" ... While we're on the topic of J.P. Morgan and their...

" ... While we're on the topic of J.P. Morgan and their aggregate 87 Trillion Derivatives Book [at Sept. 30, 2008] - we should all remember that our current financial crisis, that slew the likes of AIG, Lehman, Bear Stearns and soon Citi and BofA - these failures were all a direct result of blowups in their OTC derivatives exposure - derivatives exposures which pale in comparison to those held by J.P. Morgan Chase - like their "short" gold position for instance:

http://www.321gold.com/editorials/kirby/kirby022609/3_big.gif

source: Comptroller of the Currency Q3/08

So, how is that toxic financial instruments - which have been lethal to so many financial institutions can be held in even greater concentration at J.P. Morgan without the same deleterious, adverse effects????

Likely Answer: It was back in 2006 when Dawn Kopecki reported in BusinessWeek Online in a piece titled, Intelligence Czar Can Waive SEC Rules,

"President George W. Bush has bestowed on his [then] intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye."

What this means folks, is if J.P. Morgan is deemed to be integral to U.S. National Security - they could be "legally" excused from reporting their true financial condition.

What would you reckon the Vegas odds are on that happening?

The Big Question That No One Dares Ask?

With the walking dead Citibank and BofA both circling the toilet bowl and eying the drain while facing the prospects of impending Fed mandated "stress tests" - is J.P. Morgan now going to ..... "

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This is an extract fro Kirby's The Statue of the Three Lies which is interesting reading at

http://www.321gold.com/editorials/kirby/kirby022609.html

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