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Posts Tagged ‘Bank Bailout’

Stephen C. Webster | Raw Story | Wednesday, July 22, 2009

 BlueTarp

Update (at bottom): White House does not know how TARP funds were used

House Domestic Policy Subcommittee plans probe of TARP funds

Ohio Democratic Congressman Dennis Kucinich wants to know: “If [the Troubled Asset Relief Program] isn’t about keeping people in their homes or providing credit to businesses, what is it for?”

Expressing his frustration before the Government and Oversight Committee, the two-time presidential candidate suggested that the Federal Reserve may be paying banks to hoard money and avoid making loans.

Before the committee — which assembled Tuesday to hear the testimony of Neil Barofsky the Special Inspector General for TARP, along with Federal Reserve Chairman Ben Bernanke — Kucinich wondered aloud if “banks are parking a historic amount of taxpayers’ money in the Federal Reserve while the businesses and consumers across America are starved for credit,” and whether the Federal Reserve is paying banks to avoid making loans.

“Is the Fed paying banks NOT to loan money?” a Kucinich media advisory pondered.

Read more…

Click on link below to see videos on how TARP-Recipients are lending to foreign countries and Kucinich’s questions on TARP-spending back in March (more…)

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Was Eliot Spitzer Taken Out Because He Was Going to Bust AIG?

Posted by Melina Ripcoco, Brilliant at Breakfast at 3:39 PM on March 19, 2009.

America is known for its great second acts, and we may be witnessing the curtain rising on Spitzer’s.

Eliot Spitzer is back and he’s talking. The thought of this, no doubt, brings a small shiver to the boardrooms of some of the perps walking around trying to figure out how to hide the money this week. Today Edward Liddy testified that there have been death threats made to or about executives who received bonuses, so no names will be put on the record, but these anonymous players must know that the jig is up in the land of easy-money. Isn’t what to do a no-brainer for these great Americans?

Spitzer may be as “disgraced” as any anonymous sex loving Republican loser, but America is known for its great second acts, and we may be witnessing the curtain rising on Spitzer’s.

Today in Slate Eliot Spitzer has a short op-ed that speaks volumes about what is going on, and indirectly, if you follow the money, what happened to him. Plainly stated, Spitzer brings the AIG Ponzi Scheme one step closer to the revered establishment when he explains how the bailout money was funneled straight into the top players, with Goldman Sachs being the name that comes up again and again. These top players already got bailout money, and Goldman is looking at zero losses at this point, while regular Americans are being asked to make concessions or just plain losing everything. here are the biggest financial entities in the world, making billions on what appears to have been nothing but air traded back and forth, and having gutted the American people they are walking away with 100% return to their stockholders. In return AIG seems to think that its appropriate to pay themselves bonuses with the leftover funds. This leaves AIG still a wobbly shell with no plan of how to go forward, and the threat of the collapse of all of the world’s financial markets still up in the air. So, what was all that bailout money for? Apparently to make sure that no one at Goldman or the other few top firms in the hand-out-line lost anything!

The relationship between AIG and Goldman goes back long enough that one would think that Goldman would know, having bought so much of this “insurance” or whatever it was, whether the “products” were …er…real or feasible at all. Indeed, Goldman and AIG almost merged a few years ago, but Spitzer notes that the unknown black hole of AIG’s business practices were probably what prevented it. Still, that didn’t stop the incestuous dealings; it almost makes one think that this whole thing was a setup.

This is country that Spitzer is familiar with; he has been a terrible liability to entities that, under the Bush administration, were allowed to literally gut the country and its citizens. All of this seems to have been part of the Bush Administration’s own Ponzi Scheme, which figured that the illusion of an ownership society, terrified of the “terraism” and steeped in the me, me, me, culture would look the other way while they finished clearing out the vault. Beyond that, it’s clear that the media hyped housing bubble encouraged the house flip mentality and the idea that anyone could be rich. The idea of the lottery dropping on our own heads made us more protective of the rich, because we might one day be one….or look, we could be one with no money down, if we could just balance that on this, and flip that house!!

MORE HERE

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Obama to introduce executive pay limits for bailed out companies.»

Think Progress- By Faiz Shakir on Feb 3rd, 2009 at 10:25 pm

The Obama administration plans to mandate new executive pay limits for financial companies that are receiving any help from the $700 billion bailout fund. “If the taxpayers are helping you, then you’ve got certain responsibilities to not be living high on the hog,” President Obama said in an interview. Sen. Claire McCaskill (D-MO) has proposed that no employee of a bailed-out company can receive more than $400,000 in total compensation until it pays the money back.

UpdateObama will announce today that he’s imposing a cap of $500,000 on the compensation of top executives at companies that receive significant federal assistance in the future.

Update Sen. Bernie Sanders (I-VT) was the first to propose the idea of capping salaries last October. Watch his appearance last night on The Rachel Maddow Show.

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Obama to detail compensation limits on executives

JIM KUHNHENN | February 4, 2009 10:05 AM EST | AP

WASHINGTON — Call it the maximum wage. President Barack Obama wants to impose a $500,000 pay cap on executives whose firms receive government financial rescue funds, a dramatic intervention into corporate governance in the midst of financial crisis.

The new restrictions, described by an administration official familiar with the new rules, are to be announced Wednesday morning at the White House. The steps set the stage for the administration’s unveiling next week of a new framework for spending the money that remains in the $700 billion financial rescue fund.

“If the taxpayers are helping you, then you’ve got certain responsibilities to not be living high on the hog,” President Barack Obama said Tuesday.

The official, speaking on the condition of anonymity because the plan had not yet been made public, said the most restrictive limits would apply only to struggling large firms that receive “exceptional assistance” in the future. Healthy banks that receive government infusions of capital would have more leeway.

MORE HERE

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