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Entries Tagged as 'Finance'

The Bailout Tax: The latest reason to oppose Dodd-Frank.

June 30th, 2010 · Banking Industry, Congress, Corruption, Deception, Democrats, Ethics, Federal Spending, Finance, Government Control, Greed, Non-Transparency, Obama's Scheme, Selling Out the US, Tax Dollars, Taxes, Treasury

A new tax on financial companies seemed like a good idea to Chris Dodd and Barney Frank at 3 a.m. last Friday, but now their $19 billion levy is threatening to blow up their 2,319-page financial bill. So they’re scrambling to replace that cash, but the bigger news here is that Barney and Chris need to impose a bailout tax for what they claim is a bill that will end bailouts.

This is the real reason that the tax came out of nowhere in the middle of the night after having been rejected earlier by the Senate. And on Monday the Congressional Budget Office made it official when it released its cost estimate for the Dodd-Frank Wall Street Reform and Consumer Protection Act.

CBO estimates that the bill’s vaunted “Orderly Liquidation Authority,” which is being sold as tough medicine for failing banks and their creditors, will cost taxpayers $20.3 billion between now and 2020. CBO estimated how likely it is that one or more big financial firms will fail, how many tax dollars the Federal Deposit Insurance Corporation would likely pour into these losers to assist creditors, and how much taxpayers might recover as this “resolution process” proceeds.

Senate Banking and Urban Affairs Committee Chairman Christopher Dodd and House Financial Services Committee Chairman Barney Frank

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Cases against Wall Street lag despite Holder’s vows to target financial fraud

June 22nd, 2010 · Banking Industry, Corruption, Deception, Democrats, Ethics, Finance, Government, Greed, Money Lost, Non-Transparency, Obama Nominees, Obama's Scheme, Selling Out the US, Taxes, Terrorism from Within

By Jerry Markon – Friday, June 18, 2010

Since taking office at the height of the financial crisis, President Obama has promised to hold Wall Street accountable for the meltdown. Attorney General Eric H. Holder Jr. reinforced that message in November when he vowed to prosecute Wall Street executives and others responsible for the crisis.

“We will be relentless in our investigation of corporate and financial wrongdoing, and we will not hesitate to bring charges,” Holder said as he launched a financial fraud task force.

His Justice Department took steps to fulfill that promise this week when it arrested the former chairman of one of the nation’s biggest mortgage firms — the largest crisis-related criminal case — and announced that 1,215 people have been charged with mortgage fraud since March 1. But that success masks the government’s difficulties in the highest-profile investigations: those of Wall Street banks.

Nearly 1 1/2 years into Obama’s tenure, despite several cases against mortgage companies whose lending practices contributed to the crisis, the administration has not brought any charges against the big Wall Street banks that took those loans, converted them into toxic securities and pumped them into the world’s financial markets. Law enforcement sources say no such charges are imminent.

The blunt words of administration officials have triggered debate over whether they have gone too far in appearing to promise difficult cases that critics say might never be filed, in part because they would essentially criminalize an entire business model in the financial industry.

“The attorney general got out ahead of the facts and the evidence in saying, ‘We’re going to go down to Wall Street with a pitchfork and roust those fat cats out of their offices and put them in jail,’ ” said Tim Coleman, who prosecuted major fraud cases before leaving the Justice Department five years ago. “This was a case, in general, of people making business judgments and taking risks and having them go badly. That’s not criminal misconduct.”

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8 House members investigated over fundraisers held near financial reform vote

June 17th, 2010 · Accountability, Banking Industry, Corruption, Deception, Economy, Ethics, Finance, Greed, House, Non-Transparency, Obama's Scheme, Politics, Selling Out the US, Terrorism from Within

By Carol D. Leonnig Washington Post Staff Writer
Wednesday, June 16, 2010

The Office of Congressional Ethics is investigating eight lawmakers who held fundraisers within 48 hours of a major House vote on a Wall Street reform bill or received substantial donations from business people with a financial stake in the bill, according to congressional sources and letters.

The probe is focused on whether the timing of accepting the campaign checks created an unacceptable appearance of a conflict, according to sources familiar with the investigation and letters sent by the OCE to lobbyists requesting information. The OCE’s spokesman declined to comment for this article, citing the ongoing nature of the investigation.

The office is scrutinizing five Republicans and three Democrats, a diverse group that includes a conservative, Rep. Jeb Hensarling (R-Tex.), and a liberal member of the Congressional Black Caucus, Rep. Melvin Watt (D-N.C.).

Seven of the eight members held fundraisers for their reelection campaigns on Dec. 9 or Dec. 10 — just before the House voted Dec. 11 in favor of a bill to make broad changes in how Wall Street and financial firms are regulated, according to a Washington Post analysis. Rep. Tom Price (R-Ga.) held a “Finance Services luncheon” at the Capitol Hill Club on Dec. 10. On the same day, a lobby firm with financial clients, Davis & Harman, hosted a fundraising breakfast for Rep. Earl Pomeroy (D-N.D.) at its Pennsylvania Avenue offices.

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MPAA, myriad interest groups lobby on financial regulation bill

June 15th, 2010 · Banking Industry, Corruption, Deception, Democrats, Ethics, Federal Spending, Finance, Government, Government Control, Greed, Money Lost, Obama's Scheme, Tax Dollars, Taxes, Terrorism from Within

By T.W. Farnam Washington Post Staff Writer
Thursday, June 10, 2010

The Motion Picture Association of America, the Envelope Manufacturers Association and the Illinois Farm Bureau are all trying to shape the same piece of legislation — the financial regulation bill moving through Congress.

Much has been made of the millions spent by Wall Street banks and securities companies trying to influence the legislation, recently approved by the Senate and headed to a conference committee Thursday. Less has been made about the broad diversity of companies and organizations that have sent lobbyists to the Hill to represent their stake in the debate.

The Motion Picture Association of America, the trade group for the six big Hollywood studios, has been working to insert a provision banning a futures market for box office returns.

Two financial companies are trying to establish such futures markets, but studios are concerned that the exchanges could create negative publicity for films.

“Box office futures are not a commodity,” said Howard Gantman, a spokesman for the association. “Especially if the industry is not allowed to invest in it, this just becomes a form of pure gambling.”

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In Congress, spending measures meet bipartisan resistance

May 24th, 2010 · Accountability, Auto Industry, Banking Industry, Congress, Corruption, Deception, Democrats, Ethics, Federal Spending, Finance, Government Control, Healthcare, Money Lost, Non-Transparency, Obama's Scheme, Real Estate, Selling Out the US, Tax Dollars, Taxes, Terrorism from Within, Treason, Treasury, Unemployment

By Lori Montgomery and Shailagh Murray Washington Post Staff Writer
Monday, May 24, 2010

Congress is headed for a showdown this week over government spending, an issue that is dividing Democrats as lawmakers prepare to face voters still hurting from the recession but also angry about the huge cost of federal efforts to revive the economy.

After delivering key pieces of President Obama’s first-term agenda, Democratic leaders will be turning to the more mundane work of passing budget bills and renewing tax breaks set to expire. Ordinarily, they would have little trouble drumming up votes.

But they are facing stiff resistance in both chambers of Congress, not only from Republicans but also within their own ranks. With midterm elections looming and Republicans blaming Democrats for a national debt bloated by the downturn and its aftermath, many lawmakers are unwilling to sign off on more spending.

“It’s time to start paying for things,” said Rep. Kathy Dahlkemper (D-Pa.), a freshman who voted for last year’s economic stimulus bill but said she is likely to oppose the next spending package, scheduled to hit the House floor Tuesday. “We’ve done some good things, but one of the best things we could do right now is get control of our fiscal house.”

With the national debt at its highest level in nearly 60 years, the question of whether to cut spending — and if so, how — is pitting liberals against conservatives, and Congress against the president. The White House has proposed a three-year freeze in programs unrelated to national security and warned House leaders Friday that it might go further, targeting the Defense Department for cuts. Meanwhile, House leaders unable to agree on a long-term budget blueprint are considering other ways to signal fiscal toughness, including a one-year budget plan that would cut 2011 spending even more deeply than Obama’s freeze.

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Who might win big or lose big in financial overhaul? Financial reform to mete out penalties, prizes

May 24th, 2010 · Banking Industry, Congress, Corruption, Deception, Democrats, Ethics, Federal Spending, Finance, Government, Government Control, Greed, Money Lost, Non-Transparency, Obama Exposed, Obama Nominees, Obama's Scheme, Selling Out the US, Tax Dollars, Taxes, Treason

By Zachary A. Goldfarb and Jia Lynn Yang Washington Post Staff Writers
Saturday, May 22, 2010

Even as the landmark financial bill passed by the Senate this week punishes some of the most famous companies in American finance, it may reward little-known firms that operate behind the scenes, below the radar or overseas.

The nation’s biggest banks, from Goldman Sachs to J.P. Morgan Chase, stand to lose billions of dollars as they are socked with new fees and regulations and forced to shed businesses.

But their loss could be a gain for other firms. If the banks are forced to stop trading with their own money or spin off activities focused on financial instruments called derivatives, this business could move to hedge funds, which are far more lightly regulated, or foreign banks that don’t face the same restrictions.

The biggest banks also will face new oversight and tighter limits that could raise their costs and make it easier for smaller banks to compete.

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Stocks plunge at closing despite Democrat optimism of recovery.

May 20th, 2010 · Auto Industry, Banking Industry, Deception, Democrats, Ethics, Federal Spending, Finance, Government, Government Control, Greed, Healthcare, Housing Industry, Money Lost, Non-Transparency, Obama's Scheme, Selling Out the US, Small Business, Stimulus, Tax Dollars, Taxes, Unemployment

UPDATED at 4:18 p.m.

Stocks crashed at closing, closing at their lowest point since February. The Dow suffered the biggest one-day percentage drop since the crash of March 2009.

The Dow closed down 3.6 percent at 10,068.01, coming very close to cracking the 10,000-point barrier, a key psychological level. All 30 Dow stocks closed down.

The broader S&P 500 closed down a whopping 3.9 percent, at 1,071.59. This is actually much more troubling that the Dow’s dive, because the Dow is only 30 blue-chip stocks. The S&P is 500 stocks across a number of sectors. It was the biggest one-day percentage drop in the index since April 2009. Only three of the 500 stocks closed up.

The tech-heavy Nasdaq closed down 4.1 percent at 2,204.01. It was the biggest one-day percentage drop in the Nasdaq since February 2009.

Crude settled just under $70 per barrel, off its lows of the day.

Markets are down now for five of the past six sessions.

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Senate clears way to vote on financial reform: An act of terrorism against the People

May 20th, 2010 · Banking Industry, Corruption, Deception, Democrats, Ethics, Federal Spending, Finance, Government, Government Control, Non-Transparency, Obama's Scheme, Selling Out the US, Tax Dollars, Taxes, Terrorism from Within, Terrorist Attack, Treason, Treasury

By Brady Dennis Washington Post Staff Writer
Thursday, May 20, 2010; 3:43 PM

The Senate voted Thursday afternoon to end its three-week debate on a bill to rewrite the nation’s financial regulations, paving the way for a final vote on the landmark legislation.

The 60-to-40 vote — the minimum required to end debate — succeeded, though two discontented Democrats broke party ranks for the second day in a row. The measure squeaked by with the help of three Republicans: Sens. Olympia J. Snowe and Susan Collins of Maine, and Scott Brown of Massachusetts, whose concerns Obama administration officials worked to assuage in the lead-up to Thursday’s vote.

“It’s been hard to get to this point,” Majority Leader Harry M. Reid (D-Nev.) said on the Senate floor, adding, “but I think it’s been a good debate.”

Under Senate rules, debate on the legislation is now limited to 30 additional hours, though a final vote could come sooner. Reid said it would be “the best of all worlds” if lawmakers could wrap up the bill late Thursday and move on to other issues.

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Senate amendment to financial regulation bill addresses five federal watchdogs

May 20th, 2010 · Accountability, Banking Industry, Congress, Finance, Politics

By Ed O’KeefeWashington Post Staff Writer
Thursday, May 20, 2010

Senators approved an amendment to the financial regulation bill Tuesday night that keeps federal watchdogs at five financial regulatory agencies from becoming presidential appointments.

The five — at the Federal Reserve Board of Governors, the Commodity Futures Trading Commission, the National Credit Union Administration, the Securities and Exchange Commission, and the Pension Benefit Guaranty Corp. — campaigned for the Senate amendment, arguing their work would be compromised by partisan politics and the election cycle if the president could hire and fire them.

Congressional Republicans have said they are especially concerned for SEC Inspector General H. David Kotz, who is investigating the agency’s decision to file fraud charges against Goldman Sachs at their request.

The Senate’s 75 to 21 vote to make the five IGs accountable to an agency’s commissioners instead of just the agency chief puts it at odds with the House financial reform bill.

The bill includes a proposal by Rep. John Larson (D-Conn.) to elevate the five watchdogs to the presidential appointment level.

In the Senate’s measure, removing a watchdog would require the approval of two-thirds of commissioners, who would have to provide a reason for the dismissal to Congress in writing.

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Financial regulation bill gets last-minute amendment from Sen. Chris Dodd: Pass Now, Fix Later

May 19th, 2010 · Banking Industry, Change of Power, Congress, Corruption, Deception, Democrats, Ethics, Finance, Government, Government Control, Non-Transparency, Obama's Scheme, Selling Out the US, Tax Dollars, Taxes, Terrorism from Within

By Brady Dennis Washington Post Staff Writer
Wednesday, May 19, 2010

According to the note scribbled at the top of the first page, Amendment 4110 arrived Tuesday at 11:57 a.m., three minutes shy of the deadline for lawmakers still hoping to alter the massive financial overhaul bill before the Senate.

It was only five pages and carried a lone, handwritten signature: Chris Dodd.

Without announcement or fanfare, the Connecticut Democrat — chairman of the Senate banking committee and chief architect of the pending legislation — was quietly trying to resolve one of the few remaining disputes that could impede the passage of the landmark bill: a disagreement over financial instruments called derivatives that has sent shudders through Wall Street.

At issue was a single section a third of the way through the massive 1,400-page bill that could force a handful of the nation’s biggest banks to spin off their billion-dollar businesses in trading derivatives.

Dodd offered a clever Washington solution aimed to appease both friends and foes of the provision. His amendment preserves the tough language — but it postpones any action for two years so it can be studied. And it assigns that study to a new council of regulators, headed by Treasury Secretary Timothy F. Geithner, whose members have serious reservations about such a dramatic measure and may very well kill it in the end.

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