This is what Citigroup has been doing. They've been borrowing from the Fed at 0% and buying stocks, bonds, commodities, overseas, emerging market stocks, bonds, and commodities and creating one big bubble by increasing their balance sheet. This is what the Volcker rule has stopped now they have to unwind the bubble they created with tax dollars.
Charges for legal and reserves for Citigroup Brazil (Eike Batista Bankruptcy) and Mexico Homebuilders
Traders were front runners and traded against their clients in forex probe.
Is there a Law Citigroup hasn't broken? Now they're hiding $426 million in Switzerland.
The big Banks want Traders to stop using Instant Messaging. However, if traders are required to use instant messaging there will be a record forcing traders to be honest.
Big Banks are barring traders from online Chat rooms. It's not that the banks are suddenly going to become honest and stop manipulating forex and commodities. It's because the Fed's have a record of everything they say.
Suit claims defendant used instant messaging and chat rooms called "cartel", "bandits".
The specialist short sales and member short sales as reported in Barron's were the highest I have ever seen them August 2001. I know because I sold my stocks and was in the money market.
There's a bill in Congress that block's big bank's deductions of legal settlements tax deductions with DOJ.
Citi & JP Morgan are being investigated for commodity manipulation. Well all of the traders phones are recorded, no wiretaps are needed.
If the CFTC and the DOJ find that Citigroup and the big banks conspired to rig FOREX and Commodity prices. It will unleash unlimited lawsuits. Brazil, Mexico. Great Britan can claim damages that they were harmed when they set monetary policies. Russia, Iran, Saudi Arabia can say they were harmed over oil and gold prices.
Eike Batista and Citigroup losses in emerging markets could cause a mass exodus from emerging markets and ruin the model. The real risk in emerging markets.
42% of Citigroup Brazills earnings came from Eike Batista's Companies. What did Citigroup know and what did they say during the underwriting of the bonds and stocks?