Eastman Kodak Silver Scandal?

As we move into the next silver delivery month of February and the controversy surrounding the MF global bankruptcy still swirling in the minds of investors, the world’s largest consumer of silver, Eastman Kodak, files bankruptcy.  Sign-up for my 100% FREE Stock Alerts

The timing of Eastman Kodak’s bankruptcy, the massive amount of silver it consumes each year, as well as the consulting firm hired to sort out the mess will most likely make for another interesting conspiracy theory, indeed.

Eastman Kodak filed for Chapter 11 bankruptcy on Jan. 19.  The 131-year-old company manufactures photography equipment and paper, printers and other products.  According to Bloomberg News, Eastman Kodak consumes approximately 8.5 million ounces, or $300 million worth of silver, each year for its manufactured goods and supplies.

Though 8.5 million ounces of silver doesn’t appear to be a lot of consumption each year, at this time of questionable supplies, it could be quite significant, especially when demand from investors and China for the white metal is rising at an alarming rate, while alleged inventories at the COMEX hover at 35 million ounces of unencumbered silver.

Economist and author of Red Alert: How China’s Growing Prosperity Threatens the American Way of Life, Stephen Leeb, believes Sprott Asset Management’s recent communique to investors (mere days before the EK bankruptcy) that stated the Sprott’s Canada-based silver PSLV fund intends to purchase 10 million ounces of silver, an amount slightly more than Eastman Kodak’s annual 8.5 million ounces, is quite a big deal.

“What people don’t realize about silver is how illiquid silver is, and how little physical silver that is available in the market,” Leeb explained.  “Now you have the Canadian, (Eric) Sprott, who has really been spot on for more than a decade, Sprott has just raised money and needs to take delivery of another 10 million ounces of silver.  My question is, from whom?  That’s the question.

“Who is he going to buy it from?  The Chinese, who need it for solar?  It’s not around.  10 million ounces doesn’t sound like such a big number, but when you have such illiquid markets, it is a big number.  In reality, it’s a very big number, especially when you already have shortages.  People are already hoarding silver.  The Chinese are also hoarding silver.

“When you have a situation like that, you haven’t seen anything yet in the way of a bull market in silver.  There’s no way of saying how high silver is going to go, but this is going to become an exceptionally scarce commodity.”

The Internet is already abuzz at the timing of the EK bankruptcy, and for obvious reasons.  If it weren’t for the mysterious and troubling case surrounding the MF Global scam, the EK bankruptcy would probably have gone away quietly into the night as the latest example of U.S. hegemonic decline.

But, like the handlers of the MF Global bankruptcy, who have demonstrable ties to the ringleader of the silver cartel, JP Morgan, EK’s bankruptcy will be handled by a ‘turn-around’ specialist from FTI Consulting, Vice Chairman Dominic Di Napoli, a man who has been unfortunate enough to have worked for the most sleazy operators of the financial industry, behind the kingpins of JP Morgan and Goldman Sachs.

“The company [EK] . . . named Dominic Di Napoli, a vice chairman at FTI Consulting Inc., as its chief restructuring officer to help steer the company through bankruptcy court,” the Wall Street Journal reported on Thursday.

From its Web site, it appears that FTI Consulting sports a rather long list of well-known financial clients, including JP Morgan, with several consultants listed and assigned to JP Morgan.  But the most interesting consultant at FTI Consulting is Dominic Di Napoli, himself.

From the FTI Consulting Web site:

Before joining FTI Consulting, Mr. Di Napoli led the consulting practices at PricewaterhouseCoopers (“PwC”) and Coopers & Lybrand. While at PwC, he also served as the managing partner within its U.S. Business Recovery Services practice, where he initiated the discussion that led to the subsequent acquisition by FTI Consulting. Emphasis added.

A review of PwC’s involvement in scandal reveals quite a few.  In fact, PwC has been the auditors of the most notorious financial scandals of the past 15 years, with the most recent black eye coming from its involvement with MF Global and the theft of client money by another cartel operative ‘The honorable’ Jon Corzine.

MF global is only the latest of PwC’s trail of ‘negligence’ and ‘bad behavior.’  According to Wiki, PwC was involved in improprieties with the companies AIG, Refco, General Re Corp, Berkshire Hathaway, Tyco, the Sityam fraud, Yukos prosecution scandal, the Global Trust Bank misconduct (leading to a one-year ban by India’s central bank from doing business in India), the Transneft Russia scandal and Britain’s Northern Rock case.

Prior to PwC, Mr. Di Napoli worked diligently for another firm, which apparently couldn’t play it straight either.  That firm is Zolfo Cooper, a company for whom he worked in the 1980s, according to Crain’s NY Business, but this fact was neglected as a mention on Di Napoli’s biography on the FTI consulting Web site.

“The Jersey City native and Montclair State College graduate joined Price Waterhouse’s fledgling corporate recovery division in 1984 after practicing at a bankruptcy boutique firm, Zolfo Cooper & Co,” Crain’s wrote in a ‘puff piece’ regarding the up-and-coming superstar of auditors, Dominic Di Napoli.

Zolfo Cooper, the same Zolfo Cooper whose partner, Neil Cooper, has been indicted in the Carroll Trust case, a case dubbed by Global Forensics Magazine as “bigger than Madoff.”

International News Networks reported:

New sensational disclosures in the Carroll Foundation Charitable Trust huge fraud scandal has revealed that Zolfo Cooper LLP the insolvency and restructuring firm’s principle partner Neil Cooper an accountant is understood to be confronting serious ongoing criminal allegations of conspiracy to defraud and racketeering following new revelations exposed in the American and British media reports on the case. It is understood that the FBI Washington DC field office has obtained explosive further Carroll Trust case files which are thought to contain Coutts Bank Gerald Carroll fraudulent accounts “linked” to dummy fraudulent HSBC International offshore corporations which effectively impulsed this massive offshore tax evasion fraud heist operation which stretches the globe.

So what is the point of all of this and Di Napoli?  Maybe nothing.  But couldn’t someone else have handled the EK bankruptcy case?  Couldn’t Bilderberg Group member Laura Tyson, an EK board member who resigned her post a couple of months before the bankruptcy announcement, have suggested someone else to handle the impending bankruptcy who wouldn’t possibly remind us of a criminal cartel operating in the global financial system?  Sign-up for my 100% FREE Stock Alerts