Dr Z

Joseph Zernik, PhD

PO Box 526, La Verne, CA 91750; Fax: 801 998-0917; Email: jz12345@earthlink.net
Blog: http://inproperinla.blogspot.com/ Scribd: http://www.scribd.com/jz123456

SUNDAY, JANUARY 3, 2010

10-01-03 Calling for reconsideration of international credit policies towards the United States
government

Date: Sun, 3 Jan 2010 12:42:31 -0500 (EST)

From: jz
To: "Ambassador of the People's Republic of China,Members of the Basel Accords Committee,and Bank of
International Settlements (BIS)

Subject: Please reconsider credit policies towards US govenment in view of

continued recklessness.

January 3, 2010

Dear Ambassador of the People's Republic of China, Members of the Basel Accords Committee,
and Bank of International Settlements (BIS):

Copied below is yet another example of the ongoing failure of US banking and financial
markets regulators, and the ongoing blatant violations of the law by US financial institutions.
Any statements made by United States government officers in testimonies before United States
Congress of "shoring up" the United States regulatory system cannot be reasonably taken at
face value. One must accept reality for what it is: The administration of President Obama and
United States Congress lost control of United States financial institutions and United States
banking and financial market regulatory agencies, which are flaunting their disregard for
United States laws, international banking accords, and international credit agreements.

The United States government can no longer plausibly be deemed as either a good-faith party
to the Basel Accords or a good-faith borrower in international credit markets.

Reckless conduct by United States government agencies exposes United States and world
financial markets to unknown risks, and those holding reserves in US denominations - to
imminent losses on a large scale. Needless to say, the United States treasury and United States
Page 2/5 January 03,
03, 2010

economy are in no position to assume such risks, raising the odds of an imminent catastrophic
failure.

With the dawn of a new decade, it appears that the only measure that would possibly bring the
United States government into treating its own citizens and the rest of the world with some
degree of integrity would be tightening of credit policies. United States government may argue
that such move by lenders would result in immediate untowardly effects. However, continued
flow of credit under current terms must be considered unreasonable in view of the increased
and unpredictable risks to lenders. Moreover, continued flow of credit under current terms
must be deemed as harmful - since it is seen by United States financial institutions and
regulatory agencies as a license to continue their ongoing dishonest, deceptive, reckless
conduct.

An alternative, proactive approach, which should also be considered, would directly link
credit polices to demonstrable performance by United States government
towards establishing publicly accountable validation (certified functional logic
verification) of large database management systems at public corporations, at
financial institutions, at regulatory agencies, at the United States courts and in correctional
facilities. It was the introduction of fraudulent database management systems at all levels over
the past three decades, which lends the United States ungovernable today.

Additionally, the Swiss government should be urged to pass and enforce laws, which
would prohibit senior United States government officials (including, but not
limited to United States judges) and officers and directors of publicly traded
United States corporations from making deposits into numbered Swiss bank
accounts while in office. Efforts should be made to keep the personal fortunes of such
persons tied to the fate of the United States dollar.

Such actions by lenders would not only stabilize markets and dramatically reduce operational
risks, but would also restore the Human, Constitutional, and Civil Rights of all who reside in
the United States.

Truly,
Page 3/5 January 03,
03, 2010

Joseph Zernik
Los Angeles County, California

http://inproperinla.blogspot.com/

Patriotic pics of sharon stone, beyonce knowles, and charlize theron,

To be added soon- deep house music!

________________________________________________________________

At 06:44 03/01/2010, Yolanda Gibson-Michaels wrote:

RE: Re: Urgent Read: SEC Mary Schapiro call to investigate FDIC Inside Trading
by Tyler Durden

Mary Schapiro Must Immediately Investigate The FDIC's

Confidential Information Leak In Another Blatant Insider Trading
Case, Then Resign
Submitted by Tyler Durden on 12/04/2009 17:39 -0800

• Federal Deposit Insurance Corporation

• FINRA
• Fund Flows
• Goldman Sachs
• Insider Trading
• Mary Schapiro
• non-performing loans
• Real estate
• Sheila Bair

The degree of insider trading in this market is getting ridiculous. And the
strangest thing is those who are executing on blatantly obvious material,
Page 4/5 January 03,
03, 2010

non-public insider information, are no longer concerned the least bit about
getting caught as they realize that the "mighty" SEC will do nothing against
them, courtesy of the example the SEC has set by finding absolutely nobody
"responsible" (except, of course, the regulator's own future employers who
thus get immunity from prosecution) for the greatest market heist in history
in which over $5 trillion has been transferred from the middle class to the
Wall Street oligarchy (future providers of paychecks for SEC staffers).

Today's grotesque example of the SEC's futility to act as even a modest

deterrent to insider trading activity: New York Community Bancorp (which,
just so happens, is a $602 million recipient of TLGP debt), whose stock
surged in the final minutes of trading for reasons (then) unknown. As
reader QevolveQ pointed out at 5:30 pm, the activity in both the stock and
the calls of the company was many standard deviations away from average
and raised major red flags. Those questions were quickly put to rest when it
became known at 6:33 pm that NYB would in fact receive FDIC subsidies to
acquire newly failed AmTrust Bank in a transaction that would be
"immediately accretive to earnings." And how wouldn't it be:

Under the terms of the agreement, the Community Bank did not acquire
any of AmTrust Bank’s non-performing loans serviced by AmTrust Bank
or any other real estate owned; construction, land, or development loans;
private-label securities, or mortgage servicing rights, nor did it acquire
any of the assets or assume any of the obligations of the holding
company.

No, those would conveniently be funded by Ms. Bair herself. The cost to the
FDIC, and US taxpayers, to make NYB a richer enterprise: $2 billion. This is
value that will go straight to the bank's bottom line. As a result of this
middle-class subsidy it was a certainty that its shares would spike.
The smoking gun here comes straight from a quick observation of NYB's
intraday P/V chart: the jump at 3:24pm on statistically significant volume is
a clear signal that someone was fully aware of the soon to be announced
transaction:

Furthermore, as QeQ highlights, "8,933 of the Dec 12 calls traded vs. 2,244
OI, finishing +300% on the day." A very solid return for a few hours of
trading. The block trades are visible below: one set of 2,500 Dec $12 calls
bought at $0.20, followed promptly by two more 2,500 blocks around $0.25.
With the stock poised to open much higher than its closing price, someone is
Page 5/5 January 03,
03, 2010

sure to make a killing.

It is practically certain that the NYB stock and option transactions came
courtesy of a insider tip. And as NYB is both a ward of the state, courtesy of
its TLGP umbilical cord, and as the bank would soon become $2 billion
richer as a result of some more middle class-to-Wall Street fund flows, it is
very likely that the FDIC itself is the source of such leak. We truly hope that
one of D.C.'s most ineffective and useless females (if grossly, grossly
overpaid for her "work" in 2008) will analyze whether the agency headed by
another such female has been responsible for yet more illegal insider trading
activity. That the government is only capable of promoting unpunished
criminal activity would not surprise anyone at this point. And as this will be
one of those cases when everything is handed to the SEC on a silver platter,
we don't doubt that some minor scapegoat will be put away to make it seem
like the most worthless organization in the world earns its $1 billion annual
budget fair and square.

What is chilling is the complete disdain that insider traders now flaunt when
it comes to fear of retribution by the "regulators." And when Ms. Mary "$3.3
Million" Schapiro is done catching any and all masterminds behind this
dastardly deed, we would all be very grateful if she could leave her keys, her
chauffeur, and her masseuse as she packs her banker box full of Wall Street
indulgences on the way out of public office once and for all -

Ms. Schapiro, the public does not want you betraying its trust any longer.
Now please go work for Goldman Sachs where your continued betrayal of
U.S. interests will be welcome and compensated much better than
the meager $3.3 million you made at Finra. The sooner you get into a job that
requires efforts more consummate with your diminished capacity, the sooner you can
continue counting the $5-$25 million in cash payouts you slurped up from FINRA's defined
benefit plans.

P OS T ED BY D EF EN D A N T A N D CROS S -COM P LA I N A N T I N P RO P ER A T 9 :5 0
AM