nutmeg
Registered: Jan 2007
Posts: 18210 |
03-14-12 05:08 PM
The Relationships Between Wall Street, the Fed, and Politicians Are Crumbling
http://gainspainscapital.com/
1) Key Wall Street players hiring famed defense attorneys (Lloyd Blankfein of Goldman Sachs) in preparation for future litigation.
2) The Fed distancing itself from its responsibility for the Crisis by:
Suing Goldman Sachs
Opening itself to Q&A sessions and townhall meetings
Having “pro Fed” editorials written in the Wall Street Journal
Putting the blame for the Crisis and the US’s financial weakness on Congress’s shoulders
3) Various members of Congress (especially Ron Paul) and GOP Presidential candidates taking aim at the Federal Reserve.
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By including the “with Fed approval” phrase he made it appear that the Fed is in charge of JP Morgan’s business. However, by announcing that he wanted to raise JPM’s dividend and issue a buyback program he:
1) Implicitly stated that JPM was in great shape and would pass the Fed stress test with flying colors.
2) Indicates that JPM was depleting its capital, which goes against the Fed’s supposed claims that it wants banks to raise capital.
3) Shows who’s really running the show in the markets (the Fed had to speed up the release of its stress test results as the other large banks released similar leaks to the press).
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