More NY political upheaval coming out of Allison Mack testimony

Sorry, went down a rabbit hole chasing some information that I could not stand up this morning and that’s why this post is late.

However, trust me on this, the Eric Schneiderman resignation will not be the last NYC-based resignation coming out of actress Allison Mack’s NXIVM probe as she sings like bird.

As Rudy Giuliani re-emerges on the Trump team, the body count of alleged corrupt politicians and law enforcement officials will begin to mount. These resignations will not be #MeToo in nature, but crimes even more heinous, along the lines of Mack’s human trafficking.

If I had to make an educated guess where these resignations or public outings will come from it would be the Federal Attorney’s office in Manhattan and possible Brooklyn.

Both Preet Bharara and Loretta Lynch formerly held the top positions in these offices and might have some information on why certain people were not charged with certain crimes for certain reasons. Hopefully that’s as clear as mud, but be certain people will have to answer for their actions.

I’ll leave it here for now, but will link to it when the story breaks in most likely the next week.

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Investors double down on new to chase returns

Out with the old and and in with the new at double the price.

That’s what we have in the markets today. Wal-Mart has a market cap of $236B, while Amazon’s value is twice that at $478B with a share value of nearly $1,000 as compared to $78 for the predominantly brick and mortar retailer.

Also, bitcoin in the next few minutes may be worth twice the price of an ounce of gold, again.

On Tuesday it was reported that former SAC Capital chief Stevie Cohen is looking to raise at least $10B to add to his own $11B for his new hedge fund to launch in January.

Cohen was riding high until the Securities and Exchange Commission forced him to shut it down in 2013 and accept a four-year ban from the industry for not properly managing his staff when some SAC employees were charged with insider trading by then NY Federal Prosecutor Preet Bharara.

The doubling down on the new seems to be a signal of a top to the markets as the tried and true cannot find the legs to go to the next level as valuations are stymied thereby forcing capital to find a newly formed bubble.

 

Fed leaks lead to billions on Wall Street balance sheets

My collegue at The New York Post, John Crudele, wrote on Monday about how the New York Fed President Bill Dudley, back in 2011, was meeting with the Street during “quiet periods” at the Fed.

Crudele FOIAed Dudley’s calendar to see who is was lunching with during the tumultuous time in 2011.The quiet period is the time frame where the Fed is considering policy changes prior to a meeting. The prep work prior to the meeting with position papers and economic modeling gives the participants a strong sense of what is being considered, hence the quiet period.

During one of these times in March 2011, Dudley met with Jan Hatzius, chief economist of Goldman Sachs. Dudley held the same position at Goldman, so he and Hatzius were friends. Yet Goldman could profit immensely knowing if the Fed was leaning toward implementing QE2.

This all comes to life as Richmond Fed President Jeffrey Lacker resigned immediately last week for leaking information ahead of the Fed minutes being released.

However, Lacker “crime” was confirming and advancing a bit information on the Fed that was published days before by Jon Hilsenrath at the Wall Street Journal.

That story prodded an investigation by many federal agencies from the SEC, CFTC and then NY federal attorney Preet Bharara. No further information has been uncovered who was involved in tipping off Hilsenrath for his  exclusive story.

The Federal Reserve’s purchase of trillions of dollars in specific securities is the prime reason why Wall Street wanted to get the tip in order to front run the Fed. There are billions to be made in fees and profits by the actions.

Let’s not forget that Goldman and other Wall Street financial firms own the Federal Reserve, by holding shares in the institution, so the conflicts are tremendous.