Business

While it will hardly come as a shock following the turbulent events disclosed one week ago, which culminated with the "resignation" of CEO Renaud Laplanche, amid a series of complicated backdoor 'related party' transactions which could even implicate none other than company director and former Morgan Stanley CEO John Mack, moments ago LendingClub unveiled in its 10-Q filing that "on May 9, 2016, following the announcement of the board review described elsewhere in this filing, the Company received a grand jury subpoena from the U.S. Department of Justice (DOJ).

2016 was the year when, in the aftermath of the Fed's first tightening cycle in a decade, the yield curve was supposed to not only rise substantially but also steepen, providing a much needed NIM arbitrage for commercial banks. That has not only not happened, but as a result of the Fed's relent according to which the Fed will no longer hike 4 times in 2016 but at peast 2, and according to the market 0, yields have tumbled.

Authored by Peter Schiff via Euro Pacific Capital,

During a lengthy interview on CNBC the week before last, Donald Trump, fresh from becoming the presumptive Republican nominee, came as close as any major presidential contender ever has to saying that America is not capable of repaying her debts in full, and that our path to economic recovery might involve some pain for our creditors. This moment of candor earned Trump almost as much condemnation as his earlier suggestions to ban Muslims from entering the United States.

We've chronicled extensively the capital flight taking place out of China and into anything that is perceived to hold value as fears that the yuan will devalue persist (here, here, and here). We've have also covered the massive debt bubble that has been created during China's ferocious attempt to prove those who say a hard landing is inevitable wrong. George Soros and Kyle Bass also agree that China will inevitably have to devalue its currency in order to soften a crash landing, certainly not without its consequences.

As reported earlier after decades of keeping Saudi Arabian holdings of treasury paper non-public and bundled with those of other "oil exporting nations", today at 4pm for the first time the US Treasury confirmed that its "leaked" look at Saudi holdings, exposed as a result of a Bloomberg FOIA, was accurate when it reported that the Saudis owned $116.8 billion in US paper as of March 31, which made the country the 13th largest holder of US Treasurys.