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Here is some interesting info for you, it is getting more interesting.
>From: LePatron@xxxxxxxxxxxxxxxxxxx
>To: trdoptions@xxxxxxxxxxx
>Subject: HEAT on the HANNIBALS is INTENSIFYING - Swap Spreads Widen
>Date: Thu, 5 Aug 1999 17:00:45 -0400
>
>Le Metropole members,
>
>The HEAT is on the "Hannibals" and they are
>feeling it. Rumors were flying all over Wall Street
>today about Goldman Sachs, Deutsche Bank, Chase, and
>Credit Suisse regarding bad swap positions. Chase
>was mentioned quite often, but their CFO was seen
>having coffee this morning at a Morgan Stanley Internet
>Conference, so the rumor about them is suspect. Then
>again, maybe that is how one quells rumors about facts.
>
>What we do know is that the 10 year swap spreads
>continue to widen dramatically which demonstrates tremendous
>liquidity stress in the financial system. At last
>notice they had risen to 112 basis points and had
>reached a high of 114 points. In our last report to
>you about them, they were 100 and that was a decade high.
>They are now 12% higher than during the financial
>crisis of last summer. Something is terribly
>wrong out there in financial land.
>
>Where there is smoke, there is fire and the smoke
>is billowing now. All the more reason these Hannbials
>did their "collusive" thing once again today and held
>down the price of gold. Same old song. They are
>so obvious! Their days are numbered!
>
>More on the news front:
>
>We have also heard that Conti Financial is bust as
>they have some trade coming due August 22 and that will be
>their undoing as that trade is underwater.
>
>Along the same line, word is out that
>Long-Term Capital Management has big problems again -
>their British Pound/D Mark derivative trade supposedly
>went awry.
>
>But the biggie news is good ole Tiger.
>
>This giant of hedge funds is in deep trouble. We are
>enraged at them because we hear they are short some
>10 million ounces of gold. They borrowed this gold and
>are using the proceeds from the sale of the gold to try
>and help them out of their financial mess. We have
>reported to you that their borrowing coincided with
>the Bank of England gold sale and that it was a
>collusive effort by our officialdom (N. Y. Fed and
>Treasury), the British Government, Goldman Sachs, and
>Tiger. Yes, a CONSPIRACY to trash the gold market
>and protect the positions of the bullion dealer shorts.
>
>Well, Tiger-we want the Café to know the mess you
>are in as payback for your participation in the
>gold market manipulaton.
>
>A year ago you had $22 billion in capital. Because
>of your lousy performance, redemptions came
>pouring in. That took you down to $12 billion.
>You have certain positions that are very illiquid-
>"liquidity" and margin pressures are taking their toll.
>
>Then, mid-year redemptions took more capital out and
>we hear you are down to $9 billion in capital. Before you
>know it, you start losing your cool and spout off
>to the press about your big U.S. Air position, etc.
>Very unseemly. This only adds to suspicions about
>your troubles.
>
>After hearing of this, I then called one of my
>most plugged in sources to further check on Tiger.
>He told me that Tiger was down 17% to 20%
>(most likely 19%) year to date. That
>adds validity to this email I received this AM:
>
>"I have not seen it in print but Bloomberg radio
>this AM discussed Tiger fund and loss of capital
>and possible merger according to a friend!"
>
>Yes Siree Bob, the Heat is on Hannibal & Co. and
>intensifying. What will the "Hannibals" do if Tiger
>has to cover its big gold borrowing short position?
>Make a call to Peter Fisher at the N.Y Fed again?
>
>I spoke with the Joint Economic Committee in the U.S.
>Congress today. They will be coming out with a statement
>very soon that the IMF GOLD SALE PROPOSAL IS "KAPUT" -
>as far as the U.S. Congress is concerned.
>
>Hannibal can color that source of that gold supply gone.
>And now he is having to deal with the government -
>slowly but surely breathing down his throat.
>
>Reuters - August 5 - New York:
>
>"CFTC says gives battered gold mkt more scrutiny"
>
>"The Commodity Futures Trading Commission is keep a
>closer eye on the gold market after the hair-raising
>fall in the gold price to 20-year lows since May,
>the regulatory body said...."We are aware of the
>market and we staying on top of it, but I don't think
>it is anything out of the ordinary," said John Phillips,
>a spokesman for the CFTC in Washington....."
>
>"While some central banks and other institutions have in
>recent years sought to enhance portfolio returns by
>direct sales of their low yielding gold reserves, or
>by loaning gold to finance short sellers, the metal's
>plunge has fanned conspiracy rumors and talk that
>bullion dealers and others may be manipulating prices
>to ensure these short positions remain profitable...."
>
>"Whether or not there has been any contact with any
>of these large traders or they have been in contact
>with us, I couldn't tell you the answer to that."END
>
>Remember, the first reports about Watergate were
>about a third rate burglary. It is only a matter of
>time before the truth is revealed as to what
>the "Hannibals" have been up to. Then, they will have
>to run for the hills
>
>The important item reported here is the word "scrutiny".
>
>GATA knows there is an investigation of sorts
>going on regarding the gold market. Since the
>investigation is about the enormous and
>very vulnerable position of the gold shorts, a
>government official is not going to come and say:
>"yes, we are investigating the short positions of
>the bullion dealers because they may be so large
>that they could not get out of those positions
>if they had to, or wanted to, on a sudden price rise."
>The is the last thing that the government wants
>let out to the press.
>
>What matters here is that Hannibal, the bullion
>dealer, knows that this "scrutiny" is going to
>grow ever more intense in the months to come. He is
>dealing with the ticking of the time clock on his
>own "time bomb".
>
>GATA thanks Richard "The General" Harmon and
>all of you that are part of the GATA e-mail army
>for barraging Congress about what is really going
>on in the gold market and for emailing so many
>members in Congress the document/letter that I
>sent to Senator Phil Gramm, Chairman of the Senate
>Banking Committee. Is it a coincidence that all
>of a sudden there are news wire reports about
>gold market "scrutiny"? I don’t think so!
>
><A HREF="http://www.lemetropolecafe.com/scripts/products.cfm";>Le Metropole
>Cafe</A>
>
>All the best,
>
>Bill Murphy
>Le Patron
>
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