The Derivative Project

Derivatives and Fraud

AIG Suit:  Role of Commercial Banks, Trust and Capital Markets

AIG Suit: Role of Commercial Banks, Trust and Capital Markets

AIG shareholders and Hank Greenberg have their day in court tomorrow.  Gretchen Morgenson of The New York Times writes a summary here: “Court Casts a New Light On a Bailout.”  Ms. Morgenson writes: “In spite of this punishment, A.I.G. repaid the loan in January 2011. I am not arguing that…

Why Didn’t the SEC and Congress Investigate the Goldman/Libya Trades?

Why Didn’t the SEC and Congress Investigate the Goldman/Libya Trades?

  Reuters reported today “Libya Sues Goldman Over Losing Trades“.   No surprises here, just regrets the SEC and Congress did not do more sooner.  A billion dollar investment, that loses almost 100%, and generates more income to the “investment advisor”, than the client, is worth investigating as a fundamental…

Rewriting History: The Side Deal and the Congressional Testimony that Gave AIG a Free Pass and Goldman $13 Billion in Cash Flow

Did A Side Deal Save All the AIG Counter Parties, Including Goldman Sachs? With all the five-year reminiscing going on about the causes of the financial crisis—there is silence on one critical topic that needs real debate by Congress and the Department of Justice, before the history book is closed. As…

Rewarding Fraudulent Contracts With Bonuses and Rationale for New Financial Crisis Inquiry

Is it Time to Reopen an Inquiry Into the Causes of the 2008 Financial Crisis? Compliments of The New York Times, we share their opinion on the statements of AIG’s CEO Benmosche yesterday: Why It is Necessary to Reopen An Inquiry into the Causes of the 2008 Financial Crisis The…

Why the DOJ Must Counter Sue AIG Now

Reuters reported this week that AIG’s suit against the Federal government will receive class action status. Department of Justice, you now have no choice but to protect the U.S. taxpayer.  AIG’s credit default swaps were entered into fraudulently, since they knowingly entered into them without the financial capacity to make…

The Department of Justice and The U.S. Taxpayer v AIG

U.S. taxpayers had forgotten about, or never really understood, (due to the misrepresentative reporting on the fraud perpetuated by AIG) how they were duped. Taxpayers, here is another opportunity to see justice served for all the economic hardships following the 2008 financial crisis.  It is not to “get even” it…

Ameriprise vs Ameriprise: Even Wall Street Knows the Rot…Is that Why Potential Treasury Secretary Pick Chenault Sold It?

Ameriprise employees are suing Ameriprise over breach of fiduciary duty for putting their retirement savings into more expensive funds, packaged by Ameriprise.  Yes, that is self-dealing and a breach of fiduciary duty.  That is what every retirement investor is faced with in every 401k account today.  That is what every…

Lessons from 2012 Show Congress a Clear 2013 Road to Sustainable Economic Growth for the Middle Class

Hindsight provides a perfect vision for the future.  Here is our vision for a sustainable economic recovery for 2013 for middle class retirement savings.  Paramount to each of these points is a request for a renewed focus by Congress on the big picture that values society overall, over an obsolete…

Retail FX Has Largest Ponzi Scheme in History: What SIFMA Did a Few Days Later

They have Stained our Interbank Markets The facts are still coming out about the Peregrine fraud.  As evidenced by the Ponzi scheme of Trevor Cook in Minnesota, as the Star Tribune reported on this $194 million Ponzi scheme in the retail FX markets, the Peregrine situation may be far more…