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Wall Street Breakfast: Must-Know News

Not enough people are being put in jail as per sarbox.


On Jan 29 08:25 AM Thoreau wrote:

> The Fed is insolvent on a static basis and the whole financial system
> is bankrupt. Why don’t the accounting firms who audit the bankrupt
> financial institutions listen to Roubini? Roubini has been right
> about this whole mess going back to 2005 and made public his analysis,
> this is not a case of not being able to know the unknown. How can
> accounting firms like KPMG continue to issue fraudulent financials
> for Banks like Citi, the math is there for all to see.
> …………………………………………………………...
> Nouriel Roubini and Elisa Parisi-Capone of RGE Monitor release new
> estimates for expected loan losses and writedowns on U.S. originated
> securitizations:
> • Loan losses on a total of $12.37 trillion unsecuritized loans are
> expected to reach $1.6 trillion. Of these, U.S. banks and brokers
> are expected to incur $1.1 trillion.
> • Mark-to-market writedowns based on derivatives prices and cash
> bond indices on a further $10.84 trillion in securities reached about
> $2 trillion ($1.92 trillion.) About 40% of these securities (and
> losses) are held abroad according to flow-of-funds data. U.S. banks
> and broker dealers are assumed to incur a share of 30-35%, or $600-700
> billion in securities writedowns.
> • Total loan losses and securities writedowns on U.S. originated
> assets are expected to reach about $3.6 trillion. The U.S. banking
> sector is exposed to half of this figure, or $1.8 trillion (i.e.
> $1.1 trillion loan losses + $700bn writedowns.)
> • FDIC-insured banks’ capitalization is $1.3 trillion as of Q3 2008;
> investment banks had $110bn in equity capital as of Q3 2008. Past
> recapitalization via TARP 1 funds of $230bn and private capital of
> $200bn still leaves the U.S. banking system borderline insolvent
> if our loss estimates materialize.
> …………………………………………………………...
>
> If Professor Roubini is correct and I fear he is, why don’t any of
> the accounting firms listen to him? What about starting with the
> accounting firms and perhaps, one of the worst offenders KPMG. <br/>
>
> KPMG audits Citi, how can anyone trust their financial statements?
> Why does anyone even care what KPMG has to say? Why does anyone want
> to work at KPMG? KPMG audits a disproportionate percentage of financials
> yet totally missed the banking collapse. Exactly what is KPMG expert
> at and why would anyone listen to them after all their failed audits
> of failed institutions? Many as early as 2005 predicted the financial
> meltdown and the unsustainable lending pattern of the financials
> including Dr. Roubini of the Stern School of economics, why didn’t
> KPMG listen. If I were a partner or employee at KPMG I would be extremely
> concerned about all the pending lawsuits and potential criminal liability
> of KPMG. You know for a fact that Tim Flynn the CEO and Joe Loonan
> the head lawyer will not stand behind the partners as evidenced by
> the tax partners KPMG threw under the bus when the DOJ came a calling.
> In fact, Flynn, completely reneged on the former O’Kelley’s promise
> to support the tax partners (after he got brain cancer) and lied
> to the tax partners by pulling the carpet out from under the them
> by hiring Bennett and Holmes to not only lie about the tax partners
> to the DOJ but deny them legal fees for defense at the DOJ’s request.
> Loonan, Holmes and Flynn, totally screwed the tax partners and an
> email exists wherein Loonan specifically states that in the KPMG
> tax settlement with the DOJ he has no idea if any of the facts are
> correct but KPMG better sign or the DOJ will put them out of business
> and ends the email by saying: “freedom is just another word for nothing
> left to lose”. The point of course is those that run KPMG have no
> honor, are lying scum and if you are employed by KPMG and something
> bad happens, KPMG will do everything it can to ensure it survives
> at your expense. Of course something bad has happened, the banking
> collapse was a no brainer, predicted by many and most of the KPMG
> audits of the financials are riddled with fraud. The lawsuits and
> criminal investigations are coming, no doubt. All KPMG partners and
> employees should be very concerned as KPMG has no problem throwing
> them under the bus for a life of ass raping if it will save KPMG
> a nickel. Why any clients would accept advice or rely on KPMG for
> anything shows a total lack of due diligence and perhaps, negligence
> by those clients choosing to use KPMG. Of course, the last sentence
> does not apply to those clients that are actually consensually engaging
> in fraud with KPMG. The firm of KPMG has no honor or expertise in
> any matter just self interested thieves like Flynn, Holmes and Loonan
> attempting to make as much money as possible for themselves before
> the firm implodes. Many emails exist concerning KPMG’s malevolence
> and will be disseminated over time. Thoreau has a great quote, “no
> one can associate themselves with the U.S. Government without disgrace”,
> the same applies to KPMG, no one can associate themselves with KPMG
> without disgrace.
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