Private Placement Programs/High Yield Investment Programs July 2005
So-called high yield investment programs or capital enhancement programs purport to be highly secretive, very lucrative programs of investment in various financial instruments, such as medium term notes, standby letters of credit and "prime bank" guarantees. These fraudulent programs are presented as legitimate investment vehicles being offered by "invitation only" by the "U.S. Federal Reserve Bank."
Scam artists claim that proceeds from the programs are slated for investment, often abroad. Fictitious letters are often used to convince targets that the programs are legitimate.
Targets are told that in order to participate they must provide the scam artist with verification of large (usually multi-million dollar) deposits in a personal bank account, and to provide an enlarged color copy of the signature page of the targets passport. Scam artists give guarantees, frequently in writing, that the money will remain in the targets account, under her sole control, throughout the term of the program.
The purpose of these schemes is to obtain enough information about the target to allow the scam artist to impersonate the target and take the money from the designated account.
Additional material and information that may be requested include a color photo, a reproducible copy of the targets signature and other key personal information, including a passport number, a personal bank account number, routing number and SWIFT code.
Employees of the Federal Reserve Bank of New York and the Federal Reserve System do not offer investments to the general public. Furthermore, the Federal Reserve does not use any agents that are authorized to deal with the general public.
Testimony of Herbert A. Biern: "Prime Bank" Schemes The Deputy Associate Director of Banking Supervision and Regulation before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate July 17, 1996
Development Investment Programs January 2003
Numerous investment scams purport to "enhance assets" for project development. These scams often invoke the name of the Federal Reserve or cite Federal Reserve research.
The scam artist tries to convince a would-be investor to place his funds with an asset manager, who will enhance the investment while funding various humanitarian projects, such as building bridges in developing countries.
In this scam, a target is told that the Federal Reserve uses a Federal Trading Program to enhance the U.S. economy.
According to the scam artists explanatory documents, participation in the program requires proving ownership of unencumbered assets worth $100 million or more. The target is told that these assets must then be transferred to a "safe keeping account," conveniently at the targets bank, where the target will have "complete access to [his/her] funds at all times."
Once the money is in this account, the Federal Reserve purportedly assigns a "federal trading number" so that the number of trades can be monitored. The Federal Reserve also purportedly will guarantee, in writing, the rate of return.
The purpose of the scheme is to obtain enough initial information about the target to allow the scam artist to impersonate him and take the money from the designated account.
JW
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But they said all the agreement will be signed in a bank, so it is 100% safe since banks are not allowed to conduct fraud. Some said their friends had done the PPP and became filhy rich.
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Read my other post, in response to your inquiry.
"If I tell you a secret.............."
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will (Login clearverbiage) Banking Forum Group 220.255.7.132
Re: Does PPP really exist?
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March 29 2009, 12:57 AM
Le,
If a borrower of choice, that is issuer of ( Bond/MTN/PN/Equity/Securities )
note wishes to privatly sell their notes to a lender of choice,
( one that has the funds and an account with a Bank Holding Company's
secorities brokerage ) then that is a private deal.
There are rules and guidelines to these and discounts vary accordind to the
1) Term
2) Ratings
3) Guidelines laid out as they vary with juristictions.
4) Market conditions
5) Size of issue
6) Risks ( as C rated coporates/ Junk Bonds / CMOs etc are lower in value )
Most or if not all of these notes comes with mometoriums, thereby
the need for securitisation.
A new note is issued upon the value of the note that was purchased.
Based on this, it is sold.
These are considered by regulations as non-banking activity done
in a Bank Holding Company's security Brokerage by Dealers.
The term 'Trader' does not exist.
The dealer instructs their brokers( registered brokers ) to sell to
their clients and the act is called 'trading'. There is no trader.
Private Placements are common and it is Joker Brokers/Fraudsters
who create the make belief world and there are many conmen looking for
suckers.
They misquote the regulations in their favour and as we all know,
even the Bible or Koran has been misinterpreted.
To do a PP, you start with having an acount with a Bank Holding Company's
Security Brokerage. Back the account with real money and not
some other asset like Gems or BGs etc.
here is no room for JVs and the notes comes with prospectus.
Margins are wafer thin and bank charges are as low as 5 basis points,
and not +1+1 etc.
I do not know who you are and do not wish to do any business on this forum
as this business is done with familar counterparties and not having
to put blind trust on POFs ( most are fakes ) or some coloured passport
image etc.
To do this business, you need to be established as a lender of choice and
have the funds, before the dealers open the door.
Be careful as from what you have written, it sounds bogus.
will
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will (Login clearverbiage) Banking Forum Group 220.255.7.136
Re: Does PPP really exist?
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March 29 2009, 1:13 AM
(AFX UK Focus) 2009-03-26 22:01 ANZ prices $1 bln 3-yr notes at 150bp/Libor-source
SYDNEY, March 27 (Reuters) - ANZ National (International) Ltd, a unit of Australia & New Zealand Banking Group (ANZ) has raised $1 billion of three-year 144a reg S notes at 150 basis points over US Libor, a source said.Interactive Investor - Mar 26 3:25 PMAmkor Announces Pricing of $240 Million of its 6.00% Convertible Senior Subordinated Notes Due 2014
CHANDLER, Ariz.----Amkor Technology, Inc. today announced that it has priced its offering of $240 million aggregate principal amount of its 6.00% Convertible Senior Subordinated Notes due 2014 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended , and to Mr.Business Wire via Yahoo! Finance - Mar 26 5:30 PM37AV GENERAL ELECTRIC CAPITAL CORP 4.625%TOFR EU SUB DEB15/09/66 EUR(144A)
You can customise the chart using the options above. To zoom in on a particular section of the chart, click and drag your mouse across the chart. To zoom out, double click anywhere on the chart.London Stock Exchange - Mar 25 10:09 AMHedge Funds for Habitat-NYC to Ring the NASDAQ Stock Market Closing Bell
ADVISORY, March 27, 2009 --GlobeNewswire via Yahoo! Finance - Mar 27 9:12 AMGay & Lesbian Alliance Against Defamation (GLAAD) President to Ring The NASDAQ Stock Market Closing Bell
ADVISORY, March 27, 2009 --GlobeNewswire via Yahoo! Finance - Mar 27 9:04 AMAuthor David Meerman Scott to Ring The NASDAQ Stock Market Opening Bell
ADVISORY, March 27, 2009 --GlobeNewswire via Yahoo! Finance - Mar 27 7:04 AMAmkor Announces Pricing of $240 Million of its 6.00% Convertible Senior Subordinated Notes Due 2014
Amkor Technology, Inc. (Nasdaq: AMKR) today announced that it has priced its offering of $240 million aggregate principal amount of its 6.00% ...Finanzen.net - Mar 26 5:45 PM(AFX UK Focus) 2009-03-24 23:01 New Issue-Kansas City Southern de Mexico sells $200 mln notes
March 24 (Reuters) - Kansas City Southern de Mexico, a unit of Kansas City Southern Industries, on Tuesday sold $200 million of 7-year senior unsecured notes in the 144a private placement market, said IFR, a Thomson Reuters service.Interactive Investor - Mar 24 4:25 PMNASDAQ OMX Comments On Treasury Secretary Timothy Geithner Testimony On Derivatives
NEW YORK, March 26, 2009 -- The NASDAQ OMX Group, Inc. today commented on Treasury Secretary Timothy Geithner's testimony before the House Financial Services Committee. NASDAQ OMX fully supports Secretary Geithner's proposed regulatory reforms that call for, among other things, to increase the use of central counterparty clearing for OTC derivatives.GlobeNewswire via Yahoo! Finance - Mar 26 5:36 PMCMP Susquehanna Radio Holdings Corp. and CMP Susquehanna Corp. Announce Acceptance of $175. 46 Million of Notes in ...
ATLANTA----CMP Susquehanna Radio Holdings Corp. announced today that CMP Susquehanna Corp. , a wholly owned subsidiary of the Company, had accepted for exchange, and issued the new securities being exchanged for, all $175,464,000 aggregate principal amount of outstanding 9 7/8% Senior Subordinated Notes due 2014 of CMPSC that were tendered for exchange in the Company's and CMPSC's previously ...Business Wire via Yahoo! Finance - Mar 26 1:03 PM
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One of the things to consider about PPP is that banks do not need to issue debt at such huge yields in the "private market" when they are issuing at far lesser yields in the public market. Any trader who tells you he has DB BG's at 59 is a muppet. Why would DB need to give such a massive 1 year yield? Answer: They don't!!!!
Private Placement deals are not off balance sheet, as some PPP fans will try and tell you. Most of the structured products i create are termed private placement, yet they are not off balance sheet items.
I personally feel PPP has really been brought to everyone's attention by the explosion in spreads in the bond market (particularly in financials) which has mean bonds trading at huge discounts to par. For example, take a look at some of the tier 1 stuff on banks thought to be possibly nationalised- the stuff is trading around 40c on the $1. (Tier 1 debt would be treated as equity if a bank is nationalised, and therefore wiped out). Whenever you see bonds trading at such discounts, it always finds the attention of unscrupulous idiot joker brokers. People who have no idea what duration means, or convexity.
Also, it's funny how no one will ever show you details of a PPP, how it has performed and how returns have been generated?????
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will (Login clearverbiage) Banking Forum Group 220.255.7.233
Re: Does PPP really exist?
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March 30 2009, 7:48 PM
G,
That's when He Man comes in and Le Chau is probably still confused,
like many who want to believe, perhaps for the sake of hope.
That is why it is called 'Hope Money'.
"Joker Brokers of the galaxy, get to the 7 Master Traders of the universe.
When you finally do, HPOE".
will
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will (Login clearverbiage) Banking Forum Group 220.255.7.192
Re: Does PPP really exist?
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March 30 2009, 8:32 PM
Moderator,
I really miss the Edit Feature.
Seems that I can't spell 'HOPE'
Thanks,
will
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