The United States of Usury and the Takedown of the World Financial System – Oops!

The United States of Usury and the Takedown of the World Financial System. Reminds a line from the Britney Spears song – Oops I did it again!

How many more insults will the world serfs take? The United States of Usury is being used and manipulated to bring down the entire world financial system. You have to wonder if Bernake and Obama are actually trying to “fix” things or if they are actually there to put the “fix in”. These agents of destruction need to be recognized and outed for what they really are. The United States of Usury is a fake economy, built on a fiat currency, run on the a financial model called fraud by the Federal Reserve. God help us all for the coming storm and serfdom…

Protect yourself – buy physical gold and silver, pray, eat healthy foods, exercise, read, become self-sufficient, stop buying garbage at the malls, and prepare.

• More lucid commentary by Max Kesier

• Max Keiser on Alex Jones

• John Perkins and the Confessions of an Economic Hitman

• Aquaponics

• Window Farms

Debt as Aid and Money

“Without being radical or overly bold, I will tell you that the Third World War has already started – a silent war, not for that reason any the less sinister. This war is tearing down Brazil, Latin America and practically all the Third World. Instead of soldiers dying there are children, instead of millions of wounded there are millions of unemployed; instead of destruction of bridges there is the tearing down of factories, schools, hospitals, and entire economies . . . It is a war by the United States against the Latin American continent and the Third World. It is a war over the foreign debt, one which has as its main weapon interest, a weapon more deadly than the atom bomb, more shattering than a laser beam.”

Luis Ignacio Silva, at the Havana Debt Conference in August 1985, quoted by Susan George, A Fate Worse Than Death p 238.
Luis Ignacio Silva

Some people are able to see the evil of usury clearly, while others take it as play. It reminded of the following passages from the Qu’ran;

The likeness of those who disbelieve is that of someone who yells out to something which cannot hear – it is nothing but a cry and a call. Deaf – dumb – blind. They do not use their intellect. (Surat al-Baqara, 171)

We created many of the jinn and mankind for Hell. They have hearts they do not understand with. They have eyes they do not see with. They have ears they do not hear with. Such people are like cattle. No, they are even worse! They are the unaware. (Surat al-A’raf, 179)

Allah will admit those who believe to Gardens with rivers flowing under them.Those who disbelieve have their enjoyment, eating as cattle eat, but the Fire will be their final residence. (Surah Muhammad, 12)

John D. Rockefeller, at the age of 86, penned the following words to sum up his life:

“I was early taught to work as well as play,
My life has been one long, happy holiday;
Full of work and full of play-
I dropped the worry on the way-
And God was good to me everyday.”
John D. Rockefeller

How to Steal Money from the Stock Markets

Revealed: the dirty tricks of rogue traders
By Robert Winnett, The Daily Telegraph 3/21/08

A hedge fund based in London set up a “dirty-tricks unit” to manipulate share prices and get illicit information on companies in an attempt to make millions on the stock market, an insider has revealed.

Jeff Randall: Rumour Mill mafia is destroying our savings

Leader: HBOS mugging shows that crime pays

Email and Singapore call causes City frenzy

As the official hunt began for the rogue traders who tried to bring down Britain’s biggest mortgage lender, HBOS, The Daily Telegraph can reveal a whistle-blower’s account of how a multi-billion pound fund allegedly used illegal tactics to drive down stock prices.

Wanted: the trader who allegedly made £100m from the 17 per cent slump in HBOS shares
Private detectives were allegedly employed to hack into executives’ emails and telephone records.

Front companies were set up to allow the hedge fund traders to pose as independent researchers or journalists.

Negative information on companies was then distributed to leading investment banks in the hope that rumours would spread and some share prices would fall.

The hedge fund, which cannot be named for legal reasons, stood to make millions from “short-selling” the shares as they fell in value.

The allegations – made in a sworn statement seen by The Daily Telegraph and which has been sent to financial regulators – will add to growing concern over the activities of rogue traders in the City.

The Financial Services Authority, the City regulator, has begun a criminal investigation to find the trader who allegedly made £100 million from the 17 per cent slump in HBOS shares on Wednesday.

The shares fell after “malicious” rumours were spread in the City about the bank, sparking fears that the price had been illegally manipulated – a move described as “the modern day version of bank robbery”.

FSA investigators are seeking emails sent to traders that are thought to have prompted widespread selling of HBOS shares. They claimed the bank was experiencing difficulties.

advertisementIt has emerged that the rumours are thought to have originated in the Far East, with Singapore named as the most likely source. Nick Leeson, the notorious rogue trader responsible for the collapse of Barings Bank, also operated in Singapore.

In a separate development, Credit Suisse, the investment bank, admitted that it had uncovered a separate £1.4 billion share-dealing scam by rogue traders – many of whom were based in London – who were trying to protect their bonuses.

The Credit Suisse traders are understood to have sought to cover up their trading losses at the end of last year.

Shadows who move markets | What is short-selling?

London traders sacked in £1.4bn Swiss bank fraud

The revelations follow a week of turmoil in the global markets after the near collapse of the American investment bank Bear Stearns.

Following a meeting with the major banks, it emerged that the Bank of England was considering helping to alleviate the financial crisis by easing the restrictions on banks seeking to borrow money from it.

The accusations about the hedge fund form the most detailed account yet of the illicit activity carried out by the London office of a major international hedge fund. Such tactics are also thought to be used by other hedge funds.

The sworn statement containing the allegations is understood to have been sent to the FSA last year although it is not known what action the regulator took.

The document alleges that:

– Employees of the hedge fund ordered an American-based private detective to hack into the corporate email systems of two firms in which the hedge fund had an interest

– A bogus firm — with a phoney internet address — was established to allow employees to pose as independent researchers and approach company executives to garner information on their firms’ future financial prospects. The firm was also used to gain access to industry conferences.

– A false website — with a bogus address — was also registered to allow hedge fund traders to pose as journalists. The offices of American politicians were approached by people claiming to be journalists to obtain information about potential new laws banning internet gambling that would hit British firms.

– Jurors and their families in a sensitive legal case into whether a firm had exclusive patent rights in which the hedge fund had invested were “tapped up”. Money was allegedly paid to jurors’ families for information about jury-room deliberations.
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? – Hedge fund staff gathered “sensitive” negative information on firms in which they had an interest in the share price falling. This information was distributed to leading investment banks whose experts were encouraged to take a dim view of the prospects of the company’s shares. A German “media consultant” was also used to disseminate information.

– A safe containing large amounts of cash was installed in the hedge fund’s office. Money was paid to “sources” providing valuable inside information. On one occasion, an anonymous informant was paid $50,000.

The hedge fund at the centre of the allegations has offices in London’s West End and traders spent their staff Christmas party on a luxury cruise.

It was set up by former senior executives from a blue-chip investment firm. However, from 2005, the “dirty-tricks unit” was staffed by former corporate investigators and investigative journalists hired from newspapers.

Pressure is growing on the FSA to clamp down on the worst excesses of the hedge fund industry after a series of scandals culminating in the attempt this week to start a run on HBOS.

The hedge fund “dirty tricks unit” exposed today was set up in London but operated around the world. It is alleged that this was to avoid tougher regulatory controls in New York.

On Thursday, Britain’s biggest banks met with the Bank of England to urge them to loan more money to help alleviate the impact of the global credit crunch.

The Bank, which agreed to some of the demands, released another £5?billion for the money markets. The stock market, which dropped slightly, is now closed until Tuesday.

HBOS shares recovered on Thursday, closing up more than six per cent.

Hillary the Movie – Banned in Theaters and on TV

NOW, MORE THAN EVER, YOU NEED TO KNOW THE FACTS ABOUT HILLARY CLINTON:

• What is her program. What would she do as President?
• How did she avoid indictment for her past scandals?
• What did her brothers get in return for Bill’s pardons?
• What did she really do to make $100,000 in the futures market?
• How did she use campaign finance fraud to win election to the Senate?
• What has she really done as Senator?

HILLARY CLINTON WANTS TO KEEP THIS MOVIE OUT OF THE THEATERS.

THE FEDERAL ELECTIONS COMMISSION HAS BANNED SHOWING IT OR ADVERTISING FOR IT ON TELEVISION

THE ONLY WAY TO GET THE MESSAGE OUT IS TO BUY THE DVD AND SHARE IT WITH YOUR FAMILY AND FRIENDS.

Hillary Unmasked

Published on FOXNews.com on February 28, 2008.

The real Hillary Clinton stood up at the Democratic presidential debate this week: angry, sarcastic, stubborn, secretive, arrogant, mired in the past, victim of the media, and still firmly convinced that she is uniquely entitled to the Democratic Party nomination and the presidency.

That Hillary hasn’t really been on display much since the debacle of her disastrous health care plan and the end of Bill Clinton’s impeachment trial, when she haughtily flaunted her combative personality.

But make no mistake about it – that’s the Hillary Clinton that we’ll see if she somehow manages to steal the Democratic nomination.

She’s found her voice. The one that so alienated everyone she came into contact with over her health care plan that her own party destroyed it. The one that publicly and loudly defended Bill and arranged for attacks on Monica Lewinsky when she knew the complete and sordid truth.

She’s always had a chip on her shoulder and a strange paranoia, but it’s definitely gotten worse. Now it’s not just the vast right wing conspiracy that is out to get her. Now it’s the mainstream media. How are they doing that? By asking her the first questions at the debates!

Hillary’s snide comment about whether Barack needed a pillow to be made more comfortable was downright embarrassing. The anticipated applause line on her script never happened. The audience was silent. The press was amazed. And Barack seemed genuinely startled by her nuttiness – he looked over at her as if he was viewing a dotty old aunt at a family dinner, the one that everyone politely humors.

Her lifelong pattern of secrecy was once again evident. While publicly promoting transparency in government, she steadfastly refuses to release her personal income tax returns. That’s a clear tip-off that there’s something to hide. Recall that the Clintons selectively released tax returns in Arkansas, but refused to go back to 1980, when Hillary had her windfall in cattle futures.

During the debate, Hillary suggested that she’d release the returns “soon,” but her staff quickly backtracked. She implied that she’s been too busy to deal with releasing the returns. Does she really think anyone believes that it will take more than simply making a copy of the return? She’s stalling and there’s a reason for that.

Most likely, the return will show how much Bill has been making from his partnership with the Sheik of Dubai and his other business ventures. Should the spouse of a presidential candidate be in business with a foreign leader who needs favors from the U.S. government? Definitely not. That’s why we’ll never see those returns.

And then there are the Clinton Library records that document her schedule as first lady. She doesn’t want them released either because they will definitively show that she was never the co-president. The Library has been stalling on the release of those documents for years. During the debate, she said that she wanted them released as quickly as possible and seemed to blame the Bush administration for the delay. But today, the White House indicated that she had made no requests for any expedited release.

The old Hillary, the real Hillary, is back.

And there’s apparently been no one to stop her from acting on her own worse instincts.

Underneath the veneer of the practiced smile and the strategically used giggle, there is a rage that is always close to the surface. It was on display in the debate.

Hillary Clinton is furious that America has not agreed to her coronation. She doesn’t understand why voters are rejecting her and embracing Barack Obama. She just doesn’t get it.

Never one to engage in self reflection, she can’t blame herself or even her incompetent strategists and advisers. They’re too close to her. She can’t accept the sorry fact that her campaign has been a disaster because it was based on the past and not the future, because it was premised on her phony experience and maintaining the status quo, and because her negative outlook is completely out of step with the mood of America. And finally, because in the positive message of Barack Obama, Americans see a stark contrast with her doom and gloom view of the world.

So, she’ll blame the media. It’s their fault.

And she’ll keep screaming about what a fighter she is.

More like a bully.

9-11 Report Commissioner Zelikow Admits War was for “threat against Israel”

The Israel Lobby (full text)

“Third. The unstated threat. And here I criticise the [Bush] administration a little, because the argument that they make over and over again is that this is about a threat to the United States. And then everybody says: ‘Show me an imminent threat from Iraq to America. Show me, why would Iraq attack America or use nuclear weapons against us?’ So I’ll tell you what I think the real threat is, and actually has been since 1990. It’s the threat against Israel. And this is the threat that dare not speak its name, because the Europeans don’t care deeply about that threat, I will tell you frankly. And the American government doesn’t want to lean too hard on it rhetorically, because it’s not a popular sell.“

Links;

• Zeitgeist – The Movie
• Former 9/11 Commission Chief Philip Zelikow on Allegations He Secretly Allowed Karl Rove & White House to Influence 9/11 Probe
• Philip D. Zelikow
• National Commission on Terrorist Attacks Upon the United States, better known as the “9/11 Commission”
• IRAQ: War Launched to Protect Israel – Bush Adviser
• The truth about Zelikow and the Sept. 11 cover-up commission

Benny Hinn and other Comedians

Text and Sound Files taken from Clay Loomis’ Oddities Wav Page

The Photos are my own addition. Listen and Enjoy!

A lot of strange stuff has happened in the world. William Shatner & Leonard Nimoy tried to sing. Jerry Falwell & Pat Robertson think feminists caused the 9/11 tragedy. Some people do very strange things with gerbils, and pay the price. Here you’ll hear about those things and other audio oddities.

Sounds are password protected. Enter the following for access-
USER NAME is 1 PASSWORD is 1

I didn’t digitally fiddle with any of these clips. These people do their own fiddling- with other folks wallets.

There’s this guy named Benny Hinn running a little God sideshow called the Benny Hinn Ministries. Benny whacks people on the head, which cures their cancer and makes their missing limbs grow back. Nice guy. Apparently, lots of people buy that shit too, because they give him a lot of money for that show. Here, Benny explains how he’d like to pop a cap in someone’s ass.
God’s machine gun 32k

On December 31st, 1989, Benny did some prognostication for the upcoming 1990’s. OOPS!

The Spirit tells Benny-boy that Fidel Castro will die. Swing-and-a-miss, strike one 66k

The Lord tells Benny that in ’94 or ’95 (Apparently, The Lord was kind of vague)
the entire homosexual community in America will be destroyed.

Swing-and-a-miss, strike two 132k

His wife Suzanne takes the stage and does her act as well. A serious nut-job in her own right, Mrs. Hinn actually said this onstage in front of a huge congregation, and it went out over the airwaves to Hinntites everywhere. The video of this instance of insanity is freely available on the Web. She sounds winded, but it’s only because she’s worn herself out walking back and forth. At the end of all this nonsense she throws herself to the ground and rolls around like she has rabies or something, which, for all I know, she does (it would explain a lot). If anyone is offended by this file, don’t blame me. Talk to the con artists at the Benny Hinn Ministries.
Colonics for Christ 222k

Jerry Falwell & Pat Robertson blame the 9/11 attacks on the ACLU, feminists, and other Americans. 115k Gee, and all this time I’ve been blaming Muslim terrorists.

On Monday, 9/22/05, Pat Robertson announced on his nutbag religious show, The 700 Club, that the United States should send in covert operatives and assassinate Venezuelan President Hugo Chavez. After a huge international uproar, Pat announced on his Wednesday show that his words had been taken out of context and that he never said anything of the kind. YES HE DID! Here is the audio from his Monday show. You tell me, does this sound out of context to you? Of course, assassinating foreign leaders is against U.S. law, but Pat goes on to say that killing Chavez shouldn’t effect shipments of oil from Venezuela. Well, I guess that makes it O.K. for Pat, but I wonder what version of the Bible he’s been smoking.

I find it very disturbing that someone who vents his conservative political agenda so openly can gain tax-free status as well by presenting himself as a man of God. He’s just Rush Limbaugh with a Bible in his pocket. What’s truly frightening is that thousands of stupid Americans listen to and believe this shithead.
If God does exist, Pat Robertson will go straight to Hell! 197k

I love this one. This is a clip featuring Pastor Arnold Murray, of the Shepherd’s Chapel church. During the broadcast, someone obviously arrives off camera and yells “Blasphemy!” Sounds of a struggle can be heard as well. Pastor Arnold brings his finger across his throat to try and cut taping, but before they can cut away, the good pastor whips open his briefcase, pulls out a pistol and……… Well, just give a listen.
No cheek turning here. This is pure Old Testament stuff. Don’t ask me what happened to the boy. This clip goes right up to the end of the broadcast and I know nothing of what happened afterward. The Pastor’s packing heat! 46k

This is Dr. Fred Price preaching at the Ever Increasing Faith Ministries in California. Here he explains how good Christian kids should deal with drug dealers in their neighborhoods.
Smash their heads with a brick 39k Kids, if you want to live very long, don’t actually try this.

Links;

• Fifth Estate Investigation into Benny Hinn
• Sweat Shop Productions
• Benny Hinn testifies at fraud trial

Jerome Kerviel, French Trader Had an Accomplice

Collaboration at Société Générale? 2nd person taken into custody

By Nicola Clark, Katrin Bennhold and James Kanter
Friday, February 8, 2008

PARIS: A French investigation into Jérôme Kerviel, the former trader who Société Générale says cost it nearly €5 billion, or more than $7 billion, last month, took on wider dimensions Friday as French financial police interrogated a second person in relation to the case, calling into question the bank’s assertion Kerviel had acted alone in setting up billions of euros worth of fictitious trades.The news came as a Paris court bowed to prosecutors’ arguments that Kerviel should be taken into custody, partly to prevent him from having contact with significant witnesses in the case.Legal experts said that the revelation that Kerviel – who courtroom observers said appeared shocked by the decision to detain him – might not have been the lone operator the bank has made him out to be suggested that oversight of Société Générale’s trading room may have been recklessly lax. That may put added pressure on Daniel Bouton, the bank’s chief executive, and other top managers to explain more fully the circumstances that led up to the losses.”

It really suggests a higher-level failure of risk management than we thought two weeks ago” when the bank initially disclosed its trading losses, said Christopher Mesnooh, an international business lawyer based in Paris.”It’s one thing to overlook one person, but if it’s two people then it begins to stagger the imagination,” he said. “It looks as if there was probably a greater deal of collaboration than has so far been disclosed, as well as oversight failure.”

According to two people with knowledge of the investigation, Société Générale has provided prosecutors with new evidence related to Kerviel’s fictitious trades, including a series of electronic message exchanges between Kerviel, 31, and Moussa Bakir, a 32-year-old broker at Newedge, Société Générale’s futures brokerage unit formerly called Fimat, that were sent using the bank’s internal computer system.

According to these people, who requested anonymity because they were not allowed to discuss the case, one such message, sent by Bakir to Kerviel on Nov. 30, read: “You have done nothing illegal in terms of the law.”

Both added that this message was only a “small part” of the communications linking the two men and that there was more “interesting” correspondence that had yet to be disclosed.

The message was sent four days after Eurex, the Frankfurt-based derivatives exchange, had sent a query to Société Générale’s compliance department on Nov. 26 demanding clarification of several suspicious trades of stock index futures that Kerviel had made.

This was the second letter from Eurex in less than three weeks questioning Kerviel’s investment strategy and, in particular, asking about his habit of entering trades through a broker at Fimat, rather than from Société Générale directly.

In a letter Nov. 7 letter to Société Générale, Eurex even inquired whether Kerviel had entered the transactions automatically or manually.

“Please explain the background for this procedure,” two Eurex officials wrote.

Investigators are also examining Kerviel’s mobile phone bills, which Jean Veil, a lawyer for Société Générale, earlier this week described as unusually high, suggesting, he said, that there “could have been” others involved.

Veil emphasized the bank had found no evidence to suggest that Kerviel had accomplices.

“That said,” Veil said, “I am asking myself how he could have built up a €1,000 monthly cellphone bill given that he worked all day long in an office with telephones.”

A spokeswoman for the Paris prosecutor’s office, Isabelle Montagne, confirmed that the police had taken a male employee of Newedge into custody around midday on Thursday and that he was expected to be held for questioning until around midday on Saturday.

She added that the police had also raided Newedge’s offices on the Champs-Elysées in central Paris on Thursday, taking documents and computer files.

A spokeswoman for the Société Générale, Joelle Rosello, declined to comment, saying the bank was “cooperating closely with the investigation.”

Société Générale last month merged Fimat into Newedge, a joint-venture with the futures brokerage unit of Calyon, the investment banking arm of Crédit Agricole, another French bank. Spokespeople for Newedge referred all inquiries about the matter to Société Générale.

Stéphane Bonifassi, a business crime expert at the law firm Lebray & Associes in Paris, said the emergence of Bakir as a possible accomplice could have played favorably for the prosecution at the hearing Friday.

“The prosecution played it very subtly by having this other guy in the background,” Bonifassi said. “That there is this other guy may have strengthened the need to place Kerviel in pre-trial detention to avoid them talking together or coordinating their stories,” a risk often used to justify a request for pre-trial detention, he said.

Frédérik-Karel Canoy, a lawyer acting for small shareholders who was present as the ruling was read, said that when informed of the decision, Kerviel appeared as if “the sky had fallen on his head.”

“When he heard the words ‘placed in detention’ you could see his body crumple slightly as if it suddenly hit him that he really was going to prison,” Canoy said. Another lawyer who was present said that Kerviel was escorted away from the hearing room by three gendarmes but that he was not handcuffed. Kerviel’s lawyer, Elisabeth Meyer, wept, Canoy said.

Looking ashen-faced as she addressed a crush of cameras after the verdict, Meyer spoke in short, clipped sentences and vowed to appeal the decision.

“I cannot explain this decision,” Meyer said. “He’s met more than his match,” she said of Kerviel.

Ulrike Weiss, a spokeswoman for the Paris prosecution described the court’s decision as being “in line with our arguments.”

The Paris prosecutor, Jean-Claude Marin, last month requested that Kerviel be detained to protect him from media and professional pressure and because of concern about his mental health – and the possibility of suicide – before a trial.

Veil, the Société Générale lawyer, said the decision also reflected the concerns of prosecutors and the bank’s defense team that letting Kerviel go might risk interference with important witnesses or evidence in the case.

Kerviel, who was held by the police for two days of questioning last month was released under judicial supervision on Jan. 28. But that decision, by investigating judges in the case, was appealed by the prosecutor, Marin, which prompted Friday’s hearing.

Weiss, the prosecution spokeswoman, said that Kerviel could be detained for a period of between four and 12 months.

Kerviel was taken to La Santé prison, close to the center of Paris, where high-profile suspects like business leaders and politicians are often held while under investigation, according to Christophe Reille, his lawyer’s spokesman.

Kerviel is being investigated on allegations of forgery, breach of trust and illegal computer use, but he has not been formally charged with a crime.

In France, before formal charges can be brought, a judge must complete an investigation. If convicted, Kerviel could face a maximum sentence of three years in prison and a fine of €370,000.

Bonifassi said that any chances of an appeal by Kerviel against an detention would be unlikely to succeed.

“I’d give an appeal extremely thin chances,” Bonifassi said.

He also said that the decision Friday represented a preliminary judgement on Kerviel’s guilt.

“Although judges will not admit it because pre-trial detention should not be based on feelings about someone’s guilt, the decision does show a feeling among the judges that he is guilty of something,” Bonifassi said.

Jerome Kerviel Testimony Transcript – French Police

Transcript: Interrogation of Jérôme Kerviel

Wednesday, January 30, 2008

French financial police have questioned Jérôme Kerviel, the trader whom Société Générale says lost billions in unauthorized trading bets using its money, at length about his role in the alleged fraud. Following are translations, by the International Herald Tribune, of verbatim excerpts published in Thursday editions of Le Monde, a leading French daily, from the verbal interrogation, which took place in six interviews from Saturday through Monday.His position within the bank JÉRÔME KERVIEL: I was hired by Société Générale in August 2000, in charge of the middle-office…. During the second half of 2004, I was assigned to be assistant to a desk…. Since I was on the same row of desks as the traders, I became more and more interested in the trading activity…. At the beginning of 2005, I was transferred to trading on the desk….

When I was hired by Société Générale [in August 2000], my gross salary was about 35,000 a year plus variable bonuses…. For the year 2007, I haven’t yet been told of the amount of my gross variable yearly revenue,… I was asking for 600,000, they offered me 300,000. To this day, I have not received anything for 2007.

….I understood during my first interview in 2005 that I was far less considered than others because of my degree course and my professional and personal paths…. But I don’t take it personally, I assure you….

Admitting to fake trades. I do not formally question the facts that I am being blamed for. I admit having created fictitious operations, I admit the cancellation of fictitious operations; concerning the unauthorized stand I took on the futures, I am a little less affirmative. My mandate was clear: it consists in ensuring that the market-making of products…. presented no volatility: certificates, warrants, trackers…. It was about earning money for the bank only, and in no way to enrich myself. What is more debatable, I admit, are the ways used to achieve this.

When the coverup began. My first experience in this field goes back to 2005, I took a stand on Allianz stock, making the bet that the market would drop. It just so happens that shortly after the market drops following the London attacks, and there it was, a 500,000 jackpot. This time corresponds more or less to when I started as a trader at Société Générale. I then already have the idea of a deal to cover my position. I have mixed feelings about this because I am proud of the result and altogether surprised. It generates the desire to continue, there is a snowball effect.

….At the end of July [2007], the market snaps because of subprimes and the markets are shook up. My result goes up: 500 million, and I find myself in the same situation as before, in an even bigger way, and do not declare this result which doesn’t appear in the books of Société Générale. I hide this with a fictitious operation….

As of the 31st of December [2007], I no longer have a “pose” and my “mattress” [profits set aside] has gone up to 1.4 billion, still not declared to the bank. At this point, the situation is beyond me and I don’t know how to tell the bank about it, this represents unreported cash of 1.4 billion. So I decided not to declare this to the bank and to cover up this amount, I create an offsetting fictitious operation….

How he played the markets. At the beginning of 2008, I change my position to “long” [the status of a buyer] because I know that the market has evolved a lot, and I see the market coming back up in the next three months, and I am still to this day convinced that it’s going to bounce back up in the next three months…. [It] was only at the closing of the session of the 18th [January 2008] that I was negative. I then think that I will see the evolution of the market when I come back on Monday and count on the market rising on Tuesday. What I couldn’t assume is that Monday I would no longer be an employee of Société Générale.

….In November 2007, on intra-day successive operations, I went back and forth on the DAX [the German stock market index] and seeing it was juicy, took positions from coworkers’ automated machines at the same time and this everyone saw and knew. On that day alone, I made 600,000. My manager then wanted to know the reasons for my investment choices….

How he covered his tracks. Now for the bank, since I am not supposed to have earned this money, I reported a result of only 55 million…. I then provided fake evidence of the recording of these operations, i.e. fake e-mails. I created a fake e-mail with a function that allows me to reuse the heading of an e-mail that is sent to me and change the contents….

The techniques that I used are not sophisticated at all, in my opinion, any correctly executed inspection is able to detect these operations….

Red flags raised. I remain persuaded that they [his supervisors] were aware of these positions and by saying this I inform you of the existence of warnings that got to my hierarchy. In 2007, several questioning e-mails…. were sent to several of my coworkers in order to get explanations…. Another warning could have consisted in calculating the ratio between the ?55 million result that I reported in 2007 and the number of operations I processed. Two requests for information in November 2007, coming from Eurex in Germany, are sent to question the volume of operations I processed…. Following this investigation I am questioned…. and am able to justify myself. At the beginning of January 2008, I max out my credit limit…. I then receive questioning e-mails…. To justify myself, I then create a forged e-mail.

….The fact alone that I didn’t take any days off in 2007 [4 days] should have alerted my supervisors. It’s one of the elementary rules of internal control. A trader who doesn’t take any days off is a trader who doesn’t want to leave his book to another….

I was generating cash, so the signals weren’t that alarming. As long as we earn and it doesn’t show too much, as long as it’s convenient, no one says anything….

INVESTIGATOR: Did anyone comment on the 50 billion that you took during the first fifteen days of January?

A: I had a feeling the market was going to bounce back up.

Q: Caught in the gearing, how did you imagine you would be able to announce this without risking losing your salary?

A: I thought the simple fact of announcing a 1.4 billion profit would satisfy them.

Q:Without imagining the way they were covered up would result in a penalty/sanction?

A: How do you justify a penalty given to a trader who generates a positive result of 1.4 billion?

Q: Let’s suppose that your positions on the futures had been detected by Société Générale,… what would have been your defense?

A: My justifications would have been the same. The hope of the market turning over. However, I’ll say it again, from March to July my supervisors received a number of warnings that makes me think that the size of my stands was known.

Q: Why didn’t the checking services try to stop you?

A: It was in their interest to let me make money….

In the event that anything was detected during this period the whole team would have been fired. Including my higher-ups, one after the other. And that is what’s happening today. In both cases, it was in Société Générale interest to close its eyes. Whether I’m winning or losing….

No matter what, I was risking in one case just as in the other case losing my salary if my commitments were detected. It certainly was in my interest to hide my commitments to my supervisors.

International Herald Tribune