Posts : 1611
Join date : 2009-10-19
|Subject: US Fiancial Repo Scam Mon 15 Mar 2010, 4:30 pm|| |
http://www.msnbc.msn.com/id/21134540/vp/35841681Random notes after watching this...
- Is this a distraction from something even more blatant?
- Why are ONLY focusing on Lehman, what about all the other companies that are still in business and were employing these techniques?
- Is this just part of the setup for radical reconfiguration of the financial system?
- Why has nobody been arrested for any of this stuff yet?
- Some financial people have already turned-up dead since the scandal broke in SEP 2008, but the media never discussed the possibility of murder, even though that need seem plausible given the known scope of the scandal.
- No mention of 30 years of dismantling checks and balances.
_________________"For every thousand hacking at the leaves of evil, there is one striking at the root."
David Thoreau (1817-1862)
anonymously email me by clicking here
Posts : 112
Join date : 2009-10-25
|Subject: Re: US Fiancial Repo Scam Mon 15 Mar 2010, 6:21 pm|| |
- Quote :
- “Bernanke and Co. may have ‘saved the day’ ” a Lehman executive, Geoffrey Feldkamp, wrote in an e-mail message to a colleague in March 2008, according to the report. Neither Ben Bernanke, the chairman of the Federal Reserve, nor Treasury officials saved Lehman, of course. But it was that month that the Fed started a special lending program open to Wall Street banks like Lehman that could not borrow directly from it. The Fed also lowered its standards for the kinds of collateral that it would accept against such short-term loans.
“Lehman, desperate for financing, seized its chance. It packaged billions of dollars of troubled corporate loans into an investment called Freedom CLO. Then, in a series of transactions, it shifted Freedom back and forth to the New York Fed, in exchange for cash. Those moves helped make Lehman look healthier.
“Essentially, Lehman was able to temporarily warehouse illiquid investments that were worrying its investors at the New York Fed in return for cash. The Fed created this facility immediately after the near collapse of Bear Stearns. Some suspect that other banks engaged in similar maneuvers.
A spokesman for the New York Fed said the loan facility was created to help the entire financial system and prevent the problems at one bank from cascading. The collateral accepted from Lehman met the Fed’s standards, he added. A third party valued it, the Fed accepted it and then reduced prices to limit the risk." ("Fed Helped Bank Raise Cash Quickly", Eric Dash, New York Times)
- Quote :
- Economist and author Michael Hudson summed it up like this for CounterPunch:
"Today, there’s only one market for junk: the Federal Reserve, which has lent $1.3 trillion in cash for trash, no questions asked. This amount exceeds the forecast Obama medical care plan for the next decade. No money for health insurance, but all for the junk-mortgage lenders."
- Quote :
- Michael Hudson, the ex-Wall Street economist and author of Super Imperialism: The Economic Strategy of the American Empire put the Lehman case into perspective with observations he made to me via e mail on Sunday. I think it summarizes the big picture admirably:
“When predators have exhausted the economy, they turn on each other. The result is financial cannibalism. After all, who else is it possible to get money from in today's negative equity environment?
“If the media are missing anything, it’s that the game is over. The financial institutions are taking their money and running. They know it's over. And the only source of cashing out is the US Treasury and Fed.
“My solution:There is an easy place to start, that can take only a few weeks. That is to look at the Fed's $1.3 trillion in cash-for-trash swaps. If these prove to be junk mortgages for which the Fed has given good US Treasury bonds, at the proverbial taxpayer expense, then the Fed and Treasury administrators should have criminal charges brought against them, the accounting firms of the companies pledging these junk mortgages and other financial junk should be closed down and RICO charges brought, and the banks themselves should be wiped out. I have urged the appropriate Washington oversight committee to open an investigation along these lines."