Ruth Madoff has nearly a billion dollars she got via her hubby’s crimes. But she isn’t the only one who is gadding about the planet, enjoying ill-gotten gains! All of the gnomes in AIG are doing likewise and via them, so are all sorts of wild piratical bankers and other gnomes in Europe and America are making up their losses! So they get a better bottom line and we are ripped off and have to take on ALL risks while the insurer and the clients all run off to Aruba to party.
After the Democrats threatened to cut off all future funds from our very generous government, did AIG spit out the names of the crooks who got all the loot. Here is the list of the top money grubbers:
Total Payments to Top 10 $73.1
$10 billion more than Madoff ripped off! Heh.
1. Goldman Sachs Group $12.9
The #1 crook operation in the US. These guys control many parts of our government and ran the Treasury into the ground. The first AIG bail out was sponsored by the Goldman Sachs criminal, Mr. Paulson. Naturally, he benefitted from all this.
2. Societe Generale 11.9
The bank with the Sorcerer’s Apprentice who lost all that loot. Someone had to insure them! So viola! They got all the money back which they lost due to incompetence, incredulity and laziness.
3. Deutsche Bank 11.8
This bank was just as ridiculously run as Societe Generale. The Germans have fallen far, far below their normal levels of stingy carefulness. They got burned and deserved it. Now, we taxpayers in the US are fixing messes they created or saving them from bad deals they could have avoided by being somewhat more careful and smarter.
4. Barclays PLC 8.5
Another foreign bank who is being bailed by us. We pay a very high price for our lovely trade deficit, don’t we?
5. Merrill Lynch 6.8
One of the major derivatives beast’s feeders.
6. Bank of America Corp 5.2
Call them ‘BankRUPT of America’. These criminals who flooded the bond markets with loans to deadbeats and who encouraged the overinflation of US real estate markets should return this money to us. And go off and die.
7. UBS AG 5.0
This is why UBS finally released the names of all the criminal tax cheats. They got $5 billion of OUR tax money to keep their stupid, inept business afloat. Another foreign freeloader.
Igor Olenicoff long has been one of the biggest names in Orange County real estate. Now he’s something of a global media star for his crusade against the world’s largest investment bank for the wealthy.
Olenicoff’s at the center of a growing global firestorm surrounding Switzerland’s time-honored, secretive banking system. He’s become a big thorn in the side of the country’s largest investment bank, Zurich-based UBS AG.
If not for Bernard Madoff and the ongoing tumult in the global banking system, the row Olenicoff has helped to ignite over Swiss banking laws would be the finance story of the year.
It’s still a front-page story here and in Europe, complete with bickering governments, secretive offshore dealings and plenty of bombshell allegations.
8. BNP Paribas SA 4.9
Another foreign entity leeching off of us. This week, they are the main sponsors of a nifty tennis tournament in California. Let the games go on! Who cares, if they are not paying for this fun!
9. HSBC Holdings PLC 3.5
The Securities and Futures Commission has launched an investigation into whether HSBC Holdings PLC’s 13% drop during Monday’s closing auction was caused by market manipulation. The bank’s shares extended their rebound in Hong Kong for a second day Wednesday, the last day for investors to buy or hold shares to participate in the HSBC’s US$17.7 billion rights issue… HSBC tumbled 24% to close at 33 Hong Kong dollars (US$4.25) Monday, with a little more than half of the fall occurring during a brief closing auction that takes place daily before a closing price for the session is calculated. Wednesday, the shares rose 2.3% to HK$38.45, adding to Tuesday’s 14% jump.
A group of investors has sued HSBC and Bank of New York Mellon, alleging that the banks failed to protect Hong Kong buyers that bought into complex derivative instruments known as “minibonds” linked to the now defunct Lehman Brothers.
The class-action lawsuit filed in New York calls for $1.6bn of collateral held by HSBC and BNY Mellon to be released to investors. Minibonds have lost most of their value since the collapse of Lehman…
“The trustee failed to protect the collateral backing the minibonds. The issuer failed to execute the terms of the deal so that the promised high-quality collateral would be purchased and safeguarded, and also failed to give notice of negative information about the derivatives underlying the minibonds,” according to the complaint.
Everyone is suing everyone else over this derivatives junk business! And the people who are now bankrolling these idiotic derivatives are you and I: the US taxpayers.
10. Dresdner 2.6
The SIX Swiss Exchange participant Dresdner Bank AG London Branch violated SIX Swiss Exchange’s rules concerning reporting of off order book transactions. The Sanction Commission of SIX Swiss Exchange has therefore imposed a fine against Dresdner Bank AG London Branch in the amount of CHF 100,000 and ordered that the sanction should be published.
Art. 5 of the Swiss Federal Act on Stock Exchanges and Securities Trading (SESTA) concerns publication of all information necessary for transparency in securities trading. Among other things, this also applies to information pertaining to the volume of securities. For that reason, the participants of SIX Swiss Exchange must immediately report all off order transactions so that the Exchange can also publish those trades – as well as the on order book trades. The General Conditions of SIX Swiss Exchange provide for certain instances that a participant may have off order book transactions published delayed by two trading days if the requirements of SIX Swiss Exchange Directive 11 are cumulatively fulfilled: the transaction must be in equity securities, have a specified minimum size and lead to the opening of a nostro position. In justified cases and upon prior consultation with SIX Swiss Exchange, the publication may be delayed by five trading days. The participant must designate any such trades that have to be published delayed with a special code (B2 or B5).
Another foreign bank that needs our money to stay afloat.
Unfortunately, not one penny of the TALF bail out funds or the AIG money that was bundled up by the multibillion, has been sovereign funds. Incidentally, our FOREX holdings are LESS than this amount! Indeed, to give us perspective here, Madoff’s rip off deals was about exactly the same amount as the world’s #1 economy has in its FOREX holdings: $65 billion, more or less.
The massive scale of these frauds pale in comparison with the Derivatives Beast. Fulfilling various bets placed in that goofy insurance system that supposedly fixed ‘risk’ is driving the US dangerously deep into debt in the near future. The OTC deals are immensely dangerous, on top of everything going wrong.
Inside of all this are many, many crimes. It was a free-for-all which is not free for us: we get to pay the price and the looters get to leave with their ill-gotten gains. This is immensely dangerous. Telling us, if we punish these so-called ‘bankers’, our economic system will collapse!
This is INSANITY. They and only they collapsed the entire system, themselves. We didn’t do this to them. If we want it fixed, we must first put the fear of god in these atheistic creatures so they dare not do this ever again.
More than $34 billion of the money went to trading partners of AIG Financial Products, the small subsidiary whose exotic derivatives brought AIG to the edge of collapse. In recent years, the firm had written massive numbers of credit-default swaps, insurance-like contracts that other companies bought as protection against the default of mortgage-backed securities. When the housing boom began to go bust, banks that had purchased the swaps demanded collateral from AIG, burying the company under a tidal wave of debt. Federal officials, wanting to keep the company from failing because they feared it was too intertwined with the global economy, stepped in to help.
This is so stupid. Always, they claim these dinosaurs are too big to go down. Why, we might have a global depression! Well, we are having a global depression and I fail to see how bailing out a bunch of crooks using future tax revenues is going to fix anything at all!
If we were having minor difficulties, it is no big deal, bailing out people. If the US had a sovereign wealth fund the size of China’s money, we could foolishly do this. But the fundamentals here are the fact that the US economy is in jeopardy due to too much public debt coupled with a too-big trade deficit.
The ONE THING we cannot drive deeper into debt is our government or our trade! These are the two things in dire need of fixing. AIG is not our government. It is not our economy. It is not even American. It is an international business set up to make a very tiny number of people, very rich.
It failed in its mission. The insurance arm that insures trade, municipalities and actual businesses should be separated from the derivatives/trade part and we will bankroll honest, realistic insurance and all the OTC games can go to HELL. Having us bail out banks playing OTC derivatives games with each other is OUTRIGHT WRONG.
In the last months of 2008, AIG Financial Products paid more than $22 billion in taxpayer money to satisfy debts caused by its swap contracts. Another $12 billion went to pay off municipalities in dozens of states for whom the firm had created complex investment agreements.
Nearly $44 billion went to pay debts that AIG incurred under its “securities lending” program, according to the company. In those instances, various companies borrowed securities from AIG in exchange for cash. In turn, AIG invested much of the money in mortgage-backed assets that plummeted in value, leaving the insurer on the hook for billions….
The $44 billion AIG lost in this game is a classic example: any organization this inept deserves to be ruthlessly eliminated. It should have been put under strict controls 10 years ago but it is too late for that. It is already bankrupt. We ‘fixed’ this by insuring that WE, the entire US nation, will have to go bankrupt, instead. I find this deal stinks, obviously. There is no reason for this.
“This is an example of people at the commanding heights of the economy misbehaving, abusing the system,” said Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee.
Their anger stemmed in large part from AIG’s decision to move forward with retention bonuses for executives at the troubled Financial Products unit. In early 2008, before the government rescue, the firm’s employees had been promised more than $400 million in retention pay this year and next. Lawyers for the government and AIG have agreed that most of those payments, however unsavory, are legally binding.
“We are a country of laws. There are contracts,” Summers said yesterday. “The government cannot just abrogate contracts. Every legal step possible to limit those bonuses is being taken by Secretary Geithner and by the Federal Reserve system.”
These stupid contracts are a symptom of what is wrong. Summers, of course, wants to protect his buddies. So he doesn’t mind paying them for destroying AIG and in turn, destroying the US. We jail terrorists! So why would we want to have a system whereby we maintain laws that protect people who are outright destructive?
Do we say, ‘Oh well, so much for that! I suppose we must commit suicide to please a bunch of crooks’? Of course not. Survival is important. Shrugging off this sort of utter malfeasance is dangerous for any government. Eventually, heads will roll. It is best to drag out into the open, these destructive, greedy jerks and put them up for us to shame and to shove. They can’t get off, scot free and with all their loot anymore than Madoff’s crooked wife should be able to keep a billion dollars in loot.
Teenagers downloading P2P songs are brutalized much worse and made to pay small fortunes to the RIAA goons. So why are we suddenly helpless when confronted with major thievery? It is obvious that something must be changed, swiftly. At the very least, the names of the crooks who destroyed AIG and are getting millions for this service, should be published.
Burton Malkiel, professor of economics at Princeton University and author of “A Random Walk Down Wall Street.”
This recession is being compared in its severity to the Great Depression, and I suppose in terms of how fast unemployment is going up and how worldwide it is, it probably bears some similarity to the Great Depression. But I want to emphasize I don’t think we’re going into a Great Depression. For one thing, the money supply dropped by 25 percent during the Great Depression. Today, the Federal Reserve’s balance sheet is expanding dramatically. And central banks around the world are doing the same thing with respect to fiscal policy. I think the Obama stimulus plan could be much better. I think it may even be too modest. But at any rate, it’s a big stimulus plan. Relative to what we did in the Great Depression, this is real money.
What ails people? This is a ‘wise man’? If this idiot is wise, what am I? A potato?
Well, this wise man is a mirror of Bernanke. The ‘money supply’ is growing so we aren’t having a depression! So what, if the value of all our assets and equities are collapsing? So what, if bankruptcies are soaring? So what, if world trade has nearly collapsed? So what, if unemployment is shooting upwards, so what, if mass murders are rising, too? The damn ‘money supply’ is growing!
Of course, this wise idiot doesn’t tell us, where it is going! We must ask the mysterious executives of AIG where this flood of money is going and we can ask wise idiots, whose money this is and where it is coming from and how it is actually a pile of damn IOUs from our government, passing through the greedy hands of the Federal Reserve and then, to all the greedy, stupid bankers across the planet, to replace their damn losses from their stupid depraved derivatives games!
European Central Bank President Jean-Claude Trichet’s new weapon to battle the recession is taking him closer than it seems to zero interest rates.
Trichet is allowing the ECB’s deposit rate, which lenders earn on overnight deposits with the central bank, to usurp the benchmark refinancing rate and become the main driver of short- term borrowing costs. At just 0.5 percent, the deposit rate matches the Bank of England’s key setting and is only a step away from the zero-to-0.25-percent range the Federal Reserve uses.
That is pushing interest rates for banks down, helping Trichet answer critics who accuse him of not doing enough as the euro-region economy sinks into its deepest recession since World War II. The deposit rate is “very, very low,” Trichet said three times in an hour at a press conference on March 5.
Despite this flood of funny money capitalizing all systems while itself is merely money made up out of promises of future taxes that will never, ever be paid since our nation is in no mood to pay taxes, we see all systems going to ZIRP in a hand basket. Few of these ZIRP providers are solvent. Most, if not all, are overspending government budgets as well as seeing their tax bases collapse as well as trade. Japan is running a trade deficit for the first time in 35 years. And the US is seeing its own trade deficit get slightly smaller, not that is is anywhere near solvency.
This side trip, saving all the major banks of the planet, while not saving ourselves at all, will end soon. Either, the US public will finally get fed up and rise up like we see in Pakistan, or we simply can’t pay off our creditors like China and we have a total collapse of the entire international finance and legal systems including the UN, etc. The US, right now, controls most of the systems like the IMF. But this is a fiction.
When choosing to save things that are collapsing, it is important to keep an eye on the real dangers. 100 million pissed off Americans with guns will not be something to take lightly. Saving AIG and that line up of errant bankers is not important compared to keeping the US citizenry placated. The anger over these rip offs is rising. Make no mistake.
The US public can erupt at any time. We don’t know when. But if our government doesn’t move fast to apply some negative force on these rich criminals, we know from history, what happens next.
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