NEW YORK (Fortune) -- In a clear sign that the credit crunch is still affecting the nation's largest financial institutions, the Federal Reserve agreed this week to bend key banking regulations to help out Citigroup (Charts, Fortune 500) and Bank of America (Charts, Fortune 500), according to documents posted Friday on the Fed's web site.

Source

Fed Document



The rules are bendable for some, and not for others. This is fascism at work, people.

_________________
"Make an internal choice to focus on feeling peace and safety.
When we feel peace and safety inside us,
we send out that vibration to the world and
we create more and more of it in the world.
When we feel anger, resentment, irritation and fear,
we're helping to energetically create war.
What will you choose?"

Hi Tinmenace

I was trading the forex market up untill 2 weeks ago.
About a month and a half ago the news of the subprime woes emerged and really shook all of the market around the world. All central banks around the world have been pumping billions of dollars into their markets to try and keep them liquid and just from a personal stand point i believe we are starting to see the beginning of the end.
since there is more $ value in numbers on a screen than in physical notes coins ect it is all going to have to come to a major halt eventually. Who knows what this will bring all i know i am glad i am no longer involved!!
Cheers
A/S

TinMenace wrote:

NEW YORK (Fortune) -- In a clear sign that the credit crunch is still affecting the nation's largest financial institutions, the Federal Reserve agreed this week to bend key banking regulations to help out Citigroup (Charts, Fortune 500) and Bank of America (Charts, Fortune 500), according to documents posted Friday on the Fed's web site. Source Fed Document The rules are bendable for some, and not for others. This is fascism at work, people.

18
Oct FMNN Scoop: China Drain American Dollars - Telegraph Confirms UPDATE 2
Thursday, October 18, 2007

The UK Telegraph is reporting that Asian dollar outflows are exceeding expectations, led by China and Japan. This confirmes recent stories here at FMNN, including this one, now updated.
1. Original Title: Chinese $ Sell-Off Rumors Triggers Concern, Rash of Conspiracy Reports (2)


See also:

2. http://www.freemarketnews.com/WorldNews.asp?nid=49620
China $200 Bil ‘SuperFund’ Set to Drain American Dollars

=====

Today, the Telegraph reports:

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/16/bcnchina116.xml

Japan and China led a record withdrawl of foreign funds from the United States in August, heightening fears of a fresh slide in the dollar and a spike in US bond yields. The US requires $70bn a month in capital inflows to cover its current account deficit. Data from the US Treasury showed outflows of $163bn (£80bn) from all forms of US investments. “These numbers are absolutely stunning,” said Marc Ostwald, an economist at Insinger de Beaufort.

Mr Ostwald warned that US bond yields could start to rise again unless the outflows reverse quickly. “Woe betide US Treasuries if inflation does not remain benign,” he said. The release comes a day after the IMF warned that the dollar was still overvalued and likely to face “some depreciation in the medium term”.

Asian investors dumped $52bn worth of US Treasury bonds alone, led by Japan ($23bn), China ($14.2bn) and Taiwan ($5bn). It is the first time since 1998 that foreigners have, on balance, sold Treasuries.

=====

Previous FMNN report continues here:

In its ongoing struggle to disinflate its own economy and drain some of the trillion-plus devaluing American dollars that it holds, China’s leadership has apparently authorized the hush-hush creation of a US$200 billion “super fund” that will purchase raw materials around the world, according to FMNN sources close to the Chinese top leadership. The report comes on the heels of a previous FMNN report that Chinese banks have begun to cautiously trade down China’s horde of American dollars via international currency markets

In its ongoing struggle to disinflate its own economy and drain some of the trillion-plus devaluing American dollars that it holds, China’s leadership has apparently authorized the hush-hush creation of a US$200 billion “super fund” that will purchase raw materials around the world, according to FMNN sources close to the Chinese top leadership.

The so-called superfund will consist of assets of Chinese institutions whose investments will be swapped out for mostly for American dollars that will then be re-invested in foreign assets, the kinds of commodities that China needs to fuel its roaring economy.

China is awash with cash - dollars, euros, etc. - and the amount of cash in the country is inflating its stock market and causing interest rates to plummet despite the efforts of the leadership to slow the country’s tremendous growth rate - which some believe is approaching a classic “bubble.”

By re-exporting the dollars and euros that are flooding in, China can likely remove some inflationary pressures and have a positive effect on real interest rates as well. Additionally, China will be realizing ownership of assets around the world, and doing so in a non-controversial way as the ownership will not be obvious.

China previously was subject to a spate of bad publicity when it tried to take over large raw material companies in Canada - a move that was ultimately rejected amidst a chorus of indignation from Canada’s political leadership and business community.

While the move may be positive for China’s currency position and guarantee an increased exposure to commodities, it will likely put more pressure on the struggling American dollar.

FreeMarketNews.com


http://revolutionradio.org/2007/10/18/fmnn-scoop-china-drain-american-dollars-telegraph-confirms-update-2/

the cycle is starting to kick in full gear: the fed keeps cutting the discount to prop up bank of american and citigroup who was propping up countrywide with all the bad mortgage paper they're holding, the chinese start dumping their depreciating dollars, the fed keeps printing paper, the chinese dump some more, and so on.

that about right, tin? you're in the banking biz, aren't you?

i've even heard it's this mechanism of "stealth ownership" described above that is about to allow china to buy controlling interest in boa. have you heard anything about that?

_________________
"at least i have chicken" -- leroy jenkins

Quote:

Citigroup Chief Charles Prince to Offer to Resign, WSJ Says (Update1) By Yalman Onaran and Hugh Son Nov. 2 (Bloomberg) -- Charles Prince will offer his resignation as chief executive officer of Citigroup Inc., the biggest U.S. bank, the Wall Street Journal reported. The shares rose in extended trading. The New York-based company's board will hold an emergency board meeting this weekend, the newspaper said, citing unidentified people familiar with the situation. Michael Hanretta, a spokesman for New York-based Citigroup, declined to comment on the meeting when contacted by Bloomberg News. Citigroup reported $6.5 billion in writedowns and losses in the third quarter, casting doubt on the length of Prince's tenure. The CEO's departure would be the second in a week among the world's biggest financial institutions. Merrill Lynch & Co. ousted Stan O'Neal after his New York-based firm disclosed $8.4 billion of writedowns. ``The board may have simply reached the point where they can't take the pressure from stockholders and they have to remove him,'' Punk Ziegel & Co. analyst Richard Bove said in an interview. ``They have to have some issue which is huge, pregnant and wasn't previously considered to justify removing him. The only issue that they could utilize is that there's a big writedown.'' SEC Inquiry The Securities and Exchange Commission is looking into how Citigroup accounted for certain transactions in a banking- industry rescue plan, the Journal also reported, citing people familiar with the matter. Specifically, it's reviewing whether the company properly accounted for $80 billion in structured investment vehicles, the newspaper said, citing one of those people. The result of the review, still in early stages, could include no action or a referral to the SEC's enforcement division, the Journal said. The company's SIV accounting is ``in thorough accordance with all applicable rules and regulations,'' bank spokeswoman Christina Pretto told the newspaper. Citigroup fell 78 cents, or 2 percent, to $37.73 at 4:17 p.m. in New York Stock Exchange composite trading. The stock traded for $39.04 in extended hours. The company's shares have lost 32 percent this year. Rubin The shares fell 8.1 percent yesterday after three analysts cut their recommendations on the stock and CIBC World Markets said the company may have to reduce its dividend to shore up capital. Robert Rubin, the former U.S. Treasury Secretary and chairman of Citigroup's executive committee, may be asked to serve temporarily as CEO, Dow Jones reported. Rubin is ``reluctant'' to take the job, the news service said. Other possible candidates, according to the Journal, include Richard Parsons, a Citigroup board member who is expected to step down as CEO of Time Warner Inc. later this year, and NYSE Euronext CEO John Thain. Banks, securities firms and insurers have declined on concern that more writedowns and losses lie ahead for their holdings of bonds and securities backed by home mortgages, as well as corporate loans. The worst housing slump in 16 years has led to record U.S. foreclosures and brought trading in some mortgage bonds to a standstill as their value fell. Citigroup said it expected mortgage delinquencies and consumer lending to deteriorate for the rest of the year when it reported a 57 drop in third-quarter profit earlier this month. At the time, Chief Financial Officer Gary Crittenden said borrower defaults were ``accelerating.'' Citigroup's board is also expected to discuss this weekend whether the company should update the amount of writedowns to reflect the decreasing value of certain securities, the Journal said. To contact the reporters on this story: Yalman Onaran in New York at yonaran@bloomberg.net ; Hugh Son in New York at hson1@bloomberg.net . Last Updated: November 2, 2007 20:16

isn't this all p-r-s? just like bush was "assigned" to damage the u.s. financially and diplomatically, citigroup was "assigned" to crash the dollar from the inside. that's how i see it.

what's your take on this, tin?

_________________
"at least i have chicken" -- leroy jenkins

It's ALL bs

_________________
"It is no measure of health to be well adjusted to a profoundly sick society."

http://www.myspace.com/ritzcrackersgood

Quote:

It's ALL bs

here's another perspective.

Quote:

THE REAL REASON FOR CITIBANK’S EMERGENCY MEETING ON FRIDAY On Friday 2nd November, Citibank convened an Emergency Board Meeting at 4.00pm, which The New York Times and other media thought was all about sacking Charles O. Prince III, the Citibank Chairman and Chief Executive. The New York Times incorrectly stated that ‘news of Mr Prince’s plans to resign’ (as the newspaper put it) ‘were first reported on The Wall Street Journal online’, whereas the first report on this subject was carried on this website. In reality, this meeting was mainly concerned with the issue of how to pay the interest that the bank is obliged under the Universal Commercial Code, to pay to Ambassador Lee Emil Wanta by way of compensation for having willfully, craftily and illegally withheld payment from him since June 2006, following our exposure of the bank’s liability in this connection. We have calculated the amount payable as being a figure between $350 and $400 billion [Less than they should pay: see above].

http://www.worldreports.org/news/91_entire_citibank_boar

_________________
"at least i have chicken" -- leroy jenkins