokers on its Board of Directors?
How is it possible that Congress ignored thousands of letters from damaged shareholders victimized by Naked Shorting?
How is it possible that an innocent company like BCIT gets sold over 350 million counterfeit shares, its 1500 shareholders robbed of over 50 million dollars, and yet the market regulators instead of trying to help these shareholders attempt to destroy the company by blocking it from trading for more then five years when they have done nothing wrong?
How is it possible that shareholders of another company called CMKX have not received any closure from the SEC after several years of investigation into CMKX? The CMKX shareholders are victims of the biggest fraud in the history of the stock market. A staggering 635 billion CMKX shares were illegally issued, which is twice the amount of shares the DOW trades in a year. Yet it is still unclear several years later if the 635 billion shares were due to insiders illegally dumping these shares or due to the brokers illegally counterfeiting these shares. CMKX lawyer Bill Frizzell stated in a public email years ago that he believed there were well over a whopping 2 trillion Naked Shorted shares in CMKX. Either way, incredibly after several years, nobody has received any jail time for this monumental fraud that took place in CMKX. If it was the company insiders illegally dumping shares then why hasn’t CEO Urban Casavant and one time prominent company official and ex SEC lawyer Rodger Glenn been charged with fraud? Likewise, if it was due to Naked Shorting then why hasn’t one brokers been charged with any counterfeiting crimes? How is it possible that 40,000 CMKX shareholders have been damaged yet once again nobody seems guilty?
How is all this corruption by the large Wall Street Banks/Brokers possible? The answer is a simple one. The large Wall Street Banks/Brokers control the American Economy and therefore can do what ever they want to whom ever they want. It appears they also control the news media. How on earth is this not all over TV. The CMKX story makes the Bernie Madoff ponzi scheme look like a grocery store robbery.
It is the large Wall Street Banks/Brokers that influence all the major economic decisions behind the scenes. That is why the Credit Crisis happened. That is why the banks continue to receive unlimited bailout money from the taxpayers month after month with no questions asked. That is why Naked Shorting was allowed to happen and is currently being covered up by the Government, the SEC and the News Media. Is there a Government Gag order on Naked Short Selling? It will be the biggest story ever told in World history if the truth finally comes out and hopefully Patrick Byrne and the Deep Capture writer Mark Mitchell will finally expose the Wall Street Counterfeiting story of all stocks, not just companies like Siri, BCIT and CMKX.
Unless the banks power and influence over the economy is reduced the American People will continue to suffer. Over the next few years you will hear from many politicians claiming great changes are being made, but in reality these changes will be nothing more than window dressing.
Our economic foundation is flawed because too much power has been given to the banks and it is dooming the American Economy.
We are no longer America for the people by the people we are America for the banks by the banks. The large Wall Street Financial Banks/Brokers have too much power over the SEC, the DTCC, Congress and even the US Treasury. However, it’s the Federal Reserve (FED) that gives the large Wall Street Banks/Brokers their enormous power.
The Federal Reserve
The FED is the ultimate puppet master. The FED has more power then the President, Congress, and even the Treasury when it comes to the economy. The FED controls the nations money supply, which gives them tremendous power. It also gives them the power to make the rules or break the rules
In 1790 Mayer Amschel Rothschild, perfectly summarized the type of power the FED has when he said, “Let me issue and control a nation’s money and I care not who writes the laws.”
The problem with all of this is that the FED is owned and controlled, not by the United States Government like many Americans incorrectly assume, but rather by the large Wall Street Banks/Brokers. This makes the large banks the true kings of the economy. The same holds true for the DTCC.
The FED was created in 1913 by the large influential bankers of the time. The bankers created the FED with one purpose in mind. The bankers wanted to create a system where the large Wall Street Financial Banks reaped all the benefits in good times, by controlling and manipulating the money supply, and took on none of the risks in bad times.
They created a system where the American Taxpayers would be the backstop to the large banks in tough times. The only problem was they needed a new way to tax the American People. Hence, not coincidently the Federal Income Tax law was also created in 1913.
Now we are seeing all of this play out in our time.
The question now becomes how far will the FED go with the bailouts? If the predictions made here are correct, will the FED give the banks up to 50 trillion dollars in bailout money for all of their gambling debts, even if it means the American Public will suffer severely for it.
The answer is a resounding yes! As mentioned the main reasons the bankers created the FED was for this exact type of scenario playing out now.
The Federal Reserve is a private central bank that is owned and controlled by it shareholders. The FED allegiances are with its shareholders and not the Government nor the American People. The shareholders of the FED are several of the large Wall Street Financial Banks/Brokers.
Now you know why the large Wall Street Banks are getting unlimited bailouts and why crimes they commit are not being investigated. There is zero transparency on what assets the FED is buying from the banks. There is zero transparency on what the banks are using their bailout money on. Why the FED’s books has never been audited since its creation, a span of 96 years. We did just break ground with a Matt Tiabbi story about the books being opened, but only during the financial meltdown and what was reporting in the Rolling Stone article and who got money including John Mack’s wife ( 200 million ) was pretty shocking. Where are the news media stories about all of this?
Our forefathers warned about the evils of having a private central bank and fought against it up until 1913 when the bankers successfully won out and created the Federal Reserve.
Thomas Jefferson has this to say about a private central bank controlling the money supply (in a letter to the Secretary of the Treasury Albert Gallatin): “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
President Abraham Lincoln also warned about the dangers of private central banks: “The money power preys upon the nation in time of peace and conspires against it in times of adversity. It is more despotic than monarchy, more insolent than autocracy, more selfish than bureaucracy. I see in the near future a crisis approaching that unnerves me, and causes me to tremble for the safety of our country. Corporations have been enthroned, an era of corruption will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people, until the wealth is aggregated in a few hands, and the republic is destroyed.”
Both Jefferson and Lincoln were prophetic. They predicted what we are witnessing now and what would happen eventually over time if the private banks controlled our Country’s money supply.
Fixing the Economic Mess and Turning America Around
There is still hope but we need to act fast and make the appropriate changes. If we do nothing Thomas Jefferson’s and Abraham Lincoln’s dire warnings will become reality. We will have no explanation for our kids why, on our watch, we allowed the greatest economic power the world has ever known, to be decimated because we stood by and did nothing.
” The only thing necessary for the triumph of evil is for good men to do nothing ” Edmund Burke
It is so vital that we, the American People, as a nation stand together. That we no longer put up with the corruption, favoritism, greed, zero accountability, zero transparency, and bottomless bailouts of the banks.
We cannot rely on the Congress, Treasury, FED, the SEC, the DTCC or anyone else to save this country. All of these Institutions have already failed us. We would not be in this predicament if these Institutions were fighting for our rights instead of being in the hip pockets of the large Wall Street banks all these years.
We must take the responsibility ourselves. We are living in extraordinary times that require extraordinary actions by everyone. The future of America and our children’s future depend on our current action or inactions.
Six Changes We Must Demand Our Leaders Make
There are a minimum of six things we must demand that our leaders do. If they are unwilling to make these changes then we need to elect new leaders that will make these changes.
1.) Eliminate the control the large Wall Street Banks/Brokers have over the Federal Reserve and place the control back in the hands of the federal government like the forefathers intended.
2.) Stop the unlimited bank bailouts before it bankrupts America. We already gave them 8 trillion we cannot afford to give them anymore.
3.) Set up a Market Wide Clean Up Committee much like the 9/11 Committee. Give them free reign to investigate anyone they suspect of fraud, especially government employees, SEC regulators, DTCC officials, and bank/broker CEOs. Make investigating Naked Shorting the number one priority, starting with BCIT and CMKX. Anyone involved in Naked Shorting or involved in covering up Naked Shorting must receive harsh jail time.
4.) Eliminate the current SEC, which has proven time and time again to be nothing more then a complete disaster. Create a new SEC under the umbrella of the Department of Justice. Make the new SEC three times larger then the current SEC, so they have the manpower to properly police Wall Street. Fire most of the current SEC lawyers and replace them with criminal investigators who will not be afraid to go after the corruption within Wall Street.
5.) Eliminate the DTCC’s private structure and make them a Federal Institution. This would remove the conflict of interest currently within the DTCC. Remove the Stock Borrow Program that allows the Phantom Shares.
6.) Make the SEC enforce the “Force Buy In” law. Right now there are hundreds if not thousands of damaged companies, whose stock prices are trading at a fraction of what they should be because their share structures have been altered thanks to the creation of counterfeit shares. The Naked Shorters have created million and billions of counterfeit shares in these companies, which are now intermixed with the real shares.
Somehow all these counterfeit shares must be removed so these company’s share structures can return to normal. Enforcing the “Force Buy In” law will get rid of the counterfeit shares that are plaguing these companies. The stock prices of these companies will significantly rise once the counterfeit shares are removed. The cumulative effect of all these companies’ stock prices rising should cause a stock market correction that will hopefully give the economy a needed boost.
The only thing preventing this is the SEC, which has refused to enforce this law, thereby protecting the brokers who would otherwise be forced to buy back all the counterfeit shares they created.
Conclusion
After reading this report I hope everyone now has a better understanding of the severe problems facing the American Economy.
I also hope everyone now realizes who were and continue to be the major villains involved in causing all the problems within the economy.
Finally, and most importantly, I hope everyone has a better idea of what changes need to be made to fix these problems. These problems must be solved so our children will grow up in the same America we grew up in.
It is so important that we pressure our leaders. Only through public pressure will we force our leaders to make the necessary changes that will turn America around.
You know America is severely screwed up when the brokers are allowed to counterfeit well over 350 million BCIT shares, the DTCC is allowed to abuse its power by preventing the stock from trading for well over five years, and the SEC and Congress refuse to intervene to help the shareholders. This is why it is so important that we let our leaders know that we are fed up and no longer will put up with such corruption!
Please help us fight the corruption by just forwarding this story on to your family and friends and ask them to spend 20 minutes out of their day so they too can read this report.
For those wanting to help out even more I encourage you to send this report, along with your own personnel comments regarding the state of affairs America finds herself in, send to the media, to the President, your Attorney General, the SEC, the DTCC and any other appropriate public figures.
GOD BLESS YOU, YOUR FAMILY AND AMERICA IN THESE TOUGH TIMES!
Sincerely,
Shareholders of All Stocks
It is time to take action. Send all over the internet, twitter, facebook, blogs and email to all
Its time for good men and woman to fight back against the Evil of Wall Street
July 20th, 2011 | Tags: BCIT, casey anthony, CMKX, cmkxshareholder, cnbc, cnn, crisis, debt, dtcc, kingofalltrades, media, msnbc, News, NY Post, NY Times, patrick byrne, President Obama, Radio wars, SEC, Siri, siriusnews, Stock Shock, stocks, wall street, WSJ | Category: Uncategorized
Depository Trust Move, UBS Short Sales, Solvay: Compliance
October 26, 2011, 8:23 AM EDT
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By Carla Main
(Updates with Danish banks and SEC rulemaking in Compliance Policy, Gupta in Courts and Wetjen in Comings and Goings.)
Oct. 26 (Bloomberg) -- A meeting of European Union finance ministers scheduled for today to decide on bank recapitalization was canceled while two summits of EU leaders will proceed as planned to discuss tackling the sovereign-debt crisis.
The finance ministers’ meeting was call off because the bank-recapitalization issue cannot be decided before other elements of the rescue package, a person familiar with the matter said on condition of anonymity. Summits of the 27 EU leaders and 17 heads of the euro area will take place as scheduled, EU President Herman Van Rompuy said.
At meetings starting at 6 p.m. today in Brussels, the European leaders will seek to reach agreement on expanding the euro-area rescue fund and determining the size of bondholder writedowns on Greek debt, as well as recapitalizing banks.
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Compliance Policy
DTCC’s Faryniarz Warns of Move From U.S. on Dodd-Frank Concern
The Depository Trust & Clearing Corporation may move its data outside the U.S. should an American law spur companies in other countries to stop sending it information on trades, an executive said.
The DTCC houses a trade repository for credit-default and equity swaps.
The U.S. Dodd-Frank Act, passed in 2010, requires foreign market overseers to compensate U.S.-based trade repositories for legal expenses when shared information becomes public. That will fragment oversight because foreign regulators won’t be willing to pay and may require firms that trade derivatives to report to local entities instead of a global one, Dan Faryniarz, managing director of derivatives market structure and industry relations at DTCC, said in Hong Kong yesterday.
The DTCC, the biggest trade repository for over-the-counter derivatives, collects details on trades, such as their size and the identities of the counterparties, for use by regulators. Forcing overseas authorities to compensate the DTCC for lawsuits that may arise if its data are released will hinder the free flow of information, Faryniarz said during a panel at an International Swaps and Derivatives Association conference.
Regulators worldwide are increasing scrutiny of over-the- counter derivatives after their relative opacity was blamed for masking systemic risk before the 2008 collapse of Lehman Brothers Holdings Inc.
Bank-Capital Rules for Trade Financing Eased by Basel Group
Global bank regulators have eased parts of bank-capital rules to counter concerns from lenders that the measures may harm international trade.
The Basel Committee on Banking Supervision said it had waived some rules on the reserves lenders must hold against guarantees for importers and exporters so as to protect growth in emerging markets.
The changes “will improve the access to, and lower the cost of, trade-finance instruments for low-income countries,” the Basel committee said in a statement on its website yesterday.
Governments are seeking to bolster banks’ reserves to prevent a repeat of the turmoil that followed the collapse of Lehman Brothers Holdings Inc. and restore market confidence damaged by the euro zone’s fiscal crisis. Yesterday’s measures will apply to current capital rules as well as proposals known as Basel III, which will more than triple the core capital that lenders must hold.
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Danish Banks Demand End to Short-Sale Ban on Liquidity Drain
Denmark’s banks are demanding an end to a short-sale ban on their shares that’s been in place since the end of 2008, arguing the measure has depleted liquidity and scared off equity investors.
While banks initially welcomed the short-sale ban, the industry has been urging legislators to lift it since the end of 2009, after it became apparent that equity investors were shunning the Danish market, Mick Sayed, a director at the Danish Bankers Association in Copenhagen, said in an interview.
Lenders in the Nordic country are also struggling to emerge from a debt funding crisis after two failures this year triggered senior creditor losses.
The government has signaled that Denmark’s ban on shorting financial stocks will stay in place until European Union rules designed to restrict speculative trading become effective in about a year’s time.
The EU reached a deal on Oct. 18 paving the way for curbs on so-called naked short-selling as part of a draft law on financial markets. The deal also includes an optional ban on trading in naked credit default swaps on sovereign debt that would apply unless investors hold the underlying government bonds or securities that track it.
The agreement still requires formal approval by the EU’s 27 national governments and the European Parliament. The parliament is scheduled to vote on it next month.
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‘No Constraint’ on Rules SEC, Agencies Can Impose, Congress Told
The U.S. Securities and Exchange Commission and other independent federal regulators should face greater scrutiny before imposing rules on business, opponents of the current regulatory process said yesterday.
They testified in favor of a measure that would require independent federal agencies to do the same cost-benefit analysis of proposed regulations that the White House requires of all other executive government departments.
The issue has taken on greater urgency as the SEC moves to implement rules under the Dodd-Frank financial overhaul that may have a major effect on financial institutions and the economy.
In practices dating back two decades, both Democratic and Republican administrations have required executive departments to submit an analysis of costs and benefits when proposing major new rules. Independent agencies, where the president lacks the power to remove the chairman or a member, are exempt from those requirements.
Committee Democrats said yesterday that imposing the standard on the independent agencies would delay new regulations, undercutting protections they said are necessary for health and safety and adding to the unease of business owners.
Compliance Action
UBS Will Pay $12 Million for Short-Sale Supervision Failures
UBS AG, Switzerland’s biggest bank, will pay $12 million to resolve Financial Industry Regulatory Authority claims that a brokerage unit allowed millions of short-sale orders to be placed without reasonable grounds to believe that the securities could be delivered.
The supervisory system for locating and marking orders at UBS Securities LLC was “significantly flawed” and contributed to violations across its equities-trading business, Washington- based Finra said in a statement yesterday. The company’s framework wasn’t designed for regulatory compliance until at least 2009, the industry-funded brokerage watchdog said.
In a short sale, an investor sells a security it doesn’t own, betting the price will decline before it’s time to deliver the shares. Under a rule known as Reg SHO, brokers can only accept short-sale orders when they can reasonably ensure the shares needed to cover the bets will be available to the investor at the time of delivery.
In settling the claims, UBS consented to the findings without admitting or denying wrongdoing, Finra said.
“UBS made a substantial investment to upgrade systems and procedures, including supervisory protocols, IT change control processes, and compliance programs to tighten its Reg SHO controls,” Christiaan Brakman, a spokesman for the Zurich-based bank, said in an e-mailed statement. “This investigation is concluded and all issues identified by Finra and UBS have been remediated.”
CPP Group to Sell Non-Insured Product as FSA Probe Continues
CPP Group Plc, a U.K. company that provides protection against credit-card and identity theft, said it plans to sell non-insured identity protection in place of an offering it suspended following a regulatory probe in March.
The York, U.K.-based company, which stopped selling insured entity protection after talks with the Financial Services Authority, is marketing a new product with similar features that is outside the purview of the regulator, the company said. It provides customers Web tools to detect identity fraud and offers case worker services. Unlike the previous product, it does not offer insurance for expenses incurred.
The suspended insured protection offering, one of its main products, will be scrapped completely, only renewing existing customers, Chief Financial Officer Shaun Parker said in a phone interview. The company is hopeful business partners will sell the non-insured identity protection product in its place after the probe is concluded, he said. It will continue to sell card protection, also currently under investigation.
Telefonica, Portugal Telecom Get Antitrust Complaint From EU
Telefonica SA and Portugal Telecom SGPS SA, Spain and Portugal’s biggest telephone companies, got a European Union antitrust complaint for agreeing not to compete in each other’s home country during 2010 and 2011.
The European Commission sent the statement of objections because it “believes that the object of the agreement was to partition markets, resulting in potentially higher prices and less choice for customers,” it said in an e-mail yesterday.
Telefonica and Portugal Telecom’s cancellation of the non- compete deal in February “does not erase the fact that the agreement existed in the first place,” the Brussels-based antitrust regulator said. Regulators can fine companies up to 10 percent of annual revenue or require them to change the way they do business if they strike deals that unfairly block rivals or harm competition. Telefonica and Portugal Telecom can reply to the EU’s charges in writing and ask for a hearing to defend themselves.
Telefonica declined to comment and Portugal Telecom declined to immediately comment on the EU complaint.
Courts
Ex-Goldman Director Gupta Said to Face Charges in Galleon Probe
Rajat Gupta, the former Goldman Sachs Group Inc. director once accused of feeding inside information to Galleon Group LLC’s Raj Rajaratnam, will face federal charges, a person familiar with the matter said, making him the highest-ranking executive to be named in the probe.
Gupta, 62, will surrender to FBI agents in New York today, the person said. After a four-year securities-fraud investigation of insider trading at hedge funds, Gupta will be charged in a case prosecuted by Manhattan U.S. Attorney Preet Bharara, according to the person, who declined to be identified because the matter isn’t public.
“Any allegation that Rajat Gupta engaged in any unlawful conduct is totally baseless,” his lawyer, Gary Naftalis, said in an e-mailed statement after the charges were reported yesterday. “He did not trade in any securities, did not tip Mr. Rajaratnam so he could trade, and did not share in any profits as part of any quid pro quo.”
The case against Gupta comes seven months after federal prosecutors in court first called him and Rajaratnam’s brother Rengan “unindicted co-conspirators.”
Gupta isn’t being charged based on evidence provided by Raj Rajaratnam, said the person familiar with the matter. The charges against him are based on evidence uncovered by the Federal Bureau of Investigation’s investigation, the person said.
Ellen Davis, a spokeswoman for Bharara, declined to comment. Jim Margolin, an FBI spokesman, didn’t immediately return a call seeking comment yesterday.
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For a video report, click here.
Solvay $32 Million Antitrust Fines Annulled by EU Top Court
Solvay SA won a bid to annul antitrust fines totaling 23 million euros ($32 million) at the European Union’s top court in a ruling that will boost the company’s fourth-quarter profit by 15 million euros.
The European Commission, the 27-nation EU’s antitrust regulator “failed to respect Solvay’s right of access to the procedural file and its right to be heard,” the EU Court of Justice ruled in Luxembourg yesterday.
The commission in December 2000 re-imposed fines on the Brussels-based company, the world’s largest soda-ash maker, a few months after an EU court threw out penalties originally levied in 1990. In its appeal, Solvay argued it didn’t have access to all the documents on which the commission’s claims were based. The agency admitted it had misplaced some documents, according to the court. The missing sub-files may have contained evidence that would have enable Solvay to offer an interpretation of the facts useful to its defense, the court said.
Amelia Torres, a spokeswoman for the commission, said the regulator would study the judgments carefully and that EU procedures “have changed fundamentally in many aspects” since the first fine was imposed more than 20 years ago.
The cases are C-109/10 P, C-110/10 P, Solvay v. European Commission.
Oppenheimer Rochester Funds Lose Dismissal Bid, Face Trial
Massachusetts Mutual Life Insurance Co.’s Oppenheimer Rochester Funds lost a motion to dismiss a group of 32 class- action securities fraud lawsuits when a federal judge in Colorado moved the cases forward for trial.
Shareholders in seven Oppenheimer municipal bond funds sued in federal courts nationwide, consolidated in 2009, alleging they were marketed as stable income-seeking funds “when in fact they employed extremely risky investment strategies,” U.S. Senior District Judge John L. Kane in Denver wrote in an order yesterday.
The consolidated case is In Re Oppenheimer Rochester Funds Group Securities Litigation, 09-md-02063, U.S. District Court, District of Colorado (Denver).
Interviews/Speeches
TARP Did Not Make Money For US Taxpayers, Barofsky Says
Neil Barofsky, Senior Fellow at NYU School of Law and former special inspector general for the Troubled Asset Relief Program (TARP), talked with Bloomberg Law’s Lee Pacchia about the federal government’s regulatory response to the financial crisis of 2008 and the prospects for the financial industry going forward.
For the video, click here.
Burns Says Criminal Case Against SAC Capital Unlikely
Douglas Burns, a formal federal prosecutor, talked about scrutiny of SAC Capital Advisors LP’s trading activity. The Financial Industry Regulatory Authority says the hedge fund run by billionaire Steven A. Cohen, made at least $14 million in suspicious trades in the past 10 years and has referred the trades to the U.S. Securities and Exchange Commission for further investigation.
Burns spoke with Erik Schatzker and Stephanie Ruhle on Bloomberg Television’s “Inside Track.”
For the video, click here.
Comings and Goings
Wetjen Formally Joins CFTC to Complete Dodd-Frank Swaps Rules
Mark P. Wetjen, a senior adviser to Senate Majority Leader Harry Reid, was sworn in as a member of the U.S. Commodity Futures Trading Commission, according to Steve Adamske, the agency’s spokesman.
Wetjen, who was confirmed unanimously by the Senate on Oct. 21, replaces fellow Democrat Michael V. Dunn on the five-member commission.
The CFTC and Securities and Exchange Commission are leading efforts to write new derivatives regulations.
--With assistance from Namitha Jagadeesh in London; Phil Milford in Wilmington, Delaware; Mark Drajem, Catherine Dodge, Joshua Gallu, Silla Brush and Meera Louis in Washington; Eleni Himaras in Hong Kong; Jim Brunsden, Aoife White and Ewa Krukowska in Brussels; Stephanie Bodoni in Luxembourg; Frances Schwartzkopff in Copenhagen and Patricia Hurtado in New York. Editor: Fred Strasser
To contact the reporter on this story: Carla Main in New Jersey at cmain2@bloomberg.net.
To contact the editor responsible for this report: Michael Hytha at mhytha@bloomberg.net.
The DTCC: Unregulated Buying, Clearing, Settling and Short Selling
By Reggie Abaca, Published: March 6th, 2009 12:07 AM EST
According to Patrick Byrne, CEO of Overstock (OSTK), The Depository Trust and Clearing Corporation (DTCC), which assumes a role that requires government oversight, is completely unregulated.
In a message posted on the Deep Capture business blog, Byrne says he hired two securities lawyers to find out who actually regulates The Depository Trust and Clearing Corporation, the company that clears and settles securities transactions in the United States. They apparently found no definitive answer, suggesting that the DTCC is possibly unregulated.
Byrne, a prominent activist against illegal naked short selling, noted that the Congressional Research Service put out an extensive report on February 24, 2009 about the financial regulatory system, entitled “Who Regulates Whom? An Overview of U.S. Financial Supervision” and curiously made no mention of the DTCC or the subject of securities settlement.
This is despite the fact that the Securities Exchange Act of 1934 prominently discussed a "National System for Clearance and Settlement of Securities Transactions" which would require government oversight.
"It seems that in 1934 Congress thought having securities transactions clear and settle promptly was pretty important," writes Byrne.
Indeed, the SEC act called the institution “necessary for the protection of investors.”
This is not the first time Byrne and his colleagues have discussed and criticized the DTCC and its lack of oversight. A journalist at Deep Capture, Judd Bagley, had earlier discovered through an Internet Protocol (IP) address, that someone from the DTCC's corporate office had been trying to smear Patrick Byrne on Wikipedia and various message boards and was also trying to downplay the significance of naked short selling. According to Bagley, the DTCC actually hired a person to do this in order to improve their public relations and was caught doing it from their corporate office. The DTCC is also involved in several unrelated lawsuits involving naked short selling.
All of that aside, if Byrne's suggestion that the institution which clears and settles securities transactions in the United States is, in fact, unregulated, it would mean that short selling is also unregulated. More specifically, it would mean that illegal naked short selling, which the SEC has said it has banned, still has a wide loophole in the DTCC, a powerful unregulated corporate institution that monopolizes clearance and settlement of all United States securities transactions.
Related: OSTK
.....DTCC Applies to Register Swap Data Repository for Multiple Asset Classes with CFTC
Application to Operate Commodities SDR Also Made Through Alliance with EFETnet
Press Release: The Depository Trust & Clearing Corporation – Tue, Nov 1, 2011 9:44 AM EDT
....
Share0EmailPrint......NEW YORK--(BUSINESS WIRE)-- The Depository Trust & Clearing Corporation (DTCC) announced that it had filed a registration application with the U.S. Commodity Futures Trading Commission (CFTC) to operate a swaps data repository (SDR), DTCC Data Repository (U.S.) LLC, across multiple OTC derivatives asset classes.
“DTCC is committed to working with financial authorities and the industry to promote a transparent and sound OTC derivatives market,” said Stewart Macbeth, president and chief executive officer, DTCC Deriv/SERV LLC. “By filing these applications, our goal is to facilitate swaps transaction record keeping and regulatory reporting by US market participants as required by CFTC regulations under the Dodd-Frank Wall Street Reform Act.”
DTCC Data Repository (U.S.) LLC will provide trade repository and reporting services for over-the-counter credit, interest rates, equities and foreign exchange derivatives.
SDR For Commodities
A separate application is also being filed to operate a commodities SDR through Global Trade Repository for Commodities (U.S.) LLC, a strategic alliance between DTCC’s Deriv/SERV subsidiary and Netherland-based EFETnet. This joint collaboration, which was previously announced in June, integrates EFETnet’s vast experience in the commodities arena and its deep network of contacts in the user community with DTCC’s proven track record in building global trade repositories. It will bring together EFETnet's secure data communications and post trade processing capabilities with DTCC's repository and regulatory reporting infrastructure. The combination will provide the commodities industry with an at-cost, industry owned and governed cooperative to streamline reporting to multiple regimes.
DTCC already operates global trade repositories for over-the-counter (OTC) credit and equity derivatives. The company was selected by the industry in competitive bidding processes organized by the International Swaps and Derivatives Association (ISDA®) to operate global trade repositories for OTC interest rates and, in partnership with EFETnet, commodities repositories. It was also selected, in collaboration with SWIFT, to build and operate a global FX repository by a group of global foreign exchange organizations including the Global FX Division of SIFMA, the Association for Financial Markets in Europe (AFME) and the Asia Securities Industry & Financial Markets Association (ASIFMA).
Today, DTCC holds records on more than 98% of the global credit derivative market. DTCC also launched in February 2011 a portal which provides regulators and financial supervisors around the world with direct, on-line access to detailed data and reports on those derivatives in near real-time for the entities they regulate and supervise. DTCC is an at-cost cooperative owned and governed by the financial industry.
DTCC also publishes, free of charge, comprehensive aggregate data for the top 1,000 corporate and sovereign credit derivatives single reference entities and credit derivatives indices on www.dtcc.com every Tuesday after 5:00 p.m. ET (2200 GMT).
About EFETnet
EFETnet was established by the European Federation of Energy Traders (EFET), an organization founded in 1999 by Europe’s leading energy companies, and is used for EFET and non-EFET energy trading contracts.
EFETnet B.V. is an independent company, 100% owned by the EFET. It was set up in 2004 by EFET to serve those actively involved in energy trading and is intended to deliver the benefits of electronic data exchange standardization.
About DTCC
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for more than 3.6 million securities issues from the United States and 121 other countries and territories, valued at US$36.5 trillion. In 2010, DTCC settled nearly US$1.66 quadrillion in securities transactions. DTCC has operating facilities and data centers in multiple locations in the United States and overseas. For more information, please visit www.dtcc.com.
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