dcb

The Quest to Backstop Every Big Bank

I keep saying, and will keep saying that the fed and treasury programs are designed to have unlimtied funding to banks for ever until the entire united states economy is ruined. Of course the market loves these programs and bernake is a hero. He would be my hero too if he gave me unlimited cheap funding for ever with no oversight.

This is just another reason why we should have nationalized

State Street: Is It Trading for Federal Accounts?

I do not understand why there has not been popular uprisings and riots as of yet.


On Jun 12 02:39 PM jhartz wrote:

> America's economic heart is being ripped out and eaten by a gang
> of thieves who are embarked on a crusade. This crusade has one single
> goal: reducing Americans to paupers in order to set the stage for
> a "new world order".
>
> Will it succeed? Doubtful. A more likely outcome will be a revolt
> by those deing deceived and robbed, followed by a massive outpouring
> of violence and reprisals against those who conspired to take what
> wasn't theirs. If it ends up being 'blood in the streets', the blood
> being let will be that of the elected officials and their bankster
> co-conspiritors.
>
> Survivors will refer to it as the "Manhatten Massacre" and the "D.C.
> Armed Insurrection".
>
> Take heed you thieves and liars: the punishment for treachery is
> death.

State Street: Is It Trading for Federal Accounts?

There are a few things that can't be doubted.
1)there is funny business going on in the markets
2)they have billions to throw down at the end of the day with stick saves.
3) I do not know who is doing it but the government wants it done because they aint stopping it.

Wall Street Breakfast: Must-Know News

Note, the trustees of AIG are picked by NY fed whcih has the ability to fire and over rule them. expect aig to behavie in way best for bankers not taxpayers. the AIG sham continues.

AIG Names Six for Board as Trustees Assert Control (Update2)
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By Hugh Son

May 19 (Bloomberg) -- American International Group Inc., the insurer bailed out by the U.S., named six new director candidates in the first nominations since the trustees managing the government stake vowed to overhaul the board.

The candidates are Harvey Golub, Laurette Koellner, Christopher Lynch, Arthur Martinez, Steve Miller and Douglas Steenland, New York-based AIG said today in a statement.

The trustees, named in January, are under pressure to turn around the money-losing insurer after the bailout was expanded to as much as $182.5 billion. The trustees told Congress last week that they’d selected five executives to join the board and that AIG will nominate one new member.

“The board needs to move very quickly to re-establish the credibility of AIG’s management team,” said Phillip Phan, professor of management at the Johns Hopkins Carey Business School in Baltimore, in an interview before the announcement.

The insurer’s current board worked with the trustees in picking the candidates, Chief Executive Officer and Chairman Edward Liddy said today in the statement. AIG’s annual meeting will be held on June 30, the insurer said today. It was previously scheduled for May 13.

The names of all the candidates excluding Koellner, 54, a former president at Boeing Co., were reported last week.

Miller, 67, is chairman of Delphi Corp. and a former chief financial officer of Chrysler Corp. Steenland, 57, is the ex- Northwest Airlines CEO. Lynch, 51, is a retired partner at consulting firm KPMG International.

Golub, Martinez

Golub, 70, was CEO of American Express Co. from 1993 to 2001. Martinez, 69, was CEO of Sears Roebuck & Co. from 1995 until 2000.

“The new candidates have extensive experience with large complex organizations and in the areas of financial services, accounting and restructuring,” Liddy said in the statement.

The trustees, appointed by the Federal Reserve Bank of New York, are Jill Considine, former chairman of the Depository Trust & Clearing Corp.; Chester Feldberg, former chairman of Barclays Americas, and Douglas Foshee, chief executive officer of natural gas producer El Paso Corp.

The director candidates will be listed in an AIG proxy to be issued this month, Foshee told lawmakers last week in prepared testimony. The board will have nine new directors including Liddy, Suzanne Nora Johnson and Dennis Dammerman, each appointed in the past year, he said.

Fresh Start

“If AIG is to succeed, it needs a fresh start -- a reset, if you will,” Foshee said at the May 13 hearing.

The trustees wield the government’s 77.9 percent stake in AIG and control votes on board members, asset sales, mergers and selection of top executives, according to a regulatory filing.

The overseers will vote in a way that “maximizes shareholder value” said Peter Bakstansky, a spokesman for the panel, in an April 6 interview.

AIG directors Virginia Rometty, Michael Sutton and Edmund Tse have said they are stepping down from the board. Stephen Bollenbach, appointed last year as lead independent director, won’t stand for re-election at the annual meeting, said a person familiar with the situation. The person asked not to be identified because AIG hadn’t announced Bollenbach’s plans.

A voice mail left for Bollenbach wasn’t immediately returned.

AIG was first rescued in September with an $85 billion credit line after a liquidity squeeze caused by credit-default swaps the insurer sold to banks. The company agreed in September to hand over a controlling stake to the U.S. and to replace Robert Willumstad as chairman and CEO. Liddy was picked by then- Treasury Secretary Henry Paulson.

The insurer’s bailout expanded to $122.8 billion, $152.5 billion and then $182.5 billion as the government sought to prevent losses at banks that did business with AIG. The company said it owes about $46 billion of a $60 billion Federal Reserve credit line as of last week.

To contact the reporter on this story: Hugh Son in New York at [e-mail]

Freedom of Information Act Disclosure Busts Paulson, Geithner, Bair

There are a number of disturbing this that come out of this article and the comment stream
1) Except of a couple of stupid comments all of them were reasonable, therefore I have to conclude there are a number of people going around and giving thumbs down to anyone who has something good to say about Tyler's posts. I consider this to just be another aspect of how the government wants to suppress the truth, and you see it very often now on any article that ould be considered to bearish or have a neg. view on our government. Well folks it aint going to work, and I am nominating Tyler for a Pulitzer
2) Not being at the table when things were hitting the fan it is hard for me to commnet. If Paulson and the Gov't believed the house of cards would fall down overnight I can understand why they did it. Don't forget a number of other banks (Lehman) said they had enough cash and look what happened when they went down over a weekend. So, it may have been the correct thing to do to avoid systemic collapse
2) Assuming number two is true, there is no need to cover it up and lie about it. that is what worries me." We forced certain systemicly impt banks to accept funds at a time of crisis to prevent the collpase of our banking system." That sounds reasonable to me.
3)What is the current need to hide Geitner's comments to edit the talking points. he is a current government figure and at the middle of this scandal. the american people should know what his role was.
4) We all see how Washington is focused on Wall Street numbers. One of the reasons we are having such a difficult time fixing this problem is we are more concerned with the dow than fixing the problem. This will delay an effective solution to the crisis and lead to solutions that are too directed to short term market upkeep instead of long term stabliity.
5) Just another piece of the cover up that is being exposed each and every day about this crisis, yet those who point out the cover up keep getting shouted down. This implies a sad state of our democracy.

Freedom of Information Act Disclosure Busts Paulson, Geithner, Bair

You are correct. I keep saying the same thing over and over because it is very important that the American people understand what is happening. We really do not have a democracy in this country anymore. We have no representation in washington, but have taxation. It is critically impt that the public keep writing their congressman and senators to let them know we know what is really going on.


On May 14 06:18 AM User 353732 wrote:

> What happened to separation of Bank and State?
> Well, the governing elites concluded many years ago that protecting
> investors, consumers and honoring both law and custom were major
> impediments to advancing the self interest of the political and financial
> barons. Collusion, in the name of the people, was a far more expedient
> strategy for self perpetuation.
> They decided that the quaint old way when money and sovereignty
> belonged to the people and Washinton DC and Wall St actually had
> to earn the right to make important national decisions and take
> and spend the people's money was neither efficient nor modern. The
> elites looked at the way the Chinese, Russians and Japanese did things
> and saw that it was good. So, the elites decided that "globalizing"
> this collusion between State and Bank would be the new, improved
> way for ensuring the continuity and advancement of Elitism in the
> US.
> Transparency, accountability and bright lines made the Washington-Wall
> St oligarchy anxious and fearful, so away with them.
> The old American model was: protect the people from the governing
> elite. The new model is: protect the governing elite from the people.
> The Chinese, Russians and Japanese approve and applaud.

Stress Test Results Are Out - Leaks Were Right

IF YOU ARE NOT PART OF THE SOLUTION, YOU ARE PART OF THE PROBLEM.

Congressional Oversight Panel

732 North Capitol Street, NW

Rooms: C-320 and C-617

Mailstop: COP

Washington, DC 20401



May 8, 2009





Dear xxxx,



Thank you for taking the time to share your thoughts with the Congressional Oversight Panel.



As part of the Emergency Economic Stabilization Act of 2008, Congress established the Panel to oversee the U.S. Department of Treasury’s administration of the Troubled Asset Relief Program (TARP) and to provide recommendations for future regulatory reform. To fulfill that mission, the Panel is empowered to hold hearings, review official data, and provide regular reports to Congress and the American public. These reports can be found at cop.senate.gov/reports/.



Because the Panel relies on direct input from the American people in going about our work, we appreciate your views and will endeavor to take them into account in our ongoing oversight work.



We are approaching our work with great urgency and seriousness. We will do our best to ensure that the Treasury Department uses TARP funds in a transparent, accountable, and responsible manner and that reforms to the financial regulatory system are adopted in a way that serves the best interests of the American public. Thank you for your contribution to this effort.



Sincerely,



Elizabeth Warren

Chair

DO NOT JUST POST, WRITE THOSE IN POWER.

Stress Test Results Are Out - Leaks Were Right

My understanding was that they were releasing (leaking) they got something acceptable. The banks were told how much they had to raise then got it reduced (so what is the meaning of the result) According to the first page of the FT yesterday citi was told they need 30 bil, and were able to bargin down to five. therefore, what do these results mean.

Bank Stress Test: The Cheat Sheet

"The Greatest Boondoggle in History": Banks Buoyed at Taxpayers' Expense
Posted May 08, 2009 04:05pm EDT by Aaron Task in Newsmakers, Recession, Banking
Related: WFC, MS, BAC, C, XLF, ^DJI, ^GSPC
Bank stocks soared Friday, including Wells Fargo and Morgan Stanley, which sold shares a discounts of more than 10% below Thursday's close.

The ability of banks to raise capital is certainly positive but the idea of shares rallying amid the capital raising and dilution is "counterintuitive," Bank of America CEO Ken Lewis said on CNBC this morning.

BofA shares were also rallying even as the government said it needs to raise an industry-leading $33.9 billion. Citigroup stock was also a big winner after the government's curious declaration that it "only" needs to raise $5 billion.

While much of the focus is on the stress tests and banks' efforts to raise cash, the real story is Geithner's Public-Private Investment Program (PPIP), says William Black, an Associate Professor of Economics and Law at the University of Missouri - Kansas City.

The PPIP is the "greatest boondoggle in the history of the world," says Black, a former bank regulator who was counsel to the Federal Home Loan Bank Board during the S&L crisis. As occurred during the S&L era, Black says the PPIP will allow banks to exchange "trash for cash" and turn "real losses into faulty gains."

If the goal of Tim Geithner and other regulators was "to rip off the American taxpayer for the benefit of the least-deserving wealthiest people you can imagine, well - mission accomplished," Black says.

Why This Rally Is Unsustainable

I looked at the perfromance of HYG and Pff and don't see that performance, and I see lots of time down side. the gains have been seince march lows.
As for REITS, I'd be very careful


On May 02 09:45 AM Smackdown wrote:

> Agree 1000%. The Feb/March crash was unwarranted and a capitulation
> in many sectors. Screw the general market, look at the subsectors.
> Lots of capitulation. This "rally" has not even gotten the general
> market even on the year. Not close. Instead of fixating on
> comparisons to the Great Depression market (worthless IMO), one should
> fixate on opportunity. Gambling by being short is just that, a
> gamble. I look for real tangible opportunities. Before the
> general stock market can really heal, the credit markets need to
> heal. As such, if one invested in higher yielding securities such
> as MLPS, Preferreds, High Yield Bonds, certain REITS, they would
> be up well over 100% since November. I am up 130% since then and
> 40%+ YTD. It is not luck. I look for arb opportunities and depresseed
> prices due to hedge delevering. Rant all you want about the market
> crashing again, I'll be happy identifying yield anomalies versus
> the curve and executing on them. And I get a 10+% current yield
> while I invest. Does your short pay you the rent? Looking forward
> to my thumbs down for my real world post.

Why This Rally Is Unsustainable

Feb march crash was engineered by the same people keeping the market up now, DUH


On May 02 09:45 AM Smackdown wrote:

> Agree 1000%. The Feb/March crash was unwarranted and a capitulation
> in many sectors. Screw the general market, look at the subsectors.
> Lots of capitulation. This "rally" has not even gotten the general
> market even on the year. Not close. Instead of fixating on
> comparisons to the Great Depression market (worthless IMO), one should
> fixate on opportunity. Gambling by being short is just that, a
> gamble. I look for real tangible opportunities. Before the
> general stock market can really heal, the credit markets need to
> heal. As such, if one invested in higher yielding securities such
> as MLPS, Preferreds, High Yield Bonds, certain REITS, they would
> be up well over 100% since November. I am up 130% since then and
> 40%+ YTD. It is not luck. I look for arb opportunities and depresseed
> prices due to hedge delevering. Rant all you want about the market
> crashing again, I'll be happy identifying yield anomalies versus
> the curve and executing on them. And I get a 10+% current yield
> while I invest. Does your short pay you the rent? Looking forward
> to my thumbs down for my real world post.

Why This Rally Is Unsustainable

Everything the man has said is factually correct, how you decide to i take what he says is your choice.

S&P close April 9th 856.56, close this past friday 877.52
is about 2.45 percent. but if you listen to cetins posts the market is always surging. what a joke.

Bank Stress Tests: Tangible Common Equity a Critical Metric

Let us not forget that summers (sp) was the one who got derivatives to be unregulated, the role of Rubin, and the role of Paulson in this crisis. all these guys have screwed up big time and they are doing anything and everything to gloss it over instead of fixing the problem. The goal of the administration is to buy time and hope things fix themselves. Only time will tell.

You have to start grasping that many people on the site care little about the markets. They want a real solution and if the markets go lower to get that it is fine with them. You need to start getting into your head that markets going up does not mean it is the proper answer.

Bank Stress Tests: Tangible Common Equity a Critical Metric

If you aren't sending e-mail to congress, etc then you aren't doing your job. I send out at least 7 per week. Also sending to GAO, inspector general, and Andrew Cuomo. If voices aren't heard they don't count.


On Apr 24 09:49 AM Prudent Man CFA wrote:

> I look for the so-called "Stress Test", constructed by political
> lackeys for political purposes, to be rigged. The strong Regional
> Banks will be put into a non-competitive position so the statists
> can nationalize the whole system and finally completing their goal
> of ending Free Enterprise as we have historically know it.
>
> The cost of this silent overthrow of the Free Enterprise System will
> inexorably be paid for by generations to come. Who else will? Shame
> on us!
>
> We are seeing that salaries, loans and competition is being directed
> by closet Socialists so no one should be surprised when loans are
> made upon political preferences and priorities and not meritocracy,
> which the statists abhor.
>
> We also saw the Tea Parties, a populist movement to stop government
> intrusion in the private sector and our lives, being denigrated by
> the media. Why? Isn't dissent an integral ingredient of Freedom?
> The same media that supported the Students for Democratic Society
> (seekingalpha.com/symbo...), the violent Communist supported,
> murderous Weathermen and the Black Panthers do not want the people
> who support Free Enterprise to have their say. This is not accidental
> but show how far back the movement to destroy the Free Enterprise
> System dates.
>
> Where is the anger by the media with the intrusion of government
> in the financial sector last year has exploding into of government
> controlled Industrial Policy?
>
> With the foregoing in mind and considering that Tim Geithner, as
> President of the NY Fed had a major part last year in this intrusion,
> does any serious observer of markets, economics and politics believe
> the "Stress Test" will be anything by self-serving the statists agenda?
> BHO, his Administration and the current Congress makes the timing
> perfect and the investment is showing fruit of its labors.