carygold
enthusiast
Posts: 4975
Reg: 05-30-08
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05-07-12 04:08 PM - Post#149099
On March 24, 1989, the vessel Exxon Valdez ran aground on the Bligh Reef resulting in the second largest oil spill in United States history. Exxon Needed money.
1990 BISTRO is the name of the scheme created by the whiz kids of JP Morgan in the to circumvent the capital/asset ratio required in Banks, by law. This group was lead by Blythe Masters, the creator of Default Swaps.
This allowed banks to sell loans off of their books, using a risk guarantee, “default swap,” giving loans a “AAA” rating, and freeing up capital requirements to be used on more loans.
*** The problem is there is no regulation that the default swaps should be backed with cash, so it’s basically a hollow insurance policy with risk that is not reported on any balance sheet.
1994 JP Morgan extends a $5 Billion dollar line of credit to Exxon.
The first Default Swap.
1995 The first major deal was between JP Morgan and the European Bank for Reconstruction and Development covering a $4.8 billion credit line given to Exxon by the bank.
This began JP Morgan, making up packages of loans based in small pieces of loans given to various companies on the S&P 500 and selling off that debt with a CDS, credit default swap to get a "AAA" rating.
Soon other banks followed suit, making 10 times more than they could just giving loans alone using Default Swaps and selling loans all over the world. But not one dime of risk was being covered… it was all a scam by the biggest banks in America.
1998 Brooksley E. Born, chairperson of the Commodity Futures Trading Commission (CFTC) warned the Senate, if Derivatives are not regulated they will crash the banking system.
*** At the same meeting Alan Greenspan said regulation was unnecessary.
1999 Senator Byron Dorgan warned that this practice of default swaps would collapse the banking system.
1999 Senator Phil Graham introduced a bill to remove the Glass-Steagall act, opening up the Home Mortgage market and credit card market to Default Swaps, later signed into law by Bill Clinton.
When Mortgage Companies ran out of good clients they gave loans to anyone, because with a default swap all loans were “AAA.”
This was just the tip of the iceberg, this unregulated Derivatives market is what is killing banks across the globe. It is still unregulated and still legal to do what killed the economy in 2008.
If you notice there is no mention of government regulation for the housing market, or Freddie Mae or Freddie Mac, this is all a Wall Street big bank scam.
I recommend watching Money, Power, and Wall Street
Or reading Global Derivative Casino
If CEO's increased their pay at the same rate as Average Americans
their pay would average $1,384,890 not $10,621,000 |
Edited by carygold on 05-07-12 04:18 PM. Reason for edit: No reason given.
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bugs
enthusiast
Posts: 160
Reg: 05-09-12
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05-09-12 10:53 AM - Post#149172
In response to carygold
For you folks keeping score at home...Obama is the NUMBER 1 benefactor of Wall Street today.
Number 1.
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Jimi Ray Clapton
enthusiast
Posts: 1980
Reg: 09-03-07
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05-10-12 11:35 AM - Post#149251
In response to carygold
I highly recommend it.
| I reserve the right to change who I am, my opinions, my views and my actions based on new and more accurate information that I receive. |
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