Apr 22

- Martin Armstrong Warns “Abandon The UK Before You Can’t” (ZeroHedge, April 22, 2014):

The following is a new ad campaign in Britain.

20140422_uk

As we have warned numerous times – muddle-through has failed; Martin Armstrong notes, the politicians have squandered everything and now they are hunting down capital everywhere and the view is people have to pay whatever they demand or you are just a criminal. Nobody even bothers to look at what they are doing to the world economy.

These advertisements are appearing everywhere and they will only succeed in created the worst economic collapse since the Great Depression.

Source: Armstrong Economics

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Apr 22

More Californians move in with parents

- Number Of Middle Age Californians Living With Their Parents Soars (ZeroHedge, April 22, 2014):

In the latest indication of just how strong the US “recovery” is, we find that the number of Californians 50 to 64 who live in their parents’ homes has surged in recent years, which as the LA Times less than sarcastically adds, reflects “the grim economic aftermath of the Great Recession.” Wait, don’t they mean the great recovery? Because isn’t the S&P just 10 points from its all time closing high? Maybe all those middle-age Californians are merely seeking their comfort (and spare bedrooms) of their parents so they can all use the family E-trade terminal together.

Continue reading »

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Apr 22

- Is The US Military Preparing For The Collapse Of The Dollar? (ZeroHedge, April 21, 2014):

It almost happened in 2008… but as this excerpt from Casey Research’s Meltdown America documentary notes, it appears the US military is preparing for the potential collapse of the US dollar. As Scott Taylor warns, “…if the carrot (of credit worthiness) is fading, and the stick (of military threat) is weak, that empire is going to come down in a hurry…” which leaves a serial economic mis-manager only one option to ‘secure’ the empire.

To see what the consequences of economic mismanagement can be, and how stealthily disaster can creep up on you, watch the 30-minute documentary, Meltdown America. Witness the harrowing tales of three ordinary people who lived through a crisis, and how their experiences warn of the turmoil that could soon reach the US. Click here to watch it now.

Meltdown America_0

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Apr 22

- A Bankrupt World, $26,000 Gold & The Destruction Of Wealth (King World News, April 21, 2014)

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Apr 22

- The Man Who Saved Russia’s Economy Counts the Cost of Crimea (Minyanville’s Wall Street, April 17, 2014):

If anybody knows how much Russia will pay for its confrontation with the West over Ukraine, it should be Alexei Kudrin. As finance minister from 2000-2011, Kudrin engineered his country’s transformation from bankrupt backwater to proud fiscal model. He oversaw 11 years of budgetary surpluses, and managed to sock away the savings in huge reserve funds that rescued Russia after the world crisis of 2008-’09.  He finally left government, ironically, after publicly opposing then-President Dmitry Medvedev’s plans for a rapid increase in military expenditure.

Continue reading »

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Apr 21

muppets-kermit-dead

- Mortgage Standards Are Plunging – It’s Muppet Fleecing Time All Over Again (Liberty Blitzkrieg, April 21, 2014):

In February, I highlighted the fact that subprime loans were about to make a return in my piece: Subprime Mortgages are Back…This Time Marketed as “Second Chance Purchase Programs.” In that article, I posited that with the “all cash” private equity shops and hedge funds no longer able to make good returns through buying new homes to rent, these investors would need some sucker to sell to in order to realize a return (Blackstone’s purchases have plunged 70% recently). That sucker, as always, will be the retail muppets, and those muppets will be lured in through subprime. This is now starting to happen in earnest.

The following article from the Wall Street Journal is both depressing and disturbing. Rather than allowing home prices to reset at a lower level after the 2008 crash where to normal buyers could afford a sane 20% mortgage, our central planners decided to do “whatever it takes” to re-inflate the housing bubble. This was achieved through wealthy investment pools buying properties for all cash. The trouble is, with home prices now inflated by these financial buyers and no real increase in wages, homes are simply unaffordable. So what do you do? You bring back subprime and get the peasants long real estate with essentially zero money down all over again. Truly remarkable. Continue reading »

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Apr 21

grains

- Agenda 21: Food Is The New Gold. Land Is The New Oil. (Underground Medic, April 21, 2014):

Over the last decade world grain reserves have fallen by at least a third and that decline looks set to continue. For the last half of the 20th century overproduction was the order of the day. Huge grain surpluses, butter mountains and milk lakes dominated the news.

During this period the United States had a farm programme where land lay idle to prevent even more surpluses, this provided a cushion against shortages, the land could be planted up if the surpluses fell to levels considered to be too low. In the UK land was left fallow and green manured to enrich it for the following season. The crops were rotated and the harvests were generally very good. In addition there was the carryover: The amount of grain left in the massive storage silos at the time the next crop is harvested. Other western nations had similar systems.

Continue reading »

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Apr 21

Red Flag L5 Is The New Must-Have Car In China-1

- Forget Ferrari, The $803,300 Red Flag L5 Is The New Must-Have Car In China

For the wealthy Chinese with 5 million Yuan (around $800,000) burning a hole in their pocket, there is a new must-have ‘toy’. Instead of the latest Ferrari or Lambo, it is none other than the provocatively named “Red Flag L5″ that is popping eyeballs and leaving the wealthy Chinese breathless…

As Bloomberg reports,

Forget Ferraris. Someone paid at least 5 million yuan ($803,300) to buy a Chinese car.

China FAW Group Corp. began taking orders for the tailor-made Red Flag L5, the nation’s most expensive vehicle, with the first one sold to a customer in Nanjing, the automaker said in a statement today at the Beijing auto show. Delivery will take three months, said the buyer, Wang Zhonghua, who runs a company that operates a chain of furniture malls in China.

Continue reading »

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Apr 21

- Retail Store Closures Soar In 2014: At Highest Pace Since Lehman Collapse (ZeroHedge, April 21, 2014):

What a better way to celebrate the rigged markets that are telegraphing a “durable” recovery, than with a Credit Suisse report showing, beyond a reasonable doubt, that when it comes to traditional bricks and mortar retailers, who have now closed more stores, or over 2,400 units, so far in 2014 and well double the total amount of storefront closures in 2013, this year has been the worst year for conventional discretionary spending since the start of the great financial crisis!

Continue reading »

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Apr 21

- Keynesian Knightmare: US Savers Outnumber Spenders By Record Numbers (ZeroHedge, April 21, 2014):

“Janet, we have a problem,” is the resoundingly loud message from the latest Gallup poll of Americans preference (and relative enjoyment) of “saving” vs. “spending”. It seems, despite all the hoop-la and exuberance about an ‘economic recovery’ that is pent-up due to weather but about to break out to escape velocity, the majority of Americans continue to enjoy saving money more than spending it, by 62% to 34%. The 2014 saving-spending gap is the one of the widest since Gallup began tracking Americans’ preferences in 2001. How long before a discussion of negative rates re-appears as the rich and powerful Oz-ians contemplate the latest effort to ‘change’ people’s mass psychology… Continue reading »

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Apr 21

Customers flock to buy gold accessories at a gold store on sale in Taiyuan

- China Goes Dark: PBOC To Keep Goldbugs Clueless About Its Gold Buying Spree (ZeroHedge, April 21, 2014):

One of the more perplexing divergences that have plagued precious metal watchers and goldbugs when it comes to the great “black box” that is the world’s biggest buyer of gold in recent years – China (which overtook India after that particular country established unprecedented capital controls to block the import of gold) is that on one hand China has been allowing the outside world to glimpse its ravenous buying of gold through the Hong Kong-Shenzhen corridor (where nearly 70% of the Chinese gold jewellery business is located) since Hong Kong customs provides a full breakdown of how much gold it exports into China, yet on the other the PBOC has refused to update its official gold holdings in exactly five years.

Continue reading »

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Apr 21

- Russia Warns It May Enter Recession As Soon As This Quarter (ZeroHedge, April 21, 2014):

While hardly coming as a surprise to anyone, Russia is getting increasingly more vocal about the near certainty that the country is about to slam headfirst into a technical (at first), and then outright recession.

  • RUSSIA MAY ENTER `TECHNICAL RECESSION’ IN 2Q, ORESHKIN SAYS
  • RUSSIAN 2014 CAPITAL OUTFLOWS MAY REACH $70B-$80B: ORESHKIN
  • RUSSIAN 2014 CURRENT-ACCOUNT SURPLUS MAY EXCEED $50B: ORESHKIN
  • RUSSIAN GDP MAY CONTRACT IN 2Q OR 3Q VS YR EARLIER: ORESHKIN

Bloomberg reports that Russia’s economy may halt or contract in 2Q or 3Q, citing Maxim Oreshkin, head of Finance Ministry’s strategic forecasting dept.

It seems that we’ll get negative growth again in the second quarter compared with the previous quarter.” Oreshkin says

Continue reading »

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Apr 21

- Ukraine and the grand chessboard (Asia Times, April 17, 2014):

By Pepe Escobar

The US State Department, via spokeswoman Jennifer Psaki, said that reports of CIA Director John Brennan telling regime changers in Kiev to “conduct tactical operations” – or an “anti-terrorist” offensive – in eastern Ukraine are “completely false”. This means Brennan did issue his marching orders. And by now the “anti-terrorist” campaign – with its nice little Dubya rhetorical touch – has degenerated into farce.

Now couple that with NATO secretary general, Danish retriever Anders Fogh Rasmussen, yapping about the strengthening of military footprint along NATO’s eastern border: “We will have more planes in the air, mores ships on the water and more readiness on the land.”

Welcome to the Two Stooges doctrine of post-modern warfare.

Pay up or freeze to death

Continue reading »

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Apr 21

- Depositor In Failed Russian Bank Loses It, Takes Hostages, Demands $700,000 Ransom (ZeroHedge, April 20, 2014):

Earlier today, the Central Bank of Russia announced that starting April 21, it would revoke the license of Moscow’s Bank Zapadny. According to reports, “the bank had cooked its books and failed to comply with regulations on the amount of assets a financial organization must maintain to ensure its stability, the central bank said.” In other words, your typical FDIC Failure Friday only on Monday morning. Hardly notable. It is what happened next that was shocking. Shortly after the bank shutdown announcement, an armed man took three hostages at a Belgorod branch of precisely this failed Bank Zapadny.

Considering the bank is located in a Russian city in proximity to Ukraine some early speculation suggested the two may be related, however it appears
this may simply be the latest case of a disgruntled bank client taking matters into his own hands.  As RT reports, “he may be a client of the bank wishing to withdraw his deposit despite the bank losing its license…..Life News tabloid says it has identified one of the attackers as 46-year-old Aleksandr Vdovin, a client who holds the bank’s promissory notes for a large sum, and who decided to reimburse them at gunpoint.”

belgorod 1_0

belgorod 2_0

Well, that’s one way of dealing with bail-ins…

RT reports more: Continue reading »

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Apr 21

- Madness! (The Cobden Centre, April 15, 2014):

“Central bankers control the price of money and therefore indirectly influence every market in the world. Given this immense power, the ideal central banker would be humble, cautious and deferential to market signals. Instead, modern central bankers are both bold and arrogant in their efforts to bend markets to their will. Top-down central planning, dictating resource allocation and industrial output based on supposedly superior knowledge of needs and wants, is an impulse that has infected political players throughout history. It is both ironic and tragic that Western central banks have embraced central planning with gusto in the early twenty-first century, not long after the Soviet Union and Communist China abandoned it in the late twentieth. The Soviet Union and Communist China engaged in extreme central planning over the world’s two largest countries and one-third of the world’s population for more than one hundred years combined. The result was a conspicuous and dismal failure. Today’s central planners, especially the Federal Reserve, will encounter the same failure in time. The open issues are, when and at what cost to society ?
- James Rickards, ‘The death of money: the coming collapse of the international monetary system’, 2014. [Book review here]

“Sir, On the face of it stating that increasing the inheritance tax allowance to £1m would abolish the tax for “all except a very small number of very rich families” (April 5) sounds a very reasonable statement for the Institute for Fiscal Studies to make, but is £1m nowadays really what it used to be, bearing in mind that £10,000 was its equivalent 100 years ago ?

“A hypothetical “very rich” person today could have, for example, a house worth £600,000 and investments of £400,000. If living in London or the South East, the house would be relatively modest and the income from the investments, assuming a generous 4 per cent return, would give a gross income of £16,000 a year, significantly less than the average national wage.

“So whence comes the idea that nowadays such relatively modest wealth should be classified as making you “very rich” ? The middle-aged should perhaps wake up to the fact that our currency has been systematically debased, though it may be considered impolite to say so as it challenges the conventional political and economic wisdom. To be very rich today surely should mean you have assets that give you an income significantly higher than the national average wage ?”
- Letter to the editor of the Financial Times from Mr John Read, London NW11, 12 April 2014

 

“The former coach house in Camberwell, which has housed the local mayor’s car, was put on the market by Southwark council as a “redevelopment opportunity”. At nearly £1,000 per square foot, its sale value is comparable to that of some expensive London homes.”
- ‘London garage sells for £550,000’ by Kate Allen, The Financial Times, 12 April 2014.

“Just Eat, online takeaway service, slumped below its float price for the first time on Tuesday as investors dumped shares in a raft of recently floated web-based companies amid mounting concern about their high valuations..

“Just Eat stunned commentators last week when it achieved an eye-watering valuation of £1.47 billion, more than 100 times its underlying earnings of £14.1 million..

““They have fallen because the company was overvalued. Just Eat was priced at a premium to Dominos, an established franchise that delivers and makes the pizzas and has revenues of £269 million. Just Eat by comparison is a yellow pages for local takeaways where there is no quality control and no intellectual property and made significantly less revenues of £96.8 million. A quality restaurant does not need to pay 10 per cent commission to Just Eat to drive customers through the door,” Michael Hewson, chief market analyst at CMC Markets said.”
- ‘Investors lose taste for Just Eat as tech stocks slide’ by Ashley Armstrong and Ben Martin,
The Daily Telegraph, 8 April 2014.

Keep interest rates at zero, whilst printing trillions of dollars, pounds and yen out of thin air, and you can make investors do some pretty extraordinary things. Like buying shares in Just Eat, for example. But arguably more egregious was last week’s launch of a €3 billion five-year Eurobond for Greece, at a yield of just 4.95%. UK “investors” accounted for 47% of the deal, Greek domestic “investors” just 7%. Just in case anybody hasn’t been keeping up with current events, Greece, which is rated Caa3 by Moody’s, defaulted two years ago. In the words of the credit managers at Stratton Street Capital, Continue reading »

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Apr 21

- US financial showdown with Russia is more dangerous than it looks, for both sides (Telegraph, April 16, 2014):

The US Treasury faces a more formidable prey with Russia, the world’s biggest producer of energy with a $2 trillion economy, superb scientists and a first-strike nuclear arsenal

The United States has constructed a financial neutron bomb. For the past 12 years an elite cell at the US Treasury has been sharpening the tools of economic warfare, designing ways to bring almost any country to its knees without firing a shot.

The strategy relies on hegemonic control over the global banking system, buttressed by a network of allies and the reluctant acquiescence of neutral states. Let us call this the Manhattan Project of the early 21st century.

“It is a new kind of war, like a creeping financial insurgency, intended to constrict our enemies’ financial lifeblood, unprecedented in its reach and effectiveness,” says Juan Zarate, the Treasury and White House official who helped spearhead policy after 9/11.

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Apr 20

Barclays

- Barclays Latest To Exit Commodity Trading, Layoff Several Thousand Staff (ZeroHedge, April 20, 2014):

 With JPMorgan and Deutsche Bank having exited the commodities business (and numerous other banks discussing it ahead of the Fed and regulators’ decisions over banking rules of ownership), it appears a few short months of regulatory scrutiny is enough to warrant more broad-based cuts across bulge-bracket banks historically most manipulated and profitable business units. As The FT reports, Barclays, one of the world’s biggest commodities traders, is planning to exit large parts of its metals, agricultural and energy business in a move expected to be announced this week. This comes on the heels of Barclays shuttering its power-trading operations (after refusing to pay $470mm in fines) with CEO Jenkins expected to announce several thousand layoffs.

Continue reading »

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Apr 20

Putin-Gold

- This Means War: US To Target Putin’s Personal $40 Billion Stash (ZeroHedge, April 20, 2014):

While the White House has continually threatened further sanctions against Russia for non-de-escalation (even as it un-de-escalates itself), the specifics of the additional sanctions have been sparse. German CEO warnings over blowback from economic sanctions… the “nonsense” of replacing Russian gas with US gasthe Russian warnings of “interdependence” and “boomerangs”… all reduce the West’s arsenal of financial sanctions. But, as The Times of London reports, perhaps the US has found a crucial pain point for Putin – a sanctions regime that would target Putin’s personal wealth, which includes a reported $40 billion stashed in Swiss bank accounts.

Continue reading »

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Apr 20

- Peak Smuggling: Indian Has 12 Gold Bars Removed From His Stomach (ZeroHedge, April 20, 2014):

While US central bankers seem to believe that you can eat iPads, it seems one Indian fellow has taken the ongoing restrictions on gold imports, owning, or transacting in India to a whole new level. As we have noted previously – have led to an epidemic of smuggling as Indians continue to horde the precious metal (the only true source of financial security in their view) by any means possible. As The BBC reports, 12 bars of gold have been removed from the stomach of a 63-year-old businessman in the Indian capital Delhi. The surgeon said he had never seen a “case like this before,” and customs officials were called and confiscated the gold – where whistleblowers for gold smuggling are rewarded more richly than for cocaine and heroine smuggling.

20140420_gold

As The BBC reports, and as we have noted before, India, the world’s largest consumer of gold, has seen a record rise in smuggling after a rise in duty on imports of metal to curb the current account deficit.

Last year India’s government hiked the import duty on gold three times to curb demand for the precious metal. Gold imports, which had peaked at 162,000kg in May 2013, came down to 19,300kg in November after the hike.

But this takes the proverbial biscuit… Continue reading »

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Apr 20

FYI.


- The Secret World Of Gold (ZeroHedge, April 20, 2014):

In light of the Chinese demand we discussed earlier, the ongoing manipulation of ‘rigged’ markets everywhere, and rising geopolitical tensions (as the de-escalation continues), we thought it worth dusting off this excellent  and wide-ranging look at the history and present of the barbarous relic, gathering many perspectives (pro and con) on gold.

The following documentary moves from historical shipwrecks to Nazi ‘death gold’ and England’s war chest to recent years where widespread economic uncertainty has given the yellow metal a “new luster in the world of high finance.” Valued for its permanence, beauty and scarcity, people will lie, cheat, steal and kill in the name of gold; and the clip provides color on many of the market manipulations of the last few years. As MacDonald says, whether it’s a few gold coins or gold bars stored in one of the many vaults around the world, many investors are taking a shine to gold. But there’s not a lot of it. It is said that, even melted down, there would not be enough to fill an Olympic swimming pool. Some claim that much of the gold held by the Bank of Canada, the Bank of England, the Federal Reserve and Fort Knox is gone – that for every 100 ounces of gold traded, there exists only one ounce of real, physical gold. So, where is the gold – and who really owns it?

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Apr 20

- BNP Banker, His Wife And Nephew Murdered In Belgium (ZeroHedge, April 20, 2014):

In the beginning it was banker suicides. Then about two weeks ago, suicides were replaced by outright murders after the execution-style killing of the CEO of a bank in otherwise sleepy (and tax evasive) Lichtenstein by a disgruntled client. Then on Friday news hit of another execution-type murder in just as sleepy, if not so tax evasive, Belgium, where in the city of Vise, a 37-year-old Director at BNP Paribas Fortis was murdered alongside his wife and a 9 year old nephew in a premeditated and orchestrated drive-by shooting.

L’venir reports:

According to Marcel Neven, Mayor of Vise, nothing can yet explain what caused the violent shooting that rocked the neighborhood sports hall of his town this Friday, April 18, late at night. A man of 37 years, Benedict Philippens, bank manager Ans-Saint-Nicolas, was shot. A little 9 year old boy, living in Dolhain, was also killed. A lady, the wife of the man and the boy aunt and godmother, Carol Haid, 37 also died of his injuries on Saturday, in the morning. She was hit by three bullets in the back, said a judicial source.

According to information from the survey and some witnesses, a car waiting outside their house Berneau street near the sports hall Visé. When the victims’ car is back in the driveway, shots were fired from the car that waited patiently. The author of the shots is actively sought. Continue reading »

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Apr 20


Al Jazeera April 18, 2014

Description:

Eighty thousand buildings fill Detroit’s landscape, the result of 50 years of decline. Unsightly and dangerous abandoned buildings line city streets in crime-filled neighborhoods. Now, Detroit is embarking on an effort to clean house. In its bankruptcy restructuring, the city has proposed to set aside half a billion dollars toward demolishing and fixing up rundown buildings. Bisi Onile-Ere reports from Detroit, Michigan.

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Apr 20

- ‘More sanctions against Russia is mutually assured economic destruction’ (RT, April 18, 2014):

Patrick L Young is expert in global financial markets working in multiple disciplines, ranging from trading independently to running exchanges.

At this juncture more sanctions is ultimately economic suicide, and mutually assured economic destruction, global financial markets expert Patrick Young told RT.

“The West is not remotely secure enough in its own economic recovery for the economy to actually withstand sanctions,” Patrick added.

“Stage one, stage two sanctions really don’t demand too much, they are the equivalent in naval warfare of firing a shot across the bows of another ship in order to warn them that there could be some other problems ahead,” he said.

On Thursday the President Barack Obama said that his administration is prepared to take further actions against Russia if the Geneva agreement concerning the crisis in Ukraine fails to bear fruit.

Patrick Young believes, the US is pursuing its own interests pressing with threats of more sanctions on Moscow. Continue reading »

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Apr 19

- “Everything we are told about deflation is a lie” (The Cobden Center, April 9, 2014):

“The European Central Bank has given its strongest signal yet that it is prepared to embrace quantitative easing to prevent the euro zone from sliding into deflation or even a prolonged period of low inflation.”
- ‘Draghi strengthens QE signal’, Financial Times, April 4, 2014.

Yes, heaven protect Europe’s embattled citizens and savers from a prolonged period of low inflation. How could they possibly survive it ? Continue reading »

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Apr 19

- The One Thing Most Desired By Chinese Consumers Is… (Zerohedge, April 19, 2014):

Hint: it’s not designer clothes, shoes, bags or watches.

China gold demand

And some additional explanation from the World Gold Council:

Continue reading »

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Apr 19

- What Happened To The Middle Class? The Infographic (ZeroHedge, April 18, 2014)

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Apr 19

Despite complex trade rules against doing business with Iran, a corporate jet with a small American flag turned up in Tehran
Despite complex trade rules against doing business with Iran, a corporate jet with a small American flag turned up in Tehran.

- Iran Gets an Unlikely Visitor, an American Plane, but No One Seems to Know Why (New York Times, Aprill 18, 2014):

President Obama has warned that Iran is not open for business, even as the United States has loosened some of its punishing economic sanctions as part of an interim nuclear pact.

Yet on Tuesday morning, Iran had an unlikely visitor: a plane, owned by the Bank of Utah, a community bank in Ogden that has 13 branches throughout the state. Bearing a small American flag on its tail, the aircraft was parked in a highly visible section of Mehrabad Airport in Tehran.

But from there, the story surrounding the plane, and why it was in Iran — where all but a few United States and European business activities are prohibited — grows more mysterious.

Continue reading »

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Apr 19

- George Carlin: The American Dream:


- The Political Conspiracy Behind the Bankruptcy of Detroit: Anatomy of a Crime  (WSWS, Feb 21, 2014):

The Workers Inquiry into the Bankruptcy of Detroit and the Attack on the DIA & Pensions was held Saturday February 15 at Wayne State University. The WSWS published an initial report on the meeting on February 17. Today we publish an edited version of the report to the Inquiry delivered by Larry Porter, assistant national secretary of the Socialist Equality Party and chairman of the Workers Inquiry.
Video coverage of Lawrence Porter’s full report to the Inquiry

[Click for slide 1]

[Click for slide 2]

Why was Detroit taken into bankruptcy?

In my report, I have the responsibility of uncovering the evidence of a crime.

Continue reading »

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Apr 19

bankers-wars
Image by Terry Robinson

- Bankers are Behind the Wars (Washington’s Blog, April 18, 2014):

All Wars Are Bankers’ Wars

Former managing director of Goldman Sachs – and head of the international analytics group at Bear Stearns in London (Nomi Prins) -  notes:

Throughout the century that I examined, which began with the Panic of 1907 … what I found by accessing the archives of each president is that through many events and periods, particular bankers were in constant communication [with the White House] — not just about financial and economic policy, and by extension trade policy, but also about aspects of World War I, or World War II, or the Cold War, in terms of the expansion that America was undergoing as a superpower in the world, politically, buoyed by the financial expansion of the banking community. Continue reading »

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Apr 19

- BP Manager In Charge of Cleaning Up the Gulf Oil Spill – Instead of Actually Cleaning Up – Committed Insider Trading and Sold $1 Million of BP Stock Before the Extent of the Spill Became Public Knowledge (Washington’s Blog, April 18, 2014):

The Head of BP Also Sold Shares After Problems With the Well Were Apparent to Insiders

The Securities and Exchange Commission announced today:

The Securities and Exchange Commission today charged a former 20-year employee of BP p.l.c. and a senior responder during the 2010 Deepwater Horizon oil spill with insider trading in BP securities based on confidential information about the magnitude of the disaster.  The price of BP securities fell significantly after the April 20, 2010 explosion on the Deepwater Horizon rig and the subsequent oil spill in the Gulf of Mexico, resulted in an extensive clean-up effort.

Continue reading »

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