STANDARD & POOR’S
“It could be structured by cows and we would rate it”
Update (Feb. 3, 2015): As expected, S&P settles with the Justice Department for $687.5 Million and with the AGs of 19 States and DC for a total of $687.5 Million, containing no findings whatsoever of any violations of law. This amounts to a license to defraud the investors heretofore and hereafter.
THE RISING COMMU-CAPITALISM
To counter US sanctions, Russia embraces China’s UnionPay, eclipsing the dominance of VISA and Mastercard in world consumer credit card transactions.
The boomerang effect of US sanctions not only creates additional transactonal cost for VISA and Mastercard doing business in Russia, but accelerates the rising marketshare of China’s UnionPay in world consumer debit and credit card markets.
BANK OF AMERICA SETTLES MORTGAGE FRAUD FOR $16.65 BILLIONS
Given the “size and scope of [BOA’s] pervasive schemes to defraud financial institutions and other investors, [t]his is appropriate…” said Atty. Gen. Holder. However, DOJ allows $12 Billions tax deductions.
After causing the financial meltdown on Wall Street, Bank of America was rewarded $45 Billions from the TARP of which a total of $140 Billions were used for bonus payments. But for the taxpayers’ aid, “BOA would have been a zero”; the tax deductions allowed make taxpayers pay twice for BOA’s wrong.
JP MORGAN CHASE SETTLES MORTGAGE FRAUD FOR $13 BILLIONS
“… I think the public knows that JPMorgan engaged in activity that we considered to be fraud”, said Assoc. Atty. Gen. Tony West.
After causing the financial meltdown on Wall Street, JP Morgan Chase was rewarded $25 Billions from the TARP, and the Board awarded a raise for such criminal performance.
CITIBANK SETTLES MORTGAGE FRAUD FOR $7 BILLIONS
“Citigroup employees often personally ordered the due diligence firms to change the loan grades…from reject to accepted,” said U.S. Attorney John Walsh
After causing the financial meltdown on Wall Street, Citigroup was rewarded $45 Billions from the TARP, and a US Government guarantee of $300 Billions of Citigroup’s toxic assets.
ALIBABA IPO–THE LARGEST EVER
Given the tug between SEC and lobby firms, the corporate structure and accounting issues, the shares being offered are political products, not conventional capital products.
After the vanity, and given China being the only growth economy, China and Ma-like companies should consider creating new capital markets in China that may rival New York and London, as long as such capital markets are supported by the integrity of (i) a rating system and an accounting and audit system to ensure the fair market values of debt and equity shares being offered or traded, and (ii) an arbitration system to resolve any transactional disputes.
SEC SUCCUMBS TO POLITICAL WILL
Due to Agenda congestion, SEC will not pursue political spending disclosure rules for US corporations
The Administration is losing credibility, if reformed SEC also succumbs to political whims.
ANOTHER WALL STREET SCANDAL EXPOSED: “CLUB ETIQUETTE”
Goldman Sachs and Bain Capital agree to pay $121 million to settle lawsuit for conspiring not to outbid each other in takeovers, leaving 5 unwilling defendants: Blackstone Group, Carlyle Group, KKR & Co, Silver Lake Partners and TPG Capital Management.
OBAMA PROPELS EURO-ASIAN CAPITAL MARKETS
In response to Obama’s sanctions on Russia, Russia and China form rating agencies to be rid of US monopoly and manipulation in capital markets. Competition makes the markets healthy. But credible mechinism for rating, accounting, auditing, and arbitration is the necessary foundation for such new capital markets.
In addition, Russia and China are taking steps to bypass US currency and credit card services for domestic and transnational transactions
Given Asia’s leading substantive growth in production and consumption, US capital markets may see serious competition from Euro-Asia
GOLD IS ALSO RIGGED BY LEADING BANKS
After LIBOR, Forex, rating, and stock exchange scandals…, yet another financial rigging is exposed, raising severe doubt about the integrity of any financial market
NYSE FINED AGAIN FOR REPEATED VIOLATIONS
SEC fines NYSE $4 million only for 4 years of dishonest operations resulting in unfair trading practices
ELIZABETH WARREN: DELICIOUSLY CYNICAL, HUMOROUS & TRUTHFUL
Whenever probing how Wall Street was generously bailed out by Washington of recent financial disasters at taxpayers’ expense
“I’m worried a lot about power in the financial services industry and I’m worried about the fact that basically, starting in the ’80s, you know, the cops were taken off the beat in financial services. These guys were allowed to just paint a bull’s-eye on the backside of American families. They loaded up on risk. They crushed the economy. They got bailed out. What bothers me now, they still strut around Washington, they block regulations that they don’t want, they roll over agencies whenever they can.”