After more than three years of investigating the largest corporate bankruptcy in U.S. history, the Securities and Exchange Commission is reportedly dropping the case against Lehman Brothers.
“The staff has concluded its investigation and determined that charges will likely not be recommended,” reads an internal SEC memo, obtained by Bloomberg.
Gee, go figure. Former bankers investigating bankers. When I was a child, we called this a merry-go-round.
If true, this is ‘a travesty of a mockery of a sham of a mockery of a travesty of two mockeries of a sham,’ to quote Woody Allen’s Bananas.
In 2010, the court appointed examiner for Lehman’s bankruptcy concluded Lehman executives used “materially misleading” accounting gimmicks in the months prior to its September 2008 bankruptcy.
Specifically, Lehman “reverse engineered the firm’s net leverage ratio for public consumption” to the tune of $50 billion, according to Valukas. This refers to the now infamous accounting practice called a Repo 105, whereby Lehman offloaded some of its most toxic assets at the end of the quarter in order to temporarily reduced the leverage it disclosed in quarterly filings....
Recall when Zero Hedge said two weeks ago that in the age of ZIRP, corporate balance sheets simply do not matter. The reason for that conclusion was of course the endless public debates over whether Chesapeake’s massively overleveraged capital structure would lead to its demise.
Our view was that while balance sheets certainly matter in a normal market, one not dominated by central planning and endless hunger for yield, in the new ZIRP normal, none of the old school metrics of solvency, viability or even profitability matter. One person who appears to have agreed with our assessment, and put his money where his mouth is, or $775MM more specifically, is none other than legendary corporate raider Carl Icahn, who minutes ago announced that funds controlled by Icahn have raised their stake in CHK to 7.56%, making him the second biggest holder of the stock, and in a letter just sent to the CHK Board, in rather angry tones, demanded 2 board seats for his own representatives and 2 for Chesapeake’s largest shareholder Southeastern Asset Management....
China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury’s first-ever direct relationship with a foreign government, according to documents viewed by Reuters.
The relationship means the People’s Bank of China buys U.S. debt using a different method than any other central bank in the world.
Gee, big surprise.
The other central banks, including the Bank of Japan, which has a large appetite for Treasuries, place orders for U.S. debt with major Wall Street banks designated by the government as primary dealers. Those dealers then bid on their behalf at Treasury auctions.
China, which holds $1.17 trillion in U.S. Treasuries, still buys some Treasuries through primary dealers, but since June 2011, that route hasn’t been necessary.
The documents viewed by Reuters show the U.S. Treasury Department has given the People’s Bank of China a direct computer link to its auction system, which the Chinese first used to buy two-year notes in late June 2011.
China can now participate in auctions without placing bids through primary dealers....
Facebook Inc. took eight years to stage one of the most anticipated initial public offerings ever. The anticlimax came Friday, as Wall Street bankers struggled to prevent the newly minted stock from ending its first day with a loss.
The stock had been widely predicted to soar on its first day. Instead, up until the closing moments of the trading session, Facebook’s underwriters battled to keep the stock from slipping below its offering price of $38 a share. Such a stumble would have been a significant embarrassment, particularly for a prominent new issue like Facebook, the most heavily traded IPO of all time.
In the end, the bankers succeeded. When trading on Nasdaq ended at 4 p.m., the social network’s stock was up just a hair, 0.6%, at $38.23.
Facebook was also hurt by investors’ high expectations of a healthy first-day pop in the price, according to people familiar with the matter....
“The environmental agenda has been infected by extremism—it’s become an economic suicide pact.”
While I enjoyed this video, I was wholly saddened by the fact that it, too, has a strong agenda and seems to have large pocketbooks behind it. I noticed they didn’t mention US foreign policy ONCE, nor did they mention the damage that the Federal Reserve has done. All in all, it’s a short video and worth watching, but as I always say, “Question Everything.”
Everyone has an agenda, and it is often times hard to see past the dazzling camera effects, feigned sincerity, and keyword emphasis, but keep your mind sharp and you’ll see through it every time.
Utah is now accepting gold and silver as legal tender for transactions and to settle debts according to a bill recently signed into law by Governor Gary R. Herbert. Several other states have proposed similar measures in the wake of the monetary policies of the Federal Reserve and the decreasing value of paper money.
Utah’s law is notable because it is the first such bill to pass. Over 150 years ago, Congress passed the Legal Tender Act, which authorized the use of paper notes to pay bills, and while paper money still retains the value noted, interest rates governing bonds and other savings or investment vehicles are at historic lows and are expected to remain at those lows through at least 2014.
Gold and silver bullion however, are at historically high values and observers expect those values to remain high for some time. House Bill 157 will allow for gold and silver bullion to be used for transactions based on the weight of the amount of metal presented. That is a key distinction because it expands out the use of gold and silver beyond face value on limited runs of precious metal coins offered through the US Treasury....
This video is taken from the Presidential debates back in 2008. Ron Paul knocks it out of the park with his explanation as to why we pay so much at the pump. It is not, as many people think, the responsibility of the President to “lower gas prices.” Why some people think the Commander-in-Chief could do anything, or has the authority to “change gas prices,” is absurd.
It is a fundamental economic issue that reveals around the Federal Reserve, which requires Congress to pass legislation to audit, expose, and end, if need be....
Much has been written of the New World Order, the CFR, the Illuminati, the Trilateralists, the Bilderbergs, etc. If such organized bodies exist for a specific objective, as Carroll Quigley would have us believe, a profuse amount of money, such as via a printing press, would definitely be a useful tool to promote their agenda. Does such access to easy money exist, perhaps even hidden right in front of us? Let us reflect on the Federal Reserve and analyze their operation.
When the government wishes to spend money it does not have, it utilizes deficit spending. That means they “borrow” from the Federal Reserve. In practice, a Treasury security is given the Fed and the Fed makes a book entry in an account of the government for the amount of the security. Voila !!! The legislators spend the book entry money and builds roads and bridges, buys military products and funds military projects in their home state, returns a few pennies on the dollar to their constituents for social programs, and all their constituents applaud when their congress critters occasionally go home to press the flesh....
As Americans come to grips with a severe financial hangover, the American economy will adapt to meet the peoples’ needs. After 30 years of easy credit, subprime mortgages, zero interest loans and binge spending, the economy has imploded. The wizards of Wall Street continue casting spells and weaving their magic, as the mainstream media rattles on about the wizards’ omnipotence like an rickety player piano.
Meanwhile, back in the world of reality, some Americans are beginning to realize the necessity of more contemporary ways of doing business. As decreasing wages, increasing taxes, stifling regulations and a mortally wounded economy, are forcing people to do business a different way. If current conditions continue, “black markets” will emerge, giving local economies an IV to keep them stable.
The global Black Market has already surpassed $1 trillion in sales. The United States alone already accounts for more than $600 billion, almost three times the nearest competitor- China. Americans, seeing that the economy for the “99%” still isn’t healthy, are doing an end around to oppressive, financial restraints imposed by the government and Wall Street. ...
Texas Congressman and Presidential Candidate Ron Paul questioned Ben Bernanke, the Chairman of the Federal Reserve, on Capitol Hill yesterday.
Dr. Paul pulled out a silver eagle, explaining that it has retained its real worth and that hard assets should be used as currency as outlined in the Constitution.
Telling Bernanke that in 2006, when he took over at the Fed, an ounce of silver bought about 4 gallons of gas, where as today it will buy 11 gallons. “That’s preservation of value,” said Paul.
Begin watching at the 0:58 mark for the action.
Paul called for a competing currency to the dollar, stating that the laws should be changed to allow precious metals to settle contract disputes and other legal obligations.
Bernanke addressed Paul by jokingly saying “good to see you again, Congressman”, before somewhat derisively saying he would be happy to consider the Congressman’s ideas and help him work out what currencies to hold.
Paul hit back by saying the government goes after those who attempt to use gold and silver as alternatives to depreciating Federal Reserve notes as if they are criminals, telling Bernanke “the record of what you’ve done is destroy the currency,”...
More bad news: U.S. water bills to triple
Yet another great reason to get your own piece of land or install a private water well! I’m about to install a manual water pump out at my shipping container homesteading effort, the Elysian Fields Project. This will also protect you against a grid-down situation. The ability to provide for yourself is of the utmost importance these days.
Society’s Five Stages of Economic Collapse
While it can be accelerated by certain events like war, a natural disaster, pandemic, terrorist attack, or even an impending asteroid impact, history has shown that economic collapse will essentially happen in this five stage process....
Italian police said on Friday they had seized about $6 trillion of fake U.S. Treasury bonds in Switzerland, and issued arrest warrants for eight people accused of international fraud and other financial crimes.
Stop for a minute and just think about what $6 trillion worth of Treasury bonds could do to our Dollar. And if this was recently “caught,” think about how many forged Treasury Bonds have gone unnoticed? How long has this been going on? Who’s directing them? If these were dumped onto the market, even in a slow, steady trickle, it would kill the US Dollar in short order.
Hayden’s Note II:
I am doing a lot more research into this tonight and will be providing an update tomorrow on this topic. This is a deep, deep rabbit hole. These bonds might have been genuine.
The operation, co-ordinated by prosecutors from the southern Italian city of Potenza, was carried out by Italian and Swiss authorities after a year-long investigation, an Italian police source said.
Any financial system that is based on debt is doomed to fail. Today, we are living in the greatest debt bubble that the world has ever seen, and if all of a sudden people could not use credit to buy things, our economy would immediately grind to a halt. Unfortunately, no debt bubble can last forever.
Unfortunately? I’m rather pleased about the fact that we might…just might… be able to allow this debt bubble to burst and start over. I’m not a fan of over-entending credit. I’m not a fan of the Federal Reserve. And I’m certainly not a fan of the insanity that we call modern banking practices. Let it come crashing down.
When this current debt bubble finally bursts, faith in the financial system is going to disappear, credit is going to freeze up and there is going to be a massive wave of bank failures. Right now, Greece is a warning sign for the world. Nobody wants to lend money to Greece, the Greek banking system is dying, one out of every four businesses has already shut down, unemployment is soaring and the Greek economy has now been in recession for five years in a row....
John Williams of Shadow Stats says, “This is end of the world type stuff.” He recommends stocking up on barter items and getting out of the US dollar. I’ve been saying this same thing for two and a half years. Read some of my other articles regarding investing in tangibles!