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Why you should prepare for a New Wall Street Order

By : Ziad K. Abdelnour| 6 September 2011
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The Wall Street “Masters of the Universe” are soon to be old history folks.

The chickens are indeed coming home to roost, the Global Banking Cartel’s crimes are being exposed left & right… Prepare for my upcoming book “Economic Warfare” due in December of this year which will trigger it all.

To start with, the Federal Housing Finance Agency (FHFA), filed last week a $196 Billion Lawsuit against 17 financial institutions, certain of their officers and various unaffiliated lead underwriters. The suits allege violations of federal securities laws and common law in the sale of residential private-label mortgage-backed securities (PLS) to the Enterprises.

Bank of America is severely exposed on this lawsuit. As the parent company of Countrywide and Merrill Lynch they are on the hook for $57.4 billion. JP Morgan is next in the line of fire with $33 billion. And many death spiraling European banks are facing billions in losses as well.

These complaints were filed in federal or state court in New York or the federal court in Connecticut. The complaints seek damages and civil penalties under the Securities Act of 1933, similar in content to the complaint FHFA filed against UBS Americas, Inc. on July 27, 2011. In addition, each complaint seeks compensatory damages for negligent misrepresentation. Certain complaints also allege state securities law violations or common law fraud.

And the suits just keep coming…

U.S. securities regulators have also taken the unprecedented step of asking high-frequency trading firms to hand over the details of their trading strategies, and in some cases, their secret computer codes. The requests for proprietary code and algorithm parameters by the Financial Industry Regulatory Authority (FINRA), a Wall Street brokerage regulator, are part of investigations into suspicious market activity.

Bottom Line:

Reality is catching up fast with the market riggers (Fed, ECB, PPT, CIA) and the “too big to fail” banks are getting whacked. Trillions of dollars in bailouts and legalized (FASB) accounting fraud cannot save these insolvent zombie banks any longer. The Grim Reaper is on the horizon and his sickle will do what paid off politicians won’t, cut them down to size….basically what I have been proposing all along and from Day One this crisis started.

What about Warren Buffet? He saved Goldman Sachs with a bailout in 2008. Can he save Bank of America?…

I personally believe Warren’s bailout will help BofA over the short run, but $5 billion is just a drop in the bucket when it comes to their problems. The only thing his $5 billion will accomplish is a temporary run up in stock value so everyone who has been killed on the plummeting stock price can then jump out without complete loss….

What about Goldman Sachs now that the golden goose’s CEO is facing a new lawsuit?

Well, Goldman just tanked in minutes before the close after news that Lloyd Blankfein hired a lawyer famous for defending vilified execs. It’s back up a bit since dropping over 5%, but the news is still concerning.

It’s unclear whether the lawyer is for him, Goldman Sachs, or both, but Goldman Sachs’s CEO Lloyd Blankfein hired Reid Weingarten, a high profile defense attorney

Reuters says the hire might have something to do with accusations of Blankfein’s committing perjury. Or something else…..One former federal prosecutor, who was not authorized to speak publicly, said Blankfein may have hired outside counsel after receiving a request from investigators for documents or other information. Go figure.

Speaking of hiring lawyers…

A former senior analyst at Moody’s has gone public with his story of how one of the country’s most important rating agencies is corrupted to the core.

The analyst, William J. Harrington, worked for Moody’s for 11 years, from 1999 until his resignation last year.

From 2006 to 2010, Harrington was a Senior Vice President in the derivative products group, which was responsible for producing many of the disastrous ratings Moody’s issued during the housing bubble.

Harrington has made his story public in the form of a 78-page “comment” to the SEC’s proposed rules about rating agency reform….

Here are some key points:

* Moody’s ratings often do not reflect its analysts’ private conclusions. Instead, rating committees privately conclude that certain securities deserve certain ratings–but then vote with management to give the securities the higher ratings that issuer clients want.
* Moody’s management and “compliance” officers do everything possible to make issuer clients happy–and they view analysts who do not do the same as “troublesome.” Management employs a variety of tactics to transform these troublesome analysts into “pliant corporate citizens” who have Moody’s best interests at heart.
* Moody’s product managers participate in–and vote on–ratings decisions. These product managers are the same people who are directly responsible for keeping clients happy and growing Moody’s business.
* At least one senior executive lied under oath at the hearings into rating agency conduct. Another executive, who Harrington says exemplified management’s emphasis on giving issuers what they wanted, skipped the hearings altogether.

What about the SEC?

An explosive new report brought by political reporter Mke Taibbi from Rolling Stone magazine recently exposed how the U.S. Securities and Exchange Commission destroyed records of thousands of investigations, whitewashing the files of some of the nation’s largest banks and hedge funds, including AIG, Wells Fargo, Lehman Brothers, Goldman Sachs, Bank of America and top Wall Street broker Bernard Madoff. Last week, Republican Sen. Chuck Grassley of Iowa said an agency whistleblower had sent him a letter detailing the unlawful destruction of records detailing more than 9,000 information investigations.

Where will this end?

Are The Federal Reserve’s Crimes Still Too Big To Comprehend?

Another day, another trillion plus in secret Federal Reserve “bailouts” revealed. Bloomberg News exposes this latest Fed “deal” after winning a long Freedom of Information Act (FOIA) legal battle to get the details on what was done with the American people’s money. Their report runs with the headline: “Wall Street Aristocracy Got $1.2 Trillion From Fed.” http://www.bloomberg.com/news/2011-08-21/wall-street-aristocracy-got-1-2-trillion-in-fed-s-secret-loans.html

The aristocracy is alive and well… thanks to the Fed, of course.

Keep in mind, this $1.2 trillion is in addition to the $16 trillion the Government Accountability Office (GAO) audit revealed and the over $2 trillion in Quantitative Easing the Fed dished out, not to mention the now continued promise of the Zero Interest Rate Policy (ZIRP). This is also separate from the $700 billion TARP program that Congress approved. This is yet another unknown secret program, throwing another mere $1.2 trillion in public money at the Wall Street elite (global banking cartel), just being revealed now.

Let’s also keep in mind that the Federal Reserve has known about all of this criminal activity from the start. Yet, they have done everything they could, and are still trying, to keep this criminal operation up and running. As all these criminal banks begin to blow up, let’s not forget who their central bank is and what they have done to the American people.

I guess you shall reap what you sow….. Don’t want to keep saying I told you so; you’ve been warned.

Your feedback is as always greatly appreciated.

Thanks much for your consideration.



  1. Pingback: The Activist Investor: A True Ally of Corporate Governance | Ziad K Abdelnour – Secrets of Wealth Creation in the Age of Welfare Politics

  2. StevenSteven

    Excellent post Ziad though, aside from the details, no surprises. The collapse of the financial institutions that have quite literally deceived and stolen from the vast majority of the public is long overdue. There is no ‘old world’ financial institution that is without knowledge, action or guilt. In regard to Abe’s question about who will be Sheriff to enforce the new order (and let’s hope that’s not a deliberate omission of the word World), there isn’t anyone in the current system who could be trusted to, as almost everyone at the top and a long way down (and I’m open to real suggestions as to who isn’t), is guilty by action or association. I can already hear the cries of ‘We were only following orders!’ Get real! Shades of post WWII Germans following atrocities against the Jews. I for one believe that peer to peer finance is going to grow inexorably though I’m sure very few people in the current system would want to consider it and will almost certainly laugh at the idea. But then the world is changing, not just the financial world, the whole world, from climate change, to people taking personal responsibility we are already in a new age and it won’t work for old world thinkers. They’ve been thinking they’ve got the flu and they’ll be over it soon. Well they’ve got cancer. it’s inoperable and it’s terminal. Wall Street will have to be renamed Floor Street because that is where it will languish. Ground Zero of a whole other type.

  3. Yusuf AbdrahmanYusuf Abdrahman

    Very interesting comment on our current economic affairs, and very scary as well. I can’t imagine that untold billions have lined the pockets of select high echelon corporate gangsters for decades unnoticed. Did the feds not see this coming? They’ve dealt and played their cards to the brink of break with no remorse whatsoever. “I got mine, too bad if you missed out…” seems to be the modis operandi. It doesn’t seem that many will escape the hangman’s noose this time around, the damage has been done and the villians are openly “branded”. “Who will be first up? What makes this nation great is that “no one is above the law” and justice will prevail.

  4. Paul B. SilvermanPaul B. Silverman

    Ziad Excellent insightful perspective – thanks for sharing and I also look forward to your book. I am also pleased to share my comments. We have significant ‘clean up’ to do as you suggest and agree on the new world order. Today’s European banking issues look like more ‘tips of the iceberg’ of many of the issues you cited in your posting. To help us move forward and provide an economic ‘uplift’, I do believe that a national commitment focusing on emerging entrepreneurial firms can and should play a role here. We look at best practices pursued in many countries committed to helping their emerging business sector and see the economic growth results. I believe our comparable efforts deserve a failing grade and this impedes our economic growth. The numbers tell the real truth and I believe provide insights into where we can find our economic growth ‘lifeboat’ as we work towards a new world order. Here is my view: • Most new jobs in the business sector are created by major corporations. False. Most new jobs are created by entrepreneurial companies that have less than 500 employees- that is a historical fact. SBA statistics show that during the past 15 years, firms with less than 500 employees accounted for 64 percent of net new hires in the U.S. and pay 44 percent of the U.S. private payroll. Exact percentages may vary year to year but these are the facts. • Most technology innovation is driven by R&D within major corporations. False. Smaller, entrepreneurial firms really provide the rocket fuel driving our technology innovation engine. SBA statistics show small firms produce 13 times more patents per employee than large patenting firms; and these patents are twice as likely as large firm patents to be among the one percent most cited. • Most U.S. trade is driven by major corporations. True and False Major corporations do account for the bulk of U.S. exports, representing 71.1 percent of total exports in 2006. But of the total number of firms exporting goods and services, 97.3 percent of the total were entrepreneurial firms with less than 500 employees. And in 2006, the entrepreneurial firms with less than 500 employees accounted for 28.9 percent of the total $910.5 billion in U.S. exports. The above is counter-intuitive to many and I find not mentioned often in the media. Entrepreneurial, smaller firms are really fueling our nation’s job creation and economic growth. Many nations – China, India and even Canada among many others understand these numbers but we have been slow to respond and are paying a price. Let’s propose and implement new policies that help drive growth of emerging entrepreneurial firms- that will drive economic growth and maybe help shape our new world order. I may be more passionate than most about the economic leverage and value creation that entrepreneurial-driven policies provide. I do have vision here which I am discussing in many forums. Comments welcomed.

  5. Roger AKLRoger AKL

    Very interesting article Ziad. But like Abe Iskandar said:who is going to be the sheriff in a country where the military-industrial and banking complex has taken the power, by controling the elections with the media it owns. Who, among our politicians will dare to contradict their interests. It needs a complete change of all the system. It needs perhaps an “American Spring”.

  6. Valerie BramsonValerie Bramson

    Greetings Ziad, Your article states it all…I recall my own then Jack ass bosses at Bache, Chemical Bank, Manny Hanny,.. and several other Banking giants, yes they were BIG. So, as these people have driven this great world power into financial ruins, corrupted fed reserve systems, brought zero sum economy into play in all sectors. l’m looking for a job anything, including as a Janitor. IF YOU or any one you know is hiring ANY level, PLEASE let me know. I WILL RE-locate at my own expense. Regards, Valerie

  7. Abe InkidarAbe Inkidar

    The feds and its agencies have been very tactful and careful about exposing the various crimes you describe in your post, and I suspect they will keep doing the same. A new order is not only needed, but must be created at all costs, otherwise, this wonderful country will keep on drowning in its self destructive world of greed and hypocrisy. Wall Street has lost its morals and values with the encouragement of the Federal Reserve and the SEC, which are corrupt to the core. The Federal Reserve has done nothing but serve the interests of the banking cartel since its creation. The big question: who is the Sheriff who is going to impose and enforce this badly needed new order?

  8. Khodor ZaidanKhodor Zaidan

    Very interesting article Ziad, I look forward to readng your book in December, it seems like 2012 will be a very intersting and scary year for most global financial markets.

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