Deutsche Bank refuses to pay $14bn US penalty

Source: RT News

Germany’s biggest bank says it won’t pay a $14 billion US Department of Justice (DoJ) fine for selling mortgage-backed securities that contributed to the 2008 financial crisis.

“Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited. The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts,” Deutsche Bank said in a statement on Friday.

The Wall Street Journal reported the DoJ is demanding $14 billion in compensation to settle a set of high-profile mortgage-securities probes stemming from the financial crisis.

The bank’s spokesman confirmed in July settlement negotiations were underway, but the size of the potential penalty was unknown before today.

The amount is almost equal to Deutsche’s market cap. As a result, the share price of the German bank plummeted over eight percent on Friday, dragging the country’s stock market half a percent lower. Friday’s slump added to the 45 percent drop in the bank’s stock since January and a 53 percent slump over the last twelve months.

Bank of America paid $17 billion to settle a similar probe in 2014. Goldman Sachs agreed to reimburse $5.1 billion earlier this year over troubles with mortgage-backed securities that were sold to investors as high-quality debt.

In 2014, the DoJ demanded Citigroup pay $12 billion for selling low-grade mortgage-backed securities, but the fine was cut to $7 billion.

Barclays, Credit Suisse Group, UBS and Royal Bank of Scotland face similar investigations and could also be penalized by US authorities.

 

The British People Start the Assault on the Bankrupt European Union

When British Prime Minister, Edward Heath proposed the Common Market referendum in 1975(which became the EU) Brits didn’t really know what would become of it. The people were under the impression that this would help improve trading with other countries, but instead over forty years later we’ve seen this monstrosity sink it’s tentacles into 28 countries. The most recent member being Croatia with its accession in 2013.

Since the EU’s inception in 1958 it has slowly forced many other countries into joining. Slowly the Common Market morphed into a greedy machine called the EU that used policies to amass more and more power over member nations. EU leadership consisted of individuals who had close ties to the Central Banks and special interests. Eventually the EU forced the introduction of the Euro for its member states. Of the 28 members of the EU, 19 of them used the Euro as their official currency and these nations form what is called the Eurozone. Other nations are obliged(forced) when they reach certain ‘criteria’ to adopt the Euro as well.

With the recent vote by the British people to leave the EU, it appears that the Brits are the first ones to lay siege on the EU. According to Benjamin Fulford the EU is broke and this could be the first domino to fall that could lead to the dissolution of the European Union. Benjamin Fulford compared this latest development in Britain with Poland’s departure from the Soviet Union which led to the collapse of the Warsaw Pact.

READ: Benjamin Fulford Report June 27th 2016

Former congressman Ron Paul on the Liberty Report shared that this vote is a strong censuses for the British people to leave EU and stated emphatically: “Other countries are watching….This is the beginning of the end of the European Union…and nobody is going to suffer from that. Only the wealthy, banking, special interests will suffer

Ron Paul believes that the British people have taken a step in regaining their sovereignty. The British people will have more of a say in the direction they wish to see their country go, instead of having some foreign council decide for them. They’ve become masters of their own destiny once again.

With the advent of the Brexit we are seeing many nations considering the same move. Here’s a recent poll that was conducted in many of the EU member nations on whether they favored or disfavored the European Union.

PM_2016.06.07_brexit-01

The graph above shows that many nations are split in regards to their opinion of the EU. If we go by the numbers presented in this poll we could see the nations of Greece, France, Spain and possibly Germany consider leaving the EU. Nigel Farage stated that the Netherlands might be the next country to jump ship. He stated, “We may well be close, perhaps, to a Nexit.” According to the above poll, that could be a possibility. Which country will be next, only time will tell.

One thing is clear though, the oligarchs are in panic mode. Everywhere we see them being assaulted and what little power they still have is starting to slip from their grips faster and faster. Former Federal Reserve Chairman Alan Greenspan called the U.K. Brexit a ‘Terrible Mistake’. Which is true, but not for the 99%, only the 1% who have special interests. This supports the possibility that the Financial Reset is imminent.

READ: Financial Reset Imminent

This is a great victory for not only the British people, but the people of the world. No longer will we allow Central Banks to run our lives. This sends a message to the world that we are sick and tired of business as usual. The time of empty promises has passed and beginning of real authentic change has begun. These Elites have no right to use us as cannon fodder or slaves. We are divine sovereign beings of light whom shall be free from their evil clutches. We the People will be victorious and given the tools to create a society that truly is worthy for us and future generations.

Timothy Frappier

 

 

15 Facts About The Imploding U.S. Economy That The Mainstream Media Doesn’t Want You To See

The unemployment numbers have been manipulated for quite some time. The fact of the matter is that we’re experiencing a new depression. The numbers are just being misconstrued in order to keep the population appeased. Each and every month there are thousands whom are taken from the ‘unemployed list, to the ‘not in the labor force’.

Read: Worst Jobs Report In Nearly 6 Years – 102 Million Working Age Americans do Not Have Jobs

This is the reality we live in, where everything that the TV is feeding us, is mostly a wagon full of lies or manipulated data to serve special interests. The point is to make it seem like it’s just a little bad, but not really bad. Because if it is really bad, people will complain and want change to manifest within the political, financial and economic sectors. I saw the reports for Black Friday last year, they were done from $11.6 billion to $10.4 billion

As you can see with the chart above, annual nonfarm business growth from 2007-2005 has been stuck at 1.2% percent. If we were to consider inflation in this graph, we would come up with a negative growth. The economy is looking grim at the moment.

In the Chart above, shows our non-farm labor productivity for the last 2 years has been at .6 percent! Things are continuing to look dire for many in the work force. Companies continue to layoff many workers to deal with the slow growth.

Read: These 9 Charts Explain The Global Economic Slowdown (And Why Central Banks Can’t Fix It)

The situation may appear to be grim, but this is far from the truth. Though the surface signs appear to be pointing to a hard life for future generations, this slowdown is actually stagnant energy being converted into prosperous energy. This is alchemy working in the world of finance so that we can truly build a tomorrow worthy for future generations. The Powers That Were have to be drained of their power, which is being done slowly, but surely. We’ve reached a point where the process is nearly over, soon things will change. Stay positive, embrace the Truth and be grateful for life.

Timothy Frappier

 

15 Facts About The Imploding U.S. Economy That The Mainstream Media Doesn’t Want You To See

U.S. Economy - Public DomainYou are about to see undeniable evidence that the U.S. economy has been slowing down for quite some time.  And it is vital that we focus on the facts, because all over the Internet you are going to find lots and lots of people that have opinions about what is going on with the economy.  And of course the mainstream media is always trying to spin things to make Barack Obama and Hillary Clinton look good, because those that work in the mainstream media are far more liberal than the American population as a whole.  It is true that I also have my own opinions, but as an attorney I learned that opinions are not any good unless you have facts to back them up.  So please allow me a few moments to share with you evidence that clearly demonstrates that we have already entered a major economic slowdown.  The following are 15 facts about the imploding U.S. economy that the mainstream media doesn’t want you to see…

1. Industrial production has now declined for nine months in a row.  We have never seen this happen outside of a recession in all of U.S. history.

2. U.S. commercial bankruptcies have risen on a year over year basis for seven months in a row and are now up 51 percent since September.

3. The delinquency rate on commercial and industrial loans has been rising since January 2015.

4. Total business sales in the United States have been steadily dropping since the middle of 2014.  No, I did not say 2015.  Total business sales have been in decline for nearly two years now, and we just found out that they dropped again

Total business sales in the US did in April what they’ve been doing since July 2014: they dropped: -2.9% from a year ago, to $1.28 trillion (not adjusted for seasonal differences and price changes), the Censuses Bureau reported on Tuesday. That’s where sales had been in April 2013!

5. U.S. factory orders have been dropping for 18 months in a row.

6. The Cass Shipping Index has been falling on a year over year basis for 14 consecutive months.

7. U.S. coal production has dropped to the lowest level in 35 years.

8. Goldman Sachs has its own internal tracker of the U.S. economy, and it has fallen to the lowest level since the last recession.

9. JPMorgan’s “recession indicators” have risen to the highest level that we have seen since the last recession.

10. Federal tax receipts and state tax receipts usually both start to fall as we enter a new recession, and that is precisely what is taking place right now.

11. The Federal Reserve’s Labor Market Conditions Index has been falling for five months in a row.

12. The employment numbers that the government released for last month were the worst that we have seen in six years.

13. According to Challenger, Gray & Christmas, layoff announcements at major firms are running 24 percent higher this year than they were at this time last year.

14. Online job postings on the business networking site LinkedIn have been declining steadily since February after 73 months in a row of growth.

15. The number of temporary workers in the United States peaked and started falling precipitously before the recession of 2001 even started.  The exact same thing happened just prior to the beginning of the 2008 recession.  So would it surprise you to learn that the number of temporary workers in the United States peaked in December and has fallen dramatically since then?

Temporary Help Services

Earlier today, we learned that two of our biggest corporations will be laying off even more workers.  Bank of America, which is holding more of our money than any other bank in the country, has announced that it is going to be cutting about 8,000 more workers

Bank of America is expected to reduce staffing in its consumer banking division by as many as 8,000 more jobs.

The nation’s largest retail bank by deposits has already reduced the staffing in its consumer division from more than 100,000 in 2009 to about 68,400 as of the end of the first quarter of 2016, said Thong Nguyen, Bank of America’s president of retail banking and co-head of consumer banking at the Morgan Stanley Financials Conference Tuesday.

And Wal-Mart has announced that it is going to be eliminating “back-office accounting jobs” at approximately 500 locations

Walmart is going to cut some back-office accounting jobs at about 500 stores in a bid to become more efficient.

The job cuts will occur mostly at stores mostly in the West and involve accounting and invoicing workers, says spokesman Kory Lundberg. Instead, bookkeeping functions will be switched to Walmart’s home office in Bentonville, Ark. Cash at the stores will be counted by machine.

Day after day we are hearing about more layoffs like this.  So why would this be happening if the U.S. economy truly was in “recovery mode”?

Even with how manipulated the GDP numbers are these days, Barack Obama is on course to be the only president in all of U.S. history to never have a single year when the economy grew by at least 3 percent.  The truth is that our economy has been stuck in the mud ever since the end of the last recession, and now a major new downturn has clearly already begun.

And you want to know who else realizes this?

Foreign investors do.

Last month, foreign investors dumped U.S. debt at the fastest pace ever recorded

Foreign investors sold a record amount of U.S. Treasury bonds and notes for the month of April, according to U.S. Treasury Department data on Wednesday, as investors priced in a few more rate increases by the Federal Reserve this year.

Foreigners sold $74.6 billion in U.S. Treasury debt in the month, after purchases of $23.6 billion in March. April’s outflow was the largest since the U.S. Treasury Department started recording Treasury debt transactions in January 1978.

There is no debate any longer – the next economic crisis is already here.  This is so abundantly obvious at this point that even George Soros has been feverishly dumping stocks and buying gold.

We can argue about whether the U.S. economy started turning down in late 2015, early 2015 or late 2014, and it is good to have those debates.

But at the end of the day, what is far more important is what is ahead.  Fortunately, our downturn has been fairly gradual so far, and let us hope that it stays that way for as long as possible.

In much of the rest of the world, things are already in full-blown panic mode.  For instance, Venezuela was once the wealthiest nation in South America, but now people are literally hunting cats and dogs for food.

Absent a major “black swan event” of some sort, we won’t see that happening in the United States for at least a while yet, but without a doubt we are steamrolling toward a major economic depression.

Unfortunately for all of us, there isn’t anything that any of our politicians are going to be able to do to stop it.

*About the author: Michael Snyder is the founder and publisher of The Economic Collapse Blog. Michael’s controversial new book about Bible prophecy entitled “The Rapture Verdict” is available in paperback and for the Kindle on Amazon.com.*