Powers Report - Unwinding OTC Derivatives
Steve,
Re: Regarding the "manipulation","inside knowledge cartel", or "they" etc. Do these people meet every day or just once a week? AND I noticed that a couple of the big banks (Chase, Citicorp) are taking huge losses on Enron. I guess "they" did not pay their "insider" dues that month,
Have you read the Powers Report?
i.cnn.net
Here is a mirror site:
nytimes.com
[[Hope you have a broadband connection, it's a 9.5Mb, 218 pages. <g> ]]
If you have read the report and followed the timeline available here:
nytimes.com
Then you will fully understand that from October until December 2, the day Enron placed itself into bankruptcy, that there was constant contact between Enron and its counterparties in the OTC derivatives trades. The main counterparties were, apparently, JP Morgan and Citibank. Both also has relationships with Enron as limited partners in the off shore frauds that CFO Andy Fastow created.
Were Enron to have declared bankruptcy at the date that Ken Lay announced the $1.2 Billion reduction in shareholder's equity, the counterparty exposure would have been measured in the $ (mid single digit, or more) Billions. By winding down the contracts for six weeks, the exposures have apparently been brought down to below the $1 Billion mark on immediate losses (though there is more to come). This was substantial and orchestrated collusion. And you can be absolutely certain that the Working Group on Financial Markets (you do know of them, don't you?) was also intimately involved in monitoring the wind-up.
Re: I view my style of trading as "running between the legs of the elephants".
As indeed you are.
-R. |
