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.

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.

*Written by Rob Rimes.

Yesterday was a pretty emotional day for Paul supporters everywhere. The Paul campaign announced that they would no longer compete in the states that have not yet voted as it would cost too much money moving forward. In fact, here is what Ron Paul said himself:

Moving forward, however, we will no longer spend resources campaigning in primaries in states that have not yet voted. Doing so with any hope of success would take many tens of millions of dollars we simply do not have.

This is completely understandable and really just goes to show how fiscally responsible Dr. Paul truly is, especially when comparing him to his conservative counterparts who spent themselves into oblivion and racked up some serious campaign debt. With that being said, this is only more reason to vote for the man as he knows where to draw the line and also knows what all of Paul supporters know, which is that we will all continue to vote for the man regardless of the campaign’s inability to compete with the Wall Street funded Mitt Romney. When those Occupy kids are looking for a leader it should probably be the guy whose campaign is funded by the downtrodden 99 percent as opposed to the 1 percent big bank bank funded candidates like Romney and Obama.

This doesn’t mean that Paul is completely out of this race. As was just mentioned, his supporters are loyal and will vote for him despite this seemingly tragic pitfall. The hunt for delegates will continue and ultimately, Ron Paul will continue to surprise the doubters and make a serious impact on this race. This isn’t blind faith or overly-loyal Paulbot idiocy, this is facts. I doubted the campaign’s strategy but have since learned that in the realm of acquiring delegates, they are doing a hell of a job. The media doesn’t accurately report on what’s going on in the delegate hunt and honestly, you can go to various mainstream media sites and look at their delegate counts and the numbers don’t match – corporate media is clueless. Romney may have been announced the winner in Maine but Paul walked away with the most delegates. Santorum and Gingrich have lost theirs and with 11 states left to vote, Paul could continue to be a thorn in the side of the establishment beast. As I’ve said many times, this isn’t about winning, this is about the message and gaining enough support to stamp it on the leviathan’s forehead before it is once again let loose on the masses. In other words, Paul might not win the fight but he is going to break a motherfucker’s nose.

Even though the mainstream media has been quick to gleefully write Paul off as a quitter, his forces are moving forward – just more covertly in a way that is unique and foreign to these political experts spewing regurgitated pre-written bullshit through our television and radio speakers. In order to dispel the mainstream hogwash, Paul’s chief strategist Jesse Benton sent out an official statement. Here is some of what that memo states:

Let me be very clear. Dr. Paul is NOT ending his campaign. As Dr. Paul has previously stated, he is in this race all the way to the Republican National Convention in Tampa this August. Looking ahead, our campaign must honor that trust by maximizing our resources to ensure the greatest possible impact at the National Convention. So while our campaign is no longer investing in the remaining primary states, we will continue to run strong programs at District and State Conventions to win more delegates and alternate delegates to the National Convention.

To this end, our campaign has several positive and realistic goals: 1) Having recently WON Maine, we believe we can win several more states. 2) We will win party leadership positions at both the state and national level. 3) We will continue to grow our already substantial total of delegates.

We will head to Tampa with a solid group of delegates. Several hundred will be bound to Dr. Paul, and several hundred more, although bound to Governor Romney or other candidates, will be Ron Paul supporters.

Unfortunately, barring something very unforeseen, our delegate total will not be strong enough to win the nomination. Governor Romney is now within 200 delegates of securing the party’s nod. However, our delegates can still make a major impact at the National Convention and beyond. All delegates will be able to vote on party rules and allow us to shape the process for future liberty candidates.

We are in an excellent position to make sure the Republican Party adds solid liberty issues to the GOP Platform, which our delegates will be directly positioned to approve. Our campaign is presently working to get several items up for consideration, including monetary policy reform, prohibitions on indefinite detention, and Internet freedom.

Finally, by sending a large, respectful, and professional delegation to Tampa, we will show the Party and the country that not only is our movement growing and here to stay, but that the future belongs to us…

Considering that two of the biggest states, California and Paul’s home state Texas, haven’t yet voted, there are a shitload of delegates that could easily go Paul’s way, especially since he has performed well in both of those states. The race is still as interesting as it has been all along, even though the media is ignoring Paul and pretending he isn’t even a part of this race anymore. Their “out of sight, out of mind” strategy hasn’t worked in the past and it won’t work this time. Paul supporters aren’t going anywhere and their numbers will continue to expand.

In retrospect, was this even about winning the presidency or was this about turning the Republican Party on its head and making a real difference? Is this really about shattering one half of the two-party mold in an effort to fix the system from within? If so, will it work? Either way, this game has been well-played by the Paul camp and ultimately it’s up to us everyday people to see that the message is sent and clearly understood. From here on out, this game is going to get pretty fucking filthy. Put on your gloves because we aren’t done swingin’!

Occupy Wall Street demonstrators, whose anti-greed message spread worldwide during an eight-week encampment in Lower Manhattan last year, plan marches across the globe tomorrow calling attention to what they say are abuses of power and wealth.

Organizers say they hope the coordinated events will mark a spring resurgence of the movement after a quiet winter. Calls for a general strike with no work, no school, no banking and no shopping have sprung up on websites in Toronto, Barcelona, London, Kuala Lumpur andSydney, among hundreds of cities in North America, Europe and Asia.

CONTINUED at Bloomberg.

The world’s biggest banks are working with one another and police to gather intelligence as protesters try to rejuvenate the Occupy Wall Street movement with May demonstrations, industry security consultants said.

Among 99 protest targets in midtown Manhattan on Tuesday are JPMorgan Chase and Bank of America offices, said Marisa Holmes, a member of Occupy’s May Day planning committee.

Events are scheduled in more than 115 cities, including an effort to shut down the Golden Gate Bridge in San Francisco, where Wells Fargo investors relied on police to get past protests at their annual meeting this week.

“Our goal is to kick off the spring offensive and go directly to where the financial elite play and plan,” she said.

After evictions and arrests from Manhattan’s Zuccotti Park to London that began last year, the movement against income inequality and corporate abuse will regain strength, said Brian McNary, director of global risk at Pinkerton Consulting & Investigations.

CONTINUED at The San Francisco Chronicle.

The Democrats, the Republicans and especially Barack Obama promised that something would be done about the too big to fail banks so that they would never again be a threat to destroy our financial system.  Well, those promises have not been kept and the too big to fail banks are now muchbigger and much more powerful than ever.  The assets of the five biggest U.S. banks were equivalent to about 43 percent of U.S. GDP before the financial crisis.  Today, the assets of the five biggest U.S. banks are equivalent to about 56 percent of U.S. GDP.  So if those banks were “too big to fail” before, then what are they now?  They continue to gobble up smaller banks at a brisk pace, and they continue to pile up debt and risky investments as if a day of reckoning will never come.  But of course a day of reckoning is coming, and when it arrives they will be expecting more bailouts just like they got the last time.

The size of these monolithic financial institutions is truly difficult to comprehend.  They completely dominate our financial system and everywhere you look they are constantly absorbing more wealth and more power.  The following comes from a recent Bloomberg article….

Five banks — JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC), Citigroup Inc., Wells Fargo & Co. (WFC), and Goldman Sachs Group Inc. — held $8.5 trillion in assets at the end of 2011, equal to 56 percent of the U.S. economy, according to central bankers at the Federal Reserve.

Five years earlier, before the financial crisis, the largest banks’ assets amounted to 43 percent of U.S. output. The Big Five today are about twice as large as they were a decade ago relative to the economy

Despite all of the talk from the politicians, they just keep getting bigger and bigger and bigger.

So why isn’t anything ever done?

CONTINUED at the Economic Collapse.

If there is one skill Goldman Sachs Group Inc. GS +1.58% traders pride themselves on, it is the art of buying low and selling high.

But last year, anticipating new regulatory restrictions on proprietary trading and seeking to reduce the bank’s exposure to risky assets, Goldman loan traders unloaded hundreds of millions of dollars of leveraged loans at a loss, people familiar with the matter say. Making matters worse, many of those loans have since jumped in value.

Details of one trade in particular have recently caused a stir in the market. In November, Goldman sold about $85 million of loans in troubled newspaper publisher Lee Enterprises Inc.LEE 0.00% Goldman sold the debt at about 65 cents on the dollar, having bought it months before at around 80 cents, resulting in a loss of at least $13 million.

The buyer: a unit of Warren Buffett’sBerkshire Hathaway Inc., BRKB +0.24%according to several people familiar with the matter.

Mr. Buffett has since made a tidy paper profit on the loans, which are now worth about 82 cents on the dollar, the people said.

A Goldman spokesman declined to comment on the loan sales. Mr. Buffett didn’t return requests for comment.

CONTINUED at the Wall Street Journal.

It’s one of the biggest mysteries on Wall Street. How can stocks be in their fourth year of a bull market and trading activity be so low?

During March, average daily volume in equity shares was at their lowest level since December 2007, according to new data from Credit Suisse. This is the same month that marked the three-year anniversary of the bull market that caused the Standard & Poor’s 500 to double from its March 2009 credit-crisis low.

Credit Suisse tried to solve the riddle by blaming the growing popularity of options and futures markets , a drop in high frequency trading and stock splits.

“There’s no way to sugar-coat it: Volumes are down and trending lower,” wrote Ana Avramovic of Credit Suisse, in a note to clients. “A growing preference for other asset classes may be drawing money away from equities.”

Daily equity volume in March was 6.59 billion shares a day, the lowest since a sub-6 billion volume month in December 2007, according to Credit Suisse. (The firm adjusted December 2011’s low figures to account for the holiday-skewed week.)

CONTINUED at CNBC.

Several hundred Occupy Wall Street activists marched through Manhattan on Saturday to protest against what they say is police repression as they try to revive their movement.

Several demonstrators were arrested along the route of the march in scuffles with New York police, who deployed in large numbers to keep activists on sidewalks.

“There were a few arrests, but we don’t have a final number yet,” an NYPD spokeswoman said.

Skirmishes between police and Occupy protesters, who say they represent America’s “99 percent” against a ruling “one percent,” have become near daily occurrences in New York since the spring weather turned warm in recent days.

After surging to international prominence six months ago with its occupation of a plaza near Wall Street, the loosely led organization largely dropped out of the news over the winter. But efforts are building to get Occupy Wall Street back on the move.

“I’m so glad so many of the 99 percent are here today,” one organizer, Aaron, who refused to give his last name, told a crowd of about 200 gathered at Union Square following the march.

“They said we were over, they said we were hibernating, they said we were asleep. Do we look asleep?”

CONTINUED at The Raw Story.