Banks Bailing Out FDIC
FDIC weighs extraordinary steps to shore up fund
The Federal Deposit Insurance Corp. is weighing several costly – and never-before-used – options as it struggles to shore up the dwindling fund that insures bank deposits. The agency is considering borrowing billions from healthy banks. Alternatively, it may impose a special fee on the banking industry. A third option – borrowing from the Treasury – is politically unpalatable, since it would resemble another bailout. A fourth option would be to have banks pay their regular insurance premiums early. But that wouldn’t solve the fund’s long-term cash needs. The FDIC is expected to propose a solution at a board meeting next week. Bank failures since the financial crisis struck have drained the fund, which insures bank deposit accounts of up to $250,000, to its lowest level since 1992.
Bush Sr. on a New World Order
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A year after financial crisis, a new world order emerges
One year after the near collapse of the global financial system, this much is clear: The financial world as we knew it is over, and something new is rising from its ashes.
Historians will look to September 2008 as a watershed for the U.S. economy.
On Sept. 7 , the government seized mortgage titans Fannie Mae and Freddie Mac . Eight days later, investment bank Lehman Brothers filed for bankruptcy, sparking a global financial panic that threatened to topple blue-chip financial institutions around the world. In the several months that followed, governments from Washington to Beijing responded with unprecedented intervention into financial markets and across their economies, seeking to stop the wreckage and stem the damage.
One year later, the easy-money system that financed the boom era from the 1980s until a year ago is smashed. Once-ravenous U.S. consumers are saving money and paying down debt. Banks are building reserves and hoarding cash. And governments are fashioning a new global financial order.
Congress and the Obama administration have lost faith in self-regulated markets. Together, they’re writing the most sweeping new regulations over finance since the Great Depression. And in this ever-more-connected global economy, Washington is working with its partners through the G-20 group of nations to develop worldwide rules to govern finance.
“Our objective is to design an economic framework where we’re going to have a more balanced pattern of growth globally, less reliant on a buildup of unsustainable borrowing . . . and not just here, but around the world,” said Treasury Secretary Timothy Geithner . Full Story
Posted in Corporations, economic collapse, economy, global financial crisis, government, great depression, New World Order, obama, U.S. Dollar, unemployment
Tagged banks, Fannie Mae and Freddie Mac, federal reserve, global economic crisis, government, great depression, Lehman Brothers, New World Order, Obama administration, unemployment
The Great American Bubble Machine
From tech stocks to high gas prices, Goldman Sachs has engineered every major market manipulation since the Great Depression – and they’re about to do it again
The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled dry American empire, reads like a Who’s Who of Goldman Sachs graduates.
By now, most of us know the major players. As George Bush’s last Treasury secretary, former Goldman CEO Henry Paulson was the architect of the bailout, a suspiciously self-serving plan to funnel trillions of Your Dollars to a handful of his old friends on Wall Street. Robert Rubin, Bill Clinton’s former Treasury secretary, spent 26 years at Goldman before becoming chairman of Citigroup — which in turn got a $300 billion taxpayer bailout from Paulson. There’s John Thain, the asshole chief of Merrill Lynch who bought an $87,000 area rug for his office as his company was imploding; a former Goldman banker, Thain enjoyed a multibilliondollar handout from Paulson, who used billions in taxpayer funds to help Bank of America rescue Thain’s sorry company. And Robert Steel, the former Goldmanite head of Wachovia, scored himself and his fellow executives $225 million in goldenparachute payments as his bank was selfdestructing. There’s Joshua Bolten, Bush’s chief of staff during the bailout, and Mark Patterson, the current Treasury chief of staff, who was a Goldman lobbyist just a year ago, and Ed Liddy, the former Goldman director whom Paulson put in charge of bailedout insurance giant AIG, which forked over $13 billion to Goldman after Liddy came on board. The heads of the Canadian and Italian national banks are Goldman alums, as is the head of the World Bank, the head of the New York Stock Exchange, the last two heads of the Federal Reserve Bank of New York — which, incidentally, is now in charge of overseeing Goldman — not to mention … Full Story
Amy Goodman Interview with Matt Taibbi
Posted in Bailout, Corporations, economic collapse, global warming, government, great depression, New World Order, recession, stimulus
Tagged banks, Carbon trading scam, democratic capitalism, global warming, Goldman Sachs, great depression, Henry Paulson, Rolling Stone
Fascism: a governmental system led by a dictator having complete power, forcibly suppressing opposition and criticism, regimenting all industry, commerce, etc., and emphasizing an aggressive nationalism and often racism.
Obama a Fascist?
Obama Dictatorship-Warning from a Congressman
Posted in big brother, bush, Corporations, economic collapse, government, New World Order, obama, stimulus
Tagged banks, bush, dictator, fascism, FDR, freedom, GM, government, hitler, messiah, Mussolini, New Deal, obama, stimulus plan, Tyranny
Geithner: Give Us More Power
U.S. Seeks Expanded Power to Seize Firms
The Obama administration is considering asking Congress to give the Treasury secretary unprecedented powers to initiate the seizure of non-bank financial companies, such as large insurers, investment firms and hedge funds, whose collapse would damage the broader economy, according to an administration document.
The government at present has the authority to seize only banks.
Giving the Treasury secretary authority over a broader range of companies would mark a significant shift from the existing model of financial regulation, which relies on independent agencies that are shielded from the political process. The Treasury secretary, a member of the president’s Cabinet, would exercise the new powers in consultation with the White House, the Federal Reserve and other regulators, according to the document.
The administration plans to send legislation to Capitol Hill this week. Sources cautioned that the details, including the Treasury’s role, are still in flux.
Treasury Secretary Timothy F. Geithner is set to argue for the new powers at a hearing today on Capitol Hill about the furor over bonuses paid to executives at American International Group, which the government has propped up with about $180 billion in federal aid. Administration officials have said that the proposed authority would have allowed them to seize AIG last fall and wind down its operations at less cost to taxpayers.
The administration’s proposal contains two pieces. First, it would empower a government agency to take on the new role of systemic risk regulator with broad oversight of any and all financial firms whose failure could disrupt the broader economy. The Federal Reserve is widely considered to be the leading candidate for this assignment. But some critics warn that this could conflict with the Fed’s other responsibilities, particularly its control over monetary policy.
The Hypocrisy of the AIG Bonuses
Posted in Bailout, Corporations, economic collapse, economy, global financial crisis, government, obama, propaganda, recession, stimulus
Tagged aig, banks, bernanke, Congress, federal reserve, Geitner, Obama administration