TOO BIG FOR LAW
The Chicago Board of Trade’s Role in Corrupting
Courts Part III
Breaking News January 14, 2010
By Stew Webb
Behind the scenes of the
derivatives casino, a fearless whistle blower’s investigation into the “too big
to fail” gang’s Chicago syndicate style take down of the real economy.
In
part 3 of this report’s investigation we continue to chronicle the retaliation
against a Kansas attorney named Craig E. Collins for exposing a fundamental
legal problem in margin calls on the Chicago Board of Trade (CBOT) when he went
to defend his brother in Illinois federal courts.[i] The
legal argument that resulted in the retaliation against Collins inadvertently
exposed the problems being concealed in the $8 billion plan of the Chicago
Mercantile Exchange (CME) to purchase CBOT in July 2007 to become CME Group
Inc. CME was to have ridden to glory as the casino center[ii] of the
derivatives trading universe while at the same time reaping an instant return
to the former cooperative in a now failed scheme to create the world’s largest
Credit Default Swaps and derivatives marketplace.
A Deadly Chicago Collapse While Building the World’s Biggest
Derivative’s Casino
After
acquiring CBOT, the CME Group Inc.’s future was looking bright. The scheme unfolding
in 2005 at the high water mark of American consumers demand for products and
resources around the world during the roaring 2000’s seemed only to have to
overcome the trading partner’s reluctance to convert their partnership and
trading rights into stock. By 2007, the hold outs had been convinced and only a
comparatively small percentage of member equity was liquidated in the initial
public offering. CME's 5,000 members
received 25.9 million class A, or ownership, shares in CME Group Inc. and now shared
in the potential of CBOT and its partially created technology to trade in the
new developing financial products called derivatives and their attendant risk
hedging insurance policies, credit default swaps.
In
many ways the delays building a consensus among CME members to capitalize the
acquisition of CBOT threatened the ability to create a leadership position in
derivatives and credit default swaps trading. Any exposure of fundamental
problems with the way CBOT traded its existing contracts or allocated real cash
to back trading positions each day-the material facts supporting the legal
argument made by the Kansas Attorney Craig E. Collins that the CBOT contracts
had become unenforceable because of the way CBOT member trading firms routinely
did not meet trading margin requirements with their clients was seen as a
serious threat to bringing CME members into the merger to buy CBOT. This
serious primarily examines how government officials were enlisted to retaliate
against Craig E. Collins and the unintended consequences of that retaliation
while CME’s Craig Donohue sought to protect the plan to acquire CBOT and build
the derivatives and default swap (CDS) trading platform.
Despite
the willingness to use extraordinary means against any threat to exposing the
secret flaw in the expansion of CBOT into rapidly trading financial contracts
devoid of any physical commodity that could be seized for securing the outcome
of every trade, traditionally the ultimate underlying value of commodities
trading, the CME Group, Inc.’s IPO was poorly timed. By the time the IPO was
underwritten, the CME Group Inc. did not realistically have a chance to catch
up technologically with the electronic exchanges of its rivals. The lead was
never recovered and the CME members had their capital misspent falling farther
behind rivals such as Germany's Eurex, the world's largest futures exchange in
the CME’s traditional business.
The
CME trading platform is also technologically inferior to the Deutsche Boerse
AG's (DBOEF) derivatives unit Eurex. The CME Group has also been surpassed by
its American rival Intercontinental Exchange Inc. (ICE). Since launching its
service in March, ICE has cleared more than $2 trillion in CDS contracts. That
puts the Atlanta-based company far ahead of Frankfurt-based Eurex, which
launched a European platform in late July, and CME, which has yet to announce a
launch date as it works to secure support from dealer banks.[iii]
After squandering the IPO capitalization on several missteps in
developing the technology needed by CBOT to enter the Derivatives and CDS
trading markets, Wall Street (the East Coast Families in the American financial
underworld syndicate). Serious questions started being asked by the
institutions and hedge funds holding the CME Group Inc. paper.
Fearing being seen as a modern day Bugsy Segal burning money in cost
overruns for a casino that never seems to get finished,
History Note: Stew Webb Whistleblower ex in law Leonard Yale Millman who replaced Meyer
Lanksy as the American Jewish Mafia Crime Boss Hog Laundered Trillions of
Dollars of Illegal Narcotics and Weapons monies since the late 1940s for Meyer
Lansky, Carl Gambino, John Gotti and George H. W. Bush aka Iran-Contra. Millman
ratted out Bugsy Siegel to Meyer Lansky while Millman was acting as the
accountant for Meyer Lanskys building the Flamingo Hotel in Las Vegas, Nevada
which got Siegel killed in the late 1940s, Leonard Yale Millman replaced Bugsy
Siegel.
bank_bail_out_crooks_enemies_of_america.htm
Chief Executive Craig Donohue told analysts that the company was
"absolutely not" dependent upon the swaps business to
achieve high growth rates, emphasizing expectations for its core listed
derivatives business to recover as the global economic picture improves.
Chief Executive Craig Donohue seen here
channeling Bugsy Segal.
Craig Donohue survived being called on the carpet
by the East coast wing of the syndicate because the CME ‘s business model is
not that of a utility earning a small fee on every transaction like EUREX and
ICE. In the news behind the news Internet readers of StewWebb.com expect, it
can now be revealed that CME was building a proprietary trading platform
especially for the East coast wing of the syndicate, specifically Goldman Sachs
and JP Morgan Chase. The institutions were not going to bail before Craig
Donohue’s casino was built. Craig Donohue had the don of the real family in
charge of the East Coast JPMorgan Chase & Co. CEO Jamie Dimon by the balls:
Jamie Dimon and JPMorgan Chase have a whole lot of derivatives
and credit defaults they desperately need to swap. Naturally, that raises the
question in StewWebb.com reader’s minds; “ How many derivatives does JP Morgan
Chase have?” Luckily the “too big to fail” gang got a US Treasury rule
implemented so the TARP Banks don’t have to state their liabilities. This
reporter has had so many death threats from FBI Division 5 in Denver, Colorado
that he doesn’t want to get a late night call from the gang’s proven bank
killer Ben Bernanke who replaced Alan Greenspan as chair of the Federal Reserve
Board:
Suffice to
say that JPMorgan Chase has so many that they can’t take them to EUREX. The
European Union has largely furnished the suckers in the East Coast financial
fraud rackets. If those regulated institutions trading on EUREX ever had a
glimpse of the scope of the problem, the German Constitution would be changed
so that Chancellor Angela Merkel could drive her Leopards down the streets of
Manhattan.
StewWebb.com
readers have
JPMorgan Chase’s derivatives liability is so
serious that CEO Jamie Dimon can’t even let the Southside International
Exchange boys know how bad off JPMorgan Chase is. Jamie Dimon can’t go to ICE
or the East coast gang would be reduced to a farm club in the syndicate instead
of the major leaguer in the franchise. Craig Donohue took a page right out of
Bugsy Segal’s own play book and held Jamie Dimon hostage with the funds JP
Morgan institutions sunk into the CME.
In desperation, Jamie Dimon would later try to deny
to the financial press the obvious truth just the way Craig Donohue did when
Donahue denied CME’s future growth was dependant on selling derivatives and
credit default swaps. Jamie Dimon stated he did’t believe in the existence of
the “too big to fail gang”:
“Major banks shouldn’t be considered “too big to
fail” — regulators should have the power to close even the largest
institutions, said JPMorgan Chase & Co. CEO Jamie Dimon. (Denver Business
Journal)”[iv]
Lucifer’s greatest deception was convincing the
world Satan didn’t exist. StewWebb.com has frequently reported that the worldwide
exposure of the United States to the toxic derivatives allowed to be created
and fraudulently traded by US financial institutions with no law enforcement or
regulatory oversight is in the range of $600 Trillion Dollars.
The current financial crisis is just the first
small wave of derivatives coming due without the means to enforce the bargain
and without even residential home mortgages to secure them. Its just the
beginning folks!
How the
Biggest Debt Casino Was Designed For Everyone to Lose
Jamie Dimon and JPMorgan Chase needed the CME to
start trading derivatives and Credit Default Swaps. JP Morgan’s lieutenant
Goldman Sachs had already shelled out AIG and is only staying alive through the
proprietary trading of currency futures and corporate stocks-the so called
“flash trading” that keeps incredibly high transaction rates where Goldman
Sachs can enjoy an unfair advantage over its clients like the so called “front
running” of currency exchange where Goldman Sachs could illegally profit from acting
on the price change before Goldman Sachs’ customer obtained the data.
JPMorgan Chase had to create a market in
derivatives of America’s debt and also in the fraudulent insurance of
protection from the risks of default promised by Credit Default Swaps. And,
most of all, the trades had to be in a rigged casino favoring “the true parties
in interest” (like the Kansas attorney Craig E. Collins was describing in the
unenforceability of CBOT contracts) where law enforcement was bought off and
JPMorgan Chase could maintain its protection from government regulators. Craig
Donohue’s CME was supposed to be all that and more. A Las Vegas bigger than
even Bugsy Segal could dream.
The
commentator Max Keiser was slow to come around to the realize that what we are
experiencing is a criminal conspiracy and not the natural excesses of
unregulated anarcho-capitalism. Now Keiser has nailed the dark vision of men like Jamie Dimon, Craig Donohue, and CEO
of Goldman Sachs Group, Lloyd C. Blankfein in what Max Keiser calls the “Casino
Gulag” an economy of speculation, devoid of any productive wealth creation.
According to Keiser the Casino Gulag model works as follows:
“First, the huge debts incurred by consumers around
the world and most particularly in the US and UK will continue to increase in
size. The price of credit (interest rates) will never rise enough to change the
behavior of debt addicts plus, the Federal Government will, vis a vis the
ongoing bailouts and restructuring of the public and private markets, transfer
tens of trillions of dollars of unfunded pension and Medicare/Medicaid
liabilities – that are now hidden from view due to ‘off the books accounting’ –
onto the public’s balance sheet by selling these debts to America’s biggest
creditors; China, Japan, and the Mid East countries.”
http://maxkeiser.com/2009/08/10/max-keiser-how-the-gulag-casino-economy-works/
The problem with the dream of CME being the world’s
biggest casino of this ever expanding debt is that there was a catastrophic
collapse of markets, leaving the United States Government answering to the
heads of state around the world whose pension funds and national treasuries had
been looted from the fraudulent derivatives and unenforceable credit default
swaps.
The CEO of Goldman Sachs Group, Lloyd C.
Blankfein an East Coast lieutenant of JP Morgan Chase is now desperately threatening to kill the
hostages or even his own franchise if the YUS Treasury does not funnel more
money to him in his failed bank robbery with co-conspirators AIG and Little
Timmy Geithner, the former head of the NY Fed:
http://www.youtube.com/watch?v=cSbz464ppxA
On the
Edge with Max Keiser - 13 November
2009 (1/4)
Even mainstream scholars of the US
Federal Reserve System like Jane D’Arista are recognizing the role of illicitly
run trading platforms also called proprietary trading exchanges that utilize
artificial technology to execute “flash trades” or “naked short selling “
programs where innocent investors and entrepreneurs seeking productive capital
are fleeced. Like where the Kansas attorney Craig E. Collins exposed, the
connected firms or members of CBOT are
selectively enforcing minimal margin requirements, the Federal Reserve System
is often imperiled by proprietary trading schemes that have no security or
backing beyond the stream of income resulting from defrauding innocent
investors:
http://vodpod.com/watch/2499254-jane-darista-anatomy-of-casino-capitalism
Jane
D'Arista: Anatomy of casino capitalism
Pt 1
Next week in part 4, this reporter will expose how the state’s
attorneys generals of several Midwestern states under the control of the
Chicago Syndicate openly began attacking the main street economy destroying
farmers, healthcare entrepreneurs and our court system as they escalated their
retaliation against Craig E. Collins to protect CME’s now failed derivatives
and Credit Default Swap casino. Future installments will expose how the East
Cast gang cut its losses with CME’s Craig Donohue and in two short years built
the fastest “Flash Trading” exchange ever conceived, doing 13% of all NYSE
volume in an unlikely suburb of Kansas City, Lenexa Kansas.
Side Bar StewWebb.Com’s Exclusive Maximum Security Interview With
Leonard Peltier
Due to
overwhelming reader interest in the Kansas political prisoners David Martin
Price and Leonard Peltier, next week’s update will also contain this reporter’s
exclusive never before published in person interview with American Indian
leader Leonard Peltier from behind the walls and within one of America’s
highest security prisons. Leonard Peltier explains how the same Bush-Millman
gangsters stealing oil on Indian reservations killed the F.B. I. agents Peltier
and others were helping to stop the theft on tribal lands. During the last
year, the Department of the Interior has finally made available access to the
momentous Bureau of Land Management archives in caverns underneath Kansas City
to begin totaling up the riches looted by the Bush-Millman Crime family while
generations of its Indian owners were forced to live in America’s worst
poverty.
