[posting]61510682[/posting]The Feds Rescue Attempt Fails as Liquidity Crunch Unfolds
9/18/2019 12:50:00 PM News
Economic collapse news. The Fed has just completed its first Repo in a decade and it seems it failed. Several economists have been warning of this liquidity crunch that is beginning to grip the US banking sector. 53.2 billion dollars worth of liquidity gaps. That's not the max amount but a significant shortfall and it shows the market rejects the artificial low interest rates. When banks need money and there is none to have they must pay any rate possible not the rates set by the fed. Yes that would mean the fed has lost control of interest rates. The Fed meets today to determine whether to cut interest rates and the overnight liquidity needs commanded an interest rate of 10% at one point.
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Liquidity Shortage Getting Worse: Fed's Repo Oversubscribed As Funding Demand Soars 50% Overnight
by Tyler Durden
Wed, 09/18/2019 - 08:45
20 minutes after today's repo operation began, it concluded and there was some bad news in it: as we feared, yesterday's take up of the Fed's repo operation which peaked at $53.2 billion has expanded substantially, and according to the Fed, today there was a whopping $80.05BN in bids submitted, an increase of $27 billion, or 50% more than yesterday.
It also meant that since the operation - which is capped at $75BN - was oversubscribed by over $5BN, that there was one or more participants who did not get up to €5 billion in the critical liquidity they needed, and that the Fed will see a chorus of demands by everyone (because like with the discount window, nobody will dare to be singled out) to either expand the size of its operations, implement a fixed operation and/or - most likely as per the ICAP note yesterday - transition to permanent open market operations, i.e. QE
https://www.zerohedge.com/health/fed-begins-repo-operation-f…
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Fed Funds Prints 2.30%, Breaching Target Range For The First Time, As Libor Replacement Soars To "Remarkable" 5.25%
by Tyler Durden
Wed, 09/18/2019 - 10:44
If today's second consecutive repo was supposed to calm the stress in the secured lending market and ease the funding shortfall in the interbank market, it appears to have failed. Not only did O/N general collateral print at 2.25-2.60% after the repo operation, confirming that repo rates remain inexplicably elevated even though everyone who had funding needs supposedly met them thanks to the Fed, but in a more troubling development, the Effective Fed Funds rate printed at 2.30% at 9am this morning, breaching the Fed's target range of 2.00%-2.25% for the first time.
https://www.zerohedge.com/markets/fed-funds-prints-230-breac…
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„Verrückte Szenen“ – US-Geldmarkt erlebt plötzlichen Bankrun
Stand: 20:25 Uhr | Von Holger Zschäpitz
https://www.welt.de/finanzen/article200537756/Verrueckte-Sze…
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Sorcha Faal -- Deep State Destruction Test Run Begins
9/18/2019 12:16:00 AM
September 17, 2019
“Deep State” Destruction Test Run Begins After Largest US Bank Hit With Criminal Enterprise Indictment
By: Sorcha Faal, and as reported to her Western Subscribers
Source: What Does It Mean
A fascinating new Ministry of Foreign Affairs (MoFA) report circulating in the Kremlin today noting that an occurrence in which a procedure is tried in order to see if it works correctly, as defined in American vernacular, is called a “test run”, states such an occurrence appeared yesterday in the United States when US Department of Justice (DoJ) forces loyal to President Donald Trump stunningly slammed with a criminal enterprise indictment their nation’s largest bank JPMorgan Chase—the proverbial atomic bomb of indictments solely used to target only the largest of criminal organizations —and in this case sees Michael Nowak, a JPMorgan veteran and former head of its precious metals trading desk and Gregg Smith, another trader on JPMorgan’s metals desk being charged with masterminding a criminal scheme to manipulate the price of gold and silver—stunningly is an indictment filled with aggressive language embraced by prosecutors that reminds legal experts of indictments utilizing the RICO Act—a law allowing these prosecutors to take down “criminal enterprises” like the mafia by charging all members of the organization for any crimes committed by an individual on behalf of the organization—in this particular case seems to be these prosecutors using a sledgehammer to kill a gnat—unless, that is, this JPMorgan criminal enterprise indictment is being used to fine tune the intricate legal tactics Trump’s loyal forces will need to use in prosecuting the “Deep State” operatives who tried to overthrow Trump—an overthrow attempt so bungled and inept, it now even sees the final case prosecuted by Special Counsel Robert Mueller’s “witch hunt” leftist minions collapsing into a comical farce—as evidenced by their appearing yesterday in the courtroom of US District Judge Dabney Friedrich to astonishingly claim that she misinterpreted an indictment brought against a Russian company charged with funding a troll campaign to manipulate the American public during the 2016 presidential race—which in turn left Judge Friedrich “baffled” and this Russian company’s attorney shockingly stating that “even 18 months in we still don’t know what we’re charged with”—but saw Judge Friedrich making clear to Mueller’s leftist minions that she has no intention of catering to any suggestion to slow proceedings and this case would move toward the proposed 6 April 2020 trial date—with her further stating: “We are not going to let this case go for another year…I think if I left it up to you all I would be trying this case in 2021”—which is exactly what the “Deep State” wanted all along, as they knew this joke indictment was doomed from the start, and didn’t want it to explode in their faces during the 2020 election.
https://operationdisclosure1.blogspot.com/2019/09/sorcha-faa…
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JPMorgan's Gold and Silver Desk Was a Criminal Enterprise
9/18/2019 12:43:00 PM News
JPMorgan’s Gold and Silver Desk Was a Criminal Enterprise – U.S. Justice Department18, September
\u25c6 JPMorgan’s head of precious metals trading and senior traders have been charged by the U.S. Department of Justice with rigging precious metal prices in a “massive, multiyear scheme”
\u25c6 The DOJ’s indictment said the scheme generated millions of dollars in profits for JPMorgan Chase and caused millions in losses for counter-parties, prosecutors said
\u25c6 JPM precious metals desk chief, Michael Nowak, who was indicted is a JPM managing director and London Bullion Market Association (LBMA) board member
\u25c6 The U.S. DoJ has invoked RICO or Racketeer Influenced and Corrupt Organizations Act racketeering law in charging JP Morgan and racketeering is very rarely used in cases involving large banks
\u25c6 JPM is accused of illegally monopolizing the silver futures market, engaging in “widespread spoofing, market manipulation and fraud” in the gold and silver market and defrauding investors
\u25c6 JP Morgan may have accumulated the biggest stockpile of physical silver in history – See JP Morgan Cornering Silver Market?
https://news.goldcore.com/ie/gold-blog/jp-morgan-cornering-s…
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... mind. 21.500 kg ... .......................................................
DOJ Accuses JPMorgan's Precious Metals Trading Desk Of Being A Criminal Enterprise
by Tyler Durden
Tue, 09/17/2019 - 03:52
Who would have thought that JPMorgan's precious metals trading desk is the functional equivalent of the mafia, and that its one-time leader, Blythe Masters, was the mafia's don?
Well, almost everyone who didn't mind being designated a conspiracy theorist for years. And now comes vindication, because this has just been confirmed by the DOJ, which accused the PM trading desks at JPMorgan of being deeply involved in what prosecutors described as a "massive, multiyear scheme to manipulate the market for precious metals futures contracts and defraud market participants."
In an indictment unsealed on Monday morning, the DoJ charged Michael Nowak, a JPMorgan veteran and former head of its precious metals trading desk and Gregg Smith, another trader on JPM's metals desk, in the probe. (Blythe Masters was somehow omitted).
“Based on the fact that it was conduct that was widespread on the desk, it was engaged in in thousands of episodes over an eight-year period -- that it is precisely the kind of conduct that the RICO statute is meant to punish,” Assistant Attorney General Brian Benczkowski told reporters.
https://www.zerohedge.com/markets/three-jpmorgan-traders-cha…
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USA: Anklage wegen Goldpreis-Manipulation
17. September 2019
Das US-Justizministerium wirft zwei aktuellen und einem ehemaligen Edelmetall-Händler der Großbank JP Morgan Betrug vor. Dies berichtet heute das Handelsblatt. Dort heißt es:
Die Beschuldigten sollen den Anschuldigungen zufolge den Terminmarkt für Edelmetalle über Jahre hinweg systematisch manipuliert haben. Nach Darstellung der Strafverfolger haben die Verdächtigen illegal die Preise für Gold, Silber, Platin und Palladium in eine für sie vorteilhafte Richtung gelenkt.
Zu den Beschuldigten zählt ein Banker, der den Edelmetall-Handel bei JP Morgan geleitet hat. Nach Informationen der Nachrichtenagentur Bloomberg wurde der Händler im vergangenen Monat suspendiert. Die Manipulationsversuche sollen sich über acht Jahre erstreckt und tausende von Geschäften umfasst haben. JP Morgan wird im Statement des Justizministeriums nicht explizit genannt.
Andere Dokumente im Zusammenhang mit diesem Fall ermöglichen es allerdings, die Vorwürfe der US-Bank zuzuordnen. Experten gehen davon aus, ...
https://www.mmnews.de/gold/130711-usa-anklage-wegen-goldprei…