The world’s most powerful bank issues a major warning

 

In 1869, a 48-year old Jewish immigrant from the tiny village of Trappstadt in Germany’s Bavaria region hung a shingle outside of his small office in lower Manhattan to officially launch his new business.

His name was Marcus Goldman, and the business he started, what’s now known as Goldman Sachs, has become the preeminent investment bank in the world with nearly $1 trillion in assets.

They didn’t get there by winning any popularity contests.

Goldman Sachs has been at the heart of nearly every major banking scandal in recent history.

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European Central Bank can’t fix Europe’s economy, warns UBS boss

EUROPE’s monetary policymakers can’t fix the bloc’s economy woes, the boss of a leading investment bank has warned.

The European Central Bank (ECB) has the near impossible task of nursing the region back to health and has tried a number of desperate initiatives in recent years to kick-start growth.

Yet most recent figures signal the bloc is still struggling to stay afloat. Continue reading

China Paves Way to Global Dominance Resting on US Marshall Plan

While the US and Europe focus their efforts against the spread of Islamic State, China is skillfully mastering its way towards dominance in the global economy; the pattern is very similar to that of the Marshall Plan the US applied in Europe in the post-WWII years to counteract the Soviet influence, according to a French economist.

China is paving its way to dominance in the global economy very much based on the Marshall Plan the US used in Europe in the post-WWII years, French economist and lecturer in economics at the Pierre Mendes-France University in Grenoble Mylène Gaulard said in her interview with the Atlantico news website.

Gaulard explained that, similar to the US in Europe, China is now conquering foreign markets and gaining control over the developing countries of the South Asia. Continue reading

Chinese Companies Go to Fraud School

Usually, one goes to college to learn a productive skill. A recently reported “fraud school” in China, however, fills a lucrative niche by teaching small companies how to fabricate their financial statements so they can enter U.S. capital markets and harvest millions of dollars from unsuspecting investors.

The school was featured in a Chinese newspaper article in early April. The piece, titled “Unmasking the Disaster of ‘China Concept’ Stocks,” refers to an unnamed fraud school that it says is under investigation by Chinese police. The author is listed as John Caines, whose affiliations are not stated. The newspaper that printed the article, Fortune Today, did not respond to an email enquiring about Caines’ identity.

The “fraud school,” which is actually an investment bank, counsels Chinese enterprises that want to make quick money on how to game the stock market in the United States, the article says. The elaborate system of fraud includes faking sales contracts, fabricating government filings, and massaging financial statements. These documents are then given an imprimatur of credibility with the help of a cooperative auditor. At this stage the company is still private, in China.

Full article: Chinese Companies Go to Fraud School (The Epoch Times)