Daily Archives: February 22, 2016

HSBC hit by U.S. ‘princelings’ probe and below-forecast profit

HSBC<0005.HK> revealed it faces another potentially damaging U.S. investigation, this time over hiring people linked to government officials in Asia, which combined with below-forecast earnings led to a sharp fall in its shares on Monday.

Europe’s biggest lender, which also said U.S. regulators had concerns over the speed with which it was changing following money laundering lapses, confirmed it is among several financial firms being probed by the Securities and Exchange Commission (SEC) over Asian recruitment practices.

The SEC opened an investigation into JPMorgan in 2013 over the hiring of “princelings”, the term used in Asia to refer to the children or younger relatives of China’s political leaders or top executives at state-owned enterprises.

Read on.

Financial Products, Clip from Inside Job Documentary (2010)

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Collateralized Debt Obligations, Credit Default Swaps, Securitization Food Chain, AIG, The failure of AIG, Sub Prime Mortgages

Short Inside Job CDO Explanation

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Wall Street’s Message to Young Adults: “You are Clueless”

I saw this op-ed article on Wall Street Journal on how the millennials are clueless in flocking to Bernie Sanders. The millennials clearly get it. They have watched their parent struggled throughout the financial crisis.  Wall Street Journal article just underscores how out of touch the financial establishment truly is. The millennials are mad because Wall Street tanked the housing market for millions of Americans, screwed the homeowners (by illegally foreclosing on their homes) who made a middle class income, and laughed all the way to the bank with their tin cup to the government begging for more capital only paying their way out of their crimes. That is why Sanders is more appealing to the young voters than Clinton.

William K. Black
February 21, 2016     Bloomington, MN

Wall Street CEOs are very upset with young adults.  They believe you are “clueless” and “voting against [your] own interests” when you support Bernie Sanders.  A Wall Street CEO took to the pages of the Wall Street Journalto decry the fact that “Millennials are flocking to Sanders.”  It would be cruel to note that one has to be clueless to believe that writing an op ed in the WSJ was a good way to reach millennials supporting Bernie.  But at least we can gain an insight into Wall Street’s theory of why Bernie is bad for young adults.  It turns out that Wall Street is worried that Bernie is pushing Hillary Clinton to take inequality seriously because younger Americans take inequality seriously.  Wall Street, of course, loves and exists to produce staggering inequality.

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False Claims Act lawsuit against lenders and loan services tossed out

SAN FRANCISCO – Tossing a False Claims Act lawsuit against lenders and loan services, the Ninth Circuit affirmed Monday that Fannie Mae and Freddie Mac did not buy the loans at issue as instrumentalities of the U.S. government.

Source: Courthouse News

Here is the court document. Click here.

SEC Probing HSBC Over Asia Hiring Practices, Bank Says

JP Morgan was probed with on the same issue…

Law360, New York (February 22, 2016, 1:39 PM ET) — HSBC Holdings PLC on Monday disclosed that the U.S. Securities and Exchange Commission is investigating the bank’s hiring practices in Asia as part of a probe into whether multiple banks improperly hired relatives of government officials.

HSBC announced the investigation in a Form 6-K filed with the SEC on Monday, saying that the agency’s investigation is related to the bank’s hiring of candidates related to government officials or employees of state-owned businesses in Asia. Other documents filed by HSBC on Monday also discussed concerns over the…

Source: Law360

UPDATED: Someone Seriously Dropped the Ball During the San Bernardino Shooting Investigation

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Call it stupidity for the FBI to give half of the facts to the public and a major push to force Apple in a court order to create a backdoor to access the accused San Bernardino shooter’s cell phone when it was the California county official that reset the password remotely after federal authorities took possession of the device. Apple has ever right to fight this and protect the privacy of the customers. The FBI should have gone to Apple first to get their response first before heading to court.

As if it is not embarrassing enough that the feds are begging (in the form of a court order) Apple to help them create a backdoor to access the accused San Bernardino shooter’s cell phone, we are now learning that a California county official reset the password remotely after federal authorities took possession of the device. [see below for UPDATE on this story, FBI now saying county worker was working under the direction of federal authorities]  Regardless, Apple said the password reset meant that they could no longer recover information from the iPhone. In addition, the company contends that if authorities had taken the iPhone to a recognized Wi-Fi network, the phone would have automatically backed up to the iCloud.

This unfortunate and shocking revelation seems to indicate the ball was dropped in the first few critical days of this investigation. The apparent password reset resulted in a big set back for the FBI who have now been struggling for more than 2 months to gain access to the device’s contents. Most importantly, it raises questions about the FBI’s protocols and response in the immediate aftermath of the December 2015 terrorist attack at the Inland Regional Center in San Bernardino, California.

Read on.