There has been no official announcement. No terms or conditions have been disclosed. But Greece’s banking system is being propped up by an estimated €100 billion or so of emergency liquidity provided by the country’s central bank — approved secretly by the European Central Bank in Frankfurt. If Greece were to leave the eurozone, the immediate cause might be an ECB decision to pull the plug.

Extensive use of “emergency liquidity assistance” (ELA) to help banks in the weakest economies has been one of the less-noticed features of the eurozone crisis. Separate from normal supplies of liquidity and meant originally as a temporary facility for national authorities to use when banks hit problems, ELA proved a lifesaver for the financial system Ireland and is now even more so in Greece. As such, it has given the ECB — which has ultimate control over the facility — considerable power to determine countries’ fates.

Whether that power would ever be exercised is unclear. ELA is a subject on which the ECB is deeply reluctant to provide information — even on where or when it is provided.

CONTINUED at CNBC.

China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury’s first-ever direct relationship with a foreign government, according to documents viewed by Reuters.

The relationship means the People’s Bank of China buys U.S. debt using a different method than any other central bank in the world.

The other central banks, including the Bank of Japan, which has a large appetite for Treasuries, place orders for U.S. debt with major Wall Street banks designated by the government as primary dealers. Those dealers then bid on their behalf at Treasury auctions.

China, which holds $1.17 trillion in U.S. Treasuries, still buys some Treasuries through primary dealers, but since June 2011, that route hasn’t been necessary.

The documents viewed by Reuters show the U.S. Treasury Department has given the People’s Bank of China a direct computer link to its auction system, which the Chinese first used to buy two-year notes in late June 2011.

CONTINUED at Reuters.

Facebook shares fell more than 13 percent, falling below its $38 price of itsinitial public offering, in the social network’s second day of trading as a public company.

Meanwhile, the NASDAQ exchange continued to defend itself regarding the IPO’s delay on Friday.

The company’s shares [FB  34.03    -4.2018  (-10.99%)   ] last traded down more than 13 percent. The stock had previously closed 0.6 percent higher on Friday.

Investors and technology industry watchers are closely tracking the Menlo Park, Calif., company’s shares. The world’s largest social network was one of the most anticipated initial public stock offerings ever, and now serves as a bellwether for other social media companies.

Facebook’s market debut Friday suffered some hiccups, with trading on the Nasdaq delayed for a half hour and issues with traders’ orders. The stock closed Friday just 23 cents above where it priced Thursday night, when many investors had hoped for a big first-day pop.

Facebook shares fell below the offer price Monday before the market’s open. It was unclear at that time whether underwriters such as Morgan Stanley [MS 13.25    -0.10  (-0.75%)   ] would step in to help stabilize the stock.

Facebook Inc. (FB) is set to start trading today after a record initial public offering that made the social network more costly than almost every company in the Standard & Poor’s 500 Index. (SPX)

Facebook sold 421.2 million shares at $38 each to raise $16 billion, a statement yesterday shows. That values the Menlo Park, California-based company at $104.2 billion, or 107 times trailing 12-month earnings, more than every S&P 500 member except Amazon.com Inc. and Equity Residential.

CONTINUED at Bloomberg.

Mitt Romney continued to drive a debt-oriented message here on Wednesday morning, extending his “prairie fire” of debt metaphor with the assistance of a prop.

In a nod to the independent voters who pushed the Sunshine State into the Democratic column in 2008, Romney noted that both parties were responsible for pushing the debt to the “incomprehensible” levels – which were represented on a giant prop debt clock behind him.

CONTINUED at MSNBC.

Spain tumbled into recession and European stock markets and the euro fell Thursday as Greece installed a crisis government to tackle its crippling debt, EU leaders prepared for talks and analysts raised the spectre of a run on eurozone banks.

“Markets are worried about eurozone bank deposit runs and an escalating banking crisis,” London-based VTB Capital economist Neil MacKinnon told AFP.

Heavy withdrawals of deposits have been reported in Greece and Spain, and top European Union leaders were to hold a videoconference.

They were initially to discuss an upcoming G8 meeting of industrialised countries but were now faced with a serious deterioration of the situations in Greece and elsewhere across the eurozone.

A caretaker government took office in Athens on Thursday to organise its second election in six weeks after an inconclusive May 6 vote as fears over its possible euro exit rocked Spain and Italy.

The election left Greece in limbo and the new poll on June 17 offers no guarantee of a viable government able to implement an EU-IMF bailout which has divided the country.

The International Monetary Fund announced Thursday that it would hold off on official contacts with Greece until after the June 17 elections.

CONTINUED at Yahoo News.

The federal government paid at least $439 million in employee bonuses last year, down $43 million since new austerity restrictions were announced.

The largest merit awards went to senior executives in Washington and air traffic controllers, an Asbury Park Press investigation found. The highest award, $62,895, went to 16 employees from agriculture to NASA.

The $439 million in bonuses may be a staggering amount — enough to buy the former New Jersey Nets, valued at about $357 million by Forbes magazine — but it represents just 0.4 percent of the $105 billion in salaries for most of the government’s civilian employees. In 2010, at least $482 million was paid in bonuses, according to federal data.

CONTINUED at the Asbury Park Press.

STORY 1: Obama worth as much as $10 million

Three things are apparent from President Obama’s annual financial disclosure statement, released today:

He is a wealthy man, with assets of as much as $10 million.

He has a hefty stake in JPMorgan Chase, the megabank that just made a bad $2 billion bet. Obama has an account worth between $500,000 and $1 million.

Despite the nation’s $15.6 trillion debt, he is a believer in government paper. More than half of his assets are in Treasury bills and notes.

The disclosure statement lists assets and liabilities in dollar ranges, so pinpointing the president’s net worth is difficult. His assets appear to tally between $2.6 million and $9.9 million. He holds a mortgage on his Chicago home of $500,000 to $1 million.

As was clear from Obama’s income tax filing, much of his income continues to roll in from book royalties. The disclosure form lists $100,000 to $1 million in royalties from Dreams From My Father, $100,000 to $1 million from Of Thee I Sing: A Letter to My Daughters, and $50,000 to $100,000 from The Audacity of Hope.

Vice President Biden, on the other hand, isn’t all that wealthy. His financial disclosure statement includes less than $1 million in assets — and as much as $1.5 million in liabilities, including between $500,000 and $1 million on his Wilmington home.

Source: USA Today.

STORY 2: Obama has up to $1 million with JPMorgan Chase

US President Barack Obama has up to $1 million in a JPMorgan Chase checking account, the White House said Tuesday as a controversy deepened over the bank’s $2 billion dollar losses.

Public figures in the United States are required by law to publish their assets and investments to avoid conflicts of interest, and the White House releases disclosures for Obama and Vice President Joe Biden each year.

As well as the between $500,000 and $1 million in the JPMorgan Chase Private Client Asset Management checking account, Obama also has millions of dollars in a variety of other accounts and funds, bonds and treasuries.

The largest holding, according to the disclosures, is between one and five million dollars in US Treasury notes.

Most of Obama’s wealth comes from book royalties, including from his best selling autobiography “Dreams From My Father.”

Obama said during a television interview with ABC’s “The View” broadcast Tuesday that the $2 billion in derivatives losses suffered by JPMorgan proved the need for tighter banking regulation.

He also said that JPMorgan chief Jamie Dimon was “one of the smartest bankers we got and they still lost money.”

“They still lost $2 billion dollars and counting precisely because they were making bets in these derivative markets. This is why we passed Wall Street reform.”

The US Justice Department has opened an FBI probe into JPMorgan Chase’s more than $2 billion trading loss, a person familiar with the matter told AFP Tuesday.

News of the investigation came as Dimon, JPMorgan’s embattled chief executive, faced criticism at the company’s annual shareholders meeting in Tampa, Florida, over the shock loss.

Source: Yahoo News.

Spinners and Winners

Rep. Nancy Pelosi, D-Calif., became the most powerful woman in American history when she was sworn in as Speaker of the House in 2007. She lost that power four years later and is now hell-bent on winning it back. Spinners and Winners caught up with Pelosi on her early morning power walk by the Potomac River.

The 72-year-old grandmother shows no signs of slowing down as she briskly walks along the paved paths of Georgetown’s waterfront park and sums up her goal for the year with these words: “Just win, baby.”

“They have endless money, secret, undisclosed, special interest money that they pour into elections,” a slightly out-of-breath Pelosi said of Republican opponents. “But I think we can offset it. We have out-raised them, out-redistricted them, out-recruited them.”

Pelosi has been a veritable fundraising machine, raising more than $43 million for Democrats in this election cycle and attending nearly 500 fundraisers. The Democratic leader has put her heart and soul into winning back the house for Democrats, but she insists she is motivated by more than winning back the Speaker’s gavel.

“It isn’t about me, it is about what is at stake in this election and quite frankly I wish that so much were not at stake in this election.”

Pelosi also had some harsh words for fellow progressive Russ Feingold, who recently accused her of not doing enough to protect Social Security and Medicare. Check it out on this week’s Spinners and Winners.

Source: Yahoo News. Video at link.

Globalists fear Greece could exit single currency and stage a miraculous economic recovery.

The Bilderberg Group is terrified that Greece’s potential exit from the eurozone could lead to a dramatic economic recovery and provide a template for other countries to follow suit, threatening to torpedo the euro single currency and the entire agenda for a European federal superstate.

One of the primary discussion topics at this year’s upcoming Bilderberg Group meeting in Chantilly, Virginia will revolve around how the elite plan to address the issue that threatens to bring their agenda for global governance crashing down – the euro crisis.

The increasing threat of Greece abandoning its promise to honor draconian bailout terms agreed with Brussels and Berlin last night led German chancellor Angela Merkel to acknowledge for the first time that Greece could exit the euro, a likelihood that has sent the single currency along with financial markets plunging in recent days.

The euro crisis is now at its most severe point in history, outstripping similar crisis points which coincidentally also occurred just before the annual Bilderberg Group meetings in 2010 and 2011.

On both of those occasions, political consensus formed by Bilderberg members was enough to keep the euro on life support for another 12 months each time, and the same globalists will once again try and hammer out a strategy behind closed doors that will provide redemption for their cherished pet project.

CONTINUED at Prison Planet.