http://finance.yahoo.com/news/Fed-adopts-plan-to-let-banks-apf-590676590.html?x=0&sec=topStories&pos=6&asset=&ccode=
What does this do to this?
http://market-ticker.denninger.net/
Notice the weasel in here. One part (trading complex financial instruments) should be diverted to hedge funds and other unregulated - and free-to-fail, no-backstopped firms.
The other part (lending) will always be done by banks - you have one on the corner, or a credit union, that will write you a loan, yes?
Sens. Ted Kaufman (D., Del.) and Sherrod Brown (D., Ohio) plan an amendment that would prohibit any bank from ever holding more than 10% of the country's deposits and put strict caps on the debt banks issue.
This is the amendment that I highlighted with two Tickers, one text and one, for the "visually inclined", in video. This amendment deserves to be law right now - one way or another.
Sens. Maria Cantwell (D., Wash.) and John McCain (R., Ariz.) have worked on an amendment that would force commercial banks to separate from investment banks—revisiting the Glass-Steagall Act of the 1930s.
That plus the above would effectively BE Glass-Steagall.
I like that a lot.
The Federal Reserve has adopted a plan allowing banks to set up the equivalent of certificates of deposit at the central bank. The move would help the Fed mop up money pumped out during the financial crisis and prevent inflation from taking off later.
Under the plan, the Fed would offer so-called "term deposits" that would pay interest. Doing so would provide banks with another incentive to park their money at the Fed, rather than having it flow back into the economy.
Once the economy is on firm footing, this would be one of the tools the Fed could use to tighten credit.
The Fed says Friday's action has "no implication for the near term conduct of monetary policy."
Friday, April 30, 2010
Thursday, April 29, 2010
Morgan Stanley settles oil-trading flap
http://www.mcclatchydc.com/2010/04/29/93170/in-another-wall-street-misdeed.html
Does Wall Street do anything honestly?
But then again....To big to fail doesn't have to does it.
They just pay the offence away. It's a standard practice.
In another black eye for Wall Street, the Commodity Futures Trading Commission late Thursday announced a $14 million fine against Morgan Stanley Capital Group Inc. for allegedly hiding its complex oil trades.
The settlement, in which Morgan Stanley did not admit or deny the accusations, comes as oil prices have continued their steady upwards march and have some oil analysts again saying that excessive speculation is again pushing up energy prices. One recent estimate put the cost of that to consumers and businesses at $300 billion annually.
In an announcement after U.S. markets had closed, the CFTC said that a trader from Morgan Stanley conspired on Feb. 6, 2009, with a counterpart from Swiss financial firm UBS Securities to hide from authorities a prohibited trading activity.
The CFTC said Morgan Stanley was on the other end of a deal with a client of UBS. Morgan Stanley was looking to buy more than 33,000 March-dated contracts for future delivery of oil and sell the same quantities of April contracts for oil. The two parties agreed to a deal in which they’d settle on a price after trading had finished for the day_ something called a Trade at Settlement agreement.
The problem, said regulators, is that Morgan Stanley asked its unidentified business partner, the UBS client, to not disclose the special trade until after oil trading had settled that day. The law requires immediate notification to the New York Mercantile Exchange, where oil is traded
Read more: http://www.mcclatchydc.com/2010/04/29/93170/in-another-wall-street-misdeed.html#ixzz0mYeiV3n6
Does Wall Street do anything honestly?
But then again....To big to fail doesn't have to does it.
They just pay the offence away. It's a standard practice.
In another black eye for Wall Street, the Commodity Futures Trading Commission late Thursday announced a $14 million fine against Morgan Stanley Capital Group Inc. for allegedly hiding its complex oil trades.
The settlement, in which Morgan Stanley did not admit or deny the accusations, comes as oil prices have continued their steady upwards march and have some oil analysts again saying that excessive speculation is again pushing up energy prices. One recent estimate put the cost of that to consumers and businesses at $300 billion annually.
In an announcement after U.S. markets had closed, the CFTC said that a trader from Morgan Stanley conspired on Feb. 6, 2009, with a counterpart from Swiss financial firm UBS Securities to hide from authorities a prohibited trading activity.
The CFTC said Morgan Stanley was on the other end of a deal with a client of UBS. Morgan Stanley was looking to buy more than 33,000 March-dated contracts for future delivery of oil and sell the same quantities of April contracts for oil. The two parties agreed to a deal in which they’d settle on a price after trading had finished for the day_ something called a Trade at Settlement agreement.
The problem, said regulators, is that Morgan Stanley asked its unidentified business partner, the UBS client, to not disclose the special trade until after oil trading had settled that day. The law requires immediate notification to the New York Mercantile Exchange, where oil is traded
Read more: http://www.mcclatchydc.com/2010/04/29/93170/in-another-wall-street-misdeed.html#ixzz0mYeiV3n6
Cop in famed cyclist-shoving incident acquitted of assault
http://rawstory.com/rs/2010/0429/cop-cyclist-shoving-incident-acquitted-assault/
All I can say is watch the video and judge for yourself.
This the judicial system that we are dealing with.
It makes no sense to me at all.
A police officer who became famous worldwide after a YouTube video showed him shoving a cyclist off his bike seemingly without provocation has been acquitted of assault.
But Patrick Pogan, formerly of the New York Police Department, was found guilty of making a false filing in the case, and now faces up to four years in prison, the New York Times reported Thursday.
In amateur footage of a Critical Mass cycling event in New York City in July of 2008, Pogan can be seen crossing a street and walking into the path of 29-year-old cyclist Christopher Long. Long can be seen swerving to avoid Pogan before Pogan shoves him, causing Long to fall off his bicycle and into a nearby crowd.
Long "was initially charged with attempted assault, disorderly conduct and resisting arrest, but the charges were all dropped," the Times reports.
All I can say is watch the video and judge for yourself.
This the judicial system that we are dealing with.
It makes no sense to me at all.
A police officer who became famous worldwide after a YouTube video showed him shoving a cyclist off his bike seemingly without provocation has been acquitted of assault.
But Patrick Pogan, formerly of the New York Police Department, was found guilty of making a false filing in the case, and now faces up to four years in prison, the New York Times reported Thursday.
In amateur footage of a Critical Mass cycling event in New York City in July of 2008, Pogan can be seen crossing a street and walking into the path of 29-year-old cyclist Christopher Long. Long can be seen swerving to avoid Pogan before Pogan shoves him, causing Long to fall off his bicycle and into a nearby crowd.
Long "was initially charged with attempted assault, disorderly conduct and resisting arrest, but the charges were all dropped," the Times reports.
Oil spill off U.S. coast set to become worst in history as 210,000 gallons gush out a day
http://www.dailymail.co.uk/news/worldnews/article-1269675/Gulf-Mexico-oil-spill-FIVE-times-worse-new-leak-wrecked-rig.html
Five times more oil than BP estimated is gushing into the ocean each day – about 5,000 barrels, or 210,000 gallons.
And the cost of cleaning it up will fall on London-based firm BP, the White House said today.
The decision to burn some of the oil came after crews operating submersible robots failed to activate a shut-off device that would halt the flow of oil on the sea bottom 5,000 feet below.
BP says work will begin as early as today to drill a relief well to relieve pressure at the blowout site, but that could take months
Five times more oil than BP estimated is gushing into the ocean each day – about 5,000 barrels, or 210,000 gallons.
And the cost of cleaning it up will fall on London-based firm BP, the White House said today.
The decision to burn some of the oil came after crews operating submersible robots failed to activate a shut-off device that would halt the flow of oil on the sea bottom 5,000 feet below.
BP says work will begin as early as today to drill a relief well to relieve pressure at the blowout site, but that could take months
More Than a Million in U.S. May Lose Jobless Benefits
http://www.bloomberg.com/apps/news?pid=20601087&sid=a8qJXfNS3RaQ&pos=7
What are people going to do?
Since the U.S. recession began in December 2007, Congress has extended the length of unemployment benefits for the jobless three times. Now, the lawmakers may have reached their limit.
They are quietly drawing the line at 99 weeks of aid, a mark that hundreds of thousands of Americans have already reached. In coming months, the number of those who will receive their final government check is projected to top 1 million.
It’s a deadline that has rarely been mentioned in recent debates over jobless benefits, in which Republicans have delayed aid because of cost concerns. The deadline hasn’t been lost on Teauna Stephney, a 39-year-old single mother from Bothell, Washington, who said she could become homeless once her $407 weekly checks stop in June.
What are people going to do?
Since the U.S. recession began in December 2007, Congress has extended the length of unemployment benefits for the jobless three times. Now, the lawmakers may have reached their limit.
They are quietly drawing the line at 99 weeks of aid, a mark that hundreds of thousands of Americans have already reached. In coming months, the number of those who will receive their final government check is projected to top 1 million.
It’s a deadline that has rarely been mentioned in recent debates over jobless benefits, in which Republicans have delayed aid because of cost concerns. The deadline hasn’t been lost on Teauna Stephney, a 39-year-old single mother from Bothell, Washington, who said she could become homeless once her $407 weekly checks stop in June.
Goldman Settles Subprime Inquiry
http://online.wsj.com/article/SB124205876553307267.html
Note the date!
How many times can a person be tried for reckless driving before their licence is taken away to drive for the safety of the community?
Goldman Sachs Group Inc. agreed to provide about $50 million in relief to Massachusetts subprime-mortgage holders and pay an additional $10 million to the state to end an investigation of the company.
The state attorney general's office said it appears to be the first time a subprime-mortgage securitizer such as an investment bank has settled a state investigation with a payment.
Massachusetts Attorney General Martha Coakley said at a news conference that the settlement means the office won't pursue any further claims against Goldman. But she said "there are other players whose roles are intertwined, ...
Note the date!
How many times can a person be tried for reckless driving before their licence is taken away to drive for the safety of the community?
Goldman Sachs Group Inc. agreed to provide about $50 million in relief to Massachusetts subprime-mortgage holders and pay an additional $10 million to the state to end an investigation of the company.
The state attorney general's office said it appears to be the first time a subprime-mortgage securitizer such as an investment bank has settled a state investigation with a payment.
Massachusetts Attorney General Martha Coakley said at a news conference that the settlement means the office won't pursue any further claims against Goldman. But she said "there are other players whose roles are intertwined, ...
Reform plan/Elizabeth Warren
http://www.huffingtonpost.com/2010/04/29/elizabeth-warren-gop-refo_n_556362.html
It's time for senators -- especially the Republicans -- to square their upcoming votes on financial reform with their long-professed desire to protect families, said consumer advocate and federal bailout watchdog Elizabeth Warren on Wednesday in an interview with the Huffington Post.
The Senate bill, authored by the banking committee's chairman, Christopher Dodd, a Connecticut Democrat, calls for a consumer entity to be housed inside the Federal Reserve. It largely, though, adheres to Warren's four tests: a chief appointed by the president, an independent source of funding, the authority to write consumer rules and the ability to enforce them against unscrupulous lenders. The unit, thus, focuses squarely on consumers. Ensuring banks' profitability is left to banking regulators.
The Republicans' counter-proposal, released this week, fails all four of Warren's tests.
It calls for a council led by the heads of the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve. They'd issue rules, supervise "our nation's largest financial institutions, large non-bank mortgage originators, and other financial services providers who have violated the consumer protection statutes," and enforce the rules.
Warren isn't thrilled with the idea of allowing bank regulators -- whose top priority is to ensure the profitability of the nation's banks -- to continue to oversee consumer protection, particularly when the OCC is involved.
"The problem with consumer protection is structure. Our current consumer regulatory process is designed to fail, and if we don't fix it, it will fail again," she said. "In every major dispute between customers and banks, the OCC entered the fray on the side of the banks. Clearly, banks -- not their customers -- were the OCC's primary interest. The idea that the OCC would now be in a position to veto the new consumer agency is shameful.
It's time for senators -- especially the Republicans -- to square their upcoming votes on financial reform with their long-professed desire to protect families, said consumer advocate and federal bailout watchdog Elizabeth Warren on Wednesday in an interview with the Huffington Post.
The Senate bill, authored by the banking committee's chairman, Christopher Dodd, a Connecticut Democrat, calls for a consumer entity to be housed inside the Federal Reserve. It largely, though, adheres to Warren's four tests: a chief appointed by the president, an independent source of funding, the authority to write consumer rules and the ability to enforce them against unscrupulous lenders. The unit, thus, focuses squarely on consumers. Ensuring banks' profitability is left to banking regulators.
The Republicans' counter-proposal, released this week, fails all four of Warren's tests.
It calls for a council led by the heads of the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Federal Reserve. They'd issue rules, supervise "our nation's largest financial institutions, large non-bank mortgage originators, and other financial services providers who have violated the consumer protection statutes," and enforce the rules.
Warren isn't thrilled with the idea of allowing bank regulators -- whose top priority is to ensure the profitability of the nation's banks -- to continue to oversee consumer protection, particularly when the OCC is involved.
"The problem with consumer protection is structure. Our current consumer regulatory process is designed to fail, and if we don't fix it, it will fail again," she said. "In every major dispute between customers and banks, the OCC entered the fray on the side of the banks. Clearly, banks -- not their customers -- were the OCC's primary interest. The idea that the OCC would now be in a position to veto the new consumer agency is shameful.
Judge asks feds to show militia did more than talk
http://apnews.myway.com/article/20100429/D9FCD8I00.html
A federal judge challenged prosecutors Wednesday to show that nine members of a Michigan militia accused of plotting war against the government had done more than just talk and should remain locked up.
U.S. District Judge Victoria Roberts heard nearly 10 hours of testimony and arguments over two days. She did not make a decision about whether the nine will remain in custody, saying only that a ruling would come soon.
The members of a southern Michigan group called Hutaree have been in custody for a month. An indictment accuses them of weapons violations and a rare crime: conspiring to commit sedition, or rebellion, against the government by first killing police officers.
Prosecutors say the public would be at risk if the nine are released. But defense lawyers claim the government has overreached with a criminal case based mostly on hateful speech.
An undercover agent infiltrated the group and secretly made recordings that have been played in court. While there is talk about killing police, it's not specific. In one conversation, there are many people talking over each other and laughing.
Roberts pressed that point more than once as Assistant U.S. Attorney Ronald Waterstreet argued in favor of keeping the nine in jail. The judge suggested she didn't hear or read in the transcripts any indication that violence was imminent.
A federal judge challenged prosecutors Wednesday to show that nine members of a Michigan militia accused of plotting war against the government had done more than just talk and should remain locked up.
U.S. District Judge Victoria Roberts heard nearly 10 hours of testimony and arguments over two days. She did not make a decision about whether the nine will remain in custody, saying only that a ruling would come soon.
The members of a southern Michigan group called Hutaree have been in custody for a month. An indictment accuses them of weapons violations and a rare crime: conspiring to commit sedition, or rebellion, against the government by first killing police officers.
Prosecutors say the public would be at risk if the nine are released. But defense lawyers claim the government has overreached with a criminal case based mostly on hateful speech.
An undercover agent infiltrated the group and secretly made recordings that have been played in court. While there is talk about killing police, it's not specific. In one conversation, there are many people talking over each other and laughing.
Roberts pressed that point more than once as Assistant U.S. Attorney Ronald Waterstreet argued in favor of keeping the nine in jail. The judge suggested she didn't hear or read in the transcripts any indication that violence was imminent.
Goldman set to settle SEC fraud case soon: report
http://finance.yahoo.com/news/Goldman-set-to-settle-SEC-rb-1912925648.html?x=0&sec=topStories&pos=2&asset=&ccode=
Unbelievable...As if Goldman should be allowed this option.
But it seems to be obviously there for them to contemplate.
I always forget there are separate rules for the elite that are not afforded to the average person.
The average person would be posting bail if they pulled the shenanigans that Goldman and friends have.
Goldman Sachs may soon settle its fraud case with the U.S. regulator, the New York Post reported on Thursday, opting to end a legal fight rather than endure a repeat of the public flogging it received this week.
The Post report, citing sources familiar with the matter, said Wall Street's top investment bank was mulling closing the fraud case with the U.S. Securities and Exchange Commission (SEC) to limit damage to its reputation.
Unbelievable...As if Goldman should be allowed this option.
But it seems to be obviously there for them to contemplate.
I always forget there are separate rules for the elite that are not afforded to the average person.
The average person would be posting bail if they pulled the shenanigans that Goldman and friends have.
Goldman Sachs may soon settle its fraud case with the U.S. regulator, the New York Post reported on Thursday, opting to end a legal fight rather than endure a repeat of the public flogging it received this week.
The Post report, citing sources familiar with the matter, said Wall Street's top investment bank was mulling closing the fraud case with the U.S. Securities and Exchange Commission (SEC) to limit damage to its reputation.
Wednesday, April 28, 2010
Goldman and others not to big to jail
http://www.mcclatchydc.com/2010/04/28/93066/lawmakers-to-holder-are-goldman.html
Sounds good right?....That is until you note the acception
Maintaining that no Wall Street executive is "too big for jail," 62 members of the House of Representatives asked the Justice Department Wednesday to investigate whether Goldman Sachs and other Wall Street firms committed criminal fraud in the lead-up to the subprime mortgage meltdown.
Under Senate bill, brokers don't have to put clients first
By law, financial planners and investment advisers have a fiduciary duty to their clients, the consumer. However, broker-dealers and insurance brokers who work with them have convinced the Senate Banking Committee, at least for now, that they deserve an exception from this duty to put the client first.
Under the sweeping overhaul of financial regulation passed by the House of Representatives in December, broker-dealers and insurance brokers that offer financial advice to consumers would be bound by the same duty to put client needs first as financial planners and others who give investment advice to consumers.
http://www.mcclatchydc.com/2010/04/27/92991/financial-advisers-who-dont-put.html
Sounds good right?....That is until you note the acception
Maintaining that no Wall Street executive is "too big for jail," 62 members of the House of Representatives asked the Justice Department Wednesday to investigate whether Goldman Sachs and other Wall Street firms committed criminal fraud in the lead-up to the subprime mortgage meltdown.
Under Senate bill, brokers don't have to put clients first
By law, financial planners and investment advisers have a fiduciary duty to their clients, the consumer. However, broker-dealers and insurance brokers who work with them have convinced the Senate Banking Committee, at least for now, that they deserve an exception from this duty to put the client first.
Under the sweeping overhaul of financial regulation passed by the House of Representatives in December, broker-dealers and insurance brokers that offer financial advice to consumers would be bound by the same duty to put client needs first as financial planners and others who give investment advice to consumers.
http://www.mcclatchydc.com/2010/04/27/92991/financial-advisers-who-dont-put.html
Catherine Austin Fitts/Goldman wack-a-mole
http://solari.com/blog/?p=7076
Ah the question of the day: who is Goldman’s errors & omissions (E&O) insurer.
It makes sense to pause in the outpouring of news about Goldman Sachs to ponder what has happened and the nature of the game that is afoot.
Goldman is the visible target in a game of economic warfare. Who is on the other side is not clear. For want of a better term, let’s call the other party “Mr. Global.”
Mr. Global has arranged for Goldman to be “swarmed” - attacked or threatened with attack by multiple parties, including government agencies, the media and private players, including its competitors. Presumably, Mr. Global has serious private and governmental intelligence capabilities and resources. However, Goldman Sachs does too.
Ah the question of the day: who is Goldman’s errors & omissions (E&O) insurer.
It makes sense to pause in the outpouring of news about Goldman Sachs to ponder what has happened and the nature of the game that is afoot.
Goldman is the visible target in a game of economic warfare. Who is on the other side is not clear. For want of a better term, let’s call the other party “Mr. Global.”
Mr. Global has arranged for Goldman to be “swarmed” - attacked or threatened with attack by multiple parties, including government agencies, the media and private players, including its competitors. Presumably, Mr. Global has serious private and governmental intelligence capabilities and resources. However, Goldman Sachs does too.
Hypersonic Test Vehicle Falcon goes missing on test flight, DARPA admits
http://www.news.com.au/technology/hypersonic-test-vehicle-falcon-goes-missing-on-test-flight-darpa-admits/story-e6frfro0-1225859603159
http://www.news.com.au/technology/at-mach-20-is-the-falcon-hypersonic-technology-vehicle-2-a-faster-aurora/story-e6frfro0-1225858242469
Is there even any point in asking how much this little failure cost?
THE US has admitted its top-secret military prototype "Falcon" glider went missing on its test flight last week.
US military scientists lost contact with the unmanned Falcon Hypersonic Technology Vehicle 2 (HTV-2) nine minutes into its inaugural test flight, AFP reported.
The HTV-2 was launched last week aboard a Minotaur IV rocket from Vandenberg Air Force Base in California, according to the Defense Advanced Research Projects Agency.
The HTV-2 is designed to fly through the upper reaches of Earth's atmosphere at speeds of up to Mach 20, providing the US military with a possible platform for striking targets anywhere on the planet with conventional weapons.
The test flight called for a 30-minute mission in which the vehicle would glide at high speed before splashing down in the Pacific Ocean, north of a US military test site at the Kwajalein Atoll.
The glider separated from the booster but soon after the signal vanished, a spokeswoman said.
"Preliminary review of data indicates the HTV-2 achieved controlled flight within the atmosphere at over Mach 20. Then contact with HTV-2 was lost," Johanna Spangenberg Jones, a spokeswoman for DARPA, said.
"This was our first flight (all others were done in wind tunnels and simulations) so although of course we would like to have everything go perfectly, we still gathered data and can use findings for the next flight, scheduled currently for early 2011," she said.
http://www.news.com.au/technology/at-mach-20-is-the-falcon-hypersonic-technology-vehicle-2-a-faster-aurora/story-e6frfro0-1225858242469
Is there even any point in asking how much this little failure cost?
THE US has admitted its top-secret military prototype "Falcon" glider went missing on its test flight last week.
US military scientists lost contact with the unmanned Falcon Hypersonic Technology Vehicle 2 (HTV-2) nine minutes into its inaugural test flight, AFP reported.
The HTV-2 was launched last week aboard a Minotaur IV rocket from Vandenberg Air Force Base in California, according to the Defense Advanced Research Projects Agency.
The HTV-2 is designed to fly through the upper reaches of Earth's atmosphere at speeds of up to Mach 20, providing the US military with a possible platform for striking targets anywhere on the planet with conventional weapons.
The test flight called for a 30-minute mission in which the vehicle would glide at high speed before splashing down in the Pacific Ocean, north of a US military test site at the Kwajalein Atoll.
The glider separated from the booster but soon after the signal vanished, a spokeswoman said.
"Preliminary review of data indicates the HTV-2 achieved controlled flight within the atmosphere at over Mach 20. Then contact with HTV-2 was lost," Johanna Spangenberg Jones, a spokeswoman for DARPA, said.
"This was our first flight (all others were done in wind tunnels and simulations) so although of course we would like to have everything go perfectly, we still gathered data and can use findings for the next flight, scheduled currently for early 2011," she said.
For Some on Wall St., Hearings Were Background Noise
http://finance.yahoo.com/news/For-Some-on-Wall-St-Hearings-nytimes-3134555438.html?x=0&sec=topStories&pos=4&asset=&ccode=
Wall Street might not be watching, but Main Street is, and we're questioning more and more everyday the legitimacy as well as the need for the elites financial institutions, and their presence in our government.
Maybe it was the deepening debt crisis in Europe. Maybe it was the rare treat of a Mets-Dodgers doubleheader starting just before happy hour. Or maybe it was the lack of a "Holy cow" moment.
Whatever the reason, there seemed to be plenty to divert the attention of bankers and traders from the day's scheduled distraction of the Goldman Sachs hearing in the Senate on Tuesday, The New York Times's Andrew Martin and Eric Dash report.
"I'm watching it with just with passing interest," Charles F. Gergel, a 48-year-old corporate lawyer, said during a lunchtime cigarette break near his office at 44 Wall Street. "I'm not glued to the TV."
Of course, there were plenty of exceptions. Many on Wall Street could not talk on the record because of company policy, but said they were following the developments. A few said that they were closely monitoring the proceedings either because of their relationships with Goldman or the implications for the sector.
Interest in the hearing was said to be far more intense on mortgage trading desks
Wall Street might not be watching, but Main Street is, and we're questioning more and more everyday the legitimacy as well as the need for the elites financial institutions, and their presence in our government.
Maybe it was the deepening debt crisis in Europe. Maybe it was the rare treat of a Mets-Dodgers doubleheader starting just before happy hour. Or maybe it was the lack of a "Holy cow" moment.
Whatever the reason, there seemed to be plenty to divert the attention of bankers and traders from the day's scheduled distraction of the Goldman Sachs hearing in the Senate on Tuesday, The New York Times's Andrew Martin and Eric Dash report.
"I'm watching it with just with passing interest," Charles F. Gergel, a 48-year-old corporate lawyer, said during a lunchtime cigarette break near his office at 44 Wall Street. "I'm not glued to the TV."
Of course, there were plenty of exceptions. Many on Wall Street could not talk on the record because of company policy, but said they were following the developments. A few said that they were closely monitoring the proceedings either because of their relationships with Goldman or the implications for the sector.
Interest in the hearing was said to be far more intense on mortgage trading desks
The real issue with Goldman and others
http://market-ticker.denninger.net/archives/2239-The-Real-Issue-With-Goldman-And-Others.html
17 pages kept the world safe, until it was decided that the world didn't need protection anymore......and now we're all going down together.
We don't need reform, what we need is reinstatement of what was protecting us in the first place to make sure that what is happening financially to us now, was never allowed to happen in the first place.
Tickerguy's commentary on yesterday's Senate testimony by various executives from Goldman Sachs, and why we need Glass Steagall reinstated - now.
17 pages kept the world safe, until it was decided that the world didn't need protection anymore......and now we're all going down together.
We don't need reform, what we need is reinstatement of what was protecting us in the first place to make sure that what is happening financially to us now, was never allowed to happen in the first place.
Tickerguy's commentary on yesterday's Senate testimony by various executives from Goldman Sachs, and why we need Glass Steagall reinstated - now.
Barofsky Says Criminal Charges Possible in Alleged AIG Coverup
http://www.bloomberg.com/apps/news?pid=20601109&sid=aVHMZwNcj2B0&pos=10
No lol that smell wasn't from Hank crappin in his pants back then, but there is a big possibility that it could be from Timmy crappin in his now.
Neil Barofsky was unpacking boxes in December 2008 when the stench of sewage wafted through the hallways at the 168-year-old Main Treasury Building. The space assigned to him as head of the Office of the Special Inspector General for the Troubled Asset Relief Program, or SIGTARP, was shoehorned into the basement, three floors below U.S. Treasury Secretary Henry Paulson’s offices.
No lol that smell wasn't from Hank crappin in his pants back then, but there is a big possibility that it could be from Timmy crappin in his now.
Neil Barofsky was unpacking boxes in December 2008 when the stench of sewage wafted through the hallways at the 168-year-old Main Treasury Building. The space assigned to him as head of the Office of the Special Inspector General for the Troubled Asset Relief Program, or SIGTARP, was shoehorned into the basement, three floors below U.S. Treasury Secretary Henry Paulson’s offices.
Tuesday, April 27, 2010
Number of the Week: 103 Months to Clear Housing Inventory
http://blogs.wsj.com/economics/2010/04/24/number-of-the-week-103-months-to-clear-housing-inventory/
103: The number of months it would take to sell off all the foreclosed homes in banks’ possession, plus all the homes likely to end up there over the next couple years, at the current rate of sales.
How much should we worry about a new leg down in the housing market? If the number of foreclosed homes piling up at banks is any indication, there’s ample reason for concern.
As of March, banks had an inventory of about 1.1 million foreclosed homes, up 20% from a year earlier, according to estimates from LPS Applied Analytics. Another 4.8 million mortgage holders were at least 60 days behind on their payments or in the foreclosure process, meaning their homes were well on their way to the inventory pile. That “shadow inventory” was up 30% from a year earlier.
Based on the rate at which banks have been selling those foreclosed homes over the past few months, all that inventory, real and shadow, would take 103 months to unload. That’s nearly nine years.
103: The number of months it would take to sell off all the foreclosed homes in banks’ possession, plus all the homes likely to end up there over the next couple years, at the current rate of sales.
How much should we worry about a new leg down in the housing market? If the number of foreclosed homes piling up at banks is any indication, there’s ample reason for concern.
As of March, banks had an inventory of about 1.1 million foreclosed homes, up 20% from a year earlier, according to estimates from LPS Applied Analytics. Another 4.8 million mortgage holders were at least 60 days behind on their payments or in the foreclosure process, meaning their homes were well on their way to the inventory pile. That “shadow inventory” was up 30% from a year earlier.
Based on the rate at which banks have been selling those foreclosed homes over the past few months, all that inventory, real and shadow, would take 103 months to unload. That’s nearly nine years.
Goldman Is Bruised, Defiant in Senate
http://online.wsj.com/article/SB10001424052748704471204575209822231959684.html?mod=WSJ_hpp_MIDDLETopStories
Lloyd doesn't think his clients care if they're sold crap. Damn people that's having entirely to much money, if what Lloyd believes is true.
It highlighted a mismatch in how Wall Street sees itself and how it is seen. Goldman's witnesses said a market maker—someone who matches buyers and sellers and can also hold securities and take a bet on them—has an obligation to describe accurately the product being traded, but needn't disclose its own position.
"I don't think our clients care or they should care," said Mr. Blankfein. "As far as whether something is a weak security or going bad, we are selling securities all the time that are weak or we in the market don't like."
"You are betting against the same security you're out selling," shot back the committee's chairman, Sen. Carl Levin (D., Mich.). "You've got a short bet against that security, you don't think the client would care?"
Lloyd doesn't think his clients care if they're sold crap. Damn people that's having entirely to much money, if what Lloyd believes is true.
It highlighted a mismatch in how Wall Street sees itself and how it is seen. Goldman's witnesses said a market maker—someone who matches buyers and sellers and can also hold securities and take a bet on them—has an obligation to describe accurately the product being traded, but needn't disclose its own position.
"I don't think our clients care or they should care," said Mr. Blankfein. "As far as whether something is a weak security or going bad, we are selling securities all the time that are weak or we in the market don't like."
"You are betting against the same security you're out selling," shot back the committee's chairman, Sen. Carl Levin (D., Mich.). "You've got a short bet against that security, you don't think the client would care?"
Deficit panel leader says Obama will OK findings
http://news.yahoo.com/s/ap/20100427/ap_on_bi_ge/us_deficit_commission
The co-chairman of President Barack Obama's deficit reduction commission said Tuesday that Obama would endorse its findings, including politically toxic tax increases and painful cuts to retirement benefits that the president was unwilling to propose on his own.
The deficit has turned alarmingly worse since the recession that started at the end of 2007. Many projections show its size never dipping below 4 percent of the economy over the next decade. Deficits of that magnitude are unsustainable, economists say. They would put upward pressure on interest rates, crowd out private investment and ultimately erode living standards.
The quickly growing national debt — the accumulation of years of annual budget deficits — today stands at a staggering $12.88 trillion and the Congressional Budget Office expects the nation to add another $1 trillion a year for another decade. The federal government itself holds a large portion of this debt, some $4.5 trillion, with much of it sitting in the Social Security Trust Fund.
The remaining $8.5 trillion is held by worldwide investors in the form of Treasury bills and bonds. China is the largest single holder of these securities
The co-chairman of President Barack Obama's deficit reduction commission said Tuesday that Obama would endorse its findings, including politically toxic tax increases and painful cuts to retirement benefits that the president was unwilling to propose on his own.
The deficit has turned alarmingly worse since the recession that started at the end of 2007. Many projections show its size never dipping below 4 percent of the economy over the next decade. Deficits of that magnitude are unsustainable, economists say. They would put upward pressure on interest rates, crowd out private investment and ultimately erode living standards.
The quickly growing national debt — the accumulation of years of annual budget deficits — today stands at a staggering $12.88 trillion and the Congressional Budget Office expects the nation to add another $1 trillion a year for another decade. The federal government itself holds a large portion of this debt, some $4.5 trillion, with much of it sitting in the Social Security Trust Fund.
The remaining $8.5 trillion is held by worldwide investors in the form of Treasury bills and bonds. China is the largest single holder of these securities
Goldman Sachs Senate hearing: live blog
http://www.guardian.co.uk/business/richard-adams-blog/2010/apr/27/goldman-sachs-senate-hearing-live-blog
Read from bottom to the top
Goldman Sachs chief executive Lloyd Blankfein and trader Fabrice Tourre are giving evidence to a Senate hearing on the bank's trading during the credit crisis. Follow the action live with Richard Adams
11.55am: Chairman Carl Levin rather ominously says: "We'll be here as long as it takes," in case the Goldman Sachs witnesses want to run out the clock. The Goldmans people should take that seriously, as a promise not a threat. This is the US Senate. They love talking on TV.
There is some serious A.D.D. going on here, and if you think about it, it's quite scary. Could it be the prime cause of the banking industries meltdown? Or should it be looked at as a symptom which enabled the banks to justify their disregard for a lack of ethics?
11.45am: Yikes. Susan Collins accuses the Goldmans witnesses of trying to "burn through" the committee's time, after Tourre asked her to repeat a long question
Read from bottom to the top
Goldman Sachs chief executive Lloyd Blankfein and trader Fabrice Tourre are giving evidence to a Senate hearing on the bank's trading during the credit crisis. Follow the action live with Richard Adams
11.55am: Chairman Carl Levin rather ominously says: "We'll be here as long as it takes," in case the Goldman Sachs witnesses want to run out the clock. The Goldmans people should take that seriously, as a promise not a threat. This is the US Senate. They love talking on TV.
There is some serious A.D.D. going on here, and if you think about it, it's quite scary. Could it be the prime cause of the banking industries meltdown? Or should it be looked at as a symptom which enabled the banks to justify their disregard for a lack of ethics?
11.45am: Yikes. Susan Collins accuses the Goldmans witnesses of trying to "burn through" the committee's time, after Tourre asked her to repeat a long question
Goldman Sachs: The Next American Revolution
http://www.midasletter.com/commentary/100426_James-west-goldman-sachs-and-the-next-american-revolution.php
Allegations of fraud brought last week by the Securities and Exchange Commission is a shocking departure from the culture of collusion among the U.S. government and the nation’s top banks. That despite the position of this publication and myriad others broadly categorized as “fringe” who have consistently and vociferously objected to the two or more standards applied to organizations and individuals by a corrupt legal system.
Throughout the 200 year-or-so history of linked financial markets, the name of J.P. Morgan has almost always been dominant. Goldman Sachs, though newer in terms of participatory history, has quickly risen to join J.P. Morgan at the forefront of the only industry that credibly dictates to government.
To many, the scandal surrounding Goldman Sachs apparent rigging of the craps tables in the house’s favour comes as no surprise. The Gold Antitrust Action Committee has been stridently demanding an investigation into the concentrated short positions that plague the gold and silver markets to no avail. They’ve suffered from an absence of public concern or support for their position because the relationship between gold and silver markets and personal finance is not intellectually accessible for the majority of people. So the press, absent public interest, generally passes up GATA coverage, even though the implications for the citizens of the United States and the world include constitutioality and civil rights.
Allegations of fraud brought last week by the Securities and Exchange Commission is a shocking departure from the culture of collusion among the U.S. government and the nation’s top banks. That despite the position of this publication and myriad others broadly categorized as “fringe” who have consistently and vociferously objected to the two or more standards applied to organizations and individuals by a corrupt legal system.
Throughout the 200 year-or-so history of linked financial markets, the name of J.P. Morgan has almost always been dominant. Goldman Sachs, though newer in terms of participatory history, has quickly risen to join J.P. Morgan at the forefront of the only industry that credibly dictates to government.
To many, the scandal surrounding Goldman Sachs apparent rigging of the craps tables in the house’s favour comes as no surprise. The Gold Antitrust Action Committee has been stridently demanding an investigation into the concentrated short positions that plague the gold and silver markets to no avail. They’ve suffered from an absence of public concern or support for their position because the relationship between gold and silver markets and personal finance is not intellectually accessible for the majority of people. So the press, absent public interest, generally passes up GATA coverage, even though the implications for the citizens of the United States and the world include constitutioality and civil rights.
Barack Obama loses first vote on bank bill
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7637600/Barack-Obama-loses-first-vote-on-bank-bill.html
Does anyone remember that the FED window used to be a borrowing mean of last resort?
And if you had to use it your business was scrutinized intensely for having to do so.
It seems now to be just another perk that the "big boys" have access to so that the game can never be called because of rain..
Wall Street banks were given a temporary stay of execution last night after the US Senate voted down the reading of Senator Christopher Dodd's financial reform bill which will force them to hive off swaps and derivatives desks.
Senators voted 57-41 in favour of a procedural measure designed to allow the bill to be debated on the Senate floor, just three votes shy of the 60-vote majority needed.
But the delay is expected to be short-lived, with negotiations already under way in the hope of creating some form of cross-party support for the Democrat-drafted legislation.
The bill that was voted down includes Senator Blanche Lincoln's proposals aimed at shedding light on the murky $450 trillion (£291 trillion) derivatives market.
Clauses invoked include one which would force major banks to sell off derivatives operations if they want to continue to access the Federal Reserve's discount window.
The window played a key part in combating the liquidity crisis, with US banks borrowing as much as $110.7bn at the height of the crisis in October 2008, compared with $200m previously. It is used by banks as a vital liquidity tool, and not being able to access it could cause short-term funding problems
Does anyone remember that the FED window used to be a borrowing mean of last resort?
And if you had to use it your business was scrutinized intensely for having to do so.
It seems now to be just another perk that the "big boys" have access to so that the game can never be called because of rain..
Wall Street banks were given a temporary stay of execution last night after the US Senate voted down the reading of Senator Christopher Dodd's financial reform bill which will force them to hive off swaps and derivatives desks.
Senators voted 57-41 in favour of a procedural measure designed to allow the bill to be debated on the Senate floor, just three votes shy of the 60-vote majority needed.
But the delay is expected to be short-lived, with negotiations already under way in the hope of creating some form of cross-party support for the Democrat-drafted legislation.
The bill that was voted down includes Senator Blanche Lincoln's proposals aimed at shedding light on the murky $450 trillion (£291 trillion) derivatives market.
Clauses invoked include one which would force major banks to sell off derivatives operations if they want to continue to access the Federal Reserve's discount window.
The window played a key part in combating the liquidity crisis, with US banks borrowing as much as $110.7bn at the height of the crisis in October 2008, compared with $200m previously. It is used by banks as a vital liquidity tool, and not being able to access it could cause short-term funding problems
Monday, April 26, 2010
Deal Near on Derivatives
http://online.wsj.com/article/SB10001424052748703441404575206252252365076.html?mod=WSJ_hpp_LEFTTopStories
Oh check it out, Warren knew that Derivatives were weapons of financial mass destruction, and he chose to invest in them anyway and now he wants a break cut for his own past stupidity and greed.
If he does get this break, then the American taxpayer is still on the hook for every derivative transaction made in the past that still has yet to implode, no matter who it was dealt by.
So how is there any change to be seen in that? The loaded gun still seems to be pointed right at the taxpayers head.
What it all boils down to is that "big boys" shouldn't play games they can't afford to pay for, and should be held responsible for the consequences when they do.
Berkshire Presses Lawmakers to Roll Back Proposed Curbs, Avoiding Potential Hit
The provision, sought by Berkshire and pushed by Nebraska Sen. Ben Nelson in the Senate Agriculture Committee, would largely exempt existing derivatives contracts from the proposed rules. Previously, the legislation could have allowed regulators to require that companies such as Nebraska-based Berkshire put aside large sums to cover potential losses. The change thus would aid Berkshire, which has a $63 billion derivatives portfolio, according to Barclays Capital.
Mr. Buffett's push is especially notable because he has warned of the potential dangers of derivatives, famously branding them "financial weapons of mass destruction."
Oh check it out, Warren knew that Derivatives were weapons of financial mass destruction, and he chose to invest in them anyway and now he wants a break cut for his own past stupidity and greed.
If he does get this break, then the American taxpayer is still on the hook for every derivative transaction made in the past that still has yet to implode, no matter who it was dealt by.
So how is there any change to be seen in that? The loaded gun still seems to be pointed right at the taxpayers head.
What it all boils down to is that "big boys" shouldn't play games they can't afford to pay for, and should be held responsible for the consequences when they do.
Berkshire Presses Lawmakers to Roll Back Proposed Curbs, Avoiding Potential Hit
The provision, sought by Berkshire and pushed by Nebraska Sen. Ben Nelson in the Senate Agriculture Committee, would largely exempt existing derivatives contracts from the proposed rules. Previously, the legislation could have allowed regulators to require that companies such as Nebraska-based Berkshire put aside large sums to cover potential losses. The change thus would aid Berkshire, which has a $63 billion derivatives portfolio, according to Barclays Capital.
Mr. Buffett's push is especially notable because he has warned of the potential dangers of derivatives, famously branding them "financial weapons of mass destruction."
Sunday, April 25, 2010
McCain to Obama: Send troops to border if you don't like new immigration law
http://thehill.com/homenews/senate/94111-mccain-to-obama-send-troops-to-the-border-if-you-dont-like-new-immigration-law
People this is how Nazi Germany started. This law in effect puts a target on every person of Mexican decent in the United States. And HEYYY not every person with brown skin is an illegal. This law says if you have brown skin you can be stopped and asked to see your papers, even if you did nothing wrong.
It's one thing to want to secure the borders, but it's another to persecute human beings because they fit the description of a profile.
Yo America, don't let this become a trend.
McCain, who endorsed the tough new Arizona law earlier this week, defended it as necessary because of the federal government’s inability to secure the border.
“If the president doesn’t like what the Arizona Legislature and governor may be doing, then I call on the president to immediately call for the dispatch of 3,000 National Guard troops to our border and mandate that 3,000 additional Border Patrol [officers] be sent to our border as well,” McCain said at a news conference Friday in downtown Phoenix, according to a report in the Arizona Republic.
“And that way, then the state of Arizona will not have to enact legislation which they have to do because of the federal government’s failure to carry out its responsibilities, which is to secure the borders.”
Arizona Gov. Jan Brewer signed legislation Friday that allows police to stop and question anyone they believe may be in the country illegally.
People this is how Nazi Germany started. This law in effect puts a target on every person of Mexican decent in the United States. And HEYYY not every person with brown skin is an illegal. This law says if you have brown skin you can be stopped and asked to see your papers, even if you did nothing wrong.
It's one thing to want to secure the borders, but it's another to persecute human beings because they fit the description of a profile.
Yo America, don't let this become a trend.
McCain, who endorsed the tough new Arizona law earlier this week, defended it as necessary because of the federal government’s inability to secure the border.
“If the president doesn’t like what the Arizona Legislature and governor may be doing, then I call on the president to immediately call for the dispatch of 3,000 National Guard troops to our border and mandate that 3,000 additional Border Patrol [officers] be sent to our border as well,” McCain said at a news conference Friday in downtown Phoenix, according to a report in the Arizona Republic.
“And that way, then the state of Arizona will not have to enact legislation which they have to do because of the federal government’s failure to carry out its responsibilities, which is to secure the borders.”
Arizona Gov. Jan Brewer signed legislation Friday that allows police to stop and question anyone they believe may be in the country illegally.
Derivatives To Be Spun Off?
http://market-ticker.denninger.net/archives/2232-Derivatives-To-Be-Spun-Off.html
Am I dreaming?
In an agreement struck Sunday, Banking Committee Chairman Chris Dodd agreed to replace his proposed restrictions on derivatives with those of the Senate Agriculture Committee, chaired by Arkansas Democrat Blanche Lincoln.
If you remember, I wrote about this a few days ago:
Along with forcing commercial banks to spin off their swaps dealers to a different corporate entity, Lincoln’s derivatives legislation would bar dealers, exchanges, clearinghouses and other swaps-market participants from being able to take advantage of emergency lending from the Fed, according to the aide.
Ding ding ding ding.
Give this lady a cigar!
Look folks, we can't fix what's broken if we don't do this.
Let's boil it all down to the simple when it comes to banks and their operations:
It is essentially impossible for us to have meaningful reform if institutions with access to government backstops and privileges, including but not limited to the ability to fractionally reserve, access to The Fed window and FDIC insurance, are able to trade in the derivatives business.
Am I dreaming?
In an agreement struck Sunday, Banking Committee Chairman Chris Dodd agreed to replace his proposed restrictions on derivatives with those of the Senate Agriculture Committee, chaired by Arkansas Democrat Blanche Lincoln.
If you remember, I wrote about this a few days ago:
Along with forcing commercial banks to spin off their swaps dealers to a different corporate entity, Lincoln’s derivatives legislation would bar dealers, exchanges, clearinghouses and other swaps-market participants from being able to take advantage of emergency lending from the Fed, according to the aide.
Ding ding ding ding.
Give this lady a cigar!
Look folks, we can't fix what's broken if we don't do this.
Let's boil it all down to the simple when it comes to banks and their operations:
It is essentially impossible for us to have meaningful reform if institutions with access to government backstops and privileges, including but not limited to the ability to fractionally reserve, access to The Fed window and FDIC insurance, are able to trade in the derivatives business.
Fight the Derivatives Cancer with a Wall Street Sales Tax, Plus Bans on Hedge Funds, Credit Default Swaps, and Synthetic CDOs
http://tarpley.net/2010/04/25/fight-the-derivatives-cancer-with-a-wall-street-sales-tax-plus-bans-on-hedge-funds-credit-default-swaps-and-synthetic-cdos/
As a country that wishes to maintain our sovereignty we can no longer afford to overlook our own downfall, because it's plainly staring us in the face.
The games of speculation that the rich play behind the curtain place no value on human life. It's all only about the numbers in dollar signs and they create those numbers anyway they can and use our lives to do with as well as to bail them out when they fail. They only live because "WE" let them.
It's time to end this game before it ends all of us. As "the world's people", "WE" owe it to our selves.
The urgent problem raised by all this is the $1.5 quadrillion derivatives bubble. The financial crisis which struck the United States and the world in September and October 2008 was in fact a world a derivatives panic. This panic marked the first phase of a world economic depression caused by derivatives speculation. The second phase of this depression, which is now beginning, can also be attributed in large part to derivatives, since derivatives are the main tool being used in the speculative attacks on Greece, Spain, Portugal, Italy, Ireland, and other nations, building up towards a chaotic collapse of the euro.
Derivatives are the Cause of the World Depression of Our Time
Far from being some arcane or marginal activity, financial derivatives have come to represent the principal business of the financier oligarchy in Wall Street, the City of London, Frankfurt, and other money centers. A concerted effort has been made by politicians and the news media to hide and camouflage the central role played by derivative speculation in the economic disasters of recent years. Journalists and public relations types have done everything possible to avoid even mentioning derivatives, coining phrases like “toxic assets,” “exotic instruments,” and – most notably – “troubled assets,” as in Troubled Assets Relief Program or TARP, aka the monstrous $800 billion bailout of Wall Street speculators which was enacted in October 2008 with the support of Bush, Henry Paulson, John McCain, Sarah Palin, and the Obama Democrats.
As a country that wishes to maintain our sovereignty we can no longer afford to overlook our own downfall, because it's plainly staring us in the face.
The games of speculation that the rich play behind the curtain place no value on human life. It's all only about the numbers in dollar signs and they create those numbers anyway they can and use our lives to do with as well as to bail them out when they fail. They only live because "WE" let them.
It's time to end this game before it ends all of us. As "the world's people", "WE" owe it to our selves.
The urgent problem raised by all this is the $1.5 quadrillion derivatives bubble. The financial crisis which struck the United States and the world in September and October 2008 was in fact a world a derivatives panic. This panic marked the first phase of a world economic depression caused by derivatives speculation. The second phase of this depression, which is now beginning, can also be attributed in large part to derivatives, since derivatives are the main tool being used in the speculative attacks on Greece, Spain, Portugal, Italy, Ireland, and other nations, building up towards a chaotic collapse of the euro.
Derivatives are the Cause of the World Depression of Our Time
Far from being some arcane or marginal activity, financial derivatives have come to represent the principal business of the financier oligarchy in Wall Street, the City of London, Frankfurt, and other money centers. A concerted effort has been made by politicians and the news media to hide and camouflage the central role played by derivative speculation in the economic disasters of recent years. Journalists and public relations types have done everything possible to avoid even mentioning derivatives, coining phrases like “toxic assets,” “exotic instruments,” and – most notably – “troubled assets,” as in Troubled Assets Relief Program or TARP, aka the monstrous $800 billion bailout of Wall Street speculators which was enacted in October 2008 with the support of Bush, Henry Paulson, John McCain, Sarah Palin, and the Obama Democrats.
Saturday, April 24, 2010
GM In Hot Water With FTC Over Misleading "Repaid Bailout" Ad When All Just TARP Shuffle
http://www.zerohedge.com/article/welcome-banana-republic-gm-hot-water-ftc-over-misleading-repaid-bailout-ad-when-all-just-tar
Oh wow I was wondering how that payback was possible....Now I know,...it wasn't
General Motors is running ads on all the major networks this week claiming it has repaid its bailout from the taxpayers "in full." But the claim isn't standing up to scrutiny from lawmakers and government watchdogs who have found that the automaker was able to repay the bailout money only by dipping into a separate pot of bailout funds.
The TV spot may land GM in hot water with the Federal Trade Commission over its truth-in-advertising laws, which prohibit ads that are "likely to mislead consumers."
"We have repaid our government loans in full — with interest — five years ahead of the original schedule," says Ed Whitacre, chairman and CEO of General Motors Company, asking Americans to give the bankrupt company another look.
But a top Senate Republican has accused GM of misleading taxpayers about the loan repayment, saying the struggling auto giant was able to repay a $6.7 billion bailout loan only by using other bailout funds in a special escrow account.
Iowa Sen. Chuck Grassley's charge was backed up by the inspector general for the bailout — also known as the Trouble Asset Relief Program, or TARP. Watchdog Neil Barofsky told Fox News, as well as the Senate Finance Committee, that General Motors used bailout money to pay back the federal government.
"It appears to be nothing more than an elaborate TARP money shuffle," Grassley, the ranking Republican on the Senate Finance Committee, said in a letter Thursday to Treasury Secretary Timothy Geithner.
You Decide: Did GM Try to Pull a PR Fast One?
Oh wow I was wondering how that payback was possible....Now I know,...it wasn't
General Motors is running ads on all the major networks this week claiming it has repaid its bailout from the taxpayers "in full." But the claim isn't standing up to scrutiny from lawmakers and government watchdogs who have found that the automaker was able to repay the bailout money only by dipping into a separate pot of bailout funds.
The TV spot may land GM in hot water with the Federal Trade Commission over its truth-in-advertising laws, which prohibit ads that are "likely to mislead consumers."
"We have repaid our government loans in full — with interest — five years ahead of the original schedule," says Ed Whitacre, chairman and CEO of General Motors Company, asking Americans to give the bankrupt company another look.
But a top Senate Republican has accused GM of misleading taxpayers about the loan repayment, saying the struggling auto giant was able to repay a $6.7 billion bailout loan only by using other bailout funds in a special escrow account.
Iowa Sen. Chuck Grassley's charge was backed up by the inspector general for the bailout — also known as the Trouble Asset Relief Program, or TARP. Watchdog Neil Barofsky told Fox News, as well as the Senate Finance Committee, that General Motors used bailout money to pay back the federal government.
"It appears to be nothing more than an elaborate TARP money shuffle," Grassley, the ranking Republican on the Senate Finance Committee, said in a letter Thursday to Treasury Secretary Timothy Geithner.
You Decide: Did GM Try to Pull a PR Fast One?
An American Phenomenon: The Widespread Psychiatric Drugging of Infants and Toddlers
http://www.alternet.org/drugs/146551
Less than a year old and why because private insurance will pay for it.
This is a sick problem people
The United States has become the psychiatric drugging capital of the world for kids with children being medicated at a younger and younger age. Medicaid records in some states show infants less than a year old on drugs for mental disorders.
Of antipsychotic-treated children in the 2007 study sample, the most common diagnoses were pervasive developmental disorder or mental retardation (28.2%), ADHD (23.7%), and disruptive behavior disorder (12.9%).
The study reported that fewer than half of drug treated children received a mental health assessment (40.8%), a psychotherapy visit (41.4%), or a visit with a psychiatrist (42.6%) during the year of antipsychotic use.
"Antipsychotics, which are being widely and irresponsibly prescribed for American children--mostly as chemical restraints--are shown to be causing irreparable harm," warned Vera Hassner Sharav, president of the Alliance for Human Research Protection, in a February 26, 2010 InfoMail.
"These drugs have measurable severe hazardous effects on vital biological systems, including: cardiovascular adverse effects that result in shortening lives; metabolic adverse effects that induce diabetes and the metabolic syndrome," she wrote. "Long-term use of antipsychotics has been shown to result in metabolic syndrome in 40% to 50% of patients."
Less than a year old and why because private insurance will pay for it.
This is a sick problem people
The United States has become the psychiatric drugging capital of the world for kids with children being medicated at a younger and younger age. Medicaid records in some states show infants less than a year old on drugs for mental disorders.
Of antipsychotic-treated children in the 2007 study sample, the most common diagnoses were pervasive developmental disorder or mental retardation (28.2%), ADHD (23.7%), and disruptive behavior disorder (12.9%).
The study reported that fewer than half of drug treated children received a mental health assessment (40.8%), a psychotherapy visit (41.4%), or a visit with a psychiatrist (42.6%) during the year of antipsychotic use.
"Antipsychotics, which are being widely and irresponsibly prescribed for American children--mostly as chemical restraints--are shown to be causing irreparable harm," warned Vera Hassner Sharav, president of the Alliance for Human Research Protection, in a February 26, 2010 InfoMail.
"These drugs have measurable severe hazardous effects on vital biological systems, including: cardiovascular adverse effects that result in shortening lives; metabolic adverse effects that induce diabetes and the metabolic syndrome," she wrote. "Long-term use of antipsychotics has been shown to result in metabolic syndrome in 40% to 50% of patients."
E-mails show Goldman boasting as meltdown unfolds
http://finance.yahoo.com/news/Emails-show-Goldman-boasting-apf-2180165135.html?x=0
E-mails released by a Senate committee investigating the financial crisis show top executives at Goldman Sachs Inc. boasting about money the firm was making as the housing market collapsed in 2007.
The documents suggest that Goldman benefited at least for a time from bets that subprime mortgage-backed securities would lose value. The e-mails appear to contradict previous statements by the investment bank that it lost money on such securities.
"Of course we didn't dodge the mortgage mess," CEO Lloyd Blankfein wrote in an e-mail dated Nov. 18, 2007, according to the documents released Saturday morning. "We lost money, then made more than we lost because of shorts."
E-mails released by a Senate committee investigating the financial crisis show top executives at Goldman Sachs Inc. boasting about money the firm was making as the housing market collapsed in 2007.
The documents suggest that Goldman benefited at least for a time from bets that subprime mortgage-backed securities would lose value. The e-mails appear to contradict previous statements by the investment bank that it lost money on such securities.
"Of course we didn't dodge the mortgage mess," CEO Lloyd Blankfein wrote in an e-mail dated Nov. 18, 2007, according to the documents released Saturday morning. "We lost money, then made more than we lost because of shorts."
Wholesale prices rise in March as food costs jump
http://finance.yahoo.com/news/Wholesale-prices-rise-in-apf-299827519.html?x=0&.v=4
Core inflation figures are a big fat joke. You can't see the real fact of the matter, because the most important variables that concern the average American (food and energy) are left out of the equation.
It's just another example of the smoke and mirrors designed to keep the average American in the the dark.
Wholesale prices rose more than expected last month as food prices surged by the most in 26 years. But excluding food and energy, prices were nearly flat.
The Labor Department said the Producer Price Index rose by 0.7 percent in March, compared to analysts' forecasts of a 0.4 percent rise. A rise in gas prices also helped push up the index.
Still, there was little sign of budding inflation in the report. Excluding volatile food and energy costs, wholesale prices rose by 0.1 percent, matching analysts' expectations.
Food prices jumped by 2.4 percent in March, the most since January 1984. Vegetable prices soared by more than 49 percent, the most in 15 years. A cold snap wiped out much of Florida's tomato and other vegetable crops at the beginning of this year.
Gasoline prices rose 2.1 percent, the department said, the fifth rise in six months.In the past year, wholesale prices are up 6 percent, with much of that increase driven by higher oil and other commodity prices. But the core index, which excludes food and energy, rose only 0.9 percent.
Core inflation figures are a big fat joke. You can't see the real fact of the matter, because the most important variables that concern the average American (food and energy) are left out of the equation.
It's just another example of the smoke and mirrors designed to keep the average American in the the dark.
Wholesale prices rose more than expected last month as food prices surged by the most in 26 years. But excluding food and energy, prices were nearly flat.
The Labor Department said the Producer Price Index rose by 0.7 percent in March, compared to analysts' forecasts of a 0.4 percent rise. A rise in gas prices also helped push up the index.
Still, there was little sign of budding inflation in the report. Excluding volatile food and energy costs, wholesale prices rose by 0.1 percent, matching analysts' expectations.
Food prices jumped by 2.4 percent in March, the most since January 1984. Vegetable prices soared by more than 49 percent, the most in 15 years. A cold snap wiped out much of Florida's tomato and other vegetable crops at the beginning of this year.
Gasoline prices rose 2.1 percent, the department said, the fifth rise in six months.In the past year, wholesale prices are up 6 percent, with much of that increase driven by higher oil and other commodity prices. But the core index, which excludes food and energy, rose only 0.9 percent.
Massive government corruption hidden by focus on Goldman-Sachs
http://www.examiner.com/x-37620-Conservative-Examiner~y2010m4d21-Massive-government-corruption-hidden-by-focus-on-GoldmanSachs
As the country's attention is directed to the Goldman-Sachs scandal, a much greater story lurks beneath the surface involving massive government corruption that makes Wall Street firms pale in comparison
As the country's attention is directed to the Goldman-Sachs scandal, a much greater story lurks beneath the surface involving massive government corruption that makes Wall Street firms pale in comparison
"Lehman’s failure is a story in large part of fraud"
http://www.informationclearinghouse.info/article25284.htm
A sweet read on a very sour situation. William Blacks actual grilling can be found here.
http://www.house.gov/apps/list/hearing/financialsvcs_dem/black_4.20.10.pdf
April 21, 2010 "Information Clearing House" -- On Tuesday, Former regulator William Black appeared before the House Committee on Financial Services and beat the living-tar out of Lehman CEO Dick Fuld for 8 full minutes. It was a moment of sheer, unalloyed pleasure that will be savored for a long time to come.
"Lehman’s failure is a story in large part of fraud," Black roared. "Lehman was the leading purveyor of liars’ loans in the world. For most of this decade, studies of liars’ loans show incidence of fraud of 90%. ... If you want to know why we have a global crisis, in large part it is before you."
When the camera shifted to Fuld, he looked confused. "Why is this bearded man saying these terrible things about me. I am a Wall Street banker," he mused. "Don't they know that I create jobs and allocate capital to enterprising entrepreneurs?"
Black again: "Let’s start with the repos. We have known since the Enron in 2001 that this is a common scam, in which every major bank that was approached by Enron agreed to help them deceive creditors and investors by doing these kind of transactions.....And so what happened? There was a proposal in 2004 to stop it. And the regulatory heads...killed it."
By now, Fuld was fidgeting in his chair; tugging at his collar and looking over his shoulder to see if the exits were still where he remembered them to be. "Repos, repos, repos," he thought angrily. "All these people think about is repos. We provided a service; liquidity for the markets, capital for new businesses. We make the system work. That's enough, isn't it? Who is this irritating fellow? I haven't seen him at the club, have I?" Fuld wondered if Black wore sandals and belonged to a food co-op.
Black again: "We have known for decades that these are frauds. We have known for a decade how to stop them. All of the major regulatory agencies were complicit in that statement, in destroying it. We have a self-fulfilling policy of regulatory failure because of the leadership in this era.
A sweet read on a very sour situation. William Blacks actual grilling can be found here.
http://www.house.gov/apps/list/hearing/financialsvcs_dem/black_4.20.10.pdf
April 21, 2010 "Information Clearing House" -- On Tuesday, Former regulator William Black appeared before the House Committee on Financial Services and beat the living-tar out of Lehman CEO Dick Fuld for 8 full minutes. It was a moment of sheer, unalloyed pleasure that will be savored for a long time to come.
"Lehman’s failure is a story in large part of fraud," Black roared. "Lehman was the leading purveyor of liars’ loans in the world. For most of this decade, studies of liars’ loans show incidence of fraud of 90%. ... If you want to know why we have a global crisis, in large part it is before you."
When the camera shifted to Fuld, he looked confused. "Why is this bearded man saying these terrible things about me. I am a Wall Street banker," he mused. "Don't they know that I create jobs and allocate capital to enterprising entrepreneurs?"
Black again: "Let’s start with the repos. We have known since the Enron in 2001 that this is a common scam, in which every major bank that was approached by Enron agreed to help them deceive creditors and investors by doing these kind of transactions.....And so what happened? There was a proposal in 2004 to stop it. And the regulatory heads...killed it."
By now, Fuld was fidgeting in his chair; tugging at his collar and looking over his shoulder to see if the exits were still where he remembered them to be. "Repos, repos, repos," he thought angrily. "All these people think about is repos. We provided a service; liquidity for the markets, capital for new businesses. We make the system work. That's enough, isn't it? Who is this irritating fellow? I haven't seen him at the club, have I?" Fuld wondered if Black wore sandals and belonged to a food co-op.
Black again: "We have known for decades that these are frauds. We have known for a decade how to stop them. All of the major regulatory agencies were complicit in that statement, in destroying it. We have a self-fulfilling policy of regulatory failure because of the leadership in this era.
Friday, April 23, 2010
FDIC shuts down 7 banks in Illinois
http://finance.yahoo.com/news/FDIC-shuts-down-7-banks-in-apf-3746090585.html?x=0&sec=topStories&pos=1&asset=&ccode=
Regulators on Friday shut down seven banks in Illinois, putting the number of U.S. bank failures this year at 57.
The Federal Deposit Insurance Corp. took over four banks in Chicago: New Century Bank, with $485.6 million in assets; Citizens Bank&Trust Company, with $77.3 million in assets; Broadway Bank, with $1.2 billion in assets; and Lincoln Park Savings Bank, with $199.9 million in assets.
The FDIC also took over Amcore Bank of Rockford, which had $3.8 billion in assets; Peotone Bank and Trust Company in Peotone, with $130.2 million in assets; and Wheatland Bank of Naperville, with $437.2 million in assets.
Regulators on Friday shut down seven banks in Illinois, putting the number of U.S. bank failures this year at 57.
The Federal Deposit Insurance Corp. took over four banks in Chicago: New Century Bank, with $485.6 million in assets; Citizens Bank&Trust Company, with $77.3 million in assets; Broadway Bank, with $1.2 billion in assets; and Lincoln Park Savings Bank, with $199.9 million in assets.
The FDIC also took over Amcore Bank of Rockford, which had $3.8 billion in assets; Peotone Bank and Trust Company in Peotone, with $130.2 million in assets; and Wheatland Bank of Naperville, with $437.2 million in assets.
Dozens of Australian children fall ill from flu vaccine
http://www.telegraph.co.uk/health/children_shealth/7622112/Dozens-of-Australian-children-fall-ill-from-flu-vaccine.html
And this is the cure. Really is it worth it?
Doctors across Australia have been ordered to stop giving young children the seasonal flu vaccine after 44 children fell ill hours after being immunised
The otherwise healthy children, all aged under five, suffered fevers, vomiting and febrile convulsions after receiving the vaccination. More than 20 were admitted to hospital and at least one child is seriously ill.
Jim Bishop, the country's chief medical officer, said that he was suspending vaccinations for under-five as a "precautionary measure". He said that children who had received the vaccine in the last 24 hours should be monitored closely by their parents.
"Until we know more we've suggested that we don't use that [seasonal flu vaccine] for the moment in children under five," he told the Australian Broadcasting Corporation.
"I'm advising all doctors today not to use it until we know a bit more.
"This may be part of the normal pattern once we see the whole picture, or it may be more than we would expect. "Therefore I just think it's wise and precautionary not to use it in children under five
And this is the cure. Really is it worth it?
Doctors across Australia have been ordered to stop giving young children the seasonal flu vaccine after 44 children fell ill hours after being immunised
The otherwise healthy children, all aged under five, suffered fevers, vomiting and febrile convulsions after receiving the vaccination. More than 20 were admitted to hospital and at least one child is seriously ill.
Jim Bishop, the country's chief medical officer, said that he was suspending vaccinations for under-five as a "precautionary measure". He said that children who had received the vaccine in the last 24 hours should be monitored closely by their parents.
"Until we know more we've suggested that we don't use that [seasonal flu vaccine] for the moment in children under five," he told the Australian Broadcasting Corporation.
"I'm advising all doctors today not to use it until we know a bit more.
"This may be part of the normal pattern once we see the whole picture, or it may be more than we would expect. "Therefore I just think it's wise and precautionary not to use it in children under five
Wednesday, April 21, 2010
Obama suggests value-added tax may be an option
http://news.yahoo.com/s/ap/20100421/ap_on_bi_ge/us_obama_tax
Revenue options lol what a joke. The government needs to stop spending
WASHINGTON – President Barack Obama suggested Wednesday that a new value-added tax on Americans is still on the table, seeming to show more openness to the idea than his aides have expressed in recent days.
Before deciding what revenue options are best for dealing with the deficit and the economy, Obama said in an interview with CNBC, "I want to get a better picture of what our options are."
Many European countries impose a VAT, which taxes the value that is added at each stage of production of certain commodities. It could apply, for instance, to raw products delivered to a mill, the mill's production work and so on up the line to the retailer.
Revenue options lol what a joke. The government needs to stop spending
WASHINGTON – President Barack Obama suggested Wednesday that a new value-added tax on Americans is still on the table, seeming to show more openness to the idea than his aides have expressed in recent days.
Before deciding what revenue options are best for dealing with the deficit and the economy, Obama said in an interview with CNBC, "I want to get a better picture of what our options are."
Many European countries impose a VAT, which taxes the value that is added at each stage of production of certain commodities. It could apply, for instance, to raw products delivered to a mill, the mill's production work and so on up the line to the retailer.
Lawmakers: local govts. lost $1.7B due to Lehman
http://www.chron.com/disp/story.mpl/nation/6966881.html
The question is, why should the government( The taxpayer) have to reimburse the municipalities and local governments for the deliberate misconduct by the banks or the SEC?
It's time to make the banks and the SEC responsible for their own short comings in their excessive need to feed the greed on a prey that was all to easy to dupe, and one that should have never been seen in the cross hairs of their target goals.
Two lawmakers say Lehman Brothers' historic collapse cost school districts and local governments millions, forcing many to make major cutbacks.
Rep. Anna Eshoo, D-Calif., said 40 municipalities nationwide lost around $1.7 billion after the firm went under. She is introducing legislation that would require the federal government to compensate those governments.
At a hearing Tuesday probing what led to Lehman's collapse, Eshoo said San Mateo County, which is in her district, lost $155 million.
Lehman's meltdown in September 2008 was the biggest corporate bankruptcy in U.S. history. It threw global financial markets into crisis.
Another lawmaker said numerous governments suffered huge losses.
“These were school districts and local governments that made investments that they believed were conservative,” said Rep. Ed Perlmutter, D-Colo. “They trusted that federal regulators were keeping a watchful eye on companies like Lehman Brothers.”
The former chief executive for Lehman is scheduled to testify at the hearing, which will probe a bankruptcy examiner's report that the firm masked $50 billion in debt.
The examiner, Anton Valukas, however, criticized the company and the Securities and Exchange Commission. Lehman, he said, “was significantly and persistently in excess of its own risk limits,” he said in prepared remarks. The SEC, meanwhile, “was aware of these excesses and simply acquiesced.”
The question is, why should the government( The taxpayer) have to reimburse the municipalities and local governments for the deliberate misconduct by the banks or the SEC?
It's time to make the banks and the SEC responsible for their own short comings in their excessive need to feed the greed on a prey that was all to easy to dupe, and one that should have never been seen in the cross hairs of their target goals.
Two lawmakers say Lehman Brothers' historic collapse cost school districts and local governments millions, forcing many to make major cutbacks.
Rep. Anna Eshoo, D-Calif., said 40 municipalities nationwide lost around $1.7 billion after the firm went under. She is introducing legislation that would require the federal government to compensate those governments.
At a hearing Tuesday probing what led to Lehman's collapse, Eshoo said San Mateo County, which is in her district, lost $155 million.
Lehman's meltdown in September 2008 was the biggest corporate bankruptcy in U.S. history. It threw global financial markets into crisis.
Another lawmaker said numerous governments suffered huge losses.
“These were school districts and local governments that made investments that they believed were conservative,” said Rep. Ed Perlmutter, D-Colo. “They trusted that federal regulators were keeping a watchful eye on companies like Lehman Brothers.”
The former chief executive for Lehman is scheduled to testify at the hearing, which will probe a bankruptcy examiner's report that the firm masked $50 billion in debt.
The examiner, Anton Valukas, however, criticized the company and the Securities and Exchange Commission. Lehman, he said, “was significantly and persistently in excess of its own risk limits,” he said in prepared remarks. The SEC, meanwhile, “was aware of these excesses and simply acquiesced.”
Tuesday, April 20, 2010
Beached whale's stomach found to be full of fresh trash
http://seattletimes.nwsource.com/html/localnews/2011657607_graywhale21m.html
Humanity can see no farther than the tip of it's own nose.
This is just wrong and so selfishly unfair.
A gray whale's last meal in Puget Sound included plenty of trash, and it was fresh enough to indicate the animal took the "eat local" mantra enthusiastically to heart before coming ashore at Arroyo Beach, and later dying about a mile south of the Fauntleroy ferry dock
Sweatpants. A golf ball. Surgical gloves. Small towels. Bits of plastic. And more than 20 plastic bags.
Humanity can see no farther than the tip of it's own nose.
This is just wrong and so selfishly unfair.
A gray whale's last meal in Puget Sound included plenty of trash, and it was fresh enough to indicate the animal took the "eat local" mantra enthusiastically to heart before coming ashore at Arroyo Beach, and later dying about a mile south of the Fauntleroy ferry dock
Sweatpants. A golf ball. Surgical gloves. Small towels. Bits of plastic. And more than 20 plastic bags.
Sovereign debt tops IMF worries
http://www.telegraph.co.uk/finance/economics/7611787/Sovereign-debt-tops-IMF-worries.html
But we saved the banks, this is just a little fly in that ointment.
Spiralling sovereign debt in Europe, the US, and Japan has emerged as the top threat to the world economy and risks setting off a fresh financial storm, the International Monetary Fund has warned.
But we saved the banks, this is just a little fly in that ointment.
Spiralling sovereign debt in Europe, the US, and Japan has emerged as the top threat to the world economy and risks setting off a fresh financial storm, the International Monetary Fund has warned.
Orlando has free rides, cigars for ash cloud angst
http://www.reuters.com/article/idUSTRE63J5WW20100420
Oh look, now there something you don't see everyday.
People before profit. I was almost positive that that ideal was extinct
High five Orlando, for being cool enough to care, in times of your own despair.
"Sometimes it's not about money. Sometimes you just have to help people and that's what we're trying to do right now," Sticht said.
Stranded in Orlando, Florida, by that pesky volcanic ash cloud from Iceland?
U.S.
Relax, enjoy a free cigar and beer, get a free day's entry to Walt Disney World and other famous amusement parks, or cash in on an additional free seat for a local swamp tour.
Retailers, theme park operators and hoteliers in Orlando, one of the top tourist destinations on the planet, are looking to ease the pain of thousands of stranded foreign travelers with a raft of 'freebies,' discounts and cut-price promotions.
The website of the Orlando/Orange County Convention and Visitors Bureau, Inc has created a special link window, called European Air Service Disruption Offers, to list its promotions for frustrated fliers blocked by the ash cloud air crisis.
Oh look, now there something you don't see everyday.
People before profit. I was almost positive that that ideal was extinct
High five Orlando, for being cool enough to care, in times of your own despair.
"Sometimes it's not about money. Sometimes you just have to help people and that's what we're trying to do right now," Sticht said.
Stranded in Orlando, Florida, by that pesky volcanic ash cloud from Iceland?
U.S.
Relax, enjoy a free cigar and beer, get a free day's entry to Walt Disney World and other famous amusement parks, or cash in on an additional free seat for a local swamp tour.
Retailers, theme park operators and hoteliers in Orlando, one of the top tourist destinations on the planet, are looking to ease the pain of thousands of stranded foreign travelers with a raft of 'freebies,' discounts and cut-price promotions.
The website of the Orlando/Orange County Convention and Visitors Bureau, Inc has created a special link window, called European Air Service Disruption Offers, to list its promotions for frustrated fliers blocked by the ash cloud air crisis.
Ex-CEO on Lehman's ruin: "I have to live with that"
http://www.reuters.com/article/idUSTRE63J42Z20100420
No Dick you probably didn't know since you fired the guy that was trying to tell you.
Former Lehman Brothers CEO Richard Fuld lifted his bowed head, looked squarely at U.S. lawmakers on Tuesday and acknowledged that people were hurt in the collapse of the former Wall Street giant.
The 2008 Lehman debacle paralyzed global capital markets and unleashed calls for financial reform. The post-mortem on Lehman's demise is now raising more specific concerns.
A court-appointed examiner reported in March that Lehman used a technique known as "Repo 105" to temporarily remove some assets from its books, obscuring its full financial picture.
"I have absolutely no recollection whatsoever of hearing anything about 'Repo 105 transactions' while I was CEO of Lehman," Fuld told the committee at a public hearing.
Repo 105 is a legal technique, but critics say it was improperly used by Lehman to mask its level of risk-taking. No charges have been brought against Lehman over the practice
In an emotional moment, a former Lehman executive, Matthew Lee, told the committee that he was suddenly fired in 2008 after raising concerns about the firm's Repo 105 dealings.
"On multiple occasions, I attempted to bring these issues to the attention of Lehman Brothers' executive management ... Within days of first raising issues, I was terminated," said Lee, choking up at one point and pausing to drink some water.
"Based on what I observed during my employment, I believe that there were serious, material accounting control and corporate governance issues at Lehman," he said.
No Dick you probably didn't know since you fired the guy that was trying to tell you.
Former Lehman Brothers CEO Richard Fuld lifted his bowed head, looked squarely at U.S. lawmakers on Tuesday and acknowledged that people were hurt in the collapse of the former Wall Street giant.
The 2008 Lehman debacle paralyzed global capital markets and unleashed calls for financial reform. The post-mortem on Lehman's demise is now raising more specific concerns.
A court-appointed examiner reported in March that Lehman used a technique known as "Repo 105" to temporarily remove some assets from its books, obscuring its full financial picture.
"I have absolutely no recollection whatsoever of hearing anything about 'Repo 105 transactions' while I was CEO of Lehman," Fuld told the committee at a public hearing.
Repo 105 is a legal technique, but critics say it was improperly used by Lehman to mask its level of risk-taking. No charges have been brought against Lehman over the practice
In an emotional moment, a former Lehman executive, Matthew Lee, told the committee that he was suddenly fired in 2008 after raising concerns about the firm's Repo 105 dealings.
"On multiple occasions, I attempted to bring these issues to the attention of Lehman Brothers' executive management ... Within days of first raising issues, I was terminated," said Lee, choking up at one point and pausing to drink some water.
"Based on what I observed during my employment, I believe that there were serious, material accounting control and corporate governance issues at Lehman," he said.
N.Y. case against Greenberg "devastating": judge
http://www.reuters.com/article/idUSTRE63J51F20100420
No none of the corruption started yesterday kids. It's been going on a long time.
But if your a big enough corporation you can pay enough money to make your problem disappear.
New York state prosecutors have "a devastating case" against Maurice "Hank" Greenberg, the former American International Group Inc chief executive accused of fraud over a reinsurance transaction 10 years ago, the presiding judge said in court on Tuesday.
The transaction at issue long preceded taxpayer bailouts of about $180 billion for AIG after it nearly collapsed from mortgage-related losses. The revelation of the GenRe case contributed to Greenberg's ouster in 2005.
"This transaction is material because it was designed to, and did in fact, mislead investors about AIG's reserves," Ellenhorn told the court.
Federal prosecutors have obtained five criminal convictions and two guilty pleas of former General Re and AIG officials over the transaction, including a conviction of Ferguson. He was sentenced to two years in prison.
Last August, Greenberg agreed to pay $15 million to settle U.S. Securities and Exchange Commission charges that he altered AIG's records to boost results between 2000 and 2005.
Three months later, Greenberg and AIG resolved years of litigation that followed his exit. AIG agreed to reimburse him and others for as much as $150 million of legal expenses.
No none of the corruption started yesterday kids. It's been going on a long time.
But if your a big enough corporation you can pay enough money to make your problem disappear.
New York state prosecutors have "a devastating case" against Maurice "Hank" Greenberg, the former American International Group Inc chief executive accused of fraud over a reinsurance transaction 10 years ago, the presiding judge said in court on Tuesday.
The transaction at issue long preceded taxpayer bailouts of about $180 billion for AIG after it nearly collapsed from mortgage-related losses. The revelation of the GenRe case contributed to Greenberg's ouster in 2005.
"This transaction is material because it was designed to, and did in fact, mislead investors about AIG's reserves," Ellenhorn told the court.
Federal prosecutors have obtained five criminal convictions and two guilty pleas of former General Re and AIG officials over the transaction, including a conviction of Ferguson. He was sentenced to two years in prison.
Last August, Greenberg agreed to pay $15 million to settle U.S. Securities and Exchange Commission charges that he altered AIG's records to boost results between 2000 and 2005.
Three months later, Greenberg and AIG resolved years of litigation that followed his exit. AIG agreed to reimburse him and others for as much as $150 million of legal expenses.
Monday, April 19, 2010
Vacationing a human right, EU chief says
http://www.ottawacitizen.com/travel/news/Vacationing+human+right+chief+says/2924330/story.html
The European Union has declared travelling a human right, and is launching a scheme to subsidize vacations with taxpayers' dollars for those too poor to afford their own trips.
Antonio Tajani, the European Union commissioner for enterprise and industry, proposed a strategy that could cost European taxpayers hundreds of millions of euros a year, The Times of London reports
The European Union has declared travelling a human right, and is launching a scheme to subsidize vacations with taxpayers' dollars for those too poor to afford their own trips.
Antonio Tajani, the European Union commissioner for enterprise and industry, proposed a strategy that could cost European taxpayers hundreds of millions of euros a year, The Times of London reports
Volcano flight chaos leaves many passengers broke
http://apnews.myway.com/article/20100419/D9F625SG0.html
Just another disgusting show of profit over people
Andrew and Debbie Jackman of Britain spent more than two years saving up for their family vacation to Australia. They probably wish they'd saved a little longer.
On Friday, they found out their Qantas flight from Sydney to Britain had been canceled thanks to a volcano erupting in Iceland. So the Cambridge couple and their two teenage sons squeezed into a 150 Australian dollar ($138) hotel room to wait out the night. On Saturday, the hotel raised the price of the same room to AU$350 - simply because it could, Andrew said ruefully. After endless negotiations, the hotel brought the price back down to AU$160, but the family, broke and frustrated, opted to move Sunday to a hostel
Just another disgusting show of profit over people
Andrew and Debbie Jackman of Britain spent more than two years saving up for their family vacation to Australia. They probably wish they'd saved a little longer.
On Friday, they found out their Qantas flight from Sydney to Britain had been canceled thanks to a volcano erupting in Iceland. So the Cambridge couple and their two teenage sons squeezed into a 150 Australian dollar ($138) hotel room to wait out the night. On Saturday, the hotel raised the price of the same room to AU$350 - simply because it could, Andrew said ruefully. After endless negotiations, the hotel brought the price back down to AU$160, but the family, broke and frustrated, opted to move Sunday to a hostel
Goldman's "Interlocking" relationships
http://market-ticker.denninger.net/archives/2215-Goldmans-Interlocking-Relationships.html
Yes I know I already posted this, but Karl has such a way with words, I laughed and then felt impelled to share his thoughts with you.
Yes I know I already posted this, but Karl has such a way with words, I laughed and then felt impelled to share his thoughts with you.
Sunday, April 18, 2010
who is head of ACA was married to
http://www.huffingtonpost.com/vicky-..._b_542154.html
This story is gonna get good
ACA had a horrible reputation," he told me, which led me to ask the obvious question so why would Goldman want ACA's stamp as selection manager on the CDO they were marketing? Fabrice Tourre, the 31-year-old named as the architect of Abacus, is quoted as insisting that Goldman wanted ACA's brand name and "credibility" on the CDO.
My source told me to check out who the head of ACA was married to. "I think you'll find it's a senior woman at Goldman Sachs," he said.
Well, yep, it is.
This story is gonna get good
ACA had a horrible reputation," he told me, which led me to ask the obvious question so why would Goldman want ACA's stamp as selection manager on the CDO they were marketing? Fabrice Tourre, the 31-year-old named as the architect of Abacus, is quoted as insisting that Goldman wanted ACA's brand name and "credibility" on the CDO.
My source told me to check out who the head of ACA was married to. "I think you'll find it's a senior woman at Goldman Sachs," he said.
Well, yep, it is.
USAFE units participate in BRILLIANT ARDENT 2010
http://www.usafe.af.mil/news/story.asp?id=123199666
I bet this party didn't go off as planned.
The 22nd Fighter Squadron at Spangdhalem Air Base and 351st Air Refueling Squadron from RAF Mildenhall are partnering with air forces from the Czech Republic, France, Germany, Italy, Poland, and Turkey to participate in Exercise BRILLIANT ARDENT 10.
The large scale NATO Response Force Air Live Exercise hosted by Germany began April 12 and will run through April 22. Participation by U.S. Air Forces in Europe units directly aligns with the command key mission areas of providing forces for global operations and building partnership.
Sixty aircraft ranging from fighters, attack aircraft, helicopters, tanker and airborne early warning aircraft are operating from air bases located in Germany, the Czech Republic, France, Poland, and UK.
I bet this party didn't go off as planned.
The 22nd Fighter Squadron at Spangdhalem Air Base and 351st Air Refueling Squadron from RAF Mildenhall are partnering with air forces from the Czech Republic, France, Germany, Italy, Poland, and Turkey to participate in Exercise BRILLIANT ARDENT 10.
The large scale NATO Response Force Air Live Exercise hosted by Germany began April 12 and will run through April 22. Participation by U.S. Air Forces in Europe units directly aligns with the command key mission areas of providing forces for global operations and building partnership.
Sixty aircraft ranging from fighters, attack aircraft, helicopters, tanker and airborne early warning aircraft are operating from air bases located in Germany, the Czech Republic, France, Poland, and UK.
Friday, April 16, 2010
UPDATE 6-Goldman Sachs charged with fraud by SEC
http://www.reuters.com/article/idUSN1614841320100416?type=marketsNews
Paulson might not be guilty of fraud, but what about "Insider trading"
The SEC lawsuit announced on Friday concerns ABACUS, a synthetic collateralized debt obligation that hinged on the performance of subprime residential mortgage-backed securities, and which the regulator said Goldman structured and marketed.
According to the SEC, Goldman did not tell investors "vital information" about ABACUS, including that Paulson & Co was involved in choosing which securities would be part of the portfolio.
The SEC also alleged that Paulson took a short position against the CDO in a bet that its value would fall.
In a statement, Paulson & Co said it did buy credit protection from Goldman on securities issued in the ABACUS program, but did not market the product.
Paulson might not be guilty of fraud, but what about "Insider trading"
The SEC lawsuit announced on Friday concerns ABACUS, a synthetic collateralized debt obligation that hinged on the performance of subprime residential mortgage-backed securities, and which the regulator said Goldman structured and marketed.
According to the SEC, Goldman did not tell investors "vital information" about ABACUS, including that Paulson & Co was involved in choosing which securities would be part of the portfolio.
The SEC also alleged that Paulson took a short position against the CDO in a bet that its value would fall.
In a statement, Paulson & Co said it did buy credit protection from Goldman on securities issued in the ABACUS program, but did not market the product.
Samsung warns of dangers of 3D television
http://www.telegraph.co.uk/technology/news/7596241/Samsung-warns-of-dangers-of-3D-television.html
The world’s largest electronics firm has highlighted potential dangers the technology poses to pregnant women, the elderly, children and people with serious medical conditions.
The Korean manufacturer, whose 3D sets will hit British stores in the coming days, warned of an array of side effects viewers could suffer.
Children who watch more than two hours of television a day putting health at riskThe devices could trigger epileptic fits or cause ailments ranging from altered vision and dizziness to nausea, cramps, convulsions and involuntary movements such as eye or muscle twitching, it said.
Those who have been deprived of sleep or who have been drinking alcohol are also advised to avoid watching 3D television.
The scale of the warning threatens to overshadow the launch of 3D, which has been billed as the future for television by manufacturers and broadcasters
The world’s largest electronics firm has highlighted potential dangers the technology poses to pregnant women, the elderly, children and people with serious medical conditions.
The Korean manufacturer, whose 3D sets will hit British stores in the coming days, warned of an array of side effects viewers could suffer.
Children who watch more than two hours of television a day putting health at riskThe devices could trigger epileptic fits or cause ailments ranging from altered vision and dizziness to nausea, cramps, convulsions and involuntary movements such as eye or muscle twitching, it said.
Those who have been deprived of sleep or who have been drinking alcohol are also advised to avoid watching 3D television.
The scale of the warning threatens to overshadow the launch of 3D, which has been billed as the future for television by manufacturers and broadcasters
SEC accuses Goldman Sachs of civil fraud
http://finance.yahoo.com/news/SEC-accuses-Goldman-Sachs-of-apf-1523020722.html?x=0
Fraud and now for the piss off, the hand slap
The SEC is seeking unspecified fines and restitution from Goldman Sachs and Tourre.
The government has accused Goldman Sachs & Co. of defrauding investors by failing to disclose conflicts of interest in mortgage investments it sold as the housing market was faltering.
The Securities and Exchange Commission announced Friday civil fraud charges against the Wall Street powerhouse and one of its vice presidents. The agency alleges Goldman failed to disclose that one of its clients helped create -- and then bet against -- subprime mortgage securities that Goldman sold to investors.
Investors in the mortgage securities are alleged to have lost more than $1 billion, the SEC noted. The agency is seeking to recoup profits reaped on the deal.
The Goldman client implicated in the fraud is one of the world's largest hedge funds, Paulson & Co., which paid Goldman roughly $15 million for structuring the deals in 2007.
Goldman Sachs shares fell more than 12 percent after the SEC announcement, which also caused shares of other financial companies to sink. The Dow Jones industrial average fell more than 120 points in midday trading.
Fraud and now for the piss off, the hand slap
The SEC is seeking unspecified fines and restitution from Goldman Sachs and Tourre.
The government has accused Goldman Sachs & Co. of defrauding investors by failing to disclose conflicts of interest in mortgage investments it sold as the housing market was faltering.
The Securities and Exchange Commission announced Friday civil fraud charges against the Wall Street powerhouse and one of its vice presidents. The agency alleges Goldman failed to disclose that one of its clients helped create -- and then bet against -- subprime mortgage securities that Goldman sold to investors.
Investors in the mortgage securities are alleged to have lost more than $1 billion, the SEC noted. The agency is seeking to recoup profits reaped on the deal.
The Goldman client implicated in the fraud is one of the world's largest hedge funds, Paulson & Co., which paid Goldman roughly $15 million for structuring the deals in 2007.
Goldman Sachs shares fell more than 12 percent after the SEC announcement, which also caused shares of other financial companies to sink. The Dow Jones industrial average fell more than 120 points in midday trading.
BART police pull Tasers, will retrain officers
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/04/16/MNK81CVF03.DTL
(04-15) 18:47 PDT OAKLAND -- The BART Police Department stripped its officers of Tasers on Thursday, days after a sergeant fired the electric darts of his stun gun at a 13-year-old boy fleeing from police in Richmond on his bicycle, sources told The Chronicle.
BART officials, who said officers would be retrained to use the devices, attributed the decision to the Richmond incident as well as a recent federal court ruling that narrowed the circumstances under which police can use Tasers.
The officials said they could not comment on the Richmond case, citing privacy laws that apply to internal investigations. Interim Police Chief Dash Butler said only that the incident accelerated plans that were already in progress to retrain officers and update policies on the proper use of Tasers, which BART police began using in December 2008.
Sources familiar with the matter, however, told The Chronicle that a veteran sergeant in a moving patrol car fired his Taser several days ago at the 13-year-old boy, who was fleeing from an altercation at BART's Richmond Station on a bicycle.
The darts missed the boy, said the sources, who spoke on condition of anonymity
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/04/16/MNK81CVF03.DTL#ixzz0lH2mN4hA
(04-15) 18:47 PDT OAKLAND -- The BART Police Department stripped its officers of Tasers on Thursday, days after a sergeant fired the electric darts of his stun gun at a 13-year-old boy fleeing from police in Richmond on his bicycle, sources told The Chronicle.
BART officials, who said officers would be retrained to use the devices, attributed the decision to the Richmond incident as well as a recent federal court ruling that narrowed the circumstances under which police can use Tasers.
The officials said they could not comment on the Richmond case, citing privacy laws that apply to internal investigations. Interim Police Chief Dash Butler said only that the incident accelerated plans that were already in progress to retrain officers and update policies on the proper use of Tasers, which BART police began using in December 2008.
Sources familiar with the matter, however, told The Chronicle that a veteran sergeant in a moving patrol car fired his Taser several days ago at the 13-year-old boy, who was fleeing from an altercation at BART's Richmond Station on a bicycle.
The darts missed the boy, said the sources, who spoke on condition of anonymity
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/04/16/MNK81CVF03.DTL#ixzz0lH2mN4hA
Police used Taser on man in epileptic seizure
http://www.guardian.co.uk/uk/2010/apr/13/police-taser-inquiry-epilepsy-seizure
Greater Manchester police is being investigated after its officers fired a Taser gun at a man who became aggressive while having an epileptic seizure.
The Independent Police Complaints Commission said today it was studying claims the officer used excessive and unnecessary force in firing the stun gun at the 40-year-old man, who has not been named.
A Taser is a handheld device that issues a 50,000-volt shock, temporarily incapacitating a person by interfering with muscle control. The officers had been called to assist paramedics who were struggling with the man who had collapsed in a gym in Manchester in November last year.
The man reportedly bit ambulance staff and punched emergency service paramedics after he fell ill at the Powerleague gym in Whalley Range, south Manchester.
Greater Manchester police is being investigated after its officers fired a Taser gun at a man who became aggressive while having an epileptic seizure.
The Independent Police Complaints Commission said today it was studying claims the officer used excessive and unnecessary force in firing the stun gun at the 40-year-old man, who has not been named.
A Taser is a handheld device that issues a 50,000-volt shock, temporarily incapacitating a person by interfering with muscle control. The officers had been called to assist paramedics who were struggling with the man who had collapsed in a gym in Manchester in November last year.
The man reportedly bit ambulance staff and punched emergency service paramedics after he fell ill at the Powerleague gym in Whalley Range, south Manchester.
Thursday, April 15, 2010
China trims holdings of US Treasurys by 1.3 pct.
http://finance.yahoo.com/news/China-trims-holdings-of-US-apf-2137019335.html?x=0&sec=topStories&pos=7&asset=&ccode=
So did they or didn't they? Only time will tell.
This kind of spin will make you dizzy.
China trimmed its holdings of U.S. Treasury debt 1.3 percent in February, the fourth consecutive decline. Those reductions are raising concerns that the U.S. government could face higher interest rates to finance its soaring budget deficits.
The Treasury Department said Thursday that China's holdings dropped $11.5 billion to $877.5 billion. That still left China as the largest foreign holder of U.S. Treasury debt. Japan retained the No. 2 spot with $768.5 billion, a drop of 0.4 percent from the January level.
Net foreign purchases of long-term securities, a category that includes both government and corporate debt, totaled $47.1 billion in February. That compared with an increase of $15 billion in January.
By contrast to the declines in holdings of Treasury securities by China and Japan, holdings by Britain jumped 12.2 percent to $321.7 billion. Hong Kong also recorded a large increase of 4 percent to $152.4 billion.
Treasury analysts said that one explanation for the changes may be that Chinese investors are buying their securities through Britain and Hong Kong. Once a year, the government does an adjustment of the data to sort out ownership of the securities by nationality rather than the country where the purchases were made.
The latest adjustment released in February showed that China had retained its top ranking as the largest foreign holder of U.S. Treasury securities. The adjustment revised data released just 10 days earlier which showed China had cut its holdings so sharply that it had dropped from the No. 1 spot.
So did they or didn't they? Only time will tell.
This kind of spin will make you dizzy.
China trimmed its holdings of U.S. Treasury debt 1.3 percent in February, the fourth consecutive decline. Those reductions are raising concerns that the U.S. government could face higher interest rates to finance its soaring budget deficits.
The Treasury Department said Thursday that China's holdings dropped $11.5 billion to $877.5 billion. That still left China as the largest foreign holder of U.S. Treasury debt. Japan retained the No. 2 spot with $768.5 billion, a drop of 0.4 percent from the January level.
Net foreign purchases of long-term securities, a category that includes both government and corporate debt, totaled $47.1 billion in February. That compared with an increase of $15 billion in January.
By contrast to the declines in holdings of Treasury securities by China and Japan, holdings by Britain jumped 12.2 percent to $321.7 billion. Hong Kong also recorded a large increase of 4 percent to $152.4 billion.
Treasury analysts said that one explanation for the changes may be that Chinese investors are buying their securities through Britain and Hong Kong. Once a year, the government does an adjustment of the data to sort out ownership of the securities by nationality rather than the country where the purchases were made.
The latest adjustment released in February showed that China had retained its top ranking as the largest foreign holder of U.S. Treasury securities. The adjustment revised data released just 10 days earlier which showed China had cut its holdings so sharply that it had dropped from the No. 1 spot.
Iceland's volcanic ash halts flights across Europe
http://finance.yahoo.com/news/Icelands-volcanic-ash-halts-apf-1135739435.html?x=0&sec=topStories&pos=6&asset=&ccode=
LONDON (AP) -- Ash from Iceland's spewing volcano halted air traffic across a wide swathe of Europe on Thursday, grounding planes on a scale not seen since the 9/11 terror attacks. Thousands of flights were canceled, tens of thousands of passengers were stranded and officials said it was not clear when it would be safe enough to fly again.
In a sobering comment, one scientist in Iceland said the ejection of volcanic ash -- and therefore disruptions in air travel -- could continue for days or even weeks.
Authorities stopped all flights over Britain, Ireland and the Nordic countries. The shutdown closed London's five major airports including Heathrow, Europe's busiest, a major trans-Atlantic hub that handles over 1,200 flights and 180,000 passengers per day.
With the cloud drifting south and east across Britain, the country's air traffic service banned all non-emergency flights until at least 7 a.m. (0600 GMT, 2 a.m. EDT) Friday.
LONDON (AP) -- Ash from Iceland's spewing volcano halted air traffic across a wide swathe of Europe on Thursday, grounding planes on a scale not seen since the 9/11 terror attacks. Thousands of flights were canceled, tens of thousands of passengers were stranded and officials said it was not clear when it would be safe enough to fly again.
In a sobering comment, one scientist in Iceland said the ejection of volcanic ash -- and therefore disruptions in air travel -- could continue for days or even weeks.
Authorities stopped all flights over Britain, Ireland and the Nordic countries. The shutdown closed London's five major airports including Heathrow, Europe's busiest, a major trans-Atlantic hub that handles over 1,200 flights and 180,000 passengers per day.
With the cloud drifting south and east across Britain, the country's air traffic service banned all non-emergency flights until at least 7 a.m. (0600 GMT, 2 a.m. EDT) Friday.
Foreclosure rates surge, biggest jump in 5 years
http://finance.yahoo.com/news/Foreclosure-rates-surge-apf-35024429.html?x=0&sec=topStories&pos=2&asset=&ccode=
Aren't you glad we saved the banks though? What slays me is we gave them all that money and never even looked into their books to see if they qualified for the loan and had the capacity to pay it back. You know that little perk that wasn't afforded to the homeowners.
A record number of U.S. homes were lost to foreclosure in the first three months of this year, a sign banks are starting to wade through the backlog of troubled home loans at a faster pace, according to a new report.
RealtyTrac Inc. said Thursday that the number of U.S. homes taken over by banks jumped 35 percent in the first quarter from a year ago. In addition, households facing foreclosure grew 16 percent in the same period and 7 percent from the last three months of 2009.
More homes were taken over by banks and scheduled for a foreclosure sale than in any quarter going back to at least January 2005, when RealtyTrac began reporting the data, the firm said.
"We're right now on pace to see more than 1 million bank repossessions this year," said Rick Sharga, a RealtyTrac senior vice president.
Foreclosures began to ease last year as banks came under pressure from the Obama administration to modify home loans for troubled borrowers. In addition, some states enacted foreclosure moratoriums in hopes of giving homeowners behind in payments time to catch up. And in many cases, banks have had trouble coping with how to handle the glut of problem loans.
Aren't you glad we saved the banks though? What slays me is we gave them all that money and never even looked into their books to see if they qualified for the loan and had the capacity to pay it back. You know that little perk that wasn't afforded to the homeowners.
A record number of U.S. homes were lost to foreclosure in the first three months of this year, a sign banks are starting to wade through the backlog of troubled home loans at a faster pace, according to a new report.
RealtyTrac Inc. said Thursday that the number of U.S. homes taken over by banks jumped 35 percent in the first quarter from a year ago. In addition, households facing foreclosure grew 16 percent in the same period and 7 percent from the last three months of 2009.
More homes were taken over by banks and scheduled for a foreclosure sale than in any quarter going back to at least January 2005, when RealtyTrac began reporting the data, the firm said.
"We're right now on pace to see more than 1 million bank repossessions this year," said Rick Sharga, a RealtyTrac senior vice president.
Foreclosures began to ease last year as banks came under pressure from the Obama administration to modify home loans for troubled borrowers. In addition, some states enacted foreclosure moratoriums in hopes of giving homeowners behind in payments time to catch up. And in many cases, banks have had trouble coping with how to handle the glut of problem loans.
Wednesday, April 14, 2010
Fed Shouldn’t Reveal Crisis Loans, Banks Vow to Tell High Court
http://www.bloomberg.com/apps/news?pid=20601087&sid=ax8ulGXswn4E
Now I ask myself, what is it that the FED and friends have hidden that will still cause a run on the banks 3 years later, for them to be going to all of this trouble to keep it hidden.
With the outing of repo 105 and the fraudulent accounting methods of Washington Mutual and Lehman, I can't help but thinking what's hidden under the FED's bed is very distasteful and definitely not a socially acceptable practice, and as taxpayers who bailed them all out I believe we have a right to know, exactly what that practice was.
April 14 (Bloomberg) -- The biggest U.S. commercial banks will take their fight against disclosure of Federal Reserve lending in 2008 to the Supreme Court if necessary, the top lawyer for an industry-owned group said.
Continued legal appeals will delay or block the first public look at details of the central bank’s $2 trillion in emergency lending during the 2008 financial crisis. The Clearing House Association LLC, a group that includes Bank of America Corp. and JPMorgan Chase & Co., joined the Fed in defense of a lawsuit brought by Bloomberg LP, the parent company of Bloomberg News, seeking release of records related to four Fed lending programs.
The U.S. Court of Appeals in Manhattan ruled March 19 that the central bank must release the documents. A three-judge panel of the appellate court rejected the Fed’s argument that disclosure would stigmatize borrowers and discourage banks from seeking emergency help.
“Our member banks are very concerned about real-time disclosure of information that could cause a run on the banks,” said Paul Saltzman, the group’s general counsel, in an interview yesterday. “We’re not going to let the Second Circuit opinion stand without seeking a review.”
Regardless of whether the Fed appeals, the Clearing House will take the next legal step by asking for a review by the full appellate court, Saltzman, 49, said at his office in New York. If the ruling is unfavorable, the bank group will petition the Supreme Court, he said.
Now I ask myself, what is it that the FED and friends have hidden that will still cause a run on the banks 3 years later, for them to be going to all of this trouble to keep it hidden.
With the outing of repo 105 and the fraudulent accounting methods of Washington Mutual and Lehman, I can't help but thinking what's hidden under the FED's bed is very distasteful and definitely not a socially acceptable practice, and as taxpayers who bailed them all out I believe we have a right to know, exactly what that practice was.
April 14 (Bloomberg) -- The biggest U.S. commercial banks will take their fight against disclosure of Federal Reserve lending in 2008 to the Supreme Court if necessary, the top lawyer for an industry-owned group said.
Continued legal appeals will delay or block the first public look at details of the central bank’s $2 trillion in emergency lending during the 2008 financial crisis. The Clearing House Association LLC, a group that includes Bank of America Corp. and JPMorgan Chase & Co., joined the Fed in defense of a lawsuit brought by Bloomberg LP, the parent company of Bloomberg News, seeking release of records related to four Fed lending programs.
The U.S. Court of Appeals in Manhattan ruled March 19 that the central bank must release the documents. A three-judge panel of the appellate court rejected the Fed’s argument that disclosure would stigmatize borrowers and discourage banks from seeking emergency help.
“Our member banks are very concerned about real-time disclosure of information that could cause a run on the banks,” said Paul Saltzman, the group’s general counsel, in an interview yesterday. “We’re not going to let the Second Circuit opinion stand without seeking a review.”
Regardless of whether the Fed appeals, the Clearing House will take the next legal step by asking for a review by the full appellate court, Saltzman, 49, said at his office in New York. If the ruling is unfavorable, the bank group will petition the Supreme Court, he said.
Treasury seeks to protect federal benefits: report
http://finance.yahoo.com/news/Treasury-seeks-to-protect-rb-2174460080.html?x=0&sec=topStories&pos=7&asset=&ccode=
This is how bad the lying banks want money, and they intend to take it to.
The Treasury department will release new rules on Wednesday that would prevent banks from seizing a borrower's social security to recover unpaid debt, the Wall Street Journal said.
The proposed new rules, to be published in the Federal Register, will require banks to check if the borrower has received any direct deposits of federal benefits within the past 60 days, the Journal said.
In case the borrower had received a federal benefit then the new rule would require the banks to establish a protected amount equal to the sum of the benefits deposited, the paper said.
This is how bad the lying banks want money, and they intend to take it to.
The Treasury department will release new rules on Wednesday that would prevent banks from seizing a borrower's social security to recover unpaid debt, the Wall Street Journal said.
The proposed new rules, to be published in the Federal Register, will require banks to check if the borrower has received any direct deposits of federal benefits within the past 60 days, the Journal said.
In case the borrower had received a federal benefit then the new rule would require the banks to establish a protected amount equal to the sum of the benefits deposited, the paper said.
Tuesday, April 13, 2010
Iceland lifts lid on banks 'excessive loans' to billionaires
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7583268/Iceland-lifts-lid-on-banks-excessive-loans-to-billionaires.html
This took down a country
Iceland’s banks gave “excessive” loans to a handful of powerful billionaires, including Robert Tchenguiz, the property entrepreneur, Jon Asgeir Johannesson, the retail tycoon, and Bjorgolfur Gudmundsson, the former owner of West Ham FC, according to a damning inquiry.
Its parliamentary investigation – The Truth Report – found numerous potential cases of illegality, including possible share price manipulation and exaggeration of asset values, within the island nation’s three banks – Kaupthing, Glitnir and Landsbanki.
The long-awaited report also suggests that the banks were effectively controlled by five investors wielding “unlimited influence”, with some acting as shadow directors. The report accuses the bank’s owners of pressuring management into awarding loans to their companies and friendly clients, with little or no collateral.
This took down a country
Iceland’s banks gave “excessive” loans to a handful of powerful billionaires, including Robert Tchenguiz, the property entrepreneur, Jon Asgeir Johannesson, the retail tycoon, and Bjorgolfur Gudmundsson, the former owner of West Ham FC, according to a damning inquiry.
Its parliamentary investigation – The Truth Report – found numerous potential cases of illegality, including possible share price manipulation and exaggeration of asset values, within the island nation’s three banks – Kaupthing, Glitnir and Landsbanki.
The long-awaited report also suggests that the banks were effectively controlled by five investors wielding “unlimited influence”, with some acting as shadow directors. The report accuses the bank’s owners of pressuring management into awarding loans to their companies and friendly clients, with little or no collateral.
Mexico set to cut off 24m mobile phone lines in crime crackdown
http://www.guardian.co.uk/world/2010/apr/13/mexican-mobile-phones-crime-crackdown
Mexico is bracing itself for communications chaos tomorrow, with some 24m mobile phone lines due to be disconnected as part of a government crackdown on organised crime.
The government announced today that only around 71% of the 83.5m mobile lines in Mexico had been logged with a new register, and that the disconnection of the rest was set to begin.
Mexico is bracing itself for communications chaos tomorrow, with some 24m mobile phone lines due to be disconnected as part of a government crackdown on organised crime.
The government announced today that only around 71% of the 83.5m mobile lines in Mexico had been logged with a new register, and that the disconnection of the rest was set to begin.
Senate takes step on jobless-benefits extension
http://seattletimes.nwsource.com/html/nationworld/2011591814_jobless14.html
The key words her kids is: This month.
Why do "The People" think that Congress is corrupt, or disfuntional, the self serving part is quite obvious all by it's self, since the fact that Lobbying has not been made illegal and when smelled for it's actual essence, stinks of being politically being bought off. The proof of the dysfuntuality was made quite obvious by the the Speaker of the House Nancy Pelosi when she said and I quote " We'll just have to pass the Healthcare reform bill to actually see what's in it"
Nancy there is no excuse that will resonable accepted as to why YOU didn't actually know just exctly what was in that bill.
What "The People" really want to know is how could you endorse and promote a bill that YOU yourself had NO IDEA of what it contained?
The unemployment benefits are the major part of a $9.2 billion package that would pay for a wide range of government programs this month, notably payments to doctors who treat Medicare patients, the National Flood Insurance Program and health-insurance help for jobless people. Backers want the measure to be considered an emergency, meaning no spending cuts or revenues would be necessary.
In late March, the Pew Research Center for the People & the Press asked people to describe their views toward Congress in one word. Eighty-six percent offered negative words: "Dysfunctional," "corrupt" and "self-serving" topped the list.
The key words her kids is: This month.
Why do "The People" think that Congress is corrupt, or disfuntional, the self serving part is quite obvious all by it's self, since the fact that Lobbying has not been made illegal and when smelled for it's actual essence, stinks of being politically being bought off. The proof of the dysfuntuality was made quite obvious by the the Speaker of the House Nancy Pelosi when she said and I quote " We'll just have to pass the Healthcare reform bill to actually see what's in it"
Nancy there is no excuse that will resonable accepted as to why YOU didn't actually know just exctly what was in that bill.
What "The People" really want to know is how could you endorse and promote a bill that YOU yourself had NO IDEA of what it contained?
The unemployment benefits are the major part of a $9.2 billion package that would pay for a wide range of government programs this month, notably payments to doctors who treat Medicare patients, the National Flood Insurance Program and health-insurance help for jobless people. Backers want the measure to be considered an emergency, meaning no spending cuts or revenues would be necessary.
In late March, the Pew Research Center for the People & the Press asked people to describe their views toward Congress in one word. Eighty-six percent offered negative words: "Dysfunctional," "corrupt" and "self-serving" topped the list.
Mine owner's private jet flew gov to W.Va. after blast
http://seattletimes.nwsource.com/html/nationworld/2011591709_mine14.html
See how this works? That private jet that the company owned JUST HAPPENED to be in Florida right?
Or was it actually sent to pick up the Governor? And if it was, should he have actually taken a lift, because no matter what his lawyer said, it now looks like a case for collusion.
West Virginia's governor flew back to the state hours after last week's deadly mine explosion on a jet provided by the mine's owner.
Gov. Joe Manchin said he was trying to return as quickly as possible after the April 5 blast that killed 29 miners. The governor was in Florida for vacation and said a flight on a state-owned plane couldn't immediately be arranged.
Massey Energy owns the Upper Big Branch mine. Manchin said company officials offered to fly him back while briefing him.
The governor's top lawyer told him the use of the company's plane was acceptable because it was an emergency and a flight on a state plane couldn't immediately be arranged.
See how this works? That private jet that the company owned JUST HAPPENED to be in Florida right?
Or was it actually sent to pick up the Governor? And if it was, should he have actually taken a lift, because no matter what his lawyer said, it now looks like a case for collusion.
West Virginia's governor flew back to the state hours after last week's deadly mine explosion on a jet provided by the mine's owner.
Gov. Joe Manchin said he was trying to return as quickly as possible after the April 5 blast that killed 29 miners. The governor was in Florida for vacation and said a flight on a state-owned plane couldn't immediately be arranged.
Massey Energy owns the Upper Big Branch mine. Manchin said company officials offered to fly him back while briefing him.
The governor's top lawyer told him the use of the company's plane was acceptable because it was an emergency and a flight on a state plane couldn't immediately be arranged.
It took the Senate three years
http://market-ticker.denninger.net/archives/2189-Gee,-It-Took-The-Senate-THREE-YEARS-WaMu.html
Yeah it took them three years Karl, they were hoping that people would forget about it. Why you ask? Because the WHOLE god damned financial system and every bank that plays in it, books look just like Washington Mutual's.
Now that's a lot of WHITE COLLAR crime Karl, and we probably don't have enough federal penal institutions to house them all.
So Congress with all of their brilliance prefers to sweep it under the rug, because god forbid that they should look to deeply and actually have to prosecute their own meal tickets. It's just not the political way. Lobbyists of the banks are forking over BIG BUCKS to make sure that there is NO finacial reform to speak of, so that business goes on as usual.
In a pair of articles that outline exactly how outrageously corrupt our government's so-called "regulators" really are, The WSJ points to the Senate investigation on Washington Mutual:
WASHINGTON–Officials at the failed banking operations of Washington Mutual Inc. securitized substantial volumes of risky, fraudulent loans in the run-up to the financial meltdown despite repeated internal warning signs, according to a Senate probe.
Got that? Not just dangerous loans, fraudulent loans.
The subcommittee has obtained documents showing that "at a critical point Washington Mutual included loans in its securities because they were likely to suffer a high rate of default, and they failed to disclose that to the buyers," Sen. Levin said. "They also allowed loans that had been identified as fraudulent to be sold to buyers, again without alerting buyers when the fraud was discovered."
Got that again? The bank intentionally included defective loans in securities it sold to investors.
Yeah it took them three years Karl, they were hoping that people would forget about it. Why you ask? Because the WHOLE god damned financial system and every bank that plays in it, books look just like Washington Mutual's.
Now that's a lot of WHITE COLLAR crime Karl, and we probably don't have enough federal penal institutions to house them all.
So Congress with all of their brilliance prefers to sweep it under the rug, because god forbid that they should look to deeply and actually have to prosecute their own meal tickets. It's just not the political way. Lobbyists of the banks are forking over BIG BUCKS to make sure that there is NO finacial reform to speak of, so that business goes on as usual.
In a pair of articles that outline exactly how outrageously corrupt our government's so-called "regulators" really are, The WSJ points to the Senate investigation on Washington Mutual:
WASHINGTON–Officials at the failed banking operations of Washington Mutual Inc. securitized substantial volumes of risky, fraudulent loans in the run-up to the financial meltdown despite repeated internal warning signs, according to a Senate probe.
Got that? Not just dangerous loans, fraudulent loans.
The subcommittee has obtained documents showing that "at a critical point Washington Mutual included loans in its securities because they were likely to suffer a high rate of default, and they failed to disclose that to the buyers," Sen. Levin said. "They also allowed loans that had been identified as fraudulent to be sold to buyers, again without alerting buyers when the fraud was discovered."
Got that again? The bank intentionally included defective loans in securities it sold to investors.
Monday, April 12, 2010
Manufacturing giants aim to protect industrial banks
http://thehill.com/business-a-lobbying/91793-manufacturing-giants-aim-to-protect-industrial-banks
The Corporate Lobbyists are going to ensure the death of this country
Business giants General Electric, Toyota and dozens of others are on the verge of a major victory over President Barack Obama’s push to rein in their financial arms.
As part of its overhaul of the financial system, the Obama administration originally wanted to close what it considered a regulatory loophole. Federal laws do not typically allow banking and commerce to mix, with a notable exception: roughly 40 industrial loan companies (ILCs) chartered in a handful of states, primarily Utah and Nevada.
The administration’s proposal prompted a multimillion-dollar lobbying effort by some of the biggest names in corporate America, which feared new regulations would hurt their bottom line and choke off credit to their customers.
And while few critics, including the Cambridge center, allege the companies spurred the financial crisis, some firms have required federal intervention.
GMAC Bank, once an industrial loan company, faced mounting losses and in November 2008 moved to transform itself into a bank holding company in order to receive a bailout, according to the Congressional Oversight Panel over the $700 billion financial rescue package. Regulators approved the request in December 2008, and GMAC got billions of dollars in aid.
CIT Group, which had roughly $9 billion in assets in its loan company, made a similar conversion in 2008 and benefited from federal bailout efforts.
In mid-March, Utah banking authorities took over Advanta Bank Corp., which had $1.5 billion in assets, after finding it was insolvent and was not able to raise sufficient capital. The FDIC took receivership of the bank.
The Corporate Lobbyists are going to ensure the death of this country
Business giants General Electric, Toyota and dozens of others are on the verge of a major victory over President Barack Obama’s push to rein in their financial arms.
As part of its overhaul of the financial system, the Obama administration originally wanted to close what it considered a regulatory loophole. Federal laws do not typically allow banking and commerce to mix, with a notable exception: roughly 40 industrial loan companies (ILCs) chartered in a handful of states, primarily Utah and Nevada.
The administration’s proposal prompted a multimillion-dollar lobbying effort by some of the biggest names in corporate America, which feared new regulations would hurt their bottom line and choke off credit to their customers.
And while few critics, including the Cambridge center, allege the companies spurred the financial crisis, some firms have required federal intervention.
GMAC Bank, once an industrial loan company, faced mounting losses and in November 2008 moved to transform itself into a bank holding company in order to receive a bailout, according to the Congressional Oversight Panel over the $700 billion financial rescue package. Regulators approved the request in December 2008, and GMAC got billions of dollars in aid.
CIT Group, which had roughly $9 billion in assets in its loan company, made a similar conversion in 2008 and benefited from federal bailout efforts.
In mid-March, Utah banking authorities took over Advanta Bank Corp., which had $1.5 billion in assets, after finding it was insolvent and was not able to raise sufficient capital. The FDIC took receivership of the bank.
Michigan college offers money back if grads don't get jobs
http://www.usatoday.com/money/economy/employment/2010-04-09-michigan-college-jobs_N.htm
Even as Michigan endures the nation's highest unemployment rate, there are jobs available in select fields for people with the right skills.
Among the "hot jobs" highlighted by one college are pharmacy technicians, call center specialists, computer numerical control machinists and quality inspectors. The average wage for those jobs typically ranges from $12 to $16 an hour.
The trick? Making sure people have the training and education to take advantage of them.
Lansing Community College is so convinced the jobs are out there that it's offering a money-back guarantee for students if they don't get an offer of full-time work in the state within a year of finishing one of the four programs
Even as Michigan endures the nation's highest unemployment rate, there are jobs available in select fields for people with the right skills.
Among the "hot jobs" highlighted by one college are pharmacy technicians, call center specialists, computer numerical control machinists and quality inspectors. The average wage for those jobs typically ranges from $12 to $16 an hour.
The trick? Making sure people have the training and education to take advantage of them.
Lansing Community College is so convinced the jobs are out there that it's offering a money-back guarantee for students if they don't get an offer of full-time work in the state within a year of finishing one of the four programs
Senate finds fraud in Washington Mutual mortgage lending
http://www.usatoday.com/money/industries/banking/2010-04-12-wamu-mortgage-fraud_N.htm
Now if you or I had committed the act of fraud, there would be no possibility of a decision for referral it just automatically happen.
Senate investigators say they found that the mortgage lending operations of Washington Mutual, the biggest U.S. bank ever to fail, were threaded through with fraud.
And the bank's own probes failed to stem the deceptive practices, the investigators say in a report on the 2008 failure of WaMu.
Chairman Carl Levin says the panel won't decide until after the hearings whether to make a formal referral to the Justice Department for possible criminal prosecution.
Now if you or I had committed the act of fraud, there would be no possibility of a decision for referral it just automatically happen.
Senate investigators say they found that the mortgage lending operations of Washington Mutual, the biggest U.S. bank ever to fail, were threaded through with fraud.
And the bank's own probes failed to stem the deceptive practices, the investigators say in a report on the 2008 failure of WaMu.
Chairman Carl Levin says the panel won't decide until after the hearings whether to make a formal referral to the Justice Department for possible criminal prosecution.
Sunday, April 11, 2010
Arizona foreclosure aid meeting a grim scene
http://www.azcentral.com/community/phoenix/articles/2010/04/09/20100409arizona-foreclosure-aid-plan.html
The setting was a lobby turned into a meeting room with rows of plastic chairs at the Carnegie Center next to the state Capitol. The occasion was a public meeting hosted Wednesday by the Arizona Housing Department to share and receive feedback on how it plans to spend $125 million in new federal funds to fight the foreclosure crisis.
Amid the numbers and bureaucratic terminology, the meeting provided a visceral glimpse of the wrenching downward spiral everyone involved in the foreclosure crisis feels and how this latest financial package is more triage than bailout.
Trailor recapped the grim trajectory. "We are on track for 50,000 foreclosures in the Valley this year," he said. "We are hoping we can use this $125 million to help 4,000 homeowners."
That the new federal aid would only help less than 10 percent of the households sent a new ripple through the crowd
One person asked how many lenders the Housing Department had been able to persuade to reduce borrowers' mortgage amounts through loan modifications.
Trailor and Givens did not have a number. Both said they were frustrated at how few lenders had made the modifications. They hoped more pressure from the federal government would help.
Why won't the lenders modify? Watch this and then you'll understand that it behooves them NOT to.
http://www.thinkbigworksmall.com/mypage/archive/1/32275
The setting was a lobby turned into a meeting room with rows of plastic chairs at the Carnegie Center next to the state Capitol. The occasion was a public meeting hosted Wednesday by the Arizona Housing Department to share and receive feedback on how it plans to spend $125 million in new federal funds to fight the foreclosure crisis.
Amid the numbers and bureaucratic terminology, the meeting provided a visceral glimpse of the wrenching downward spiral everyone involved in the foreclosure crisis feels and how this latest financial package is more triage than bailout.
Trailor recapped the grim trajectory. "We are on track for 50,000 foreclosures in the Valley this year," he said. "We are hoping we can use this $125 million to help 4,000 homeowners."
That the new federal aid would only help less than 10 percent of the households sent a new ripple through the crowd
One person asked how many lenders the Housing Department had been able to persuade to reduce borrowers' mortgage amounts through loan modifications.
Trailor and Givens did not have a number. Both said they were frustrated at how few lenders had made the modifications. They hoped more pressure from the federal government would help.
Why won't the lenders modify? Watch this and then you'll understand that it behooves them NOT to.
http://www.thinkbigworksmall.com/mypage/archive/1/32275
The Federal con job/w Dylan Ratigan
http://market-ticker.denninger.net/
What Congress refuses to understand or chooses not to
What Congress refuses to understand or chooses not to
Saturday, April 10, 2010
Checkers cashier stole $17,000 from register, police say
http://www.tampabay.com/news/publicsafety/crime/checkers-cashier-stole-17000-from-register-police-say/1086277
OK now I have to ask what did she do wrong?
Congress have given safe passage to 18 of the big banks to do this very same thing, except on a quarterly basis rather than a daily.
So what exactly did she do wrong that the banks aren't doing to?
A Checkers cashier pocketed $17,443 from the register during her nine months on the job, according to the Dade City Police Department.
Tierra T. Rooks, 21, was arrested Thursday and charged with scheme to defraud.
A police report said Rooks worked as a cashier at a Checkers restaurant at 12600 U.S. 301 from June until March. Rooks is accused of stealing the money by "manipulating the daily sales transaction reports to account for the shortage of missing funds," the report said.
Rooks, of 38401 Tuskegee Ave. in Dade City, is being held at the Pasco County jail in lieu of $50,000 bail.
OK now I have to ask what did she do wrong?
Congress have given safe passage to 18 of the big banks to do this very same thing, except on a quarterly basis rather than a daily.
So what exactly did she do wrong that the banks aren't doing to?
A Checkers cashier pocketed $17,443 from the register during her nine months on the job, according to the Dade City Police Department.
Tierra T. Rooks, 21, was arrested Thursday and charged with scheme to defraud.
A police report said Rooks worked as a cashier at a Checkers restaurant at 12600 U.S. 301 from June until March. Rooks is accused of stealing the money by "manipulating the daily sales transaction reports to account for the shortage of missing funds," the report said.
Rooks, of 38401 Tuskegee Ave. in Dade City, is being held at the Pasco County jail in lieu of $50,000 bail.
Congress Went to Denmark, You Got the Bill
http://www.cbsnews.com/stories/2010/01/25/cbsnews_investigates/main6140406.shtml
No the republicans weren't parting all by themselves the Dem's were doing it to.
This is why they actually call it a Political Party, because that's just what politics are, a big party financed on your dime.
Thanks to recently filed Congressional expense reports there's new light shed on the Copenhagen Climate Summit in Denmark and how much it cost taxpayers.
CBS News Investigative correspondent Sharyl Attkisson reports official filings and our own investigation show at least 106 people from the House and Senate attended - spouses, a doctor, a protocol expert and even a photographer.
Million Dollar Congressional Trip
Read the Congressional Expense Report
For 15 Democratic and 6 Republican Congressmen, food and rooms for two nights cost $4,406 tax dollars each. That's $2,200 a day - more than most Americans spend on their monthly mortgage payment.
CBS News asked members of Congress and staff about whether they're mindful that it's public tax dollars they're spending. Many said they had never even seen the bills or the expense reports.
Copenhagen Congressional Junket
Rep. Henry Waxman, D-Calif., is a key climate change player. He went to Copenhagen last year. Last week, we asked him about the $2,200-a-day bill for room and food.
"I can't believe that," Rep. Waxman said. "I can't believe it, but I don't know."
No the republicans weren't parting all by themselves the Dem's were doing it to.
This is why they actually call it a Political Party, because that's just what politics are, a big party financed on your dime.
Thanks to recently filed Congressional expense reports there's new light shed on the Copenhagen Climate Summit in Denmark and how much it cost taxpayers.
CBS News Investigative correspondent Sharyl Attkisson reports official filings and our own investigation show at least 106 people from the House and Senate attended - spouses, a doctor, a protocol expert and even a photographer.
Million Dollar Congressional Trip
Read the Congressional Expense Report
For 15 Democratic and 6 Republican Congressmen, food and rooms for two nights cost $4,406 tax dollars each. That's $2,200 a day - more than most Americans spend on their monthly mortgage payment.
CBS News asked members of Congress and staff about whether they're mindful that it's public tax dollars they're spending. Many said they had never even seen the bills or the expense reports.
Copenhagen Congressional Junket
Rep. Henry Waxman, D-Calif., is a key climate change player. He went to Copenhagen last year. Last week, we asked him about the $2,200-a-day bill for room and food.
"I can't believe that," Rep. Waxman said. "I can't believe it, but I don't know."
Junior Florida Republican Party staffer had $1.3 million charged to party credit card
http://www.tampabay.com/news/politics/stateroundup/junior-florida-republican-party-staffer-had-13-million-charged-to-party/1086335
She was a 25-year-old junior staffer when the Florida Republican Party gave her an American Express card.
Over the next 2½ years, nearly $1.3 million in charges wound up on Melanie Phister's AmEx — $40,000 at a London hotel, and nearly $20,000 in plane tickets for indicted former House Speaker Ray Sansom, his wife and kids, for starters. Statements show thousands spent on jewelry, sporting goods and in one case $15,000 for what's listed as a month-long stay at a posh Miami Beach hotel, but which the party says was a forfeited deposit.
The credit card records, obtained by the St. Petersburg Times and Miami Herald, offer the latest behind-the-scenes look at extravagant and free-wheeling spending by the party touting fiscal restraint.
She was a 25-year-old junior staffer when the Florida Republican Party gave her an American Express card.
Over the next 2½ years, nearly $1.3 million in charges wound up on Melanie Phister's AmEx — $40,000 at a London hotel, and nearly $20,000 in plane tickets for indicted former House Speaker Ray Sansom, his wife and kids, for starters. Statements show thousands spent on jewelry, sporting goods and in one case $15,000 for what's listed as a month-long stay at a posh Miami Beach hotel, but which the party says was a forfeited deposit.
The credit card records, obtained by the St. Petersburg Times and Miami Herald, offer the latest behind-the-scenes look at extravagant and free-wheeling spending by the party touting fiscal restraint.
Ashtabula County: Judge tells residents to "Arm themselves"
http://www.wkyc.com/news/local/news_article.aspx?storyid=133951&catid=3
This is how bad it's going to get and exactly what we'll have to deal with.
In the ongoing financial crisis in Ashtabula County, the Sheriff's Department has been cut from 112 to 49 deputies. With deputies assigned to transport prisoners, serve warrants and other duties, only one patrol car is assigned to patrol the entire county of 720 square miles.
"I did the best with what they (the county commissioners) gave me. If it wasn't enough, don't blame me, don't blame this department," said Sheriff Billy Johnson.
Johnson said he is suing the commissioners to get a determination of whether he should use his limited budget to carry out obligations defined by law or put more patrol cars on the streets.
This is how bad it's going to get and exactly what we'll have to deal with.
In the ongoing financial crisis in Ashtabula County, the Sheriff's Department has been cut from 112 to 49 deputies. With deputies assigned to transport prisoners, serve warrants and other duties, only one patrol car is assigned to patrol the entire county of 720 square miles.
"I did the best with what they (the county commissioners) gave me. If it wasn't enough, don't blame me, don't blame this department," said Sheriff Billy Johnson.
Johnson said he is suing the commissioners to get a determination of whether he should use his limited budget to carry out obligations defined by law or put more patrol cars on the streets.
Friday, April 9, 2010
Cash Crunch Will Force Governments to Do Less
http://finance.yahoo.com/banking-budgeting/article/109281/cash-crunch-will-force-governments-to-do-less?sec=topStories&pos=3&asset=&ccode=
The song "We've only just begun" comes to mind
Trillions of dollars have been spent trying to ease this situation only to finally realize in the end that the only common sense thing that we can do it to cut spending on every level.
The wisdom of the wise and their keynesian theory has led us to the brink of destruction with nothing left to hold onto but our sanity.
In Los Angeles this week, the mayor proposed closing most city offices for two days a week. In Colorado Springs, private donations and bake sales are being used to keep parks and pools open. In Maryland, the state is considering furloughing state workers for the second year in a row.
Welcome to the era of government doing less for its citizens. The wave is beginning at the state and local level, where it's rolling ahead in large measure because of a fiscal crunch brought on by the deep recession.
But there's little reason to think it will stop with states and cities, and ample reason to think it will continue even after the recession fades. The federal government is headed in the same direction, as Federal Reserve Chairman Ben Bernanke warned on Wednesday.
In a speech in Dallas, Mr. Bernanke bluntly noted that two giant fiscal waves were headed for the federal government, one atop the other. First comes the big deficit caused by the economic downturn. That will be followed immediately by ballooning costs for baby-boom retirees drawing Social Security and Medicare funds. "To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above," Mr. Bernanke said
The song "We've only just begun" comes to mind
Trillions of dollars have been spent trying to ease this situation only to finally realize in the end that the only common sense thing that we can do it to cut spending on every level.
The wisdom of the wise and their keynesian theory has led us to the brink of destruction with nothing left to hold onto but our sanity.
In Los Angeles this week, the mayor proposed closing most city offices for two days a week. In Colorado Springs, private donations and bake sales are being used to keep parks and pools open. In Maryland, the state is considering furloughing state workers for the second year in a row.
Welcome to the era of government doing less for its citizens. The wave is beginning at the state and local level, where it's rolling ahead in large measure because of a fiscal crunch brought on by the deep recession.
But there's little reason to think it will stop with states and cities, and ample reason to think it will continue even after the recession fades. The federal government is headed in the same direction, as Federal Reserve Chairman Ben Bernanke warned on Wednesday.
In a speech in Dallas, Mr. Bernanke bluntly noted that two giant fiscal waves were headed for the federal government, one atop the other. First comes the big deficit caused by the economic downturn. That will be followed immediately by ballooning costs for baby-boom retirees drawing Social Security and Medicare funds. "To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above," Mr. Bernanke said
It's Ponzimonium In The Gold Market
http://www.rense.com/general90/ponz.htm
Is there anything that the big banks have touched that isn't corrupt any more?
Inquiring minds really do want to know our countries lives as well as our own
are on the chopping block because of their corruption.
Nothing of real value has not been tainted by their hand it would seem.
We've had a string of amazing revelations recently regarding the world's precious metals market. This is important stuff for anyone (like me) who holds gold as a means to avoid currency turmoil and counterparty risk.
This news has been actively suppressed in the mainstream media.
The Commodity Futures Trading Commission, a U.S. government regulatory agency, held hearings in Washington D.C. in late March regarding position limits in the futures market.
People involved in the markets have known/suspected for years that they have been manipulated by certain large entities, notably JP Morgan and Goldman Sachs.
Analysts like silver maven, Ted Butler, hedge fund giant, Eric Sprott, and the Gold Anti-Trust Action Committee (GATA) have been collecting evidence of this manipulation for years.
These hearings were supposed to be a non-event. However, despite the media lock-down, the word is getting out.
The CFTC, like the SEC, is a conflicted agency. Some people, notably Chairman Gary Gensler and Commissioner Bart Chilton, seem to want to clean up the sleaze, fraud and corruption.
The CFTC even invited GATA's Bill Murphy and Adrian Douglas to make statements. Would you be surprised to learn that the cameras had a "technical malfunction" during Bill Murphy's statement, which magically righted itself immediately after he finished?
Is there anything that the big banks have touched that isn't corrupt any more?
Inquiring minds really do want to know our countries lives as well as our own
are on the chopping block because of their corruption.
Nothing of real value has not been tainted by their hand it would seem.
We've had a string of amazing revelations recently regarding the world's precious metals market. This is important stuff for anyone (like me) who holds gold as a means to avoid currency turmoil and counterparty risk.
This news has been actively suppressed in the mainstream media.
The Commodity Futures Trading Commission, a U.S. government regulatory agency, held hearings in Washington D.C. in late March regarding position limits in the futures market.
People involved in the markets have known/suspected for years that they have been manipulated by certain large entities, notably JP Morgan and Goldman Sachs.
Analysts like silver maven, Ted Butler, hedge fund giant, Eric Sprott, and the Gold Anti-Trust Action Committee (GATA) have been collecting evidence of this manipulation for years.
These hearings were supposed to be a non-event. However, despite the media lock-down, the word is getting out.
The CFTC, like the SEC, is a conflicted agency. Some people, notably Chairman Gary Gensler and Commissioner Bart Chilton, seem to want to clean up the sleaze, fraud and corruption.
The CFTC even invited GATA's Bill Murphy and Adrian Douglas to make statements. Would you be surprised to learn that the cameras had a "technical malfunction" during Bill Murphy's statement, which magically righted itself immediately after he finished?
Congress endorses FRAUD?
http://market-ticker.denninger.net/archives/2171-Now-Its-Front-Page-Banks-Lie.html
The question is: Did Congress realize just what it was endorsing and if it did just what does that mean.
Well gee, finally someone in the "mainstream media" writes about it?
A group of 18 banks—which includes Goldman Sachs Group Inc., Morgan Stanley, J.P. Morgan Chase & Co., Bank of America Corp. and Citigroup Inc.—understated the debt levels used to fund securities trades by lowering them an average of 42% at the end of each of the past five quarterly periods, the data show. The banks, which publicly release debt data each quarter, then boosted the debt levels in the middle of successive quarters.
The article points out that this is legal. Is it?
Isn't fraud all about intent to mislead?
Since then, banks have become more sensitive about showing high levels of debt and risk, worried that their stocks and credit ratings could be punished.
That practice, while legal, can give investors a skewed impression of the level of risk that financial firms are taking the vast majority of the time.
So let's see if I get this right:
•Since The Federal Government made lying about balance sheet assets legal, banks have done a lot of that. Indeed, none other than John Dugan Office of the Comptroller of the Currency (OCC) testified yesterday that the marks being taken are unrealistic - that is, banks are overstating the value of their assets, when under questioning before the FCIC he said out loud what I've been saying for over a year: we know banks are lying because when they fail and the FDIC closes them we discover that their so-called "assets" are worth as little as half of what they've been claiming just a few weeks or months before.
•On average these institutions are taking 42% more risk to produce the "returns" they're posting at each quarter's end. Put a different way the firm's operating results are enriched on paper by 40% over what they would be in terms of common accounting ratios were the bank NOT to play these games. Or, if you prefer, were the bank not to use those schemes their results would probably be about 40% poorer - and indeed, a reported "profit" would likely be an actual operating loss.
The question is: Did Congress realize just what it was endorsing and if it did just what does that mean.
Well gee, finally someone in the "mainstream media" writes about it?
A group of 18 banks—which includes Goldman Sachs Group Inc., Morgan Stanley, J.P. Morgan Chase & Co., Bank of America Corp. and Citigroup Inc.—understated the debt levels used to fund securities trades by lowering them an average of 42% at the end of each of the past five quarterly periods, the data show. The banks, which publicly release debt data each quarter, then boosted the debt levels in the middle of successive quarters.
The article points out that this is legal. Is it?
Isn't fraud all about intent to mislead?
Since then, banks have become more sensitive about showing high levels of debt and risk, worried that their stocks and credit ratings could be punished.
That practice, while legal, can give investors a skewed impression of the level of risk that financial firms are taking the vast majority of the time.
So let's see if I get this right:
•Since The Federal Government made lying about balance sheet assets legal, banks have done a lot of that. Indeed, none other than John Dugan Office of the Comptroller of the Currency (OCC) testified yesterday that the marks being taken are unrealistic - that is, banks are overstating the value of their assets, when under questioning before the FCIC he said out loud what I've been saying for over a year: we know banks are lying because when they fail and the FDIC closes them we discover that their so-called "assets" are worth as little as half of what they've been claiming just a few weeks or months before.
•On average these institutions are taking 42% more risk to produce the "returns" they're posting at each quarter's end. Put a different way the firm's operating results are enriched on paper by 40% over what they would be in terms of common accounting ratios were the bank NOT to play these games. Or, if you prefer, were the bank not to use those schemes their results would probably be about 40% poorer - and indeed, a reported "profit" would likely be an actual operating loss.
Former bank CEO sues FDIC
http://www.chicagotribune.com/business/ct-biz-0325-fdic-suit--20100324,0,434460.story?obref=obnetwork
A little more double standard.
Why wasn't his contract fulfilled? Everyone elses that were players in the financial game have been honored.
The former chief executive of failed Community Bank of Lemont is suing the Federal Deposit Insurance Corp., saying he's owed about $215,000 under an employment contract he had at the former FBOP Corp. unit.
The FDIC became receiver for the Lemont lender on Oct. 30, when regulators seized the $82 million-asset institution, as well as Chicago-based Park National Bank and seven other U.S. banks owned by Oak Park-based FBOP.
Former CEO Richard Meade said in a breach-of-contract lawsuit filed in a U.S. District Court in Chicago last month that he and the bank entered into a change-in-control agreement in April 2006 that would pay him certain compensation if the bank were sold, merged or had any other "change in control."
Meade contends that a change in control occurred the day that the FDIC seized Lemont.
He said he's owed at least $215,000 for unpaid salary, bonus and auto and health insurance payments under his contract. He said he's also owed 120 hours of unpaid vacation time, totaling $8,430.
On Dec. 30, the FDIC rejected Meade's claim, the lawsuit said.
A little more double standard.
Why wasn't his contract fulfilled? Everyone elses that were players in the financial game have been honored.
The former chief executive of failed Community Bank of Lemont is suing the Federal Deposit Insurance Corp., saying he's owed about $215,000 under an employment contract he had at the former FBOP Corp. unit.
The FDIC became receiver for the Lemont lender on Oct. 30, when regulators seized the $82 million-asset institution, as well as Chicago-based Park National Bank and seven other U.S. banks owned by Oak Park-based FBOP.
Former CEO Richard Meade said in a breach-of-contract lawsuit filed in a U.S. District Court in Chicago last month that he and the bank entered into a change-in-control agreement in April 2006 that would pay him certain compensation if the bank were sold, merged or had any other "change in control."
Meade contends that a change in control occurred the day that the FDIC seized Lemont.
He said he's owed at least $215,000 for unpaid salary, bonus and auto and health insurance payments under his contract. He said he's also owed 120 hours of unpaid vacation time, totaling $8,430.
On Dec. 30, the FDIC rejected Meade's claim, the lawsuit said.
Netanyahu ducks U.S. nuclear summit, fearing censure
http://www.reuters.com/article/idUSTRE6375QC20100409
Why the double standard? We invaded Iraq for evasion of this very same matter.
As a matter of fact the invasion was done on suspicion only since NO weapons of Mass Destruction were ever found.
Israeli Prime Minister Benjamin Netanyahu has withdrawn from a nuclear security summit in Washington next week, fearing Muslim delegates will demand Israel give up its assumed atomic arsenal.
By staying outside the 1970 Non-Proliferation Treaty (NPT), Israel has not had to forswear nuclear arms nor admit international inspectors to its Dimona reactor, which experts believe has produced plutonium for between 80 and 200 warheads.
Why the double standard? We invaded Iraq for evasion of this very same matter.
As a matter of fact the invasion was done on suspicion only since NO weapons of Mass Destruction were ever found.
Israeli Prime Minister Benjamin Netanyahu has withdrawn from a nuclear security summit in Washington next week, fearing Muslim delegates will demand Israel give up its assumed atomic arsenal.
By staying outside the 1970 Non-Proliferation Treaty (NPT), Israel has not had to forswear nuclear arms nor admit international inspectors to its Dimona reactor, which experts believe has produced plutonium for between 80 and 200 warheads.
Major U.S. banks masked risk levels: report
http://finance.yahoo.com/news/Major-US-banks-masked-risk-rb-3309707061.html?x=0&sec=topStories&pos=7&asset=&ccode=
Oh look it wasn't just Leman, everyone was doing it.
It's called fraud and Timmy and Ben had no idea..........right?
Makes you wonder what else Tim and Ben had no idea about either, doesn't it.
Major U.S. banks temporarily lowered their debt levels just before reporting in the past five quarters, making it appear their balance sheets were less risky, the Wall Street Journal said, citing data from the Federal Reserve Bank of New York.
The paper said on Friday 18 banks, including Goldman Sachs Group (NYSE:GS - News), Morgan Stanley (NYSE:MS - News), J.P. Morgan Chase (NYSE:JPM - News) Bank of America (NYSE:BAC - News) and Citigroup (NYSE:C - News), understated the debt levels used to fund securities trades by lowering them an average of 42 percent at the end of each period.
The banks had increased their debt in the middle of successive quarters, it said.
Citi, Bank of America, Goldman Sachs, JPMorgan Chase and Morgan Stanley were not immediately available for comment when contacted by Reuters outside regular U.S. business hours
Oh look it wasn't just Leman, everyone was doing it.
It's called fraud and Timmy and Ben had no idea..........right?
Makes you wonder what else Tim and Ben had no idea about either, doesn't it.
Major U.S. banks temporarily lowered their debt levels just before reporting in the past five quarters, making it appear their balance sheets were less risky, the Wall Street Journal said, citing data from the Federal Reserve Bank of New York.
The paper said on Friday 18 banks, including Goldman Sachs Group (NYSE:GS - News), Morgan Stanley (NYSE:MS - News), J.P. Morgan Chase (NYSE:JPM - News) Bank of America (NYSE:BAC - News) and Citigroup (NYSE:C - News), understated the debt levels used to fund securities trades by lowering them an average of 42 percent at the end of each period.
The banks had increased their debt in the middle of successive quarters, it said.
Citi, Bank of America, Goldman Sachs, JPMorgan Chase and Morgan Stanley were not immediately available for comment when contacted by Reuters outside regular U.S. business hours
Thursday, April 8, 2010
Arizona sees surge in DUIs tied to medicine
http://www.azcentral.com/news/articles/2010/04/08/20100408arizona-dui-medicine-cases.html
The driver was wearing his tennis shoes on the wrong feet, and he could lift his arms only halfway to his chocolate-covered face when officers stopped him at a Tucson fast-food restaurant.
He seemed impaired. Yet there was no alcohol in the 44-year-old's system.
It would take a toxicology test to learn that a cocktail of five different drugs was coursing through the driver, who was later charged with DUI.
In the Tucson case, the stop for erratic driving eventually revealed that the motorist was under the influence of anti-anxiety drugs and anti-depressants
.
The number of drug-related DUI cases handled by the Arizona Department of Public Safety rose from about 4,400 in 1999 to more than 14,700 last year, an increase of more than 230 percent. The state's population in that period rose about 38 percent.
The driver was wearing his tennis shoes on the wrong feet, and he could lift his arms only halfway to his chocolate-covered face when officers stopped him at a Tucson fast-food restaurant.
He seemed impaired. Yet there was no alcohol in the 44-year-old's system.
It would take a toxicology test to learn that a cocktail of five different drugs was coursing through the driver, who was later charged with DUI.
In the Tucson case, the stop for erratic driving eventually revealed that the motorist was under the influence of anti-anxiety drugs and anti-depressants
.
The number of drug-related DUI cases handled by the Arizona Department of Public Safety rose from about 4,400 in 1999 to more than 14,700 last year, an increase of more than 230 percent. The state's population in that period rose about 38 percent.
Brewer removes beer coolers, spurs walkout
http://www.azcentral.com/news/articles/2010/04/08/20100408denmark-beer0408.html
And you only thought you had problems lol.
Whats the world coming to if you can't keep a cooler on the job?
Scores of Carlsberg workers walked off their jobs in protest Thursday after the Danish brewer tightened laid-back rules on workplace drinking and removed beer coolers from work sites, a company spokesman said.
The warehouse and production workers in Denmark are rebelling against the company's new alcohol policy, which allows them to drink beer only during lunch hours in the canteen. Previously, they could help themselves to beer throughout the day, from coolers placed around the work sites.
The only restriction was "that you could not be drunk at work. It was up to each and everyone to be responsible," company spokesman Jens Bekke said.
And you only thought you had problems lol.
Whats the world coming to if you can't keep a cooler on the job?
Scores of Carlsberg workers walked off their jobs in protest Thursday after the Danish brewer tightened laid-back rules on workplace drinking and removed beer coolers from work sites, a company spokesman said.
The warehouse and production workers in Denmark are rebelling against the company's new alcohol policy, which allows them to drink beer only during lunch hours in the canteen. Previously, they could help themselves to beer throughout the day, from coolers placed around the work sites.
The only restriction was "that you could not be drunk at work. It was up to each and everyone to be responsible," company spokesman Jens Bekke said.
Court says it can't force governor to pay unions
http://seattletimes.nwsource.com/html/localnews/2011562200_scow09.html
Now there's a precedent for you. Common sense for the good of the cause says it needs to be upheld to and the practice applied throughout the states.
In Thursday's 5-4 decision, the court said its power to order an executive's actions couldn't be unleashed on the governor's budgeting decisions, since those choices involve political and policy judgments reserved for the elected official.
But even if the court had such power, the majority of justices said they wouldn't have used it in this case, citing the uneven effect it could have in driving state spending away from other programs.
"The court may refuse to grant relief where private rights would be unwisely advanced at the expense of public interests," Justice Jim Johnson wrote for the majority. "The recent severe economic difficulties faced by our state present circumstances dictating such judicial restraint."
In a lengthy dissent, Chief Justice Barbara Madsen said the majority not only misread the law but clearly overstepped the boundaries separating state government's three branches.
Now there's a precedent for you. Common sense for the good of the cause says it needs to be upheld to and the practice applied throughout the states.
In Thursday's 5-4 decision, the court said its power to order an executive's actions couldn't be unleashed on the governor's budgeting decisions, since those choices involve political and policy judgments reserved for the elected official.
But even if the court had such power, the majority of justices said they wouldn't have used it in this case, citing the uneven effect it could have in driving state spending away from other programs.
"The court may refuse to grant relief where private rights would be unwisely advanced at the expense of public interests," Justice Jim Johnson wrote for the majority. "The recent severe economic difficulties faced by our state present circumstances dictating such judicial restraint."
In a lengthy dissent, Chief Justice Barbara Madsen said the majority not only misread the law but clearly overstepped the boundaries separating state government's three branches.
Too Green too Soon?
http://www.dailyfinance.com/story/too-green-too-soon-renewable-power-may-destablize-electrical-g/19426714/
Well Ollie, heres another fine mess you've gotten us into.
The ineptitude of the elite seems never to run dry.
Renewable Power May Destabilize Electrical Grid
Boy, that was fast. Only five years into the world's renewable energy push, many utility companies are so concerned about grid instability that they're saying they can't accept any more electricity from intermittent sources of power. Translation: Solar power only runs in the day time and can't re relied on for so called "baseload" capacity. Wind power primarily produces current at night and, likewise, can't be relied upon for baseload capacity. Geothermal, meanwhile, is perfect for providing baseload. But geothermal projects take an excruciatingly long time to build out. And then there have been the recent spate of earthquake scares around geothermal sites.
The upshot: Utilities such as Hawaiian Electric in President Obama's home state are voicing concerns about plans to integrate more solar and wind power into the grid until they develop methods to more effectively absorb intermittent sources of power without destabilizing the whole shebang. In Europe, Czech utility companies are concerned that "feed-in tariffs," which require power companies to repurchase all home- and business-generated renewable power at elevated rates, might wreak havoc on the Central European grid.
This growing push-back from utilities could prove to be shock to energy project developers, lawmakers and homeowners
See full article from DailyFinance: http://srph.it/dAoxAj
Well Ollie, heres another fine mess you've gotten us into.
The ineptitude of the elite seems never to run dry.
Renewable Power May Destabilize Electrical Grid
Boy, that was fast. Only five years into the world's renewable energy push, many utility companies are so concerned about grid instability that they're saying they can't accept any more electricity from intermittent sources of power. Translation: Solar power only runs in the day time and can't re relied on for so called "baseload" capacity. Wind power primarily produces current at night and, likewise, can't be relied upon for baseload capacity. Geothermal, meanwhile, is perfect for providing baseload. But geothermal projects take an excruciatingly long time to build out. And then there have been the recent spate of earthquake scares around geothermal sites.
The upshot: Utilities such as Hawaiian Electric in President Obama's home state are voicing concerns about plans to integrate more solar and wind power into the grid until they develop methods to more effectively absorb intermittent sources of power without destabilizing the whole shebang. In Europe, Czech utility companies are concerned that "feed-in tariffs," which require power companies to repurchase all home- and business-generated renewable power at elevated rates, might wreak havoc on the Central European grid.
This growing push-back from utilities could prove to be shock to energy project developers, lawmakers and homeowners
See full article from DailyFinance: http://srph.it/dAoxAj
Only in America
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/7564598/Fed-boss-Greenspan-says-no-one-saw-the-crisis-coming.-Really.html
Only in America. Only in America would it be possible to spawn a financial crisis so devastating that it would collapse the entire world economy.
Only in America could the man responsible for interest rates and banking regulation at the time, Alan Greenspan, incredulously insist, as he has again in testimony to the Financial Crisis Commission, that he had very little to do with it.
And only in America could you imagine the story of a one-eyed neurology intern with undiagnosed Asperger's Syndrome (no not Gordon Brown) who ended up making a fortune by applying the principles of "value investing" to subprime mortgage lending. Greenspan says no one saw it coming. Well, this man did.
Everyone has heard of Warren Buffett, the modern day master of "value investing", and most will recognise the name of John Paulson, the hedge fund manager who famously made billions riding the credit crunch storm.
But not many will know of Dr Mike Burry, a one time neurologist who according to a new book* by the former bond salesman Michael Lewis, predicted the crisis almost exactly and persuaded Wall Street to create the instruments that would allow him to capitalise on it.
Only in America. Only in America would it be possible to spawn a financial crisis so devastating that it would collapse the entire world economy.
Only in America could the man responsible for interest rates and banking regulation at the time, Alan Greenspan, incredulously insist, as he has again in testimony to the Financial Crisis Commission, that he had very little to do with it.
And only in America could you imagine the story of a one-eyed neurology intern with undiagnosed Asperger's Syndrome (no not Gordon Brown) who ended up making a fortune by applying the principles of "value investing" to subprime mortgage lending. Greenspan says no one saw it coming. Well, this man did.
Everyone has heard of Warren Buffett, the modern day master of "value investing", and most will recognise the name of John Paulson, the hedge fund manager who famously made billions riding the credit crunch storm.
But not many will know of Dr Mike Burry, a one time neurologist who according to a new book* by the former bond salesman Michael Lewis, predicted the crisis almost exactly and persuaded Wall Street to create the instruments that would allow him to capitalise on it.
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