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MAJOR DERIVATIVE MELTDOWN ALERT

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Interesting idea floating around, and has implications for the short-term gold price (remember what happened when Gordon Brown pawned UK gold?):

 

Europe’s debtors must pawn their gold for Eurobond Redemption

 

 

http://www.telegraph.co.uk/finance/financialcrisis/9298180/Europes-debtors-must-pawn-their-gold-for-Eurobond-Redemption.html

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The Cabal wants to get rid of bonds,

and get their hands on more gold

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The Cabal wants to get rid of bonds, and get their hands on more gold

 

It's a smash 'n' grab: Let 'em redeem bonds for gold - in a decade they'll be hopelessly in debt again anyway

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The Cabal wants to get rid of bonds,

and get their hands on more gold

So the Cabal dont believe that there is loads and loads more gold floating around somewhere unaccounted for? Are the Cabal stupid or smart?

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So the Cabal dont believe that there is loads and loads more gold floating around somewhere unaccounted for? Are the Cabal stupid or smart?

 

I reckon the Cabal are arrogant and think they can go on manipulating people.

 

They have their operatives (and JS might be one) in positions, where they can influence the Gold price. The job of these guys is to keep developing demand for Gold while the fiat currenbcy system is falling apart, and then allow them to unload near the top. The best result for Cabal gold buyers would be to have a gold backed currency, with Gold prices "locked" at a high price. That happy situation (for them) may be a few years away.

 

That's how I see it - It happens to fit the facts

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The Time Bomb Continues to Tick

 

"Derivatives are financial weapons of mass destruction." It was none other than Warren Buffett who made this accusation prior to the calamity that struck the global financial system after Lehman Brothers collapsed. This video explains causal links between OTC derivatives, the financial crisis of 2008, Alan Greenspan, Robert Rubin, Larry Summers, Jon Corzine and MF Global. And it raises the question, if these financial products are so dangerous, why are they still legal?

 

Watch Video: http://hongkong.asiaxpat.com/forums/business-finance/threads/147099/the-economic-crisis-that-never-ends/

 

(Note: I may debunk parts of it later)

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Good to see you posting, CGNAO. Please keep updating us.

 

They hope, this will placate the beast.

 

It won't and it will actually make things worse as it will weaken also the perceived strong states.

 

The waters are slowly retreating. Are you ready for the real tsunami?

 

2007-8 will look like a walk in the park.

 

Going back to my bunker.

 

Roger, over.

 

http://online.wsj.com/article/SB10001424052702303640104577435891536636210.html

Updated May 30, 2012, 11:20 a.m. ET

 

EU Proposes 'Banking Union'

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http://www.zerohedge.com/news/ahead-jamie-dimons-senate-testimony-who-knew-what-when-full-infographic

 

One day ahead of Jamie Dimon's blockbuster appearance before the Senate Banking Committee, Bloomberg has released the definitive timeline infographic of who knew what, when, together with damning evidence that, contrary to what has been represented by JPM execs, the firm knew about the massive risk, which an in house risk manager described as "trying to land a Boeing 747 without flying lessons", as far back as 2010. Not only that but the firm was actively engaged in fudging its VaR for years in an attempt to hide the monster in the closet ....

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IOSCO: Standing Committee on Commodity Futures Markets - Update to G20 leaders on IOSCO's consultation on the functioning and oversight of oil price reporting agencies

Introduction

 

The G20 Seoul Summit Leaders' Declaration on November 11 - 12, 2010, requested "the IEF, IEA, OPEC and IOSCO to produce a joint report on how the oil spot market prices are assessed by oil price reporting agencies ("PRAs") and how this affects the transparency and functioning of oil markets".

 

As a follow up to this report, in the 2011 G20 Cannes Summit Final Declaration, the G20 Leaders stated: "Recognising the role of Price Reporting Agencies for the proper functioning of oil markets, we ask IOSCO, in collaboration with the IEF, the IEA and OPEC to prepare recommendations to improve their functioning and oversight to our Finance Ministers by mid-2012".

 

At its most recent meeting of the G20 Finance Ministers and Central Bank Governors in Washington, DC, the Final Communiqué stated, among other things:

 

We look forward to the IOSCO progress report on the implementation of its Principles for the Regulation and Supervision of Commodities Derivatives Markets at our next meeting in November. We welcome the consultation by IOSCO on the functioning and oversight of price reporting agencies and look forward to an update on their emerging recommendations for leaders in Los Cabos.

 

This report ("Status Report") describes IOSCO's actions to date on this subject and provides a preliminary indication of the areas of potential concern that will be the subject of continuing discussion relative to the development of forthcoming recommendations by IOSCO and the IOs.

 

IOSCO's Consultation on PRAs

 

On March 1, 2012, IOSCO published a consultation report ("Consultation Report"), as part of its objective of answering the mandate of the G20 Leaders' Cannes Summit Final Declaration "to produce recommendations, in collaboration with the following international organizations IEA, IEF and OPEC on the functioning and oversight of oil price reporting agencies." The Consultation Report was prepared by the then IOSCO Task Force on Commodity Futures Markets ("Task Force"), now Standing Committee on Commodity Futures Markets ("Standing Committee"), as a means for IOSCO to obtain the views of stakeholders on the questions and potential recommendations posed in that report to inform

its final proposals to G20. The questions posed for consultation built upon issues that were identified in the report of the IOs and IOSCO in November 2011.

 

The consultation period closed on March 30, 2012. On April 18 and 19, the Task Force held a meeting in Washington, DC to discuss the comments that were received. As part of that meeting, the Task Force met with the IOs and had a very helpful and informative exchange of views.

 

As made clear in the Consultation Report, PRA-assessed benchmark prices are widely used as references for transactions in a number of physical oil markets, exchanges, clearing houses and over-the-counter ("OTC") oil derivatives contracts, making these prices significant to the functioning of these markets. The activities performed by oil PRAs have, accordingly, an impact on physical oil markets, oil derivatives markets as well as on broader financial markets and the global economy.

 

Accordingly, it is crucial that their arrangements governing how they operate and how they assess prices provide for sufficient safeguards to ensure the integrity of the price assessment function. Because of the importance of price integrity, and a number of technical and regulatory issues raised by PRAs, IOSCO intends to proceed in a deliberative manner so as to ensure a full consideration of these issues and a detailed discussion of any recommendations to be submitted to the G20.

 

Principle: Promotion of Price Convergence through Settlement Reliability - Settlement and delivery procedures should reflect the underlying physical market and promote reliable pricing relationships and price convergence and should be regularly evaluated to ensure that they meet this standard. Settlement and delivery terms should be specified and made available to market participants.

________________________________________

These areas of potential concern include:

Methodology; A key concern with respect to the methodology used to construct a price is that the data from which it is derived will not be susceptible to manipulation or otherwise artificially influenced or distorted

Judgment; The Standing Committee acknowledges that certain discretion may be required to assess spot crude markets. The fact that assessments involve the exercise of judgment, however, contributes to the potential for manipulation or other abusive conduct to influence price assessments.

Transactions used in price assessments; IOSCO understands that a PRA price assessment is based on bids, offers and trades that are reported voluntarily and that this creates opportunity for a trader to submit a partial picture, i.e. an incomplete set of its trades in order to influence the assessment to the trader’s advantage (e. g., to advantage a derivatives market position).

Trade reconstruction; Concerns have also been raised that all of the information considered and judgments made in forming a price assessment should be memorialized with sufficient information to identify the persons submitting and analysing the information.

Independence and Avoidance of Conflicts of Interest; Based on IOSCO members’ regulatory experience with financial services firms, as well as certain comments from the consultation, we contemplate that we will discuss the need for recommendations that focus on ensuring that the assessment process is made by independent analysts and is not tainted by conflict of interest.

Complaints; Many commenters focused on their inability to challenge an assessment or other practices at the PRA.

Document Retention; The ability to reconstruct an audit trail, access the price assessment process and investigate possible market manipulation requires the existence of actual records for examination.

External Accountability Mechanisms; In the absence of statutory regulation of PRAs, there is no external enforcement entity or mechanism to ensure compliance with any recommendations for PRAs

Next Steps; The Standing Committee is in the process of finalizing a draft set of recommendations that will be circulated to members and the IOs for comment and further discussion with the intent to deliver a final report of recommendations as contemplated by the G20 Leaders. The Standing Committee will consider further stakeholder engagement as appropriate as recommendations are finalised.

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JPMorgan Trading Loss May Reach $9 Billion

 

BY JESSICA SILVER-GREENBERG AND SUSANNE CRAIG

Losses on JPMorgan Chase's bungled trade could total as much as $9 billion, far exceeding earlier public estimates, according to people who have been briefed on the situation.

 

When Jamie Dimon, the bank's chief executive, announced in May that the bank had lost $2 billion in a bet on credit derivatives, he estimated that losses could double within the next few quarters. But the red ink has been mounting in recent weeks, as the bank has been unwinding its positions, according to interviews with current and former traders and executives at the bank who asked not to be named because of investigations into the bank...

 

 

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It has been a while

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NEW RUMORS ... Where's CQNAO, now ???

 

I (and many others here) predicted the "Global tsunami" before it happened.

We did things like shorting banks, and buying puts on financial stocks - I thought that Countrywide Financial

was an especially good short - and wrote a long article years too early about how Fannie & Freddie were over-geared

 

"The Twin Towers of Debt" : http://drbubb.blogsp...erty-crash.html

 

I also wrote about how we were destined to relearn ... The Lessons of Our Grandparents

 

I think any senior banker who failed to foresee the Crisis was blind or corrupt, and I certainly think Greenspan

should be in jail and stripped of his pension and is reputation - and Gordon Brown too.

 

I recently put on some short positions, by way of buying Jan Calls on TZA (3X Bear etf),

but I am still a little below breakeven.

 

RUMORS of a Derivatives Blow-up:

There are now some rumors circulating on the web, about a big derivatives blow-up,

possibly involving Deutsche bank. The news should break before year end, it is said.

 

/From "Tiny Steps"

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It would be hard to overstate the recklessness of these banks. The numbers that you are about to see are absolutely jaw-dropping. According to the Comptroller of the Currency, four of the largest U.S. banks are walking a tightrope of risk, leverage and debt when it comes to derivatives. Just check out how exposed they are…

JPMorganChase

Total Assets: $1,812,837,000,000 (just over 1.8 trillion dollars)

Total Exposure To Derivatives: $69,238,349,000,000 (more than 69 trillion dollars)

Citibank

Total Assets: $1,347,841,000,000 (a bit more than 1.3 trillion dollars)

Total Exposure To Derivatives: $52,150,970,000,000 (more than 52 trillion dollars)

BankOfAmerica

Total Assets: $1,445,093,000,000 (a bit more than 1.4 trillion dollars)

Total Exposure To Derivatives: $44,405,372,000,000 (more than 44 trillion dollars)

GoldmanSachs

Total Assets: $114,693,000,000 (a bit more than 114 billion dollars – yes, you read that correctly)

Total Exposure To Derivatives: $41,580,395,000,000 (more than 41 trillion dollars)

That means that the total exposure that Goldman Sachs has to derivatives contracts is more than 362 times greater than their total assets.

=====

/see: http://www.hangthebankers.com/the-coming-derivatives-panic-that-will-destroy-global-financial-markets/

These numbers are VERY MISLEADING, as I have written many times before

(Let's hang the sloppy journalist for publishing useless numbers !)

But there may be a ticking time bomb, in derivatives linked to European Sovereign debt. That would be my best guess on where to look for it. And Deutsche Bank's exposure in that area may need some close attention.

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Hi Dr. B, those astronomical numbers are irrelevant, yes , until a counterparty fails.

At that point the notional becomes nominal, you agree?

Therefore, we must plan accordingly: NOTHING WILL BE ALLOWED TO FAIL.

This means printy printy, if you ask me. So, it seems gold/silver are a good hedge against "printy" AND a good hedge against systemic failure if some counterparty does actually blow.

 

BUT, not paper gold. That may blow too, IMO

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Hi Dr. B, those astronomical numbers are irrelevant, yes , until a counterparty fails.

At that point the notional becomes nominal, you agree?

Therefore, we must plan accordingly: NOTHING WILL BE ALLOWED TO FAIL.

This means printy printy, if you ask me. So, it seems gold/silver are a good hedge against "printy" AND a good hedge against systemic failure if some counterparty does actually blow.

 

BUT, not paper gold. That may blow too, IMO

 

 

US and UK agree failed banks plan

http://www.bbc.co.uk/news/business-20663580

 

They're saying that they won't bail out any failed banks in future.

 

What do you think of the implications?

Would they really let a bank collapse?

Would a lack of bail-out make the banks think more about their risk profile, and run a more sound business accordingly?

Even if one small counterparty in the banking system collapsed, what would the chain reaction be?

Or is it all hot air to get make the banks scared, and they would get rescued to avoid a run on all the other banks if one went down?

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There is absolutely no chance that a big bank will be allowed to go bust. There will be plenty of bluster and talk but the machine will keep running. Printy printy.

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Deutsche Bank: Explaining The $12 Billion Loss That Never Was

 

Seeking Alpha-7 Dec 2012

You have tens of billions in theoretical losses on a complex credit derivatives book to protect against and you bought yourself some S&P 500 ...

 

In July of 2011, Reuters ran an exclusive entitled "Deutsche's Firing of Top Trader Sparks Probe". The story revolved around Alex Bernand who, prior to being hired by Deutsche Bank (DB) in 2006 as Global Head of Credit Correlation, was the architect of Bank of America's structured credit business. Before Deutsche, Bernand was a "rising star in the derivatives world"* and authored "The Bank of America Guide To Advanced Correlation Products" in 2004. At Deutsche, Bernand managed a book of derivatives from London affectionately called the "exotics book" and reported initially to Boaz Weinstein, a terribly ironic factoid given Weinstein's role in harpooning another London derivatives trader early in 2012.

 

Bernand was fired by Deutsche in October of 2009 after a complaint by Matthew Simpson, a former risk manager at the firm who, at the time of the complaint, was working at the bank's New York credit correlation desk. Simpson alleged "substantial anomalies" in the firm's credit default swap portfolio, allegations which, according to Reuters, led Deutsche to "the discovery of improper trading in one of Bernand's personal accounts." In all likelihood, it wasn't Bernand's personal trading accounts that Simpson was concerned about. In fact, Simpson's claims -- which eventually found their way to the SEC in the form of a Sarbanes-Oxleywhistleblower case -- revolve around the routine mismarking of credit positions in a deliberate attempt to inflate profits and bonuses, according to the Financial Times.

== ==

 

* Been there, done that:

Not the losing money, or inflating profits part - instead, I was Named as one of the Top 100 stars of the Global Derivatives business.

They don't all wind up in scandals.

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There is absolutely no chance that a big bank will be allowed to go bust. There will be plenty of bluster and talk but the machine will keep running. Printy printy.

 

Here are some folks sitting around and ranting about Banks and big derivatives exposures...

 

http://www.youtube.com/watch?v=jx3yAhp9nxo

 

"We will never pay off a $6 Trillion Derivatives debt," they say.

 

What a bunch of retarded monkeys!

They are obviously unaware of how derivatives work.

 

You don't "pay off" a derivatives exposure.

The reported Face Values of these exposures are totally theoretical amounts - You need to have prices move through the various settlement pricing points, in order to see whether the exposure winds up as a gain or a loss.

 

A theoretical HUGE exposure could net down to zero, depending on how the prices move.

 

Don't listen to stupid turkeys, who know not what they are talking about!

When you hear garbage like this - abuse the monkeys that speak nonsense

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(Unconfirmed - Take this with a big grain of Salt!):

 

Deutsche Bank Accounts Are Frozen

 

HOT EXPLOSIVE BREAKING NEW: Deutsche Bank Accounts Are Frozen

 

Wednesday December 12, 2012

by Tom Heneghan / International Intelligence Expert

 

45937-the-deutsche-bank-headquarters-in-frankfurt-germany.jpgsource

UNITED States of America - It can now be reported that on the direct orders of the IMF (International Monetary Fund), the U.S. Provost Marshal, European INTERPOL and the German Police, all Deutsche Bank derivative-riddled proprietary accounts were frozen today on 12-12-12.

 

Item: The crooked U.S. Federal Reserve has now been totally neutralized by what took place in Europe today.

 

The announcement by Fed Chairman Bernard Bernanke of his program QE Infinity is not a stimulus but the continuation of a ponzi scheme to buy back toxic assets aka worthless mortgage-backed securities tied to major U.S. financial giants (gangster banks) and none other than their underwriter, the Nazi "Skull and Bones" Deutsche Bank.

 

P.S. Now that the Deutsche Bank has had their derivative accounts frozen there are really no derivatives outstanding for the crooked Fed to prop up.

 

Translation: QE4 is now Titanic5.

 

P.P.S. At this hour we can also divulge that gangster U.S. banks like Goldman Sachs and U.S. Bank are now totally exposed in new illegally cross-collateralized derivative positions aka written call options in crude oil and unleaded gasoline futures markets, which were designed to protect their already undermargined naked long positions in natural gas.

 

P.P.P.S. So, at this hour, the IMF and the U.S. Provost Marshal continue to order massive asset redemption and repatriation of collateralized assets aka precious and industrial metals.

In closing, we can now directly report that after the freezing of the Deutsche Bank proprietary accounts that took place today, 12-12-12, the IMF is now prepared to fully implement the Wanta-Reagan-Mitterrand Protocols with the Obama Administration absent.

Finally, it is time to buy the black gold and sell the yellow gold.

== ==

 

Hmm. I do not know where that last line comes from (??)

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(this seems to counter the above article)

 

Deutsche Bank watchdog dismisses false accounting claims - sources

Reuters-Dec 12, 2012

 

Dec 12 (Reuters) - Deutsche Bank's risk committee has found no need for a fresh investigation of allegations the lender failed to recognise billions of euros in unrealised losses during the financial crisis, two sources said.

 

Deutsche Bank declined to comment.

Last week, law firm Labaton Sucharow LLP said Eric Ben-Artzi, a former quantitative risk analyst at Deutsche Bank, used a whistleblower programme to tell the U.S. Securities and Exchange Commission the bank failed to report the value of its credit derivatives portfolio correctly from 2007-10.

The Financial Times reported at the time that the unrealised losses totalled up to $12 billion.

Deutsche Bank has rejected the claims as unfounded.

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http://www.blacklistednews.com/Wall_Street%27s_Derivative_Shell_Game/24242/0/38/38/Y/M.html

Wall Street's Derivative Shell Game

 

.... Wall street has found a new way to avoid regulation and continue their derivative CDS gambling casino and it is setting up the way for a new financial crisis. They are re-wrapping credit default swaps and other derivatives into futures, which are exempt from Dodd-Frank. more stringent regulations.....

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More from Tom Heneghan

http://www.myspace.c...ghan_intel/blog

Monday February 18, 2013

Protocol Supreme Court Update and Commerzbank AG

 

.....IMF Managing Director Christine Lagarde and the European Union (EU) derivative watchdog ... have ordered complete liquidation of Commerzbank AG derivatives reference illegal cross-collateralized derivatives that were written put options on the Japanese yen and precious metals.....

 

.... U.S. Attorney General Eric Holder .... engaged in a verbal shouting match with a Vatican financial officer (....Father Leclair).

 

The shouting match concerned the fact that the Vatican Bank has frozen billions of dollars of JPMorgan Chase funds currently deposited in the Vatican Bank.

 

... the JPMorgan funds frozen by the Vatican Bank represents billions of dollars tied to the former broker dealers MFGlobal and PFG that collapsed in 2012....

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2) DRACONIAN CAPITAL AND EXCHANGE CONTROLS

 

Do not for a moment think that this will be limited to Cyprus only. This is all you need to know.

 

Please remember the golden rules of panic:

 

1) Don't panic

2) Panic first

 

http://www.telegraph.co.uk/finance/financialcrisis/9949686/Cyprus-savers-face-draconian-measures-in-bid-to-avoid-nations-exit-from-eurozone.html

 

Cyprus savers face draconian measures in bid to avoid nation's exit from eurozone

Large depositors face heavy losses and the Central Bank of Cyprus will be given new powers to shut down struggling banks under a last-ditch plan to prevent the island’s exit from the euro.

 

Included in legislation drafted by the European Central Bank are draconian controls on capital, including unprecedented restrictions on debit card use and cash withdrawals.

http://www.telegraph.co.uk/finance/financialcrisis/9949686/Cyprus-savers-face-draconian-measures-in-bid-to-avoid-nations-exit-from-eurozone.html

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