Independent Bankers' Bank, Springfield, IL, with approximately $585.5 million in assets and $511.5 million in deposits was closed. The FDIC created a bridge bank, Independent Bankers' Bank Bridge Bank (IBB Bridge Bank, N.A.), to take over operations. (PR-237-2009)
New South Federal Savings Bank, Irondale, AL with approximately $1.5 billion in assets and approximately $1.2 billion in deposits was closed. Beal Bank, Plano, TX has agreed to assume all deposits. (PR-236-2009)
Citizens State Bank, New Baltimore, MI, with approximately $168.6 million in assets and $157.1 million in deposits was closed. Deposit Insurance National Bank of New Baltimore, New Baltimore, MI has agreed to assume insured deposits. (PR-235-2009)
Peoples First Community Bank, Panama City, FL with approximately $1.8 billion in assets and approximately $1.7 billion in deposits was closed. Hancock Bank, Gulfport, MS has agreed to assume all deposits, excluding certain brokered deposits. (PR-234-2009)
RockBridge Commercial Bank, Atlanta, GA, with approximately $294.0 million in assets and approximately $291.7 million in deposits was approved for payout by the FDIC Board of Directors. (PR-233-2009).
OK lets start with the gold and silver news of the day:
Gold closed yesterday up by $4.00 to 1110.80. Silver rose by 7 cents to 17.25.
Yesterday morning we received the data on the volume on the gold comex and silver comex.
With respect to the gold comex, the estimated volume reported by the Nymex people was 227,000.
I thought that the volume would be in excess of 250,000 and it did. The final volume was 257,000 and I will include the silver and gold final results at the conclusion of my commentary.
However, all eyes was on the open interest figures. I gave 3 scenarios. Almost all financial analysts thought that OI would decline by 15000 to 20,000 contracts due to the massive
hit on gold. That was scenario No 1. I thought it would be scenario No 2 with a decline of only 1000. Scenario NO 3 was a rise in OI.
Believe it or not, the final OI turned out to be scenario No 3, a rise of 475 contracts.
In other words, the weaker hands that left were replaced with a greater number of stronger hands. Our cartel bankers are having midnight oil meetings this weekend. They are facing
a determined set of buyers willing to take on the corrupt bankers. We still have 1100 contracts left to be hit (110,000 oz or 3 tonnes of gold).
The same scenario is being played out in London as many contracts of gold and silver are waiting to be served.
The banking cartel solved nothing by their raids during these past 2 weeks. They have lowered the price of gold by $120.00 and increased their shorts in the process.
The lower price in gold caused demand to increase throughout the world.
The CFTC have many problems to contend with. They are going to have problems explaining how the ETF increased their inventory by 4 tonnes, over in London England, as the bankers here shorted gold
at the Comex.
Here is famed John Brimelow with his analysis on the open interest which is identical to mine:
The COT report, released after the market closed confirmed what we have telling you. The stronger speculators are taking on more gold and silver contracts and our wonderful and fraudulent
bankers are shorting more and more gold and silver. Here is the COT report to see for yourself. I remind you that this data is basis Tuesday. The big raid on gold and silver was on Thursday and the COT next
week will encompass these figures.
*The large specs decreased their long positions by only 2474 contracts. More shorts got out than longs as they reduced them by 4153.
*The commercials increased longs by 290 contracts and increased shorts by 4,895.
*The small specs increased longs by 979 contracts and reduced shorts by 1947.
We had similar results for silver. Expect next week to have an increase in the commercial shorts as the bankers dig in and supply massive gold and silver contracts in which the underlying asset
does not exit under their ownership.
It is interesting to note that regulators over in Europe have fined Citibank for fraudulently selling short Eurobonds in August 08. They fined these priestly innocent souls 25 million dollars for their crime.
Here is the story on that front:
I emailed this to the CFTC yesterday:
You should pay attention to this. Citibank in August 08 (around the same time as JPMorgan et al
shorted massive amts of silver and gold contracts) shorted huge numbers of Euro bonds all the way down in price and then bought them back at lower prices. The regulators over on that side of the pond were not happy with their antics and fined them severely.
Looks remarkably like what JPMorgan and the boys are constantly doing on this side of the pond with respect to shorting silver and gold. Here is the story in case you missed this:
MARKET PLACE; Bond Trades Far Too Agile Cost Citigroup $25 Million
A British regulator fined Citigroup more than $25 million on Tuesday for its rapid trades of billions of dollars of Eurobonds last summer, which caused prices to plummet and stirred the anger of other trading houses.
The regulator, the Financial Services Authority, ordered Citigroup to pay a £4 million ($7.3 million) penalty and to return the £9.96 million ($18.1 million) in profit it made on a trading strategy that became known in the bank as Dr. Evil.
On Aug. 2, Citigroup sold 11.3 billion euros (currently $13.63 billion) in bonds, the equivalent of an average day's trading volume on the MTS electronic trading platform, in 18 seconds -- swamping the market and causing prices to buckle. It also sold 1.5 billion euros on domestic cash markets. Less than an hour later, it bought back 3.8 billion euros ($4.6 billion) of bonds at a far cheaper price, gaining a swift profit.
Earlier in the day, Citigroup had bought Eurobond futures contracts, but it was unclear how large those purchases were.
Though the trades were not illegal, they angered the other bond houses, which said the bank violated an unspoken agreement not to flood the market to drive down prices.
Thomas G. Maheras, Citigroup's chief executive for global capital markets, acknowledged in a memo to employees six weeks later that the bank ''failed to fully consider its impact on our clients, other market participants and our regulators.''
On Tuesday, the Financial Services Authority cited Citigroup for breaches of principles that require a company to ''conduct its business with skill, care and diligence'' and to ''take reasonable care to organize and control its affairs responsibly and effectively.''
It stopped short of charging Citigroup with market manipulation. The six traders who executed the deals were not individually fined, and will be reinstated in their jobs. No one has been fired over the trades.
Executives from the bank said they were pleased with the result.
Charles O. Prince, the chief executive, said in a statement, ''Citigroup and its employees have made a number of changes in how we do things as a result of this case, and we continue to focus on our shared responsibilities to our clients, to each other and to the Citigroup franchise.''
The bank has increased its controls and employee training, and strengthened the compliance staff on its trading floor.
A month before the trades, Citigroup encouraged its European bond traders to increase profits through the development of new strategies, the Financial Services Authority said. The Dr. Evil strategy essentially amounted to ''sell and buy back'' dealings on a very large scale, based on discrepancies in prices.
MTS, the Rome-based electronic debt trading platform where the trades were executed, requires all parties to respond when one trader makes an offer at the current market price in order to increase liquidity. Given those rules, Citigroup's trades left rivals irate.
European governments, whose bond prices fell sharply, have since been withholding business from Citigroup. The bank now ranks No. 26 in managing debt for European governments, down from 12th last year, according to Bloomberg data.
The Citigroup fine was the second largest the Financial Services Authority has levied, after the £17 million (now $30.9 million) it ordered the Royal Dutch/Shell Group to pay for overstating its oil and gas reserves.
Citigroup still faces inquiries in Italy, Belgium and Portugal, but has been cleared of wrongdoing in Germany. Spanish regulators halted their investigation.
Over the last two years, the bank has paid nearly $5 billion in fines to settle suits and investigations related to its business with WorldCom and Enron, and conduct by other units, including its Japanese private bank.
Before leaving the gold and silver front, I have been told by a reliable source, and this has yet to be confirmed that the Indian gold purchase has turned out to tungsten filled.
This is now just a rumour. I have emailed Rob Kirby and asked if he can confirm the story.
However, Jim Willie has reported to us that all allocated gold everywhere is being audited and proof of quality and weight of the bars are being analyzed as we speak.The bullion banks are resisting
owners from taking possession of their bars. We will follow up on this story and on the Indian story as to whether its gold is tungsten or not.
Here is his alert to us:
FW: contact with strong ties to info sources
huge demands for physical gold are coming from entities holding allocated gold accounts
they have deposits at gold bullion banks
they are showing up unannounced, with full paperwork, demanding gold to be handed over paperwork consists of lists, bars, dates, serial numbers, weights, and smelter hallmark brands
this is a full blown run on the bullion banks
it is unclear whether they only doubt their gold remains in possession, or if fake gold is held
they are being shown the stacks of shiny pretty gold bars, and urged not to take possession but the entities are not convinced their particular own gold bars are there
big clearing houses are owed gold bullion, and the bullion banks do not have it
at the same time, the delivery process has been corrupted big
cash bribes are being offered in bids to settle in cash without delivery in futures contracts in fact, the cash bribes are patterned in a reduction over consecutive days
this gives the impression of the extraordinary period being only a brief segment of time
this is a full blown run on the bullion banks
we are fast entering the FRAMEWORK of divergence between paper gold and physical gold
my source confirmed that the divergence is an end game symptom
geez! we might see a $970 gold price before the system just shuts down
this is a run on the gold banks
did I mention this is a run on the gold banks ??
soon we might not have any prices listed on the gold exchanges
soon we might hear of an important default, from a party using courts and legal staffs
soon the physical gold price will be some average of five known private party large volume traders
this is a run on the gold banks
I will now go into the big economic news of yesterday.
I guess the big news is that Congress is going to pass an emergency rise in the debt ceiling of 290 billion dollars. This is to last only six weeks..
The usa is spending almost 7 billion dollars per day more than they take in. If passed the debt ceiling rises to 12.39 billion. Fun and games will
beset the house in February.
Here is Bill Holter's commentary on the raise in the debt ceiling (it still must pass..odds on it will)
Here are some numbers for yesterday's trading: