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IMFIn this week’s SD Weekly Metals & Markets The Doc & Eric Dubin discuss:

  • Thou shall NOT see gold as safe haven;  whenever there’s a crisis, TPTB attack precious metals;
  • Connecting the dots between GOFO going back into the negative, gold premiums rising in Asian markets, the debt limit “crisis” and visible paper raids in gold and silver;
  • IMF gov’t bail-in proposal:  Fix sovereign dept problems with a “one time” 10% wealth tax
  • Importance of physical assets as a hedge against escalating global financial crisis, coming capital controls


 

Baseball is a wonderful sport, but it’s no longer the American national past-time.  That rarified title now belongs to can kicking, a sport characterized by avoidance of object reality, where the rules of the game include employing any and all so-called solutions to buy time.  Double points are awarded when long-term problems compound for every kick of the can.  Come on, President Obama.  Make it official.  It’s time for another Executive Order:  the Can Kicking Redemption Act of 2013.

 

To the surprise of virtually no one, the debt ceiling was raised this week.  But it’s only a temporary reprieve.  In early 2014 this Kabuki theatre will return.  Ironically enough, it’s probably safe to assume the Obama Administration and the leaders of the Democratic Party welcome a reasonably quick return to the theatrics given the perception that the Republicans — and especially the tea party — has taken the brunt of the public’s scorn.  Trouble is, a strong argument can be made that despite a short-term tactical victory, the Obama camp is going to have a serious problem on their hands once Americans come to understand how they have been lied into supporting Obamacare.  We’ve discussed these lies on TND, and in particular, in our interview with Dr. Dave Janda.

 

It should come as no surprise that once the debt ceiling “crisis” passed, gold and silver turned in a meaningful rally.  Never mind the fact that over the last month there have been small precious metals rallies explained as hedging against the risk of financial market turmoil, only to have the exact same explanation applied to declines in precious metals over subsequent days.  As Bill Murphy is fond of saying, “Price action makes market commentary.”

 

Last week we reported on the 2 million ounce gold flash crash.  Cartel footprints have become so apparent since the naked shorting drive-by shooting over the April 12 through April 15 period that even mainstream media is forced to report the facts from time to time.  Today, Frank Tang published a noteworthy article in Reuters highlighting unusual trading.  Tang notes:

On October 1 and October 11, volume in just ten minutes exceeded 20,000 lots, accounting for almost a tenth of the market’s average daily turnover this year, Reuters data showed.  Two of those incidents triggered the CME Group’s rarely-used “stop logic” function that automatically halts trade briefly to prevent excessive price movements.

 

 

Amusingly enough, Thursday’s upside action is being seized upon by cartel apologists like Denis Gartman.  Mr. Gartman framed the situation for his subscribers with this ditty:

 

2oz Freedom Girl new proofFinally, we wonder why it is that no one has argued that gold has suddenly been “manipulated” upward in light of the violent rally yesterday. Is gold only “manipulated” when it falters? Is it rising of its own fundamental volition instead of manipulative machinations? We’re just askin’. It seems like a reasonable question to ask.

 

For over a decade the vast majority of these unusual trading spikes have been downside spikes.  Mr. Gartman is blind to data, at best, or following some sort of agenda.

 

Mr. Tang’s reported other insightful, amusing comments:

“What’s unusual about these moves is the price stays at a new level so that suggests it’s a natural buyer or seller,” (noted) Chris Concannon, executive VP of New York-based electronic trader Virtu Financial.  “This is moving to and setting a new price level, so it can only be done by someone who’s buying or selling substantial amounts and then holding.”

“Natural” buyer or seller?  Please.  Spoken exactly as one would expect from a trader that deals in a world were ten minutes is considered long-term trading.  “Swing Traders” and old school “short-term” speculators are better equipped to understand that a bullion bank managing a short-side biased “book” over the course of any given COMEX delivery month will occasionally need to jump to cover short positions.  That cycle takes place over the course of a few weeks, apparently well beyond the vision of these captains of the flash trading industry, like Mr. Concannon.  Thursday’s upward spike was largely short covering by bullion banks and speculators – especially hedge funds.

In order to understand the context of that move, we have to connect dots visible with other dynamics.  Let’s begin with GOFO.

The following chart displays the London PM Fix gold price divided by 1000 in pink.  The division by 1000 is executed simply to create a representation of gold that can easily be compared visually to the swings in GOFO shown in blue.  Notice that on October 15th, the 30 day GOFO rate was reported at exactly zero.  That also happened to be the exact day gold bottomed and started to move higher as GOFO moved into the negative for the rest of the week:

gofo-to-1000th-gold-October(1)

This short-term correlation speaks to the high probability that earlier this month “official” gold from central banks was leased into the market to satisfy elevated demand for physical off-take at the LBMA.  When enough physical was flowing, GOFO was “normal” and positive.  But when the crisis of the debt limit negotiations came to a resolution and the cartel could take a break from their mission to prevent gold being seen as a safe haven asset, the flow of leased gold slowed or stopped, and the ongoing, ever-present demand for physical was allowed to drain gold out of the Western financial system without a counter balance force of leased central bank gold dumped into the LBMA.

We should note that analysis of longer-term periods do not show the same consistent correlation.  For example, if you run the numbers for the period of August 1st and today, it results in a negative correlation of -0.20339.  Nevertheless, the pattern of very short term shifts from positive to negative 30 day GOFO rate this year does indeed correspond to short-term trend shifts in the price of gold.

Bottom-line: considering the other data points (rising premiums in Asia;  timing of large paper gold moves Thursday that was likely short covering and the end of the political “crisis”), the dots all connect.  But don’t tell Gartman.  Obviously, we’re just deluded gold bugs and we should not look at evidence.

Moving into next week, the trading bias for precious metals should be to the upside.  But the cartel is just taking a nap.  They’re not likely going to let upside action get far given that COMEX options expiration for gold falls on Oct. 29th.  Given the low levels of COMEX gold inventory, cartel monkeys can’t take risk letting physical off take get out of control.  Thus, on a net basis, next week will likely see gold rise, along with silver.  But no later than the week of Oct. 28th we’d expect to ghouls of Halloween set loose, and more flash crashes to the downside.

Enjoy the weekend — Eric Dubin

Image Source: Chip Somodevilla/Getty Images/Zimbio)

 

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  1. Hi,
    i am from The Netherlands and 1 day after this news IMF said it was ´just an idea´…….
     
    the was NO response from te sheep people, some reactions on facebook of silver-gold sites, none any further.
    So the people don´t mind it………is seems…….
     
    Yeah sure just an idea, took 80% of my money out of my account last week, i am just 31 years old, but i pay enough tax like everyone and i dont wat to pay tax over my savings ) or silver or gold!
     
    I spook with an actuary: statistician , he said they can´t do this blabla, so did the people of Cyprus thougt wit our Dutch friend Jeroen Dijsselbloem
     
    Greets and have a nice day.

    • Welcome to SilverDoctors, @MJP .
      I am curious about whether old American Silver coins (called ‘junk silver’) and Gold coins are popular in the Netherlands.  And do people there like the modern Gold Eagles & Buffalos?

    • MJP  Welcome to the site. 
      Here is a question that might be posed to the European community but could come here.
      If the IMF imposes a 10% wealth tax, what will the targets be?
      Bank accounts?  Those are easy to find and collect from
      Stock brokerages?  Same as bank accounts
      Retirement accounts?  Too easy a question–it’s been done in 9 European countries in the last 2 years
      Homes?   That’s called a property tax. Would there be an additional 10% one time levy on real estate
      Personal materials?  Who will inventory your stuff to be sure its accounted for?
      Precious metals?  Aye, there’s the rub  How does the IMF proposed to tax that stack if it sits in the safe, vault or earth?
      We know from historical records that tax collectors and king’s henchmen and bankers would routinely take assessment of the population’s possessions and expropriate a percentage of that stash.   In olden days most people had little wealth.  The wealth of the people  was concentrated in the elite and nobility, churches and businesses. Those were easy to track. The kings and despots had vast lists enscribed in records, such as the Domesbook.  
      Today wealth is much more widely distributed even though the top 1% does have most of it.
      Will the wealthy allow this 10% confiscation, particularly in light of the ongoing massively high taxes imposed on income and gains, the VAT on many products and the taxes already levied on personal assets.
      This will be an interesting wealth grab given that the net worth of the entire Eurozone could easily be on the order of 20 trillion Euros. How does one go about this?
      But here is the real conundrum.  The real deficits of the TBTF banks in Euro are far and away greater than 2.0 trillion.  Leverage in these banks is on the order of 35 to 50 to 1. The assets bases of the Eurobanks if over 45 trillion Euros. Even the slightest drop in the value of the assets collapses the bank equity. What if a large part of the 10% wealth tax was the bank’s own sstockholder capital?
      How about stealing of wealth that’s considered collateral held by the bank, exacerbating the reason for the bail-in. This would also be the banksters equivalent of the Worm Orbouros
      The collapse of these banks could not be stanched with 2 trillion Euros. Their leverage would demand much of the entire net worth of the Euro zones once the tens of trillions in derivatives are factored it. 10% would not cut it 100% might be enough, maybe.
      Good luck in collecting 10%, Le Gard.  Maybe you should go first

    • Hi to you all,
       
      tnx, i used to read here but wanted to post about the 10% haircut…
       
      sorry had a busy weekend could not answer faster.

      In NL american gold en silver eagles and gold en silver maple leafs are booming.
      Bullion dealer sell maple, eagles and Libertad
       
      no american silver junk in NL, we have our own 72% silver junk ‘dutch money’, the money we had before the euro…..the money used to contain silver.
      and we have .925 silver coins of 25 gram each.

    • Glad you found us! 
      We need good “boots on the ground” worldwide, 
      you may be called upon to verify/update/alert 
      us to EU happenings! 
      ANY advance Notice is great! 
       
      ~RGR

    • I believe there are smaller .925 silver coins from Nl too?  Pretty sure i have one in my collection somewhere, but my ‘junk’ is currently in safe hands about 600 miles away

  2. The article said “To the surprise of virtually no one, the debt ceiling was raised this week.” What was it raised to? I think the actual word is suspended.  Meaning NO LIMIT until January. LOL! Funny. Very good article and something similar is bound to happen here if the test works in Europe (10% Wealth Tax).
    Oh wait, it’s already here. We now have to pay a tax on something we don’t want. OBummerCare. We can tax you just because we know what’s best for you and you’ll pay it too! :)

  3. Hi! @2 OZ good to read you again. Lol How does your garden grow? Anyway good update fellows glad to see you mentioning other assets to stack. The JP Morgan Chase story has me confused and asking questions, why would they cut their own throats? or are they being directed that way by the Elite to kill small business or trying to create more business and manufacturing here, Lol (I don’t think that would be it).
    I really believe this is a big story with more to it and it’s being bypassed big time. Any thoughts? Keep Stacking, If you can, with Multiple Assets.

  4. One quote from the recording that stood out to me (I’m paraphrasing): “The GOFOs gone negative again mean that the bullion banks are not supplying the markt with additional bullion anymore.” That makes a lot of sense. I think it’s buy time (again)!
     
    The remarks about certain attitudes shifting (China secretly/openly doing their thing, etc..) is also very true and accurate.
     
    Lastly, thanks Eric for the call to diversification, that’s often forgotten on alternative news sites!

  5. No end to the corruption in the US markets and explains perfectly why the Chinese’s and Russians want to destroy the Dollar and this country.  They see a pathetic liar as your president run by a corrupt cartel of gangsters pulling his strings and unfortunately, they are right.  I hope for the day this whole system collapses and the freebies end for the perpetual unemployed and lazy of the US (compliments of the Democratic Party), for their day is coming they will be forced to do something to survive.  For then they will see who these creeps are that have sold them out while lying to them about everything including wars, spying on them and debasing money to enrich themselves were all phonies and con men. Government handouts will not suffice in a world of hyperinflation brought on by their friendly Federal Reserve gangsters who have lied to the American people since 1913.  Its sole mission is to extract wealth for the Jewish controlled banking cartel and CEO’s of large Corporations most not even paying taxes in the US economy that could care less about employment and regular middle class people.  
    Hussein Obama a man who never held a job or made a payroll is at the helm, a man with a checkered past and ideas that are so un-American it’s hard to believe that anyone could possibly have faith in this country any longer.  Of course, when taken head on by Ted Cruz, the liberal controlled
    media (40 stories during shut down blaming the Republicans, 0 stories blaming the Democrats who gave us this socialized medicine disaster) and Hollywood filth that voted for this man’s incompetence come to his rescue and try and destroy Cruz.  We are a country sick from the core!
    Goodbye America, you were the best of the best but when you allowed people like Bill Clinton to have sex in the White House and did nothing about it, you began the spiral down of morality.  The financial system has been rigged since 1913, now we are run by perverts and con men wearing ties and saying all the right things as the American family is being destroyed by the Hollywood Crowd and this dirt you elected to public office.  The time has come to look outside America, the problems are not too big but, the people have become too small and complacent.  They believe handouts and hanging out trump hard work and savings, that my friend is the end of a country.  The economy is being held together on printed monopoly money and a media willing and able to lie to the world but, people of the world are waking up and the days of wine and roses are ending. The final straw for America was Obama care now to have another layer of bills to be placed on top of a 3 trillion dollar disaster in the form of Amnesty to people who broke the law.  
     
    This was done to you complements of George Soros and Hussein Obama, Mr. Blankfien, Mr. Bush, Mr. Paulson,  Dimon, Rubin, Greenspan , Jeffery Imlett, and Bernanke, need to reach out and thank them for destroying the best country ever on the face of the planet and allowing a communist country like China to dictate our future. Their sole motivation was greed and is trademark of Jewish business since the Roman Empire, was just a matter of time that the complacent Americans allowed these scum suckers to destroy their hopes and dreams!
    This group called the IMF is nothing more than an ARM of the American Federal Reserve and their mission is to begin the bail ins which will follow to the US banks as this system begins cracking. The US cesspool of banking liars have their hands everywhere and know full well that taking all the deposits on the planet will not help to contain the Derivative mess, this is merely another control mechanism by Obama and his friends at the IMF.

  6. Hey M45, Everything was good with the garden except the most delicious veggie. Tomatoes. Too much rain. If the JPM story is true, they don’t want too much money leaving their bank as they would no longer have control over that money. We seen this action in Greece (Cyprus) as a test. The test proved successful and now they will “TEST” here a little at a time to see the people’s reaction. This is not the first test to control or take your money. Remember John Corzine and the money evaporation scheme? Yes indeed.
     
    MFLTuscon is right. “MFL says The financial system has been rigged since 1913, now we are run by perverts and con men wearing ties and saying all the right things as the American family is being destroyed by the Hollywood Crowd and this dirt you elected to public office.”

    So eyes wide open, Capital Controls on your money courtesy of the big banks and a constant squeeze by the FED.

  7. Nothing to worry about   Fed debt jumped $328 billion to $17.037 trillion overnight as the US Gov spent this is one day, right after debt limit lifted.
    This banker skank’s best day was competing in Olymics synchronized swimming.  Good experience to become a world banker.
    She’s been swimming in it for quite a while. The not-so-funny thing is that this comment is being taken seriously in the European capitals and central banks.  Euro zone is in a whole mess of hurt.  This movie gets better by the day.
    We’ll know this deal is real when currency controls start in earnest. Ringfencing the PIIGS

  8. With the GOFO going negative, it shows that gold is worth more than the dollar to those that trade in the market.  It means TPTB are needing gold now to cover their arses rather than their monopoly money, which is becoming more and more worthless to more and more nations.  When will America wake up and see the writing on the wall.
    OT:  When we see these flash trades in the gold and silver markets, what we are seeing is a clearing out of the market of those that are trying to play into TPTB playbook.  The price is going to gradually go up, so, why not make money off those that know what is happening to the markets by smashing the price by $50 and triggering all but the most ruthless investors of their positions.  For it to take as much as 650 million oz.s to accomplish this shows that there is a continuous battle going on to make sure TPTB are the only buyers on the correct side.  Likewise when we see the flash trades up, TPTB are probably in position to be the majority holders on the upside, and at the same time creating positions for themselves to benefit from the next flash trade down.  To play the gold and silver commodity markets today is beyond suicide.  Which tells me that only the elite of the elite gangsters are playing this game alone.  And I am almost convinced the only investor that would gamble on a 650 million oz. trade is if the trader is on both sides, an entity of themselves on the other side of the trade.  Something to think about in the west to east move of PM’s.

    • “A can that comes back and explodes…”
       
      That would be my favorite.  Make it say something interesting before it goes BOOM!  Something like “Kick this you stupid mother****ers!”.  lol
       

    • JPM even makes a quarter cent on that “Can”.
      When the can isn’t being kicked, it must be stored in a warehouse
      which JPM gets a quarter cent per day, to store for safe keeping.

  9. The thing is, while we are arguing about raising suspending and making unlimited debt limit, China is buying all the gold it can get its hands on, encouraging its mighty populace to start accumulating gold and telling the world the Americanization has to stop. The dollar is on its way out and we’re worried about how much paper can be sold in a Nano second. LOL!

  10. And Jesus said unto them: “Who’s eye is that on top of the pyramid?” and the tax revolting multitude replied: “Big Brother’s!” and Jesus replied to them: “Then give unto Big Brother what is Big Brother’s, and unto God what is God’s.” And the multitude cheered lifting up their uninscribed but perfectly weighted gold and silver 1 oz bullion!
    God is good! And his money comes without tax! Whoo hoo!

    Think about the ridiculousness of things… how stupid-greedy they’ve become:

    If you toil, there is an invisible hand in your face to take part of your labours
    When you spend your sweat, to convert it into anything you might need, there is that hand in your face
    When you hold something that you worked half your life for (say a house) there is that hand, muscling you to pay or else it will take your house!
    When you sell something you already paid the hand to buy, the hand is in your face, stealing some of your devalued recoup from that sale.
    When you DIE and wish to pass down what remains of your over taxed carcass on this planet, that hand is slapping your children in the face!

    What if we all just sat on our ass and said “Hand! Make your own cars, houses, feed yourself, were NOT doing it anymore so Go F@CK YOURSELF!

    That …. would be justice! …. or you could just give another 10% on top of what you already sacrifice, to pay off the bankers for losing their gambling money. Because they’re Soooo important! What would poor little you do without them? You NEED them! What a pile of horse $hit.

    • “What if we all just sat on our ass and said “Hand! Make your own cars, houses, feed yourself, were NOT doing it anymore so Go F@CK YOURSELF!”
       
      Then we would be just like the Russians who helped collapse the USSR.  Not a bad idea.  :-)
       
      But… in true American spirit, let us not give them a hand, but only a single finger.  :-D

    • I had posted a long and detailed post, but majestically, I was thrown back to the log in screen, and my log in password didn’t work. So backing all the way up, and posting again, I’ll have to summerize:
      1.  In order to file chpt 7 you need over 50% of your debts in the business like an LLC.  THEN you can toss the rest in there
      2.  Were programmed from youth to get in debt.  But you don’t own any of it, the banks do! 
       
      Thats my summary… not as passionate and well written as the first time… but think on it!

    • not all of the populatn is programmed for debt,mi was taught to save and any debt is bad debt.  i was debt free but when we bought a new house elected to create a mortgage as interest rate seems too good to pass up, saves some cash for other investments.
      pDebt can be good, but when used for frivolous “wants” with no way to repay we end up in the state we are in.

    • @mikeyj80 , my largest debt is on the adjacent property, which I bought in 2008; it has a barn on it which I rent out for horse-boarding.  When all stalls are rented out, this covers ~3/4 of the mortgage.  By the time that I retire, the property will be paid off and paying me each and every month.  So this may be viewed as ‘Good Debt.’
       
      Now – a question for you:  When PM prices are low, is the debt accrued by purchasing PM’s on credit considered ‘Good Debt’ or ‘Bad Debt?’
       
      I can argue either side of the fence on this one.

    • depends on your game plan.  Buying on debt is a risk.  If you go all in on an investment and then are on the hook to pay back an 18% card i really don’t have much sympathy for you.
       
      Taking an equity loan from your farm to do the same seems a better idea to me.  I like the idea of land that pays for itself, looking into farmland myself but need to partner with the right farmer for a longer term deal.

      It is tough to accumulate any measurable wealth with never having any debt, it is the calculation of how you get out of that debt that should be done ahead of time… A big screen TV bot on a credit card to be paid off month to month with minimum payments seems frivolous. Buying land that will pay you back and knowing going in you can swing it and even cover most of the payments by using the land seems a good investment. Doesn’t mean it is guaranteed to go right… but those are the risks everyone takes, some on bigger scales than others.

  11. Netranger 808  I did a post regarding filing bankruptcy when the banker’s jack boot is at your throat.  And yes, once debts ae discharged, you could have a good bit more FIAT to purchase Phyzz.  That rant was posted August 27, 2012

  12. Unfortunately, there is no amount of wealth that a government cannot completely squander.  In this regard, governments and banks have a lot in common.  These people need to be water-boarded until they understand a simple fact of life:  “DO NOT SPEND MORE THAN YOU HAVE!”
     
    It would be one thing if we were all asked to make a sacrifice that would then solve a major problem.  The hell of it is, that it will not and we will all be that much poorer for nothing.  These people need to return to square ONE and start EARNING our trust.  Thanks to what they have done and failed to do, they don’t have any credibility or trust to fall back on when they need it most.  Too bad for them.

    • ”DO NOT SPEND MORE THAN YOU HAVE!”
       
      People need to understand that, under the present debt-based fiat ‘money’ system, an increase in debt is necessary to keep the system functioning, by design.  In this system, ‘money’ = debt.  In fact, the whole thing is a Ponzi scheme that requires increasingly larger amounts of debt to be added with the passing of time, or else the system ceases to function.  Therefore, it is not that governments foolishly spend more than they have, they are doing what’s required of them to keep the present ‘money’ system alive.
       
      It should be clear to see how all the talk about austerity and cutting spending or balancing the budget is utterly futile.  Only a complete transformation of the present monetary system can lead to real change.

  13. http://www.youtube.com/watch?v=_j2vc018FPg Luv Max…love the jackass…but I want to remind you that although a farm mechanic by trade I scour the net for info pertaining mostly to: “when is the dollar going to crash?” I operate on…who-what-when (?) but mostly ..why and then of course: who. Now, I give no credence to off brand woo-woo sites although they have been saying for a couple years that there will be an intervention vis-à-vis the monetary policy of the “experiment” (us mortals.) O.K. Then there are the “monetary experts” (oxymoron) that wring their hands and then there are the (non-existent) or PUSSY mother fuckers that call themselves “justice” and then of course the parslings of the bought off bastard “leaders.” Sux on all sides. O.K. Everyone knows that fiat ain’t gonna work and as the Chinese say “no tikkie no washee”  Now we have the dinarians. what a group of Christ lovin sons of god do we have here?  but there is a level that you must look at. the money changers have waged war de facto and currency wise against RICH countries such as Viet Nam, Libya, Iraq, should I go on?  The need to off shore the saw buck so it does not reside in Ame-rica (banana republic) is paramount so Afghanistan contractors are paid huge dough and Panama et al is vanquished to the Dollar trade. Starting to sound like Jim Willie? good. Now the big fuckin idea is to have a global reset so all these vanquish nations pony up their gold/assets per Basal III and by Monday all the dinarians will cash in and we will have “Trickle Up” rather than trickle down. good for a shot in the arm and voila! we have “recovery.”  But here is the point I wish to make: “Whatever goes up…(paraphrasing) must drive something else down!!!”  If the Dollar is 60% lower imports flow in and if the Yuan is higher it was because they took the 3.8 trillion and instead of dumping it in Wal-Mart land and destroy us they bought OIL credits that will play out over the next 50 years at bargain prices. Viet Nam dough will be worth over $3. Now all the NIKE slaves will be able to buy shit from China. the Indonesian Rupiah will be on par at a buck and they too can buy from China nextdoor. It looks good on paper but I hear the DEATH KNELL of the saw buck. Come Monday I may have 5 million and it all goes in to silver. (don’t tell anyone) and by doing that it will shove the price up for all you guys and gals because I Love You. Does Willie ever tell you that? Max? Stacy? Daisy daisy…daisy daisy…daisy daisy…Rats! it is only showing the tiger’s Butt!!

  14. Very nice yellow stack Charlie! If it gets too heavy for you to carry, I’ll be glad to help lug some of the heavy stuff around for ya! :) Way to go!
     
     @ Ed_B : ”DO NOT SPEND MORE THAN YOU HAVE!” That my friend is a set of words that really confuses politicians. LOL!

  15. JPMorgan Chase and the US Justice Department have reached a $13 billion settlement over the bank’s civil mortgage-bond related matters, according to people familiar with settlement talks.

    The US largest bank is expected to pay about $9 billion in fines over its sale of troubled mortgage securities to investors. It will also spend $4 billion in relief for struggling homeowners, the New York Times said, citing the people.

    The settlement amount is $2 billion dollars more than what the bank had initially offered.

    According to the newspaper, the accord was reached late on Friday after Attorney General Eric H. Holder Jr. spoke on the phone to the bank’s top executives. But the deal could still far apart as the final details are being negotiated.

    JPMorgan is the target of investigations in the US and abroad. It has tapped $8 billion of $28 billion in reserves set aside since 2010 to cover its legal costs, according to The Washington Post.

    The Post noted that the Friday deal “will probably require the bank to cooperate in criminal investigations of individuals tied to wrongdoing associated with the bank’s mortgage practices.”

    The Federal Housing Finance Agency sued JPMorgan and 17 other banks over faulty mortgage bonds two years ago in an effort to recoup some of the losses taxpayers were forced to cover when the government took control of the failing mortgage finance companies in 2008.

    Fannie Mae and Freddie Mac, being regulated by FHFA, have taken $187.5 billion in federal aid since 2008.

    ARA/ARA
     11 4
     
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    Pat
    Oct 20, 2013 1:46 PM
    Read more about JPMorgan and what this have to do with the EU The Euro area adjustment: about halfway there 6/29/13 7:38 PM “In the early days of the crisis, it was thought that these national legacy problems were largely economic: over-levered sovereigns, banks and households, internal real exchange rate misalignments, and structural rigidities. But, over time it has become clear that there are also national legacy problems of a political nature. The constitutions and political settlements in the southern periphery, put in place in the aftermath of the fall of fascism, have a number of features which appear to be unsuited to further integration in the region. When German politicians and policymakers talk of a decade-long process of adjustment, they likely have in mind the need for both economic and political reform.” [[]Emphasis added]
    Click to Rate ReplyRating0

    • Holder is the Doyle Brunson of the DOJ’s Texas Hold’em version of high stakes poker.  Dimon needs to go back to kiddie school.  The first suggested settlement was $11 billion.  One phone call and Dimon is down another $2 billion.  What a moron.
      But boys will be boys.
      Now that this little bit of unpleasantness is over, let the looting begin in earnest.

  16. Just a quick correction.  During the show I noted the 8% premiums over London spot gold people were paying in India starting last week.  When I referenced it a second time I tripped over my tongue and talked about $8 dollar premiums over spot.  Sorry about that….  First instance, right, second comment…must have been thinking of the weekend ahead or some-such :-)
    - Eric Dubin

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