Village of Hempstead closes Chase bank accounts as protest

[FrmlyBklyn]

Originally Posted by MikeyKid

"Assets" lol

What like all their silver shorts?

Maybe to Jamie Diamond and Blythe Masters that's a drop in the bucket. However, that's a whole bunch of money for anyone and you can bet your lunch that the retail banking managers will be answering to their managers on this. It's a trend they don't want to see develop because JPM could very easily get themselves back into a liquidity trap should PMs continue to rise.

Liquidity trap, ha! A firm that makes that much in a lunch hour? - thanks for the laugh.

Chase Real life - Phone picked up, dialed to NY Fed.
NY Fed - Hello? What? you want to sell $12.5MM par value in U.S. Treasury securities and have the proceeds placed into your reserve account. Please hold for confirmation.
NY Fed - You sold $12.5MM par value in U.S. Treasury Bills paying 0.01% at a price of 100.48 due April 30, 2011. Proceeds to be placed in your reserve account upon settlement.
The Fed thanks you for your transaction and repeated loyalty. Have a nice day.

Chase - Sold US Treasuries at a premium, book gain on sale of assets, debit cash, credit US Treasuries account. Wow, what a day, let's go out and celebrate. Some sucka paid a premium for negative amortization securities - imagine paying the government (umm, i mean us) to take their money! Good riddance to those pia's at Hempstead..

Liquidity trap, hahahahaahahah!!!

[MikeyKid]

Originally Posted by FrmlyBklyn

Liquidity trap, ha! A firm that makes that much in a lunch hour? - thanks for the laugh.

Chase Real life - Phone picked up, dialed to NY Fed.
NY Fed - Hello? What? you want to sell $12.5MM par value in U.S. Treasury securities and have the proceeds placed into your reserve account. Please hold for confirmation.
NY Fed - You sold $12.5MM par value in U.S. Treasury Bills paying 0.01% at a price of 100.48 due April 30, 2011. Proceeds to be placed in your reserve account upon settlement.
The Fed thanks you for your transaction and repeated loyalty. Have a nice day.

Chase - Sold US Treasuries at a premium, book gain on sale of assets, debit cash, credit US Treasuries account. Wow, what a day, let's go out and celebrate. Some sucka paid a premium for negative amortization securities - imagine paying the government (umm, i mean us) to take their money! Good riddance to those pia's at Hempstead..

Liquidity trap, hahahahaahahah!!!

That comment wasn't specific to this amount - their liquidity trap is related to all the shorts they have in silver vs. margin calls. They don't have any assets as you called it. They just have paper and if enough of it is called in while PMs rise and the dollar declines, that call to the Fed is a joke... Sure didn't help Lehman, WAMU, et al.

But lets not confuse everyone with the bank's prop desk. For specific accounts like this, the numbers regionally are watched very closely. My b-in-law works in the retail banking sector... people get fired for losing big accounts like this.

[FrmlyBklyn]

Originally Posted by MikeyKid

That comment wasn't specific to this amount - their liquidity trap is related to all the shorts they have in silver vs. margin calls. They don't have any assets as you called it. They just have paper and if enough of it is called in while PMs rise and the dollar declines, that call to the Fed is a joke... Sure didn't help Lehman, WAMU, et al.

But lets not confuse everyone with the bank's prop desk. For specific accounts like this, the numbers regionally are watched very closely. My b-in-law works in the retail banking sector... people get fired for losing big accounts like this.

As for point one - not sure how their prop desk is legally set up - it may be separate from the regulated bank. In fact, I suspect it might be, only because it would run afoul of the Dodd Frank regulation and the Volcker rule. There has to be sufficient capital available to support such trading - it's not trading naked.

Agreed on point two. Someone's grass.

[NYEconomist]

Originally Posted by Gpsma

You're delusional to believe that banks decided that this was the way to make some money. Like no one in the banking industry could have figured that out 20 or 30 years ago and, all of a sudden, the decided to issue bad loans. They were forced by the Dems to lower their standards and give mortgages out to any crackhead who wanted to buy a new drug den...after all, those are Barney Franks best constituents. Banks finally had to sell off that bad debt to remain solvent.

Hope that gives you a better perspective of the situation.

The financial meltdown had a lot of variables that went wrong. From the traders dumping toxic firm owned mortgage backed securities on their own clients to mortgage brokers convincing people that signing a 5/1 ARM is the best option because it pay's the broker the highest commission. Everyone in the system was at fault.

It started with the knockdown of Glass-Steagall and went from there. The banks wanted more and more profits and loved their stocks increasing by 14% year over year and were more than happy to lend out to anyone with a pulse during those times. The regulations handed down by Clinton weren't any help in the matter, but nobody told them to leverage 30 to 1 and securitize the junk level debt with a AAA bank and advertise the bonds as AAA bonds.

It was a perfect storm like the Titanic sinking that had no shortage of negligence right down to the pushy realtors trying to convince a first time buyer that their 50k salary could only go up and that a 3k/month interest only mortgage would be fine because they would make so much equity in the home that the house would be worth double it's current value in 4 years. Because real estate always goes up (when it's not flat the other 98% of the time).

[MikeyKid]

I would imagine Chase cares about this... lol

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