Thursday, May 13, 2021
This entry is part 20 of 31 in the series Labor Initiatives
Home #BlackLivesMatter Deutsche Bank Labeled International Criminal Organization

Deutsche Bank Labeled International Criminal Organization

This entry is part 20 of 31 in the series Labor Initiatives

In the same way in which National Association of Mortgage Field Services (NAMFS) Offender Members are being labeled financial terrorists, so to is one of the larger financial institutions in the Mortgage Field Services Industry. Deutsche Bank, whose woes have never gone away since the 2008 financial crisis, is up a creek without a political paddle in their fight against Italian prosecutors. Currently on trial in Milan for concealing losses pertaining to Banca Monte dei Paschi di Siena SpA. In fact, Deutsche Bank is being charged as an International Criminal Organization for their actions with respect to evidence pointing to the rigging of internal indexes. Deutsche Bank and Nomura Holdings Inc., are both on trial for colluding with Monte Paschi to hide the losses so grave that it almost bankrupted the Italian firm. A total of 13 former employees, all managers, have been charged with false accounting and market manipulation.

[T]he financial giant Deutsche Bank saw its shares taking a plunge and dragging banks in Europe and world stock market indices down. The first hit came on the 16th of September [2016] when the US Department of Justice fined Deutsche Bank $14bn to settle an investigation into its mis-selling of mortgage-backed securities that led to the financial crisis of 2008.

Embattled German lender Deutsche Bank posted a net loss of 1.9 billion euros ($2.05 billion) for its fourth quarter, missing analyst expectations, but reported improved results for the whole of 2016 in what has been a trying year for the bank.

And the problem becomes even more exacerbated. You see, Jared Kushner, President Donald Trump’s son-in-law, held meetings in December with Sergey Gorkov, the Chairman of Vnesheconombank (VEB), a Russian state-owned bank which has been under U.S. sanctions since July 2014 for Russia’s annexation of Crimea and aggression in Ukraine.  VEB is under US Government sanctions. Wall Street on Parade went on to further paint the picture of not only Deutsche Bank’s holdings, but virtually all of Wall Street,

Fidelity Advisor’s Emerging Markets Income Fund shows it held more than $62 million in VEB fixed income securities as of December 31, 2016. Various Deutsche Bank mutual funds that operate in the U.S. own tens of millions of dollars of VEB debt securities. JPMorgan’s Emerging Markets Debt Fund shows that as of November 30, 2016, it held $20.5 million in VEB debt securities, although, curiously, it has the position assigned to its Ireland holdings. Other big mutual fund names showing VEB assets are PIMCO, Putnam, and Vanguard.

As I have said for nearly two years, the Q3 2017 will usher in the next Great Recession which will make the 2008 Crisis look like a joke. And with nationalism sweeping globally, the simple and salient fact is that those whom have forced the greatest pain upon Minority Females and Labor, like the financial terrorists at the National Association of Mortgage Field Services (NAMFS), are strategically aligned to fall like the row of dominos which they are.

The Vampire Squid is back. While the subprime mortgages are somewhat held at bay, the reality is that by and through the student loan and auto loan debt loads, both of which are out of control, are already framing up our next crisis. To complicate things even more, when we look at retirees, they are hoarding cash. By in large, most are reaching their 80’s with more money than they held in their 60’s. And while many may praise their frugality, the Federal Reserve and Wall Street banksters are not among them. And therein lies the rub as the Bard would say — you cannot have capitalism without capital.

While prices have recovered to pre-housing-crisis levels, there has been extremely slow wage growth — stagnant in most of the cases. What this means is that there are virtually ZERO affordable homes. When you have no affordable housing you begin to see a gobbling up of multiple dwelling units for rent — and we have had a flat line in new construction for apartments — and this means people do not buy and sell in the residential arena.

We are looking at a Ponzi Scheme perpetuated upon the back of the US Dollar and Japanese Yen. With high frequency trading (HFT) manipulating the Markets, Q4 2017 and throughout 2018, will most assuredly be the Black Swan that crashes and burns while Investors are Blue Skied. Look, up until the advent of HFT, gold was the bellwether to determine if inflation was rising. We would see strategic purchases in the same manner as say your mom or dad might buy 1000 shares of Company XYZ because they felt good about the market. Today, though, both the trades in which nearly 85% are HFT based and the price of gold, now artificially frozen vis-à-vis HFT purchasing, control the Market. Let me belabor that, for just a moment, as only a trained media professional as myself is capable of doing.

First, what is the system which we refer to as high frequency trading (HFT)? Frank Zhang, over at MIT, has a great paper describing the entire operation,

High-frequency trading firms deploy fully automated trading strategies across one or more asset classes which identify and profit from short-term (e.g., intra-day) price regularities. HFT strategies try to earn small amounts of money on each trade—often just a few basis points, and the small profits from individual trades are amplified by high trading volume. High frequency trading can be roughly classified into two types: market making activities and more aggressive HFT trading strategies (e.g., statistical arbitrage). HFT is a subset of algorithmic trading, or the use of computer programs for entering trading orders, with the computer 5 algorithm deciding such aspects of the order as the timing, price, and order quantity. However, HFT distinguishes itself from general algorithmic trading in terms of holding periods and trading purposes.

Now, how is HFT implemented? I am going to cite a patent definition to explain such,

[A …] computer-implemented financial management system that permits the trading of securities via a network. A server computer receives buy and sell orders for derivative financial instruments from a plurality of client computers. The server computer matches the buy orders to the sell orders and then generates a market price through the use of a virtual specialist program executed by the server computer. The virtual specialist program responds to an imbalance in the matching of the buy and sell orders.

When the Federal Reserve Board (Fed) rolls out the Big Hen — Fed Chairwoman Janet Yellen — those statements are cycled throughout cyberspace, via RSS feeds and articles, and bots cull the information. Those bots then, in turn, convert the discussion into zeros and ones which is, in turn, sucked into highly complex algorithms. These algorithms are then, in turn, plugged into HFT mechanisms. Now, an interesting thing is that when the Big Hen is rolled out on the Stage, her underlings — the Fed Governors — generally rally around and then the same statement is parroted nationwide. Now, the irony here is that when the Federal Open Market Committee (FOMC) meets, there is generally a Statement issued and then nearly three weeks go by before the Official Minutes are released. Why is this?

The Big Hen knows that these Statements are plugged into the algorithms and within milliseconds are executed in the form of buy or sell executions within IEX type Dark Pools. Make no mistake whatsoever that if the Henhouse — the actual Fed — does not get back the results that they are looking for, those Official Minutes are altered to accordingly send out a new set of messages for the bots to harvest.

So, back to Gold as the Canary in the Inflation Mine. You cannot allow gold to rise in a manner which would indicate purchasing reflecting a concern and movement to a safe haven from inflation. In essence, HFT does all the heavy lifting which the Fed used to do from actual work — or physical rigging, if you will. Think I jest? Take a walk through the Volatility Index. Here, let’s listen again to what Zhang, had to say in his recent paper,

The analysis presented in this paper focuses on a large sample of firms from the CRSP and the Thomson Reuters Institutional Holdings databases during 1985–2009. I find that institutional turnover was remarkably stable (around 20% per quarter) throughout the 1985–2009 sample period, even though institutional holdings steadily increased from 40% in 1985 to over 60% in 2009. During the first 10 years of the sample period, stock turnover was also very stable—around 17% per quarter, a number close to the average institutional turnover over the same time period. However, stock turnover increased dramatically after 1995, climbing to over 100% by 2009. The drastic divergence between the turnover of stocks and the turnover of institutional holdings coincides with the emergence and rising popularity of HFT. I estimate that high-frequency trading was responsible for about 78% of the dollar trading volume in 2009, up from near zero in 1995. This surge naturally raises concerns regarding the beneficial or harmful effects of HFT for U.S. capital markets.

What the Fed has figured out is that if you can influence the the heavy lifting and that you are capable, through HFT purchasing of the US Dollar or Japanese Yen, you are capable of moving the Volatility Index up or down. When you understand that formula and you are capable of controlling it, or other indices, by simply making statements at strategic points-in-time, upon fiduciary issues you want to impact, well it is a Holy Grail of an artificial economy that exists only in algorithmic wet dreams. And why do I say that? There are no other data points, other than the Market itself, used to execute the arbitrary and capricious actions which the Fed is gambling will work.

We are overdue for another mathematical correction. The Market, which will correct by thousands of points, is immaterial. Our problem is that we can no longer control the economy by and through interest rate adjustments. Quantitative Easing (QE) aside — and that was simply a feeding frenzy for everyone but Main Street — the Fed is poised to begin to dump its nearly $4.5 Trillion balance sheet. The Fed will do this while, simultaneously, refusing to repurchase Treasury Notes to some extent. Toss that upon the Bubble which has become the Real Estate Sector, and Q3 2017 begins to make sense. Moreover, though, a close examination of what is known as the Velocity of Money which even Asher Edelman, the real life Gordon Gekko, states is say 5% for the top 1% and 100 – 110% for the bottom 80%, it should be terrifying. Here, let me put it in Edelman’s own words,

Consider two individuals, one earning $35,000 per year and one earning $350,000 per year. Give an additional $2500 to either of these individuals, it’s easy to understand why the $35,000 earner would be far more likely to spend that $2500, while the $350,000 would be far more likely to save that $2500. Lower income individual has a far higher propensity to consume with additional monies received.
Further, consider the impact of giving $2500 back to taxpayers through either (1) $2500 in food stamps to those earning a low income or (2) $2500 in a tax cut to a very rich person. Common sense shows us that the $2500 in food stamps is very likely to be spent, specifically at grocery stores or other businesses where the economic multiplier will be high, thus stimulating the economy. On the other hand, the rich person receiving $2500 back in taxes is likely to save that money, an action with a very low economic multiplier.

With the vast majority of NAMFS Offender Members unable to even recruit in their own backyards, no one is prepared to deal with the next tsunami of Fed created madness already washing up on shore in the form of CitiGroup overextended derivatives. This is how it is put by Risk Magazine, whom said Citi is the Derivatives House of the Year,

When we need to trade, two or three banks will be there. Of those, Citi is number one because of its consistency. Others, if they don’t have an axe or a clear way of getting out, will give a ‘fuck-you’ price,” he says.

Citi’s global head of G10 rates, Andy Morton, might not have used the same words, but he appreciates the sentiment.

“It’s definitely part of our strategy. A trader at Citi is there to make prices for clients, period. It doesn’t have to be mid, it doesn’t have to be an awesome price, but any time you give a bad price you’re harming the franchise,” he says.

And if you think that this will bode well for Minority Females and Labor whom are currently starving like Somali Refugees; if you think that an enormity of work flooding in is going to turn the tide, you are sadly mistaken. You see, over the past decade, NAMFS Offender Members have learned to create mechanisms for generating illicit, line item, earnings. We commonly refer to this as chargebacks. When I got into the Industry, nearly a decade ago, if you came to me and wanted to steal $10,000 for a blurry photo which had NOTHING to do with the work being done, I would have loaded up in my truck and confronted you face-to-face. And that happened on more than one occasion. And I was paid. Today, though, sophisticated schemes abound and Eric Miller, the NAMFS Executive Director whom is paid over $122K per year, consuming over seventy five percent of all NAMFS Member Dues, keeps the National Order Mills protected as he fears no reprisals in the Court of Public Opinion which we discussed last week.

Foreclosurepedia has supported Minority Females and Labor for nearly a decade now. And I am going to tell you this: You do not want to get caught up in the Short Sale of the Century with a Margin Call in your hand. If Foreclosurepedia is not representing you; if you are not a Member of the International Association of Field Service Technicians (IAFST), you are going to be experiencing the Velocity of Money in a manner in which the only neon sign you will see is that of the Jesus Saves looming into view from the windshield of your rented U Haul.

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Paul Williams
Linux addict buried deep in the mountains of East Tennessee.



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