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Goldman Sachs Takeover of Bank Of England

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Finally the successor to Mervyn King is announced. In one corner was Goldman Sachs Jim O’Neil and in the other was Goldman Sachs Mark Carney who was the lucky winner.  Carney is not due to takeover from King until next June but ZeroHedge put forward a theory of Carney being picked for damage limitations purposes.

“Why not get a head that’s global? Bankers aren’t very popular, and a Canadian sounds like a good choice,” said Kent Matthews, a professor at Cardiff University and former Bank of England researcher. “It may well be that to restore credibility they have to look outside.”

 

So that’s the strategy: play Carney off as a Canadian, instead of as Goldman. We wonder how many minutes the general public will be fooled by that particular strawman.

Click here for map of Goldman Sach’s European domination so far.

Remember the trader Alessio Rastani on the BBC declare

“The governments don’t rule the world, Goldman Sachs rules the world.”

Check out the clip at 2:38

source: ZeroHedge, Guardian, Huffington Post

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Lawyers For Goldman Sachs etc Accidentaly Release Embarassing Papers Of Naked Short Selling

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Matt Taibbi of The Rolling Stone has broken an unbelievable story of lawyers for Goldman Sachs, Merrill Lynch and Bank of America have just released accidentally highly embarrassing documents outlining their practices in naked short selling. While attempting to keep the documents sealed in fighting an unsuccessful lawsuit brought by Overstock, the lawyers accidentally disclosed them while filing a unredacted version of Overstock’s motion as an exhibit in their declaration of opposition to that motion.

The lawyers for Goldman and Bank of America/Merrill Lynch have been involved in a legal battle for some time – primarily with the retail giant Overstock.com, but also with Rolling Stone, the Economist, Bloomberg, and the New York Times. The banks have been fighting us to keep sealed certain documents that surfaced in the discovery process of an ultimately unsuccessful lawsuit filed by Overstock against the banks.

Last week, in response to an Overstock.com motion to unseal certain documents, the banks’ lawyers, apparently accidentally, filed an unredacted version of Overstock’s motion as an exhibit in their declaration of opposition to that motion. In doing so, they inadvertently entered into the public record a sort of greatest-hits selection of the very material they’ve been fighting for years to keep sealed.

….

The lawsuit between Overstock and the banks concerned a phenomenon called naked short-selling, a kind of high-finance counterfeiting that, especially prior to the introduction of new regulations in 2008, short-sellers could use to artificially depress the value of the stocks they’ve bet against. The subject of naked short-selling is a) highly technical, and b) very controversial on Wall Street, with many pundits in the financial press for years treating the phenomenon as the stuff of myths and conspiracy theories.

Now, however, through the magic of this unredacted document, the public will be able to see for itself what the banks’ attitudes are not just toward the “mythical” practice of naked short selling (hint: they volubly confess to the activity, in writing), but toward regulations and laws in general.

Some of the interesting comments were

“Fuck the compliance area – procedures, schmecedures,” chirps Peter Melz, former president of Merrill Lynch Professional Clearing Corp. (a.k.a. Merrill Pro), when a subordinate worries about the company failing to comply with the rules governing short sales.

and
former Merrill Pro president, Thomas Tranfaglia, saying in a 2005 email: “We are NOT borrowing negatives… I have made that clear from the beginning. Why would we want to borrow them? We want to fail them.” Trafaglia, in other words, didn’t want to bother paying the high cost of borrowing “negative rebate” stocks. Instead, he preferred to just sell stock he didn’t actually possess. That is what is meant by, “We want to fail them.” Trafaglia was talking about creating “fails” or “failed trades,” which is what happens when you don’t actually locate and borrow the stock within the time the law allows for trades to be settled.

Naked short selling explanation.
 naked short selling, in essence, is selling stock you do not have. If you don’t have to actually locate and borrow stock before you short it, you’re creating an artificial supply of stock shares.
Well worth reading the full article at : Rolling Stone

Timothy Geithner and Goldman Sachs

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Timothy Geithner never formally left the New York Fed, here he is squirming over questioning by Marcy Kaptur over his links with Goldman Sachs during the 2008 crisis.

Goldman Sachs Euro Dictatorship

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Paulson Gave Hedge Funds Insider Tip on Fannie Mae Rescue

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It was reported in Bloomberg of how Hank Paulson in 2008 give a number of hedge fund managers the inside tip of the rescue of Fannie Mae. Around a dozen were present at a meeting including at least 5 of his former Goldman Sachs buddies. My God those guys get everywhere ;-).

Paulson had been pushing a plan in Congress to open lines of credit to the two struggling firms and to grant authority for the Treasury Department to buy equity in them. Yet he had told reporters on July 13 that the firms must remain shareholder owned and had testified at a Senate hearing two days later that giving the government new power to intervene made actual intervention improbable.

went on to describe a possible scenario for placing Fannie and Freddie into “conservatorship” — a government seizure designed to allow the firms to continue operations despite heavy losses in the mortgage markets.

Stock Wipeout

Paulson explained that under this scenario, the common stock of the two government-sponsored enterprises, or GSEs, would be effectively wiped out. So too would the various classes of preferred stock, he said.

The fund manager says he was shocked that Paulson would furnish such specific information — to his mind, leaving little doubt that the Treasury Department would carry out the plan. The managers attending the meeting were thus given a choice opportunity to trade on that information.

Isn’t that illegal?

EU Crisis Explained

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Want to know what is happening in the EU. Well in an interview on Russia Today’s program Capital Account with Paul Craig Roberts an economist (former Assistant Secretary of the Treasury in the Reagan Administration) breaks it down.

Private bankers such as Goldman Sachs sold CDS (Credit Default Swaps) to buyers of bonds. These CDS are like an insurance policy that pays out if the bonds are defaulted on. Of course, these private banks can’t afford to pay out (no surprise there). So they want the ECB to print money, buy the sovereign bonds to cover these defaults and let the European people pick up the tab.  This might explain the spate of Goldman Sachs men taking over all around EU in last few weeks.

Mario Draghi (former vice chairman and managing director of Goldman Sachs) in charge of the ECB. They have Mario Monti(international advisor to Goldman Sachs) in Italy and Lucas Papademos was head of Greece’s Central Bank when Goldman Sachs were helping “the Greek government to mask the true extent of its deficit with the help of a derivatives deal that legally circumvented the EU Maastricht deficit rules“.

The only fly in the ointment according to Paul Craig Roberts is that Germany are steadfastly against using the ECB to print. Hence the failed German Bund auction during the week, which Roberts says was engineering by the ECB, US, EU Commission and private bankers to give Germany the message. Shortly after the auction the German Finance minister backed off getting the private banks sharing the debt.

Check out the interview below. Forward to 17:40 into the program.

Goldman Sachs taking over Europe

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If every there was proof of the bankers taking over Europe now its becoming more clear than ever.

Image

 

Check out the video from France 24.

Of course there was the video of the trader Alessio Rastani on BBC who said Goldman Sachs rules the world.

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