2008 Banks TBTF | Richashell.com

Washington bailed out the two firms in 2008 at the height of the financial crisis and has since seized all their quarterly profits while demanding the firms reduce their capital buffers. "Future profitability is far from assured," Federal Housing Finance Agency Office of Inspector General said in a report, pointing out that the firms could again chalk up losses on their derivatives portfolios, similar to those they reported in the fourth quarter. "(This) increases the likelihood of additional Treasury investment," the report stated.

Fannie Mae's chief executive issued the same warning in February when the firm announced it would make its smallest payment to taxpayers in more than four years.

http://www.reuters.com/article/idUSKBN0ME0AJ20150318

PRESIDENTIAL ELECTION 2016 SAME PEOPLE WHO DIDN'T SEE '08 DIDN'T SEE BREXIT AND DIDN'T SEE TRUMP.

11/9/16 DONALD J. TRUMP WINS
For the 2nd time in the last 5 presidential elections, the person with the most popular votes was not elected president.

The DNC COULD HAVE DEFEATED TRUMP BUT THEY WANTED POWER FOR THE SAKE OF POWER AND IGNORED Sanders, Senators Elizabeth Warren, Sherrod Brown and Jeff Merkley.

Senator Bernie Sanders could have defeated Trump. (A Federal lawsuit has been filed by Sanders’ supporters against the Democratic National Committee and its former Chair, Debbie Wasserman Schultz, charging that they rigged the primary battle against Sanders in violation of the DNC Charter.

2008 James Hamilton, WAS a law partner at Bingham McCutchen LLP. Hamilton is now a partner at Morgan Lewis, a firm with a long history of ties to Wall Street. His official bio shows that he “served as the Clinton-Gore transition counsel for nominations and confirmations,” “as the principal Clinton White House vetter for Supreme Court nominations,” “was in charge of vetting vice presidential candidates in 2000 for Al Gore,” did the same for John Kerry in 2004 and for Obama in 2008. His bio also indicates that he “vetted candidates for Cabinet, the Department of Justice, White House, and Supreme Court for the Obama administration.”

2008, Michael Froman was an executive at the insolvent Wall Street behemoth, Citigroup. Citigroup had been secretly receiving tens of billions of dollars in below-market-rate loans from the Federal Reserve to prop up its insolvent carcass and stood as the poster child for gross mismanagement. Citigroup would go on to receive the largest taxpayer bailout in U.S. history. Froman was employed at the very division of the bank that blew it up before the year was out. Notwithstanding Froman’s ties to Citigroup, Froman was in charge of staffing the cabinet and subcabinet positions for Obama’s first term. Among the emails released by WikiLeaks, there are 351 emails which show the tight reins Froman held in the selection of Obama’s administration.

Christine Varney was at the time a partner at the law firm Hogan & Hartson LLP and serving as Personnel Counsel for Obama’s Transition Team. (Varney is now a partner at Cravath, Swaine & Moore LLP, the same corporate law firm where embattled SEC Chair Mary Jo White’s husband, John White, is a partner.) Christine Varney Immediately after Obama became President, in January 2009 he appointed Varney to become head of the Antitrust Division at the U.S. Department of Justice. Varney served there from 2009 until 2011 – a period where the massive consolidations of the biggest Wall Street banks that had begun during the crisis in 2008 were allowed to proceed without challenge. Those consolidations have led to much more dangerous risk to the taxpayer and the U.S. economy because of the too-big-to-fail nature of the mega Wall Street banks.

WikiLeaks Bombshell: Emails Show Citigroup Had Major Role in Shaping and Staffing Obama’s First Term

WikiLeaks: Citigroup Exec Gave Obama Recommendation of Hillary for State, Eric Holder for DOJ

I WAS WRONG
ADMITS ALAN GREENSPAN

BREXIT FUCK YOU
Alan Greenspan, the former Fed chairman, once known as the “maestro” of capitalism, declared himself “in a state of shocked disbelief” at the collapse wrought by the unfettered markets he had championed throughout his life. “I’ve found a flaw,” he said. “I’ve been very distressed by that fact.”
The economic order built upon Mr. Reagan’s and Mrs. Thatcher’s common faith in unfettered global markets (and largely accepted by their more liberal successors Bill Clinton and Tony Blair) would be brought down by right-wing populists riding the anger of a working class that has been cast aside in the globalized economy that the two leaders trumpeted 40 years ago.

December Monday, December 15, 2008
Allan Greenspan admitted he was wrong
Greenspan 1986 - 2007: admits credit default swaps have problems. Bail Out. Greenspan Destroys Deregulation in 16 Seconds.

Former Fed Chairman Alan Greenspan has been identified as a prime culprit in creating the conditions for the financial crisis, in particular for opposing greater regulation and fostering a housing bubble. Today, Greenspan is getting his turn on Capitol Hill. And this time, he's speaking in terms we can all understand: admitting some responsibility, while trying to deflect ultimate blame.

Americans have been watching protests against oppressive regimes that concentrate massive wealth in the hands of an elite few. Yet in our own democracy, 1% of the people take nearly a quarter of the nation's income — an inequality even the wealthy will come to regret.

Deregulation he admits was wrong!this asshole forgot

He forgot about

! ! ! GREED ! ! ! !

In early 2008, Libya's sovereign-wealth fund controlled by Col. Moammar Gadhafi gave $1.3 billion to Goldman Sachs Group to sink into a currency bet and other complicated trades. The investments lost 98% of their value, internal Goldman documents show. What happened next may be one of the most peculiar footnotes to the global financial crisis. In an effort to make up for the losses, Goldman offered Libya the chance to become one of its biggest shareholders, according to documents and people familiar with the matter.Negotiations between Goldman and the Libyan Investment Authority stretched on for months during the summer ...

Goldman is politically connected in a way that no other company in America really is. And they've had a hand, really, in a variety of financial disasters over the last two decades. Goldman has repeatedly been involved in creations of speculative INTERNET, HOUSING, COMMODITIES bubbles on Wall Street and continually walk away with fines and no admission of criminal wrongdoing, which emboldens the company to continually get into these schemes.
It's a Con a Confidence game: They avoid exposing the inner workings of the company when they settle and don't have to go to trail, and avoid public testimony, being put under oath and explain how the deals work. The public never finds out.

Lawrence Summers, the presidents chief economic adviser potential conflicts of interest seem less telling than the conflict of values that his Harvard double-résumé exemplifies.

Our Economy Explained: Derivative markets, an understandable explanation. At the bank's corporate headquarters, expert traders transform these customer loans into DRINKBONDS, ALKIBONDS and PUKEBONDS.

-Declan - The AIG mess includes a number of serious oversights and bipartisan political failures:
* AIG received four taxpayer bailouts to date, the most recent under the Obama administration. As far as we know, even though the Treasury owns 80 percent of AIG, the current administration levied no accountability / transparency demands. (If that was the case, the documents have not been made public.)
* A bipartisan chorus of politicians last fall, including the Bush administration and Sen. Chuck Schumer, claimed that an AIG bailout was necessary to avoid "catastrophic" damage to the financial system. But those claims have now been called into question. The list of AIG's counterparties was finally made public a few days ago; that list shows (a) tax dollars were funneled to in large part European banks and (b) the possible damage to counterparties measured by actual payments PDF
* AIG has continued to raise alarms in secret presentations to regulators as recently as last month that used phrases like "potentially catastrophic unforeseen consequences, retirement savings significantly at risk" and "a loss of confidence in the private pension system in the U.S." Those presentations have never been made public by the current administration: Now we have the odd -- but, perhaps, welcome -- spectacle of Congress threatening to change tax law so the bonuses are taxed at a rate of 100 percent:
There's no reason this process has to take place in such secrecy, behind closed doors, which invites special-interest lobbying, and which has the practice of both the Bush and Obama administrations. I've covered this in more detail in my CBS News column.

Northern Trust accepted $1.6 billion in Troubled Asset Relief Program funds, despite record profits of $795 million and a solid balance sheet. The bank, in a letter to shareholders this week, said it didn't seek the funds but accepted them to accommodate "the government's goal of gaining the participation of all major banks in the United States." Whatever the reason, taking the money changed everything. It turned all of the bank's business practices, especially those that smack of cultural excess, into red meat for politicians and others looking to direct public outrage about the state of the economy. The bank cloaks itself in a philanthropic glow while wasting our money, acting like the American Cancer Society when in fact it's a cancer on American society.

The Wealth of the Baby Boom Cohorts After the Collapse of the Housing Bubble This report builds upon previous CEPR projections to more accurately describe the current wealth prospects for the baby boom cohorts aged 45 to 54 and 55 to 64. The severity of the housing market meltdown, coupled with the recent collapse of the stock market, has had a severe negative impact on the wealth of these cohorts. Using data from the 2004 Survey of Consumer Finance and the November 2008 Case-Shiller 20 City Price Index, the authors create three possible scenarios for baby boomer wealth and find these households will enter retirement with little wealth beyond Social Security. For each cohort in 2004 and 2009, the paper analyzes net worth, financial assets, equity in real estate, percent of households in each cohort who will need cash to close on their primary residence, net worth of homeowners, net worth of non-homeowners, and the percent of homeowners who would need cash to close on their primary residence.

AP study finds $1.6B went to bailed-out bank execs
Banks that are getting taxpayer bailouts awarded their top executives nearly $1.6 billion in salaries, bonuses, and other benefits last year.The rewards came even at banks where poor results last year sent them to Washington for a government rescue. Some trimmed their executive compensation due to lagging bank performance, but still forked over multimillion-dollar executive pay packages.Benefits included cash bonuses, stock options, personal use of company jets and chauffeurs, home security, country club memberships and professional money management, the AP review of federal securities documents found. The total amount given would cover bailout costs for many of the 116 banks that have so far accepted tax dollars to boost their bottom lines. The banks have so far received $188 billion in taxpayer help. Among the findings: Goldman Sachs described its pay plan last spring as essential to retain and motivate executives "whose efforts and judgments are vital to our continued success, by setting their compensation at appropriate and competitive levels." Goldman Sachs' tab for leased cars and drivers ran as high as $233,000 per executive. The firm told its shareholders this year that financial counseling and chauffeurs are important in giving executives more time to focus on their jobs.

Tom Friedman's piece in the "New York Times"criticizing the concept of a Detroit bailout: "...our bailout of Detroit will be remembered as the equivalent of pouring billions of dollars of taxpayer money into the mail-order-catalogue business on the eve of the birth of eBay."

Tuesday, October 07, 2008 Explains who is responsible for the financial meltdown.
The Commodities Future Modernization Act which allowed Toxic Assets aka Credit Default Swaps, BIG OIL and BANKS and ENTIRE EXCHANGES to be removed from Government Purview.

Fraud is the creation of trust and the betrayal.

Monday, October 06, 2008 McCain and Charles Keating Keating 5 Senator McCain is for more deregulation which produced the disaster on wall street.

McCain and Charles Keating Keating violated the direct investment rule by 615 million dollars. McCain and Keating were Friends. In politics it is necessary either to betray one's country of the electorate. I prefer to betray the electorate. ~Charles de Gaulle "If I had to choose between betraying my country and betraying my friend, I hope I should have the guts to betray my country." -- Edward M. Forster The money flowed from From Keating to John McCain. McCain took the policy advice from Keating on how NOT to regulate the savings and loans. John McCain was accused of improperly aiding his political patron, Charles Keating, chairman of the Lincoln Savings and Loan Association. The Obama campaign's 13-minute video was released online Monday, and features damning testimony from former Federal Savings and Loan Insurance Corp.'s Deputy Director Bill Black, who was one of the key participants in the meetings with McCain at the time. Obama's Keating Economics micro-site buttresses its case by providing downloads of some of the original letters that McCain sent to regulators that express his concerns about a proposed rule that would have crimped Keating's business. Did McCain Learn From the S&L Crisis? The GOP nominee has supported fiscal deregulation and relaxed accounting for 20 years.

KEATING ECONOMICS: John McCain & The Making of a Financial Crisis

September 29, 2008 CBO Cost Estimate Where to Read the Cost of the Bailout

700 Billion bale out plan revealed tonight The federal government would put up as much as $700 billion in a far-reaching plan to rescue the nation's troubled financial system, according to a bill unveiled by lawmakers on Sunday.

September 24, 2008 OURTRAGE: Wall Street CEO's get Bailed out and STILL GET THEIR BONUS CEO pay: What those involved in the financial meltdown made Executives from some of the major investment and commercial banks involved in the financial upheaval and bailout earned hefty paychecks last year, according to proxy statements outlining their salaries, bonuses and stock options:

Fannie Mae and Freddie Mac CEOs will receive millions of dollars in severance packages
Obama Calls on the Bush Administration to Guarantee Taxpayers Do Not Pay Fannie Mae and Freddie Mac CEO Severance Packages

Top 100 Recipients of Federal Contract Awards for FY 2008 1Q
You pay taxes. Your representative decides what to spend your money on what company to do business with.

HOW TO FIX EVERYTHING BURN DOWN THE COMPUTERS ERASE THE HARD DRIVES !
Thursday, September 25, 2008 Burn Mortgage and Loan Papers Pretty Boy Floyd was thoughtful enough to burn mortgages and loan papers when he robbed the banks, creating a into modern day Robin Hood and folk hero.

September 18, 2008 The Celebrated Bank War Period: 1820-1860 Compare the AIG bale out banking failures with the one in 1820.

10 days that changed U.S. Banking forever The bankruptcy of financial services giant Lehman Brothers and the 500-point drop in the stock market on Sept. 15 have sent shock waves through the financial community. Law professor Michael Greenberger discusses the potential global ramifications of the recent turmoil.

July 13, 2008 Banks Fail Run on the Bank Bank failures to surge in coming years. IndyBank Fails. There are 90 banks that may fail. No one tells you which bank. It could be your bank, but how would you know?

Lehman Brothers and Slavery.
The NY Times stated that Lehman Brothers began as part of the cotton trade in 1850. The Lehman's partner in the 1860s and 70s was John Wesley Durr, the grandfather of Clifford Durr, a principled Alabama attorney who fought for civil rights and civil liberties a century later, and the husband of the famous Virginia Foster Durr. In the 1950s, hate groups targeted Durr because of his family's long-past business relationship with the Lehman family (which they identified as Yankee collaborators during Reconstruction).

Credit Default Swap (CDS) - Lehman Final Results In
Sellers of insurance on Lehman Brothers debt made net payments of $5.2 billion to settle an estimated $400 billion or more in credit default swaps, the Depository Trust and Clearing Corporation said Wednesday.As predicted, the net payments were a fraction of the $400 billion.

Valuation of CDS's fascinating, because of the following law: Black Scholes option valuation says that the value of a security that derives value from an underlying *uncertain*asset is dependent on the product of the underlying asset value and the volatility of that asset. To be worth zero, under Black-Scholes, one needs both a very low volatility and a very low underlying asset value. CDS's *should* follow Black Scholes. It's the bible truth. Yet we have a very *high* volatility (uncertainty) in the underlying assets! Nearly infinite - because we cannot predict the future. So the bible appears to be wrong. Now this is where the mathematicians of finance lost it, and the physicists failed to remember their culture. The bible depends on some assumptions. Those assumptions are no longer written down. It is assumed that the market will never move to a state that violates such assumptions. I can share the math with you if you want, but it would be simpler if you just go and buy Dixit and Pindyck's Investment under Uncertainty, which beautifully explains it all so that a mathematician and physicist can understand it.The paradox is resolvable. The mathematics are based on core assumptions that fail to scale. Yet the market is at scale, not at the micro level where Black Scholes holds true. Greed - the attempt to scale to become masters of the universe - falsified the assumptions of the greedy modelers. ~ David P. Reed

October 22, 2008 PricewaterhouseCoopers and Ernst & Young to oversee the $700 billion bailout
All the Big 4 audit firms are complicit in the malaise now sickening the global financial services sector. They are partly to blame for the gangrene that threatens capitalism worldwide. It is an insult to taxpayers that firms with numerous examples of poor performance – and failure to identify some of the largest corporate frauds in history – are now are being asked to audit the biggest financial transaction in history.

October 23, 2008 Hearing on Credit Rating Agencies
House Committee on Oversight and Government Reform. What role did the three largest credit rating agencies - Standard & Poor's, Moody's Corporation, and Fitch Ratings - play in the current financial markets turmoil? Former and current executives testified.

October 15, 2008 President Bush Crime Family Tree - The Bush Family Evil Empire

Friday, October 10, 2008 Presidential Campaign which is a word used in War ; The Whisper Campaign has a southern history produced by the Republican Party of Karl Rove Jesse Helms and the southern strategy.

Palin has used personal yahoo e-mail accounts to conduct state business We shouldn't be in a position where public records have been lost because the governor didn't do what every other state employee knows to do, which is to use an official, secure state e-mail account to conduct state business, McLeod said after the 90-minute hearing.

October 08, 2008 About Money Lies and Liars

Final List of Who Voted for the Bail Out Bill
Find out how your Democratic, Republican, Independent Senator Voted on October 3 for the Emergency Economic Stabilization Act of 2008.

Wednesday, October 22, 2008 PricewaterhouseCoopers and Ernst & Young to oversee the $700 billion bailout
All the Big 4 audit firms are complicit in the malaise now sickening the global financial services sector. They are partly to blame for the gangrene that threatens capitalism worldwide. It is an insult to taxpayers that firms with numerous examples of poor performance – and failure to identify some of the largest corporate frauds in history – are now are being asked to audit the biggest financial transaction in history.

Thursday, October 23, 2008 Hearing on Credit Rating Agencies
House Committee on Oversight and Government Reform. What role did the three largest credit rating agencies - Standard & Poor's, Moody's Corporation, and Fitch Ratings - play in the current financial markets turmoil? Former and current executives testified.

Wednesday, October 15, 2008 President Bush Crime Family Tree - The Bush Family Evil Empire

Friday, October 10, 2008 Presidential Campaign which is a word used in War The Whisper Campaign has a southern history produced by the Republican Party of Karl Rove Jesse Helms and the southern strategy.

Palin has used personal yahoo e-mail accounts to conduct state business "We shouldn't be in a position where public records have been lost because the governor didn't do what every other state employee knows to do, which is to use an official, secure state e-mail account to conduct state business," McLeod said after the 90-minute hearing.

Wednesday, October 08, 2008 About Money Lies and Liars
Commerce With Conscience You say you want a revolution Well, you know We all want to change the world You tell me that it's evolution Well, you know We all want to change the world You know it's gonna be Alright alright alright alright alright ALRIGHT