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Posts Tagged ‘Bailouts

The New Stealth Bailout Of Bank Of America

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Bank of America just settled for about $.01 on the dollar.

Joe Weisenthal | Jan. 4, 2011    BusinessInsider

The news that Bank of America had settled its putback exposure with the GSEs sent the stock surging 7% yesterday.That kind of move has lots of folks screaming bailout. As Barry Ritholtz and Colin Barr at Fortune point out, Bank of America just settled for about $.01 on the dollar. 

Says Chris Whalen of Institutional Risk Analytics: “This looks to me like a gift from Tim Geithner… there’s politics all over this.”

This is almost certainly true, but also not shocking at all, given the potential ramifications of any serious hit to the banks‘ balance sheets.

Of course, this isn’t the end of the story, and Bank of America still has its massive exposure to non-agency MBS holders, including PIMCO, the New York Fed, and the Monolines, like MBIA.

Click here for a guide to Bank of America’s possible exposure >

This crisis is all about fraud

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Truth is where you find it

November 1, 2010

You may think that a nurse without an academic degree in economics would not be a good source of information about the ticking Debt Bomb that Wall Street lobbed into world financial markets in the last decade.

If you thought that you’d be wrong. Lisa Epstein offers what may be the clearest, to-the-point explanation of the astonishingly long chain of fraud behind the so called “mortgage-backed security” crisis I’ve heard.

Following her is Professor William Black who backs up her common sense analysis and points out that there have been more than one million cases of mortgage fraud per year- but no convictions.

Remember, while the Fed may have taken this “bad paper” off the books of a few banks, it’s done nothing for the thousands of pension plans, colleges, foundations, local government accounts and other funds that were sold this garbage.

This stuff was sold as AAA paper and was sold by the trillions. It’s everywhere.
For more Banking malfeasance videos, click here

Obama’s phony banking “reform”

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The Elite at the hub of our financial crisis have established themselves in positions of preeminent wealth and power without actually contributing anything useful to America’s economy.  They make and do nothing,  just taking bites out of what others have produced. Since they have so little stake in our society, it is not surprising that their corrupt system built the bubble and arranged to profit when it collapsed.

The revolving door between Wall Street Banksters and the government meant to regulate them means no real change is likely without a sustained outcry of the American people.

Photo by Rich Tatum

Obama’s phony banking “reform”

Barry Grey 27 April 2010

Debate on the Senate version of the Obama administration’s bank regulatory overhaul is expected to begin shortly. The House of Representatives passed its banking bill last December.

Neither bill does anything to curb the power of the banks or limit their parasitic and socially destructive activities. What the media is calling the “most sweeping overhaul” of the banking system since the Great Depression in reality sanctions the ever greater monopolization of the financial system by a handful of Wall Street giants, imposes no limits on executive pay, and allows the banks and hedge funds to continue gambling on exotic and largely unregulated securities such as collateralized debt obligations and credit default swaps.

The so-called bank “reform” is an exercise in mass deception—an attempt to placate popular hostility to the banks and provide the government with political cover while it continues to do the bidding of Wall Street.

The bills have been drawn up in the closest consultation with bankers and bank lobbyists. This collusion has been widely reported in the press and presented as a perfectly normal and acceptable fact of political life. The front-page lead article in Monday’s Wall Street Journal describes the intensive lobbying being carried out by billionaire investor Warren Buffet to alter the Senate bill’s provisions on derivatives.

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Banksters worry Congress will ask the right questions

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Today’s commentary by David Reilly at Bloomberg.com has an alarming (if not surprising) header: Secret Banking Cabal Emerges From AIG Shadows. Now it’s not just conspiracy-nuts or fringe Congressmen who are wondering why and how so much power-without-oversight has been given to the NY Fed et al,  just what they have been doing with it, and how so many profited from the meltdown of AIG.

Reilly notes:   “…when it became clear information would be disclosed, New York Fed legal group staffer James Bergin e-mailed colleagues saying: “I have to think this train is probably going to leave the station soon and we need to focus our efforts on explaining the story as best we can. There were too many people involved in the deals — too many counterparties, too many lawyers and advisors, too many people from AIG — to keep a determined Congress from the information.”

Think of the enormity of that statement. A staffer at a body with little public accountability and that exists to serve bankers is lamenting the inability to keep Congress in the dark.”

Oh yes. Think!

Written by laudyms

January 29, 2010 at 3:49 pm

Roger Baker : Is America Already a Failed State?

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No public trust for a dysfunctional system

The main obstacle to progress is a corporate dominated political system that resists favoring broad long range public benefits over the short term profits of the few.

By Roger Baker / The Rag Blog / January 23, 2010

It is getting harder to argue that America is not already a failed state. One important reason is the fact that the public, to an alarming degree, doesn’t trust the government anymore. When the public is suffering economically and stops trusting their government to bring relief, nothing the government does is likely to bring much contentment. This is especially true where it is unlikely that the underlying problems causing the pain will get much better soon.

Broadly speaking, top political leaders including Obama and Congress are not being very honest about the poor prospects for economic recovery. The resulting political backlash is a big part of the explanation for the Democratic Party defeat in the Massachusetts senate election. Governmental distrust is now widespread, as Adam Nagourney acknowledges in The New York Times.

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Wall Street Will Be Back for More

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Jan 10, 2010      TruthDig

By Chris Hedges

Corporations, which control the levers of power in government and finance, promote and empower the psychologically maimed. Those who lack the capacity for empathy and who embrace the goals of the corporation—personal power and wealth—as the highest good succeed. Those who possess moral autonomy and individuality do not. And these corporate heads, isolated from the mass of Americans by insular corporate structures and vast personal fortunes, are no more attuned to the misery, rage and pain they cause than were the courtiers and perfumed fops who populated Versailles on the eve of the French Revolution. They play their games of high finance as if the rest of us do not exist. And it is a game that will kill us.

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An Introspective Look at the Future of America: Systemic Fraud, Corruption and Financial Instability

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by Craig Harris            

Global Research, Jan. 2, 2010

As we close out 2009 and look forward into 2010 and beyond, this has been a year of near financial catastrophe and monumental change, none of which benefited America or ordinary Americans. Late in 2008 and throughout 2009, events have happened in the US which would have been labeled unfathomable just a few short years ago, and yet already these monumental changes are expected to be filed into the memory hole and Americans are expected to believe nothing has changed.

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Wondering why we’re going to war in Yemen?

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Yemeni refugees


I recommend the following articles by Scott Creighton:

Billions in Recent Yememi Investments and The Underwear Bomber’s Daddy. It’s a Small World Ain’t It? 12/30/09

Operation Scorched Earth and the Underwear Bomber 01/01/10

Dancing With Snakes 01/02/10
by Scott Creighton

“Ruling Yemen is difficult,” he said wearily. “I always say, it is like dancing with snakes.” New York Times 2008

No kidding.  Over the past week I have been investigating our new terror target, the people of the nation of Yemen.  Let’s not fool ourselves anymore, we aren’t going there to stop “al Qaeda” from lighting up more panty sparklers; we are going there to prop-up a failing corrupt regime who just happens to be “pro-Western”, “pro-business”, and deeply indebted to the World Bank and the IMF.  The Yemeni government is in deep trouble from all sides and they need to be bailed-out.  With all the money and resources at stake, the debauched Yemeni government is just “too big to fail”.  At least, that’s how Washington sees it.

Our leaders in congress and the White House are in the process of trying to convince us that we have to go to the rescue of one of the most unethical and immoral dictators in the modern world, without ever mentioning his name; a man who was probably responsible for at least two violent coups in his country, who has been “president” of Yemen (North Yemen since 1978 and then the unified Yemen (north and south) since 1990) for over 30 years, and who has richly rewarded himself and his family at the cost of the dirt poor people of Yemen.  That is who President Obama  is determined to support in Yemen; a man who makes Saddam Hussein look like the Dalai Lama.

We are going to Yemen to protect snakes: a dictator and a massive new, eight billion dollar Liquid Natural Gas pipeline that is partially owned by Bush family friend, Ray L. Hunt.

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Call for AIG Open Source Investigation (and Goldman Implications)

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December 20, 2009          Nakedcapitalism.com

Spitzer, Partnoy, Black Call for AIG Open Source Investigation (and Goldman Implications)

An op-ed in the Sunday New York Times by former investigators and prosecutors Eliot Spitzer, Frank Parnoy, and William Black calls for AIG to put non-privileged e-mails, accounting documents, and financial models on line to allow for an “open source” investigation. The questions they want to examine include:

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Secret Bailouts for Giant Failing Banks of the Future?

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bank bailouts

Exactly the last thing we need.

By Adrianne Appel  Inter Press Service News Agency

BOSTON, Oct 30 (IPS) – Big banks will not be forced to downsize and the public will be the last to know when they fail, a controversial bill unveiled by U.S. Treasury Secretary Timothy Geithner and Congressman Barney Frank proposes.

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Written by laudyms

November 2, 2009 at 8:53 am