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Started By
Message
re: The Obama Bank Shakedown- "It has nothing to do with justice or restitution"
Posted on 8/26/14 at 9:20 am to LSURussian
Posted on 8/26/14 at 9:20 am to LSURussian
quote:"asking"
The part about the Fed and Treasury asking BoA to buy Merrill Lynch and Country Wide Mortgage to keep the financial system from collapsing
Kind of like Carlos Marcello suggesting that a Metairie business pay a little protection money.
They don't have to. It's just a suggestion.
1
Posted on 8/26/14 at 10:33 am to LSURussian
quote:One can only hope. "I'm from the government and I'm here to help" should send one running the other way.
The next time the Treasury and the Fed asks a large bank to rescue someone, I hope the bank gives them the middle finger.
Posted on 8/26/14 at 10:35 am to NC_Tigah
IIRC, Wells Fargo initially refused TARP funds because they said they didn't need them but the Feds essentially put a gun to their head and forced them to take the money.
Posted on 8/26/14 at 10:43 am to upgrayedd
That happened to more than one bank.
Also, to the fool who said the banks need to payback the taxpayer funds used...they did/are via tarp repayment. The fines talked about here are in addition.
Fun fact, the government actually made money from the tarp "loans." As should anyone who lends money.
Also, to the fool who said the banks need to payback the taxpayer funds used...they did/are via tarp repayment. The fines talked about here are in addition.
Fun fact, the government actually made money from the tarp "loans." As should anyone who lends money.
Posted on 8/26/14 at 10:58 am to JMTIGER85
Several banks were forced to take TARP money.
Penalizing the banks, who bought up other banks at the behest of the Feds, for the known deficiencies of their purchases is ludicrous.
Penalizing the banks, who bought up other banks at the behest of the Feds, for the known deficiencies of their purchases is ludicrous.
Posted on 8/26/14 at 11:00 am to AUin02
quote:
Several banks were forced to take TARP money.
Penalizing the banks, who bought up other banks at the behest of the Feds, for the known deficiencies of their purchases is ludicrous.
Some would say it had to be done, but to then shakedown the banks after the fact is even more ludicrous.
Posted on 8/26/14 at 11:46 am to Vols&Shaft83
quote:
Some would say it had to be done
What should have been done was the market should have been allowed to run its course. Our financial system needs a lot of work but so long as money is churning through the system and risk is negated by government nannyism there will never be the necessary pressure to fix the flaws, whether they be regulatory or model issues.
Posted on 8/26/14 at 11:59 am to AUin02
quote:
What should have been done was the market should have been allowed to run its course. Our financial system needs a lot of work but so long as money is churning through the system and risk is negated by government nannyism there will never be the necessary pressure to fix the flaws, whether they be regulatory or model issues.
I agree, that's why I said "some would say".
Posted on 8/26/14 at 12:03 pm to upgrayedd
quote:JPMorgan was probably the best example. Didn't need TARP. At the time, Paulson argued if stable banks did not take it, it would essentially trigger a run on those that did. So Dimon consented.
IIRC, Wells Fargo initially refused TARP funds because they said they didn't need them but the Feds essentially put a gun to their head and forced them to take the money.
Later Dimon was called to testify to Congress. JPM was accused by a couple of Senate ignoramuses of "benefitting from massive TARP funds" and using them to bailout a supposed crippling exposure in derivatives. Unbelievable!
Dimon appropriately embarrassed them. Of course JPM was then the first bank Obama's extortionists went after.
Posted on 8/26/14 at 12:45 pm to NC_Tigah
quote:
Dimon appropriately embarrassed them. Of course JPM was then the first bank Obama's extortionists went after
Wait, the extortion going on is through the banks use of taxpayer $$. When a financial institution like JP/Citi/BoA takes on 10-20 times the risk of most Hedge Funds, that's a problem. Especially when they do not understand their own investments and the risks associated.
And of course, this has been going on since at least LTCM bailouts all the way to present day. Since they are de-facto utilities, with tax $$ to backstop their risky bets, all the $$$ paid out as bonuses should be clawed back and new CEO(s) treated like the Civil Servants they are.
Posted on 8/26/14 at 12:54 pm to Vols&Shaft83
V P Cheney was a proponent of Tarp and presumably W (W perhaps at Cheney's urging)
how these folks carry the moniker "conservative" by some people escapes me
how these folks carry the moniker "conservative" by some people escapes me
Posted on 8/26/14 at 2:32 pm to rcocke2
quote:
And of course, this has been going on since at least LTCM bailouts all the way to present day. Since they are de-facto utilities, with tax $$ to backstop their risky bets, all the $$$ paid out as bonuses should be clawed back and new CEO(s) treated like the Civil Servants they are.
Spot on.
Posted on 8/26/14 at 3:03 pm to NC_Tigah
quote:
Corporations don't engage in criminal behavior. People do.
Corporations are people - when its convenient for the corporation - and not when it isn't. Right?
quote:Google knows
And in the $7 billion Citibank settlement, there's a section explaining how $2.5 billion goes to "community reinvestment and neighborhood stabilization." What's that mean?
quote:
The Neighborhood Stabilization Program (NSP) provides emergency assistance to states and local governments to acquire and redevelop foreclosed, vacant and abandoned properties that have become blights on the community and are driving down neighboring property values.
- See more at: LINK
Making the banks pay for what they had a big hand in causing? NO WAY!!!! This can't possibly help poor people - BLIGHT is great for poor neighborhoods!
LINK
quote:...sounds like another one of those kooky laws Obama signed.
established pursuant to the Housing and Economic Recovery Act of 2008
This post was edited on 8/26/14 at 3:07 pm
Posted on 8/26/14 at 3:13 pm to SpidermanTUba
quote:
Housing and Economic Recovery Act of 2008
Who was running Congress in 2008? I can't seem to remember...
Posted on 8/26/14 at 3:15 pm to NC_Tigah
quote:
Former Treasury man Hank Paulson threatened then-BofA CEO Ken Lewis if he didn't buy Merrill. . .
With what?
Posted on 8/26/14 at 3:16 pm to udtiger
quote:
Who was running Congress in 2008? I can't seem to remember...
Obama.
This post was edited on 8/26/14 at 3:16 pm
Posted on 8/26/14 at 3:18 pm to SpidermanTUba
quote:
Obama.
Posted on 8/26/14 at 4:15 pm to SpidermanTUba
quote:
Making the banks pay for what they had a big hand in causing? NO WAY!!!! This can't possibly help poor people - BLIGHT is great for poor neighborhoods!
Poor minorities love their blight. Gentrification is the #1 issue for poor neighborhoods. KEEP OUR NEIGHBORHOODS RUN DOWN, SHITTY AND CRIME RIDDEN!!!!!
Posted on 8/26/14 at 4:27 pm to rcocke2
quote:Sorry I missed this gibberish. Please do return and address relative to JPMorgan in 2008.
When a financial institution like JP/Citi/BoA takes on 10-20 times the risk of most Hedge Funds, that's a problem. Especially when they do not understand their own investments and the risks associated.
quote:Defined how?
Since they are de-facto utilities
quote:Civil Servants?
$$$ paid out as bonuses should be clawed back and new CEO(s) treated like the Civil Servants they are.
Hopefully you'll return and address point by point by point, because what you've posted appears to be nonsense.
Posted on 8/26/14 at 5:01 pm to NC_Tigah
quote:
Sorry I missed this gibberish. Please do return and address relative to JPMorgan in 2008.
What I said is simple - Mr Dimon and others at BofA have no clue what sort of risks they were taking in 2008 or today. They still use bogus VaR metrics which are a freakin joke.
quote:
Defined how?
Look up 'Utilities' yourself. They are using guarantees from the FED, taxpayers, not their own money, and they are taking risks with it they do not understand, otherwise we would not have this thread going and my 401k would have lots more money in it.
quote:
Civil Servants?
Hopefully you'll return and address point by point by point, because what you've posted appears to be nonsense
Yes, when a CEO or board member of a bank has to use the taxpayer as a mitigation to unknown risks or backstop, they are now by definition 'Civil Servants' and should be paid as such. If they want to make big bucks, go start a Hedge Fund so that if their bets are losers, they lose too. Skin-In-The-Game, or "put your OWN money where your mouth is".
Clawbacks are necessary because these days the people who rise to the top of large public corporations, especially big banks, usually stay only 2,3,4 sometimes maybe 5 years and they move on, collecting their massive bonuses dished up by taxpayers but having no downside if they wreck said corp with their decisions. They have transferred risk on to the public, therefore they are Civil Servants in my eyez.
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