Really Mr. President? None of the following is illegal?
Laundering drug money. Wachovia admitted to doing it in court.
The former chief risk officer for Citifinanc
ial testified under oath before the FCIC that the company knowingly sold loans on to investors that did not meet their quality guidelines and published claims. In fact, he testified that by 2007 80 percent of those loans were defective.
Ponzi Schemes [...]
by Robert Murphy, Marketwatch
SAN FRANCISCO (MarketWatch) â€” The Financial Crisis Inquiry Commission issued its finding that the devastating economic events of the past few years were â€œpreventable.â€ The FCIC heaped the blame on many parties, but drew the wrong conclusion when it faulted the government and Federal Reserve for lax oversight.
On the contrary, the government and Fed encouraged the bubble and crash, and current policies are [...]
On Feb. 14, 2008, the Office of the Comptroller of the Currency sent a seven-page letter to Citigroup Inc.â€™s chief executive, Vikram Pandit, summarizing the results of a special supervisory review its bank examiners had recently concluded.
The gist of the regulatorâ€™s findings: Citigroupâ€™s internal controls were a mess. So were its valuation methods for subprime mortgage bonds, which had spawned record losses at the bank. Among other things, â€œweaknesses were [...]
JP Morgan Chase CEO, Jamie Dimon
Jamie Dimon, chief executive officer of JPMorgan Chase & Co., has harsh words for Fannie Mae and Freddie Mac. They are â€œthe biggest disasters of all time,â€ Dimon told the Financial Crisis Inquiry Commission last fall, according to his just-released interview.
Along with others, Dimon greatly exaggerates the role Fannie and Freddie played in the financial crisis, a theme my MIT colleague, Daron Acemoglu, has written [...]
Following loud complaints by Zero Hedge over the weekend about the retention of Bernanke’s FCIC testimony from the public’s eye, yesterday the commission caved and agreed to release Bernanke’s November 17, 2009 89-page closed session confidential transcript, in which, among other things, Bernanke complains about the… blogosphere. Arguably, among the most amusing comments are the circumstances which bring Bernanke to lament the surge of [...]
by Gerald Pechenuk
Wall Street’s effort to bury the Financial Crisis Inquiry Commission’s (FCIC) final report has not stopped its sales.
Commission chair Phil Angelides is doing his part in putting the report before the American people, this time penning an op-ed for the Sunday (Feb. 6) Sacramento Bee. Reform of our financial system is not assured by the Dodd-Frank law, Angelides [...]
The housing bubble collapse, not over-leveraged banks, brought global financial markets to their knees in 2008. The FCIC’s 662-page report, which blamed risky investments and lax regulations, looked at the sidebar instead of the main story, economist Dean Baker argues.
The Wrong Crisis
by Dean Baker
Most economists and financial experts would give the banking system in Spain high marks. It is well regulated and well capitalized. In September [...]
Tuesday, senior S&L regulator William K. Black slammed the FCIC for failing to call out fraud. As told the Real News:
* The Commission was unwilling to use the “F” word (“fraud”)
* “They’ve drawn the picture of the horse, but they refuse to call it a ‘horse’”
* The Commission’s conclusions could only have occurred with fraud by the most senior ranks of the big banks
* They made millions of liars loans, [...]
Despite examples of the success of restructuring with F and even General Motors, the invidious cowards who inhabit Washington are unwilling to restructure the largest banks and GSEs. The reluctance comes partly from what truths restructuring will reveal.
Indeed. Were we to actually open the box and have a look inside, we would find chocolate-covered dog @#$%&!. Lots of them. We would discover that they were intentionally brokered and sold to [...]
Although it has NEVER been reported by the press, things are turning out like many of us tin foil conspiracy nuts figured they would turn out; the big failed banks, using money forced out of the taxpayers’ hands, are buying up all the other banks. Yes, the bankster controlled USG has moved beyond corporatism, and has evolved into [...]
1. In 2007 Go1dman created a $2 Billion Package of Mortgage Loans called ABACUS, one of many.
2. Goldman invited clients to BUY Abacus Package of subprime loans made the last 18 months.
3. If people paid those mortgages house payments, then Abacus Long Investors would make money.
4. Go1dman told investors Abacus loans were chosen by ACA Management LLC but that was a G0LDMAN L1E as Hedge Fundster John Paulson hand picked [...]