NEIL KEENAN UPDATE | Making History & New Beginnings December 21, 2014 / Keenan Team | GroupK /

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NEIL KEENAN UPDATE | Making History & New Beginnings
December 21, 2014 / Keenan Team | GroupK /

Making History & New Beginnings

For approximately four years many have followed the extraordinary endeavors of Neil Keenan through numerous highs and lows.

But against all outrageous odds, his  perseverance and utter dedication to the mission have never swayed one bit.  He has held his vision and the deep understanding that he is holding the key and the right IDEAL – save the world.

Remaining steadfast in not allowing his thoughts and plans to be deterred by anyone or anything, he has always known the right way to move ahead.

There have been many opportunities to cause him to walk away from it all – incredible offers from the Cabal to go away, multiple assassination attempts on his life, and a severely painful leg injury for which he was told surgery was needed.

Any one of these events would have been enough for an ordinary man to give up, retire and wish the world good luck.  But he endured, stayed the course and kept pushing and pushing until the doors opened.  And now they have.

Not only has he and his team finally succeeded in opening the doors, the world can now see what is behind them.  Here is history in the making.

Naysayers, hateful betrayers, malevolent detractors, disinfo agents, sycophants, would-be assassins and Cabal criminals:  Rue This Day!

The Bunker Venture

In a historic precedent of enormous consequence, Neil is the first Westerner to ever enter one of the bunkers.  This one bunker (one of approximately 1,000) is a 16-acre, 4-level underground cavern filled with treasures deposited by the “Family” over many years until the present day.

Access to the bunker was not without multiple and unforeseen challenges.  A number of clearances by the Elders were required before Neil, Nelu and Jo could enter the bunker, but they remained undaunted by the long delays, lack of sleep and spare shelter conditions as they waited “on-call” for entry.

They even found some entertainment with listening to the loud mating calls of the indigenous lizards.  (Neil intends to use one of the lizard calls as a ring tone for his phone.)

A profoundly humble, pure-of-heart man, the Elder “gatekeeper” lead them to the bunker.  It is important to note that several years ago Neil underwent a ceremony conducted by the Elders to determine that his motivation was solely for the highest good — his own pureness of heart.  Only with this being indisputably established was Neil allowed to enter a bunker.

Although they were unable to obtain video inside the bunker during this first venture, what Neil and the team found were chests/boxes apparently filled with gold, jewels, museum artifacts, modern global currencies in all denominations (including 2015 US dollars printed by the Federal Reserve), and of equal magnitude, invaluable documents that detail the truth behind some of the atrocities committed against humanity.  (These documents will be used to fortify Neil’s lawsuit when it is refiled.)  If that wasn’t enough, there was even a full-sized helicopter stored inside.

Upon exiting the bunker, Neil was rewarded for his determination and courage.  The Elder gatekeeper presented him with numerous sealed and locked boxes which, as you will see in the video, required serious manual labor to break open.

Precious few have seen these boxes, much less seen them opened, because only a few have ever gotten close to them before.  Most don’t believe they exist but here is undeniable proof that they do in fact exist.  Here is the first disclosure of what one box might contain.

Before the box was opened, Neil joked that with the Keenan Team’s luck, the contents were probably from Al Capone’s vault that was moved to Asia.  In this one box were gold bars each weighing 1 kilogram (2.3 lbs) and worth approximately $50K.  The ravages of time and humidity have created oxidation and mold on the bars, but there’s no question about what lies beneath.

The Elders unequivocally support Neil and his efforts with a solid, long-term commitment to sustain his efforts.  On behalf of the world at large, we humbly thank the Elders for all that they are doing.

With these assets they are compensating Neil for some of his own expended funds and providing the backing to move forward with his operations to restore our world through humanitarian projects.  These beneficent and wise Elders have given him a “key” to enable the opening the Global Collateral Accounts.  Never before has there been such definitive proof that the Accounts exist!

While many people do not believe that there are Global Collateral Accounts, this is because the Cabal and their cronies have gone to great lengths for the world to accept this as truth.  They have everything to gain in perpetuating their programming that our destiny remains in their total control.

They would have us continue to believe that only carnage, terror and violence change the world overnight.  But we give you undeniable proof here and now that righteous and positive global events can and will manifest to transform our world.

It needs to be very clear, however, that this is not about Nesara or anything like it.  When the Accounts are finally opened, there will be much clean-up to be done and there will be humanitarian projects throughout this world, not just in the West where people will procure jobs.

There will be no hand-outs but only real work to be done to restore our civilization and live up to our potential in a reality where our species will thrive in harmony and prosperity.  These are the hard facts and to believe otherwise is nothing but delusion.

Build the Momentum!

For their part, the West must take action toward the ideal and what absolutely needs to get done.  They must find the courage to make a stand against all that is corrupt and bring real meaning to their lives with action that thwarts what is happening — the complete demise of our species.  Neil has risked all to get us to this point.

By example he has shown how one man can make a tremendous difference in this world.  It is now time to be known for your actions; to be known for leaving this world a better place than how you found it; to be known for the great potential that is inside each one of us.  Choose now the legacy that you will leave for your family and the generations to come.

Round #2 – Upcoming

What a spectacular beginning this is!  Obviously there is still an extraordinary amount of work ahead for Neil and the team, and soon the forthcoming ventures into the bunkers will yield video footage for all to see.

In watching this video you will know beyond a doubt that the Global Collateral Accounts do exist and understand how vital, and delicate, this matter will soon be.  We present this to give you an idea of some of the actual painstaking efforts involved, and, true to Keenan style, with a bit of humor.

And this is our Christmas present to you.  God bless us all – Peace and Joy to the World!



“The Opening of the Box” Video Part One
https://www.youtube.com/watch?v=I7qlHERmWDU


“The Opening of the Box” Video Part Two
https://www.youtube.com/watch?v=rfsrhB5uZJI


“The Opening of the Box” Video Part Three
https://www.youtube.com/watch?v=F1U-Ip2mUO4


Copyright © 2014, GROUP K, Ltd.
http://neilkeenan.com/neil-keenan-update-making-history-new-beginnings/

Phoenixfirebird:

(Ah, gentrification..I know…there goes the neighborhood..)

Not Content To Ruin Just San Francisco, Rich Techies Are Gentrifying Burning Man Too  « WORDVIRUS

Originally posted on WORDVIRUS:

Artist Dadara‘s Facebook like altar from Burning Man 2013. Photo: Bexx Brown-Spinelli/Flickr

This will come as news only to people who have not attended Burning Man in the last couple of years, but the New York Times has just caught on to the fact that Silicon Valley millionaires (and billionaires) have been attending the desert festival in greater numbers
and quickly ruining it with their displays of wealth. While we used to
call Coachella “Burning Man Lite for Angelenos,” Burning Man itself is
quickly becoming Coachella on Crack for rich tech folk who want to get
naked and do bong hits with Larry Page in Elon Musk’s decked-out RV.



Burners won’t just be sharing the playa with Larry and Sergey, Zuck, Grover Norquist, and at least one Winklevoss twin this year. There will also be a legion of new millionaires, most of them probably Burning Man virgins, who…

View original 393 more words

A Line Is Drawn in the Desert At Burning Man, the Tech Elite One-Up One Another

I went once, in 1996...they said it was too big that year..10,000 people! But...you could still drive on the playa...the main camp was still a circle....we ravers were 2 miles out with our "noise"...it was magical...I understand the draw, I heard about it for years before I went....but like anything, it morphs and reflects the subcultures it draws...I like Elon Musk, but for someone ahead of his time, he sure is a latecomer!  ;-) ~PB

 “If you haven’t been, you just don’t get it,” said the entrepreneur Elon Musk of Burning Man.

[photo: A wooden yacht art car rolled through in 2012.
Credit Andy Barron/Reno Gazette-Journal, via Associated Press]

A Line Is Drawn in the Desert
At Burning Man, the Tech Elite One-Up One Another
By NICK BILTON ~ AUG. 20, 2014
http://www.nytimes.com/2014/08/21/fashion/at-burning-man-the-tech-elite-one-up-one-another.html?partner=rssnyt&emc=rss&_r=1

There are two disciplines in which Silicon Valley entrepreneurs excel above almost everyone else. The first is making exorbitant amounts of money. The second is pretending they don’t care about that money.

To understand this, let’s enter into evidence Exhibit A: the annual Burning Man festival in Black Rock City, Nev.

If you have never been to Burning Man, your perception is likely this: a white-hot desert filled with 50,000 stoned, half-naked hippies doing sun salutations while techno music thumps through the air.

A few years ago, this assumption would have been mostly correct. But now things are a little different. Over the last two years, Burning Man, which this year runs from Aug. 25 to Sept. 1, has been the annual getaway for a new crop of millionaire and billionaire technology moguls, many of whom are one-upping one another in a secret game of I-can-spend-more-money-than-you-can and, some say, ruining it for everyone else.

[photos: Some of the biggest names in technology have been making the pilgrimage to the desert for years, happily blending in unnoticed. These include Larry Page and Sergey Brin, the Google founders, and Jeff Bezos, chief executive of Amazon. But now a new set of younger rich techies are heading east, including Mark Zuckerberg of Facebook, employees from Twitter, Zynga and Uber, and a slew of khaki-wearing venture capitalists.]

Burning Man in 2013. Credit Jim Urquhart/Reuters

Before I explain just how ridiculous the spending habits of these baby billionaires have become, let’s go over the rules of Burning Man: You bring your own place to sleep (often a tent), food to eat (often ramen noodles) and the strangest clothing possible for the week (often not much). There is no Internet or cell reception. While drugs are technically illegal, they are easier to find than candy on Halloween. And as for money, with the exception of coffee and ice, you cannot buy anything at the festival. Selling things to people is also a strict no-no. Instead, Burners (as they are called) simply give things away. What’s yours is mine. And that often means everything from a meal to saliva.

In recent years, the competition for who in the tech world could outdo who evolved from a need for more luxurious sleeping quarters. People went from spending the night in tents, to renting R.V.s, to building actual structures.

“We used to have R.V.s and precooked meals,” said a man who attends Burning Man with a group of Silicon Valley entrepreneurs. (He asked not to be named so as not to jeopardize those relationships.) “Now, we have the craziest chefs in the world and people who build yurts for us that have beds and air-conditioning.” He added with a sense of amazement, “Yes, air-conditioning in the middle of the desert!”

His camp includes about 100 people from the Valley and Hollywood start-ups, as well as several venture capital firms. And while dues for most non-tech camps run about $300 a person, he said his camp’s fees this year were $25,000 a person. A few people, mostly female models flown in from New York, get to go free, but when all is told, the weekend accommodations will collectively cost the partygoers over $2 million.


This is drastically different from the way most people experience the event. When I attended Burning Man a few years ago, we slept in tents and a U-Haul moving van. We lived on cereal and beef jerky for a week. And while Burning Man was one of the best experiences of my life, using the public Porta-Potty toilets was certainly one of the most revolting experiences thus far. But that’s what makes Burning Man so great: at least you’re all experiencing those gross toilets together.

That is, until recently. Now the rich are spending thousands of dollars to get their own luxury restroom trailers, just like those used on movie sets.

“Anyone who has been going to Burning Man for the last five years is now seeing things on a level of expense or flash that didn’t exist before,” said Brian Doherty, author of the book “This Is Burning Man.” “It does have this feeling that, ‘Oh, look, the rich people have moved into my neighborhood.’ It’s gentrifying.”

For those with even more money to squander, there are camps that come with “Sherpas,” who are essentially paid help.

[Photo:  Some of the technology elite who have attended Burning Man, include from left, Larry Page, Elon Musk, Jeff Bezos, Mark Zuckerberg and Sergey Brin.  Credit Jeff Chiu/Associated Press, Robyn Beck/Agence France-Presse — Getty Images, Rick Wilking/Reuters, David Ramos/Getty Images, Robert Galbraith/Reuters]

Tyler Hanson, who started going to Burning Man in 1995, decided a couple of years ago to try working as a paid Sherpa at one of these luxury camps. He described the experience this way: Lavish R.V.s are driven in and connected together to create a private forted area, ensuring that no outsiders can get in. The rich are flown in on private planes, then picked up at the Burning Man airport, driven to their camp and served like kings and queens for a week. (Their meals are prepared by teams of chefs, which can include sushi, lobster boils and steak tartare — yes, in the middle of 110-degree heat.)

“Your food, your drugs, your costumes are all handled for you, so all you have to do is show up,” Mr. Hanson said. “In the camp where I was working, there were about 30 Sherpas for 12 attendees.”

Mr. Hanson said he won’t be going back to Burning Man anytime soon. The Sherpas, the money, the blockaded camps and the tech elite were too much for him. “The tech start-ups now go to Burning Man and eat drugs in search of the next greatest app,” he said. “Burning Man is no longer a counterculture revolution. It’s now become a mirror of society.”

Strangely, the tech elite won’t disagree with Mr. Hanson about it being a reflection of society. This year at the premiere of the HBO show “Silicon Valley,” Elon Musk, an entrepreneur who was a founder of PayPal, complained that Mike Judge, the show’s creator, didn’t get the tech world because — wait for it — he had not attended the annual party in the desert.

“I really feel like Mike Judge has never been to Burning Man, which is Silicon Valley,” Mr. Musk said to a Re/Code reporter, while using a number of expletives to describe the festival. “If you haven’t been, you just don’t get it.”

Non-tech Burners who have been may “get it” but don’t like all this excess, and are starting to push back. This month, the Key Group, a Swiss luxury concierge service, announced that it would be offering a Burning Man Concierge Service that seemed more like a cruise liner vacation than a week in the dusty desert. (The company did not respond to a request for comment.)

Among the dozens of options offered by the Key, there is the “establishment of a camp with electricity, water and satellite Internet Wi-Fi connection,” “cooks and fresh buffets for every meal” and — not a small task by any means given the distance from the real world — the “possibility of ordering goods and products from outside Black Rock City every day.”

When the website Burners.me, which blogs about the festival, posted a link to the Key’s site, the Burning Man community seemed generally confused as to whether such extravagance was actually real or if someone was playing a joke. When it turned out to be quite real, people railed against the service, and the Key removed the Burning Man concierge option from its site.

Of course, you won’t likely see pictures on Instagram or Facebook of the $2 million camps, chef-cooked meals, the Sherpa helpers and concierge services, or private and pristine toilets. That would mean that the tech elite actually cared about money — which would just go against the entire Burning Man spirit.

~~~

Red Ice Radio - Karen Hudes - Former World Bank Insider on the Corruption of the Global Elite + RT: World Bank: Money Laundering Criminals | Interview with Whistleblower Karen Hudes + Collective Evolution article

Red Ice Radio - Karen Hudes -
Former World Bank Insider on the Corruption of the Global Elite
http://youtu.be/3cIDKZkLY7c

 "I modeled Rule of Law inside the World Bank, and I didn't realize the corruption inside the World Bank was caused by corruption outside the World Bank,and that's a no-brainer, but at the time I just didn't know that we had a secret group of corrupt companies that thought they owned the world. And that's what we're up against. But I'm happy to tell that all of the countries of the world have banded together, formed a coalition and we are now taking back the world form that corrupt bunch...and who is that corrupt bunch?... " ~Karen Hudes (video 7:38)

~~~
The RT video in the article cuts to the chase:

World Bank: Money Laundering Criminals | Interview with Whistleblower Karen Hudes
https://www.youtube.com/watch?v=c7E9SUwlooE


~~~
Former World Bank Senior Council Says A “Second Species” On Earth Controls Money & Religion
http://www.collective-evolution.com/2014/03/28/former-world-bank-senior-council-says-a-second-species-on-earth-controls-money-religion/

Former World Bank Senior Council, Karen Hudes has been making a lot of noise lately, and she recently said something she’s never said before. She said that a second species on Earth controls money and religion. Many people who have held positions to know things that the rest of us might not know have made some very shocking statements lately. For example, Paul Hellyer, former Canadian Minister of National Defence recently said that there are at least “4 known alien species that have been visiting Earth for thousands of years.” You can read more about that here.

I am aware that just because somebody says something does not mean that it’s true, no matter what their background. At the same time, what she says corroborates with a lot of ancient historical facts, and modern day disclosures of other strange phenomenon, like UFOs, secret societies and more. For someone like this to gain credibility as a World Bank whistle-blower and then all of a sudden make a comment like this is quite shocking. Although, in her interview she did discredit the idea of extraterrestrials on the planet, which I definitely disagree with. There is an enormous amount of evidence out there to suggest we are not alone, and we have indeed been visited. For more information on that click here.

“These countries are not monolithic, there are forces fighting the corruption and there are forces that have totally been co-opted, and the way they act is treasonous to the people in those countries. The group that’s behind the network of control are the Jesuits, and there are also some groups behind them. One of these groups are hominids, they’re not human beings. They are very smart, they are not creative, they are mathematical. They had a much stronger force in the earlier ice-age. They have elongated skulls, they may produce offspring in mating with female humans, but that offspring is not fertile. We live in a world of secret societies, and secrets, and the information that ought to be public is not public.”

The quote above if from the show below. She starts speaking about it approximately 21 minutes into the program.

Red Ice Radio - Karen Hudes - Former World Bank Insider on the Corruption of the Global Elite
https://www.youtube.com/watch?v=3cIDKZkLY7c#t=79

Karen held her senior position at the World Bank for twelve years before deciding to blow the whistle on the World Bank and corruption within it. She studies law at Yale Law School and economics at the University of Amsterdam. She worked in the US Export Import Bank of the US from 1980-1985 and in the Legal Department of the World Bank from 1986-2007. She established the Non-Governmental Organization Committee of the International Law Section of the American Bar Association and the Committee on Multilateralism and the Accountability of International Organizations of the American Branch of the International Law Association.

These are shocking statements that come shortly after gaining attention for being a credible world bank whistleblower, stating that the world is in a “currency war,” that the Federal Reserve continues to print money like crazy, and if they keep going at the pace they are on, other countries will no longer accept this currency. She has been exposing criminal corruption that takes place at the highest levels of financial institutions. In 1999, she reported the corrupt take-over of the second largest bank in the Philippines. She’s exposed the collusion that takes place between financial institutions and various governments, and much much more.

This is a great clip of her telling us some important stuff. Before you brush off what she has to say, keep in mind that the reality of many strange phenomenon has a large amount of proof to back it up, or at least be open to the possibility.


World Bank: Money Laundering Criminals | Interview with Whistleblower Karen Hudes
https://www.youtube.com/watch?v=c7E9SUwlooE

Is the U.S. stock market rigged? - CBS News (YES!)

 Is the U.S. stock market rigged? - CBS News

Steve Kroft reports on a new book from Michael Lewis that reveals how some high-speed traders work the stock market to their advantage.

The following script is from "Rigged" which aired on March  30, 2014. Steve Kroft is the correspondent. Draggan Mihailovich, producer.


This month marks the fifth anniversary of the current bull market on Wall Street, making it one of the longest andstrongest in history. Yet U.S. stock ownership is at a record low and less than half of Americans trust banks and financial services. And in the last two weeks, the New York attorney general and the Commodities Futures Trading Commission in Washington have both launched
investigations into high-frequency computerized stock trading that now controls more than half the market.

The probes were announced just ahead of a much anticipated book on the subject by best-selling
author Michael Lewis called "Flash Boys." In it, Lewis argues that the stock market is now rigged to benefit a group of insiders that have made tens of billions of dollars exploiting computerized trading. The story is told through an unlikely cast of characters who figured out what was going on and have devised a plan to correct it. It could have a huge impact on Wall Street. Tonight, Michael Lewis talks about it for the first time.

Steve Kroft: What's the headline here

Michael Lewis: Stock market's rigged. The United States stock market, the most iconic market in global capitalism is rigged.

60 Minutes Overtime

Lewis explains how the stock market is rigged

Steve Kroft: By whom?

Michael Lewis: By a combination of these stock exchanges, the big Wall Street banks and high-frequency traders.

Steve Kroft: Who are the victims?

Michael Lewis: Everybody who has an investment in the stock market.

"Stock market's rigged. The United States stock market, the most iconic market in global capitalism is rigged." 

Michael Lewis is not talking about the stock market that you see on television every day. That ceased to be the center of U.S. financial activity years ago, and exists today mostly as a photo op. This is the stock marketthat Lewis is talking about; the one where most of the trades take place now, inside hundreds of thousands of these black boxes located at morethan 60 public and private exchanges, where billions of dollars in stock change hands every day with little or no public documentation. The
trades are being made by thousands of robot computers, programmed to buy and sell every stock on the market at speeds 100 times faster than youcan blink an eye. A system so complex, it's all but invisible.

Michael Lewis: If it wasn't complicated, it wouldn't be allowed to happen. Thecomplexity disguises what is happening. If it's so complicated you can't understand it, then you can't question it.

Steve Kroft: And this is all being done by computers?

Michael Lewis: All being done by computers. It's too fast to be done by humans. Humans have been completely removed from the marketplace.

"Fast" is the operative word. Machines with secret programs are now trading stocks in tiny fractions of a second, way too fast to be seen or recorded on a stock ticker or computer screen. Faster than the market itself. High-frequency traders, big Wall Street firms and stock exchanges have spent billions to gain an advantage of a millisecond for themselves and their customers, just to get a peek at stock market prices and orders a flash before everyone else, along with the opportunity to act on it.

Michael Lewis: The insiders are able to move faster than you. They're able to see your order and play itagainst other orders in ways that you don't understand. They're able to front run your order.

Steve Kroft: What do you mean front run?

60 Minutes Overtime

Lewis: Rigged stock market is "bigger than a scam"

Michael Lewis: Means they're able to identify your desire to, to buy shares in Microsoft and buy 'em in front of you and sell 'em back to you at a higher price. It all happens in infinitesimally small periods of time. There's speed advantage that the faster traders have is milliseconds, some of it is fractions of milliseconds. But it''s enough for them to identify what you're gonna do and do it before you do it at your expense.

 Steve Kroft: So it drives the price up.

Michael Lewis: So it drives the price up, and in turn you pay a higher price.

"If it wasn't complicated, it wouldn't be allowed to happen. The  complexity disguises what is happening. If it's so complicated you can't understand it, then you can't question it." 

Michael Lewis is not the first person to allege the stock market is rigged or that high-frequency traders are front running the market but he was the first to find Brad Katsuyama, who is the first to figure out how it was being done.

Michael Lewis: A very unlikely character, a trader at the Royal Bank of Canada, a young Canadian man named Brad Katsuyama realized that the market that he thought he knew had changed. The market seemed to be willing to sell a stock. But the minute he went to buy it, someone else bought it, the stock went up. It was as if someone knew what he was doing before he did it.

RBC trading floor in New York City

WallStreetandTech.com

Back in 2008, Katsuyama was 30 years old and running the Royal Bank of Canada's stock desk in New York with 25 traders working for him. Every time one of them tried to buy a large block of stock for a client their order would only be partially filled and the price of the stock would go up. It kept happening over and over again.           

Brad Katsuyama: The best analogy I think is that your family wants to go to a concert. You go onto StubHub, there's four tickets all next to each other for 20 bucks each. You put in an order to buy four tickets, 20 bucks each and it says, "You've bought two tickets at 20 bucks each." And you go back
and those same two seats that are sitting there have now gone up to $25.

Steve Kroft: What'd you think the problem was?

Brad Katsuyama: I had no idea. I couldn't get answers.

At first, Katsuyama thought the technology at RBC was slow, until he went to Stamford, Conn., and paid a visit to one of the largest hedge funds in the world.

Brad Katsuyama: The same thing that I was experiencing as a trader, one of the most sophisticated hedge funds in the world was also having the same problem. Then the light bulb goes off. You say, "Holy cow, this is, this is a huge problem."

Steve Kroft: You were determined to get to the bottom of it?

Brad Katsuyama: Yeah.

Steve Kroft: Why?

Brad  Katsuyama: 'Cause it just didn't feel right. It didn't feel right that people who are investing on behalf of pension funds and retirement funds  are getting bait and switched every single day in the market.

Katsuyama suspected that the problem had something to do with plumbing, the way the trades were routed through fiber optic cables from his trading desk in lower Manhattan to the 13 public exchanges in northern New Jersey. But no one would tell him exactly what happened to his orders once he hit the buy or sell button. So he put together a team of technical experts, traders and most importantly, an Irish telecom guy named Ronan Ryan, who was an expert on high-speed fiber optic networks.

Ronan Ryan: I knew nothing about trading until my first day at RBC when I satin that three hour meeting on algorithms. I called my wife afterwards. And I'm like, "Holy crap, I have no idea what they just said."

Ryan had done work for the high-frequency traders. He knew what they were building and he knew about the colossal amounts of money they were prepared to spend. He told Brad about a company called Spread Networks that had laid a high-speed fiber optic cable from the futures market in Chicago to the exchanges in New Jersey. They spent $300 million just to shave three milliseconds off the fastest route and were leasing access to high-frequency traders at $10 million a pop.

Michael Lewis: From Brad Katsuyama's point of view, when he heard they were willing to spend that kind of money for milliseconds it told him the sums involved were vast. That was one of the first questions he said he had. He says, "All right, I'm getting ripped off. Everybody's getting ripped off. But what does it add up to?" And I think when he heard the story of Spread Networks, he realized this is tens of billions of dollars we're talking about.

Ronan Ryan also knew where all the cable was buried and had detailed maps of the fastest routes from the financial district in lower Manhattan to the various stock exchanges in New Jersey, all calculated down to the millisecond.

Ronan Ryan: So I would sit there, roll out maps, and roll out this data center as a box and a line going through it. And they had no idea what I was on about. And then I'd  be like, "Hey are you guys aware of where these data centers are located? Of course you're arriving there at different time intervals."

For Brad, the maps turned what had been an abstract idea into something he could actually see. The first place his orders were landing was the BATS Exchange across the river in Weehawken, N.J., and high-frequency traders were lying there in wait.

Michael Lewis: Brad realizes,"Oh my God, that's how I'm being front-runned. I'm being front-runned
because my signal gets to the BATS Exchange first and they can beat meto all the, all the other exchanges."

It only took a tiny fraction of a second for Brad's trade to reach the next exchanges on the network, but the high-speed traders were able to jump in front of him, buy the same stock and drive the price up before his order arrived, producing a small profit of just one or two pennies. But it was happening to everyone's trades millions of times a day.

60 Minutes Overtime

How ordinary investors are getting "screwed"

Ronan Ryan: That adds up.

Steve Kroft: You make it sound like a skim.

Ronan Ryan: What else would you call it?

Michael Lewis: One hedge fund manager said, "I was running a hedge fund that was $9 billion and that we figured that the, just our inability to, to make the trades the market said we should be able to make was costing us  $300 million a year." That was $300 million a year in someone else's pocket.

Steve Kroft: Is this illegal?

Michael Lewis: No. That's the thing that's so shocking about all this. It should...

Steve Kroft: Well you used the word front running. Front running's illegal.

Michael Lewis: This form of front running is legal. It's legalized frontrunning. It's crazy that it's legal for some people to get advance news on prices and what investors are doing. It's just nuts. Shouldn't
happen.

Ronan knew the only way to beat the high-frequency traders was to take away their milliseconds advantage that allowed them to sniff out slower trades and beat them to the exchange. He had an idea
how to do it.

Brad Katsuyama: And he said, "You're probably better off trying to go slower," which means send the order to the exchange located the farthest away first and send the order to the one that's located to you last. So stagger when you send them out with the goal of arriving at all places, as close to the same time as possible.

Katsuyama and his team developed software that did just that, allowing the orders of Royal Bank of Canada's customers to reach all of the exchanges at the same time, cutting the high-frequency traders out of the equation.

Brad Katsuyama: And essentially our fill rates went to 100 percent. We couldn't believe it when, when we actually figured it out.

Steve Kroft: So you beat speed by slowing it down.

Brad Katsuyama: Yeah, as crazy as that sounds. 

Katsuyama and his team went out and began selling and explaining what they had discovered to the big mutual funds, pension funds and institutional investors, people who had suspicions that they were being front-run but didn't know how.

Steve Kroft: And nobody had really bothered or tried to figure this out until Brad Katsuyama came along...

Michael Lewis: It was in nobody's interest to, correct. I spoke to dozens of investors, big investors, famous investors who, who said that, "When Brad Katsuyama came into my office and laid out to me how the market was rigged, my jaw hit the floor. I mean, I knew something was wrong. I just didn't know what it was and no one had told us."

Brad Katsuyama: Part of those meetings led us to believe, "Holy cow, this is, this is really something." 'Cause some of the most sophisticated, largest asset managers in the world, this is the first time they were hearing this story.

And some of the most famous names in the American stock market heard the pitch...

60 Minutes Overtime

Lewis: Investors, big and small, are "prey"

Michael Lewis: The Capital Group, T. Rowe Price, Fidelity, Vanguard, I mean, it, one after another. He was in their offices. They said, "This man walked in. Why is he gonna know how the stock market operates?" And, and at the end of the hour they said, "Oh, my God, he understands."   Hedge fund titan David Einhorn of Greenlight Capital is one of the believers.

Steve Kroft: Was he able to show you how your orders were being front run? 

David Einhorn: Oh yeah. They had, they, they got the marker and the white board and started drawing maps and boxes, and wires and locations. And yeah, we went through it in some detail.

Steve Kroft: Did you find it interesting?

David Einhorn: It was. It was.

Clients like Einhorn encouraged Brad and his team to do something bigger. That's when Katsuyama, a conformist even by Canadian standards, decided to do something radical. In 2012, he quit his high-paying job as head trader at RBC and went off with some of his team to start their own
exchange. 

Steve Kroft: You were making good money at Royal Bank of Canada? 

Brad Katsuyama: Yeah, right. 

Steve Kroft: Millions of dollars? 

Brad Katsuyama:: Right. I guess, I guess everybody know that now? Right, yeah. 

Steve Kroft: Why did you wanna go off and walk away from that job and start a stock exchange? 

Brad  Katsuyama: Yeah, wasn't an easy conversation to have with my wife, that's for sure. It almost felt like a sense of obligation to say, "We found a problem. It's, it's affecting millions and millions of people.

People are blindly losing money they didn't even know they're entitled to. It's a hole in the bottom of the bucket.

They set out to build an exchange funded exclusively by large traditional investors. They called it IEX, the investor's exchange, and  quietly launched it in October with the support of some of the biggest layers on Wall Street. And it comes with built in speed bumps to eliminate the advantage of high-speed predators.

Michael Lewis: And the way they did it was they coiled 60 kilometers of fiber optic cable between themselves and the high-frequency traders computers. They call it the magic shoe box and it looks like it's got fishing line init. But essentially, a high-frequency trader, if he tries to react on the IEX exchange, his trade goes (makes noise) for 60 kilometers until, so he's, he's in east Jesus.

Steve Kroft: So it gets there the same time as everybody else.

Michael Lewis: It gets there same time as everybody else's.

Steve Kroft: Do you think they can game you?

Ronan Ryan: I think that they'll try to game us. I think the fact, though, that we've gone and met with the majority of the biggest high-frequency firms to explain what the magic shoebox is doing and that people haven'tsaid, "Oh that's rubbish. That won't work." We've had many ask us for a backdoor, to be honest. So that says something that it'll work.  The exchange is off to a strong start, although it is still very small with  lots of powerful enemies that like the status quo and are trying to starve IEX by discouraging customers from using them.  Greenlight Capital's David Einhorn is one of the investors.

Steve Kroft: Do you think IEX will survive?

David Einhorn: I think it's gonna succeed. I think it's gonna succeed in a very big way.

Just last week, IEX received a strong endorsement from Goldman Sachs, whose
top executives cited it as a model for a more stable and less
complicated stock market.

Brad Katsuyama: We're selling trust. We're selling transparency. And, and, and to think that trust is
actually a differentiator in a service business, it's kind of a crazy thought, right?

Michael Lewis: Why is this kid, why is he able to all of a sudden sit at the center of the American stock market? And the answer is, when someone walks in the door who is actually trustworthy,
he has enormous power. And this is the story, story of trying to restore trust to the financial markets.               

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  Steve Kroft
  
  

  Few journalists have achieved the impact and recognition that Steve Kroft's
  60 Minutes work has generated for over two decades. Kroft delivered his
  first report for 60 Minutes in 1989.