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Posts Tagged ‘Big Banks’

SEC to sue Goldman Sachs

April 20, 2010 1 comment

The gentle art of suing Big Guns

SEC’s decision to sue Goldman Sachs, brings to an end, a long drama.

In August and September of 2008, 2ndlook was calling for investigations into the collapse of Bear Sterns, Lehman, et al. When the Great Recession was not real – and only a fear. While Preet Bharara was busy building a flimsy case against Rajarathnam? When Bharara should have been investigating Hank Paulson, the Former Treasury Secretary, under whose watch many bankruptcies happened. Conveniently in favour of JP Morgan and Goldman Sachs. Even now, this investigation,

To say that it comes at an awfully convenient time for President Barack Obama’s Democrats is a colossal understatement.

With mid-term elections just a few months off and the U.S. Congress set to debate a massive financial regulatory reform package — one that Wall Street lobbyists and their pals in the Senate have been fighting every step of the way — the suit offers tailor-made reformist ammo for Obama & Co.

Birds of feather

Khuzami tells us that Goldman Sachs is cared. Tell that to the birds!

Khuzami tells us that Goldman Sachs is cared. Tell that to the birds!

By sending a notice to Goldman Sachs, in July 2009, SEC gave enough time to Goldman Sachs to enable them to prepare adequately for an extended court-room battle. Businessweek  writes about three issues,

Robert Khuzami, shortly after becoming the Securities and Exchange Commission’s enforcement chief last year, told Congress the agency must be willing to fight big cases to show it poses a “credible threat.”

Does Khuzami think that SEC scares Goldman Sachs? With the kind of money power that Goldman Sachs has, it can manage a battle with SEC for an entire generation. What SEC’s action will do is scare the likes of the co-accused in the Rajarathnam case. Extremely small fry. Even Rajarathnam was  not scared of SEC. Minions – that is who Khuzami is trying to scare.

European regulators are following the SEC’s case. Britain’s Financial Services Authority said today it will start a formal probe of Goldman Sachs’s London unit. BaFin, Germany’s financial-services regulator, is requesting information from the SEC about the case.

Big Business loves regulatory overload. It kills competition!

Big Business loves regulatory overload. It kills competition!

Win over voters. Avoid charges of collusion. Shake the money tree. Gordon Brown has a tough election to win. In the middle of the Great Recession, the German Government needs to show ‘resolve.’ In the meantime, AIG has also decided to try a shakedown.

The SEC’s Republican commissioners, Kathleen Casey and Troy Paredes, opposed the lawsuit against Goldman Sachs, which was approved in a 3-2 vote, two people with knowledge of the matter said yesterday.

Nobody’s ‘tellin’ but everybody knows. Big business and Big Government. That is the axis on which ‘progressive’ economies of the world are being built – and depend on. Or become a large public-sector enterprise – like Europe has become. This is the regulation gambit.

Government’s impose regulation to eliminate the small players – who cannot bear the regulatory overload and compliance costs. More regulation helps the big players – and big players have the financial and bureaucratic muscle to manage excess regulation.

The trouble with Hank

Was Hank Paulson making it easier for his ex-employer Goldman to buy up competitors? Was he helping out JP Morgan with WaMu and Bear Stearns? It was well-known that JPMorgan Chief, Jamie Dimon had long drooled over WaMu. While a lot of stressed organizations were getting support, Hank Paulson allowed Lehman to go under! JPMorgan was being blamed for Lehman collapse.

US bank JPMorgan Chase stands accused of precipitating the collapse of American investment bank Lehman Brothers by freezing Lehman assets days before it filed for bankruptcy protection, the Sunday Times reported.

After 60 Days

Was Paulson looking at his own future, while deciding on the future of Bear Stearns, Lehman Brothers, WaMu? How 60 days later, when he would need a new job! Was the collapse of Lehman, a deal for a job with Goldman – or was it JP Moran Chase? While a lot of people were getting support, Paulson allowed Lehman to go under!

I wonder why?

Transparency International does not call this corruption. But then, that is par for the course!

Been there and done that

In a democracy, people have choice!

In a democracy, people have choice!

This is very similar to Joseph Kennedy’s shorting the market before The Great Depression. It has always been a source of wonder to me how could Joseph Kennedy, a bootlegger and a friend of the mafiosi become SEC Chairman? And after that, could the Great Depression not follow?

It was always 2ndlook’s suspicion that Hank Paulson’s behaviour in the Lehman collapse is similar to Bootlegger Kennedy’s behaviour. And this now coming out all in the open!!

The biggest bankruptcy in history might have been avoided if Wall Street had been prevented from practicing one of its darkest arts.

As Lehman Brothers Holdings Inc struggled to survive last year, as many as 32.8 million shares in the company were sold and not delivered to buyers on time as of September 11, according to data compiled by the Securities and Exchange Commission and Bloomberg. That was a more than 57-fold increase over the prior year’s peak of 567,518 failed trades on July 30.

The SEC has linked such so-called fails-to-deliver to naked short selling, a strategy that can be used to manipulate markets. A fail-to-deliver is a trade that doesn’t settle within three days.

“We had another word for this in Brooklyn,” said Harvey Pitt, a former SEC chairman. “The word was ‘fraud.’” (via Naked short sales hint fraud in bringing down Lehman).

Back then in 2008, first, the world was hit by Big Oil at US$150 per barrel. As though that  was not enough, came the Big Banks! After Big Oil and Big Banks, we will have the pleasure of getting the The Big Lie!

Goebbels is alive, well and kicking. All of us.

Italian capitalism … French Capitalism .. German Capitalism …

May 13, 2009 3 comments

To hide the empty cupboard, new ‘isms’ and fresh ‘cracys’ are paraded. E.g. Crony capitalism, State capitalism and so on. As these balloons lose height, a new balloon is launched.

More than outsourcing, it a question of being competitive  |  Cartoon titled CEO Nightmare  on October 9th, 2008 by Barry Deutsch  |  Click for image.

More than outsourcing, it a question of being competitive | Cartoon titled CEO Nightmare on October 9th, 2008 by Barry Deutsch | Click for image.

The Agnellis were more than Fiat’s controlling shareholders. They have been the de facto royal family of Italian capitalism. Gianni Agnelli, the patriarch who died in 2003, was at the centre of a web the cross-shareholdings that gave a small group of entrepreneurs and bankers disproportionate power over Italian industry. The group was called the “salotto buono” (literally “the fine drawing room”).

The downturn has been tough on some of the old powerbrokers. Mediobanca, the investment bank disproportionately powerful because of its shareholdings, reported a plunge in profits after taking E281m of writedowns on strategic stakes in Telecom Italia and RCS Mediagroup.

But the old network might be replaced by something worse: “Berlusconism”. Silvio Berlusconi is prime minister, the richest man in Italy and master of most of the country’s media … Berlusconi has already meddled directly in the national airline, Alitalia and the national telephone operator, Telecom Italia. His indirect influence is even being felt in old bastions of financial power such as Mediobanca where his daughter recently won a board seat.

Italy did not do too badly with the “mixed” state-private economic model it followed postwar. But Berlusconi’s version seems to have a special twist. His record shows he likes talking about reform, but his actions reveal an unhealthy interest in furthering his personal empire. With Italian GDP predicted to shrink 4% this year, that approach is the last thing Italian business needs. (via Fiat’s dealing will change Italian capitalism).

Capitalism was always about controlling capital

Capitalism was always about controlling capital

Public sector economies of Europe

The economies of France, Germany and Italy are practically run by public sector monopolies – or subsidized behemoths, who make survival of competitors difficult by their ability to sustain losses – based on Government largesse.

Spain and Britain have all but collapsed! Which way will the US jump – will it also go the public sector way – go the Spanish way? By the way, the national industry in Spain these days is prostitution!

Which bring me to another question!

The lure of ‘capitalism’ …

Why is the West so keen on calling these public sector, subsidy driven regimes as Capitalism? Capitalism depended on looted capital and slave labour to prosper – resulting in the famous ‘laissez-faire’ quip. Capitalists wanted and got ‘laissez faire’ capitalism – which was a ‘coda’ for unlimited slavery. The restrictions on laissez-faire were actually restrictions on slaves.

Now under socialism, they get unlimited protection from ‘destructive’ competition. Which is being papered over by names like crony capitalism, free market capitalism. etc.,  etc.

Coverup .. Papered over .. Spit and polish ...

Coverup .. Papered over .. Spit and polish …

Look at Spain and Britain

Spain’s national industry today is prostitution. Britain is floating on the sewage of the Bretton Woods bilge! After the multi-trillion dollar bailout, which has just begun, and with more than US$4 trillion with China, Japan, Russia and India, neither is the outcome certain nor is the outlook bright.

Last but not the least, we must remember the power wielded by the Chartered Companies of Europe – another word for public sector.  East India Company was a public sector company!

The Rest of the World needs to be careful of these public sector monsters!

Public sector or oblivion

During the Great Depression, more than 19 auto companies (similar to the number of banks today) were folded into the Big 3. The Big 3 lived to fight for another 70 years. In their death throes, the US Big Auto is likely to go the way European auto sector has gone.

Public sector or oblivion.

Saddam lives (through his words)

The way it looks, it will mean the Mother Of All Mergers. At which point, there is no team of accountants in the world who can figure out what is where, or what condition what is in? And then the evasions, the lies the obfuscation can continue for some more decades?

Which model will US follow – public sector or closure? Subsidies or welfare?

Real low … real truth (seen an oxymoron like that?)

The real question – who will pay for it?

Not the Americans! No siree. Definitely not.

Will the Lilliputs manage a soft landing?

Will the Lilliputs manage a soft landing?

Neither the American super-rich or the American welfare-poor? Not the American tax payers or the American tax evaders? Not the American Whites or the American Blacks?

It is the Chinese, the Russians, Indians, Brazilians and above all the Africans will pay for this! They have done, what bankers call non-recourse lending! The Chinese, Russians, Indians, Brazilians and the Africans, have no recourse. Who will the Chinese go to, for redeeming their US$2 trillion?

The bankrupt US of A?

Welcome to the real world.


A nation under banks, with justice for none

The cover up is getting bigger ...

All this puts the SEC and the rest of the government in a horrible spot. It is a matter of public record that the law wasn’t followed, thanks to Cuomo’s disclosures last week. And yet the agencies and policy makers responsible for enforcing the law are probably powerless to do anything about it.

It would be nice to think that SEC Chairman Mary Schapiro might call for a sincere, thorough investigation. But there’s nothing in her professional background that suggests she has the spine or the nerve to take on a major financial institution, much less a former Treasury secretary or the sitting Fed chairman.

We probably won’t get any searching inquiries out of the banking industry’s elected overseers in Congress. Senate Banking Committee Chairman Christopher Dodd took VIP loans from Countrywide Financial Corp, now a subsidiary of BofA. His counterpart in the House, Barney Frank, declared last July that Fannie Mae and Freddie Mac were “not in danger of going under,” about two months before they did.

That leaves you and me, the American public, with the uncomfortable realisation that we are slipping toward a state of lawlessness in this country, all in the name of saving our financial system by creating even bigger banks out of combinations of banks that were dangerously big already. This doesn’t inspire confidence. It destroys it. (via A nation under banks, with justice for none).

Fraud .. when people are in pain …?

This is very similar to Joseph Kennedy’s shorting the market before The Great Depression. It has always been a wonder to me how could Joseph Kennedy, a bootlegger and a friend of the mafiosi could become SEC Chairman? And after that did happen, would a Great Depression not follow?

First, the world was hit by Big Oil and as though that  was not enough, came the Big Banks!

Hank Paulson Should be investigated

It was always 2ndlook’s suspicion that Hank Paulson’s behaviour in the Lehman collapse is similar to Bootlegger Kennedy’s behaviour. And this now coming out all in the open!! JPMorgan was blamed for Lehman collapse. This was reported widely including in The Times of India.

US bank JPMorgan Chase stands accused of precipitating the collapse of American investment bank Lehman Brothers by freezing Lehman assets days before it filed for bankruptcy protection, the Sunday Times reported.

First was Big Oil, then Big Banks! Now what ...  |  Cartoonist - Michael Ramirez; source: caglecartoons.com  |  Click for image.

First was Big Oil, then Big Banks! Now what ... | Cartoonist - Michael Ramirez; source: caglecartoons.com | Click for image.

After 60 Days

While deciding on Bear Stearns, Lehman Brothers, WaMu, was Paulson looking at his future – 60 days later, when he would need a new job!

Was the collapse of Lehman a deal for a job with Goldman – or was it JP Chase? JPMorgan Chief Had Long drooled Over WaMu. While a lot of people were getting support, Paulson allowed Lehman to go under!

I wonder why?

Was he making it easier for his ex-employer Goldman? Is he helping out the JP Morgan – with WaMu and Bear Stearns?

Does Transparency International call this corruption – or is it par for the course?

WaMu sues FDIC – Hank Paulson Fraud

March 23, 2009 2 comments

How Big Oil, Big Banks and Big Politicos triggered the Great Recession.

The real story!

The real story!

In a complaint filed with the U.S. District Court for the District of Columbia, the thrift’s former parent accused the FDIC of having on January 23 made a “cryptic disallowance” of its claims, prompting the lawsuit.

It also accused the FDIC of agreeing to an unreasonably low price in arranging the a US$1.9 billion sale of the banking business to JPMorgan on September 25, when regulators seized Washington Mutual and appointed the FDIC as receiver.

JPMorgan did not buy the parent holding company, which filed for Chapter 11 bankruptcy protection the following day.

In its complaint, Washington Mutual seeks to recover as much as US$6.5 billion of capital contributions it said it made to its banking unit from December 2007 through the seizure. (via Washington Mutual sues the FDIC for over US$13 billion – The China Post).

Fraud ... when people are in pain?

Fraud ... when people are in pain?

Fraud … when people are in pain …

This is very similar to Joseph Kennedy’s shorting the market before The Great Depression. It has always been a wonder to me how could Joseph Kennedy, a bootlegger and a friend of the mafiosi was earlier SEC Chairman?

Campaign contribution can open doors. It definitely opened Roosevelt’s doors for Kennedy. And after that did happen, would a Great Depression not follow?

First, the world was hit by Big Oil and as though that  was not enough, came the Big Banks!

Hank Paulson should be investigated

It was always 2ndlook’s suspicion that Hank Paulson’s behaviour in the Lehman collapse is similar to Bootlegger Kennedy’s behaviour. And this now coming out all in the open!! JPMorgan was blamed for Lehman collapse. This was reported widely including in The Times of India.

US bank JPMorgan Chase stands accused of precipitating the collapse of American investment bank Lehman Brothers by freezing Lehman assets days before it filed for bankruptcy protection, the Sunday Times reported.

First was Big Oil, then Big Banks! Now what ... (cartoon by Michael Ramirez; source and courtesy - cagle.com). Click for larger picture.

First was Big Oil, then Big Banks! Now what ... (cartoon by Michael Ramirez; source and courtesy - cagle.com). Click for larger picture.

After 60 Days

While deciding on Bear Stearns, Lehman Brothers, WaMu, was Paulson looking at his future – 60 days later, when he would need a new job!

Was the collapse of Lehman a deal for a job with Goldman – or was it JP Chase?

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