POTENTIALLY EXPLOSIVE INSIDE NEWS -- $170B JPM FRAUD
the same guy Joe in my apartment complex spoke with me again tonight about inside explosive news about a massive accounting fraud by JPMorgan
I pressed him for veracity of the source, like where he works
Joe said his friend Frank is an old college friend, whom he is in contact with 1-2 times per week
he said Frank works in the "same general business as JPMorgan"
I asked Citibank? no.. Morgan Stanley? no.. Goldman Sachs? no.. a major bank? no
Joe said "no, officially it is a govt business, but they are deeply involved in the mortgage finance business"
I asked FannyMae? and he smiled and said "cannot say" while nodding
so either Fanny or Freddie, I figure
word is flying around the NYC finance houses about this, impossible to contain, with investigations widening weekly
Frank tells him the noose is tightening bigtime on JPMorgan and the CFO will be doing jailtime by next year... the US Attorney General and NY Atty Genl are each well along in the investigation of $170 billion in improperly reported Q3 interest payments on three big loans...
WorldCom, Argentina, Russia
they all went bad, but JPM reported them as "performing loans" with fraudulent intent... the AG's are busy now "closing the dozen doors" that will demonstrate fraud and criminal intent... they want to be certain that JPM did not simply transfer the loans over to the London office or some thin offshore subsidiary... they are making progress eliminating these possibilities... the critical first criminal step was not listing these loans as "non-performing"
the misstatement makes WorldCom's $4B in improper statement look, well, pretty effing tiny... I asked about the impact to earnings, and Joe told me he heard around $60-70 billion in losses
I asked about why this is not out in the news, in the open... Joe said AG's must shut the doors, tighten the nose, be certain of the criminal actions
I asked about timing... Joe was told by Frank at FannyMae? that the prosecution steps begin in the first December week... I asked "around Pearl Harbor Day?"... he laughed, saying JPM is going to jail and this will blow wide open, that JPM is dead in the water... Frank claims actual revelation to the public and news media will take place around Christmas or immediately afterwards
I asked how we can observe definitive confirming signals from afar... Joe said "mass resignations, which have begun, but which will pick up in a big way"
Joe works in an international industrial pump/value company, and fully trusts his friend Frank in NYCity... back in July, I mentioned this Frank as confirming almost daily shipments by truck of Federal Reserve Gold out of the NYCity site, for the purpose of satisfying JPMorgan gold sales
so there you have it, MASSIVE $170B FRAUD CONCEALING $60B IN LOSSES, which will break within 75 days!!!
we will see
Joe said "100% certain this is unfolding, going to be death for JPMorgan, absolute death, with numerous indictments coming down, starting with that CFO"
too big to fail?
how about too big to bail?
certainly too big to protect from prosecution
Elliot Spitzer will dog them for sure
dunno about AttyGenl Ashcroft
gold should get a little lift by Christmas, eh
and we havent touched on Brazil yet
/ jim
p.s. Notre Dame sucks |
