Showing posts with label BEAR STEARNS. Show all posts
Showing posts with label BEAR STEARNS. Show all posts

Wednesday, October 8, 2025

Republicans Look For The Exits As Epstein Files Scandal Threatens Their Careers

 




live_with_zev.mp4
 
 

Republicans Look For The Exits As Epstein Files Scandal Threatens Their Careers

For weeks we've been highlighting that Pam Bondi, Kash Patel, and Michael Johnson's efforts to suppress the files are acts of obstruction of justice. That message is sinking in for Republicans.

Eric Swalwell s tweets (heard through Dean Blundell) about House Republicans hunting for exits on the Epstein files confirm what we’ve been documenting for weeks. The obstruction message has landed. Republicans understand they’ve backed themselves into a corner where continued suppression creates criminal exposure, and they’re scrambling to find exits before the documentary record traps them.

The discharge petition requiring 218 signatures to force these files to the floor sits close enough to that threshold that Speaker Mike Johnson can count the names in his sleep. He knows exactly how precarious his position has become, which explains why he’s still refusing to swear in Adelita Grijalva—one more member means one more potential signature, one more vote closer to ending his ability to control the calendar.

But understanding why these files generate such panic requires examining the network they document. A conversation with investigative journalist Vicky Ward, who first exposed Epstein in 2003, reveals an architecture spanning from Bear Stearns to JP Morgan, from Israeli intelligence to Silicon Valley, from British aristocracy to Saudi royalty. What’s in those files explains why Bondi, Patel, and Johnson are willing to risk obstruction charges to keep them buried.

Epstein Financial Network

Epstein’s 50th birthday book, compiled in January 2003, contains a reference suggesting he may have met Robert Maxwell and possibly Ghislaine in the 1970s when she was a teenager. Ward expressed skepticism about that early timeline, but confirmed that Robert Maxwell, Jeffrey Epstein, and Donald Trump all operated within the same Bear Stearns financial ecosystem.

Ace Greenberg ran the firm and maintained connections to Epstein that lasted decades. In 2003, as Ward investigated Epstein for Vanity Fair, Greenberg’s number two Jimmy Caine lobbied her hard, insisting Epstein was “a great guy” and “an important client.”

What my research for “The Greatest Heist” reveals: Epstein never really left Bear Stearns. He remained involved in offshore holdings including Liquid Funding, which held approximately $4.5 billion before the 2008 collapse which became a complicating factor for JP Morgan purchase of Bear Stearns.

Taxpayer money may have rescued an offshore vehicle run by a convicted sex offender.

David Enrich ’s New York Times investigation showed JP Morgan executives meeting with Epstein between 2014 and 2018, viewing him as essential access to Leon Black. Ward’s question cuts through: why would JP Morgan need a convicted sex offender as intermediary to one of America’s richest men?

The answer isn’t financial expertise. It’s the intelligence network Epstein built over decades—and the compromising information he accumulated.

Epstein’s Used Politics, Power and Blackmail

Ari Ben-Menashe and Steven Hoffenberg claimed Epstein represented Israeli military intelligence in efforts to prevent Clinton from advancing Palestinian peace negotiations—blackmail operations targeting Democrats to blunt the peace process.

Ward discussed how Douglas Leese, a British arms dealer connected to the Al-Yamamah deal, mentored Epstein in the 1980s after he left Bear Stearns. This was Epstein’s “bounty hunter” period, operating between finance and intelligence. Ghislaine Maxwell, whose father Robert Maxwell had deep intelligence connections, would have understood these operations despite her claims of naivety.

The two paintings in Epstein’s townhouse—Bill Clinton in a blue dress, George W. Bush playing with World Trade Center dominoes—weren’t just provocative art. They were trophies. Could Monica Lewinsky have been an intelligence trap? It’s within established intelligence MO, and those paintings suggest Epstein believed he had leverage over presidents from both parties

Silicon Valley’s Entanglement

House Democratic oversight documents naming Elon Musk and Peter Thiel in Epstein’s network reveal the expansion of his access into tech power centers. Ward noted she’d seen these names in discovery before, but renewed attention matters because it shows how recently these connections operated.

Epstein understood competitive ego dynamics among tech founders. Ward described his triangulation strategy: once Bill Gates was in the room, Musk didn’t want to miss out. Once Musk was there, Thiel followed. The same pattern applied to CIA Director Bill Burns meeting with Epstein after his conviction.

Ward’s assessment captures it: Epstein laughing himself to sleep each night at what suckers the world’s most powerful people were. The ease of booking meetings with Gates, Musk, Thiel, and Burns after serving time as a convicted sex offender reveals how power actually operates at those levels—and what kind of information Epstein accumulated in the process.

Obstruction Trap

For weeks we’ve been documenting how Bondi, Patel, and Johnson’s suppression efforts constitute obstruction of justice. That message is breaking through to Republicans who understand criminal exposure better than political talking points.

The legal framework is straightforward: obstruction doesn’t require tampering with evidence. It includes using official position to prevent evidence from reaching investigators or the public. Every day Johnson delays swearing in Grijalva, every evasion Bondi gives before the Senate, every bureaucratic delay Patel engineers at the FBI—all of it creates documentary evidence of using government power to suppress criminal evidence.

This is the trap Republicans have built for themselves. The longer they block release, the more their blocking looks like obstruction. The more it looks like obstruction, the more dangerous it becomes to maintain the blockade. But breaking ranks now means admitting they’ve been part of a cover-up all along.

Why Republicans Are Breaking

Swalwell’s “jailbreak” comments confirm what voting patterns already showed. Republicans aren’t discovering principle—they’re discovering legal exposure. They’ve watched how obstruction charges developed in other contexts, and they understand that using congressional procedure to bury evidence in a child trafficking case crosses from politics into crime.

Some have already signed the discharge petition. Others are waiting to see if they can avoid a recorded vote entirely. None want to be the member prosecutors point to when explaining why Congress buried evidence of potential federal crimes involving minors.

The Supreme Court’s rejection of Ghislaine Maxwell’s appeal, whatever its legal reasoning, demonstrates that some institutions still function independently of political pressure. Ward noted the Court isn’t simply Trump’s rubber stamp—it was the Federalist Society that selected the last three conservative justices, not Trump personally. That independence matters when Republicans calculate their legal exposure.

What’s Coming

Virginia Giuffre’s memoir arrives within weeks. Journalist Tara Palmeri reports it contains sensational revelations with major names that will shock people. Since Giuffre died by suicide, the manuscript likely holds nothing back.

The network Epstein built—from Bear Stearns offshore vehicles potentially bailed out with taxpayer funds, to JP Morgan executives using him as intermediary to billionaires, to Silicon Valley founders competing for access, to intelligence operations targeting American political figures—exists in documentary form. Flight logs, emails, meeting records, financial transactions spanning decades.

Johnson can keep delaying Grijalva’s swearing-in. Bondi can keep evading Senate questions. Patel can slow-walk FBI cooperation. But they cannot make the Epstein files disappear. Every day spent blocking their release creates more evidence that prosecutors can use to demonstrate obstruction.

The jailbreak isn’t coming. It’s already here. Republicans are just trying to get through the door before it locks behind them—and before the files reveal a network connecting financial crime, intelligence operations, and sexual blackmail that reaches into the current administration.


Thank you 

Tuesday, December 3, 2024

The Fed Rings a Warning Bell: Hedge Funds and Life Insurers Are Reporting Historic Leverage

 

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The Fed Rings a Warning Bell: Hedge Funds and Life Insurers Are Reporting Historic Leverage

By Pam Martens and Russ Martens: December 3, 2024 ~

Jerome Powell (Thumbnail)

Jerome (Jay) Powell, Chairman of the Federal Reserve Board

The semi-annual Financial Stability Report released recently by the Federal Reserve Board of Governors rang a loud warning bell about high levels of leverage at hedge funds and life insurers.

Wall Street watchers will no doubt recall that in 2008, during the worst Wall Street collapse since the Great Depression, Bear Stearns went under after it blew up two internal hedge funds the prior year and the giant life insurer, American International Group (AIG), blew itself up by acting as a counterparty to Wall Street’s derivative schemes and had to be taken into receivership by the U.S. government.

On the matter of leverage at hedge funds, the Fed wrote this in its most recent Financial Stability Report:

“Comprehensive data collected through SEC Form PF indicated that measures of leverage averaged across all hedge funds were at or near the highest level observed since these data became available in 2013. Relative to the previous report, leverage increased when measured using either average on-balance-sheet leverage…or average gross leverage of hedge funds…a broader measure that also incorporates off-balance-sheet derivatives exposures, but which does not account for netting of offsetting exposures.”

And just who was providing this leverage to hedge funds? It was the federally-insured megabanks on Wall Street, of course. You won’t find that information in the Fed’s report but you can gain an in-depth understanding of this issue from our September 3 article titled: Three Megabanks Had Loans Outstanding of $1.832 Trillion to Giant Hedge Funds on March 31.

The Fed seems to be a serial protector of the illusion that U.S. megabanks are doing just swell. It says this in its current report: “The banking system remained sound and resilient, with regulatory capital ratios approaching or exceeding historical highs.”

That statement on capital levels would be much more convincing from the Federal Reserve Board of Governors if researchers at one of their 12 regional Fed banks, the New York Fed, had not just told the public in October that 27 percent of bank capital is “extend and pretend” commercial real estate loans.

On the issue of high leverage at life insurers in 2024, the Fed’s Financial Stability Report tells us this:

“Life insurers continued to allocate a substantial percentage of assets to risky and less liquid instruments, such as leveraged loans, collateralized loan obligations (CLOs), high-yield corporate bonds, privately placed corporate bonds, and alternative investments. Moreover, life insurance companies have material direct exposures to commercial mortgages and are large holders of commercial mortgage-backed securities (CMBS). This exposure to illiquid and risky assets makes life insurers vulnerable to an array of adverse shocks, including that of an economic downturn or of a significant further deterioration of the CRE [commercial real estate] market.”

Another section of the Fed’s Financial Stability Report that looks highly suspect is the list of the most cited potential shocks that two dozen sophisticated contacts expressed as top concerns that might occur over the next 12 to 18 months. The Fed explains the survey as follows:

“As part of its market intelligence gathering, staff from the Federal reserve bank of New York solicited views from a wide range of contacts on risks to U.S. financial stability. From late August to late October, the staff surveyed 24 contacts, including professionals at broker-dealers, investment funds, research and advisory firms, and academics. This section is a summary of the views provided by survey respondents and should not be interpreted as representing the views of the Federal reserve bank of New York or the Federal reserve board.”

The chart below is the list of the most cited concerns. We do not find the list credible. From August to late October, tens of millions of Americans could think of little else than the possibility that Donald Trump might return to the White House for a second reign of chaos. But we are asked to believe that not one person out of the two dozen the New York Fed spoke to mentioned Trump as a key concern according to the chart the Fed released. 

Two days after the presidential election, on November 7, when it was clear that Trump had won both the electoral college and the popular vote, the U.K.’s Guardian newspaper summed up the view around the world on its front cover with this: “American dread.” A column headlined on the front page read: “Time to Rethink Everything We Thought About the U.S.” Tens of millions of Americans were thinking those exact words with many doing a Google search on how to relocate to a foreign country.

Vanity Fair’s digital front cover on November 6 captured the mood perfectly with these words: “34 Felony Counts; 1 Conviction; 2 Cases Pending; 2 Impeachments; 6 Bankruptcies; 4 More Years: The 47th American President.”

 WALL STREET ON PARADE

The Hound | Aug. 25

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