Monday, December 21, 2009
"A Chinese economic official blamed 'fraudulent practices' at some large international investment banks for large losses incurred by Chinese state-owned companies on derivative contracts, in the government's strongest criticism yet of the role played by foreign banks. ... Mr. Li [Wei], writing in the latest issue of the Study Times, a newspaper published by the Party School of the Central Committee of the Communist Party, also criticized Citigroup Inc., along with Merrill Lynch and Morgan Stanley, for developing 'extremely complicated' derivatives products. He said 68 state-owned enterprises incurred combined book losses of 11.4 billion yuan ($1.67 billion) on 125 billion yuan worth of derivatives investments by the end of October. ... Soon after those contracts were signed, oil prices fell below the exercise prices of the options, which caused losses on both sides of the contracts, he said. ... 'Some fraudulent practices by some international investment banks resulted in major losses,' Mr. Li said. Chinese companies should bear some responsibility, but the losses 'arte also closely related to hostile sales of certain fraudulent, complciatedly designed high-leveraged products by international investment banks", Victoria Ruan at the WSJ, 4 December 2009, link: http://online.wsj.com/article/SB10001424052748703735004574573443614069228.html.
Li exercise your "option", sell Zimbabwe Ben these contracts at 100 cents on the dollar. Why let ZB treat your companies worse than Vampire Squid (VS) in the AIG fiasco? Besides, the People's Liberation Army has more divisions than VS, see my 25 September 2009 post: http://skepticaltexascpa.blogspot.com/2009/09/how-many-divisions-has-goldman.html. If anyone should realize he can't collect these debts its Lloyd Antoinette Blankfein (LAB). LAB is a kid from the 'hood. He went to "Tommy Jeff". He understands. Even LAB is not fool enough to bring a writ to a gunfight.