GATAWhat Exactly Is The Point Of Throwing $Billions Down The Drain Suppressing Gold & Silver Prices?
From Rory Hall, The Daily Coin:

Bill Murphy – Gold & Silver: Why Does the Banking Cabal Go to All this Effort? 

Over the past several months the gold and silver markets have received some much needed attention. The type of attention that sickens the bullion banking cabal and the government enablers around the world.

First, Deutsche Bank admitted to rigging both the gold and silver markets and this admission, as documented for almost two decades by Bill Murphy and Chris Powell of GATA, was much needed for the gold and silver markets. Any one paying attention to these markets has known for some time they were being manipulated, especially traders who’s job it is to watch charts and how they respond and react to news and events that effect various commodity and equity markets. You would have to be willfully ignorant or have a total lack of understanding of charts to not see these markets were being manipulated. I have very limited trading experience and even with my lack of expertise I can see manipulation.

In the early part of January we found out, by way of a Wikileaks dispatch, the gold and silver futures market was developed and implemented for the sole purpose of manipulating these markets to keep the American people away from acquiring physical gold and silver.

TO THE DEALERS’ EXPECTATIONS, WILL BE THE FORMATION OF A SIZABLE GOLD FUTURES MARKET. EACH OF THE DEALERS EXPRESS- ED THE BELIEF THAT THE FUTURES MARKET WOULD BE OF SIGNIFICANT PROPORTION AND PHYSICAL TRADING WOULD BE MINISCULE BY COMPARISON. ALSO EXPRESSED WAS THE EXPECTATION THAT LARGE VOLUME FUTURES DEALING WOULD CREATE A HIGHLY VOLATILE MARKET. IN TURN, THE VOLATILE PRICE MOVEMENTS WOULD DIMINISH THE INITIAL DEMAND FOR PHYSICAL HOLDING AND MOST LIKELY NEGATE LONG-TERM HOARDING BY U.S. CITIZENS.  Source

This confirms, once again, all the efforts, research and years of dedication on the part of GATA to keep this fact in front of the people around the world. It’s because of GATA that as many people know, and have a better understanding, about these manipulated markets. The admission by Deutsche Bank and the dispatch from Wikileaks are the exclamation point to years of dedicated service by Bill Murphy and Chris Powell. The world owns these gentlemen a debt of gratitude that can never be repaid.

Bill Murphy, GATA Chairman and publisher of LeMetropole Cafe precious metals newsletter, sat down with us to discuss the latest action in the gold and silver markets. With both metals moving to the upside, the miners refusing to speak out against these now confirmed manipulated markets, what better a time to speak with one of the people responsible for continuing to deliver the news regarding the ongoing theft by the bullion banking cabal. These banking criminals must be working in conjunction with various governments, otherwise, this ongoing crime wave would have been exposed years ago.

Gold is money and nothing else; silver has been money longer than gold.

If gold and silver do not play a part in the monetary or financial system in some respect WHY would governments, working with these banking criminals, care so much, hide so much and enact policies to keep gold and silver out of the hands of the American people?

2017 Silver Vote Trump | Inauguration Edition
trump-silver-rounds

  1. Second reply, I think I (We)  have reached Peak PM Info.

    After reading this stuff since 2003, I believe every thing that can be said, has been said.

    The only thing left are the Numbers (price).

     

    I guess the re-hashed data is needed for those New to the PM world.

    And I will keep reading all the comments, the best part, thanks. Hey, I don’t want to miss the Blast Off  of The SILVER ROCKET to the MOON!!

    • That WikiLeaks dispatch SHOULD be big news in the financial press. They ignore it of course. It is another good piece of evidence to go in GATA’s files. Maybe some day some plaintiff will actually open those files.

    • It’s kind of like Brother John F saying: “when the price suppression ends the gains in silver will be phenominal!” You don’t say? Talk about stating the obvious. Never mind the fact that he’s been saying this since 2011.

    • First of all the only time the gold price was manipulated was when the US went off the gold standard and they were in the early stages of the petrodollar with the recycling of dollars and treasuries through out the international financial system and this was accomplished decades ago and the reason the Saudis were thrown under the bus by Congress. It is typical by those who promote metals to bring something up from over 4o years ago implying that it is still happening today.

      Evidently both of these guys have not read the Deutsche Bank docs as they clearly show the rigging of prices did not happen on the Comex as claimed but in the physical market. A handful of banks using the London twice a day metals fix was lowering price fleecing sellers and then raising price gouging buyers. They were helped by the bank’s traders on the spot or cash markets by lowering price then moving it higher taking out other trader’s stops along the way. As the lawsuit only goes to 2013 and has not been amended to the present you can bet that they have stopped.

      Those that trade the currency market understand what the HFT algos have been doing on the Comex and that is driving the price up not down, adding shorts and then riding price weakness back down with dollar strength. You can actually see at what levels they have been consistently driving up price to. First it was the 1362 bearish reversal level, then it was the 1300 level and now it is the 1200 where they add shorts riding price back down.

      I heard Murphy say 3 weeks ago that people would be shocked if they knew how few people there are on the NYSE floor. This just shows how the world has passed him by. The days of traders walking around the floor with order books is over as it inefficient, costly and time consuming with the advent of electronic trading. Trades are routed to the exchange where there is best price. This is one reason why the US has a structural problem with unemployment as computers are replacing more and more people. I just saw an article that said that in cities and states where they have raised the minimum wage that McDonalds is going to install ATMs that dish out Big Macs.

    • ” I just saw an article that said that in cities and states where they have raised the minimum wage that McDonalds is going to install ATMs that dish out Big Macs.”

      IMO, they will also need to install robots that come in, buy Big Macs, and eat them too.  There is no way in hell that I am going to an “automat” and eating anything served up there.  I rarely ever go to McD’s anyway but will not ever go if it comes to this locally.

      Sex is inefficient compared to invitro fertilization, so why continue to have inefficient sex?  It’s more time consuming and all that rubbish.  Just saying that efficiency is not everything that matters in human activity.  😉

  2. If the most powerful people in the world together with the governments and regulators want to perpetuate PM suppression it’s hard to see what’s going to stop them!? The news of Deutsche bank has had no real impact, there will be class action law suits which will probably hit the same proverbial brick wall of indifference and inaction. We’ve been told by numerous experts that the vaults in London are empty and physical exchanges in China will change everything; well evidently the vaults in London aren’t empty and the physical exchanges have had a minimal impact, so what will cause real change? Economies are recovering and banks are stronger, there is plenty of global liquidity which is good for equities but not PM’s. Of course there is Trump and growing protectionism, there are many and varied geo-political risks and there is the debt, debt and more debt. It’s clear that central banks are in collusion and behaving criminally to manipulate almost every market to their advantage, we can only hope they come unstuck but they have seemingly so far achieved remarkable outcomes, against the odds. There is incipient inflation and tightness in U.S. dollars but nothing that looks like a game changer. So, for now it looks like another protracted period of waiting with an uncertain outcome lies ahead. We shouldn’t really be surprised…

  3. Here is the f*****g bottom line

    If Trump wants rule of law he needs to enforce the banking and trading regulations that pertain to COMEX, CFTC and others who enforce the rule of law, removing illegal transactions of all types

    Here is how it should come down via executive order

    1.  If the CFTC and other regulatory bodies refuse to enforce the regs that speak to illegal trading, like the schenanigans of Chilton, Gensler and others who spent 5 years sweeping PM price rigging under the carpet, then fire the regulators and then prosecute to the fullest extent of law with jail time for those convicted of failure to do their jobs

    2.  If bankers are found to be engaging in illegal trading, price manipulation, rate rigging and other things that make these markets little more than self enrichment money machines, these bankers are charged, arrested, prosecuted, convicted and imprisoned, with fines that cannot be mitigated and are taken from the personal net worth and holdings of the convicted banker. A prison term of 10 years minimum is advised.

    3.  If a bank is found to be engaged in systematic corruption, criminal trading, bribes, currency manipulation, money laundering and other activities that are blatantly illegal (and which banks cannot claim they are innocent of said charges after the banks were force to pay something on the order of $200 billion to the US DOJ) the top officers are held personally and jointed accountable.

    The bank is taken over by the government. All stock ownership in the bank is fruit of the poisoned tree and confiscated by the government. The bank is either shut down or broken up and sold off to investors.
    The top officers and board members (yes, that means you Dimon, Goldwhatever,  Warren Buffet, Stumpf, Moynihan;  you thieving demented c suckers)

    My modest proposal would be a good start to implement the Rule Of Law in banking, trading companies, hedge funds, brokerages, dark pools, family offices etc etc.

    Allow the markets to return to normalcy

    4.  Arrest all top members of the Federal Reserve Bank system. All of them, including Granny Fellen, and perp walk these criminal sons of bitches out the front doors. Give We, the people 24 hour notice of these events. I’ll buy the truck loads of rotten vegetables for throwing purposes.

    Members of the Fed will not receive a trial. They are beyond the pale and deserve no leniency or clemency.
    They will be immediately taken to a prison and executed within 48 hours.  The fact is self evident that they are members of a global criminal cabal of banksters vultures. The mere possession of a business card with their name and title on Fed letterhead is prima facia evidence that they are guilty.  No reason to waste time and money on a New Age Nuremberg Trial for these bankers  Their crimes are centuries old and legion

    They have two options

    A poison pill or beheading.   Quick and little fuss n’ muss

    5 Drop a low yield 1 KT nuke on the HQ of the BIS. Hopefully the members will be in full session.
    Don’t breathe a word of this to Israel.

    • Shoot, I’ve never heard a back bench member of Congress, much less a president discuss anything remotely having to do with rigging of precious metal markets. I’d be overjoyed if Trump actually signed Audit the Fed. A thorough audit, connecting some dots, would have to expose the manipulation of precious metals. But we all know Trump will not sign Audit the Fed. Which, as far as I am concerned, tells us all we need to know about whether the “swamp will be drained.”

    • Why should Trump or any government want rule of law? The absence of law is at the heart of their very existence so they will perpetuate the corruption, criminal trading, currency manipulation and illegal activities as this is what gives them legitimacy and power. To expect change from governments is misguided and naive in extremes.

    • Pres. Trump selected the Goldman Sachs President as National Economic Director.  That should tell everything you need to know about the near term gold and silver outlook.  Unless sometime dramatic and drastic happens outside their control the metals will remain capped.

      I had high hopes that once Pres Trump took office we’d start to see an exit of the massive blind naked shorting of the metals which began under Obama’s regime in April 2011.  Its obvious the manipulation continues unabated.  If anything it seems to be intensifying..

    • lol @AGXIIK

       

      If that was your “modest proposal”, I would hate to see your kick ass proposal.

      :-O

       

      “… then fire the regulators and then prosecute to the fullest extent of law with jail time for those convicted of failure to do their jobs”

      The problem with this is that incompetence is not illegal.  People can be fired for this reason but not put on trial for it.  Now, if they could be charged with conspiracy of some sort, such as to defraud metals buyers, then those laws have some real “rip ’em a new one” teeth to them.  🙂

       

      “All stock ownership in the bank is fruit of the poisoned tree and confiscated by the government.”

      This is the toss the baby out with the bath water approach.  More people are involved in this than just the evil banksters.  Many people who have zip to do with how a bank is run own their shares, most often via a mutual fund or ETF in their retirement plan.  Also, if this was the law, no fiduciary could possibly invest in a bank with this hanging over their own heads and those of their clients.  This could and likely would collapse the banking system.  Whatever is done, it needs to fall fully upon the heads of the guilty and not merely on those who are close by.

       

      “Give We, the people 24 hour notice of these events. I’ll buy the truck loads of rotten vegetables for throwing purposes.”

      I’m thinking that they can jog naked through a gauntlet of several thousand people, each armed with a fly swatter, and giving them a whack or two as they shuffle by.  Yeah.  I’d turn out for that.  WHAP!  Aiieeee!  (repeat lots of times) 😀

       

       

  4. Silver is a small 1.2 billion oz  market.

    Convince 5 people to buy a few ounces a week and watch the tables turn. The reason why they dissuade you from owning gold and silver is because they want it all. You get paid with scrip and they keep real money.

    Secondly and most important, it is a commodity. Businesses and govts both want you to ignore silver and gold.

    I do my part to take off as much as I can, do you? your friends & family?

    • You probably have the only plausible solution to overcoming the suppression in the paper markets. “Big Money” is not going to become apostates and abandon the fiat system that preserves the status quo. There’s not enough “gold bugs” to affect supply. That leaves growing the number of “man on the street” smaller investors. Every one of us recruiting five converts would be a good start. Actually, the recurring manipulation is designed to deter any new investors from coming on board the “real money” boat.

  5. The fraud of fractional reserves, government counterfeiting, money rigging, etc:

    James 5:4

    “Behold, the hire of the labourers who have reaped down your fields, which is of you kept back by fraud, crieth: and the cries of them which have reaped are entered into the ears of the Lord of sabaoth.”

    It looks like only the Lord will set things aright.

    • “It looks like only the Lord will set things aright.”

      That may very well be the case.  But the cosmic scales of justice WILL balance.  It is one of the immutable laws of the universe and is often stated as, “Nobody get away with nuthin’.”  They may appear to do so for a time but it will catch up with them at some point.  Faith:  it’s a beautiful thing.  🙂

       

       

  6. Cheap metal is the albatross around the neck of the bank stirs. I don’t expect Silver to break 50 bucks this year.  22 maybe.  That’s what I’ll do.  I’ll position some of what I acquire this year for a sell off at 22.  Of course if the bulls bust out of the gate and stampede I won’t whine about that.

  7. @Letmysilvergo  @Sammy   I’ve been watching this movie so long I’ve memorized every line—kind of like  No Country for Old Men, Men in Black or Terminator

    We need to write  new shows, new movies; new heroes and new endings.

    These a*holes have been in charge of the scripts waaay to long and they’re as stale as week old bread and cheese.

  8. DB was caught rigging silver and gold, same with other banks. Why are they not disallowed to trade in market they were caught manipulating?! They should be permanently banned from trading this asset or any financial instrument that is based on this asset. I can’t understand why it is not done yet.

    As if you raped few girls, you promise you won’t do it again, you pay fine (less that for sex with prostitute) and you go again raping more girls, than you pay some fine again. You admit you and your friends keep on raping girls, and again you are free to go to rape more girls. That’s insane.

     

     

  9. @moratar   speaking of raping, I estimated that the trade and borrowing losses from the LIBOR rigging was at least $250 billion.  The other illegal trades made banks like WFB, HSCB, UBS and DBank trillions in income from money laundering and cartel/terrorist drug trades  Their fines were less than 1% of the income produced through these activities   And these activities continue unabated.

    • NOTE OF CORRECTION    The borrowers who’s loans were tied to COMEX  saw inflated interest costs approaching $250 billion. Those that rigged the LIBOR, and that list included every TBTF bank in Europe and the US made trillions in additional interest.  The fines were were a miniscule at less than 1% of the profits from the LIBOR rigging trade.

  10. Everyone’s frustration is understandable, but not all of us who have bought PM’s are in the same predicament. Some of us bought early or now. This is no different than any of the other markets and situations that investors find themselves in. If it’s any consolation those who bought Apple stock in the late 70’s hit pay dirt twenty years later. Bottom line is to know your right on an investment. Are we right? I think so, and here’s why. No Govt or it’s currency has ever lasted over the centuries. What we use as money is a representation of real money. How long does that last? We just might find out very soon. Sure looks like the pot is boiling. Gold is sought after when Govts loose their ability to lead and manage. Especially by those who have exposure to a dying currency. The USDX is a farce. Gold is moving towards the monetary system not away. Trump needs to audit everything. All govt statistics and data are a product of cartoon accounting. If one is to save in cash as a component of their portfolio then pm’s have consistently outperformed all fiat. I can buy your house, one share of the Dow, your 58 Corvette for way less ounces of Gold today than in 2000.

    • “All govt statistics and data are a product of cartoon accounting.”

      Indeed so.  I wonder if anyone on Trump’s staff has spoken with John Williams of Shadow Stats?  If not, that would be an eye-opening conversation.

       

  11. What Exactly Is The Point Of Throwing $Billions Down The Drain Suppressing Gold & Silver Prices?

    Would somebody please tell me WHO is throwing $Billions Down the Drain Suppressing Gold and Silver Prices?

    I assure you it was not DB and friends playing with the fix, and I can also assure you that JPMC has MADE $BILLIONS manipulating the COMEX.

    If you own 20,000 or more short contracts when the 50 or 200 day moving average is approached from above, and short some more and dump some longs to break the stack when trading is thin to trash the price and get managed money to start dumping their long positions and REALLY take the price down, that dump IS PROFITABLE!

    Yes, for sure they are manipulating the price, primarily on the COMEX, but they are NOT losing money doing it.

     

     

    • That is so true! When you short (sell) at a high price and buy at a lower price you make the spread. It is VERY profitable for the big banks. They always trade contrary to the masses for the most profit. Not to mention the gov’t has given them an open line of credit for keeping the lid on gold AND silver.

  12. @Ed_B   Actually, my Modest Proposal was written on SD over the last year or so as a normal post, not an article  The two times I sent it to Doc and Eric they both thought it was to volatile and inflammatory in that it could draw the attention of certain government entities—the same ones that’ve taken down sites and done so for even less of that sort of thing.  I’m not sure if even today it would be prudent to offer the full proposal on SD or TND since they’ve now been targeted and named as members of Fake News by WAPO and PROPORNOT.   Even with Trump as president, sometimes the best policy is to wait until you get past the witch doctor tent before calling him an SOB. NSA and other 3 letter federal agencies never sleep

    But as for taking down a bank due to the ineptitude of the top officers and directors, it’s been my experience that 1,000 banks were closed in the period from 1991 to 1994. These banks were taken over and the investment every shareholder, whether internally owned or owned by funds, individuals and the like, were vaporized and destroyed completely. So one escaped unscathed.

    The crash of 1992 and the prior take down of the S&Ls ended with every stakeholder losing 100% of their investment.  My comment above was not so much of one where corporate malfeasance was the test for the take over of a bank, small or large but it weighed largely on the decision to abruptly close a bank overnight.  When speaking of largeness I have to note that from 1991 to 1994, the 3 largest San Diego based banks were taken over with 100% loss to shareholders.  All but 3 of the small community banks were liquidated, usually after receiving an MOU then a C&D.  Once those edits were laid at the feet of the officers and board the inevitability of the take over was in motion.

    My experience was that within 2 weeks to a month of a C&D the FDIC would come in with a raid on Friday afternoon, usually without notice, much like an FBI hit on the headquarters of some gang or organized crime family.  They usually came with armed guards, told the employees what was happening, asked them and the senior officers to leave immediately, then shut and locked the doors. And that, as they say, was that!

    The following Monday that bank would either reopen with the name of the bank that took over the failed institution hanging on the wall or the bank was shuttered for good. A few were taken over due to chargeable and blatant criminal activities but most fell from grace due to bad loans, upside down bank ratios, major losses to the bottom line or a failure to make good on depositors demands and creditor payments.
     The bank that took over was brought into this play a couple of weeks earlier, briefed on the situation, shown the portfolio of loans, good and bad, allowed to select what they wanted to assume into their bank; given the access codes and keys to all the accounts, CD, portfolios etc and thus the transfer hand off was relatively seamless. The bank taking over was under the strictest orders to tell NO ONE of this due to bad publicity, runs on the failed banks and potentially trading on the stock of the failed bank.

    It was generally done in such secrecy that the top officers, many of  whom had the bulk of their net worth investment in the stock and securities of the failed bank, were completely unaware of what was about to transpire that the first notice of this extreme action was when then Feds walked in the front door on Friday and told the most senior officers that they were done, cooked and gone

    I’ve seen literally hundreds of bankers lose everything, whether they were the most senior or mid level management. The lost included all salaries, bonuses, vacation and sick leave, pensions if they were invested in the bank stock as was often the case, their portfolio of bank stock and other connections to the bank such as loans from of liens with that bank. Some were forced to pay back prepaid salaries, bonuses and other emoluments totally low 6 figures. That one is a story in itself and one that speaks to complete ineptitude, greed timing that coalesced into a crap sandwich that destroyed everyone associated with that particular bank.

    When I left Bank of Commerce to start my business in 1992  my bank had just received an MOU. Since my net worth and ESOP was tied up in the bank, 1 owed 2% of this public corporation That put me in real harm’s way. I was a mid level officer but not on the board so the potential for prosecution was not on the table but I knew things that could be dangerous to my well being.  
    My leaving was due to a combination of factors but primary of those was the clear recognition that should the bank get a C&D we were all toast.  My stock value was at least $200,000 at the time and my annual income at that level as well.

    Consequent to the MOU the board immediately went into crisis mode, fixed the problems, mostly through a generous cooking of the books and an inhaling of brokered CDs in an effort to keep the Feds and State bank examiners at bay, thus dodged what would have been a fatal blow.  The bank went on to great success.  My leaving the bank allowed me to start my business and for that I am very grateful as my success in that arena were substantial

    If the past 36 years has shown me anything it’s that VERY few bankers retire rich or even comfortably well off.  Most are forced to work well past retirement age to pay the bills, move into a completely different line of work, often at something for which they are unsuited. Due to the problems of their bank employers, they have little to show for a life time of work.

    So yes, bankers sow the seeds of their own financial destruction so regularly that it leads me to coin a phrase

    There are old bankers

    The woods are full of bold bankers

    But there are very few old, bold (and) rich bankers

    Fortunately I’m no longer a banker.  
    As for rich?   $200 silver would be a factor in that equation but, what the heck, we’re comfortable

    • @AGXIIK

       

      “Actually, my Modest Proposal was written on SD over the last year or so as a normal post, not an article  The two times I sent it to Doc and Eric they both thought it was to volatile and inflammatory in that it could draw the attention of certain government entities—the same ones that’ve taken down sites and done so for even less of that sort of thing.”

      Yeah, not like they aren’t already on all of “the lists” that are out there.  lol

       

      “I’m not sure if even today it would be prudent to offer the full proposal on SD or TND since they’ve now been targeted and named as members of Fake News by WAPO and PROPORNOT.   Even with Trump as president, sometimes the best policy is to wait until you get past the witch doctor tent before calling him an SOB. NSA and other 3 letter federal agencies never sleep”

      No problem.  Back channel me with that info, if you would.  Is now a good time to start using PGP or some other form of encryption?  Not that this is perfect but it sure does slow them down.

      As to WaPo and their liberal butt-buddies, they can go shove a stick. THEY are the fake news out there and not SD or TND.  I saw that SGT Report also made their list as did SHTF Plan.  Looks to me like a badge of honor rather than the name-calling hissy-fit that usually comes from the left.

       
      “But as for taking down a bank due to the ineptitude of the top officers and directors, it’s been my experience that 1,000 banks were closed in the period from 1991 to 1994. These banks were taken over and the investment every shareholder, whether internally owned or owned by funds, individuals and the like, were vaporized and destroyed completely. So one escaped unscathed.”
      So the thing there is to make sure that one’s funds only own shares in the systemically critical banks?  Probably.

      “The crash of 1992 and the prior take down of the S&Ls ended with every stakeholder losing 100% of their investment.”
      Which really sucks for those who have zero control of what the bank officers do.  How about the bond holders?  They usually come out of such things with most of their skin intact.  Assuming that the bank has sold any bonds, of course.

      “My experience was that within 2 weeks to a month of a C&D the FDIC would come in with a raid on Friday afternoon, usually without notice, much like an FBI hit on the headquarters of some gang or organized crime family.  They usually came with armed guards, told the employees what was happening, asked them and the senior officers to leave immediately, then shut and locked the doors. And that, as they say, was that!”
      That is what I have seen from the consumer side as well.  My step-Dad had a $100k CD with Indy Bank when it went TU. They were shuttered very quickly.  In about 2 weeks or a bit more, he got a check for the full amount plus interest.  Not that he was a shareholder but just a depositor.

      “The bank that took over was brought into this play a couple of weeks earlier, briefed on the situation, shown the portfolio of loans, good and bad, allowed to select what they wanted to assume into their bank; given the access codes and keys to all the accounts, CD, portfolios etc and thus the transfer hand off was relatively seamless. The bank taking over was under the strictest orders to tell NO ONE of this due to bad publicity, runs on the failed banks and potentially trading on the stock of the failed bank.”
      Yes, it pretty much HAS to be that way.  Loose lips lead to pink slips and all that.  😉

      “It was generally done in such secrecy that the top officers, many of  whom had the bulk of their net worth investment in the stock and securities of the failed bank, were completely unaware of what was about to transpire that the first notice of this extreme action was when then Feds walked in the front door on Friday and told the most senior officers that they were done, cooked and gone”
      Maybe the good news is that they were not arrested?

      “I’ve seen literally hundreds of bankers lose everything, whether they were the most senior or mid level management. The lost included all salaries, bonuses, vacation and sick leave, pensions if they were invested in the bank stock as was often the case, their portfolio of bank stock and other connections to the bank such as loans from of liens with that bank. Some were forced to pay back prepaid salaries, bonuses and other emoluments totally low 6 figures. That one is a story in itself and one that speaks to complete ineptitude, greed timing that coalesced into a crap sandwich that destroyed everyone associated with that particular bank.”
      I’ve never really understood why people allow themselves to get in such a position.  Every financial adviser out there is always harping about not having more than about 10% of your net worth in the stock of the companies that employ us.  I made good money from my former employer’s stock but I never kept my money in it for very long or in great quantity.  I just used it as a way to pump up my 401K plan.  We were given a 3% match in cash as the incentive for joining the company 401K plan.  But, if we elected to take company stock instead, the match was 6%.  We had to hold it for 9 months and could then sell it if we wished.  I did that on an annual basis for about 6 years as the stock cycled between about $20 and about $40 a share.  Wash, rinse, and repeat.  Ka-ching!  🙂

      “When I left Bank of Commerce to start my business in 1992  my bank had just received an MOU. Since my net worth and ESOP was tied up in the bank, 1 owed 2% of this public corporation That put me in real harm’s way. I was a mid level officer but not on the board so the potential for prosecution was not on the table but I knew things that could be dangerous to my well being.  My leaving was due to a combination of factors but primary of those was the clear recognition that should the bank get a C&D we were all toast.  My stock value was at least $200,000 at the time and my annual income at that level as well.”
      There are times when it is good to take your winnings off of the table and walk away.  This sounds as if it might have been one of those times.

      “Consequent to the MOU the board immediately went into crisis mode, fixed the problems, mostly through a generous cooking of the books and an inhaling of brokered CDs in an effort to keep the Feds and State bank examiners at bay, thus dodged what would have been a fatal blow.  The bank went on to great success.  My leaving the bank allowed me to start my business and for that I am very grateful as my success in that arena were substantial”
      The ban survived and that’s good for those who needed the benefits that entailed.  But starting a successful business of your own was also good.  All this looks like a win-win situation to me.  Well played.

      “If the past 36 years has shown me anything it’s that VERY few bankers retire rich or even comfortably well off.  Most are forced to work well past retirement age to pay the bills, move into a completely different line of work, often at something for which they are unsuited. Due to the problems of their bank employers, they have little to show for a life time of work.”
      Stop that!  You’re going to make me tear-up over these poor fellows.  Not.

      “So yes, bankers sow the seeds of their own financial destruction so regularly that it leads me to coin a phrase
      There are old bankers
      The woods are full of bold bankers
      But there are very few old, bold (and) rich bankers”

      Kind of sounds like karma at work, doesn’t it?

      “Fortunately I’m no longer a banker.”
      That is fortunate… and perhaps a soul-saving move on your part.  Corruption being what it is, it can go clear through to the bone.
      “As for rich?   $200 silver would be a factor in that equation but, what the heck, we’re comfortable”
      Comfortable is good.  Same here.  $200+ silver would be nice but even if that does not happen, we should be fine.

  13. Many bankers got their matching 401k invested in the bank stock  It was a cheap way to give employees stake in bank but 100% vulnerability to a crash  When that sudden closure took place on Friday they were left with no job, no stock, no pension and looking for work in a jobmarket that was totally devoid of opportunity. The 1000 banks that went TU was 6-7 times as many as failed in 2007-09 but some were monsters like WAMU, Wachovia, GMAC bank

    Those who owned stock saw collective losses in the tens of billions.  I knew many bankers who had big positions in their stock during this last crash   Many were literally wiped out after 30 years of work. A few went from 9 figure net worth to zero and one went from 10 figure to 9 fig and less    He was a major philanthropist who’s forward donation commitments went TU leaving well over $100 million in the lurch

    Others were so badly wiped out after 2008 they ended up unemployed, homeless, no job prospects or taking crappy analyst jobs at 1/3 the pay.  So few jobs were available that many never regained any employment  Some are in their late 60’s or 70s and still grinding away on the turkey jobs and will be working until they die.  I have many friends known for 20-35 years who were totally f’d.    I knew bankers who changed jobs so many times in 3 years that every time I met them, maybe after 6 months, they had a new business card. I said they should have their’s printed on an Etch-a-Sketch.

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