Bogus Accounting, JPMorgan Chase & Citi blamed in Lehman Report

Posted on March 12, 2010 by stacyherbert| 26 Comments

Stacy Summary:  What!?  Goldman Sachs wasn’t involved!?

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26 Responses to Bogus Accounting, JPMorgan Chase & Citi blamed in Lehman Report

  2. Danny | March 12, 2010 at 9:00 am |

    Anton Valukas obviously works for Goldman Sachs.

  3. Bill Stewart | March 12, 2010 at 9:19 am |

    One reason why no finance sector people will ever go to jail in the US is this :

    Daylight saving time

    When it is impossible to know what time it is, how is it possible to do anything else?
    It isn’t.

    ==================
    Time change: springing forward, falling back

    Daylight time was first enacted in Germany in 1915, then quickly adopted by Britain and much of Europe and Canada.

    Spring forward

    Daylight saving time for 2010 begins at 2 a.m. on Sunday, March 14. Be sure to set your clocks ahead one hour.

    Because the sun shone for a time while most people were asleep, it was reasoned that light could be better used during the day. The solution was to push the clocks ahead one hour in springtime, forcing people to wake an hour earlier. They would therefore expend less energy trying to light their homes, for instance, if time were adjusted to suit their daily patterns.

    When the days started getting shorter in the fall and people awoke to increasing darkness, the clocks were turned back an hour to get more light in the morning.

    History

    Although first instituted in 1915, the idea of daylight time had been batted around for a more than a century. Benjamin Franklin suggested the idea more than once in the 1770s while he was an emissary to France. But it wasn’t until more than a century later that the idea of daylight time was taken seriously.

    William Willett, an English builder, revived the idea in 1907, and eight years later Germany was the first nation to adopt daylight time. The reason: energy conservation. Britain quickly followed suit and instituted British Summer Time in 1916.

    Several areas, including parts of Europe, Canada and the United States, followed suit during the First World War. In most cases, daylight time ended with the armistice.

    During the Second World War, a different form of daylight time was reinstated by Britain and clocks were set two hours ahead of Greenwich Mean Time during the summer. It was known as Double Summer Time. The time shift didn’t end with the summer, as clocks were rolled back to be one hour ahead of GMT through the winter.

    The Uniform Time Act, enacted by the U.S. Congress in 1966, established a system of uniform (within each time zone) daylight time throughout most of the U.S. and its possessions, exempting only those states in which the legislatures voted to keep the entire state on standard time.

    Schedule changed to save energy

    In Canada, it’s up to each province to decide whether to use daylight time, and not all do. As of 2007, with a few exceptions, most jurisdictions in Canada and the U.S. have been moving their clocks ahead by one hour on the second Sunday in March and back by one hour on the first Sunday in November.

    Legislation in the United States moved the start of daylight time three weeks earlier in the spring and the return to standard time a week later in the fall. The change was aimed at trying to help save energy, since people aren’t expected to need their lights on as early in the evening. But there is still some debate about whether the change reduces energy consumption.

    A 2006 report from the U.S. Department of Energy anticipated electricity savings of four-tenths of a per cent per day of extended daylight time, totalling 0.03 per cent of annual electricity consumption.

    As to the environmental impact, the non-profit group American Council for an Energy-Efficient Economy estimated the prolonged period of daylight time would cut carbon emissions by 10.8 million tonnes.

    Exceptions

    Canada followed suit, saying it was essential to co-ordinate with the U.S. and that not doing so would create too many headaches for trade and travel. “We’re not anxious to have a disconnect between us and our chief trading partner,” Ontario Premier Dalton McGuinty said.

    Most of Saskatchewan has not observed daylight time since 1966 and stays on Central Standard Time all year round. Some border towns follow the time schemes of their neighbours in Manitoba or Alberta.

    In Canada, areas of Quebec east of 63 degrees west longitude do not change to daylight time and remain on Atlantic Standard Time year round. Pockets of Ontario and British Columbia do not use daylight time.

    Daylight time is observed in most of the United States. Just two states — Arizona and Hawaii — and three territories — American Samoa, Puerto Rico and the U.S. Virgin Islands — do not participate.

    Some parts of Australia have adopted daylight time. Of course, it’s done a little differently than in the Northern Hemisphere, where seasons are opposite. So, when daylight time starts in Canada, it comes to an end in Australia and vice versa.

    When Canadians are waxing their skis in December, Australians are waxing their surfboards because it’s summer there.

    Health benefits, pitfalls

    The end of daylight time may signal that Canada’s long, cold winter is just around the corner. But the omens aren’t all bad. You do pick up that extra hour of sleep that you lost when the clocks moved ahead in March.

    Swedish researchers say there may be some health benefits to turning your clock back. They studied 20 years of records and found that the number of heart attacks dipped on the Monday after clocks moved back an hour.

    Moving clocks ahead in the spring had the opposite effect. There were more heart attacks in the week after springing forward — especially during the first three days of the week.

    In 2007, Dr. Till Roenneberg of Ludwig-Maximilians University in Munich, Germany, tracked the sleeping patterns of Europeans to explore the effects of moving from daylight time to standard time. The study found that while both late and early risers adjusted to the time switch in the fall, night owls had a particularly difficult time adjusting to the time shift in the spring. Researchers said the night owls are likely to feel sleep-deprived for weeks.

    For pedestrians, though, the story’s a little different. A study by U.S. researchers found there were more pedestrian deaths during the evening rush hour in November than October as drivers and pedestrians adjusted to the earlier darkness. They said the risk for pedestrians drops in the spring when clocks are set back and daylight comes earlier.

    Read more:
    http://www.cbc.ca/consumer/story/2008/10/31/f-timechange.html

    ==================

  4. Mike2liverpool | March 12, 2010 at 9:24 am |

    No thing of beauty
    :(
    Mike

  5. maxkeiser | March 12, 2010 at 9:41 am |

    Dear Max,

    We’re US expats living in Chiangmai, Thailand. We’re fortunate to have found your program which we get via satellite. It’s refreshing to hear the truth on TV for a change.

    Keep up the good work!

    Your faithful followers,
    James & Joyce

  6. maxkeiser | March 12, 2010 at 9:42 am |

    Max,

    I truly enjoy your show. And Stacy is a great foil and provides excellent analysis. Do you write her material?

    Steve

  8. TJ | March 12, 2010 at 9:54 am |

    @ Bill Stewart

    Ever think about starting your own blog? On a different website?

  9. Ptah | March 12, 2010 at 9:55 am |

    I Just finished reading the Sorokin book: To Big To Fail,

    Its worth its weight in dollars – which isn’t saying much!

    http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7059469.ece

    Actually as I was reading it I kept thinking, this is just apologist bull. Yet I kept reading – hoping for some sort of epiphany within the text. Fat chance.

  11. stacyherbert | March 12, 2010 at 9:59 am |

    @Ptah – I figured so after watching an interview with him on Democracy Now; he kept apologizing for Geithner and Paulson, that somehow they were merely innocently ignorant of all that they were doing was criminal; they were just trying their best and it was chaos and panic so mistakes were innocently made Sorkin seemed to say

  13. EB | March 12, 2010 at 10:02 am |

    Gold’s goin’ down, my friends.

    Something’s afoot…

  14. Mother Earth | March 12, 2010 at 10:05 am |

    @Phil

    In honour of our jibber jabber god Blahblah:

    The toilet plant http://news.bbc.co.uk/earth/hi/earth_news/newsid_8552000/8552157.stm

  15. Mother Earth | March 12, 2010 at 10:06 am |

    @EB

    Are you hanging from the ceiling?

  16. EB | March 12, 2010 at 10:10 am |

    Just thought I’d wake everybody up this am…

    No but really there is a volatility thing going on, and I think the indicators are that there’s a shift coming in gold…that’s just personal opinion, not trading advice…

  17. Phil /Germany | March 12, 2010 at 10:12 am |

    G. Edward Griffin: CIA Takeover of The Mafia and its Ties to Harvard on The Alex Jones Show

    http://www.youtube.com/watch?v=dim_COoY44c

    Good listen … I concur with Griffin.

  18. Bliaboo | March 12, 2010 at 10:16 am |

    So these banksters electronically robbed $600 billion to cover their “accountancy gimmick” -?

    Is this what Pennsylvania Democrat US Congressman Paul Kanjorski was talking about -$550 billion- disappearing between 11 am and 1 pm on 15 September, 2008 from money market accounts.

    http://www.liveleak.com/view?i=ca2_1234032281

    “On Thursday Sept 15, 2008 at roughly 11 AM The Federal Reserve noticed a tremendous draw down of money market accounts in the USA to the tune of $550 Billion dollars in a matter of an hour or two. … It was an electronic run on the banks. The treasury intervened but had they not closed down the accounts they estimated that … $5.5 Trillion would have been withdrawn and collapsed and within 24 hours the world economy.”

    http://www.marketwatch.com/story/fund-flows-firm-suggests-government-bought-stocks-2010-01-05

    From The Times March 12, 2010, Alexandra Frean, US Business Correspondent
    “When Lehman filed for bankruptcy on September 15, 2008, with about $600 billion in debt, its collapse contributed to the freezing of credit markets worldwide and to the depth of the global recession.”

    http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7059272.ece

    The perps will walk free. The September 15, 08 “electronic bank run” turned the POTUS campaign away from McCain and back over to Obama (who had dropped like a rock in preceding weeks.

  19. Bill Stewart | March 12, 2010 at 12:01 pm |

    =======
    @ Bill Stewart
    Ever think about starting your own blog?
    On a different website?
    =======

    My American resident Canadian friend has one (or more than one), chuck full of finance stuff…

    http://cbc.am/groups.txt

  20. frances snoot | March 12, 2010 at 12:56 pm |

    http://www.bloomberg.com/apps/news?pid=20601087&sid=asGanuHWSRUg
    Last Updated: September 15, 2009

    “Sept. 16 (Bloomberg) — Lehman Brothers Holdings Inc. said Barclays Plc got a $5 billion discount when it bought the North American brokerage business and some real estate days after Lehman’s bankruptcy filing a year ago, and wants assets back.
    “Material components of the transaction were not disclosed to the court before and at the sale hearing,” lawyers for Lehman said in a filing yesterday in U.S. Bankruptcy Court in Manhattan. “The fact is that the deal was actually structured to give Barclays an immediate and enormous windfall profit. Certain Lehman executives agreed to give Barclays an undisclosed $5 billion discount off the book value of securities.”
    Lehman said Barclays’ windfall may have been more than $8.2 billion when margin deposits and liabilities Barclays assumed are taken into consideration. Lehman filed the largest bankruptcy in U.S. history on Sept. 15 with assets of $639 billion.”

  21. frances snoot | March 12, 2010 at 1:39 pm |

    http://www.timesonline.co.uk/tol/news/politics/article1467020.ece

    From The Sunday Times
    March 4, 2007
    Revealed: Blair’s billionaire buddies

    “Lady Lynn Forester de Rothschild, regarded as one of London’s most influential political hostesses, has arranged the select gathering. At least seven billionaires with a combined worth of more than £25 billion are on the guest list.
    Richard Fuld Worth $1bn Chief executive of Lehman Brothers, the global investment bank. Nicknamed “the gorilla” for his aggressive style as a young trader, he is said to have mellowed in older age. He is one of the biggest-spending art collectors in the world.”

    http://en.wikipedia.org/wiki/Evelyn_Robert_de_Rothschild

    “Barclays’ second lucky loss emerged during the frenzied weekend in mid-September 2008, when its very tentative deal to acquire Lehman Brothers Holdings Inc.’s U.S. investment bank collapsed, as some recent accounts have it, just hours before Lehman filed for bankruptcy. (A final blow may have been the refusal of the U.K.’s Financial Services Authority to allow the transaction.)

    As a result, Barclays was able to later pick off Lehman’s most valuable North American assets for a mere £1 billion ($1.6 billion).”

    http://www.thedeal.com/newsweekly/insights/postmortem/lucky-losses.php

    http://www.statemaster.com/encyclopedia/Marcus-Agius

    Rothschild Barclays PLC bank, London

  24. Danny | March 12, 2010 at 1:49 pm |

    Commercial property may cause new crisis, says FSA (phase two about to gather speed)
    http://www.independent.co.uk/news/business/news/commercial-property-may-cause-new-crisis-says-fsa-1919557.html

    Virginia Hands Out 6996 Traffic Tickets In One Weekend In An Effort To Raise Revenue For The State Government (further evidence of nickle and diming y’all)
    http://www.businessinsider.com/virginia-hands-out-6996-traffic-tickets-in-one-weekend-in-an-effort-to-raise-revenue-for-the-state-government-2010-3

    Economic Stimulus Was a Waste of Time: Analyst (no shit)
    http://www.cnbc.com/id/35775412

    PIMCO’s El-Erian: You Fools Don’t Realize That The Sovereign Debt Crisis Goes WAY Beyond Greece (hello Ireland!)
    http://www.businessinsider.com/pimcos-el-erian-you-foold-dont-realize-that-the-sovereign-debt-crisis-goes-way-beyond-greece-2010-3

    China Idles 40% of Windpower Turbine Output Capacity
    http://www.businessweek.com/news/2010-03-11/china-idles-40-of-windpower-turbine-output-capacity-update1-.html
    *******
    I remember months ago trying explain peek-a-boo accounting to a nice taxi man at 3 in the morning some months back. He was yapping on about the banks. F this and F that. Needless to say i was ‘tired and emotional’ at the time. Hope that nice man understood what I was on about.

  25. Sony Panasonic | March 12, 2010 at 10:15 pm |

    GOLD=MERCURY=GENOCIDE

  26. bammbamm | March 13, 2010 at 1:53 am |

    Check out the quick lesson on Repo 105 by Paddy Hirsch at Marketplace Videos:

    http://www.youtube.com/watch?v=Tr8qPmyW5Yw&feature=sub