MF global white knight blows the lid off of the JP Morgan shadow banking mafia
US regulators are holding roundtable talks today about how to protect customer's money. To keep it from basically being stolen. This is in the aftermath of the MF Global collapse of course. We'll speak to a lawyer by the name of James Koutoulas who represents 8000 MF Global customers in the bankruptcy. He says new US regulations won't stop firms from going the way of MF Global so long as they can go to the UK to take on virtually unlimited leverage. He tells us how MF Global was getting around the US leverage limits this way, similar to AIG in 2008, and why it's going on unchanged. We will talk as well about re-hypothecation, and how "churning" allows brokerage firms to leverage up like banks.
And, Federal Reserve Chairman Ben Bernanke gave his economic check up to lawmakers today which meant a reacquaintance with republican presidential hopeful and federal reserve executioner hopeful, Ron Paul. He asked the Fed Chairman if he does his own shopping, among other things, and that if he did, he would know that there is inflation. Well, one thing we have inside knowledge of here at capital account is that, in fact, ben bernanke does do his own shopping as our colleague Alyona can vouch for since she saw him at Whole Foods!
Meanwhile, Bank of America finds yet another way to cash in on the taxpayers and JP Morgan's CEO Jamie Dimon finds yet another way to cash in on attention as a drama queen sounding schizophrenic on regulation while lashing out at the US – specifically the media! He says that we "don't even make any money," while at the same time gloating about the profits made by JP Morgan. He seems to constantly cry whenever things don't go his way and then gloat when he thinks things will be ok. He's like a giant crybaby, drama queen spoiled brat!