(WMR) -- Intelligence
agencies in China and Japan are focusing on the role of a successor entity of
Salomon Brothers as being behind a fraud against Japanese banks
by the U.S. Treasury, the Federal Reserve, and Wall Street to
bail out unscrupulous Wall Street bankers and mega-investors.
Salomon was the first to offer mortgage bonds to infuse
capital into failing firms. It began its mortgage bond business in 1935 to
circumvent a �capital strike� organized by Wall Street�s top investment firms
to protest Securities and Exchange Commission Chairman Joseph P. Kennedy�s
tough new regulations on Wall Street following the Great Depression.
In 1962, Salomon teamed up with Merrill Lynch, Blyth &
Co., and Lehman Brothers to form the �Fearsome Foursome.� The foursome became aggressive
as block traders of stocks and bonds and took over bond trading from
When the Republican Congress approved deregulation of
mortgage trading in the 1980s, Salomon was in the cat bird�s seat as savings
and loans began selling mortgages as bonds. Under John Gutfreund as CEO,
Salomon became the king of the mortgage-backed securities market. However, the
savings & loan scandal, a Treasury bill (T-Bill) scandal in which Salomon
submitted false bids to the Treasury Department to purchase more Treasury bonds
than legally permitted, and involvement in the junk bond
business ultimately led the SEC to fine Salomon and bar Gutfreund from
ever serving as a CEO of a brokerage firm. Salomon was acquired by Travelers
Group and later by Citigroup and was briefly known as Salomon Smith Barney.
Salomon is now an autonomous division of Citigroup Global Markets.
Chinese and Japanese intelligence agencies that look closely
at financial malfeasance are alarmed that the Salomon division of Citigroup has
managed to take over all of Lehman Brothers� viable assets, leaving the U.S.
bankruptcy court holding the debt of the failed securities firm. Lehman
Brothers filed for Chapter 11 bankruptcy on September 15, 2008. Lehman had
borrowed billions from two Japanese banks -- Nomura and Sumitomo Mitsui -- to
stay afloat. Our Asian intelligence sources report that the Salomon
division of Citigroup engaged in a massive fraud scheme with the connivance of
the Treasury Department of Henry Paulson and the Federal Reserve Bank of Ben
The Japanese government of Prime Minister Taro Aso realizes
the impact of the fraud committed against its banks by Salomon/Citigroup and
has backpedaled on an earlier promise to hold snap early elections. The opposition
Democratic Party, which controls the upper house of the Japanese parliament,
smells blood in the water and wants to see early elections.
WMR has also learned that a number of CIA officers are in
Beijing to try to prevent a united Asian front against Washington�s and Wall
Street�s attempts to call the shots on the global financial crisis. The CIA�s
top priority is to ensure that nothing interferes with China�s continued
backing of the U.S. dollar.
published in the Wayne
Copyright � 2008 WayneMadenReport.com
Madsen is a Washington, DC-based investigative journalist and
nationally-distributed columnist. He is the editor and publisher of the Wayne Madsen Report