ABC News reports that the co-founder of Facebook pulls a fast one before the IPO hits the market which is expected to make him 3.8 billion dollars. Eduardo Saverin the billionaire to be, has changed his citizenship from a U.S. Citizen to move to Singapore that could reduce his tax bill to the US government on the offering.
The move would offer the Facebook founder to evade capital gains, income taxes and the whole ball of wax and an army of tax lawyers to reduce his liability to Uncle Sam. Oddly, Saverin will have to fight FACTA which is the US implementation of new tax laws that prevent tax evasion by moving accounts offshore. Unfortunately, FACTA will not be phased in until Jan. 1, 2013, but could be backdated to include people like Saverin.
Saverin a 30 year old, originates from Brazil, will make billions of dollars in a matter of one week when Facebook goes public on the stock market. Many Facebook users are planning on closing their accounts and the IRS is keeping track of Facebook employees who are planning to do the same thing, renounce their US citizenship to possibly evade taxes.
GOP Vote to Repeal Dodd-Frank Insuring More Wall St Bailouts
The House of Tea party Representatives approved a bill that passed 218 for – 199 against that would cut the amount that Wall St Banks would have to put up for a future financial crisis.
The move ensures that taxpayers would once again bailout Wall St Banks if another meltdown occurs and during this time J.P. Morgan announced it made a fatal 4.2 billion dollar loss by “sloppy book-keeping practices, bad judgment and errors” announced by their CEO yesterday. The move led by Congressman Bachus the chair of the House Financial Services Committee who said this:
““In Washington, the view is that the banks are to be regulated, and my view is that Washington and the regulators are there to serve the banks,” he said. Daily Kos
We know now who the House and its Finance Committee serve, they serve Wall Street bankers. Such an obvious statement of where Americans stand when their government protects the interests of CEO’s on Wall St that caused the demise in 2008 of a global economy.
In his own statements Rep. Spencer Bachus wants the bailouts to come from taxpayers, this is opposed to the Dodd Frank requirement that requires banks to put up a fund, in case they default again.
This move by the House continues to deregulate Wall Street and remove regulatory policies that ensure another default does not every happen again.
Daily Kos: “Now the taxpayers are back on the hook if/when the banks have another financial crisis – which given that Bachus and friends are deregulating even more is quite likely.
When you are asked how could America be in such decline and have such a negative view of the future – answer: because we learn nothing from our mistakes.
Enjoy the next bailout which Spencer Bachus is working night and day to make sure YOU, not the people responsible, pay for another big bailout to Wall Street.
Update: May 11, 2012 3:00 p.m. EST New revised estimates on Wall Street report that J.P. Morgan losses will amount to 4.6 Billion not the earlier reported 2 billion in loss. The new figures were released by CNBC as J.P. Morgan stock prices continue to fall drastically. The effects of this massive loss is connected to other stocks, investments and banks on Wall Street and London exchanges.
J. P Morgan Unregulated, Unfettered, Uncontrollable
Why didn’t regulators stop J.P. Morgan investments that were as the CEO described as : Sloppy, errors, bad judgment in hedging strategy that was self-wounding policies.
Despite the Dodd-Frank regulations, J.P. Morgan Chase still got away with manipulating investors with a 2 billion dollar loss. The J.P. Morgan losses are also hooked to Bank of America’s exposure to risk in the continued casino bets perpetrated on Wall Street even today.
The losses have severe implications of more potential losses, in this major risk that emerges from highly leveraged financial trades and instruments.
Again, and after Dodd-Frank US regulators failed to stop the scam, failed to protect investors as the bank free wheeled some shady trades. Details are not forthcoming from either J.P. Morgan or the US Reserve or the Financial Services Authority of Britain on how bad it really is with this disclosure.
Simply put, it is not enough to declare that J.P. Morgan was “my bad” and we made mistakes to the public without any safeguards in place to prevent the further monopoly game they played on Wall Street.
The case is set, for breaking up J.P. Morgan, breaking up the big banks and setting firmer regulations with deterrents, including jail time and with heavy, heavy consequences if they stray from ethical practices. The Volcker rules must be implemented or the US faces more financial instability and it spreads to a global system.
The DOJ, SEC have yet to enforce a substantial crackdown such as the criminal prosecutions of CEO’s, jail sentences, seizing assets and cutting interconnected deals with other banks. There are a whole host of deterrents that are not being utilized to make bankers think twice before committing criminal activity in the financial sector.
It is a case to break up the interconnectivity of Wall Street’s tentacles and a case where substantial criminal prosecutions should commence immediately.
Instead, most of Congress was too busy since the 2010 mid-terms, devising ways of breaking up the internet with bill after bill that threatens public privacy, not one bill was introduced to regulate the vital heart of the financial health of the US, that is Wall Street. What are they waiting for- another meltdown?
Even Bernie Maddoff Knew about J.P. Morgan
J.P. Morgan was one of the major players in Bernie Maddoff’s ponzi scheme in 2009. Maddoff points out that regulators and JP Morgan failed to stop 100 billion dollar transactions went unnoticed and predicted HSBC, UBS and J.P. Morgan were going to have big problems. The Volcker Rule figures prominently in regulating Wall Street gambling.
The signals about J.P. Morgan came in 2007 well before the Meltdown and the Federal regulators SEC, didn’t catch this:
Senior executives at JP morgan knew of Bernard Madoff’s ponzi scheme and ignored it.
J P Morgan Ponzi Scheme on Wall Street Could Hurt Romney’s Chances
After the revelation that Mitt Romney funded the seed money for his son Tagg’s venture with The Stanford Group’s ponzi scheme, today a bombshell from JP Morgan infects Romney’s political campaign again. Mitt Romney has very strong ties to Wall Street investors, bankers and fund managers and of course there is that issues about his time at Bain Capital.
Romney has quite a few financial problems here, that are becoming more than burdensome to his bid for the Presidency and they cannot be swept under the rug.
Romney refuses to release his tax returns for another six months, and release all returns for the past 10 years as his father did when running for President. Mitt Romney is refusing since it would show his Iran oil investments, and Jewish voters would not be very happy. Romney and his son Tagg’s partners the
Then there is the Stanford Group ponzi fiasco of bilking 50,000 of investors who have not recovered their investments in a scheme of imaginary values in their investment portfolios. The investors are all over the world, for Pete’s sake!
Romney and his son Tagg were partners in a world of fraud with the Stanford International Bank, Stanford Capital Management and the Stanford Group. Romney’s chief fundraiser is also involved, Mr. Spencer Zwick who ties the politics of these dealings in with the finance peddlers on Wall Street.
In 2009 when the SEC uncovered the 8 billion dollars worth of certificates of deposit that were sold under these three companies, headed by R. Allen Stanford the whole scam was unraveled.
When he was found out, Allen Stanford attempted to liquify 178 million dollars from his bank accounts. Stanford is only out done by Bernie Maddoff who made off with a whopping 50 billion dollars in a fraudulent ponzi scheme of imaginary, faked investments.
It would be a hard sell if Romney’s determination to repeal Dodd-Frank protections becomes a key campaign issue for American voters, that he would actually go back to the pre-2008 deregulation of President George Bush.
J. P. Morgan- a Pioneer in How Wall Street Manages Risk
The JP Morgan losses could not have come at a worst time for Romney’s campaign hopes. If you look at JP Morgan’s prospectus, they claim to be a:
“pioneer in the use of credit derivatives, financial instruments that are changing the way companies, financial institutions and investors in measure and manage credit risk”.
Today, J.P. Morgan announced it has lost investors another 2 billion dollars in bad debts and their loss is so great they can not dump the bad transactions, without sending the markets into a tail spin again. It does make the case for “Too Big To Fail” back to haunt us again and it does illustrate the need to toughen up the regulations with some jail time for these Wall Street CEO’s.
After the 2008 crisis, business continued on as usual on Wall Street, even after the watered down -full of holes Dodd Frank Bill which does absolutely nothing to prevent faulty credit swaps. The bill has no teeth. The Dodd Frank Bill is a dud, and does not regulate the bets on bets on bets scheme that is tearing down any financial stability left on Wall Street if you can call it that.
The CEO of J.P. Morgan Jamie Dimon admits his failures, the ” poorly executed, many errors, sloppy -poorly monitored trades…yadda yadda yadda…we’ve heard it all before excuses. But now it is time for all good men to -break up the big banks into smaller units, smaller chucks that when one falls the others do not go down with it.
And so now comes the time to perform surgery on Wall Street, with a scalpel and dissect the power broker playground into tiny bits once and for all, cut the head off of this behemoth monster to save the body. Mr. Mitt Romney may just go falling off the radar with his blackened reputation along with the decay of Wall Street.
Bristol Palin Sets A Good Example for Parenting Slams Gay Marriage
The news of President Obama’s support of gay marriage, rather than civil unions as he previously believed would be sufficient, has drawn predictable critics from the republicans.
Bristol Palin slams both Glee and President Obama on Gay Marriage
On many levels, gay marriage is already an institution in other countries and the sky didn’t fall down, the earth did not quake and straight couples are not threatened by gays getting married. The majority of evolved citizens, do not have issues with other people’s marriages, in a normal world.
The fact remains that gay people pay taxes into a system which supports homophobia, with a very hostile environment toward them. Opposition towards gay marriage is a religious issue, which transcends equality in the USA, a country that brags about democracy.
One such family, the Palin family are quick to criticize any policies that democrats approve of and in their faked outrage makes statements like this from Bristol Palin:
“Sometimes dads should lead their family in the right ways of thinking. In this case, it would’ve been nice if the President would’ve been an actual leader and helped shape their thoughts instead of merely reflecting what many teenagers think after one too many episodes of Glee.”
““While it’s great to listen to your kids’ ideas, there’s also a time when dads simply need to be dads,”
““In this case, it would’ve been helpful for him to explain to Malia and Sasha that while her friends parents are no doubt lovely people, that’s not a reason to change thousands of years of thinking about marriage. Or that – as great as her friends may be – we know that in general kids do better growing up in a mother/father home. Ideally, fathers help shape their kids’ worldview.”
Ms. Palin is referring that President Obama was receiving hints from his two daughters to lighten up when it came to gay rights and perhaps this is what made him admit that he now supports gay marriage.
This comes from a teenager who had a baby, and did not marry the father of her child. Such hypocrisy from the Bristol, considering her son is dad-less.