Friday, April 15, 2016

The Economy: "FDIC Sends 19 Page letter to JP Morgan/CHASE about the Bank Being Unstable"

"FDIC Sends 19 Page letter to JP Morgan/CHASE
 about the Bank Being Unstable"
by U.S.Reporter  

"Depositors at JP Morgan/CHASE Bank should read between the lines - and fast! The Federal Deposit Insurance Corp (FDIC) has revealed a 19 Page letter sent to JP Morgan/CHASE Bank, outlining why the bank is unstable and does not meet the requirements of law. This usually PRIVATE information is a heads-up to depositors. 

The letter explains why JP Morgan/CHASE does not meet the 2008 Dodd-Frank Law which requires banks, whose failure would have a "systemic effect" (i.e. "too big to fail") to have a sort of "Living Will"  which is an orderly plan for resolving themselves if they go Bankrupt. Both the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) have found that the plan submitted by JP Morgan/CHASE does not meet the requirements of law.

Eight years after the Dodd-Frank Law was enacted, after the 2008 financial crisis, JP Morgan suddenly is no longer meeting the rules. Why? Are they heading toward FAILURE and need to fudge the numbers to try to get-by? Generally, the Federal Reserve keeps such matters very quiet. Yet they are suddenly releasing this blockbuster information?!

At the top of page 11, 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.” Why didn’t JPMorgan’s Board of Directors or its legions of lawyers catch this?

It’s important to parse the phrasing of that sentence. The Federal regulators didn’t say JPMorgan could pose a threat to its shareholders or Wall Street or the markets. It said the potential threat was to “the financial stability of the United States.” If you are a Depositor or Investor in JP Morgan CHASE, we suggest you read between the lines, folks.  You are being warned."

"Download the redacted version of the Federal Reserve Letter HERE.”

Hmm... could this be why?

"Who is Morgan Stanley and Why Its $31 Trillion in Derivatives Should Concern You"
By Pam Martens and Russ Martens

"According to a report from one of the regulators of national banks, the Office of the Comptroller of the Currency, as of September 30, 2015, insured U.S. commercial banks and savings associations had exposure to $192.2 trillion notional (face amount) of derivatives.  (Yes, that’s trillion with a “t”.) The report goes on to terrify with the revelation that only four banks hold 90.8 percent of all derivatives: Citigroup, JPMorgan Chase, Goldman Sachs and Bank of America.

But that’s far from an accurate picture. Buried deep in the report is Table 2, which broadens the landscape beyond just the commercial banking units of the mega Wall Street firms to what is lurking in the holding companies. In Table 2 we learn that Morgan Stanley ranks right up there with the other big boys on Wall Street, holding $31 trillion notional in derivatives. (See chart below.)

Adding in Morgan Stanley’s derivatives, the total rises to $247 trillion in notional derivatives with just these five banks holding 93 percent of the total. Equally noteworthy, the table shows that within Morgan Stanley’s $31 trillion in derivatives there are $1.6 trillion in notional credit derivatives – those pesky instruments that took down the big insurer AIG in 2008 and almost took down Morgan Stanley.” (These are just the American banks. Best estimates of world-wide total derivatives: $1.5 QUADRILLION - CP)
The rest of this critically important article is here:
Remember, the Chinese will announce on April 19 the new gold-backed yuan... what do you suppose that might do to the dollar? And what's all this about "bail-ins"? This Greg Hunter interview of Rob Kirby will explain a great deal. Worth your time watching it.

Deputy Wendell: “It's a mess, ain't it, Sheriff?”
Sheriff Bell: “If it ain't, it'll do till the mess gets here.”
- “No Country For Old Men”

Folks, the mess is here... Kirby says "two, three weeks." I personally believe him...
you believe whatever you want or need to.

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