On a quick personal note. I was away on vacation for the past 11 days, decompressing and relaxing out in Malibu with a good friend who convinced me to bag a trip to Europe and just lay idle on the beach. I expected to be connected to the world, punching away on my iPad and cell phone, continuing my daily routine of talking to people, sifting through news and information and trading my PA. Instead I found myself almost instantaneously de-clawed from my natural weapon, instant access to knowledge and information. Instead of trying to fix the problem, I gave into it and just decided to go with it. I spent virtually every day staring and listening to the ocean(see pic below) while reviewing my young adult life and mapping out my future. I got my mind right and feel refreshed. The last 30 days have been the most defining of my life. Attempting to explain on paper would be pointless and saved for a personal conversation in person should anyone care. All that being said, I’m excited to be back in the real world; thinking, writing and planning for the next act. Because ladies in gentleman, we are entering end game. And everything we are used to and accustomed to will be changing dramatically very shortly.
Before I get started today, I would like to make something very clear. After spending my entire post graduate life working on Wall Street I have come to know some truly wonderful, smart and honest people. I have also come to know some deceitful, scummy and greedy motherfckers as well as some who are so blindfully warped from years of being served the kool-aid by their firms while just trying to do their job and get paid has left them in the most unlikely of positions; VICTIMS too. My colleagues that I have grown to know and love are not the problem, just like government workers who clock in and out every day are no more responsible for actions of the federal government. It’s the system that is corrupt, disgusting and rid with cancer that benefits the very few at the expense of ALL. We are entering end game. I’ve been watching this slow moving train since early 2007 and like the movie, Unstoppable about the runaway freight train that has left the yard, we have defaulted from a slow moving, perhaps fixable problem to one that is full throttle and speeding out of control. If you aren’t watching the European Crisis you should be. UBS just published a report titled“Euro Break-up- the Consequences”. I highly recommend you read this piece as its mere publication reflects the fact that the eventuality of this outcome is far more likely than anyone is considering. If you aren’t watching what is happening to our banking system you should be too. After trillions in fraudulent activity, trillions in bailouts, trillions in printed money, billions in political bribing and billions in bonuses, the criminal cartel members on Wall Street are beginning to get what they deserve. Between the massive litigation being unleashed against the banks, the exposing of the SEC(who is supposed to be protecting the little people from the corrupt) by Matt Taibbi of Rolling Stone on unlawful destruction of records detailing more than 9,000 information investigations, it is clear that there is no longer a practical solution that makes sense as every action needs to be upped by the N+100 power as the half life of said can kicking exercise dwindles to what is becoming only a reactionary and knee jerking reprieve.
FHA Files a $196 Billion Lawsuit Against 17 Banks
The Federal Housing Finance Agency (FHFA), as conservator for Fannie Mae and Freddie Mac (the Enterprises), today filed lawsuits against 17 financial institutions, certain of their officers and various unaffiliated lead underwriters. The suits allege violations of federal securities laws and common law in the sale of residential private-label mortgage-backed securities (PLS) to the Enterprises.
Complaints have been filed against the following lead defendants, in alphabetical order:
1. Ally Financial Inc. f/k/a GMAC, LLC – $6 billion
2. Bank of America Corporation – $6 billion
3. Barclays Bank PLC – $4.9 billion
4. Citigroup, Inc. – $3.5 billion
5. Countrywide Financial Corporation -$26.6 billion
6. Credit Suisse Holdings (USA), Inc. – $14.1 billion
7. Deutsche Bank AG – $14.2 billion
8. First Horizon National Corporation – $883 million
9. General Electric Company – $549 million
10. Goldman Sachs & Co. – $11.1 billion
11. HSBC North America Holdings, Inc. – $6.2 billion
12. JPMorgan Chase & Co. – $33 billion
13. Merrill Lynch & Co. / First Franklin Financial Corp. – $24.8 billion
14. Morgan Stanley – $10.6 billion
15. Nomura Holding America Inc. – $2 billion
16. The Royal Bank of Scotland Group PLC – $30.4 billion
17. Société Générale – $1.3 billion
These complaints were filed in federal or state court in New York or the federal court in Connecticut. The complaints seek damages and civil penalties under the Securities Act of 1933, similar in content to the complaint FHFA filed against UBS Americas, Inc. on July 27, 2011. In addition, each complaint seeks compensatory damages for negligent misrepresentation. Certain complaints also allege state securities law violations or common law fraud. [read full FHFA release