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Dear CIGAs,
Check back here every Friday for the FDIC failed bank web link.
http://www.fdic.gov/bank/individual/failed/banklist.html
Jim Sinclair’s Commentary
The following site provides the up to date map of where citizen’s money has gone to make good on OTC derivative winnings as per our video post today.
http://www.treasury.gov/initiatives/eesa/docs/transaction_report_02-10-09.pdf
Jim Sinclair’s Commentary
They all have blood on their hands. How about the courage to go with life after your fortune is gone, you are unemployable and your pension has gone broke owning OTC derivatives called Securitized Investment Vehicles. These killers might as well have built crematoriums.
They carry just that – Karma. Death is easy. Life is hard. They will pay, this I assure you of.
OTC derivative manufacturers.
OTC derivative distributors.
Predatory Hedge Funds.
Their only protection is anonymity. God will not help them when they are all identified. They cannot live in the sunlight just like the demons of Lanka could not. They are demons by night, hiding in the foul lairs waiting to devour the lame, halt and widowed.
Who will stand to help the widows son? We meet upon the Square.
Bernard Madoff has ‘blood on his hands’ over William Foxton suicide
A former British soldier who shot himself was facing bankruptcy after becoming the victim of Bernard Madoff’s alleged fraud, his son said
Susan Thompson
From Times Online
February 12, 2009
Bernard Madoff, the disgraced financier accused of the biggest fraud in corporate history, was accused of having "blood on his hands" after a former soldier killed himself over the loss of his family’s life savings.
The son of William Foxton, 65, said that his father was so distraught after losing his family’s entire savings in the alleged Ponzi scheme that he shot himself with a handgun in a park in Southampton on Tuesday.
Mr Madoff, 70, is under penthouse arrest and 24-hour surveillance after being arrested on December 11.
He was accused of one count of securities fraud after authorities said that he admitted to running a scheme over many years with losses of $50 billion (£35 billion).
Willard Foxton, of London, said that his father, a grandfather of two and a former French Foreign Legionnaire, was “brought low by the greed of Bernie Madoff”.
Mr Foxton said: “I spoke with my father recently and he confided in me that he was in ‘an absolute s***fight’ with his banks’, as his life savings had been invested in two hedge funds: the Herald USA Fund and Herald Luxembourg Fund.
Jim Sinclair’s Commentary
Real wealth is called to our attention by Marty M. and Lao Tzu.
"Being deeply loved by someone gives you strength, while loving someone deeply gives you courage."
–Lao Tzu
Jim Sinclair’s Commentary
On the brink? You have to be kidding. They are broke. just go to the controller of the currency month report of derivative exposure versus capital. It screams broke right at you.
Keep in mind that the USA Controller of the Currency is now using a value to maturity to calculate notional value. This has reduced the amount of notional value outstanding by 80%. Anything stated at 20% of its value is a bullshit statistic. It still screams BROKE.
All of this hell is a gift to you from the pig rich OTC derivative manufacturers and distributors. they have killed us all to some degree.
Large U.S. banks on brink of insolvency, experts say
By Steve Lohr
Friday, February 13, 2009
Some of the large banks in the United States, according to economists and other finance experts, are like dead men walking.
A sober assessment of the growing mountain of losses from bad bets, measured in today’s marketplace, would overwhelm the value of the banks’ assets, they say. The banks, in their view, are insolvent.
None of the experts’ research focuses on individual banks, and there are certainly exceptions among the 50 largest banks in the country. Nor do consumers and businesses need to fret about their deposits, which are insured by the U.S. government. And even banks that might technically be insolvent can continue operating for a long time, and could recover their financial health when the economy improves.
But without a cure for the problem of bad assets, the credit crisis that is dragging down the economy will linger, as banks cannot resume the ample lending needed to restart the wheels of commerce. The answer, say the economists and experts, is a larger, more direct government role than in the Treasury Department’s plan outlined this week.
The Treasury program leans heavily on a sketchy public-private investment fund to buy up the troubled mortgage-backed securities held by the banks. Instead, the experts say, the government needs to plunge in, weed out the weakest banks, pour capital into the surviving banks and sell off the bad assets.
Jim Sinclair’s Commentary
Pakistan owns up.
Pakistan Sees Terror Role
Official Recognition on Mumbai Attack Is Concession to India
By ZAHID HUSSAIN in Islamabad and MATTHEW ROSENBERG in New Delhi
Pakistan publicly acknowledged for the first time Thursday that last year’s terrorist attack on Mumbai was partly planned on its soil and said it had arrested most of the key plotters, the clearest sign yet that Pakistan intends to cooperate with international efforts to prosecute those behind the attacks.
Interior Ministry chief Rehman Malik’s announcement appeared to mark a break from Pakistan’s equivocation over the role of its people in the attacks. While India and the U.S. urged Islamabad to take responsibility, some Pakistani officials had suggested the plot was hatched elsewhere.
"Some part of the conspiracy has taken place in Pakistan," Mr. Malik said. "I want to assure our nation, I want to assure the international community, that we mean business."
Detailing a strong Pakistani link to the three-day rampage in November, Mr. Malik said six people have been charged in Pakistan with "abetting, conspiracy and facilitation" of a terrorist act, and several other suspected plotters are in Pakistani custody or under investigation.
India’s Foreign Ministry called Pakistan’s statement "a positive development" and said it would share whatever additional information it could.
Jim Sinclair’s Commentary
Friday the 13th, 2009 is a good Friday for the banking system. Four down and few thousand to go.
Nebraska, Florida, Illinois banks are latest failures
12 banks have failed so far in 2009, 37 shut since credit crisis began
By John Letzing, MarketWatch
Last update: 7:37 p.m. EST Feb. 13, 2009
SAN FRANCISCO (MarketWatch) — Loup City, Neb.-based Sherman County Bank, Cape Coral, Fla.-based Riverside Bank of the Gulf Coast and Pittsfield, Ill.-based Corn Belt Bank and Trust Company were closed by regulators Friday, bringing the number of U.S. bank failures for 2009 to 12 and 37 total since the start of the credit crisis, the Federal Deposit Insurance Corp. said.
Nebraska has not seen a bank failure since 1990, according to the FDIC. However, Riverside Bank follows Fla.-based Ocala National Bank, which failed on Jan. 30. Prior to Corn Belt Bank, the last Illinois bank to fail was National Bank of Commerce on Jan. 16.
Nebraska’s Sherman County Bank had roughly $129.8 million in assets as of Feb. 12 and $85.1 million in deposits, the FDIC said.
Wood River, Neb.-based Heritage Bank has agreed to assume all of the failed bank’s deposits, and will purchase roughly $21.8 million worth of its assets, the FDIC said.
The FDIC estimated the cost of the failure to its deposit-insurance fund will be $28 million.
Jim Sinclair’s Commentary
The G7 is no longer the ball in world economics. The back seat may become permanent.
G-7 Takes ‘Back Seat’ as Financial Crisis Pushes G-20 to Fore
By Simon Kennedy
Feb. 13 (Bloomberg) — The Group of Seven, whose finance chiefs convene this weekend in Rome, is ceding its traditional power to rebuild the world economy to a broader body of governments that now wield greater sway over global growth.
As U.S. Treasury Secretary Timothy Geithner and European Central Bank PresidentJean-Claude Trichet join their G-7 counterparts, it’s the Group of 20 that occupies the vanguard responding to the financial crisis.
The shift in influence to the group, whose membership ranges from the U.S. to China to Saudi Arabia, reflects the fact that industrial nations lack the resources to fix the world’s economic woes alone. That curbs the G-7’s scope to deliver new initiatives this week, say economists and former officials.
“The world has changed,” said Paul Martin, Canada’s former prime and finance minister who attended G-7 meetings and helped establish the G-20 a decade ago. “The G-20 reflects the realities of the global economy. Its finance ministers are becoming the dominant policy-making body.”
Jim Sinclair’s Commentary
Here is today’s prime question:
Why, all of a sudden, is Mr. Monk (at Davos) so bullish on gold, assuming it has little to do with the gold price?
NOTICE!
Due to recent state and city budget cuts, the cost of electricity, still high gas and oil prices for the consumer, as well as current job market conditions and the continued decline of the U.S. economy with lack of immediate impact for Federal Stimulus plans and ill targeted Treasury financial firm bailouts…
The Light at the End of the Tunnel has been turned off.
Sincerely,
The Management
Jim Sinclair’s Commentary
This is the story of every single one of the walking financial wounded entities being or soon to be bailed out. Here is where they made their billions that has broken their companies, but in no way injured those that benefitted from the deluge of money made in the manufacturing and distribution. You are paying for their secured profits.
"The company made huge profits selling credit default swaps – insurance contracts which protected investors against the risk of companies being unable to pay their bills. But at the end of 2007 it began to report drastic quarterly losses. In April last year Mr Cassano was nudged into retirement but kept on in a consultancy role for £700,000 a month for nine months."
Fraud probe into UK firm’s role in collapse of world’s largest insurer AIG
By Arthur Martin and Ben Laurance
Last updated at 11:50 PM on 12th February 2009
A fraud investigation was launched last night into a UK firm’s alleged criminal involvement in the multi-billion-pound collapse of the world’s largest insurer.
The probe by the Serious Fraud Office into AIG Financial Products will focus on those with ‘inside knowledge’ of the collapse.
Investigators will try to establish how it lost almost £8billion and brought its American parent, AIG, to its knees.
The downfall of AIG, now 80 per cent owned by the U.S. government, was one of the pivotal events in the start of the global financial crisis.
The company was forced to seek £59billion ($85billion) in emergency credit from the Federal Reserve.
Part of the inquiry into the Mayfair-based subsidiary is likely to focus on its boss, Joseph Cassano.
Since starting AIG Financial Products in 1987, Mr Cassano, 53, is thought to have earned almost £200million.
Jim Sinclair’s Commentary
With all the media screaming “the problems are worse for others,” an examination of the following should clear that misconception up.
Rescue Efforts Ding U.S.’s Triple-A Rating
By LIZ RAPPAPORT
The creditworthiness of the U.S. is deteriorating more rapidly than most of its triple-A rated brethren.
The effects of the U.S.’s efforts to solve the financial and economic crisis are taking a toll on the country’s ability to uphold a triple-A rating, according to a report published by Moody’s Investors Service, though the agency shied away from warning of any ratings downgrade. As the government moves forward with President Barack Obama’s $789.5 billion stimulus package and the Treasury gears up to borrow as much as $2 trillion with new debt sales this year, Germany, France, Canada and Scandinavian countries are pulling ahead of the U.S. as stronger credits, said the report. While all face headwinds, they remain triple-A.
"By the end of a two year period, the U.S. debt ratios will be higher and moving the country’s metrics to the lower end of the pack," said Steven Hess, sovereign credit analyst at Moody’s. Mr. Hess said that while the analysis on the U.S. is the current view, "this triple rating isn’t assured forever."
Regardless of the U.S. spending spree, investors around the world still buy U.S. Treasury bonds when they become anxious about the financial system, as it is the world’s largest bond market and functions in dollars, the world’s reserve currency. The 10-year Treasury rose in price Thursday to yield 2.732%, while the two-year bond rose as well, to yield 0.883%. The U.S. and the United Kingdom are what Moody’s called "resilient triple-A" rated nations facing big tests as the economic downturn stresses their ability to harvest revenue from taxes and as they take on debt to rescue large financial institutions and restore markets to health. Moody’s notes, though, that the U.S. is uniquely positioned to restore its financial health once the crisis abates, given the size of its economy and its tax base.
Jim Sinclair’s Commentary
Is this intended to be read as the US Federal Reserve acting in a proper way by doing unlimited amounts of dollar swaps with other central banks in order to support all the nations deemed critical to the national security of the US?
This is exactly how Chairman Volcker bankrupted the USSR. It is exactly how forces at the heart of Anti-Americanism and Anti Globalism will bankrupt the USA.
Intelligence czar: Economy is top threat to U.S.
Says prolonged crisis could cause some nations’ governments to collapse
Updated 6:07 p.m. MT, Thurs., Feb. 12, 2009
WASHINGTON – The economic crisis has trumped bullets and bombs in the intelligence agencies’ latest assessment of threats to the United States.
That shift is a reflection of the depth of the unfolding recession, but also of the progress made in the war against terrorists and the Obama administration’s more expansive definition of national security.
Sounding more like an economist than the war-fighting Navy commander he once was, National Intelligence Director Dennis Blair told a Senate panel Thursday that if the crisis lasts more than two years, it could cause some nations’ governments to collapse. And a number of allies the United States depends on might no longer be able to afford to meet their own defense and humanitarian obligations, he said.
Blair said the financial meltdown, which started in the United States and quickly infected other countries, already has eroded confidence in American economic leadership and belief in free markets.
"Time is probably our greatest threat. The longer it takes for the recovery to begin, the greater the likelihood of serious damage to U.S. strategic interests," he told the Senate Intelligence Committee, as Congress prepares to vote Friday on a $789 billion stimulus package.
