Tag Archives: AIG

S&P Under A Microscope by U.S. Dept of Justice

S&P Under a Microscope by U.S. Dept of Justice after what many describe as a decade of corruption by the US major credit agency owned by McGraw-Hill the parent company.

News that Standard & Poors is being investigated was leaked out within the last 24 hours regarding how they could possibly have rated US Wall Street Banks such as: AIG, BOA, Goldman Sachs with Tripe AAA Ratings while they were pulling a scam before the 2008 Meltdown.

The reason being that they knew or must have known or ought to have known what kind of paper the Banks were selling- unsecured debt.

 

2008 Melt Down

 

In the credit business, no one lends you a mortgage unless you can back up the loan with assets, unless you live at the casino on Wall Street. Any credit agency worth their salt does their due diligence and before they write up a glowing Triple A Report on which others make decisions of borrowing or lending from these institutions, they do their homework. 

It is obvious, painfully obvious that Standard and Poors did no such homework or investigations to base their ratings on the Wall Street banks that went down.  Even to the novice, it all seems connected to Standard and Poors ratings or the ponzi scheme would not have continued all through the eight years of George Bush’s administration of deregulating banks.

The embarrassment of the Security and Exchange Commission who were also asleep at the switch continues in obfuscating their role as a safe guard of the US financial system they failed miserably as well.

This all leads up to the present day volatility in that, President Obama did not go after Wall Street, like he said he would during his 2008 campaign and has yet to put anyone behind bars. If the DOJ were truly serious, and Obama wishes to run for another four years, he cannot leave this behind him and must act now. 

Real punishment is the only deterrent against a runaway financial system that is so tragically corrupted and flawed it cannot continue on its present course.  Obama has to lay down the law, like they do down in Texas, where Rick Perry presides over 40 percent of the executions.

The people of America want justice so badly, they are willing to throw Obama under his Canadian million dollar bus, if he doesn’t start acting like he cares about getting the crime out of Wall Street.

 

2011 Meltdown

It is happening all – over – again now.

All of the CEO’s responsible for the 2008 meltdown  are still in their executive offices overlooking the New York skyline from the million dollar posh offices and not one of these crooks was punished.  In fact, they stole more money on their own investments than they could quickly transfer to offshore accounts in the Bahamas and Cayman Island banks.

Photo: The Banksters

Wouldn’t any red blooded American be angry that these greedy guilty banksters are running free to do more harm to the global banks?

Why isn’t Obama going after these greedy capitalist criminals and take them down like Enron?  Just like capturing and killing terrorists outside of the US, Obama must also put his hand to getting rid of the terrorists from within.

These multi-billionaires that in 2008 lined their own pockets while destroying the economy which in turn destroyed the middle class, causing foreclosures and job losses.  Their next major goal is to see how big a Christmas Bonus they get this year.

 

Moody’s is also under investigation for the same fraudulent credit ratings of 2007 where paper traded hands and was sold that wasn’t worth the ink on it.If both of these companies had of done their job, diligently the Wall Street fiasco would have never happened and they played a pivotal key role, in the financial collapse that affected the world.

Since that time in 2008, the world was just getting back on its feet slowly and S&P once again is in the frey and played a major role in pulling the strings that girated the world markets down to the ground again forcing another recession. The credit rating down grade was irresponsible and many financial experts said it was unwarranted especially during  a recession.  The reasons are politics and greed.

The Damage Continues in 2011

S&P Under A Microscope by U.S. Dept of JusticeThe Banksters Responsible for the Financial Collapse of the United States of America

 

 

 

Banks to Fight New Obama Regulations

The failure of the Bush administration to regulate the banking, financial and insurance industries is an uphill battle for the Obama administration. Now that banks have skirted a financial meltdown they feel emboldened to also fight government regulations.

Wall Street Banks Fight off New Regulations
Wall Street Banks Fight off New Regulations

Although the G-20 Summit in March demanded stricter US banking policies regarding the phony credit default swaps which brought the world economy to its knees Wall Street is prepared to fight regluatory policies to eliminate the possibility of it happening all over again.

JP Morgan, AIG, BOA and Goldman Sacks have created a lobbyist group called CDS Dealers Consortium which comes after they all accepted bailout money from the US treasury. Taxpayers dollars were poured into the banks to give them liquidity and a chance to fight off bankruptcy all around however the banks are hiring high powered brokers to fight new legislation and influence politicians.

Timothy Geithner plans to make the trading of derivatives less free and with more accounting and banks of course would rather not disclose privately managed clearinghouse transactions.  Geithner’s plan is flawed because it leaves loopholes for the banks to start trading phony paper all over again.

Congress would have to pass such new laws and under scrutiny very restrictive laws need to be in place to prevent a world financial disaster of mega proportions which of course affects other countries.

It appears the banks and Wall Street want to go back to -the good old days and start their ponzi schemes all over again due to the enormous gains these bank CEO’s all made- they will ultimately try it again.

TAGS: Wall Street Ponzi Schemes Continue, Geithner plan flawed, Obama Administration, New banking regulations, Congress, CDS Dealers Consortium, Goldman Sacs, BOA, AIG, Wall Street schemes, G-20 Summit.

AIG -The Evil Empire Strikes Back

AIG-The Evil Empire Strikes Back The cream rises to the top and so does the blame for AIG and Congress must take responsibility for the lack of oversight on Wall Street Banks.
The lawsuit launched by AIG signifies the greed, and new symbol of AIG stands for: 
Arrogance, Incompetence and Greed as AIG is now called started this decline into insane greed not just a year ago. For a decade or two before this capitulation into the gold metal for Greed on the planet AIG has been criminally evading taxes and corruption runs rampant since its founder started the credit swaps.
 
AIG launched a lawsuit for 306 million dollars several months for tax payments related to offshore tax havens in the Cayman Islands amongst other Caribbean offshore bank accounts. It is tempting the Obama administration for a complete take over and this is not socialism for those Republicans who like to sling that word around. This is for the safety of the monetary system and stability. Many countries “own” their banks, and by this method they “own” their security.
 
Only a foolish government would be held ransom by its own financial institutions for any sanity to regain the stock market this must be a reality before too long.
 
Oddly enough the bank accounts in the Dutch Antilles are also named as tax havens and that relates back to the Deutsche Bank -which has remained a strong player in the AIG corruption.

The financial soundness and integrity of the US monetary system now stands defeated in the midst of a recession where AIG has the government by the throat -threatening law suits for taxes on offshore tax shelters.  With the US government owning 80 percent of the AIG shares it would serve the government to demand the return of the bonuses stolen from the bailout of AIG money.

President Obama has the authority to take over AIG and therefore insure its stability and fire all executives and replace them with those from non-related financial companies.  Executive compensation for failures, for scams of the derivatives and now for shell offshore bank accounts with fictional names mostly owned by the AIG executives directly or indirectly. The scam lawsuit now is getting to the point of absurdity with AIG suing for tax refunds on offshore bank accounts and shell companies owned by AIG.

Nothing short of a government takeover of AIG will stop the insanity in the financial markets and President Obama has every right and power to ensure the security of the financial markets that AIG is controlling at the moment.

Back in 2007, the involvement of Deutsche Bank keeps coming up in this AIG mess when David Makov helped the IRS with its investigation into “questionable offshore” bank accounts. Mr. Makov was fined 10 million dollars which is a slap on the hand when billions of dollars go untaxed from American entities.

AIG GREED AND EVIL EMPIRE

Let’s face the facts if AIG can hold the American financial system at gunpoint -it has also committed more grievous crimes as in 2007 which involve hiding their unlawful gains and the biggest fault which is tax evasion. Why do you suppose Americans earning less than even $ 100,000 a year are paying more taxes, it is because the AIG type executives are paying no taxes by evading the tax system.

Deutsche Bank has been involved in the AIG mess from the beginning and has the help of “lobbyists” such as Senator Gramm who was John McCain’s right hand swindler. Guess who is the Chief Executive of Deutsche Bank….non other than our Phil Gramm. Ironically Senator John McCain is squelching and lobbing hard balls at President Obama instead of his own Campaign manager -Gramm the swindler who loses money and has lobbied for which is involved in the AIG corruption.

Back in 2007 while George Bush was President there were 17 other defendants from KPMG were also charged with fraud, tax evasion and making false statements to the IRS.

The charges at that time in 2007, involved the non-payment of 2.5 billion dollars in taxes and the named defendants were: Mr. Makov, Robert Pfaff, and John Larson of KPMG whom in the 1990’s sold “Blips” which were tax shelters even for their own incomes. The BLIP tax shelters earned these three stooges about 130 million dollars income. KPMG ultimately paid 456 million dollars in fines which was a drop in the bucket of what they got away with in tax shelters for clients.

The abuse has gone on for years and has come to a abrupt halt because the average American worker is objecting to their tax dollars being used to bail out these thieves. The only recourse is to fire these people and start naming names because they deserve to be exposed to the public. Of course the safest place for these individuals would be a nice cold jail for the rest of eternity.

It appears that AIG has become the “Evil Empire of Greed” which pumps out false tax statements, generates illegitimate losses, asserts investment schemes and ensures invalid mortgages. While stealing tax payers dollars and enjoying all their greed in the face of abject poverty of Americans prosecutors are making a case of the likes of these bozo’s who continue to fight any attempt at taking their bonuses and taxing taxpayers dollars. The gall is unprecedented and as the world watches the corruption continue in the US money markets their faith in the US recovery grows dimmer by the day. The only way out is for a government take over of AIG and now.

The complete abuse of power that AIG wields must now be hauled into control by the only means necessary by the Obama administration and that is a complete take over of AIG and its subsidiaries.

Phoney default swaps – indeed.

 

Retention Bonus-Obama says No Bonus-or No Bailout

Retention Bonus -Obama says No Bonus or No Bailouts

Retention bonuses means basically a bribe to an executive so they will stay on with a company and is not tied to performance in any way.

The executives of AIG is holding taxpayers dollars ransom threatening lawsuits if they do not receive their bonuses from the 170 billion dollar bailout. The American public is outraged at the executive bonus payments when these very same executives ran the AIG company into the verge of bankruptcy.  While threatening the stability of the financial markets they are holding a gun to the government and stealing tax payers dollars.

If the bailout funds are going to salaries and bonus money that is not what it was intended and the government must instill demands that the money be used for consumer loans.  The taxpayers see this as rewarding failure and in an economic recession caused by AIG by playing a shell game with derivatives the Obama administration needs to renegotiate these funds or else lose the faith of the voters.

Even some democrats are raising this issue as totally unacceptable with 9.6 million which is going to the top 50 AIG executives. The puzzling factor in all of this is the fact that they are rewarding failure and performance bonuses would only apply if the company had profits which it does not.  The real performance of AIG has been a total calamity and the rapid decline of consumer credit.

AIG is not owned by the executives and the US government is the majority stockholder which owns 80 percent of the company. As Timothy Geithner the head of the US Treasury pressures AIG into tying the millions of dollars going to executive compensation the economy continues to spin downward in this never ending money pit of AIG.

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As Edward M. Liddy states the compensation is needed to keep talented executives employed at AIG, is preposterous since these are the very persons who perpetuated the derivatives scam.

The lawmakers in this case are using very weak laws and slaps on the hand to these buffoons who call themselves executives while stealing bonuses for failure.

One AIG executive is set to receive 6.5 million dollars -for what? It might explain the junkets to Vegas, the hunting trips in England and the lavish office remodels to the tune of 1 million dollars that these executives will not lose their lifestyles.

Rather they would not wish to live the live of Americans who are losing their jobs and homes over AIG’s mistakes.

Tags: AIG, Bailouts, Liddy, Geithner, Retention Bonus -No Bonus or No Bailouts Bonus, US Treasury,  executives of AIG, derivatives, consumer credit, AIG executivves.

Waxman’s Weak Memo To Wall Street

October 28, 2008

Mr. John G. Stumpf
Chief Executive Officer
Wells Fargo & Company
420 Montgomery Street
San Francisco, CA 94104

Dear Mr. Stumpf:

Earlier this month, the Treasury Department announced plans to invest $125 billion of
taxpayer funds in nine major banks, including yours, as an emergency measure to rebuild depleted capital. According to recent public filings, these nine banks have spent or reserved $108 billion for employee compensation and bonuses in the first nine months of 2008, nearly the same amount as last year.

Some experts have suggested that a significant percentage of this compensation could
come in year-end bonuses and that the size of the bonuses will be significantly enhanced as a result of the infusion of taxpayer funds? According to one analyst, “Had it not been for the government’s help in refinancing their debt they may not have had the cash to pay bonuses.

Mr. John G. Stumpf
October 28, 2008

Page 2

Press accounts report that the size of the bonuses could exceed $6 billion at some firms receiving federal assistance.

While I understand the need to pay the salaries of employees, I question the
appropriateness of depleting the capital that taxpayers just injected into the banks through the payment of billions of dollars in bonuses, especially after one of the financial industry’s worst years on record.

As one newspaper recently reported, “critics of investment banks have questioned why firms continue to siphon off billions of dollars of bank earnings into bonus pools rather than using the funds to shore up the capital position of the crisis-stricken institutions.

To assist the Committee’s investigation into this issue, I request that you provide the following information and documents for your company as well as any affiliates or subsidiaries:

1. For each year from 2006 to 2008, the total compensation and average compensation per employee, paid or projected to be paid to all personnel, broken down by salaries, bonuses(cash and equity), and benefits; and a description of the reasons for the year-to-year changes in these amounts.

2. For each year from 2006 to 2008, the number of employees who were paid, or are
projected to be paid, more than $500,000 in total compensation; the total compensation paid or projected to be paid to these employees, broken down by salaries, bonuses (cash and equity), and benefits; and a description of the reasons for the year-to-year changes in these amounts.

3. For each year from 2006 to 2008, the total compensation paid or projected to be paid to the ten highest paid employees, broken down by salaries, bonuses (cash and equity), and benefits; and a description of the reasons for the year-to-year changes in these amounts.

4. Documents sufficient to show all policies governing the granting of the bonuses to the groups of employees referenced in items (1) to (3).

Please produce the requested information to the Committee no later than November 10,
2008. To the extent that 2008 year-end bonuses have not been finalized by that time, you should notify the Committee as soon as those bonuses are determined and supplement your response with updated information and responsive documents.

October 28, 2008

Page 3

The Committee on Oversight and Government Reform is the principal oversight
committee in the House of Representatives and has broad oversight jurisdiction as set forth in House Rule X. An attachment to this letter provides additional information about how to respond to the Committee’s request.

If you have any questions about this request, please ask your representatives to contact
Theodore Chuang or Alison Cassady of the Committee staff at (202) 225-5420. Thank you for your cooperation.

Sincerely,
~Q.~
Henry A. Waxman
Chairman
Enclosure
cc: Tom Davis
Ranking Minority Member

Tags: Waxman’s memo to wall street, Executive Compensation, Wall Street Ponzi Scheme, Weak Democrats, Derrivative ponzi scheme, AIG, Goldman Sachs, politicol News, politics, news media.

Republican Executives Playing with Your 700 Billion Dollars

Richard Fuld being scolded by investors after testimony. Secretary Treasurer Henry Paulson is himself a billionaire.  Maverick Republicans on Wall Street with Your 700 Billion Dollars.

The taxpayer is shelling out and its not even Halloween, is this a trick of Wall Street on the taxpayers who is so generously lending AIG another 37.8 billion cash for undisclosed reasons.

AIG already has received a 85 billion dollar loan from last month and this makes 122.5 billion in bailout cash for AIG alone. The executives of AIG treated then treated themselves to a spa week in California with 100 insurance agents slurping up booze, manicures, luxury meals and rooms blowing $ 440,000.00 at the St. Regis Resort.

Meanwhile taxpaying homeowners being thrown on the street and losing jobs are facing a bleak economy that is projected to be years away from recovery.

CNN’s Anderson Cooper has compiled a list of the top “Ten Most Wanted” Executives who spent our taxpaying dollars lavishly while investors and homeowners are suffering great financial losses. The term Maverick is taking on a whole new meaning in the biggest bailout in US history
at the hands of people like Richard Fuld, and his cohorts.

Richard Fuld CEO of Lehman Brothers has been subpoenaed along with 12 more top Lehman executives by federal prosecutors who are investigating the collapse of the company. Chief Financial Officer Erin Callan has also been served who has now accepted a job perhaps he is a lobbyist for Credit Suisse Group a foreign bank.
Prosecutors also subpoenaed another former president who’s name is Joseph Gregory as well as other executives.
Recently another excursion to a hunting chateau in Europe for the Wall Street executives who are intentionally ignoring the plight of people who’s lives they have greedily destroyed in the fall out from bad investments and worthless derivatives.

Prosecutors are looking into whether any person at Lehman or collectively the management of Lehman mislead the investors about the true value of the company’s assets.

The press release from prosecutors are also inquiring on whether accurate values were placed on the large commercial real estate holdings of Lehman. This whole scheme is beginning to sound like Enron all over again only different players and more serious financial scams.

Mr. Fuld Jr., left Lehman with 60 million cash, 250 million in benefits, and more options on stock. Mr. Fuld was getting very, very rich off of Lehman while the company’s worth was being overstated he was squandering the companies funds and putting it in his own bank account. Mr. Fuld took over 500 million dollars out of Lehman before it went bankrupt and now enjoys his 14 million dollar ocean front house in Florida, plus the summer home in Sun Valley and Fuld loves to see his million dollar art collection from time to time.

Mr. Fuld who is by far the man that grabbed the most from his enormous salary and benefits has enjoyed the high life with other people’s money and self righteously feels entitled to your money. Mr. Fuld Jr., statement thus far is “it’s not my fault” and Mr. Fuld is full of it.

Is throwing 700 billion dollars into the hands of the same people really going to stop this corporate greed because it seems like its business as usual for the high life Wall Street Republicans.

As soon as AIG was given the additional 37.8 billion dollars the went on a hunting trip to England spending another $86,000.00 for luxury dining, hotels, and of course a fox hunt in the English countryside. I am sure some taxpayers would enjoy such extravagances in their lives and have some fun instead of having their homes taken away. While the company states they will stop all “nonessential conferences” that do not maximize value and service given the current conditions of the economy. The Whitehouse said it was “dispicable” but said nothing else.

TAGS: 700 billion bailout, Wall Street, Richard Fuld Jr., Richard Fuld CEO, Lehman Bros., Ten Most Wanted, Wall Street Republicans, Wall Street executives, AIG, taxpayers, Wall Street collapse, John McCain, Wall Street greed, St. Regis, Corporate executives trip to St. Regis,

Picture courtesy of : Susan Walsh, Associated Press.

Bail Out Attracts Loan Sharks on Wall Street

Bail Out Attracts Loan Sharks on Wall Street

Christmas Comes Early- Wall Street Bailout and Executive Bonuses

All sorts of weird loan sharks are coming out wanting a piece of the 900 billion dollar bailout package that The Secretary of the Treasury Mr. Henry Paulson would like to serve up on Wall Street.

The money is all for the taking of any tom, dick or harry that wants into the free money can get it and that includes banks that are underfunded lacking capitalization.

The Sharks are out for Blood and Free Money

Bail Out Attracts Loan Sharks on Wall Street

Yes, boys the free money is flowing again and this time its the stupid taxpayers that are on the hook, so no worries we don’t even have to pay it back!  You can hear the loan sharks circling the victims who are bleeding in the streets, losing their homes to foreclosure, losing investments, pensions, 401K’s and that’s just for starters.  The jobs lost will be the final blow to the US economy and the dollar will drop like a stone.


Bail Out Attracts Loan Sharks on Wall StreetBail Out Attracts Loan Sharks on Wall Street-Merry Christmas I got my Bonus!!

Other economists have weighed in on this US financial bailout and indicate that the US Secretary of the Treasury is dead wrong in bailing out the institutions and not the core clients and that would be the homeowners who lost their homes.

Not all borrowers lied about their income on mortgage applications, the majority were earnest people who wanted a home but lost a job or both income earners lost their income. 

Bail Out Attracts Loan Sharks on Wall Street

Experienced economists also state that rewarding people for mistakes is setting a precedent for further abuses, and Paulson wants the bailout to be without any changes that would hold the CEO’s responsible with no rewards of bonuses mentioned.

Bail Out Attracts Loan Sharks on Wall Street

The TARP plan also fails in the respect of that it was the Bush government intervention that deregulated the financial markets -and that failed on his watch.

It is now the same Bush government that wishes to intervene again which does not relate to their “free market” principals and will also fail to resuscitate the economy.

A bail out directed to the core that is the homeowner borrowers would be far less expensive in the long run that this massive outlay of cash to the institutions.

In addition you are putting the money back in the hands of the people that abused it and there is a matter of distrust with those individuals if they go unpunished they will do it again.

Barack Obama happens to be right in that you just do not hand over a 900 billion dollar check to the dummies who screwed up in the first place!

How stupid does Bush think people real are, with his theory of “trickle down debt”. The taxpayer is on the hook for the government’s mistakes and its not going down too well.

This bailout is being present in a hasty manner and under duress of foreclosures which are at the heart of the problem. If you gave judges the power to re-negotiate the loans on foreclosures you could clean up this mess pretty darn fast, without this massive bailout to the wrong institutions.

AIG should be sold off in pieces and their derivatives should bring jail sentences not golden parachutes, especially one Maurice Greenberg. Enough is really enough of this nonsense.

One feels that Paulsen and the Bush administration are total and colossal failures who should be removed from damaging the economy any further.

No Republican should ever hold the highest office of the country especially those who are so inexplicable involved in the corruption that has permeated this country for the last eight years coupled with the invasion of Iraq costing 120 billion a year.

Iraq sells gas for five cents a gallon, has a surplus of 198 billion dollars this year, and has a national free healthcare program for every citizen. Perhaps John McCain should run for the Presidency of Iraq.