“Most Powerful Man In The World”‘s Inner Circle Probed By US Regulators For Money Laundering

Being 2 for 2 in losses this week (The US Election and Time’s “world’s most powerful person), it appears President Obama has fallen back on his regulatory army to take the fight to Vladimir Putin. As WSJ reports, U.S. prosecutors have launched a money-laundering investigation of billionaire Gennady Timchenko – a member of Putin’s inner […]

“Common People Do Not Carry This Much Currency” – How Police Justify Stealing American Citizens’ Money

Submitted by Mike Krieger via Liberty Blitzkrieg blog, Police confiscating Americans’ hard earned cash, as well as a wide variety of other valuables, without an arrest or conviction is a disturbing and growing practice throughput these United States. Since cops get to keep the seized funds and use the money on pretty much anything they want, the practice is […]

US Regulators Fear “Runs” From PIMCO’s Systemic Risk As Outflows Soar To 12.5% Of Assets

Things are rapidly shifting from bad to worse for PIMCO. In a triple whammy this morning, Bloomberg reports the Total Return Fund ETF (managed previously by Bill Gross) has suffered $446 million outflows (or over 12.5% of assets) so far; Morningstar downgrades the fund from ‘gold’ to ‘bronze’ citing “uncertainty regarding outflows and the reshuffling […]

Is the Fed Preparing to Asset-Strip Local Governments?

In an inscrutable move that has alarmed state treasurers, the Federal Reserve, along with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, just changed the liquidity requirements for the nation’s largest banks. Municipal bonds, long considered safe liquid investments, have been eliminated from the list of high-quality liquid collateral […]

SEC Freezes Bugatti-Driving 26-Year-Old “AwesomePennyStocks” Owner’s Assets

GIH: The SEC is dealing with a new generation of digital ‘boiler rooms’ – email lists & forums that present misleading information to lure investors.  “AwesomePennyStocks” was apparently one of the largest such newsletters, promoting otherwise worthless companies many times dumping their own shares as the price rise.  Sadly, many clients don’t bother to do […]

Europe Considers Wholesale Savings Confiscation, Enforced Redistribution

GIH: Scary revelations coming from the EU, regarding ‘bail-in’ strategies funded by savers.  How this ‘confiscation’ of assets is to be structured and sold to the public (if they have a choice) remains to be seen.  But even having such a discussion should make anyone with any assets in Europe worry.  Cyprus was a ‘test […]

Modern Institutional Decay

What has happened to our institutions? The trend of the modern institutionalization of our system began in the late 19th century, but didn’t gain worldwide support until the early 20th century. It reached its peak after World War 2, when the feeling was that global institutions could stave off further bloody conflicts. Without WW2, establishing […]

The IMF wants you to pay 71% income tax

When the IMF suggests increases in tax rates potentially as high as 71%, we should listen.  The IMF has been at the forefront of global financial political agendas such as the one world currency (SDRs), default of the USD from the Gold standard (thus creating Forex market), and the backing of international ‘death’ loans as […]

Volcker Rule Ushers in Era of Increased Oversight of Trades

Finally, the Volcker rule is being implemented, after 3 years of debate and modifications.  Although it’s not as originally proposed, today is the first day the rule is being enforced.  It’s questionable though, how much this rule will actually impact the markets.  Banks are now not doing proprietary trading, but other entities will.  What this […]

EC fines bank record 1.7 Billion Euro

Today, the European Commission has fined six financial institutions for a total fine of $2.3 Billion USD, a record fine.  This takes the total tally to $6 Billion in fines.  It makes one wonder, at what point do the fines get so high that the activities they are being fined for are not net profitable? […]

Bitcoin rises more than 20% over 600 before Senate hearing

As the Senate is convening it’s first hearing on ‘digital currencies’ (but specifically Bitcoin) it has surged above $600/USD which is a record high. One reason for the surge ahead of the Senate hearing could be partially fuelled by the fact that you can now buy Real Estate in China with Bitcoin: Bitcoin acceptance in […]

SAC Capital pleads guilty to fraud

SAC Capital, once thought to be a world leading money manager, has plead guilty to four counts of securities fraud and one count of wire fraud. Steve Cohen’s SAC Capital Advisors hedge fund pleaded guilty to fraud charges Friday as part of a $1.2bn deal to resolve a long-running insider trading investigation. At a court […]

Goldman Sachs under investigation for Forex manipulation

Goldman Sachs is the latest Forex trading bank to be added to the list of banks being investigated for rigging of Forex rates used to price other derivatives, and for benchmarking purposes, known as the WM/Reuters rates.  However the investigation against Goldman Sachs also includes commodities, options, and technology systems.  Bloomberg reports: Goldman Sachs Group […]

Congress Sells Out To Wall Street, Again

The U.S. House just passed a bill called H.R. 992 – the Swaps Regulatory Improvement Act – that was literally written by mega-bank lobbyists. It repeals the laws passed in 2010 to prevent another meltdown like the one that crashed our economy in 2008. The repeal was co-sponsored by a former Goldman Sachs executive and […]

Congress eliminates debt ceiling with HR2775

Intentionally or not, HR2775 passed late last night provides the US Treasury with the authority to ‘suspend’ the debt ceiling to avoid a default if the situation should arise.  This has been picked up by a small amount of journalists and market participants.  The NY Times notes: Did Congress just accidentally kill the debt ceiling? […]

SAC Capital Insider Trading record fines

Steven A. Cohen was once regarded as one of Wall Street’s leading fund managers, managing SAC Capital, until… On November 20, 2012, according to The Wall Street Journal, Cohen was implicated in an alleged insider trading scandal involving an ex-SAC manager, Mathew Martoma. Cohen was not directly named in an indictment released in New York, […]