Mar 192015
 
by Zacks Equity Research   Published on March 16, 2015 | No Comments [This should lower our debt …} According to a Bloomberg report, the U.S. Justice Department (“DOJ) is seeking roughly $1 billion from each of the major global bank under investigation for settling foreign currency (“FX”) manipulation probe. The banks involved are Barclays PLC (BCS – Analyst Report), Citigroup Inc. (C – Analyst Report), JPMorgan Chase & Co. (JPM – Analyst Report), The Royal Bank of Scotland Group plc (RBS – Snapshot Report) and UBS Group AG (UBS). The settlement talks that took a serious turn in the last few weeks will likely lead to resolution of the FX-market rigging allegations brought by the U.S. Though $1 billion is the starting point, the actual settlement amount is expected to vary as the banks push hard to lower penalties. Further, the U.S. prosecutors are insisting Barclays, JPMorgan, Citigroup and Royal Bank of Scotland to plead guilty of charges. Notably, UBS had been granted immunity from suit for antitrust violations as the company was the first to notify the U.S. authorities about the probable manipulations. Taking into account the looming settlement, these banks increased their legal reserves in the last quarter to offset any financial implication once the talks are finalized. Barclays took £750 million ($1.1 billion) in reserve for FX settlement in the fourth quarter, while Royal Bank of Scotland reserved £1.2 billion for legal issues, with £320 million pertaining specifically to the above-mentioned probe. Further, JPMorgan reserved $990 million for legal expenses and Citigroup set aside $2.9 billion, without specifying the amount for FX settlement. Notably, CHF176 million ($175 million) was reserved by USB for legal charges. Amid the widespread global investigation by the U.S., British and Swiss regulators regarding the alleged manipulation of foreign exchange market, five major global banks were fined $3.4 billion (in total) last year on similar charges. These include Citigroup, JPMorgan, Royal Bank of Scotland, HSBC Holdings plc (HSBC – Analyst Report), Bank of America Corp. (BAC – Analyst Report) and UBS (read more: Another Blow to Global Banks: Fined Billions for FX Manipulation). Regulators across the globe are now dealing allegations of rigging WM/Reuters rates, which are used for determining FX prices, with a heavy hand. Also, banks conducted internal investigations and handed over the findings to the regulators. Based on these internal probes, the companies fired/suspended several bankers for their alleged role in rigging rates. WM/Reuters rates are published hourly for 160 currencies and half-hourly for the 21 (more…)
Mar 192015
 
by Zacks Equity Research   Published on March 16, 2015 | No Comments According to a Bloomberg report, the U.S. Justice Department (“DOJ) is seeking roughly $1 billion from each of the major global bank under investigation for settling foreign currency (“FX”) manipulation probe. The banks involved are Barclays PLC (BCS – Analyst Report), Citigroup Inc. (C – Analyst Report), JPMorgan Chase & Co. (JPM – Analyst Report), The Royal Bank of Scotland Group plc (RBS – Snapshot Report) and UBS Group AG (UBS). The settlement talks that took a serious turn in the last few weeks will likely lead to resolution of the FX-market rigging allegations brought by the U.S. Though $1 billion is the starting point, the actual settlement amount is expected to vary as the banks push hard to lower penalties. Further, the U.S. prosecutors are insisting Barclays, JPMorgan, Citigroup and Royal Bank of Scotland to plead guilty of charges. Notably, UBS had been granted immunity from suit for antitrust violations as the company was the first to notify the U.S. authorities about the probable manipulations. Taking into account the looming settlement, these banks increased their legal reserves in the last quarter to offset any financial implication once the talks are finalized. Barclays took £750 million ($1.1 billion) in reserve for FX settlement in the fourth quarter, while Royal Bank of Scotland reserved £1.2 billion for legal issues, with £320 million pertaining specifically to the above-mentioned probe. Further, JPMorgan reserved $990 million for legal expenses and Citigroup set aside $2.9 billion, without specifying the amount for FX settlement. Notably, CHF176 million ($175 million) was reserved by USB for legal charges. Amid the widespread global investigation by the U.S., British and Swiss regulators regarding the alleged manipulation of foreign exchange market, five major global banks were fined $3.4 billion (in total) last year on similar charges. These include Citigroup, JPMorgan, Royal Bank of Scotland, HSBC Holdings plc (HSBC – Analyst Report), Bank of America Corp. (BAC – Analyst Report) and UBS (read more: Another Blow to Global Banks: Fined Billions for FX Manipulation). Regulators across the globe are now dealing allegations of rigging WM/Reuters rates, which are used for determining FX prices, with a heavy hand. Also, banks conducted internal investigations and handed over the findings to the regulators. Based on these internal probes, the companies fired/suspended several bankers for their alleged role in rigging rates. WM/Reuters rates are published hourly for 160 currencies and half-hourly for the 21 most-traded ones. Hence, it is a (more…)
Mar 042015
 
Editor’s Note: This is a warning shot. The global economy is undergoing a sever change.  I suggest buying precious metals. “metal-in-hand” is the best an option is finding an asset backed digital currency to invest in. Why This Greek Tragedy Could Mean Global Disaster One of the assumptions of the eurozone – those 19 countries in Europe that use the euro as their national currencies – is that if any country left the zone, economic disaster would follow in its wake. Only a few days ago, it appeared that heavily indebted Greece might be forced to drop the euro and return to the drachma, the currency it used before the euro. During the 1990s and early 2000s, Greece was spending money like a sailor on shore leave with a limitless credit card. The government ran up debts amounting to hundreds of billions of dollars to prepare for the 2004 Olympics, among many other infrastructure projects. It also promised retired Greek citizens some of the cushiest pensions in the EU. In 2002, Greece was among the first EU members to adopt the euro. Entrance into the eurozone was contingent on Greece’s accomplishing certain reforms and demonstrating a threshold level of economic prudence. Among the requirements was to maintain a budget deficit of less than 3% and a total government debt under 60% of GDP. Greece never even came close to meeting these targets. To make it look as if it were, Greek politicians engaged in such sleights of hand as not counting military spending as a government expenditure. But if it wanted to join the euro, Greece needed to do more. And Greek politicians weren’t about to ask voters permission to dismantle the cradle-to-grave welfare state financed by borrowed money. To solve the problem, the government hired Goldman Sachs to help tidy up its balance sheet. Goldman created a series of currency swap arrangements using fictional exchange rates. The swaps took billions of dollars of debt off Greece’s balance sheet and allowed the country to issue far more debt than what was actually showing up in its account ledgers. Goldman used similar financial engineering to help prop up ill-fated energy trader Enron Corp., and we all know how well that experiment turned out. In other words, Greece never, ever should have been allowed to join the eurozone. But now that it’s part of it, there seems to be no end to the willingness of EU (more…)
Jan 082015
 
1/7/2015 By Emily Stephenson and Sarah N. Lynch WASHINGTON (Reuters) – Republicans in the U.S. House of Representatives failed on Wednesday to round up enough votes for a bill scaling back various financial reforms, a surprising defeat in an area conservatives hoped to prioritize this year. Republican Party leaders brought forward numerous bills to revamp financial reforms under President Barack Obama’s Democratic administration and hoped to make more dramatic changes after taking control of both houses of the U.S. Congress in last November’s congressional elections. Before the vote on Wednesday, Democrats slammed the bill as a Republican effort to chip away at the 2010 Dodd-Frank financial law, including one provision that would have given banks extra time to comply with part of the Volcker rule. Supporters fell six votes short of what was needed to send the legislation to the U.S. Senate. The proposal was among the first votes House lawmakers took after returning to Washington this week. “We’re tired of really bad Wall Street giveaways being tacked onto other legislation,” Representative Jan Schakowsky, a Democrat from Illinois, said on the House floor before the vote. http://news.yahoo.com/u-house-fails-approve-bill-diluting-dodd-frank-204253008–sector.html Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Nov 062014
 
Full Article at Forbes – http://onforb.es/19E7PPa The International Monetary Fund (IMF) quietly dropped a bomb in its October Fiscal Monitor Report. Titled “Taxing Times,” the report paints a dire picture for advanced economies with high debts that fail to aggressively “mobilize domestic revenue.” It goes on to build a case for drastic measures and recommends a series of escalating income and consumption tax increases culminating in the direct confiscation of assets. Yes, you read that right. But don’t take it from me. The report itself says: “The sharp deterioration of the public finances in many countries has revived interest in a “capital levy”— a one-off tax on private wealth—as an exceptional measure to restore debt sustainability. The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair). … The conditions for success are strong, but also need to be weighed against the risks of the alternatives, which include repudiating public debt or inflating it away. … The tax rates needed to bring down public debt to precrisis levels, moreover, are sizable: reducing debt ratios to end-2007 levels would require (for a sample of 15 euro area countries) a tax rate of about 10 percent on households with positive net wealth. (page 49)” Note three takeaways. First, IMF economists know there are not enough rich people to fund today’s governments even if 100 percent of the assets of the 1 percent were expropriated. That means that all households with positive net wealth—everyone with retirement savings or home equity—would have their assets plundered under the IMF’s formulation. Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Oct 302014
 
This video explains the difference between money and currency.  What wealth really is and how you are being effected by the monetary system and the banking manipulations.  A great survival video.  You are always safer when you are in the know. – Mike Your true wealth is your time and freedom. Money is just a tool for trading your time.It’s a container to store your economic energy until you’re ready to deploy it. But the whole world has been turned away from real money and has been fooled into using currency, -a deceiptful imposter that is silently stealing your two most valuable assets,Your time and your freedom. Welcome to the rabbit hole. We are entering a period of financial crisis that is the greatest the world has ever known.The wealth transfer that will take place during this decade is the greatest wealth transfer in history.Wealth is never destroyed. It is merely transferred.   [hdvideo id=21] Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Oct 272014
 
This is the clearest statement of economic conditions and the ramification of the current conditions that I have encountered. – Mike DeGraw, who is advocating for a guaranteed income for all US residents, states: “If people could just wrap their head around the fact that we have over $94 Trillion in wealth in the United States, I think we would have a revolution overnight. It has gotten to the point where it would only take 0.5% of the 1%’s wealth to eliminate poverty nationwide.” About the author | David DeGraw is an author and an organizer. An early organizer with Occupy Wall Street, David is credited by many as starting the We Are the 99% meme that launched a movement. He is an independent investigative journalist. In February 2010, DeGraw published a book called “The Economic Elite Vs. The People of the United States of America.” The last section of the book was a call to action, using the concept of 99 percent of American income earners. [hdvideo id=20] Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
May 062014
 
Christine LaGarde discusses the reset and how it will take place. This video is required for anyone holding Iraqi dinar and are interested in the global reset. I have watched this video several times and there is something else to pay attention to every time. I believe the global reset will happen by 2017.     [hdvideo id=25 ratingscontrol=on views=on title=on]       Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
May 222013
 
US Banker Guess What? Basel III OversimplifiesUS BankerSince the announcement of Basel III capital standards in 2010, the Basel Committee has been busy extending and tinkering with a number of its provisions. One of the latest considerations by the Basel Committee is an interest rate risk capital charge …No need to fear new capital requirementsMortgage StrategyDeutsche Bank Cut by JPMorgan on Concern Over CapitalBloombergTaking Stock of Capital RatiosWall Street Journal (blog)Euromoney Magazineall 5 news articles    Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
May 222013
 
Apra's approach to Basel III liquidity rules explainedInternational Financial Law ReviewAlthough the Basel Committee on Banking Supervision (BCBS) issued new guidance for meeting the Liquidity Coverage Ratio (LCR) in January 2013, the Australian Prudential Regulatory Authority (Apra) has adopted a more conservative approach.    Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)