Finally a Judge with balls. Finally a Judge who has figured it out. A Judge who wants to send a clear message to these corporate f…krs - that “greasing the SEC doesn’t cut the mustard any more”. The arrogance and audacity of these Corporations can no longer be tolerated. It’s not enough that we, the taxpayers, had to bail their stupid greedy asses out of their own screw-ups, now they want us to pay their fines. I ask you friends - can they be more impudent? Can they be more insolent? Can they be more ignorant? They can if WE let them. But we won’t. The American people are fed up. They are fed up and their patience is broken. Enough is enough, is enough.
Judge Jed S. Rakoff you ROCK Sir. You are the man of the hour. I am sure the taxpayers are applauding your decision with great relief.
The SEC can no longer make behind the door deals with these people. These institutions have to be made to understand that “you do the crime you do the time”. Hang’em Judge, Hang’em High. Hang’em Really high!
Newsweek reporting:
“…The SEC and Bank of America will have to return to court for a trial on February 1. The most important issue at hand will be that the judge says that Bank of America "materially lied" in its disclosures about the Merrill bonuses. Ragoff, who reviewed the bank's willingness to pay $33 million in exchange for what appeared to be an affirmation of its innocence, wrote that if the bank is innocent of lying, it would make very little sense to pay to prove it…”
By Douglas A. McIntyre 24/7 Wall Street
Sep 15, 2009 Updated: 1:22 p.m. ET Sep 15, 2009
Judge Jed S. Rakoff you ROCK Sir. You are the man of the hour. I am sure the taxpayers are applauding your decision with great relief.
The SEC can no longer make behind the door deals with these people. These institutions have to be made to understand that “you do the crime you do the time”. Hang’em Judge, Hang’em High. Hang’em Really high!
Newsweek reporting:
“…The SEC and Bank of America will have to return to court for a trial on February 1. The most important issue at hand will be that the judge says that Bank of America "materially lied" in its disclosures about the Merrill bonuses. Ragoff, who reviewed the bank's willingness to pay $33 million in exchange for what appeared to be an affirmation of its innocence, wrote that if the bank is innocent of lying, it would make very little sense to pay to prove it…”
By Douglas A. McIntyre 24/7 Wall Street
Sep 15, 2009 Updated: 1:22 p.m. ET Sep 15, 2009
See full article at: http://www.newsweek.com/id/215396
This Again Is Not News...It's Jungle Politics!
From The Desk Of Dr. Politikong...Over And Out!
From The Desk Of Dr. Politikong...Over And Out!
First....a comment.....great to see you posting again.
ReplyDeleteSecond.....a question..... what happens when a sweethart plea bargain is rejected. What is to prevent the SEC from dropping the case entirely?
Andrew
Thank you, Your Honor! Possibly, just possibly, the rule of law still has some legs.
ReplyDeleteThank you, Dr. Politikong, for sharing your thoughts again.
Jose Espinosa
Albuquerque NM
@ Andrew
ReplyDeleteIf The SCE drops the case, then it looks even worse than it does now, especially given the judge's dicta. But even with that I wouldn't put it past the cronies to wiggle out by claiming the case is going to be dropped whilst they further investigate wrongdoing by BAC's principals.
Good question though. I'd like to hear Dr. Politikong's take on this.
M.H.S
Las Vegas
Dr. Polit., good catch.
ReplyDeleteExactly what I wanted to know too. Is the SEC actually going to have to prepare a case against the company they wanted to let off the hook?
E. Hansen
Tucson, AZ
Politikong, thanks for bringing attention to this important story.
ReplyDeleteThere’s only one way that satisfaction will be achieved with respect to redressing the massive corruption that has transpired over the last (not so) little while.
Change the personnel in the Federal Legislature and do it completely. Once that herculean task is achieved, the other necessary tasks will be relatively easy to dispense with. Those others tasks involve campaign finance reform such that any and all loopholes are closed. More importantly, because it would undermine the need for so much “campaign finance”, shorten the election season for The House and Senate drastically. Do the same for Presidential contests so that they begin and end in no more than six months, tops. Have the campaigns paid for by the public.
Finally, enact term limits.
You want change, that will be just the ticket. Anything else won’t do the job. Anything else is nothing but a hand wringing waste of time.
Edwardo
In reality, only public pressure could stop the SEC from dropping the case. If they did drop it, it would be an admission of their corruption.
ReplyDeleteGood to have you back again. I hope this time things stay sane.
ReplyDeleteIn response to Anon 8:26PM, they freely display corruption, why not make it official? It wouldn't surprise me, everybody is stealing in plain sight.
John King
New York
From Dylan Ratigan today:
ReplyDeleteThe American people have been taken hostage to a broken system. It is a system that remains in place to this day. A system where bank lobbyists have been spending in record numbers to make sure it stays that way.
A system that corrupts the most basic principles of competition and fair play, principles upon which this country was built. It is a system that so far has forced the taxpayer to provide the banks with the use of $14 trillion from the Federal Reserve, much of the $7 trillion outstanding at the US Treasury and $2.3 trillion at the FDIC.
More info on the story that Dr. Politikong broke:
ReplyDeletePart 1
Oscar Wilde once famously said that a cynic is someone 'who knows the price of everything and the value of nothing,'" wrote federal Judge Jed Rakoff yesterday in a scathing order rejecting a $33 million settlement between Bank of America and the SEC. Credit the judge with highlighting the particular political cynicism that drives too many of today's regulators. The SEC alleged earlier this year that BofA had "materially lied" in shareholder communications prior to its takeover of Merrill Lynch, by failing to disclose bonuses owed to Merrill employees. New SEC chief Mary Shapiro figured she'd play off public outrage with a civil lawsuit that would earn some headlines. BofA in August settled for $33 million, neither admitting nor denying guilt.
Judge Rakoff was having none of it. In a 12-page opinion, he tore into the SEC for ignoring its own guidelines and penalizing shareholders rather than the individuals who supposedly acted improperly. The settlement "does not comport with the most elementary notions of justice and morality, in that it proposes that the shareholders who were the victims of the Bank's alleged misconduct now pay the penalty for that misconduct." As for the SEC's argument that this shareholder punishment will result in better management, the judge called it "absurd."
Part 2
ReplyDeleteThe judge also had little sympathy for the SEC's argument that it would be too difficult to pursue executives, since they had been guided by lawyers. "If that is the case, why are the penalties not then sought from the lawyers? And why, in any event, does that justify imposing penalties on the victims of the lie, shareholders?" he asked. He also had harsh words for BofA, which has recently filed court papers claiming its proxy statement was neither false nor misleading. "If the Bank is innocent of lying to its shareholders, why is it prepared to pay $33 million of its shareholders' money as a penalty for lying to them?"
On this point, we think the judge is soft-pedaling the coercive nature of regulatory prosecution. Recall Eliot Spitzer, who used the threat of adverse media and falling stock prices to extort quick Wall Street settlements. Given all the dirty laundry already aired about this deal, including claims that Federal Reserve Chairman Ben Bernanke and former Treasury Secretary Hank Paulson forced a reluctant BofA to conclude its Merrill purchase, it's not surprising if BofA was willing to pay for it to go away.
Part 3
ReplyDeleteJudge Rakoff's larger point that companies too often dip into the shareholder purse instead of fighting the good court fight is nonetheless true. He noted that this decision might have been "made even easier" for BofA given "the U.S. Government provided [it] with a $40 billion or so 'bailout.'" What was a "mere $33 million . . . to get rid of a lawsuit?" The judge had other complaints, but broadly the deal "suggests a rather cynical relationship between the parties: the SEC gets to claim that it is exposing wrongdoing on the part of the Bank of America in a high-profile merger; the Bank's management gets to claim that they have been coerced into an onerous settlement by overzealous regulators.
And all of this is done at the expense, not only of the shareholders, but also of the truth." The parties will go to trial in February. We look forward to it, especially in light of the recent news that Fed and Treasury knew all about these bonuses and stayed mum. Judge Rakoff has done a public service by exposing the political point-scoring that drives far too many regulatory actions.
Great come back blog!!!!!!
ReplyDeleteGotta love Judge Rakoff. Neither Merrill nor B of A achieved results that warrant the payment of bonuses.
Buried in these shenanigans is the fact that Lewis was coerced, that he did fail to advise the shareholders and ultimately it will be learned that the bonuses are entirely inappropriate.
Judge Rakoff is pushing the parties towards what could become a criminal investigation if not a prosecution.
Hugh W
Sacramento, CA
On September 12, I marched in Washington in protest of this administration's economic policies. One rule for the bankers (trillions in bailouts) and another rule for the little guys (unemployment and foreclosures). I've never seen a more polite crowd.
ReplyDeleteNothing will change by being polite. Obama's promises of change are turning out to be nothing more than pre-election rhetoric when campaigning against the party of a very unpopular President. He never meant to deliver change against an established plutocracy that funded his campaign.
It's time for the second American revolution, and we won't succeed by being polite. The French were not polite in 1789, the Russians were not polite in 1917, the Chinese were not polite in 1949 and neither were our forefathers in 1783.
Th great day of reckoning is coming sooner than you think.
Tyler D
Allen County, Ohio
Totally agree, great comeback blog.
ReplyDeleteSo what is the end result here?
SEC files a motion to withdraw the complaint w/o prejudice. BofA does not oppose motion. Rakoff can grant SEC request and allow dismissal w/o prejudice, can dismiss w/prejudice (BofA wins) or deny the request and order discovery and trial. The SEC is not prepared to prove its allegations. I have no doubt that the investigative work was not crisp because if it were then not only would BofA lawyers given investigative testimony but also Paulson, Geithner and Bernanke.
That’s the real crucible here and Rakoff’s very compelling arguments will not find the Obama Attorney General supporting Motions to Compel depositions by BofA of Paulson, Geithner or Bernanke to establish BofA’s ultimate defense of implied immunity grants/cum coercion which resulted in the known failure to disclose material information as approved by government officials. Fun times.
dd
Thank you Politikong from bringing order back to this great blog.
ReplyDeleteBofA is to be sacrificed at the public alter. BofA was forced to assimilate Merrill by our government. The prior Merrill contract bonuses were paid correctly, they were in writing and legally binding. There has been massive fraud at Goldmans, Fargo, City, Chase and BofA, Freddie, Fanny and Fed, but, our government needs a sacrifice to appease the peasents, so Ken Lewis signed his own death warrant when he actually decided to speak up against our governments illegal practice of forcing BofA to buy Merrill.
Just my opinion.
Ben Ward
San Diego, CA
dd,
ReplyDeleteYou ask what is the end result here.
The end result is that the judge is acting in a moral way. He made this clear in his judgment when he wrote: “It (the settlement) is not fair, first and foremost, because it does not comport with the most elementary notions of justice and morality.”
Stanley Hough
Thanks for the interesting article
ReplyDeleteRick Arvielo
LA
Great blog and a lot of great comments this afternoon.
ReplyDeleteThe problem is that this SEC with Mary Schapiro as Director and Khuzami (of Deutsche Bank) as head of Enforcement is totally in bed with the industry it covers; there is no objectivity nor incentive to investigate - it is completely out of hand. Where are the actions against Cerberus/Fuld/Pequot/Thain - not to mention if the agency really had any cojones - Henry Paulson for phoning Goldman with advance notice of every action he took in the Fall of 2008…or really, against Goldman for trading on it (see, When Genius Fail for precedent of Goldman front-running weak competitors based on inside knowledge).
Kathy Wood
(Devon Hills, Sonoma County, CA)
Wow! Someone in authority in the US is actually not totally corrupted by big money.
ReplyDeletePete
Dr. Politikong, any chance of getting a pettition for the Schapiro resignation going?
ReplyDeleteJane D. Jones - San Fran
What happen to this blog today, did all the loonie tunes leave?
ReplyDeleteThe SEC really can't drop this case, which is unfortunate for them.
It is highly likely that BofA had enough on its side to win the case outright if it went into civil proceedings. While it made some sense for the SEC to settle things out of court, the structure of the award was an absolute atrocity to shareholders.
Now, you basically have a judge outing the SEC for the very poor job it did -- it appears the central tenet of the SEC's existence (investor protection) and what they do in practice (punish shareholders at the expense of executive and BoD's) is diametrically opposed.
Given that, why should the SEC exist, if its not fulfilling its basic mandate? I'm sure that Mary K. Shapiro has an answer, but nobody's going to like it.
Kudos in this instance goes to Judge Rakoff.
Gregory P
Arlington TX
Thanks Dr for making us aware of this.
ReplyDeleteAbout damn time; great to see a real jurist and not a political hack in robes. Combine this decision with the Bloomberg FOIA request, and we may actually get some honest answers about what was going on at the Fed and at Treasury.
This is the best news for taxpayers in months
Dorothy Mathers
Santa Barbara
One small step for retail investors, one big "Fuck You" to Mary Schapiro and Ken Lewis.
ReplyDeleteMichael Shelby
NY NY
I have heard on fantastic authority that all it took to get a Wells Notice ‘taken care of’ in the last administration was a well-placed partner at Cleary/Simpson/Sullivan to call Linda Thomsen (very nice lady, now a partner at Davis Polk (great firm), should imho probably serve some time). Please look at the phone logs, someone; how many calls from the GCs at Bear, Lehman, Merrill to her office resulted in actions being dropped? Don’t get me wrong, I love to have my back scratched, but the confidence of the investing public has eroded to nearly zilch in the financial markets; I along with millions of others believe that they are being pumped by the Plunge Protection Team. I hope that grandmas and grandpas who were in there this Spring have learned their lessons and get out, and soon.
ReplyDeleteDr. Politikong, follow up on this please.
J.J. Styles
Long Island, NY, NY
Methinks the Judge has balls the size of Jupiter. God or planet, take your pick.
ReplyDeleteGreat blog (again) Politikong. The wheels are coming off this corrupt freight train.
ReplyDeleteThe Associated Press reported his afternoon that James S. McDonald, president and chief executive of investment management firm Rockefeller & Co. has died of what authorities say is “apparently a self-inflicted gunshot wound” He had also previously been on the Board at troubled CIT Group. He was found in his car at about 3:00 PM Sunday behind a car dealership.
I’m sure that the police are going to investigate this matter further. Rarely do people park their cars behind car dealerships or in public parking lots for that matter when they carry through with such an act like gun shot suicide. According to the AP story, the police are still investigating the matter. AP Quoted lifelong fried of J. McDonald, Barclay McFadden III; “He took his own life”.
Rockefeller & Co. was started in 1882 by John D. Rockefeller. Free Mason, Bilderberg, Illuminati and New World Order conspiracy theorists lump the Rockefellers into the group of world elite that controls most of the central banks of the world. This theory has sparked more interest of late after the added attention paid to the annual Bilderberg meetings where David Rockefellar himself is frequently seen.
Reuters is reporting that a spokesman at the Securities and Exchange Commission declined to comment on whether McDonald or the firm was facing any inquiries. Why decline is my querry? It's easy to say "No, neither he or his firm are or were facing any inquiries". It's silly evasive answers like that of the SEC's that fuel speculation.
McDonald’s last public work was the Rockefeller Investment outlook article he wrote for their last publicly released brochure for the third quarter, called Global Foresight.
In his essay titled Diversification, After the Crisis, Sophisticated asset allocation involves a lot more than artificial labels and mathematical models, he discusses advanced diviersifaction techniques used by Rockefeller & Co.
Lisa Lewis
Washington DC
Indulge me with one more post.
ReplyDeleteThe Associated Press is reporting tonight that New York Governor Andrew Cuomo is going to be pressing charges against the biggest Bank of America executives. Their failure to disclose details about Bank of America’s acquisition of Merrill Lynch in a very rushed and hurried deal last year is at the heart of the problem.
I’m glad. These things need to get to the courts where the public will hear on the record all that went on with the back room dealings. The public needs to hear how the Merrill bonuses were accelerated so that insiders and execs could get their hands on them before the doors were shut. It should be noted that the banks that received bailout money last year had spent over 100 million dollars in lobbying and campaign contributions.
Lisa
beautiful
ReplyDeletei love this judge.
Give me liberty and give Wall St death.....
ReplyDeleteJeremy Platts
Elliot Bay Quay, Seattle, WA
This blog is BACK with a vengeance.
ReplyDelete“The bank’s management gets to claim that they have been coerced into an onerous settlement by overzealous regulators. And all this is done at the expense not only of the shareholders, but also of the truth.”
We definitely need more judges like Jed Rakoff.
Portland, OR
Yup, well done Judge Rakoff but nothing short of watching these crooks beheaded with a guillotine will make me happy. Bastille all over again.
ReplyDeleteL. Goldberg
South Beach, FL
If the SEC as much as hint and I mean just hint, about dropping the case (which they can't do, as it's now in the hands of the court), but if they even suggest that, they should be rounded up like cattle and shot in the head. That would be an admission of conspiracy as far as I am concerned. And that my friends is MY view. These A-holes have f...d this country long enough. Time to let them know that WE the people can take NO MORE!
ReplyDelete"Darwinian cleansing"....those sons of bitches. A true Darwinian cleansing would involve all the dinosaurs being wiped out by the changed environment, allowing the tiny mammals to take over.
ReplyDeletePolitikong you lead the (R)evolution and a lot will follow.
Anne Tricka
San Antonio TX
@Lisa
ReplyDeleteIndulge me with one more post...
I am doing some research on European sites right now regarding exactly that issue and if I can verify what I am reading I will be posting it soon so you can all read it. Hang in there with me!
Thanks for contributing Lisa.
Wow, this blog came alive again, it sizzles.
ReplyDeleteRakoff says explicitly that this deal was structured to allow the SEC to claim a victory and for BAC to complain that it had been unfairly treated when in fact the SEC had not done its job going after those responsible at BAC or their lawyers for the lies. And that shareholders (and US taxpayers), the victims were being revictimized by having to pay the $33 million penalty. Even though the sum was not commensurate with the misdeed, Rakoff did not see why it should be inflicted on shareholders. He also noted that BAC’s consent not to lie to its shareholders in the future was meaningless because BAC had not admitted to lying in the present case. So there was no undertaking not to do what in fact they had done.
A final note is that this was an Obama Administration case. So the screwups in it can be laid at his door. This further undercuts the whole tenor of his admittedly weak tea speech on reform today. With an Obama SEC like this one, can anyone take seriously his commitment to reform?
Katie McDonald
Manhattan, New York
Oooh, this is turning out to be fun. Judge Jed Rakoff is not putting up with Wall Street business as usual (no joke, that was part of the defense offered by Bank of America for its failure to disclose the amount of Merrill bonus payments in the merger proxy sent to shareholders to approve the deal: “of course, everyone knows people on Wall Street get bonuses”) and SEC lack of spine.
ReplyDeleteTerrific blog.
Dr. Kong, thank you for your contribution in trying to make sense out of all this corruption and madness. The waters seem to be getting deeper by the day.
ReplyDeletePattie VanHoof
Chicago, IL
@ dd
ReplyDeleteSeptember 15, 2009 8:51 PM
...SEC files a motion to withdraw the complaint w/o...
If Rakoff allowed a dismissal on this case his balls will be grilled on a Taxan BBQ.
I continue to hold out the faint hope that we will have a Watergate-type breakthrough that exposes the inner workings of the various maneuvers the powers-that-were and that be.
ReplyDeleteJudge Rakoff = Judge Sirica?
@ Dr. Politikong
ReplyDeleteI hope you are right and the SEC doesn't drop the case but actually, its not very clear what might happen next. The SEC has very broad prosecutorial discretion. It is not clear if it is unfettered.
Katie
Check this out as an addendum to my last post
ReplyDeletehttp://pacer.mad.uscourts.gov/dc/cgi-bin/recentops.pl?filename=collings/pdf/09-0476rbcsullivan.pdf
Katie
It seems that we all worry about this case being swiped under the carpet by the SEC. Let me tell you gents and ladies. Legally the SEC would have to drop all charges and provide a reason for doing so. If that happened firstly, the SEC automatically becomes irrelevant as a regulator and its authority to charge anyone becomes subject to legal scrutiny. Secondly, their integrity will go down the regulatory toilet and the White House will have to revisit their regulatory rule book. I am sure they would not do that since the judge ordered them to proceed with litigation. However, in the event of an outside chance that they do find a way to cover this shit, then I agree with the DR. who said we should put them all against the wall and shoot them in the head like cattle.
ReplyDeleteLavern (pissed off) Weber
San Fran CA
Jane D. Jones - San Fran
ReplyDeleteJane, getting an electronic petition going (though a good idea) it would not work. Because of the platform format of this blog, (not verifiable) its validity would come into question thus making its content inadmissible and its intent and signatories questionable. But, if every comment contributor forwards this blog with all its comments to their representative…we just may, just may raise some red flags in the MSM. Personally I have very little faith in the American MSM, but it is a slim chance. Very slim.
@ Michael Shelby
ReplyDeleteNY NY
September 15, 2009 9:27 PM
Michael Shelby raise the Real Flag, I am with you bro.
There we go again, Americans getting distracted by side shows. The SEC's case against BAC is a side show. A totally meaningless, insignificant side show similar to the side show Americans were exposed to last year in regards to the AIG bonuses. You are being played by your corrupt politicians with help from a complicit MSM.
ReplyDeleteThe real issue that's not being addressed is that we have crossed the Rubicon in an economic crisis that has it's root in a fiat currency system that's being backed by nothing. Yes, nothing but faith and promises by bankrupt countries. The money system based on debt is coming to an end. Any system that's bled to death by compounded interest on debt eventually reaches the end, and so has this one.
Robert Evans
Knightsbridge, London, SW1X 7XL
United Kingdom
That's the Politikong I like, angry and rebellious, not this soft Duffy daily thought stuff.
ReplyDeleteWelcome back, Master.
Judge Rakoff proved that the system CAN work. All we need is a few honest men.
ReplyDeleteDavid Pastowoj
Baltimore, MD
Americans naivette never ceases to amaze me.
ReplyDeleteAmericans expect the SEC to do it's job and prosecute these criminals, instead of slapping them on the wrist.
Really??? Do it's job? Prosecute?
Well, think again.
Mary Shapiro was appointed by Obama to head the SEC. Mary Shapiro was at the time heading FINRA (Financial Industry Regulatory Authority) which, you guess it, is an agency with a mandate of protecting investors from financial industry fraud. Finra was involved in several investigations of Mr. Madoff's firm, concluding in 2007 that it violated technical rules and failed to report certain transactions in a timely way but found no evidence of fraudulent activity. In other words, look the other way and just give Mr. Madoff a slap on the wrist.
Why would you expect anything different from Mary Shapiro now?
Pretty hard to stop the corruption when your Clown-in-Chief is a banking industry tool.
John Stacey
Toronto, CANADA
Strong ticket for 2012:
ReplyDeletePOLITIKONG/RAKOFF
Citizens, let's vote some people to represent us that can stop this corruption.
Terry
Boston, MA
@ Robert Evans
ReplyDeleteKnightsbridge, London, SW1X 7XL
United Kingdom
You've got to love the Brits. Always cynical and always pompous asses. They know it all and they do it better than All.
Robert if the Americans are so credulous as to be destructed by "minor" issues like BOA and AIG (Billions of $ at stake) what’s the British excuse for the economic "shit-hole" your country is in? What’s the British excuse for the political discontent prevalent in your country presently. I was travelling through Europe for the last six months and guess what Robert…the majority of the mainland Europeans don’t even want the British in the EU anymore. Any idea WHY that is so?
Richard Brown
Ottawa Canada
A good decision by a judge determined to see that the law is enforced. The judge has noted that SEC policy directs that culpable executives be sanctioned for misleading their shareholders.
ReplyDeleteGord Arnold
Here come the judge! Hooray for the judge! A little time in prison to reflect on justice and morality might help some of these Wall Street barons.
ReplyDeleteF. Doyle
Newark, NJ
I once thought that the Bush/Cox SEC was the worst of all time. (really, how can one image how to top their incompetence?) But I was wrong. This Obama/Shapiro SEC is at least as bad -- incompetent -- and likely worse. The Cox SEC at least was aware of the potential public backlash against this kind of shame and would keep it quiet...
ReplyDeleteDeborah (NYC)
Very interesting blog with a lot of insightful comments.
ReplyDeleteIf the Government follows through with this, this could be a game changer:
"NEW YORK (TheStreet) -- Banks are sweating out the last few months before a major accounting rule takes effect next year, awaiting word from regulators on whether they must move trillions of dollars worth of assets onto their balance sheets all at once or more gradually
It makes a difference because those off-balance sheet assets -- which include credit-card debt, commercial real estate loans, mortgage loans and special purpose vehicles -- will require additional capital reserves. On Wednesday evening, the American Securitization Forum will host a seminar in New York to discuss how the rule change will affect banks and the securitization industry.
Banks have avoided saying precisely how the transition to comply with FAS-140 stands to affect first-quarter 2009 results, in part because there hasn't been a clear directive from Washington."
Charles Foeight
Wilmington, DE
Here is the best example of the fox guarding the chicken coop since Hank Paulson became Treasury Secretary:
ReplyDeleteGary Gensler is the head of the Commodity Futures Trading Commission (CFTC).
"Gensler was considered a key architect of the Commodity Futures Modernization Act, approved in 2000. The CFMA is considered by critics as a key contributor to the financial crisis because it lacked regulation of derivatives such as problematic credit default swaps. In 2008, Gensler worked on the Obama-Biden transition team.
During his February confirmation hearing, lawmakers grilled Gensler on his involvement as a high-level Treasury official in a 2000 law that exempted the $58 trillion credit default swap market from oversight.
Prior to joining the CFTC in May, Gensler has worked at Goldman Sachs on and off for roughly twenty years. Between 1997 and 1999, Gensler worked at the Treasury Department during the Clinton administration, first as an assistant secretary and later, in 1999, as undersecretary."
John Stacey
Toronto, CANADA
Charles:
ReplyDeleteThere will be NO meaningful reform. There are NO game changing rule changes or enforcement. The banks are holding the American middle class hostage. They have hijacked our government.
If you want change, prepare yourself to cross "blood river". It will be the ONLY change you can believe in.
Bruce Brown
NY NY
I want to move to Europe. This country is finished.
ReplyDeleteChristina Varty
Philly
Obama is crooked. Shapiro is crooked. Bernanke & Geitner do not believe what they are saying..they are IN on the scam people.what is so hard to understand or comprehend...when the jig is up the gubmint will have to resort to more overtly forceful control vs its current passive aggressive stance..period...look at history..or the bible..or any movie made about the near future made in the last 30 years for a sneek peak
ReplyDeleteBill Isaac
Hartford, CT
Bravo to Judge Rakoff.........Someone finally has the guts to say call this an absurd settlement........I would suggest that ALL of the $5.6B in Merrill bonuses be taken back from those who actually made the decision to exclude it from the proxy...........Judge Rakoff for PRESIDENT in 2012..............Bravo
ReplyDeleteRoy Jamisson
New York
@John Stacey
ReplyDeleteToronto, CANADA
John thank you for that informative piece. I always said the only real friends we have who tell us the truth, are our friends to the North not the British. Thank you Canada.
Rita Hayward
Miami Florida
I have had a continuing question. Just why did Merrill Executives who were clearly guilty of mismanaging and running Merrill into the ground, get a bonus in the first place? It appears that the taxpayers paid these unfathomable bonuses out of Tarp money. Is this not bank robbery to the most extreme degee. Why are all these guys who engineered this massive fraud and robbery, not in jail awaiting trial? This is a major test to see if there is a special standard of justice for the super rich.
ReplyDeleteJamie Gosden
All this scams will continue until we break the bank oligarchy. ABOLISH THE FED.
ReplyDeleteWho Are The Current Owners of “The Fed Scam”?
While there may still be some smaller shareholders in the “The Fed Scam”, it is believed that the Federal Reserve is owned and controlled primarily by the following Central banks:
1. Rothschild Bank of London
2. Warburg Bank of Hamburg
3. Chase Manhattan Bank of New York
4. Warburg Bank of Amsterdam
5. Rothschild Bank of Berlin
6. Lehman Brothers of New York
7. Lazard Brothers of Paris
8. Kuhn Loeb Bank of New York
9. Goldman Sachs of New York
10. Israel Moses Seif Banks of Italy
ABOLISH THE FED and free your children.
Thomas Dowling
Boston, MA
GREAT one for this judge, now I hope that all the 'witnesses' and the judge
ReplyDeletehave great protection. Look what has happened of late with those in
the financial industry 'committing suicide'....yeah right...I say that the
judge should be given full body guard protection!
Sandra T.E.
Hats off to the judge. Too bad the trial date isn't sooner.
ReplyDeleteHank L.
@ Jamie Gosden
ReplyDeleteAh! hello Jamie you just figured that out?
Ah! Hello Jamie you just figured that out?
This whole thing stinks. The only way to clean up this mess is with guillotines. Trials and executions on the spot. Just like the French Revolution. Execution squares in every state will become the Coliseum of Rome, the Hippodrome of Constantinople, the Bastille Square and many more. These greed consumed bastards would have no place to run to. Wow! I love it already
Jordy P.
NY NY
I always thought that settlement was odd and another sign of how bad things are.
ReplyDeleteBoard and CEO screw shareholders.
Punishment is for company (shareholders) to pay fine to SEC?
Privileged employees in a publicly traded company become ridiculously wealthy.
Common shareholder of publicly traded company gets their measly little dividend cut. Employees get laid off. Thank you Judge.
Fred Miller - Queens, NY
I want to move to Europe. This country is finished.
ReplyDeleteChristina Varty
Philly
Christina, I think that an American who moved to Europe to work made a wise move. The US is definitely no place to live, if you need to earn a living, and are not in the upper 5%. The point of the game in the US is to slash wages and force people into a starvation lifestyle.
For those of us dumb enough to stay here -- we need some kind of strategy to live off our investments. Trying to live on a salary is going to be a hopeless cause for most. We are already seeing the beginnings of mass suffering and real starvation, at least where I live.
American workers are in an extremely ugly spot.
I think I wanto move to Finland. I hear that they treat people better. I would be willing to trade all this so-called "freedom" for living in more socialist country that actually has jobs, stability, and a higher standard of living. If you cut out the top 5%, the standard of living in the US is going to resemble a 3rd world country soon.
Will the Judge be able to connect the dots though? What about Paulson and Bernanke's role in forcing the acquisition down BofA's throat. BofA agreed to pay $29 for a share of ML, but anyone who looked at the books found out it was a $6 stock or a $0 stock (remember Lehman?, GS doesn't count because it was a FOP--friend of Paulson). Ken went ahead with the acquisition to keep his job (he truly feels its his company). But unless you include Paulson & Bernanke's actions in the acquisition, this isn't justice.
ReplyDeleteStew Elliott
Cincinnati OH
"Change We Can Believe In" - NOT!!!!!!!
ReplyDeleteThe SEC is as CORRUPT as ever.
Judge Rakoff should throw the book at the BofA execs AND the SEC STAFF. Fine them all and put them all in jail.
Alex Hamilton
Manhattan, NY, NY
All these posts about Judge Rakoff, the SEC, Mary Shapiro, corruption, Bank Of America and Merrill Lynch are making my head spin.
ReplyDeleteJust give me life thoughts by Ducky
:)
I just have this to say "FUCK YOU BANKSTERS"
ReplyDeleteAn unemployed and foreclosed auto worker
Tony Mallouda
Troy, Michigan
Hang’em Judge, Hang’em High. Hang’em Really high!
ReplyDeleteWISE WORDS!!!!
Thank you Dr. Politikong.
Adriana Emmitt
Chicago, IL
I cannot seem to remember if I voted for Bernanke and a evaporating dollar. Who is it that he answers to again? Goldman and the other private owners of the Fed? What a goddam country when a couple of private banks decide upon the value of the currency by which 305 million Americans live their lives and attempt to conduct business. What a goddam country when the grandest kinds of failure are rewarded repeatedly, especially now that we are moving on to save the commercial real estate industry. I seem to have forgotten why that is in the interest of the 304.99 million odd Americans who are not commercial real estate speculators. What a goddam country when banks can borrow from me at 0% without my approval, then loan it back to me at 29.9%, all with the blessing of the Secretary of the Treasury. What a goddam country when the person who tells me where my tax money is going fails to pay it himself. What a goddam country.
ReplyDeleteAs an aside, from traders we hear that Goldman had been shopping derivatives on mortgages around, looking for someone to make the market, until they found the London branch of AIG that was willing to write them. Then they became their biggest customer. And Lloyd Blankfein sat in on the discussions with the prime government officials as the fate of their rivals, Bear, Lehman and Merrill, were discussed, and AIG was bailed from deep insolvency with Goldman being paid 100 cents on the dollar on these same dodgy derivatives, with Rahm Emanuel acting as facilitator. True or no, it has all the appearance of corruption, and this is why Obama and his team have "NO" credibility for reform on Wall Street.
ReplyDeleteJesse
The SEC will either drop the case all together or present a case so legally weak and flawed that it would be no point to litigate. The bank(st)ers always win in the end.
ReplyDeleteMatthew Cherin
Los Alamitos CA
Remind me again, who appointed Mary Schapiro as Chairman of SEC?
ReplyDeleteJoey Scott
Dallas, TX
yep....Gawd Blest America and Long Live The Banks
ReplyDeleteFellow citizens, join me in stopping this corruption. If you agree, please put your name to this email and share your opinion.
ReplyDeleteDear Chairman Schapiro,
On July 27th 2009, along with the institution of rules for the abolishment of naked short selling, the SEC announced a round table discussion would be held on September 30th dealing with the practice of short selling.
Since then the SEC has requested comment on the above the bid rule as form of reinstating the “Up Tick” rule for short selling.
Since, I cannot attend the round table discussion where I am sure many professors will be presenting papers in favor of naked short selling and short selling by raiders, I would like to have my opinion heard.
1. Naked short selling is still alive and happy because your rules do not yet place pressure on the US broker acting for foreign interests. Stop Canadian naked short selling.
2. Reinstate the “up tick” rule exactly as it is or flash traders will simply make .05 second bids below any point and continue to raid stocks.
Respectfully Submitted,
M.Studart
Anaheim, CA
Email to: chairmanoffice@sec.gov
FUCK the SEC
ReplyDeleteFUCK Mary Shapiro
FUCK Ken Lay
Give us our money back you crooks.
Danny Ortega
San Diego
Make Your Voice Heard To The SEC!
ReplyDeleteHave a look at the 5:29Pm posting.
Thank you.
Mike
“No man ever lost money by underestimating the intelligence of the American public.” – widely attributed to P.T. Barnum.
ReplyDeleteKurt C.
Utah
GREAT BLOG.
ReplyDeleteMassimo Chiapa
Long Pier, SF
thank you judge rakoff
ReplyDeletefinally there is someone within the world’s greatest democray who is actually representing the interests for the greater good of society
the SEC has really shown its true colours here - corrupted, self-centered and toothless
Abdul Malik
Thank you for some really rotten and great news. Finally an authority will object to what appears to be outright fraud. When the SEC can come out and say it clearly that, "it's too difficult to go after the executives because they are so lawyered up" - it's easier to make the victims pay? Make the shareholders pay the penalties for being lied to? Jesus Christ. The shareholders need to take the bank away from the bank and throw the SEC out. It is plainly obvious the SEC is NOT there to protect the investor at all. So what does that say? Who are they protecting if not the criminal in the suit and tie with the diploma and license and of course, his lawyer. SEC = FRAUD. SEC = FRAUD
ReplyDeleteDean Deverell
Arcadia, CA
Great that the judge did this, for shareholders and taxpayers. On the other hand, I find it truly sad, that, we, as Americans, have come to realize, that doing the right thing, by public officials, is more often the exception, than the rule. We shouldn't have to be stunned, that a public official did the right thing, yet, we are.
ReplyDeleteThis is a great example why Judges should be unelected public servants.
ReplyDeleteJanice Merritt
Reno, NV
Bring out the guillotines and the pyres my preferred methods of execution. Because a bullet in their heads is too good for these bastards. Burn them like witches or chop their heads off. There will be a new beacon on top of the Capital.
ReplyDeleteI have never been so discusted with my own country and my government
Leo
Detroit
Check this out and then tell me there is decency left in these people.
ReplyDeletehttp://finance.yahoo.com/news/AP-Source-NY-AG-subpoenas-5-apf-998976972.html?x=0
What is happening to this country. Who's is watching the "shop"?
ReplyDeleteHere are a couple of clips to entertain yourselves and get your blood boiling. Fucking unbelievable!
http://www.youtube.com/watch?v=yt6maprKisI
http://www.youtube.com/watch?v=_jjXCm3W4hA&feature=channel
@ ANON 11:55 PM
ReplyDeleteI hope Andrew Cuomo keeps his socks on and doesn't travel across State lines to visit $5,000/hr hookers.
Gary Stevens
Manchester, NH
@ ANON 12:21 AM
ReplyDeleteYou said it, "Fucking unbelievable"!
What can anyone say after watching that but "fucking unbelievable".
Fucking unbelievable, there, I said it again.
Gary Stevens
Manchester, NH
I expect the 5 board members subpoenaed by Cuomo will say something along the lines of "I know nothing, I saw nothing, I did nothing."
ReplyDeleteTracy H.
Mr. Cuomo...listen carefully, get a good number of perp walks and convictions and the 2012 WH is yours!!!!!
ReplyDeleteJ.K. Attley
NY NY
Would it be too much to ask for a little McCarthyism-esque zeal in incarcerating anyone with so much as a finger print on this fiasco?
ReplyDeleteI want them all behind bars every last lying bastard. Really that is actually a compassionate thought because if they aren't there soon... Yep you got it; lightpoles, stake firings, baseball.... Whatever. So hop to it government, lest anyone think you are a thieving frauding liar participant. If that's the case you get what they get. Get it?
Just try to stay away from the $5000 dollar hookers.
ReplyDeleteAlthough, $20,000 dollar hookers should be OK!
Chris Matthers
NYC
The two rules of senior management:
ReplyDelete1) When you're justifying your pay: You're a genius. You know every detail about your company and you're singularly qualified for your position.
2) When in trouble: You're just a guy. You don't really know much about what goes on at your company, but you do know how to pick the right people: And they're the ones who *really* run the show.
Cuomo subpoenas 5 Bank of America directors
ReplyDeleteHumphrey Bogart, in I believe “To Have and Have Not”
- “I am going to beat both of you, until one of you talk - which means someone will take a beating for nothing”
The US legal system may not dispense justice, but it sure does dispense entertainment!
R. Fresno
I think Bank of America will soon discover that several nice doctors want to have long discussions about possibly diagnosing them with sociopathic/psychopathic mental troubles.
ReplyDeletehttp://www.washingtonpost.com/wp-dyn/content/article/2009/09/15/AR200909...
Janet Haigel
Washington, DC
DR POLITIKONG FOR PRESIDENT
ReplyDeleteJUDGE RAKOFF VICE-PRESIDENT
ANDREW CUOMO ATTORNEY GENERAL
PROBLEM SOLVED
Kathy Adams
Baltimore, MA
Nothing short of hanging just like the Dr. said is acceptable. Hang them high judge hang them high. Right on Kong.
ReplyDeleteRita J
Nashville (where the good people live)
You lead the revolution Kong. I am with you all the way. Just say the word and we can make civil or violent. These blood suckers and their cronies have to be purged!
ReplyDeleteThe people on whose backs this country was build need to be avenged. Yes sir we are with you
A Patriot
Macon Georgia.
Wow wow wow! How long has this blog been on line? How did I miss it. A very interesting exchange of information and views. Count me in
ReplyDeletePerry Vasiliou
My advise is to round every one who was in any way involve with this banking garbage tie their feet to the back end of tractor trailers and drag them through the streets.
ReplyDeleteJohn the executioner
Is this the blog where all the conservative ghosts from years past and year present congregate and scare each other off about the pending apocalypse? Give me a break you guys. Nothing new. The bankers have always screwed the public since the beginning of time. It's the nature of the beast. They are not governed laws and regulatory commissions, they are governed by greed. They screw us over, we bail them out, they screw us over again, we bail them out again and the story goes on and on and on and on. You can't get rid of cancer by cutting a piece here and a piece there. YOU GOT TO CUT IT FROM THE ROOT.
ReplyDeleteJeremiah B.
NY NY