The Illuminati were amateurs. The second huge financial scandal of the year reveals the real international conspiracy: There's no price the big banks can't fix.
"It's a double conspiracy," says an amazed Michael Greenberger, a former director of the trading and markets division at the Commodity Futures Trading Commission and now a professor at the University of Maryland. "It's the height of criminality.
Bloomberg News reported on Jan. 17 that Monte dei Paschi used a secret derivative contract with Deutsche Bank (DB) in 2008 to conceal a €367 million ($488 million) loss on prior swaps with the German bank.
The transaction, which was not disclosed to the government or to the bank’s shareholders, took place shortly before the bank started requesting billions in taxpayer bailouts.
Monte dei Paschi has acknowledged doing similar swaps with Nomura Holdings in 2009 and with an unidentified third bank. In each case, the bank appears to have replaced loss-making derivative contracts with even riskier ones, leading to still more losses and ultimately to more government aid. Losses from the transactions totaled about €720 million ($959 million),
Because if and when they do, the entire world, which has now become one defacto AIG Financial Products subsidiary, and is spewing derivatives left and right, may have to scramble just a bit to procure some of this $599 trillion in actual collateral, once collateral chains start breaking, once "AAA-rated" counterparties (such as AIG had been days before its bailout) start falling, and once the question arises: just what is the true value of hard assets in a world in which the only value created by financial innovation is layering of derivatives upon derivatives, serving merely to prod banker bonuses to all time highs.
But clearly if the President is having this meeting, there is a crisis unfolding somewhere in the background, and it could very well relate to the dollar, interest rates, and the massive derivatives market associated with interest rates…