Daily Archives: September 20, 2014

Big Banks Manipulated $21 Trillion Dollar Market for Credit Default Swaps (and Every Other Market)

Derivatives Are Manipulated.

Runaway derivatives – especially credit default swaps (CDS) – were one of the main causes of the 2008 financial crisis. Congress never fixed the problem, and actually made it worse.
The big banks have long manipulated derivatives … a $1,200 Trillion Dollar market.
Indeed, many trillions of dollars of derivatives are being manipulated in the exact same same way that interest rates are fixed (see below) … through gamed self-reporting.
The criminality and blatant manipulation will grow and spread and metastasize – taking over and killing off more and more of the economy – until Wall Street executives are finally thrown in jail.
It’s that simple …

Submitted by Washington’s Blog

Merrill Lynch fires brokers for promoting outside hedge fund – source

Merrill Lynch fired two veteran brokers from its Private Banking and Investment Group two weeks ago for guiding clients to invest in a hedge fund outside of the brokerage firm.

The brokers, Stephen S. Brown and James P. Goetz, were based in Pittsford, New York, a suburb of Rochester, and managed about $2.5 billion (1.53 billion pounds) of assets for clients, according to a source familiar with their practice.

They were fired on Tuesday, Sept. 9, along with two client associates. Other members of their team remain, according to sources in the large office of about 40 individual brokers and teams.

Brown and Goetz, who had been with Merrill since 1991 and 1998, respectively, according to regulatory records, could not be reached for comment.

Selling investments or other products not vetted and processed by an adviser’s employer is known as “selling away” and is a violation of securities industry rules. All advisers in the Pittsford branch were, within 24 hours of the departures, summoned to a meeting at which the seriousness of selling away was explained, several said.

Brown and Goetz continue to be listed as Merrill employees on the BrokerCheck website of the Financial Industry Regulatory Authority, and on their LinkedIn social networking pages. Brokerage firms have 30 days to update notices about brokers charged with violations or dismissed. The BrokerCheck website is http://brokercheck.finra.org/.
Read on.

How can Roger Goodell be removed as NFL Commissioner? NFL’s Constitution and Bylaws is the answer

By SP Biloxi

Before I post the NFL Constitution and By Laws on the Commissioner position, ESPN has just dropped this bombshell story. This is not good for Goodell:

The seven-month scandal that is threatening Roger Goodell’s future as NFL commissioner began with an unexpected phone call in the early morning hours on a Saturday in February.

Just hours after running back Ray Rice knocked out his then-fiancée with a left hook at the Revel Hotel Casino in Atlantic City, New Jersey, the Baltimore Ravens’ director of security, Darren Sanders, reached an Atlantic City police officer by phone. While watching surveillance video — shot from inside the elevator where Rice’s punch knocked his fiancée unconscious — the officer, who told Sanders he just happened to be a Ravens fan, described in detail to Sanders what he was seeing.

Sanders quickly relayed the damning video’s play-by-play to team executives in Baltimore, unknowingly starting a seven-month odyssey that has mushroomed into the biggest crisis confronting a commissioner in the NFL’s 95-year history.

“Outside the Lines” interviewed more than 20 sources over the past 11 days — team officials, current and former league officials, NFL Players Association representatives and associates, advisers and friends of Rice — and found a pattern of misinformation and misdirection employed by the Ravens and the NFL since that February night.

After the Feb. 15 incident in the casino elevator, Ravens executives — in particular owner Steve Bisciotti, president Dick Cass and general manager Ozzie Newsome — began extensive public and private campaigns pushing for leniency for Rice on several fronts: from the judicial system in Atlantic County, where Rice faced assault charges, to commissioner Goodell, who ultimately would decide the number of games Rice would be suspended from this fall, to within their own building, where some were arguing immediately after the incident that Rice should be released.

The Ravens also consulted frequently with Rice’s Philadelphia defense attorney, Michael J. Diamondstein, who in early April had obtained a copy of the inside-elevator video and told Cass: “It’s f—ing horrible.” Cass did not request a copy of the video from Diamondstein but instead began urging Rice’s legal team to get Rice accepted into a pretrial intervention program after being told some of the program’s benefits. Among them: It would keep the inside-elevator video from becoming public.

For its part, the NFL — which in other player discipline cases has been able to obtain information that’s been sealed by court order — took an uncharacteristically passive approach when it came to gathering evidence, opening itself up to widespread criticism, allegations of inconsistent approaches to player discipline and questions about whether Goodell gave Rice — the corporate face of the Baltimore franchise — a light punishment as a favor to his good friend Bisciotti. Four sources said Ravens executives, including Bisciotti, Cass and Newsome, urged Goodell and other league executives to give Rice no more than a two-game suspension, and that’s what Goodell did on July 24.

Most sources spoke with “Outside the Lines” on the condition of anonymity, citing the NFL’s just-launched, self-described independent investigation by Robert S. Mueller III, the former FBI chief, which is being overseen by John Mara, the New York Giants’ owner, and Art Rooney II, the Pittsburgh Steelers’ co-owner. Mara and Rooney are close confidants of Goodell’s. The interviews, viewed together, paint a picture of a league and a franchise whose actions — and inaction — combined to conceal — or ignore — the graphic violence of Rice’s assault. When evidence of it surfaced anyway, the NFL and the Ravens quickly shifted gears and simultaneously attempted to pin the blame on Rice and his alleged lack of truthfulness with Goodell about what had happened inside the elevator.

This is not good for Goodell since he gave a press conference today promising the clean up the NFL reputation on the human stain left of several recent NFL scandals. Now for the question in hand: Can Goodell be removed as NFL Commissioner? Here is Article VI, Section 6.5(G) of the NFL’s Constitution and Bylaws:

In the event that the Commissioner or any other officer of the League shall be convicted of a crime involving moral turpitude or be physically or mentally incapacitated to perform his duties or shall fail or refuse to abide by the Constitution and Bylaws of the League, and the Executive Committee finds that such action by such officer is detrimental to the best interests of the League, or in the event the Commissioner or any other officer of the League fails or is unwilling to perform his duties, then such Committee shall have the power after notice and hearing to suspend or remove said officer and to terminate any contract between such Commissioner or officer and the League.

“Detrimental to the best interests of the League” are very strong words as Goodell better pray  1. that there isn’t another NFL domestic violence or child abuse scandal and 2. that the bombshell story of a possible cover-up by the NFL of NFL player Ray Rice scandal reported by ESPN isn’t true. Below is the full Constitution and Bylaws of the NFL: