And here they are, ordered, and numbered for the year so far.
Two weeks of 4 bank failures in a row.
I’m not sure if this is a trend, I’d wait another week on that, but we are back to (exactly) a two bank failure per week.
So, here is the graph pr0n with last years numbers for comparison (FDIC only):
I’m shocked, shocked to find that gambling is going on here!So, now that we are looking into the corruption and cronyism in Mubarak’s Egypt, and it turns out that it has its roots in the American led privatization of the Egyptian economy, just like the rampant corruption in post-Soviet Russia:
Beginning two decades ago, the United States government bankrolled an Egyptian think tank dedicated to economic reform. A different outcome is only now becoming visible in the fallout from Egypt’s Arab Spring.
Formed with a $10 million endowment from the U.S. Agency for International Development, the Egyptian Center for Economic Studies gathered captains of industry in a small circle — with the president’s son Gamal Mubarak at the center. Over time, members of the group would assume top roles in Egypt’s ruling party and government.
Today, Gamal Mubarak and four of those think tank members are in jail, charged with squandering public funds in the sale of public resources, lands and government-run companies as part of a dramatic restructuring. Some have fled the country, pilloried amid the public outrage over insider deals and corruption that toppled President Hosni Mubarak.
“It became a crony capitalism,” Magda Kandil, the think tank’s new executive director, said of the privatization program advocated by its founders. Because of the corruption, the center now estimates, the assets that Egypt has sold off since 1991 have netted only about $10 billion, $90 billion less than their estimated worth.
The privatization saga is a cautionary tale about the power and perils of U.S. foreign aid — most notably the nearly $8 billion that the United States has provided to Egypt since the 1990s to push the country toward economic reforms.
This is not a bug, it’s a feature. This sort of economic liberalization is all about creating a few corrupt individuals, because it’s cheaper to allow cronies to get siphon off a billion or two while our banksters steal the rest than it is to allow those resources to accrue legally to the workers and the country.
I may seem cynical about this, but the corruption in Egypt, or Russia, or pretty much all of other privatization schemes outside of the Scandinavian countries run this way, so I’ve come to the conclusion that this is the actual goal of these policies.
While on some objective level, there might be some advantages (For officers who need a combat tour on their resume) to a continued US presence in Iraq, the Iraqis loath the Americans, both the military, and (in particular) the mercenaries private military contractors.
So it comes as no surprise that the Iraqis have refused to extend immunity to the military and has additionally refused to allow US bases to remain in country:
The US suffered a major diplomatic and military rebuff on Friday when Iraq finally rejected its pleas to maintain bases in the country beyond this year.
Barack Obama announced at a White House press conference that all American troops will leave Iraq by the end of December, a decision forced by the final collapse of lengthy talks between the US and the Iraqi government on the issue.
The Iraqi decision is a boost to Iran, which has close ties with many members of the Iraqi government and which had been battling against the establishment of permanent American bases.
Obama attempted to make the most of it by presenting the withdrawal as the fulfilment of one of his election promises.
“Today I can report that, as promised, the rest of our troops in Iraq will come home by the end of the year. After nearly nine years, America’s war in Iraq will be over,” he told reporters.
But he had already announced this earlier this year, and the real significance today was in the failure of Obama, in spite of the cost to the US in dollars and deaths, to persuade the Iraqi president Nouri al-Maliki to allow one or more American bases to be kept in the country.
Obama was doing his damnedest to try to make his promise to leave Iraq a promise in name only, but the Iraqis are having none of it.
Like I said, to the degree to which Obama claims to oppose “stupid wars”, he refuses to believe that any war can be stupid.
Just as as a note, Bush’s invasion of Iraq is the just the gift that keeps on giving.
According to Senator Sanders, a recent GAO report has uncovered pervasive conflicts of interests at the Federal Reserve.
The language is steeped in the gentility of the Senate, but I think that the short version is, “Stop the looting and start prosecuting”.
Sanders’ full press release after the break.
GAO Finds Serious Conflicts at the Fed
October 19, 2011
WASHINGTON, Oct. 19 – A new audit of the Federal Reserve released today detailed widespread conflicts of interest involving directors of its regional banks.
“The most powerful entity in the United States is riddled with conflicts of interest,” Sen. Bernie Sanders (I-Vt.) said after reviewing the Government Accountability Office report. The study required by a Sanders Amendment to last year’s Wall Street reform law examined Fed practices never before subjected to such independent, expert scrutiny.
The GAO detailed instance after instance of top executives of corporations and financial institutions using their influence as Federal Reserve directors to financially benefit their firms, and, in at least one instance, themselves. “Clearly it is unacceptable for so few people to wield so much unchecked power,” Sanders said. “Not only do they run the banks, they run the institutions that regulate the banks.”
Sanders said he will work with leading economists to develop legislation to restructure the Fed and bar the banking industry from picking Fed directors. “This is exactly the kind of outrageous behavior by the big banks and Wall Street that is infuriating so many Americans,” Sanders said.
The corporate affiliations of Fed directors from such banking and industry giants as General Electric, JP Morgan Chase, and Lehman Brothers pose “reputational risks” to the Federal Reserve System, the report said. Giving the banking industry the power to both elect and serve as Fed directors creates “an appearance of a conflict of interest,” the report added.
The 108-page report found that at least 18 specific current and former Fed board members were affiliated with banks and companies that received emergency loans from the Federal Reserve during the financial crisis.
In the dry and understated language of auditors, the report noted that there are no restrictions in Fed rules on directors communicating concerns about their respective banks to the staff of the Federal Reserve. It also said many directors own stock or work directly for banks that are supervised and regulated by the Federal Reserve. The rules, which the Fed has kept secret, let directors tied to banks participate in decisions involving how much interest to charge financial institutions and how much credit to provide healthy banks and institutions in “hazardous” condition. Even when situations arise that run afoul of Fed’s conflict rules and waivers are granted, the GAO said the waivers are kept hidden from the public.
The report by the non-partisan research arm of Congress did not name but unambiguously described several individual cases involving Fed directors that created the appearance of a conflict of interest, including:
- Stephen Friedman In 2008, the New York Fed approved an application from Goldman Sachs to become a bank holding company giving it access to cheap Fed loans. During the same period, Friedman, chairman of the New York Fed, sat on the Goldman Sachs board of directors and owned Goldman stock, something the Fed’s rules prohibited. He received a waiver in late 2008 that was not made public. After Friedman received the waiver, he continued to purchase stock in Goldman from November 2008 through January of 2009 unbeknownst to the Fed, according to the GAO.
- Jeffrey Immelt The Federal Reserve Bank of New York consulted with General Electric on the creation of the Commercial Paper Funding Facility. The Fed later provided $16 billion in financing for GE under the emergency lending program while Immelt, GE’s CEO, served as a director on the board of the Federal Reserve Bank of New York.
- Jamie Dimon The CEO of JP Morgan Chase served on the board of the Federal Reserve Bank of New York at the same time that his bank received emergency loans from the Fed and was used by the Fed as a clearing bank for the Fed’s emergency lending programs. In 2008, the Fed provided JP Morgan Chase with $29 billion in financing to acquire Bear Stearns.At the time, Dimon persuaded the Fed to provide JP Morgan Chase with an 18-month exemption from risk-based leverage and capital requirements. He also convinced the Fed to take risky mortgage-related assets off of Bear Stearns balance sheet before JP Morgan Chase acquired this troubled investment bank.
To read a more detailed analysis of the GAO report prepared for Sen. Sanders, click here.
To read the full GAO report, click here.
Personally confirm this, because his is probably lying.
The latest case is (probably) former GOP golden boy Mark Rubio who was caught lying about his family being expelled from Cuba by Castro:
During his rise to political prominence, Sen. Marco Rubio frequently repeated a compelling version of his family’s history that had special resonance in South Florida. He was the “son of exiles,” he told audiences, Cuban Americans forced off their beloved island after “a thug,” Fidel Castro, took power.
But a review of documents — including naturalization papers and other official records — reveals that the Florida Republican’s account embellishes the facts. The documents show that Rubio’s parents came to the United States and were admitted for permanent residence more than two-and-a-half years before Castro’s forces overthrew the Cuban government and took power on New Year’s Day 1959.
The supposed flight of Rubio’s parents has been at the core of the young senator’s political identity, both before and after his stunning tea-party-propelled victory in last year’s Senate election. Rubio — now considered a prospective 2012 Republican vice presidential candidate and a possible future presidential contender — mentions his parents in the second sentence of the official biography on his Senate Web site. It says that Mario and Oriales Rubio “came to America following Fidel Castro’s takeover.” And the 40-year-old senator with the boyish smile and prom-king good looks has drawn on the power of that claim to entrance audiences captivated by the rhetorical skills of one of the more dynamic stump speakers in modern American politics.
The real story of his parents’ migration appears to be a more conventional immigrant narrative, a couple who came to the United States seeking a better life. In the year they arrived in Florida, the future Marxist dictator was in Mexico plotting a quixotic return to Cuba.
Rubio’s office confirmed Thursday that his parents arrived in the United States in 1956 but noted that “while they were prepared to live here permanently, they always held out the hope and the option of returning to Cuba if things improved.” They returned to Cuba several times after Castro came to power to “assess the situation with the hope of eventually moving back,” the office said in a statement.
Yeah, right.
In 1956, Castro was in exile in Mexico until December 2.
His “revolution” was little more than a quixotic joke in 1956.
His parents ditched Cuba in 1956 because they did not want to live there any more.
Lame…
So Qaddafi is dead:
Col. Muammar el-Qaddafi, the former Libyan strongman who fled into hiding after an armed uprising toppled his regime two months ago, met a violent and vengeful death Thursday in the hands of rebel fighters who stormed his final stronghold in his Mediterranean hometown Surt. At least one of his sons was also killed.
Al Jazeera television showed footage of Colonel Qaddafi, alive but bloody, as he was dragged around by armed men in Surt. The television also broadcast a separate clip of his half-naked torso, with eyes staring vacantly and an apparent gunshot wound to the head, as jubilant fighters fired automatic weapons in the air. A third video, posted on Youtube, showed excited fighters hovering around his lifeless-looking body, posing for photographs and yanking his limp head up and down by the hair.
Conflicting accounts quickly emerged about whether Colonel Qaddafi was executed by his captors, died from gunshot wounds sustained in a firefight, was mortally wounded in a NATO air strike on his escaping convoy or bled to death in an ambulance. But the images broadcast by Al Jazeera punctuated an emphatic and gruesome ending to his four decades as a ruthless and bombastic autocrat who had basked in his reputation as the self-styled king of kings of Africa.
So all that remains for NATO’s little colonial enterprise is the looting by multinational oil companies and ………… What else is there in Libya?
Tourism maybe?
And, of course, money to gotten by looting privatizing state industry, the healthcare system, and education.
MTV is making a casting call for The Real World occupy Wall Street:
MTV has made an industry this year of recycling its vintage content, from Beavis & Butthead to Liquid Television.
Now the network appears to be updating or at least remixing its Real World franchise with a tip of the hat to the Occupy generation.
Casting calls in Los Angeles and New York this week are looking for …
Is there nothing that our society does not cheapen?
And initial claims are again just marginally better, 404,000 down from last week’s adjusted 409,000, which is still too damn high.
Actually, it’s worse than it sounds, because they adjusted last week’s numbers were adjusted up from 405,000, (isn’t it always the way?) so it’s really a negligible drop.
What’s more, continuing claims rose, though emergency claims fell, probably as people hit 99 weeks.
We are not anywhere near a recovery.
From a purely tactical perspective, the idea that a thousand-to-one prisoner swap makes sense before final status negotiations is stupid.
I’m don’t begrudge the actions of his family, and their obvious happiness over the release of Gilad Shalit after 5 years, but I think that this will, in the long run, make things worse, not better.
It strengthens the role of hostage taking, as Hamas has explicitly stated.
I’m not a fan of Benyamin Netanyahu, and perhaps this colors my assessment of these developments, but I see this as a political hail Mary pass* by the Israeli PM.
Recently, Netanyahu’s political popularity has been scraping the bottom of the barrel for some time, witness the tent demonstrations in Israel, and my expectation is that he will call for new elections while whatever popularity boost he had gotten remains.
*Pun not intended.
Another day, another sell-out deal from Iowa Attorney General Tom Miller and the Obama administration:
Talks between U.S. states and top banks over mortgage abuses are nearing agreement on a major sticking point that has bogged down settlement negotiations for more than a year.
…………
Under the proposed terms of the settlement — which could total $25 billion — banks would get broad legal immunity from state lawsuits in exchange for refinancing underwater loans, those mortgages where borrowers owe more than their homes are worth, the sources said.
…………
Banks have been holding out on a multi-billion-dollar settlement because they wanted broader legal immunity than state attorneys general were prepared to offer.
Originally, the states were only considering immunity for shortcuts taken during mortgage servicing and foreclosures, including the so-called “robo-signing” of documents to evict people behind on their mortgages.
In recent days, the state attorneys general agreed to release major banks from claims that they made legal errors when first originating the loans, such as approving loans for borrowers without verifying any income, according to two people familiar with the talks.
In exchange, banks would agree to refinance mortgages for borrowers who are current on their payments but owe more than their homes are currently worth, the sources said.
So, as Biden notes (see vid), they are getting a (pretty lame) deal from a contractor for bad gutters, and he demands to be cleared for the roof and the gutter they put in too.
But, as Yves Smith observes, the relief, such as it is, would only apply to non-securitized mortgages (about 20% of the mortgages), and the banks get to write the deal for the homeowners, meaning more booby traps for the the people who get “relief”, and probably a waiver of private liability.
BTW, this likely f%$#s the MBS investors, because without an official investigation of the securitization process, any potential private suit will be hamstrung.
No, I’m not joking, the EU has a paramilitary force, the European Gendarmerie Force, and they have allegedly been deployed to Greece:
Did you know that the EU has its own riot police that can operate in any European country but is answerable directly to none of them? No I didn’t either.
They are called the European Gendarmerie Force (Eurogendfor) . They are based in Italy but funded and staffed by six signatory nations who are France, Italy, Holland, Spain, Portugal and Romania. However, according to the Treaty which established Eurogendfor they can operate in any EU country and are available to others who invite them to do so. The country which invites them in is refered to as the ‘Host’.
…………
What does it say if it turns out ot be true that the Greek government has ‘invited’ a quasi military riot police made of personel from other nations to operate in Greece against its own citizens. Greek police not enough? Greek military not willing to crack heads? Got to get some foreigners to do it for you?
What exactly is the difference between Eurogendfor and any other mercenary force? The Greek government could ‘invite’ any private army in. No matter how you view the status of Eurogendfor, the reality is the Greek people did not vote in favour of joining it and certainly were not asked if they wanted foreign quasi military forces to be able to operate in Greece. If this story turns out to be true then it iouwld mean that the greek government that like all governments through history that have lost all legitimacy with its own people, eventually seek military support from outside forces with which to supress its own people. Once you view it like that the word tyranny eventually enters in. And that word has extremely serious consequences.
Let’s take a step back from this. The cuts in Greece are tied up intimately with bailing out French and German banks as well as the Greek owners of Greek banks. The Greek people have been demonstrating against the bail out for months. The Greek government has ignored its people and chosen to do the bidding of the EU elite, the IMF, the ECB and most of all the banks globally.
Now it is alleged that a non-Greek militarized riot force may have arrived to enforce austerity. Whose bidding would they really be doing? Whose interests would they be serving? Could it be the banks? Have the financial class now got their own riot police who they can ship to wherever the locals try to defy them and where the local police cannot be ‘trusted’ to serve the supra-national interests of the banks?
Of course this is not how Eurogendfor is set up. I know that. But is this how it actually works nevertheless?
Obviously at this point, what we have is one blogger (at the link) who has, “checked with friends in Athens,” who have confirmed this, so this is not at the level of confirmation, and I don’t know anyone in Greece, but there is a history of such actions,* so the allegations pass my smell test.
* The history that I know of are the occupations of Latin American nations to extract debt payments in the inter-war years, which prompted Will Rogers to say, following a tour of Latin America, that he knew that he was back in the USA when he didn’t see any US Marines.
While I agree with the sentiment:
But it doesn’t have the ring of, for example, “Stop the looting, and start prosecuting.”
Bank of America is trying to take its Merrill Lynch’s dodgy derivatives division and move it to the FDIC insured bank.
Interestingly enough, this has created a conflict between the Federal Reserve (who want to green light this) and the FDIC (who oppose the move):
Bank of America Corp. (BAC), hit by a credit downgrade last month, has moved derivatives from its Merrill Lynch unit to a subsidiary flush with insured deposits, according to people with direct knowledge of the situation.
The Federal Reserve and Federal Deposit Insurance Corp. disagree over the transfers, which are being requested by counterparties, said the people, who asked to remain anonymous because they weren’t authorized to speak publicly. The Fed has signaled that it favors moving the derivatives to give relief to the bank holding company, while the FDIC, which would have to pay off depositors in the event of a bank failure, is objecting, said the people. The bank doesn’t believe regulatory approval is needed, said people with knowledge of its position.
Three years after taxpayers rescued some of the biggest U.S. lenders, regulators are grappling with how to protect FDIC- insured bank accounts from risks generated by investment-banking operations. Bank of America, which got a $45 billion bailout during the financial crisis, had $1.04 trillion in deposits as of midyear, ranking it second among U.S. firms.
“The concern is that there is always an enormous temptation to dump the losers on the insured institution,” said William Black, professor of economics and law at the University of Missouri-Kansas City and a former bank regulator. “We should have fairly tight restrictions on that.”
(Emphasis mine)
Gee, you think? Keeping banks from moving risky investments to federally insured divisions is a bad thing?
Moody’s Investors Service downgraded Bank of America’s long-term credit ratings Sept. 21, cutting both the holding company and the retail bank two notches apiece. The holding company fell to Baa1, the third-lowest investment-grade rank, from A2, while the retail bank declined to A2 from Aa3.
Moody’s DowngradeThe Moody’s downgrade spurred some of Merrill’s partners to ask that contracts be moved to the retail unit, which has a higher credit rating, according to people familiar with the transactions. Transferring derivatives also can help the parent company minimize the collateral it must post on contracts and the potential costs to terminate trades after Moody’s decision, said a person familiar with the matter.
………
Moving derivatives contracts between units of a bank holding company is limited under Section 23A of the Federal Reserve Act, which is designed to prevent a lender’s affiliates from benefiting from its federal subsidy and to protect the bank from excessive risk originating at the non-bank affiliate, said Saule T. Omarova, a law professor at the University of North Carolina at Chapel Hill School of Law.
“Congress doesn’t want a bank’s FDIC insurance and access to the Fed discount window to somehow benefit an affiliate, so they created a firewall,” Omarova said. The discount window has been open to banks as the lender of last resort since 1914.
………
In 2009, the Fed granted Section 23A exemptions to the banking arms of Ally Financial Inc., HSBC Holdings Plc, Fifth Third Bancorp, ING Groep NV, General Electric Co., Northern Trust Corp., CIT Group Inc., Morgan Stanley and Goldman Sachs Group Inc., among others, according to letters posted on the Fed’s website.
The central bank terminated exemptions last year for retail-banking units of JPMorgan, Citigroup, Barclays Plc, Royal Bank of Scotland Plc and Deutsche Bank AG. The Fed also ended an exemption for Bank of America in March 2010 and in September of that year approved a new one.
Section 23A “is among the most important tools that U.S. bank regulators have to protect the safety and soundness of U.S. banks,” Scott Alvarez, the Fed’s general counsel, told Congress in March 2008.
If Bank of America is not actually insolvent, they wouldn’t be doing this. This is outright fraud.
What’s more, the Federal Reserve is an active accomplice in this .
H/t Naked Capitalism, where Yves Smith notes:
This changes the picture completely. This move reflects either criminal incompetence or abject corruption by the Fed. Even though I’ve expressed my doubts as to whether Dodd Frank resolutions will work, dumping derivatives into depositaries pretty much guarantees a Dodd Frank resolution will fail. Remember the effect of the 2005 bankruptcy law revisions: derivatives counterparties are first in line, they get to grab assets first and leave everyone else to scramble for crumbs. So this move amounts to a direct transfer from derivatives counterparties of Merrill to the taxpayer, via the FDIC, which would have to make depositors whole after derivatives counterparties grabbed collateral. It’s well nigh impossible to have an orderly wind down in this scenario. You have a derivatives counterparty land grab and an abrupt insolvency. Lehman failed over a weekend after JP Morgan grabbed collateral.
But it’s even worse than that. During the savings & loan crisis, the FDIC did not have enough in deposit insurance receipts to pay for the Resolution Trust Corporation wind-down vehicle. It had to get more funding from Congress. This move paves the way for another TARP-style shakedown of taxpayers, this time to save depositors. No Congressman would dare vote against that. This move is Machiavellian, and just plain evil.
(emphasis original)
Evil, incompetent, and convinced of their own Objectivist virtue. Ayn Rands supermen in a nutshell.
The October 24 ish.
It turns out that Deputy Inspector Anthony Bologna, who achieved his 15 minutes of fame because of his going postal on protestors with pepper spray, is now facing disciplinary charges:
A New York police commander who pepper-sprayed protesters during the opening days of the Occupy Wall Street demonstrations last month faces an internal disciplinary charge that could cost him 10 vacation days, the police said Tuesday.
The commander, Deputy Inspector Anthony Bologna, has been given a so-called command discipline, according to a law enforcement official. Officials said investigators found that the inspector ran afoul of Police Department rules for the use of the spray. The department’s patrol guide, its policy manual, says pepper spray should be used primarily to arrest a suspect who is resisting arrest, or for protection; it does allow for its use in “disorder control,” but only by officers with special training.
The Internal Affairs Bureau reviewed the episode and found that Inspector Bologna “used pepper spray outside departmental guidelines,” said Paul J. Browne, the Police Department’s chief spokesman. He declined to elaborate.
The inspector can accept the charge and plead guilty, or he can opt for a departmental trial. Police Commissioner Raymond W. Kelly is the ultimate arbiter of punishment in such matters and has wide leeway in his decisions.
This is a nice start, but this was assault and battery under color of his badge.
DA Vance should be bringing this before a grand jury.
It may seem silly, but if you are going to protest, it’s a good idea to smarten up.
If not a suit and tie, at least something with a collar.
Don’t look like a bum:
At least until the next time that they need to be bailed out by the Treasury and Federal Reserve.
It seems that they don’t like the Volker rule:
Goldman Sachs Group Inc. (GS) and Morgan Stanley may consider dropping their status as bank holding companies to avoid expenses tied to the Volcker rule, said David Hilder, an analyst at Susquehanna Financial Group LLP.
The rule in its current form would impose costs on lenders and drive capital to non-bank market makers, causing the two New York-based firms to consider whether to stop being banks, Hilder said in a note yesterday, when four regulatory agencies issued a 298-page draft of the rule for public comment.
Goldman Sachs and Morgan Stanley were the biggest U.S. securities firms before they converted to bank holding companies after the September 2008 bankruptcy of Lehman Brothers Holdings Inc. Both became subject to regulation by the Federal Reserve and won access to central bank programs such as the discount window, which are designed to protect deposit-taking banks.
“The regulators have proposed a massive new compliance burden on banks to prove that their market-making activities are just that, and not proprietary trading in disguise,” wrote Hilder, who’s based in New York. “If these regulations are adopted in anything close to their proposed form, there will be large additional costs imposed on banks as market-makers that will not apply to market-makers not owned by banks.”
Does anyone think that the Vampire Squid isn’t going to get bailed out when they f%$# themselves up again?
OccupySesameStreet is da Bomb!
They’ve found radiation spikes in Tokyo neighborhoods:
An extraordinarily high level of radiation was detected in one spot in a central Tokyo residential district Thursday, prompting the local government to cordon off the small area, local officials said.
Radiation levels were higher in Tokyo’s Setagaya ward than in the evacuation area around the badly damaged Fukushima Daiichi nuclear plant, according to ward Mayor Nobuto Hosaka.
“We are shocked to see such high radiation level was detected in our neighborhood. We cannot leave it as is,” Hosaka told reporters.
And it’s not just Tokyo, as authorities “detected 40,200 becquerels of radioactive cesium per kilogram of sediment collected from one part of a roadside ditch,” over 8x the limit for rice fields.
H/t Barry Ritholtz, who also notes the following:
The Japanese government’s response? To stop testing for plutonium, and to tell people they shouldn’t use geiger counters to test for themselves.
The Japanese government has been caught blatantly under-reporting radiation levels in general, and Japanese professors are starting to fear for Japan’s future.
I’m feeling so much better now.