The 11:00 post made reference to Germany, the day before to the USA. Here is some more, via IPJ:
Europe’s most important and significant bank, Deutsche Bank, hid $12 billion in losses during the financial crisis, helping the bank avoid a government bail-out, according to three former bank employees who filed complaints to US regulators. US regulators, whose chief of enforcement currently was none other than the General Counsel of Deutsche Bank at the time!
The three complaints, made to regulators including the US Securities and Exchange Commission, claim that Deutsche misvalued a giant position in derivatives structures known as leveraged super senior trades, according to people familiar with the complaints.
All three allege that if Deutsche had accounted properly for its positions – worth $130bn on a notional level – its capital would have fallen to dangerous levels during the financial crisis and it might have required a government bail-out to survive.
Instead, they allege, the bank’s traders – with the knowledge of senior executives – avoided recording “mark-to-market”, or paper, losses during the unprecedented turmoil in credit markets in 2007-2009.
Two of the former employees allege that Deutsche mismarked the value of insurance provided in 2009 by Warren Buffett’s Berkshire Hathaway on some of the positions. The existence of these arrangements has not been previously disclosed.
Naturally, DB is defending itself in the only way it knows: “this is complicated stuff, and we know better than those guys.” In other words, this is just a “tempest in a teapot.” Where have we heard that before…
The bank said the investigation revealed that the allegations “stem from people without personal knowledge of, or responsibility for, key facts and information”. Deutsche promised “to continue to co-operate fully with the SEC’s investigation of this matter”.
The complaints were made at different times in 2010 and 2011 independently of each other. All of the men spent hours with SEC enforcement attorneys and provided internal bank documents during multiple meetings, people familiar with the matter say.
SEC enforcement attorneys eh? Because this is where it gets really fun: the person who was in charge of DB’s legal compliance at the time was none other than Robert Khuzami. The same Robert Khuzami who just happens to be the chief of enforcement at the SEC!
Robert Khuzami, head of enforcement at the SEC, has recused himself from all Deutsche Bank investigations because he was Deutsche’s general counsel for the Americas from 2004 to 2009. Dick Walker, Deutsche’s general counsel, is a former head of enforcement at the SEC. The SEC declined to comment on the investigation.
Sadly, the “we are too sophisicated” defense may not be very effective this time.
Two of the former Deutsche employees have alleged they were pushed out of the bank as a result of reporting their concerns internally.
One of them, Eric Ben-Artzi, a risk manager at Deutsche, was fired three days after submitting a complaint to the SEC. In a separate complaint to the Department of Labor, he claims his dismissal was retaliation for his allegations.
Matthew Simpson, a senior trader at Deutsche, also left the company after submitting his own complaint to the SEC. Mr Simpson declined to comment. Deutsche Bank paid Mr Simpson $900,000 to settle his anti-retaliation lawsuit. Reuters reported in June 2011 that Mr Simpson had raised concerns about improper valuation of the derivatives portfolio.
The third complainant, who worked in risk management and has requested anonymity, raised his concerns to the SEC and voluntarily left the bank.
Or actually, since every bank in the world is forced to lie, cheat and mismark its own balance sheets every single day, not least of all the European Central Bank which as of moments ago has to accepted defaulted Greek bonds as collateral, this may just be completely ignored.
After all opening this particular Pandora’s Box may well reveal that not only DB but the world’s entire financial system is completely and totally insolvent.
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And for those curious why the SEC’s chief enforcer will never lift a finger against his own bank, all other considerations and recusals aside, here is what we wrote back in May 2010
The German government Thursday approved the consignment of German troops and Patriot anti-missile missiles to Turkey for its defense against Syrian aggression. DEBKAfile: The German soldiers are already in place.
I am fully expecting that when this all kick off with Syria/Iran, that the US and many countries in the EU, if not the EU itself, will start to convert debt into War Bonds.
The USS Eisenhower Strike Group transited the Suez Canal from the Persian Gulf Saturday, Dec. 1, sailing up to the Syrian coast Tuesday in a heavy storm, with 8 fighter bomber squadrons of Air Wing Seven on its decks and 8,000 sailors, airmen and Marines.
The USS Eisenhower group joins the USS Iwo Jima Amphibious Ready Group which carries 2,500 Marines.
Facing Syria now are 10,000 US fighting men, 70 fighter-bombers and at least 17 warships, including the three Iwo Jima amphibious craft, a guided missile cruiser and 10 destroyers and frigates.
Four of these vessels are armed with Aegis missile interceptors.
This mighty US armada brings immense pressure to bear on the beleaguered Assad regime after it survied an almost two-year buffeting by an armed uprising. Its presence indicates that the United States now stands ready for direct military intervention in the Syrian conflict when the weather permits.
Left behind in the Persian Gulf is just one US aircraft carrier, the USS Stennis and its strike group.
Welcoming NATO’s decision Tuesday, Dec. 4, to deploy Patriot missile batteries in Turkey, Foreign Minister Ahmet Davutoglu said Wednesday: “The protection from NATO will be three dimensional; one is the short-range Patriots, the second is the middle-range Terminal High Altitude Air Defense [THAD] system and the last is the AEGIS system, which counters missiles that can reach outside the atmosphere.”
Military sources: While the Patriot is land-based and will be deployed on the Turkish-Syrian border, the THAD and the Aegis have just reached the Syrian coast aboard the USS Eisenhower strike group.
“With this integrated system,” said Davutoglu, Turkey will have maximum protection.”
He added: “The Syrian regime has 700 missiles,” and their location, storage method and holders are no secret to Ankara. This was the first time Ankara had made threats to destroy Syrian missiles, including any carrying chemical warheads.
And of course India and China have to get involved, which brings in south-East Asia:
Yesterday we noted that India was preparing to send its Navy into the South China Sea – defending its mineral rights from China’s increasingly vociferous presence. The Philippines also expressed concern. Today, it’s Vietnam’s turn as Reuters reports the nation is condemning China’s “serious violation of sovereignty” as Chinese boats sabotaged Vietnamese State oil and gas company – PetroVietnam’s operations (by severing a seismic cable).
The actions stem from China’s ‘belief’ that two Vietnamese-owned archipelagos (Spratly and Paracel Islands) are theirs. While China (who oppose unilateral oil and gas development in disputed waters) argued somewhat comically that “Chinese fishing boats were operating normally,” the Vietnamese saw it as “blatant violation of Vietnamese waters,” and are deploying marine police and a border force to stop foreign vessels. As one analyst noted, “It’s going to lead to friction.”
While we mention India, China, the USA, Germany and so on, of course it is not these countries at all – mountains and lakes don’t go sialing, flying and marching around the world. Nor is it the ordinary people who are in austerity and struggling just to make ends meet at home under a mountain of debt.
Nor is it the soldiers, sailors and airmen who’ve decided to get into all this military confrontation. They take orders.
Yep, it’s our old friends Them, the rulers of the world whom no one knows, no one believes exist and no one knows the whereabouts of. The Annunaki of the modern age. We know some of the lieutenants – the Black Nobility for example, the royal houses and so on – but no one really knows the warrior class who have always kept the pot boiling for their own purposes.
Expect global conflagration, folks – they’re currently shaping up for it and your taxes are paying for them to slaughter the other side so the other side can slaughter our people. As one of the lieutenants said, when asked what his policy was:
My home policy – I wage war, my foreign policy – I wage war. All the time, I wage war. [Clemenceau on Mar 8, 1918, to the Chamber of Deputies]
That’s whom we’re dealing with.