John Key and the transnational financial class

Reposted, with thanks, from Aotearoa, a Wider Perspective

On Larry Summers, The End Game Memo And Derivatives Or Why We Have $ 112 Billion Of Crap On Our Books

Travellerev

Aotearoa, a Wider Perspective,

18 September, 2013

When John “I don’t Need No Stinking Advice” Key became our Prime Minister he had but one job. To destroy the Financial independence of New Zealand such as it was and make us totally dependent on the Transnational Financial Class.

How did he go about it? He loaded up every council and our National financial books with Derivatives. The amount? $ 112 Billion. Mind you that was in 2011 according to this article so my guess is that we now own these crappy junk derivatives to the tune of an entire years GDP and when that implodes we are screwed. Just like Greece and Cyprus to name a few countries.

With this in mind I would like to take you to the following interview between Max Keiser and Greg Palast about what has been dubbed the “End Game” Memo written by none other that Timothy Geithner who as you may know was the secretary of treasury under the first four years of Obama.

The memo shows that a small cabal of bankers conspired to deregulate the entire global banking world. The main player was Larry Summers who only this Sunday was dumped for the top job: the Chairman of the Federal Reserve of New York board.

Larry Summers and Timothy Geithner are both proteges of Robert Rubin of Goldman Sachs who was also the Secretary of Treasury under Clinton who oversaw the repeal of the Glass Steagall act in 1998.

John “Balmoral” Key at the time was the Director of the Derivatives and Bond department of Merrill Lynch which went infamously bust and had to be bought up by Bank of America because of their Derivatives portfolio. He was on the same Fereign exchange committee as his boss who shared the honor with non other than Robert Rubin. In this article I write more indept how closely John “I’m easy with that” Key was connected to the unholy triad of Robert Rubin, Timothy Geithner and Larry Summers

If, as is it is rumored, Timothy Geithner who already has been the President of the NYFR (2002-2009) were to become the next chairman you can bet your bottom dollar (no pun intended) that John “I have no Trans rail shares” Key will do even more of the transnational banker class.

Here is the interview

A bank run

Who's Next? Italy's Monte Paschi Admits To Billions In Deposit Outflows

Zero Hedge,

30 March, 2013

It appears, given news from Italy today, that European depositors are increasingly coming to the realization that deposits in their local bank are not 'safe' places to put their spare cash, but are in fact loans to extremely leveraged businesses. 

In a somewhat wishy-washy, 'hide-the-truth'-like statement on Monte dei Paschi's website, the CEO admits to, "the withdrawal of several billion in deposits." Of course, the reasons why these depositors withdrew their capital from the oldest bank in the world will never be known though of course he blames it on "reputational damage" from their derivative cheating scandal. 

Apparently the fact that this happened to come about six week after said scandal and the bank's third bailout, and that the prior two bailouts did not result in such an outflow of unsecured liabilities (at least not to the public's knowledge), was lost on the senior management, as was lost that a far greater catalyst may have been the slightly more troubling events in Cyprus in the second half of March. 

Unsurprisingly, as Reuters notes, the CEO declined to give a forecast on the level of deposits at the end of the first quarter of 2013; no wonder given the bank just doubled its expectations for bad loans and the 'Cypriot Solution' dangling over uninsured depositor hordes.

Via Reuters,

Customers' deposits at Italian bank Monte dei Paschi fell by "a few billion euros" ... the bank said in a document posted on its web site on Saturday....

But it has yet to make clear what impact the scandal itself had on its first quarter results.

"The illicit nature of the derivatives trades and their consequence on the bank's assets exposed the bank to reputational damage that was immediately translated into...the withdrawal of a few billion euros in deposits," the bank said in a document for shareholders attending its April 29 meeting.

..

But he declined to give a forecast on the level of deposits at the end of the first quarter of 2013 or to indicate the outlook for net interest income and loan loss provisions.

A quick glance at BMPS' capital structure shows that there isn't a whole lot (read: almost any) of impairable securities below the unsecured liability (i.e., deposit) level. It is also obvious that when the bad debt impairment begins and depositors start getting whacked at least senior bonds, which should be pari passu, will feel the pain too as per the Diesel-BOOM doctrine, although we doubt this particular case of pain sharing will bring much comfort to any and all uninsured depositors in the oldest bank in the world.

More on damage toi stock certificates

Another viewpoint on the damge to stock certificates by Sandy

DTCC SAYS TRILLIONS IN STOCK CERTIFICATES DAMAGED IN SANDY FLOODWATERS

Silver Doctors,

5 November, 2012

Unlike 99.9% of investors, most SD readers are aware (or should be) that unless you have physically taken possession of your equity shares, the actual owner is the Depository Trust & Clearing Corp. (DTCC).

CNN Money has reported that the DTCC vault holding trillions of dollars in equity certificates was breached in the Sandy flood-waters, and trillions in stock certificates and other paper securities may have suffered damage.

While the jokes relating to vaporization of assets from Hurricane Sandy were centered on the gold stored 60 feet below the NY Fed, it appears that in reality, Sandy may have destroyed portions of millions of Americans’ 401k’s, pensions, and stock accounts.

Got PHYZZ?

Up to $36.5 trillion in securities may be damaged according to the CNN report:

Trillions of dollars worth of stock certificates and other paper securities that were stored in a vault in lower Manhattan may have suffered water damage from Superstorm Sandy.

The Depository Trust & Clearing Corp., an industry-run clearing house for Wall Street, said the contents of its vault “are likely damaged,” after its building at 55 Water Street “sustained significant water damage” from the storm that battered New York City’s financial district earlier this week.

The vault contains certificates registered to Cede & Co., a subsidiary of DTCC, as well as “custody certificates” in sealed envelopes that belong to clients.

The DTCC provides “custody and asset servicing” for more than 3.6 million securities worth an estimated $36.5 trillion, according to its website.

The DTCC’s vault has apparently been flooded to such an extent that officials have not even regained access to the facility a week after Superstorm Sandy struck Manhattan:

“At this point, it is premature to make an accurate assessment as to the full impact of the water damage nor would it be helpful to project on what specific actions need to be taken with respect to our vault,” said DTCC Chief Executive Michael Bodson in a statement. “We are aggressively working on this situation to minimize disruption to our clients and will provide additional updates as more information becomes available.Bodson said the DTCC’s computer records are intact and that the corporation has “detailed inventory files of the contents of the vault.”

The building remains inaccessible, but the lower floors are believed to be flooded. The full extent of the damage cannot be assessed until power is restored and the building is deemed safe to enter.”

REALIST NEWS - So THIS is why hurricane Sandy happened. WALL STREET COVERUP? $36.5 trillion

For video GO HERE

The Keiser Report

This relates to THIS story

Thanks to Travellerev

Credit Default Swaps and LIBOR, The Two Make The Biggest Financial Scam Ever Perpetrated!

Aotearoa: a Wider Persspective,

24 October, 2012

If you are or know a New Zealand Farmer who lost his/her farm as the result of the Derivatives sold to him you might want to watch this and give the link to your farming colleagues!

The first half lays out why the selling of these fraudulent instruments and the subsequent artificial and fraudulent lowering of the LIBOR combined bankrupted many thousands of small and middle sized businesses.