|energyi: CONSPIRICY THEORISTS may like this: some of it fantasy:
Most Americans are unaware of the J.P. Morgan/Chase Manhattan merger and of its significance. Chase Manhattan is a major Federal Reserve shareholder, as is CitiBank.
Now, both J.P. Morgan Chase and CitiBank have their a$$ets hanging bare in the derivatives market. They have also been manipulating the price of gold and is the main reason they are in trouble now financially.
Just how massive is Morgan's derivative gamble? Get this -- it has a potential, or notional, value of $29 trillion. That is in addition to net credit exposure of $94.7 billion. Trillions in derivatives. That is no typo. As in three times the nation's entire annual gross domestic product. Citigroup, of which CitiBank forms a large part, has $9 trillion in derivative exposure.
The Chase and Citigroup investment banks are the financial cornerstones of the Rockefeller empire and of Enron.
JP Morgan Chase, one of Enron's two main bankers. It was involved in an offshore company used by the energy trader to move risk off its balance sheet. The disclosure of the existence of such off-balance-sheet arrangements accelerated the downward spiral in the company's share price and led to its eventual bankruptcy. The Securities and Exchange Commission is now investigating whether JP Morgan has also misled its shareholders by making loans to Enron in the form of oil and gas trading contracts. Insurers who face a claim from the bank on surety bonds that guaranteed the contracts allege that they were loans dressed up as trades to keep them off the bank's balance sheet. JP Morgan has already revised its estimate of its Enron exposure from $900m to $2.6bn (£620m to £1.8bn.)The SEC probe is adding to the criticism of risk control procedures at the bank, formed in 2000 by the merger of Chase Manhattan with the venerable House of Morgan. JP Morgan and Enron's other lead bank, Citigroup, are the largest of a new generation of banking groups formed by combining commercial banks and investment banks to provide a one-stop shop for big corporate clients.
More that half the shareholdings in the Federal Reserve are controlled by large New York City banks, including National City Bank (now CitiBank), National Bank of Commerce, First National Bank, Chase National Bank, and Marine National Bank. When Rockefeller's National City Bank merged with J.P. Morgan's First National Bank in 1955, the Rockefeller group owned 22 percent of the shares of the Federal Reserve Bank of New York, which in turn holds the majority of shares in the Federal Reserve System - 53 percent. |