Dallas Fed Panics and Tells Banks to “Cook The Books” – Bix Weir
An Exclusive You Have To See: The Last Frontier of Free Press Is Here! No More Censorship, Unlike YouTube and Others!
DALLAS FED PANICS AND TELLS BANKS TO “COOK THE BOOKS”
Yesterday I sent out an alert showing that Price/Earnings Ratios are totally and completely out of whack, thus making the stock market massively overvalued.
Today news came out that is just more proof that the Earnings part of the equation is a total lie!
Zerohedge is reporting that the Fed Dallas has told the banks to NOT write down their impaired oil/gas assets, and NOT mark-to-market as is required by US Accounting Laws.
Exclusive: Dallas Fed Suspends Energy Mark-to-Market on Default Contagion Fears
http://www.zerohedge.com/news/2016-01-16/exclusive-dallas-fed-quietly-suspends-energy-mark-market-tells-banks-not-force-shale
Which brings us to the focus of this post:
Earlier this week, before the start of bank earnings season, before BOK’s startling announcement, we reported we had heard of a rumor that Dallas Fed members had met with banks in Houston and explicitly “told them not to force energy bankruptcies” and to demand asset sales instead.
We can now make it official because moments ago we got confirmation from a second source who reports that according to an energy analyst who had recently met Houston funds to give his 1H16e update, one of his clients indicated that his firm was invited to a lunch attended by the Dallas Fed which had previously instructed lenders to open up their entire loan books for Fed oversight. The Fed was shocked by with it had found in the non-public facing records. The lunch was also confirmed by employees at a reputable Swiss investment bank operating in Houston.
This is what took place:
Dallas Fed met with the banks a week ago and effectively suspended mark-to-market on energy debts and as a result no impairments are being written down.
Furthermore, as we reported earlier this week, the Fed indicated “under the table” that banks were to work with the energy companies on delivering without a markdown on worry that a backstop, or bail-in, was needed after reviewing loan losses which would exceed the current tier 1 capital tranches.
In other words, the Fed has advised banks to cover up major energy-related losses.
END
Holy Shit!!! Since when is the Fed allowed to advise banks to break the law?!
And since when did bank officials get a free pass to fake their financial reporting based on the recommendations of the Federal Reserve??
Hint: They don’t have a free pass!
Any CEO or CFO that signs off on these fraudulent earnings is breaking the law…no matter what the Federal Reserve says.
Sarbanes Oxley 101: Section 906 – Corporate Responsibility for Financial Reports
http://www.sarbanes-oxley-101.com/SOX-906.htm
Section 906 addresses criminal penalties for certifying a misleading or fraudulent financial report.
Under SOX 906, penalties can be upwards of $5 million in fines and 20 years in prison.
A direct excerpt from the Sarbanes-Oxley Act of 2002 report for section 906:
(c) CRIMINAL PENALTIES. Whoever – (1) certifies any statement as set forth in subsections (a) and (b) of this section knowing that the periodic report accompanying the statement does not comport with all the requirements set forth in this section shall be fined not more than $1,000,000 or imprisoned not more than 10 years, or both; or (2) willfully certifies any statement as set forth in subsections (a) and (b) of this section knowing that the periodic report accompanying the statement does not comport with all the requirements set forth in this section shall be fined not more than $5,000,000, or imprisoned not more than 20 years, or both.
END
So…this means that Jamie Dimon is facing a $5M fine and 20 years in prison if his BILLIONS in oil/gas loans were not marked to market in their latest annual report…and they weren’t.
Bye, bye Jamie!
Or maybe they will just speed up the Global Collapse so it will all be lost in the chaos!
May the Road you choose be the Right Road.
Bix Weir
www.Roadtoroota.com
PS – I am taking pre-orders for Book 3 “The Road Awakens” at the link below. Book 3 is written in the same “Conversations with God” format as books 1 & 2 and deals with subjects that we are dealing with today…the rigging, the Plan for the collapse, the coming wars in American National Parks (yep) and how to survive it all. The books are personalized in a PDF format and will be sent via email at the end of January…
http://www.roadtoroota.com/public/1725print.cfm
NESARA- Restore America – Galactic News
An Exclusive You Have To See: The Last Frontier of Free Press Is Here! No More Censorship, Unlike YouTube and Others!
Source: http://nesaranews.blogspot.com/2016/01/dallas-fed-panics-and-tells-banks-to.html
Isn’t that what they’re already doing?