HEADS UP, AMERICA, THE SIGNS ARE EVERYWHERE THAT WE'RE HEADED FOR A "WORSE THAN 2008".
THIS IS OF UTMOST IMPORTANCE TO AMERICAN CITIZENS.
THE EIGHT BIGGEST BANKS IN AMERICA GOT SLAPPED ON THE WRIST FOR FAILURE TO COMPLY WITH THE REGULATIONS ESTABLISHED BY CONGRESS AFTER THE 2008 "BANKING CRISIS" AND ENSUING "RECESSION".
FIVE OF THE EIGHT ARE IN NO WAY IN COMPLIANCE AND SO, JUST AS IN 2008, THEIR CUSTOMERS ARE AT HIGH RISK OF, ONCE AGAIN, LOSING IT ALL, BUT THESE BANKS WOULD NOT SUFFER, ONLY THEIR CUSTOMERS.
MANY ARE WARNING THAT, SHOULD THOSE FAIL TO COMPLY, AS THEY DID IN 2008, TO PROTECT DEPOSITORS, ETC, WHAT WILL ENSUE WILL BE FINANCIAL CHAOS IN AMERICA, WORSE THAN IN 2008.
THREE HURRIED MEETINGS THAT THE FEDERAL RESERVE CALLED, THREE DAYS IN A ROW , PLUS A REALLY RARE AND ALSO HASTY MEETING OF THE FED'S CHAIR WITH THE WHITE HOUSE ALL HAPPENED THIS MONTH.
SOME SOURCES CALLED THEM "SUDDEN, EXPEDITED MEETINGS", BUT EMERGENCY MEETINGS IS WHAT THEY WERE AND WE DON'T KNOW WHAT WAS DISCUSSED IN THE APRIL 11th OR APRIL 13th MEETING, NOR WHY THE HURRY.
THE FIRST CALLED MEETING...
FROM THE FED'S WEBSITE, THE FOLLOWING:
"It is anticipated that the closed meeting of the Board of Governors of the Federal Reserve System at 11:30 AM on Monday, April 11, 2016, will be held under expedited procedures, as set forth in section 26lb.7 of the Board's Rules Regarding Public Observation of Meetings, at the Board's offices at 20th Street and C Streets, N.W., Washington, D.C. The following items of official Board business are tentatively scheduled to be considered at that meeting.
Meeting Date: Monday, April 11, 2016
| Matter(s) Considered |
|---|
| 1. | Review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks. |
ABOUT THAT PROMISED UPDATE, THE FED DECLINED TO MAKE PUBLIC WHAT WAS DISCUSSED, CLAIMING THE PUBLIC HAD NO NEED TO KNOW.
"Effective April 11, 2016, the meeting was closed to public observation by Order of the Board of Governors 1 because the matters fall under exemption(s) 9(A)(i) of the Government in the Sunshine Act (5 U.S.C. Section 552b(c)), and it was determined that the public interest did not require opening the meeting.
2nd MEETING, SCHEDULED FOR APRIL 12, THIS, AGAIN FROM THE FED'S WEBSITE:
"Advanced Notice of a Meeting under Expedited Procedures
"It is anticipated that the closed meeting of the Board of Governors of the Federal Reserve System at 2:00 PM on Tuesday, April 12, 2016, will be held under expedited procedures, as set forth in section 26lb.7 of the Board’s Rules Regarding Public Observation of Meetings, at the Board’s offices at 20th Street and C Streets, N.W., Washington, D.C. The following items of official Board business are tentatively scheduled to be considered at that meeting.
Meeting Date: Tuesday, April 12, 2016
| Matter(s) Considered |
|---|
| 1. |
| Bank Supervisory Matter |
AND, GUESS WHAT WAS AVAILABLE TO THE PUBLIC FOLLOWING THAT BANK SUPERVISORY MEETING?
IT WAS A BIT ODD...
FIVE MAJOR U.S. BANKS WERE CALLED ON THE CARPET BY THE FED!
"The Federal Deposit Insurance Corporation and the Federal Reserve Board on Wednesday jointly announced determinations and provided firm-specific feedback on the 2015 resolution plans of eight systemically important, domestic banking institutions.
The agencies have jointly determined that each of the 2015 resolution plans of Bank of America, Bank of New York Mellon, JP Morgan Chase, State Street, and Wells Fargo was not credible or would not facilitate an orderly resolution under the U.S. Bankruptcy Code, the statutory standard established in the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The agencies have issued joint notices of deficiencies to these five firms detailing the deficiencies in their plans and the actions the firms must take to address them.
Each firm must remediate its deficiencies by October 1, 2016. If a firm has not done so, it may be subject to more stringent prudential requirements."
AS THE NEW YORK TIMES REPORTED AFTER THE UPDATE ON THE FED'S WEBSITE:
"In long letters sent to the banks this week, the two regulatory agencies
pointed to the dangers created by the global reach and complexity of the
largest banks, which are bigger now than they were before the 2008
crisis.
The
current arrangement could “pose serious adverse effects to the
financial stability of the United States,” the regulators said in their
letter to JPMorgan.THE FDIC IS VERY CONCERNED.
“The goal to end too big to fail and protect the American taxpayer by ending bailouts remains just that: only a goal,” Thomas M. Hoenig, the vice chairman of the F.D.I.C., said in a statement.
Only one of the biggest banks, Citigroup, was given a passing grade by both agencies, though it too was told that its plans needed improvements.
Goldman Sachs and Morgan Stanley received passing grades from only one of the two agencies.
If, after two years, the regulators still find the plans deficient, they may require the banks to sell assets and businesses, with the aim of making them less complex and simpler to unwind in a bankruptcy.
THEY GIVE THEM 2 YEARS!?
HOW LONG WOULD THEY GIVE ANY OTHER SMALL COMPANY OR INDIVIDUAL TO COMPLY?
HOW QUICKLY WOULD ANYONE BUT THE BIG BANKS BE PROSECUTED?
Also on Wednesday, JPMorgan announced a decline in both profit and revenue for the first quarter. Other large banks will report quarterly results this week
THE 3rd EXPEDITED, CLOSED MEETING ANNOUNCEMENT:
Advanced Notice of a Meeting under Expedited Procedures
It is anticipated that the closed meeting of the Board of Governors of the Federal Reserve System at 3:00 PM on Wednesday, April 13, 2016, will be held under expedited procedures, as set forth in section 26lb.7 of the Board's Rules Regarding Public Observation of Meetings, at the Board's offices at 20th Street and C Streets, N.W., Washington, D.C.
The following items of official Board business are tentatively scheduled to be considered at that meeting.
Meeting Date: Wednesday, April 13, 2016
| Matter(s) Considered |
|---|
| 1. | Periodic Briefing and Discussion on Financial Markets, Institutions, and Infrastructure. |
I FIND NO PUBLIC UPDATE ON THEIR WEBSITE.
I DIDN'T EXPECT TO.
ONE CAN FIND A HEAVILY REDACTED 19-PAGE LETTER TO JP MORGAN CHASE, READING THEM THE RIOT ACT, SO TO SPEAK, AS IF THAT WILL CHANGE CHASE'S DESIRE TO COMPLY.
THE BITS AND PIECES OF THAT WARNING LETTER CAN BE DOWNLOADED, AND DOWNLOADS INSTANTLY, I WARN YOU, IN PDF FORM <HERE>.
.
YELLEN GOES TO THE WHITE HOUSE FOR A RARE PRIVATE MEETING...
AFTER THAT VERY FIRST "EXPEDITED CLOSED MEETING", OBAMA AND BIDEN HAD A RARE MEETING WITH FED HEAD JANET YELLEN.
FROM AN ARTICLE IN SFGATE (SAN FRANCISCO), WE MIGHT THINK THIS WAS NOT THE RARE EVENT THAT IT WAS?
"According to the White House, President Obama is meeting with the Fed chair and Biden to discuss the nation’s “longer-term economic outlook,” even though Yellen just told the entire nation that the economy was strong and had arrived nearly back at “full health.”
The president says they will be “comparing notes.”
"The last such meeting was in November 2014.
[IMPORTANT TO NOTE: "The last time the Fed held such meetings as we saw this month was on November 21, 2015, less than a month before it launched its first rate hike in years."]
Yellen has also met with Obama on two occasions to discuss the progress being made in implementing the sweeping overhaul of banking regulations that Congress passed following the 2008 financial crisis.
Those meetings, which included other federal bank regulators, occurred on March 7 of this year and on Oct. 6, 2014."
PRIOR TO ALL THIS, IN MARCH THIS YEAR, THE ATLANTA-BASED FEDERAL RESERVE BANK HAD DOWNGRADED AMERICA'S GDP (GROSS DOMESTIC PRODUCT) TO BARELY, BARELY ABOVE WHAT IT WAS JUST PRIOR TO THE 2008 CRASH... 0.1%.
FROM REUTERS:
"Analysts say it has been the worst start to the year since the financial crisis in 2007-2008 and expect poor first-quarter results when reporting begins this week….
Analysts forecast a 20 percent decline on average in earnings from the six biggest U.S. banks, according to Thomson Reuters I/B/E/S data. Some banks, including Goldman Sachs Group Inc (GS.N), are expected to report the worst results in over ten years.
“The first quarter is going to be ugly and we don’t think that necessarily gets recovered in the back half of the year,” said Jerry Braakman, chief investment officer of First American Trust, which owns shares of Citigroup, JPMorgan, Wells Fargo and Goldman. “There are a lot of challenges ahead.”
HOWEVER, ACCORDING TO CNBC, IT'S A LOT MORE THAN "CHALLENGING"!
"U.S. industrial production fell more than expected in March as output declined broadly, the latest indication that economic growth braked sharply in the first quarter.
Industrial output decreased 0.6 percent last month after a downwardly revised 0.6 percent drop in February, the Federal Reserve said on Friday. Industrial production has declined in six of the last seven months."
BANK of AMERICA'S Michael Contopoulos warned last week, it may be the worst default cycle in history with “cumulative losses over the length of the entire cycle could be worse than we’ve ever seen before.”WHY ISN'T THIS IN BIG HEADLINES ACROSS THE USA?
Over the weekend, the FT got the memo with a report that … said that “the global bond default rate by companies is running at its highest since 2009 with the US accounting for the vast majority, according to rating agency Standard & Poor’s. A further four defaults this week, with three coming from the troubled oil and gas sector, pushed the overall tally to 40 with a little over a quarter of 2016 done.” (Zero Hedge)
AS ONE CAN SEE ON THE 'WORLD BANK'S' DATA SITE, MOST LARGER NATIONS NATIONS SAW A SIMILAR DROP STARTING BACK IN 2014
THE UK AND GERMANY SAW NO MAJOR DROP, BUT NO BIG GAINS, EITHER.
SEVERAL FINANCIAL ANALYSTS SAW THE FEDS 3 MEETINGS IN 3 DAYS AS AN "ACT OF DESPERATION".
FRB Board Meetings.
The Monday meeting was allegedly “a review and determination by the Board of Governors” of the advance and discount rates charged by the Fed.
This is somewhat an absurd waste of time as both of those bank funding mechanisms have become antiquated and rarely used.
The discount window collects dust until a specific bank’s credit profile has collapsed to an extent that prevents it from accessing the interbank-lending market. It’s seen as an act of desperation. It’s doubtful that the meeting was convened to discuss the discount rate.
I find the latter two topics in the context of the fact that it appears that the European banking system – to which the U.S. Too Big To Fail Banks are inextricably tied – appears to be melting down. "
RUMOR HAS IT THAT DEUTSCHE BANK IS HEADED DOWN THE TUBES, GOING BELLY-UP.
SEVERAL FINANCIAL ANALYSTS SAW THE FEDS 3 MEETINGS IN 3 DAYS AS AN "ACT OF DESPERATION".
FRB Board Meetings.
The Monday meeting was allegedly “a review and determination by the Board of Governors” of the advance and discount rates charged by the Fed.
This is somewhat an absurd waste of time as both of those bank funding mechanisms have become antiquated and rarely used.
The discount window collects dust until a specific bank’s credit profile has collapsed to an extent that prevents it from accessing the interbank-lending market. It’s seen as an act of desperation. It’s doubtful that the meeting was convened to discuss the discount rate.
I find the latter two topics in the context of the fact that it appears that the European banking system – to which the U.S. Too Big To Fail Banks are inextricably tied – appears to be melting down. "
RUMOR HAS IT THAT DEUTSCHE BANK IS HEADED DOWN THE TUBES, GOING BELLY-UP.
ABOVE, STOCK PRICES FOR DB, AS OF THIS MONTH:
GASP!
SURELY IT'S NOT TANKING!
THAT'S ONLY BEEN RUMORED FOR, WHAT, 3 OR 4 YEARS NOW, AS ONE BANK EXEC AFTER ANOTHER GOT BOOTED AND DB SUFFERED SO MANY CREDIT DEFAULT SWAPS THAT THEIR CREDIT RISK ROSE AND ROSE.
GASP!
SURELY IT'S NOT TANKING!
THAT'S ONLY BEEN RUMORED FOR, WHAT, 3 OR 4 YEARS NOW, AS ONE BANK EXEC AFTER ANOTHER GOT BOOTED AND DB SUFFERED SO MANY CREDIT DEFAULT SWAPS THAT THEIR CREDIT RISK ROSE AND ROSE.
"This is 20% lower than the previous low it hit at the apex of the great financial crisis (de facto collapse) in 2008/2009.Management issued a statement defending the bank’s liquidity position.
Suffice it to say that historically, when a bank has been forced to issue a statement defending its solvency, insolvency is not far behind.
We saw this with Bear Stearns and Lehman."
"Currently DB has roughly $2 trillion assets supported by $68 billion of book value. The problem is that many of its assets are highly overstated in value and have yet to be written down.
The financial world shuddered at the $7 billion of admitted write-offs DB took in 2015. The problem is that over 85% of the charges taken by DB were attributed to legal costs.
We know its “on-balance-sheet” assets are being reported at a significantly overvalued stated level.
DB has big loans to the energy sector, Glencore, Volkswagon/Audi and other sundry highly risky businesses.
It would only take a 3.5% write-down of its asset base to wipe out its book value.
THEN there’s the derivatives.
DB has $58 trillion of notional amount in OTC derivatives hidden off its balance sheet.
The bank will claim most of that is hedged out and the “netted” amount is a sliver of the notional amount. But ask AIG and Goldman Sachs how hedging / netting works out in the long run.
“Netting” is only relevant when counterparties are prevented by Central Banks from defaulting.
Once the defaults start, “net” becomes “notional” in a hurry."
ACCORDING TO REUTERS , U.S. industrial output falls, signals weak first-quarter GDP.
WEAK?
HOW ABOUT "ON LIFE SUPPORT AND STILL FAILING FAST"?
FROM CNBC:
"Last month, manufacturing output fell 0.3 percent, with the production of long-lasting goods declining 0.4 percent.
Manufacturing was weighed down by motor vehicle and parts production, which plunged 1.6 percent after rising 0.8 percent.
Manufacturing output fell 0.1 percent in February.
Mining production tumbled 2.9 percent as oil and gas well drilling plummeted 8.5 percent after diving 15.8 percent in February.
Last month's drop in mining output was the largest since September 2008.
Mining production has declined in each of the last seven months."
IN OTHER NEWS, APRIL 20, 2016, THE U.S. DOLLAR FELL AGAINST THE EURO, HOUSING STARTS ALSO FELL...
"British pound surged sharply against US dollar on Tuesday.BUT...
The pound is down around 6 percent since the start of the year on a trade-weighted basis, with most banks saying it would fall sharply in the event of a Brexit.
US housing data adds to signs of weak Q1 GDP growth; housing starts fall 8.8% in Mar, building permits -7.7% to 1-yr low.
GOLD ROSE ....TOLD YOU IT WOULD.
"Gold rose as much as 2 percent, silver hit a 10-month high and platinum climbed to its highest in six months on Tuesday, as the dollar weakened after U.S. data came in below forecasts.
Gold touched a one-week high of $1,256.80 an ounce and was up 1.8 percent at $1,252.77 by 2:50 p.m. EDT (1850 GMT), while platinum rose 4.1 percent to its highest since Oct. 23 at $1,015.70."
WITH AMERICA'S FEDERAL RESERVE STILL SCRAMBLING TO GIVE BACK THE GOLD ALL NATIONS WHO HAVE DEMANDED THEIRS WANTS DELIVERED...DEMANDED THE FED DELIVER...YEARS AGO!
MAYBE MORE DISCONCERTING, THE FOLLOWING FACTS FROM APRIL:
- A G-20 meeting of finance ministers and central-bank heads starts in Washington, DC, on Tuesday, too, and continues through Wednesday.
- Then on Thursday the World Bank and the International Monetary Fund meet in Washington.
- The Federal Reserve Bank of Atlanta just revised US GDP growth for the first quarter to the precipice of recession at 0.1%.
- US banks are widely expected this week to report their worst quarter financially since the start of the Great Recession.
- The European Union’s new “bail-in” procedures for failing banks were employed for the first time with Austrian bank Heta Asset Resolution AG.
- Italy’s minister of finance called an emergency meeting of Italian bankers to engage “last resort” measures for dealing with 360-billion euros of bad loans in banks that have only 50 billion in capital.
ARE ALL OF THE ABOVE MERE COINCIDENCES, OR IS PANIC SETTING IN?
IT'S NOT PRETTY OUT THERE, PEOPLE.
Goldman, Morgan Stanley and IBM release numbers that look, well, depression-like.
Job growth slowed in January, was still slowing in March, while housing starts plunged, but gold,platinum and silver spiked, China’s bond market seized up,
Saudi Arabia is threatening to dump about $750 billion in U.S. notes, and poor old Deutsche Bank prepares to name names in its gold manipulation scandal.
ABOVE, ONE LAST GRAPH...COMPARING DEUTSCHE BANK NOW TO LEHMAN'S IN 2008.
THE AUTHOR OF THE ARTICLE ATTACHED TO THAT GRAPH STATED:
"I’m suggesting here that the Fed is behind the Citi, Goldman and JP Morgan CDS transactions with Deutsche Bank as means of preventing DB’s collapse.
After all, the TBTF fail banks in the U.S. are catastrophically tied to Deutsche Bank – and the entire European financial system – via derivatives.
It’s my view that the Fed has been conducting an ongoing de facto bailout of Deutsche Bank since mid-summer, using the balance sheets of Citi, Goldman and JP Morgan as its proxies. In the context of the behavior of DB’s stock recently, and in the contex of what is now blatant market intervention in the stock market by the Fed, and in the context of the news of the bank bail-in Austria plus the collapsing Italian banks,
I would suggest that “expedited rule, closed door” meetings held by the Fed this were convened in order to discuss the a western financial system which is obviously beginning collapse again."
POINT TAKEN, RIGHT?
Andrew Levin, former aide to Federal Reserve chair said:
"Sweeping reforms for accountability are needed for Federal Reserve"
http://www.bloomberg.com/politics/articles/2016-04-11/former-yellen-adviser-proposes-sweeping-reform-of-fed-system
“There is one key principle in this document which is the Fed needs to become a public institution,” Levin said.
GIVEN ALL OF THE ABOVE FROM SO MANY SOURCES, WHAT MORE DO WE NEED TO KNOW TO SEE WHERE ALL THIS IS HEADING?
I CAN'T THINK OF ANYTHING...
GIRD YOUR LOINS, WORKING AMERICA, YOU'RE ABOUT TO BAIL-OUT BANKS AGAIN...AND SEE WHAT THE GREAT DEPRESSION FELT LIKE, I'M AFRAID.
DO ALL YOU CAN NOW TO PREPARE.
_______________________________
POSTSCRIPT:
ODDITY?
The Banking Organization Systemic Risk Report (FR Y-15) snapshots
THE FR Y-15 SNAPSHOTS COME FROM DECEMBER ASSESSMENTS OF DATA, BUT ARE SELDOM POSTED BEFORE AUGUST OF THE FOLLOWING YEAR...WHY?
WHY DOES IT TAKE THE FED 8 LONG MONTHS TO POST THE DATA THEY HAVE ON HAND IN DECEMBER OF THE PREVIOUS YEAR?
DOES IT TAKE THAT LONG TO, UMMM, "COOK THE BOOKS"?
JUST A CURIOUS OBSERVATION AND QUESTION...INCONSEQUENTIAL, ALMOST, GIVEN THE NEWS ABOVE.
FDIC LETTER:
(CHANNELING OLD BILL CLINTON:
"IT'S ALL ABOUT ECONOMIC INSTABILITY, STUPID BANKS!")
Forget Peter Schiff and the unprecedented banker meetings, The Federal Deposit Insurance Corporation is telling all who can read the English language that an economic collapse is upon us and quite clearly, the banks know it, the people know it and now now all of you should take notice.
The following communique should serve as your red alert.
The Federal Reserve is out of ideas, no more band-aids can keep the banks and the American economy afloat, and your money is still in these banks?
Page 11 of the Federal Deposit Insurance Corporation’s (FDIC) letter to JP Morgan, has revealed a 19 page letter sent to JP Morgan/CHASE Bank the Federal regulators reveal that they have “identified a deficiency” in JPMorgan’s wind-down plan which if not properly addressed could “pose serious adverse effects to the financial stability of the United States.”
Straight from the government’s mouth.
SAME GOES FOR ALL 8 BANKS THE FEDS JUST CALLED OUT.