Until now, when making a case for the AIG bailout, the US government has always maintained that had the financial services giant been left to fail, its credit default swap (CDS) obligations would have caused huge losses to its counterparties, resulting in all-out financial collapse.
Tag: meltdown
Hackers Steal $50,000. Bank Says ‘Tough Luck’ | CBS MoneyWatch.com
Another reason to love BofA:
The bank recognized that the transfers were improbable, but didn’t stop them. A bank official called Bao to report “unusual activity” on his account, but refused to tell him what it was because Huang was the company’s only “authorized agent” and she was on a business trip in Hong Kong
Recessionary Cartography – Enormous Aerial Auto Maps | trendhunter.com
Automakers are facing trouble across the world due to global recession. Thousands of unsold cars are parked in factories and warehouses waiting for delivery to customers and dealers. (thewondrous)
Bankers Without a Clue | Paul Krugman – NYTimes.com
Jamie Dimon of JPMorgan Chase declared that a financial crisis is something that “happens every five to seven years. We shouldn’t be surprised.” In short, stuff happens, and that’s just part of life.
But the truth is that the United States managed to avoid major financial crises for half a century after the Pecora hearings were held and Congress enacted major banking reforms. It was only after we forgot those lessons, and dismantled effective regulation, that our financial system went back to being dangerously unstable.
It’s the equivalent of “Hey, who can know why these things happen? What am I, an expert? Fuggetaboutit.”
Federal Reserve Seeks to Protect U.S. Bailout Secrets (Update1) | Bloomberg.com
The Federal Reserve Bank, to preserve its own power, is engaged in a lawsuit to prevent disclosure over what banks received bailout funds, along with how much they received.
Since the Fed controls currency, in effect, your government is engaged in a fight to NOT tell you who the gave YOUR money to.
The Fed is joined in its bid to overturn Preska’s order by the Clearing House Association LLC, an industry-owned group in New York that processes payments between banks. The group assailed the judge’s decision for what it said were legal errors, such as applying the wrong standard in weighing the exception to FOIA.
The group includes ABN Amro Bank NV, a unit of Royal Bank of Scotland Plc, Bank of America Corp., The Bank of New York Mellon Corp., Citigroup Inc., Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase & Co., US Bancorp and Wells Fargo & Co.
Federal Reserve Seeks to Protect U.S. Bailout Secrets (Update1) – Bloomberg.com.
Do Something!
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SEC order helps maintain AIG bailout mystery | Reuters
It could take until November 2018 to get the full story behind the U.S. bailout of insurance giant American International Group (AIG.N) because of an action taken last year by the Securities and Exchange Commission.
In May, the SEC approved a request by AIG to keep secret an exhibit to a year-old regulatory filing that includes some of the details on the most controversial aspect of the AIG bailout: the funneling of tens of billions of dollars to big banks like Societe Generale, Goldman Sachs (GS.N), Deutsche Bank (DBKGn.DE) and Merrill Lynch.
Do Something!
Continue reading “SEC order helps maintain AIG bailout mystery | Reuters”
NEW YEAR’S RESOLUTION – MOVE YOUR MONEY!!!
Banks That Bundled Bad Debt Also Bet Against It | NYTimes.com
“The simultaneous selling of securities to customers and shorting them because they believed they were going to default is the most cynical use of credit information that I have ever seen,” said Sylvain R. Raynes, an expert in structured finance at R & R Consulting in New York. “When you buy protection against an event that you have a hand in causing, you are buying fire insurance on someone else’s house and then committing arson.”
Read on to find out how Goldman Sachs created and sold securities – they thought would lose money – to investors.
Leadership, Obama Style: Pretty Speeches, Compromised Values, and the Quest for the Lowest Common Denominator | Drew Weston, PhD
Somehow the president has managed to turn a base of new and progressive voters he himself energized like no one else could in 2008 into the likely stay-at-home voters of 2010, souring an entire generation of young people to the political process.
Meet the new boss…same as the old boss…
Stimulus News Digest #10 – November 2009 | California Office of the Small Business Advocate
The Office of the Small Business Advocate has this news:
Continue reading “Stimulus News Digest #10 – November 2009 | California Office of the Small Business Advocate”
Dispatches From The Front 