Os Quatro Cavaleiros do Sistema Bancário Mundial

Se tiver dificuldade em entender o que é a Nova Ordem Mundial -é realmente o antigo ordem mundial-, e quem o compõe, este é o artigo de esclarecimento.

Por Dean Henderson
Tradução de Luis R. Miranda
27 maio 2011

Se você quer saber onde está o centro de poder real no mundo, siga o dinheiro – cui bono. Segundo a revista Global Finance, a partir de 2010 os bancos mais poderosos estão nas fortalezas de Rothschild no Reino Unido e França.

Eles são o francês BNP (US $ 3 trilhões em ativos), Royal Bank of Scotland (US $ 2,7 trilhões em ativos), o HSBC Holdings baseado no Reino Unido (US $ 2,4 trilhão em ativos ), Credit Agricole França (US $ 2,2 trilhões de dólares em ativos) e o britânico Barclays (US $ 2,2 trilhões em ativos).

Em EUA, uma combinação de desregulação e mania por fusões bancárias deixou quatro mega-bancos como a cabeça do sistema financeiro. Segundo a Global Finance, a partir de 2010 estão o Bank of America (US $ 2,2 trilhões de dólares), JP Morgan Chase (US $ 2 trilhões de dólares), Citigroup (US $ 1,9 trilhão) e Wells Fargo (US $ 1,25 trilhões). Chamei estes os Quatro Cavaleiros do Setor Bancário dos EUA. A consolidação do poder e do dinheiro.

Em setembro de 2000, o casamento que criou o JP Morgan Chase, foi a maior concentração em um frenesi de consolidação bancária que ocorreu na década de 1990. A mania das concentrações foi impulsionada pela desregulamentação do setor bancário como a revogação da Lei Glass Steagall de 1933, que foi promulgada depois da Grande Depressão para conter monopólios bancários que causaram a quebra da Bolsa em 1929 e que precipitou a Grande Depressão.

Em julho de 1929, a Goldman Sachs lançou dois fundos de investimento chamados Shenandoah e Blue Ridge. Nos meses de agosto e setembro desse ano, os bancos promoveram esses fundos e venderam ações ao público por centenas de milhões de dólares em por meio de Goldman Sachs Trading Corporation por 104 dólares por ação. Os investidores de Goldman Sachs foram resgatados no mercado de ações. No outono de 1934 as ações valiam 1,75 dólares cada. Um diretor de Shenandoah e Blue Ridge e Sullivan & Cromwell foi o advogado John Foster Dulles. [1]

John Merrill, fundador do Merrill Lynch, saiu do mercado de ações em 1928, como fizeram os investidores no Lehman Brothers. O presidente do Chase Manhattan, Alfred Wiggin tinha um “pressentimento” e formou o Sherman Corporation em 1929, para atacar as ações de sua própria empresa. Na sequência da crise de 1929, o presidente do Citibank, Charles Mitchell, foi preso por sonegação de impostos. [2]

Em fevereiro de 1995, o presidente Bill Clinton anunciou planos para eliminar o Glass Steagall e o Bank Holding Company Act de 1956 – que proibiu os bancos de serem proprietários de empresas de seguros e outras instituições financeiras. Naquele dia, o traficante de ópio e escravos, Barings faliu após que um dos seus operadores com base em Cingapura chamado Nicholas Gleason foi pego no lado errado de bilhões de dólares em operações com derivativos. [3]

A advertência foi ignorada. Em 1991, os contribuintes dos EUA, que tiveram que pagar mais de 500 bilhões de dólares para o S & L, foram forcados a pagar mais 70 bilhões de dólares para socorrer o FDIC, e logo pagaram o custo do resgate secreto de dois anos e meio no Citibank, que estava à beira do colapso após a crise da dívida na América Latina. Com as contas já pagas pelos contribuintes dos EUA a desregulamentação bancária foi dada como certa, o palco estava armado para um grande número de fusões de bancos como o mundo jamais tinha visto.

O secretário do Tesouro, Reagan, George Gould disse que a fusão dos bancos -em cinco a dez gigantes corporacoes- era necessário para a economia dos EUA. A visão de Gould estava prestes a se tornar realidade.

Em 1992, o Bank of America comprou o seu maior rival na costa ocidental, Security Pacific, e depois engoliu o Continental Bank de Illinois. Bank of America adquiriu mais tarde uma margem de 34% do Black Rock Bank (Barclays detém 20% do Black Rock) e uma participação de 11% no China Construction Bank, tornando-o a segundo maior instituição bancária do país, com ativos de 214 bilhões de dólares. Citibank tinha 249 bilhões de dólares. [4]

Ambos os bancos aumentaram os seus ativos para cerca de 2 trilhões de dólares cada.

Em 1993, o Chemical Bank assumiu o Texas Commerce Bank para se tornar o terceiro maior banco comercial, com 170 bilhões de dólares em ativos. Chemical Bank foi fundido com Manufacturers Hanover Trust, em 1990.

O North Carolina National Bank se uniu com C & S Sovran para formar o Nations Bank, que se tornou o quarto maior banco dos EUA com 169 bilhões de dólares em seus cofres. Fleet Norstar comprou o Banco de Nova Inglaterra, enquanto o Northwest comprou o Bancos Unidos de Colorado.

Durante este período os ativos bancários dessas empresas quebraram recordes a cada trimestre. O ano de 1995 quebrou todos os recordes anteriores devido as fusões bancárias. Negócios entre os bancos ‘produziram’ um total de 389 bilhões de dólares. [5]

Os cinco grandes bancos de investimento, que tinham acabado de ganhar uma tonelada de dinheiro dirigindo negociações da dívida na América Latina, aumentaram os seus lucros através da lista interminável de fusões entre 1980 e 1990.

De acordo com Standard & Poor’s, os bancos de investimento mais poderosos eram Merrill Lynch, Goldman Sachs, Morgan Stanley Dean Witter, Salomon Smith Barney e Lehman Brothers. Um acordo que fracassou em 1995, foi uma fusão entre o grande banco de investimento em Londres, SG Warburg e Morgan Stanley Dean Witter. Warburg escolheu Union Bank of Switzerland como seu pretendente em seu lugar, e então veio UBS Warburg como a sexta força em bancos de investimento.

Depois do frenesi de 1995, os bancos agressivamente saíram para o Oriente Médio, e estabeleceram operações em Tel Aviv, Beirute e Bahrein, onde a frota de bancos dos EUA foi instalada. As privatizações do Banco de Egito, Marrocos, Tunísia e Israel abriu as portas a mega-bancos nessas nações. Chase e Citibank emprestaram dinheiro a Royal Dutch Shell e Saudi Petrochemical, enquanto o JP Morgan trabalhou com o consórcio Qatargas liderado pela Exxon Mobil. [6]

A indústria de seguros também tinha a mania de fusões. Em 1995, o Travelers Group tinha comprado Aetna e, Berkshire Hathaway, uma empresa de Warren Buffet, tinha absorvido Geico, Zurique Insurance tinha absorvido Kemper Corporation, CNA Financial comprou Continental Companies e General Re Corporation afundou seus dentes em Colonia Konzern AG.

No final de 1998, o gigante Citibank fundiu-se com o Travelers Group criando o Citigroup, um gigante de US $ 700 bilhões, que ostentava mais de 163.000 funcionários em 100 países, incluindo empresas Salomon Smith Barney (uma joint venture com o Morgan Stanley), Commercial Credit, Primerica Financial Services, Shearson Lehman Brothers, o Barclays America, a Aetna e Segurities Pacific Financial. [7]

Nesse mesmo ano, Bankers Trust e US Investment Bank Alex Brown foi adquirida pelo Deutsche Bank, que também tinha comprado Morgan Grenfell em Londres, em 1989. A compra pelo Deutsche Bank, fez com que o Deutsche Bank fosse o maior banco do mundo naquela época com um capital de 882.000 bilhões de dólares. Em janeiro de 2002, a japonesa Mitsubishi e Sumitomo Operations foram combinadas para criar Sumitomo Mitsubishi Bank, que superou o Deutsche Bank, com ativos de 905 bilhões de dólares. [8]

Em 2004, o HSBC se tornou o segundo maior banco do mundo. Seis anos depois, os três gigantes tinham sido eclipsados pelo BNP e Royal Bank of Scotland.

Em EUA, o pesadelo de George Gould chegou a seu ponto mais alto na hora certa para o novo milênio, quando o Banco Chase Manhattan, absorviu o Chemical Bank. Bechtel Banker Wells Fargo comprou o Norwest Bank, enquanto o Bank of America assumiu Nations Bank. O golpe final veio quando a reunificação da Casa de Morgan anunciou que iria fundir-se com o Chase Manhattan Bank/Chemical Bank/Manufacturers Hanover.

Quatro bancos gigantes surgem a reinar no mercado financeiro dos EUA. JP Morgan Chase e Citigroup foram os reis do capital da Costa Leste. Juntos, esses dois bancos controlaram 52,86% da Reserva Federal de Nova Iorque [9], enquanto o Bank of America e Wells Fargo prevaleceram na Costa Oeste.

Durante a crise bancária de 2008, essas empresas ainda cresceram mais, recebendo quase US $ 1 trilhão, cortesia da administração Bush e o secretário do Tesouro e ex-Goldman Sachs, Henry Paulsen, enquanto calmamente compravam ativos por centavos de dólar.

Barclays assumiu o Lehman Brothers. JP Morgan Chase engoliu o Bear Stearns e o Washington Mutual. Bank of America agarrou o Merrill Lynch e Countrywide. Wells Fargo teve o quinto maior banco do país, a Wachovia.

Os mesmos bancos controlados pelas mesmas oito famílias que durante décadas galoparam, seus Quatro Cavaleiros do petróleo pelo Golfo Pérsico são mais poderosos do que em qualquer outro momento na história. Eles são os Quatro Cavaleiros do Sistema Bancário Mundial.

[1] The Great Crash of 1929. John Kenneth Galbraith. Houghton, Mifflin Company. Boston. 1979. p.148

[2] Ibid

[3] Evening Edition. National Public Radio. 2-27-95

[4] “Bank of America will Purchase Chicago Bank”. The Register-Guard. Eugene, OR. 1-29-94

[5] “Big-time Bankers Profit from M&A Fever”. Knight-Ridder News Service. 12-30-95

[6] “US Banks find New Opportunities in the Middle East”. Amy Dockser Marcus. Wall Street Journal. 10-12-95

[7] “Making a Money Machine”. Daniel Kadlec. Time. 4-20-98. p.44

[8] BBC World News. 1-20-02

[9] Rule by Secrecy: The Hidden History that Connects the Trilateral Commission, the Freemasons and the Great Pyramids”. Jim Marrs. HarperCollins Publishers. New York. 2000. p.74

Los Cuatro Jinetes de la Banca Mundial

Si a usted le es difícil entender que es el Nuevo Orden Mundial -en realidad es el antiguo orden mundial- y quienes lo componen, este es el artículo para aclarar sus dudas.

Por Dean Henderson
Traducción Luis R. Miranda
27 de mayo, 2011

Si quieres saber dónde está el centro de poder real del mundo, sigue el dinero – cui bono. Según la revista Global Finance, a partir de 2010 los más poderosos bancos se encuentran en los feudos de Rothschild en el Reino Unido y Francia.

Ellos son los franceses BNP ($ 3 trillones de dólares en activos), Royal Bank of Scotland ($ 2,7 trillones de dólares en activos), el HSBC Holdings con sede en el Reino Unido ($ 2,4 trillones de dólares en activos), el francés Credit Agricole (2,2 trillones de dólares en activos) y el Barclays británico (2,2 trillones en activos).

En los EE.UU., una combinación de desregulación y la manía de las fusiones bancárias ha dejado a cuatro mega-bancos como jefes del sistema financiero. Según Global Finance, a partir de 2010 son Bank of America (2,2 trillones de dólares), JP Morgan Chase ($ 2 trillones de dólares), Citigroup ($ 1.9 trillones de dólares) y Wells Fargo ($ 1.25 trillones). Los he llamado los Cuatro Jinetes de la banca de EE.UU. La consolidación del Poder del Dinero.

En septiembre de 2000 el matrimonio que creó JP Morgan-Chase fue la más grande concentración en un frenesí de consolidación bancaria que se llevó a cabo a lo largo de la década de 1990. La manía de concentraciones fue alimentada por una desregulación masiva de la industria bancaria como la revocación de la Ley Glass Steagal de 1933, que fue promulgada después de la Gran Depresión para frenar los monopolios bancarios que habían causado el crack bursátil de 1929 y que precipitó la Gran Depresión.

En julio de 1929 Goldman Sachs lanzó dos fondos de inversión llamado Shenandoah y el Blue Ridge. Durante agosto y septiembre de ese año, los bancos promocionaron estos fideicomisos al público, la venta de cientos de millones de dólares en acciones a través de Goldman Sachs Trading Corporation a $ 104 dólares cada acción. Los inversionistas de Goldman Sachs fueron rescatados en el mercado de valores. En el otoño de 1934 las acciones tenían un valor de $ 1.75 dólares cada una. Un director de Shenandoah y Blue Ridge y abogado de Sullivan & Cromwell, era John Foster Dulles. [1]

John Merrill, fundador de Merrill Lynch, salió del mercado de valores en 1928, al igual que lo hicieron inversionistas de Lehman Brothers. El presidente de Chase Manhattan, Alfred Wiggin tuvo una “corazonada”, al formar la Corporación Shermar en 1929, para atacar las acciones de su propia compañía. A raíz de la crisis de 1929, el presidente de Citibank, Charles Mitchell, fue encarcelado por evasión de impuestos. [2]

En febrero de 1995 el presidente Bill Clinton anunció sus planes para acabar con Glass Steagal y la Ley Bank Holding Company de 1956 – que prohibía a los bancos poseer compañías de seguros y otras entidades financieras. Ese día el comerciante de opio y esclavos, Barings, quebró después de que uno de sus operadores con sede en Singapur llamado Nicholas Gleason quedó atrapado en el lado equivocado de miles de millones de dólares en operaciones de derivativos. [3]

La advertencia no fue escuchada. En 1991, los contribuyentes de EE.UU., que ya habían tenido que pagar más de $ 500 mil millones de dólares al S & L, tuvieron que pagar otros 70 mil millones de dólares para rescatar a la FDIC, y poco después pagaron la factura de un rescate secreto dos años y medio de Citibank, que fue al borde del colapso después de la crisis de deuda en América Latina. Con sus cuentas ya pagadas por los contribuyentes de EE.UU. y la desregulación bancaria dada por un hecho, el escenario estaba listo para una gran cantidad de fusiones bancarias como el mundo nunca había visto.

El subsecretario del Tesoro de Reagan, George Gould ha afirmado que la concentración de la banca en cinco a diez bancos gigantes era necesario para la economía de los EE.UU. La visión de Gould estaba a punto de hacerse realidad.

En 1992, Bank of America compró a su rival más grande de la costa oeste, Security Pacific, para después tragarse al Banco Continental de Illinois. Bank of America más tarde adquirió una participación del 34% del banco Black Rock (Barclays posee el 20% de Black Rock) y una participación del 11% en China Construction Bank, haciendola la segunda mayor compañía bancaria del país, con activos de $ 214 mil millones de dólares. Citibank controlados 249 mil millones dólares. [4]

Ambos bancos han incrementado sus activos a alrededor de 2 trillones dólares cada uno.

En 1993, Chemical Bank absorbió el Commerce Bank de Texas para convertirse en el tercer mayor banco comercial con $ 170 mil millones de dólares en activos. Chemical Bank se había fusionado ya con Manufacturers Hanover Trust en 1990.

North Carolina National Bank y Sovran C & S se fusionaron y formaron el Nation Bank, para convertirse en la cuarta mayor compañía bancaria de EE.UU. con 169 mil millones de dólares en sus arcas. Fleet Norstar compró el Banco de Nueva Inglaterra, mientras que Norwest compró Bancos Unidos de Colorado.

A lo largo de este período los activos bancarios de estas empresas batieron récords cada trimestre. El año 1995 batió todos los récords anteriores desde las fusiones bancarias. Negocios entre bancos ‘produjeron’ un total de 389 mil millones de dólares. [5]

Los Cinco Grandes Bancos de Inversión, que acababan de ganar toneladas de dinero direccionando negociaciones de la deuda de América Latina, multiplicaron sus ganancias a través de la interminable lista fusiones entre 1980 y 1990.

De acuerdo con Standard & Poors los más poderosos bancos de inversión eran Merrill Lynch, Goldman Sachs, Morgan Stanley Dean Witter, Salomon Smith Barney y Lehman Brothers. Un acuerdo que fracasó en 1995 fue una propuesta de fusión entre el mayor banco de inversión de Londres, SG Warburg y Morgan Stanley Dean Witter. Warburg eligió Union Bank de Suiza como su pretendiente en su lugar, y de ahí surgió UBS Warburg como la sexta fuerza en la banca de inversión.

Después del frenesí de 1995, los bancos se movilizaron agresivamente hacia el Oriente Medio, y establecieron operaciones en Tel Aviv, Beirut y Bahrein, donde la flota de bancos de EE.UU. se instaló. Las privatizaciones del Banco en Egipto, Marruecos, Túnez e Israel abrió la puerta a los mega-bancos a esas naciones. Chase y Citibank, pidió dinero prestado a Royal Dutch Shell y Petroquímica de Arabia, mientras que JP Morgan asesoró al consorcio liderado por Qatargas Exxon Mobil. [6]

La industria mundial de seguros también tenía un caso de manía por las fusiones. En 1995, Traveler’s Group había comprado Aetna, y Berkshire Hathaway -una empresa de Warren Buffet- había absorbido Geico, Zurich Seguros absorbió Kemper Corporation, CNA Financial había comprado Continental Companies y General Re Corporation había hundido sus dientes en Colonia Konzern AG.

A finales de 1998 el coloso Citibank se fusionó con Travelers Group para convertirse en Citigroup, la creación de un gigante de un valor de $ 700 mil millones que se jactaba de tener 163.000 empleados en más de 100 países que incluía a las empresas de Salomon Smith Barney (una empresa conjunta con Morgan Stanley), crédito comercial, Primerica Financial Services, Shearson Lehman, Barclays América, Aetna y Financial Pacific Segurities. [7]

Ese mismo año, Bankers Trust y U.S. Investment Bank Alex Brown fueron adquiridos por Deutsche Bank, que había comprado también Morgan Grenfell de Londres en 1989. La compra hecha por Deutsche Bank el mayor banco del mundo en ese momento con activos de $ 882 mil millones de dólares. En enero de 2002, el japonés Mitsubishi y Sumitomo Operations se combinaron para crear Mitsubishi Sumitomo Bank, que superó a Deutsche Bank, con activos de US $ 905 mil millones de dólares. [8]

En 2004 HSBC se había convertido en el segundo mayor banco del mundo. Seis años más tarde, los tres gigantes habían sido eclipsados por BNP y Royal Bank of Scotland.

En los EE.UU., la pesadilla de George Gould llegó a su punto más alto justo a tiempo para el nuevo milenio, cuando el Chase Manhattan absorbió Chemical Bank. Bechtel Wells Fargo compró Norwest Bank, mientras que Bank of America absorbió Nations Bank. El golpe de gracia llegó cuando la reunificación de la Casa de Morgan anunció que se fusionaría con el Chase Manhattan Bank de Rockefeller/Chemical Bank/Manufacturers Hanover.

Cuatro bancos gigantes emergieron para reinar en el mercado financiero de Estados Unidos. JP Morgan Chase y Citigroup fueron los reyes del capital de la Costa Este. En conjunto, estos dos bancos controlaban 52,86% de la Reserva Federal de Nueva York [9] mientras Bank of America y Wells Fargo reinaban en la Costa Oeste.

Durante la crisis bancaria de 2008 estas empresas crecieron aún más, recibiendo casi $ 1 trillón de dólares cortesía del gobierno de Bush y el secretario del Tesoro y ex de Goldman Sachs, Henry Paulsen, mientras que silenciosamente compraban activos por centávos de dólar.

Barclays se hizo cargo de Lehman Brothers. JP Morgan Chase se tragó a Bear Stearns y Washington Mutual. Bank of America tomó a Merrill Lynch y Countrywide. Wells Fargo se apoderó del quinto más grande banco del país, Wachovia.

Los mismos bancos controlados por las mismas ocho familias que durante décadas habían galopado sus Cuatro Jinetes del petróleo por el Golfo Pérsico son ahora más poderosas que en cualquier otro momento de la historia. Son los Cuatro Jinetes del Sistema Bancario Mundial.

Fuentes:

[1] The Great Crash of 1929. John Kenneth Galbraith. Houghton, Mifflin Company. Boston. 1979. p.148

[2] Ibid

[3] Evening Edition. National Public Radio. 2-27-95

[4] “Bank of America will Purchase Chicago Bank”. The Register-Guard. Eugene, OR. 1-29-94

[5] “Big-time Bankers Profit from M&A Fever”. Knight-Ridder News Service. 12-30-95

[6] “US Banks find New Opportunities in the Middle East”. Amy Dockser Marcus. Wall Street Journal. 10-12-95

[7] “Making a Money Machine”. Daniel Kadlec. Time. 4-20-98. p.44

[8] BBC World News. 1-20-02

[9] Rule by Secrecy: The Hidden History that Connects the Trilateral Commission, the Freemasons and the Great Pyramids”. Jim Marrs. HarperCollins Publishers. New York. 2000. p.74

Consolidating US Money Power: The Four Horsemen of Global Banking

By Dean Henderson
Global Research
May 25, 2011

If you want to know where the true power center of the world lies, follow the money – cui bono.  According to Global Finance magazine, as of 2010 the world’s five biggest banks are all based in Rothschild fiefdoms UK and France.

They are the French BNP ($3 trillion in assets), Royal Bank of Scotland ($2.7 trillion), the UK-based HSBC Holdings ($2.4 trillion), the French Credit Agricole ($2.2 trillion) and the British Barclays ($2.2 trillion).

In the US, a combination of deregulation and merger-mania has left four mega-banks ruling the financial roost.  According to Global Finance, as of 2010 they are Bank of America ($2.2 trillion), JP Morgan Chase ($2 trillion), Citigroup ($1.9 trillion) and Wells Fargo ($1.25 trillion).  I have dubbed them the Four Horsemen of US banking Consolidating the Money Power.

The September 2000 marriage which created JP Morgan Chase was the grandest merger in a frenzy of bank consolidation that took place throughout the 1990’s.  Merger mania was fed by a massive deregulation of the banking industry including revocation of the Glass Steagal Act of 1933, which was enacted after the Great Depression to curb the banking monopolies which had caused the 1929 stock market crash and precipitated the Great Depression.

In July 1929 Goldman Sachs launched two investment trusts called Shenandoah and Blue Ridge.  Through August and September they touted these trusts to the public, selling hundreds of millions of dollars worth of shares through the Goldman Sachs Trading Corporation at $104/share.  Goldman Sachs insiders were bailing out of the stock market.  By the fall of 1934 the trust shares were worth $1.75 each.  One director at both Shenandoah and Blue Ridge was Sullivan & Cromwell lawyer John Foster Dulles. [1]

John Merrill, founder of Merrill Lynch, exited the stock market in 1928, as did insiders at Lehman Brothers.  Chase Manhattan Chairman Alfred Wiggin took his “hunch” to the next level, forming Shermar Corporation in 1929 to short the stock of his own company.  Following the Crash of 1929, Citibank President Charles Mitchell was jailed for tax evasion. [2]

In February 1995 President Bill Clinton announced plans to wipe out both Glass Steagal and the Bank Holding Company Act of 1956- which barred banks from owning insurance companies and other financial entities. That day the old opium and slave trader Barings went belly up after one of its Singapore-based traders named Nicholas Gleason got caught on the wrong side of billions of dollars in derivative currency trades. [3]

The warning went unheeded.  In 1991 US taxpayers, already billed over $500 billion dollars for the S&L looting, were charged another $70 billion to bail out the FDIC, then footed the bill for a secret 2 1/2-year rescue of Citibank, which was close to collapse after the Latin American debt crunch hit home.  With their bill’s paid by US taxpayers and bank deregulation a done deal, the stage was set for a slew of bank mergers like none the world had ever seen.

Reagan Undersecretary of Treasury George Gould had stated that concentration of banking into five to ten giant banks was what the US economy needed.  Gould’s nightmare vision was about to come true.

In 1992 Bank of America bought its biggest West Coast rival Security Pacific, then swallowed up the looted Continental Bank of Illinois for cheap.  Bank of America later took a 34% stake in Black Rock (Barclays owns 20% of Black Rock) and an 11% share in China Construction Bank, making it the nation’s second largest bank holding company with assets of $214 billion.  Citibank controlled $249 billion. [4]

Both banks have since increase their assets to around $2 trillion each.

In 1993 Chemical Bank gobbled up Texas Commerce to become the third largest bank holding company with $170 billion in assets.  Chemical Bank had already merged with Manufacturers Hanover Trust in 1990.

North Carolina National Bank and C&S Sovran merged into Nation’s Bank, then the fourth largest US bank holding company, with $169 billion in its war chest.  Fleet Norstar bought Bank of New England, while Norwest bought United Banks of Colorado.

Throughout this period US bank profits were soaring, breaking records with each new quarter.  The year 1995 broke all previous records for bank mergers.  Deals totaling $389 billion occurred that year. [5]

The Big Five investment banks, who had just made boatloads of money steering Latin American debt negotiations, now made a killing steering the bank and industrial merger- mania of the 1980’s and 1990’s.

According to Standard & Poors the top five investment banks were Merrill Lynch, Goldman Sachs, Morgan Stanley Dean Witter, Salomon Smith Barney and Lehman Brothers.  One deal that fell through in 1995 was a proposed merger between London’s biggest investment bank S. G. Warburg and Morgan Stanley Dean Witter.  Warburg chose Union Bank of Switzerland as its suitor instead, creating UBS Warburg as a sixth force in investment banking.

After the 1995 feeding frenzy, the money center banks moved aggressively into the Middle East, establishing operations in Tel Aviv, Beirut and Bahrain- where the US 5th Fleet was setting up shop.  Bank privatizations in Egypt, Morocco, Tunisia and Israel opened the door to the mega-banks in those nations.  Chase and Citibank lent money to Royal Dutch/Shell and Saudi Petrochemical, while JP Morgan advised the Qatargas consortium led by Exxon Mobil. [6]

The global insurance industry had a case of merger mania as well.  By 1995 Traveler’s Group had bought Aetna, Warren Buffet’s Berkshire Hathaway had eaten up Geico, Zurich Insurance had swallowed Kemper Corporation, CNA Financial had purchased Continental Companies and General RE Corporation had sunk its teeth into Colonia Konzern AG.

In late 1998 the Citibank colossus merged with Travelers Group to become Citigroup, creating a behemoth worth $700 billion that boasted 163,000 employees in over 100 countries and included the firms of Salomon Smith Barney (a joint venture with Morgan Stanley), Commercial Credit, Primerica Financial Services, Shearson Lehman, Barclays America, Aetna and Security Pacific Financial. [7]

That same year Bankers Trust and US investment bank Alex Brown were swooped up by Deutsche Bank, which had also purchased Morgan Grenfell of London in 1989.  The purchase made Deutsche Bank the world’s largest bank at the time with assets of $882 billion.  In January 2002, Japanese titans Mitsubishi and Sumitomo combined operations to create Mitsubishi Sumitomo Bank, which surpassed Deutsche Bank with assets of $905 billion. [8]

By 2004 HSBC had become the world’s second largest bank.  Six years later all three behemoths had been eclipsed by both BNP and Royal Bank of Scotland.

In the US, the George Gould nightmare reached its ugly nadir just in time for the new millennium when Chase Manhattan swallowed up Chemical Bank.  Bechtel banker Wells Fargo bought Norwest Bank, while Bank of America absorbed Nations Bank. The coup de grace came when the reunified House of Morgan announced that it would merge with the Rockefeller Chase Manhattan/Chemical Bank/ Manufacturers Hanover machine.

Four giant banks emerged to rule the US financial roost.  JP Morgan Chase and Citigroup were kings of capital on the East Coast.  Together they control 52.86% of the New York Federal Reserve Bank. [9]  Bank of America and Wells Fargo reigned supreme on the West Coast.

During the 2008 banking crisis these firms got much larger, receiving a nearly $1 trillion government bailout compliments of Bush Treasury Secretary and Goldman Sachs alumni Henry Paulsen; while quietly taking over distressed assets for pennies on the dollar.

Barclays took over Lehman Brothers.  JP Morgan Chase got Washington Mutual and Bear Stearns.  Bank of America was handed Merrill Lynch and Countrywide.  Wells Fargo swallowed up the nation’s 5th biggest bank- Wachovia.

The same Eight Families-controlled banks which for decades had galloped their Four Horsemen of oil roughshod through the Persian Gulf oil patch are now more powerful than at any time in history.  They are the Four Horsemen of US banking.

Notes

[1] The Great Crash of 1929. John Kenneth Galbraith. Houghton, Mifflin Company. Boston. 1979. p.148

[2] Ibid

[3] Evening Edition. National Public Radio. 2-27-95

[4] “Bank of America will Purchase Chicago Bank”. The Register-Guard. Eugene, OR. 1-29-94

[5] “Big-time Bankers Profit from M&A Fever”. Knight-Ridder News Service. 12-30-95

[6] “US Banks find New Opportunities in the Middle East”. Amy Dockser Marcus. Wall Street Journal. 10-12-95

[7] “Making a Money Machine”. Daniel Kadlec. Time. 4-20-98. p.44

[8] BBC World News. 1-20-02

[9] Rule by Secrecy: The Hidden History that Connects the Trilateral Commission, the Freemasons and the Great Pyramids”. Jim Marrs. HarperCollins Publishers. New York. 2000. p.74

 Dean Henderson is the author of Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network and The Grateful Unrich: Revolution in 50 Countries.  His Left Hook blog is at  www.deanhenderson.wordpress.com

Corporate Media Bailed Out with Taxpayer Money

Not only foreign and local banks hoarded the cash.  Private industry got their share, too.

There are still people who think QE2 is a great idea.

Washington Post

The financial crisis stretched even farther across the economy than many had realized, as new disclosures show the Federal Reserve rushed trillions of dollars in emergency aid not just to Wall Street but also to motorcycle makers, telecom firms and foreign-owned banks in 2008 and 2009.

The Fed’s efforts to prop up the financial sector reached across a broad spectrum of the economy, benefiting stalwarts of American industry including General Electric and Caterpillar and household-name companies such as Verizon, Harley-Davidson and Toyota. The central bank’s aid programs also supported U.S. subsidiaries of banks based in East Asia, Europe and Canada while rescuing money-market mutual funds held by millions of Americans.

The biggest users of the Fed lending programs were some of the world’s largest banks, including Citigroup, Bank of America, Goldman Sachs, Swiss-based UBS and Britain’s Barclays, according to more than 21,000 loan records released Wednesday under new financial regulatory legislation.

The data reveal banks turning to the Fed for help almost daily in the fall of 2008 as the central bank lowered lending standards and extended relief to all kinds of institutions it had never assisted before.

Fed officials emphasize that their actions were meant to stabilize a financial system that was on the verge of collapse in late 2008. They note that the actions worked to prevent a complete financial meltdown and that none of the special lending programs has lost money. (Some have recorded healthy profits for taxpayers.)

But the extent of the lending to major banks – and the generous terms of some of those deals – heighten the political peril for a central bank that is already under the gun for a wide range of actions, including a recent decision to try to stimulate the economy by buying $600 billion in U.S. bonds.

“The American people are finally learning the incredible and jaw-dropping details of the Fed’s multitrillion-dollar bailout of Wall Street and corporate America,” said Sen. Bernard Sanders (I-Vt.), a longtime Fed critic whose provision in the Wall Street regulatory overhaul required the new disclosures. “Perhaps most surprising is the huge sum that went to bail out foreign private banks and corporations. As a result of this disclosure, other members of Congress and I will be taking a very extensive look at all aspects of how the Federal Reserve functions.”

The Fed launched emergency programs totaling $3.3 trillion in aid, a figure reached by adding up the peak amount of lending in each program.

Companies that few people would associate with Wall Street benefited through the Fed’s program to ease the market for commercial paper, a form of short-term debt used by major corporations to fund their daily activities.

By the fall of 2008, credit had frozen across the financial system, including the commercial paper market. The Fed then purchased commercial paper issued by GE 12 times for a total of $16 billion. It bought paper from Harley-Davidson 33 times, for a total of $2.3 billion. It picked up debt issued by Verizon twice, totaling $1.5 billion.

“It is hard to say what would have happened without the facility, and how its absence might have affected GE, but overall the program was extremely effective in helping stabilize the market,” GE spokesman Russell Wilkerson said by e-mail.

Verizon spokesman Robert A. Varettoni said that it was “an extraordinary time,” adding that there was no credit available otherwise at the time.

The data revealed that the Fed continued making purchases into the summer of 2009 – after the official end of the recession – showing that it was still concerned about a fundamental part of the financial system even as economic growth was returning.

The disclosure shows “how really profound the financial crisis was in the fall of 2008 and the firepower the Fed mustered in response,” said analyst Karen Shaw Petrou of Federal Financial Analytics.

Foreign-owned banks also benefited from the Fed’s commercial-paper facility. The Korean Development Bank, owned by the South Korean government, used the program to the tune of billions of dollars, including a $407 million short-term loan on a single day. Many foreign banks, including the French BNP Paribas, the Swiss UBS and the German Deutsche Bank, took extensive advantage of various programs. Even a major bank in Bavaria benefited, as well as another one headquartered in Bahrain, a tiny island country in the Middle East.

Another Fed program allowed investment banks for the first time to borrow directly from the Fed as officials sought to stem the panic that had taken down Wall Street titan Bear Stearns. The central bank assisted 18 companies through this program. Among the biggest beneficiaries was Citigroup, which in a single day in November 2008 borrowed $18.6 billion from the Fed.

The data also demonstrate how the Fed, in its scramble to keep the financial system afloat, eventually lowered its standards for the kind of collateral it allowed participating banks to post. From Citigroup, for instance, it accepted $156 million in triple-C collateral or lower – grades that indicate that the assets carried the greatest risk of default.

Dallas Federal Reserve President Richard Fisher defended the Fed’s actions during the financial crisis, saying the central bank “stepped into the breach” in its role as a lender of last resort.

“That’s what we are paid to do,” he said. “We took an enormous amount of risk with the people’s money,” he acknowledged. But the crisis lending programs are now all closed, he said, “and we didn’t lose a dime, and in fact we made money on every one of them.”

The banks universally hailed the Fed on Wednesday.

“In late 2008, many of the US funding markets were clearly broken,” Goldman Sachs said in a statement, echoing similar comments made by Bank of America and Citigroup. “The Federal Reserve took essential steps to fix these markets and its actions were very successful.”

By 2009, Goldman and other Wall Street firms were reporting their best profits ever. That allowed these banks to pay out huge salaries again, but it also drew the ire of lawmakers and ordinary Americans.

Sanders, for one, said these banks got off easy while receiving extraordinary aid. In rescuing these firms, the Fed never required them to lend to small businesses, modify the mortgages of homeowners or invest in a way that would create jobs.

“We bailed these guys out, but the requirements placed upon them had very little positive impact on the needs of ordinary Americans,” Sanders said.

Greece may Collapse in August, Economist

CNBC

A restructuring of Greek debt could happen as soon as August, when the Balkan country is due to receive another tranche of funds

The collapse of the greeks may just have been delayed, not avoided.

from its lending agreement with the International Monetary Fund (IMF) and the European Union, according to Carl Weinberg.

“You can’t take a country that’s over-borrowed and make it more creditworthy by lending it more money,” he said. “They’re throwing Greece further and further and further in the hole by not addressing the problem directly and properly.”Asked when a Greek default could happen, Weinberg answered: “at High-Frequency, we are advising people to take their cell phones on their August vacation.” He said a Greek default would be “harsh” for the euro.

Greek officials did not respond to CNBC.com requests for comment.

On Thursday, Nassim Taleb, professor and author of the bestselling book “The Black Swan,” told CNBC that the economic situation today is drastically worse than a couple of years ago, and that the euro is doomed as a concept.

But famous investor Jim Rogers said now may be a time to buy the single European currency, as there are so many investors who are bearish about it that a rally may be in the making.

IMF and EU funds worth about 7.5 billion euros ($9 billion), crucial for Greece to be able to pay foreign debt, are due to be disbursed at the end of August, Weinberg said.

“Unless (Greeks) meet the quantified adjustment targets that they agreed to in the memorandum of understanding with the IMF, they won’t get this money,” he said, adding that his bet is that Greece will not meet the criteria.

EU Won’t Let Default Happen

Under the memorandum of understanding, performance criteria include ceilings on the budget deficit, cutting government and social security spending, as well as revamping key public companies.

However, other analysts say the implications of a Greek default on the euro zone’s financial institutions and economy are so great that the two institutions will disburse the funds even if the country does not fully meet the criteria.

“By alimenting Greece, we are also alimenting the European banking system,” Hans Redeker, global head of foreign exchange at BNP Paribas, told CNBC.

“It is going to be tried to be protected as long as possible, to be sure that this country is viable economically,” Redeker added.

A Greek debt restructuring, if it happens, would be an orderly one, to cause as little pain to the euro as possible, Weinberg said.

Watch the testimony from Economist Carl Weinberg.