From Financial Times via Dagospia A head of the risks of the investment bank JP Morgan had been warned that Bernard Madoff had "a well-known black cloud" above his head and was suspected of having set up a Ponzi scheme, almost 18 months before the New York financier, was indicted on charges of having run a scam from $ 18.6 billion. Is the finding of procedural documents recently declassified. This accusation is contained in the lawsuit brought against the $ 6.4 billion U.S. bank by Irving Picard, receiver who has the task of recovering the stolen money to victims of Madoff. In the process, Picard wants to recover $ 1 billion in fees and profits generated by JPMorgan as the largest bank by Madoff used to manage his money and securitized derivatives produced by his company, more than $ 5.4 billion in damages. The document was made public yesterday, JPMorgan and was a request that was filed in secret. And 'one of nearly 60 cases brought by the liquidator, who want to recover more than $ 50 billion from dozens of banks, hedge funds and individuals who he profited from the fraud Madoff. Picard says that JPMorgan has ignored the billions of dollars in suspicious transfers that took place on the accounts of the company Madoff and has repeatedly failed to act on the concerns raised by its employees who worked on structured finance products Madoff. JPMorgan said that the cause of Picard is "entirely without foundation, and based on the distortion of facts and rules applicable to them." "Contrary to what the curator bankruptcy, JPMorgan was not aware of the scam, and there has never participated. "The bank also said it has complied with all applicable laws and regulations relating to current accounts and the profits generated by it on account of Madoff" were small and comply with the commission which apply in the financial market. "JPMorgan has been the main bank Madoff for more than 20 years and has also sold its structured securities to hedge funds that pumped money into the Ponzi scheme. As part of this second process The bank has made a "due diligence" (ie, control accounts, relevant documents, contracts, etc..) hedge funds and their relationship with Madoff. Picard, in the act which he deposited in court, cites several emails in which employees of JPMorgan concern. "It does not look good" ("Does not it look pretty") writes about an organization's bottom Aurelia, and another complains, "Madoff not allow us to make any 'due diligence' on him "The conversation with the risk officers would take place in June 2007, when JPMorgan was planning to give its support to an even greater number of securities issued by structured Madoff. We read an email that the risk officers would have written that another employee of JPMorgan told him "there is a well-known black cloud over the head of Madoff and that its profits would be part of a Ponzi scheme - he said that if do a Google search can find ourselves the article ... I think it is a duty to ourselves to investigate in greater depth. "The risk officers then approved $ 250 million in structured products, as stated in the documents. JPMorgan had begun to raise their money from financial products Madoff in 2008, after the acquisition of Bear Sternd had to change the attitude of the bank about its exposure to hedge funds. JPMorgan has also reported the financier Madoff English for Organised Crime Agency October 2008, saying that its profits were "too big to be true." Madoff was then handed over to authorities in December 2008 and now is serving a sentence of 150 years for fraud.
From "Republic" again by Dagospia
Censorship on the crack of Irish banks, Merrill Lynch erased the evidence of Henry Franceschini
The financial crisis that has put in knee Ireland more and more the characteristics of a plot, a yellow or a scam. The investigation of a newspaper revealed that the large U.S. investment bank Merrill Lynch has played a key role in the collapse of banks in Dublin and has criticized the relationship of one of its analysts who predicted the collapse at the beginning of 2008. In March 2008, the bank withdrew a negative report of the Emerald Isle, written by one of its analysts, because they called the Irish banks Merrill Lynch and threatened to move their money and their business elsewhere if the report had not been changed or deleted. The Merrill Lynch report changed, greatly mitigating the reviews, and several months after the report's author, an analyst named Philip Ingram, left, or perhaps it was forced to leave the bank. To make these revelations is a long article on the issue of British magazine Vanity Fair, by Michael Lewis, author of financial affairs became famous recounting their experiences in the 80s and 90s in another large investment bank U.S., the Solomon Brothers, in a book called "Liar's Poker" which became an international bestseller. The article includes interviews with Irish Finance Minister Brian Lenihan and former executives of Merrill Lynch. Lewis writes that the Ingram report was sent to the financial markets in March 2008 but was withdrawn after just a few hours. "Moments after Ingram had pressed the button on his computer transmission, the report was the document that the whole City was avidly reading," writes Lewis. "But almost immediately, calling the bankers of the Irish banks Merrill Lynch and threatened to take their business to other banks. Ingram's superiors summoned him, they did meet with lawyers Merrill, which purged the ratio of its negative reports on the status of Irish banks. Since then, all that Ingram wrote about Ireland was reviewed and corrected. " Six months later, at the request of the Irish Government, the article continues, Merrill Lynch wrote a seven-page report stating that all the Irish banks were well capitalized and had a profit. Merrill Lynch did pay € 7 million for the report, which helped to convince the Irish Finance Minister Lenihan to introduce the controversial decision in September 2008 of a security blank for all banks in his country. Extrimis saved by the intervention of the IMF and the European Union, Ireland now awaits the outcome of the elections held on Feb. 25 to see who will guide her, and how, out of the dangerous waters of national bankruptcy.
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This news, reported by "Dagospia" are not made of sheets demented conspiracy theorists as "Effedieffe" or "Luogocomune" but by two mainstream newspapers such as the "Republic" and "Financial Times". But, unfortunately, this news very interesting not ever publish on the front page, for some reason. And for some reason omitted the lucrative contributions that these two banks, among others, have given the presidential campaign of Barack Obama and omit that Obama himself as a first step saved these banks, among others, with a mountain of federal funds.
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