Regulators urge international action on derivatives

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Central banks and financial houses will work together to fix troublesome markets

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Regulators Urge Joint Action on Derivatives

By Gillian Tett and Anuj Gangahar
Financial Times, London
Wednesday, September 27, 2006

http://www.ft.com/cms/s/7af25f72-4e54-11db-bcbc-0000779e2340.html

Three of the world's most powerful financial regulators have taken the unusual step of issuing a joint warning that individual nations cannot contain some of the risks posed by the explosive growth of derivatives and must collaborate across borders.

You're invited to GATA's reception during the New Orleans Investment Conference

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11:47p ET Wednesday, September 27, 2006

Dear Friend of GATA and Gold:

The Gold Anti-Trust Action Committee invites its friends to an evening reception in a historic setting during and just a few blocks from the 2006 New Orleans Investment Conference:

Saturday, November 18, 2006
7-9 p.m.
Latrobe's on Royal
403 Royal St.
New Orleans, Louisiana

Tickets: $30 per person
Complimentary beer, wine, and hors d'oeuvres

Treasury irked that somebody else may be rigging markets

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From Reuters
Wednesday, September 27, 2006

http://today.reuters.com/news/articleinvesting.aspx?type=governmentFilin...

WASHINGTON -- U.S. financial regulators are concerned by an increase in instances of firms trying to profit from controlling a particular Treasury security, a Treasury official told a bond market group on Wednesday.

Enron CFO says banks were part of crooked schemes

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By Laurel Brubaker Calkins and Thom Weidlich
Bloomberg News Service
Tuesday, September 26, 2006

http://www.bloomberg.com/apps/news?pid=20601087&sid=avUgn8g2tTk8&refer=h...

Andrew Fastow, Enron Corp.'s former finance chief and architect of the fraud that led to the energy trader's bankruptcy, said company banks, including Merrill Lynch & Co. and Credit Suisse, were in on his scheme.

"In many instances, the financial transactions in which I engaged related to Enron were done with the knowledge of senior management, some of Enron's banks, and others, and were done primarily to meet Enron's financial reporting and credit-rating targets," Fastow said in a declaration filed in an investor securities-fraud case in Houston today.

Central bank rush to dishoard pushed gold down for two months ...

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... but desire to sell seems to be fading.

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Gold Sales Fall Well Below Limit
Set in Central Banks' Agreement

By Kevin Morrison
Financial Times, London
Wednesday, September 27, 2006

http://www.ft.com/cms/s/42d5707e-4dc4-11db-8704-0000779e2340.html

European central banks have been big sellers of gold over the past six years but this year they appear to have lost their desire to sell the metal even though gold prices have been much higher.

Many Americans suspect gas price decline is political market rigging

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Americans Skeptical of Gas Price Drop

By Brad Foss
Associated Press
Monday, September 25, 2006

http://biz.yahoo.com/ap/060925/gas_prices.html?.v=1

WASHINGTON -- There is no mystery or manipulation behind the recent fall in gasoline prices, analysts say. Try telling that to many U.S. motorists.

Almost half of all Americans believe the November elections have more influence than market forces. For them, the plunge at the pump is about politics, not economics.

China has enough dollars but maybe not enough oil and gold

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The Trillion-Dollar Question:
China is Grappling With
How to Deploy
Its Foreign-Exchange Riches

By Richard McGregor
Financial Times, London
Monday, September 25, 2006

http://www.ft.com/cms/s/35ee4216-4c32-11db-90d2-0000779e2340.html

It operates out of a nondescript office tower in Finance Street and, shortened to its English acronym, "SAFE," sounds like one of those fictitious shadowy organisations from a Sixties spoof spy show. But the Beijing-based State Administration of Foreign Exchange has a serious, real-world job -- to manage China's towering stack of foreign currency holdings.

Ted Butler: Hedge fund's collapse proves concentration in commodity markets

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11:37p ET Tuesday, September 26, 2006

Dear Friend of GATA and Gold:

Silver market analyst Ted Butler argues persuasively in his latest essay, "Concentration," that the collapse of the Amaranth Advisers hedge fund is proof of excessive concentration in the commodities markets. Amaranth's position in natural gas, Butler writes, "was so large and made up such a big chunk of the market that when it was liquidated it wasn’t even truly liquidated. It had to be assumed by other entities in arranged transactions." But the market regulators missed this concentration, just as they have studiously missed the concentration of the short positions in the silver market.

Commodities undervalued by 30%, Morgan resources fund manager says

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By Jennifer Hill
Reuters
Monday, September 25, 2006

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=managerMo...

LONDON -- The oil price might have fallen almost 25 percent from its peak, but the commodities sector as a whole is undervalued by around 30 percent -- giving further opportunity for growth -- according to one fund manager.

Goldcorp CEO claims most institutional shareholders back bid for Glamis

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By Rachelle Younglai
Reuters
Monday, September 25, 2006

http://news.yahoo.com/s/nm/20060926/wl_canada_nm/canada_minerals_confere...

DENVER -- Goldcorp Inc.'s chief executive said on Monday that the majority of the company's institutional shareholders are in favor of its plan to take over Glamis Gold Ltd. in an all-stock deal.

"We have certainly talked to the majority of our institutional shareholders," Ian Telfer told Reuters on the sidelines of the Denver Gold Forum, an industry conference.