David René de Rothschild

Rothschilds Continuation Holdings AG is a bank holding company which through its subsidiaries, provides banking, treasury, investment banking, fund management, private banking and trust management services to governments, corporations and individuals worldwide. The company is based in Zug, Switzerland. Rothschilds Continuation Holdings AG operates as a subsidiary of Concordia B.V.


http://www.rothschild.com/


By: Aaron Wilson 

U.S. Taxpayer's Share of Greek Debt

 Complete default benefits the Europeans and leaves the U.S. on the hook for the balance.

The Bank for International Settlements Quarterly Review for June, 2011 is the first black and white publication I’ve seen on the actual size of the Greek, Irish and Portuguese (PIG’s) debt problems as well as how much the United States and individual tax payers may be on the hook for if it all goes pear shaped.

There are four interesting points concerning these debt issues. These include, who owns the debt, who insured the debt, who profited along the way and finally, who may be left holding the bag.

Initially, Europe is responsible for approximately 95% of the debt of these countries. Most of this would be born directly by Germany and France. However, these countries have purchased Credit Default Swaps (CDS) from U.S. banks to protect themselves on approximately half of the debt they own. This means that if the countries in question end up defaulting on their loans the U.S. banks that sold the credit default insurance will be on the hook for making France and Germany whole again.

The data in the tables is pretty extensive but the end numbers look like there is roughly $890 billion in loans that are in danger of defaulting. The U.S. exposure to these losses both directly and via credit default insurance that U.S. banks have sold is about $200 billion. More than half of that is in Greece, which will be the first to default. U.S. banks are on the hook for approximately $100 billion in credit default insurance to PIG countries with about $35 billion directly insuring Greek loans. The total outstanding credit default insurance sold by U.S. banks to European countries is more than $1.5 trillion dollars.

A quick recap - Germany and France bought Greek debt then turned to U.S. banks to buy insurance on the debt Greece and other countries sold them. U.S. banks collected the fees and sold the insurance even as they were recovering from their own bad loans and accepting bailout money to heal their balance sheets. The fees they collected went on to pad their bottom line and allowed them to post record 2010 earnings. These earnings allowed banks to payout record bonuses for a second consecutive year.

The pending default of Greece will leave U.S. banks on the hook for at least $35 billion dollars. Ireland will add $54 billion and Portugal another $41 billion. These banks also hold direct debt to the tune of another $63 billion. When the market moves on Greece, it will move on these other countries as well. It is simple stampede mentality. Remember the collapse of ’08?

The AIG bailout was due to their inability to meet $85 billion in obligations. It was deemed, “too big to fail.” Bank of America and Citigroup each received $45 billion in TARP money following the sub prime implosion. JP Morgan, Goldman, Wells Fargo and others required governmental assistance as well. Total U.S. bank exposure to Portugal, Ireland and Greece is more than $193 billion.

There are only two arguments left to decide in the coming debacle. First, will we have a partial or a complete default? Complete default benefits the Europeans and leaves the U.S. on the hook for the balance. Secondly, when France and Germany come to the U.S. seeking their insurance payouts will our banks be able to afford them. I don’t believe these banks, funded with taxpayer money and using our savings accounts as collateral for making the loans have the resources to cover their losses. Therefore, the taxpayer may be left holding the bag…again.

Is AIG Selling Credit Default Swaps (CDS) to Greece? Will American Taxpayers Be On The Hook Again?

THE RETURN OF THE CDS – WHY YOU SHOULD BE CONCERNED

Remember, Credit Default Swaps or CDS, were one of the culprits behind the “toxic mortgage scam” that brought down the US economy.

At the behest of their Democratic political masters Fannie and Freddie ”provided” mortgages to millions who could not pay. Then Fannie and Freddie sold the “toxic mortgages” as investment securities with the help of the likes of Goldman Sachs. Finally, AIG “insured” the “securities” by selling Credit Default Swaps to back up the worthless mortgages and put the US taxpayer on the hook for paying off the “toxic debt”. While most of the parties made billions – the US taxpayer got stuck with bill. 

Fast Forward To Greece

Is AIG creating a Greek Debt Bubble – just like the ”housing bubble” AIG helped create?

Greece is purchasing Credit Default Swaps (CDS) to insure its national debt.

“Credit-default swaps pay the buyer face value if a borrower fails to meet its obligations, and prices decline as perceptions of creditworthiness improve. A basis point equals $1,000 annually on a contract protecting $10 million of debt.”http://www.businessweek.com/news/2010-05-11/bank-swaps-libor-show-doubts-on-europe-bailout-credit-markets.html

The Greek markets aren’t quite buying the latest bailout, since they price-in a higher chance of default than just a month ago. Moody’s isn’t buying the bailout either. Which is odd, because theoretically Greece has been just provided a life-line that should at the very least allow it to meet its current outstanding debt obligations.

Rebecca Napela Found Dead At SoCal Mansion of Pharmaceutical CEO

KNX 1070′s Tom Reopelle reports officials are still figuring out how to proceed with the investigation.


Rebecca Nalepa, 32, was found dead at the historic Spreckels mansion in Coronado, hanging from a balcony in the nude with her hands tied behind her back and her feet bound. Rebecca Nalepa, 32, was found dead at the historic Sprpeckels mansion in Coronado, hanging from a balcony in the nude with her hands tied behind her back and her feet bound. Miss Nalepa was a Burmese woman who had been in a relationship with Mr. Shacknai, the CEO of Medicis, a pharmaceutical company based in Arizona. News cameras circled overhead as her naked body was lying sprawled in a grassy courtyard, with what appeared to be orange electrical wire trailing to one side. Firefighters tried to revive Miss Nalepa, who was pronounced dead at the scene. Tim Curran, with the San Diego County Sheriff's Department, described the circumstances as 'very suspicious' telling NBC San Diego that it appeared that the victim died a 'violent' death. 

Contaminated Water at Fukushima Increased to Over 120,000 Tons

121,000 tonnes of highly contaminated water alone as of June 29, according to TEPCO, an increase of about 16,000 tonnes since the end of May.

From Asahi Shinbun (1:07AM JST 6/30/2011):

東 京電力は２９日、福島第一原子力発電所１～４号機などにたまった高濃度の放射能汚染水が２８日現在で約１２万１千トンに上ると発表した。５月末時 点から１万６千トン増えた。内訳は１～４号機の原子炉建屋やタービン建屋などに計約９万９４４０トン、汚染水を一時保管している集中廃棄物処理施設に計約 ２万１７３０トン。

TEPCO announced on June 29 that the highly contaminated water in the buildings of Reactors 1 through 4 was about 121,000 tonnes as of June 28. It is an increase of 16,000 tonnes since the end of May. There are 99,440 tonnes of water in the reactor buildings and turbine buildings of the Reactors 1 through 4, and 21,730 tonnes in the Central Waste Processing Facility that temporarily stores the highly contaminated water.

東電は浄化処理を続けることによって、６月２９日からの１週間で汚染水を現状から３千トン減らせるとしている。ただし、浄化処理施設の稼働率８０％が前提。１７日から２８日までの実績は約５５％で、処理量は約７２３０トンだった。

TEPCO thinks it will be able to reduce the amount of the water by 3,000 tonnes in one week starting June 29. However, that schedule assumes the water treatment system to run at the operating rate of 80%. From June 17 to 28, the system ran at about 55%, processing 7,230 tonnes of water.

By the way, the water treatment system is stopped again, for yet another unknown reason. On June 29 alone, the system had to be stopped at least twice for water leakage in different parts of the system before the alarm that sounded in the evening shut down the entire system again. TEPCO is investigating.