EU Solvency II Regulations Drives Crooks To Swiss Protection

ΩΩThe Solvency II laws passed by the EU in 2008 and which are supposed to begin this winter are causing the remaining pirates in the EU to flee to Switzerland, top headquarters for all banking gnomes.  The AIG bail out is riddled with crimes, frauds and schemes and we should arrest everyone involved and especially the heads of Goldman Sachs and JP Morgan.  This might fix what ails the Federal Reserve, aside from auditing it. But a corrupt Congress blew it again and refused to properly regulate anyone who is a banking crook.  Much less, stop all those pirate coves.

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In U.S. Bailout of A.I.G., Forgiveness for Big Banks – NYTimes.com

Unknown outside of a few Wall Street legal departments, the A.I.G. waiver was released last month by the House Committee on Oversight and Government Reform amid 250,000 pages of largely undisclosed documents. The documents, reviewed by The New York Times, provide the most comprehensive public record of how the Federal Reserve Bank of New York and the Treasury Department orchestrated one of the biggest corporate bailouts in history.

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The NYT is pretty good when it comes to getting a hold of and then analyzing specific data.  The meta-analysis tends to drift off into fantasy but the number crunching up front is usually very good.  That is, the reporters they have now such as Morgenstern tend to focus very much on the hard data which is very useful.

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By the way, this is why I rely on the NYT or Bloomberg News for raw information.  There has been a growing ‘mainstream media always lies’ belief system online which is not true at all.  The mainstream DOES lie when it comes to certain core issues such as anything touching on Zionism, for example.  But no media is always honest, truthful or correct.  And some media outlets much beloved by many readers are exactly the ones with the worst track records in honesty or real information, whether mainstream or ‘alternative’.

.I see this in news about medical matters: lots and lots of lying by EVERYONE all over the place, it is rampant at this point.  Figuring out the differences is a challenge and this means not being doctrinaire but rather, open minded.  There are many cultures here that smother the brain in pre-set beliefs that are rock hard.  I try to avoid this.

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The documents also indicate that regulators ignored recommendations from their own advisers to force the banks to accept losses on their A.I.G. deals and instead paid the banks in full for the contracts. That decision, say critics of the A.I.G. bailout, has cost taxpayers billions of extra dollars in payments to the banks. It also contrasts with the hard line the White House took in 2008 when it forced Chrysler’s lenders to take losses when the government bailed out the auto giant.

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Something the NYT never examines is why we attack our own auto manufacturing business while protecting the Japanese and Germans who have decimated our markets and are responsible for a huge hunk of our trade deficit.  Germany and Japan ALWAYS protect or bail out their own auto industries whenever possible.  Why don’t we?  A question the Times should explore, HAHAHA.  But this means attacking the concept of ‘free trade’ something the Times never allows.

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As a Congressional commission convenes hearings Wednesday exploring the A.I.G. bailout and Goldman’s relationship with the insurer, analysts say that the documents suggest that regulators were overly punitive toward A.I.G. and overly forgiving of banks during the bailout — signified, they say, by the fact that the legal waiver undermined A.I.G. and its shareholders’ ability to recover damages.

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ΩΩWe know already why Goldman Sachs was protected: they own our government and even more importantly, they own the Federal Reserve.  All the biggest holders of the Derivatives Beast are incidentally, the same people who were saved by our government, getting 100% return on these trillions in stupid off the books swap deals with AIG.   Since this mess originated in the Derivative Swap Markets, this means we must drain this swamp since we now basically own it via owning AIG and thus, end this farce once and forever.  No more default swap swamps!

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ΩΩAlas, we now own the swamp and have to feed our children to the crocodiles living there.  These crocodiles are all guys hanging out at the JP Morgan, Citigroup and Goldman Sachs towers in lower Manhattan.  The easiest way to rid ourselves of these creatures is to go in there and arrest them all for treason: they destroyed our economy!  What is more treasonous than that????  Sometimes we have to punish those people, even if they are doing ‘legal’ things, if they corrupt our government in order to legalize fraud, deception and criminal negligence.

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ΩΩGoldman Sachs Shorted 1% of its Mortgage Bonds, CDOs, Cohn Says – Bloomberg.com: This is today’s example of the way GS finesses their crimes: ‘But we only cheated people SOME of the time!’ is a crummy excuse for obvious criminal actions.  If someone steals only one of my cars, it is still theft.  If they break into my house and steal only my jewelry, this is still theft!  And totally illegal.  And if a crook cried to the cop, ‘I only took a handful of diamonds, not everything in the house!’ they still go to jail!  Duh!  This GS theft was due to rot way up at the top: make money no matter how crooked the scheme ruled the GS roost.

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ΩΩForeclosed Homes in U.S. Sell at 27% Discount as Distressed Supply Grows: the housing mess continues and as I said way back in 2006, all previous housing bubbles that crashed throughout history always take at least 20 years to complete the cycle of destruction and finally resume normal growth except when entire cultures collapse.  For example, Roman real estate in 360 AD didn’t recover in value for about 1,300 years.  Much of the real estate ended up totally destroyed and this, without modern bombs.  All done by hand.

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ΩΩCommodity Slump Means Worst Quarter in Year on Growth Outlook – Bloomberg.com:  Like all Great Depressions, this one involves a gold rush as well as a double dip collapse.  The same cures are tried over and over again and they seem briefly to work and then they fail.  This is due to a form of economic gravity at work: that which grows very big, when it falls, it  has to fall all the way down to nothingness before it can finish falling.  So, the entire real estate bubble in the G8 nations and others must collapse to a very low level before any sort of recovery can begin.  The Great Depression’s housing stock fell into a very deep hole called ‘WWII’ and this hole featured fixing excess housing values by bombing entire cities and destroying nearly all the housing, in some cases, ALL of it.

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ΩΩThis is the danger of all credit bubbles: often, fixing these involves world wars.  The US is itching for wars after destroying the housing in Iraq and Afghanistan and Israel is always a busy bee, destroying people’s homes all over the place, too.  But outside of the WTC complex, there hasn’t been sufficient bombing of the big bubble economies which continue to be plagued by too much housing for the markets to keep up inflated values.

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ΩΩThis is why I fear wars during economic stress times: the logical need, the psychological impulse to fix a housing excess via bombing cities is tremendous and shouldn’t be underestimated.

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ΩΩBack to AIG and insurance: all insurance is destroyed during wars.  So no one insures for war damage.  Right now, insurance depends on ‘reinsurers’ who are basically the…HAHAHA….the…the…DERIVATIVES BEAST!  Yes, this monster is what is insuring everything, doing it on the ‘cheap’.  That is, pretending to insure while having zero capital to back up insurance bets.  When these are exposed to failure, the reinsurers simply use their political connections to get whole governments to pay up for them.  Sheesh.  Arrest them all. Anyway, Europe seems interested in making this fraud more honest and are failing because it is impossible to regulate this market for fake insurance because of…of…of…PIRATE ISLANDS and of course, the old game players, the super-gnomes of Switzerland:

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Zurich Lures Reinsurers Betting Rules to Drive Demand (Update1) – Bloomberg.com

Catlin, owner of the largest insurance unit at Lloyd’s of London, plans to form a wholly-owned unit in Switzerland, the firm said yesterday. The number of reinsurers in Zurich has doubled to 31 since 2006, before the European Commission adopted the Solvency II proposal, data from New Reinsurance Co. show. The new directive is designed to align insurers’ risks with the capital they hold to ensure clients’ claims are covered.

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Just as the BIS rules for over the counter derivatives markets caused a crisis as all the rats ran off and all the stupid fake bets suddenly began to unwind rapidly, so it is with the EU Solvency II rules: this was one of the many obscure triggers of the global financial panic that suddenly began in August, 2008.

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Nothing in the insurance market was honest back then.  There was NO CAPITAL to cover ANY losses at all!  It was all a mirage, a delusion, a $600 trillion con game.  When international governments tried to restrain this mess, it couldn’t be saved, this was and still is impossible.  It simply vanished.  Only, it didn’t vanish!

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IT WAS PROPPED UP BY GOVERNMENTS!  This is why Europe and the US are now flying down the slope to bankruptcy.  Attempts by central banks to keep this derivative mess afloat failed.  All it did was pile more dead weight on taxpayers and caused the collapse of government finances.  To top it all off, the final insult: these entities saved by governments at greatest expense mostly are international PIRATES!!! Who don’t pay taxes!  Sheesh.

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“The thinking appears to be that it pays to be on the ground as European primaries are looking for new reinsurance carriers driven by Solvency II,” said Hamish Chalmers, a London-based analyst with Macquarie Group Ltd.

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The planned regulation, which is due to come into effect by 2013, is likely to force insurers to raise the amount of capital they hold against liabilities. Some forms of reinsurance will be accepted as a potential alternative source of capital. Reinsurers also say they are choosing Zurich over other European locations in part because Switzerland has attractive tax rates. Catlin’s new unit will allow the reinsurer to benefit from “opportunities created as the result of the forthcoming Solvency II regulatory regime,” it said in a statement yesterday. The holding company will remain in Bermuda.

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ΩΩHAHAHA.  So, this ‘new unit’ in Switzerland will work with the company headquarters in Bermuda…I posted a satellite photo of downtown ‘Bermuda’ the other day, it is a collection of rather small, unassuming offices…HAHAHA….these pirates actually hang out in NY, London, Hong Kong, etc.  Places with huge sky scrapers, not this cute but very isolated island.

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ΩΩThe rats will all flee to Zurich and then stick out their tongues at huge swaths of humanity who are being ruthlessly hammered by this economic mess created by these self-same crooks.  Zurich should watch out: there may arise various leaders in key states willing to close down all commerce with Switzerland and isolate it so they can’t do this sort of crooked stuff.  The chances of this happening in the next 20 years is extremely high.

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ΩΩOut of sheer curiosity, I went to the official EU Solvency 2  site- EMB – News

What is Solvency 2?

• The biggest ever exercise in bringing together insurers and reinsurers under one regulatory regime
• In 2012, all EU/EEA countries will be united by a single set of rules governing what constitutes an acceptable level of insurer creditworthiness

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Well, this has been a total failure.  Switzerland is very much part of Europe, dead center!  But evades all rules and enables all crappy business systems.  So the rest of the EU has to face this fact and figure out the obvious: just as the US and even the English people (not the royals) attack and take control of the British Crown Protectorates and thus, stop them from being bank tax havens, so does Europe have to do this to Switzerland.  There is no alternative game.  Give it up or stop the Swiss.  End of story.

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Aims:

• To deepen integration insurance market
• To protect policyholders and beneficiaries
• To improve the international competitiveness
• To promote better regulation
• Overcome inadequacies of Solvency I

How:

• By harmonising Solvency II rules
• Aligning capital requirements to each company’s risk profile
• Emphasis on ERM
• Establishing an integrated risk-based approach to supervision

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Every one of these objectives is totally against the interests of the big international hedge funds/investment banks.  So they won’t do a single one of these things.

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Key Features

• Principles based
• Risk based
• Entities calculate their own individual solvency capital requirement taking into account the risks they face
• Involves a cultural change to the way (re)insurers do business
• Prescribes changes in corporate governance, risk quantification and management, and financial reporting
• Capital requirements can be assessed using either an internal model or a standard formula
• Framework in place for supervision of insurance groups in each case by a ‘lead regulator’

ΩΩNow, off to the US to see the total failure to stop the Derivatives Beast and stop the army of lunatic gnomes who are systematically looting our country, destroying our banking and insurance systems and bankrupting our government:  Volcker Said to Be Disappointed With Final Version of His Rule – Bloomberg.com

As first envisioned, the Volcker rule would have banned banks from running private-equity and hedge funds, an attempt to curb risk-taking that fueled the financial crisis. Last-minute congressional negotiations aimed at winning Republican support led to a compromise that allows banks to invest up to 3 percent of their capital in such funds.

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Volcker, the 82-year-old former Federal Reserve chairman, didn’t expect the proposal to be diluted so much, said a person with knowledge of his views. He’s content with language that bans banks from trading with their own capital, the person said.

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ΩΩVolcker tried his best but how can he stop an army of lobbyists working with a heavily interconnected system whereby they control our Treasury, our Federal Reserve and our government?  They want some open door to the Cave of Wealth and death which is where all the loot is: stealing stuff or making things out of thin air.  They are NOT capitalists, they are freebooters running through embargoes.  That is, they make the greatest profits, finding ways around regulations and laws and restrictions designed to prevent bubbles.  The best way around laws is to buy lawmakers and pay them to insure things don’t get regulated or fixed.

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Scrutiny of Goldman’s Board Focusing on Silence Over Conflicts – Bloomberg.com

Greg Palm, Goldman Sachs Group Inc. general counsel, took a call in his 37th-floor office at One New York Plaza on Dec. 16, 2008. It was his old boss, Stephen Friedman, a former Goldman chairman who was then head of the audit committee of its board of directors. Goldman’s stock was down 65 percent from its 52-week high during an accelerating global financial breakdown.

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Friedman, who had become chairman of the Federal Reserve Bank of New York that year, told Palm he wanted to buy, Bloomberg Markets magazine reports in its August issue….

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…Now, the U.S. House Oversight and Government Reform Committee is investigating Friedman’s stock purchases. It wants to know why he was permitted to buy stock in a bank he was regulating as chairman of the New York Fed.

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Friedman held both that post and his Goldman board seat when the firm became a bank holding company in September 2008. The Federal Reserve Act forbids an official at the New York Fed in his position from also being a director of a bank or buying its stock.

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ΩΩAnd there it is!  Mr. Friedman (a Tribe member, of course) wanted to get rich while regulating things so he switched sides and became a pirate.  Of course, this is not merely a conflict of interest, it is a crime.  A social crime.  His choice to become a crook endangered our entire society and led to a serious collapse.  Arrest him.   NO Goldman guy should EVER be allowed, FOR LIFE, to participate in any way, shape or form in any government or central bank.  Period.  Arrest all of them.

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Board of Directors – New York’s Main Office – Federal Reserve Bank of New York

CLASS A	elected by member banks to represent member banks

Richard L. Carrión (bio) 2010 Chief Executive Officer and Chairman Banco Popular de Puerto Rico

Charles V. Wait (bio) 2011 President, Chief Executive Officer and Chairman of the Board The Adirondack Trust Company

Jamie Dimon (bio) 2012 Chairman of the Board and Chief Executive Officer JPMorgan Chase

	CLASS B	elected by member banks to represent the public

Jeffrey R. Immelt (bio) 2011 Chairman and Chief Executive Officer General Electric Company

Jeffrey B. Kindler (bio) 2012 Chairman and Chief Executive Officer Pfizer

James S. Tisch (bio) 2010 President and Chief Executive Officer Loews Corporation

ΩΩSee:  the NY Fed is run by crooks.  One is guy who is situated on a small island in the Atlantic that isn’t even a ‘state’ here but is a US colony.  He has no sway in NYC and isn’t a member of the Tribe so no one really socializes with him in key watering points in NYC.  The next dude is another puppet: he lives upstate which may as well be Siberia and despite global warming, is still Siberian winter sub-zero territory.  The ONLY guy who matters in ‘Class A’ is a Tribal member who is the head of JP Morgan, a bunch of pirates for the last 150 years.  Yeesh.  No wonder our finances collapsed.  Then we have Class B which is a trio of Tribalists who are GE, Pfizer and a gambling house.  OUCH.  They see Dimon all the time and hob nob with him regularly on weekends, etc.

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