Wed 2010-06-09 18:45 EDT

London business figures embroiled in Kaupthing fraud investigation: Serious Fraud Office team thought to be to be scrutinising Deutsche Bank's role in alleged suspect trades| Business | The Guardian

Simon Bowers| The Guardian

A Serious Fraud Office investigation into Kaupthing, the failed Icelandic bank, is understood to be pursuing a number of allegations of market manipulation involving investment vehicles controlled by some of the bank's largest clients, including several high profile UK business leaders. It is alleged that in the weeks and months before Iceland's financial system went into meltdown, certain trades improperly used at least €500m (£413m) of Kaupthing funds in an effort to manipulate credit derivatives. Bank bosses hoped this would restore crumbling confidence in Kaupthing's solvency in the months before the bank collapsed in October 2008...The effect was for investment vehicles -- financed by Kaupthing loans, and at least nominally controlled by some of the bank's largest clients -- to take on risk associated with the bank going bust. Kaupthing loans were being use to write insurance against Kaupthing bonds defaulting...Iceland's Truth Commission obtained details of emails sent by Deutsche Bank staff to Kaupthing which, according to its report, demonstrated that the German bank had been offering advice on how to influence the CDS price on Kaupthing bonds from early 2008...

alleged suspect trades; business; Guardian; Kaupthing fraud investigation; London business figures embroiled; scrutinising Deutsche Bank's role; Serious Fraud Office team thought.

naked capitalism Tue 2010-05-11 09:04 EDT

Richard Smith: Another Nail in the ``Hoocoodanode'' Defense, Circa April 2007

Richard Smith

Here's someone with his head screwed on, back in April 2007, who proves singlehandedly that ``hoocoodanode'' was no defense for failing to anticipate the implosion of the shadow banking system (more on this prescient analyst in due course)...So who is this fellow who got it, back in that mythical time when nobody knew what was going on? According to an email correspondent of mine, he is ``a no-name equity guy'' in London. Actually his name is Henry Maxey, and he is chief investment officer and chief executive elect of Ruffer LLP, a small London fund manager. So there's no chance of making him US Treasury Secretary or head of the NYFRB, I'm afraid...

Circa April 2007; defense; Hoocoodanode; nail; naked capitalism; Richard Smith.

The Guardian World News Thu 2009-10-22 14:20 EDT

Bear Stearns duo 'lied over and over'

A pair of maverick Bear Stearns hedge fund managers lied to clients "over and over again" to protect their multimillion dollar pay cheques, exchanging secret emails to orchestrate a $1.6bn fraud as their funds imploded in the global financial crisis, a US jury heard yesterday. At a federal court in the New York borough of Brooklyn, financiers Ralph Cioffi and Matthew Tannin became the first Wall Street bankers to stand trial in a criminal case arising from the credit crunch.

Bear Stearns duo; Guardian World News; lying.

Mish's Global Economic Trend Analysis Wed 2009-08-26 15:55 EDT

Emails from a Bank Owner regarding FDIC and Under-Capitalized Banks

Michael Shedlock

Here is an interesting Email from a Bank Owner and CEO regarding As of Friday August 14, 2009, FDIC is Bankrupt. ``I have been in banking for over 30 years and from my perspective this is much worse than anything I have seen.'' ABO, who as been in the business 30 years, writes: A comment concerning the FDIC - As of June 30 the rates being charged banks have increased substantially. Risk 1 category went to 12 basis points from 5, risk 2, 17 basis points, risk 3, 35 basis points, and risk 5, 50 basis points. Additionally, a 5 basis point special assessment is being charged on September 30 on total assets less tier 1 capital. It is probable that a second assessment will also be charged in December. The cost of FDIC insurance for a two hundred million dollar, 1 risk rated bank last year would have been around...

bank owner; capitalized banks; Email; FDIC; Mish's Global Economic Trend Analysis.

Thu 2009-01-15 00:00 EST

Email Illuminates ``Deep Capture'' of the SEC | Deep Capture

Email Illuminates "Deep Capture" of the SEC | Deep Capture

deep Capture; Email Illuminates; SEC.