About Me

Name: Gabrielle Cusumano
Biography
Loading...

Create Your Own Blog Find Other Townhall Blogs

Comments

Geithner's Dirty Secret: Five U.S. Banks hold 81% of the total net credit risk exposure in event of default.

JPMorgan Chase holds a staggering $88 trillion in derivatives; Bank of America with $38 trillion, and Citibank with $32 trillion. Number four in the derivatives sweepstakes is Goldman Sachs, with a mere $30 trillion in derivatives; number five, the merged Wells Fargo-Wachovia Bank, drops dramatically in size to $5 trillion. Number six, Britain's HSBC Bank USA, has $3.7 trillion. "

Geithner's dirty little secret
By F William Engdahl   Excerpted from: http://www.atimes.com/atimes/Global_Economy/KD03Dj02.html
 
US Treasury Secretary Tim Geithner, in unveiling his long-awaited plan to put the US banking system back in order, has refused to tell the dirty little secret of the present financial crisis. By refusing to do so, he is trying to save de facto bankrupt US banks that threaten to bring the entire global system down in a new more devastating phase of wealth destruction.
 

The "dirty little secret" that Geithner is going to great degrees to obscure from the public is very simple. There are only at most perhaps five US banks that are the source of the toxic poison causing such dislocation in the world financial system. What Geithner is desperately trying to protect is that reality. The heart of the present problem, and the reason ordinary loan losses are not the problem as in prior bank crises, is a variety of exotic financial derivatives, most especially credit default swaps.

In the Bill Clinton administration of 2000, the Treasury secretary was Larry Summers, who had just been promoted from number two under former Goldman Sachs banker Robert Rubin to be number one when Rubin left Washington to take up the post of Citigroup vice chairman. As I describe in detail in my new book, Power of Money: The Rise and Fall of the American Century, to be released this summer, Summers convinced president Clinton to sign several Republican bills into law that opened the floodgates for banks to abuse their powers. The fact that the Wall Street big banks spent some US$5 billion in lobbying for these changes after 1998 was likely not lost on Clinton.

One significant law was the repeal of the 1933 Depression-era Glass-Steagall Act, which prohibited mergers of commercial banks, insurance companies and brokerage firms such as Merrill Lynch or Goldman Sachs. A second law backed by Treasury secretary Summers in 2000 was an obscure but deadly important Commodity Futures Modernization Act of 2000. That law prevented the responsible US government regulatory agency, Commodity Futures Trading Corporation (CFTC), from having any oversight over the trading of financial derivatives. The new CFMA law stipulated that so-called over-the-counter (OTC) derivatives like credit default swaps, such as those involved in the AIG insurance disaster, (and which investor Warren Buffett once called "weapons of mass financial destruction"), be free from government regulation.

At the time Summers was busy opening the floodgates of financial abuse for the Wall Street Money Trust, his assistant was none other than Tim Geithner, the man who today is US Treasury Secretary, while Geithner's old boss, the self-same Summers, is President Obama's chief economic adviser as head of the White House Economic Council. To have Geithner and Summers responsible for cleaning up the financial mess is tantamount to putting the proverbial fox in to guard the henhouse.

What Geithner does not want the public to understand, his "dirty little secret", is that the repeal of Glass-Steagall and the passage of the Commodity Futures Modernization Act in 2000 allowed the creation of a tiny handful of banks that would virtually monopolize key parts of the global "off-balance sheet" or OTC derivatives issuance.

Today, five US banks, according to data in the just-released Federal Office of Comptroller of the Currency's Quarterly Report on Bank Trading and Derivatives Activity, hold 96% of all US bank derivatives positions in terms of nominal values, and an eye-popping 81% of the total net credit risk exposure in event of default.

The top three are, in declining order of importance: JPMorgan Chase, which holds a staggering $88 trillion in derivatives; Bank of America with $38 trillion, and Citibank with $32 trillion. Number four in the derivatives sweepstakes is Goldman Sachs, with a mere $30 trillion in derivatives; number five, the merged Wells Fargo-Wachovia Bank, drops dramatically in size to $5 trillion. Number six, Britain's HSBC Bank USA, has $3.7 trillion.


After that the size of US bank exposure to these explosive off-balance-sheet unregulated derivative obligations falls off dramatically. Continuing to pour taxpayer money into these five banks without changing their operating system, is tantamount to treating an alcoholic with unlimited free booze.

The government bailout of AIG, at more than $180 billion so far, has primarily gone to pay off AIG's credit default swap obligations to counterparty gamblers Goldman Sachs, Citibank, JP Morgan Chase and Bank of America, the banks who believe they are "too big to fail". In effect, these institutions today believe they are so large that they can dictate the policy of the federal government. Some have called it a bankers' coup d'etat. It definitely is not healthy.

Geithner and Wall Street are desperately trying to hide this dirty little secret because it would focus voter attention on real solutions. The federal government has long had laws in place to deal with insolvent banks. The Federal Deposit Insurance Corporation (FDIC) places the bank into receivership, its assets and liabilities are sorted out by independent audit. The irresponsible management is purged, stockholders lose and the purged bank is eventually split into smaller units and when healthy, sold to the public. The power of the five mega banks to blackmail the entire nation would thereby be cut down to size. Ooohh. Uh Huh?

This is what Wall Street and Geithner are frantically trying to prevent. The problem is concentrated in these five large banks. The financial cancer must be isolated and contained by a federal agency in order for the host, the real economy, to return to healthy function. (continue lengthy article at link)Excerpted and more at Asian Times at: http://www.atimes.com/atimes/Global_Economy/KD03Dj02.html


Hedge fund pays Obama Advisor Larry Summers $5.2 Million in Compensation 

WASHINGTON, April 3 (Reuters) - Lawrence Summers, a top economic adviser to U.S. President Barack Obama, was paid about $5.2 million in compensation by hedge fund D.E. Shaw during the past year, according to financial disclosure forms released on Friday by the White House.

Officials from D.E. Shaw were not immediately available for comment. Summers, a former U.S. treasury secretary, was a part-time managing director of the firm after stepping down as president of Harvard University.

Summers was also paid hundreds of thousands of dollars in speaking fees from major Wall Street firms and financial institutions, including JP Morgan (JPM.N), Citigroup (C.N), Goldman Sachs (GS.N) and Lehman Brothers, the forms showed.

________________________________________________________________________________________________________
TOP TEN U.S. HEDGE FUND FIRMS** (JANUARY 2009)
Firm
AUM ($ billions)
Bridgewater Associates
$38.60
JPMorgan
$32.90
Paulson & Co.
$29.00
D. E. Shaw Group
$28.60
Och-Ziff Capital Management
$22.10
Soros Fund Management
$21.00
Goldman Sachs Asset Management
$20.60*
Farallon Capital Management
$20.00
Renaissance Technologies
$20.00
Barclays Global Investors
$17.00*
Source: Absolute Return
Unless noted otherwise, all asset figures are as of January 1, 2009.
* as of December 31
** the full Billion Dollar Club appears in Absolute Return’s March issue.
Press Release: TOP HEDGE FUND ASSETS DECLINE MORE THAN 32% IN 2008’S SECOND HALF
March 4, 2009
Page 3 of 3
How this survey differs from others
It’s a starting point:
The Absolute Return Billion Dollar Club is the only survey of hedge fund assets in the Americas
that bases its conclusions on a list of all firms known to posses $1 billion or more in hedge fund
assets. The Billion Dollar Club’s totals should necessarily be considered a baseline for the assets of
the U.S. hedge fund industry, as there are myriad firms that are not included in the list because
their assets do not reach the $1 billion threshold. HedgeFund Intelligence produces similar
surveys for Asia and Europe that are combined every six months into our Global Review, which
will be released shortly.
It contains fresh information:
The Billion Dollar Club, whenever possible, bases firm asset totals on January 1 data, which
includes the most recent redemptions and allocations, thereby making the survey more current
and accurate than those focusing on December 31 numbers. In instances where only December
31 data is available, it has been specifically noted in the survey.
About Absolute Return
Absolute Return is the leading source of U.S. hedge fund news and information, featuring
proprietary data and analysts on more than 2,600 U.S. single-manager hedge funds. Absolute
Return, a monthly magazine, and the Absolute Return Directory and Database are divisions of
HedgeFund Intelligence, the biggest provider of hedge fund news and data in the world with the
largest and most knowledgeable editorial and research teams of any hedge fund information
provider. We supply data on over 8,600 funds and comprehensive news and analysis from across
the globe. For more information, please visit www.hedgefundintelligence.com/ar.
##ENDS##
Notes:
About Absolute Return and HedgeFund Intelligence
For more information contact:
Media Contact:
Armel Leslie, Walek & Associates
212.590.0530, aleslie@walek.com
Carolyn Sargent
Deputy Editor, Absolute Return
212.224.3565, csargent@absolutereturn.net
File Format: PDF/Adobe Acrobat - View as HTML
Mar 4, 2009 ... state managing $96 billion. TOP TEN U.S. HEDGE FUND FIRMS** (JANUARY 2009). Firm. AUM ($ billions). Bridgewater Associates. $38.60. JPMorgan ...
www.hedgefundintelligence.com/images/590/.../Billion%20Dollar%20Hedge%20Fund%20Club%20-...

___________________________________________________________________________________________________________________________________________
Treasury Dept. on an unknown search (info via sitemeter.com)
Domain Name   treas.gov ? (U.S. Government)
IP Address   63.167.255.# (Sprint)
ISP   Sprint

Email ItEmail It | Print ItPrint It | CommentsComments (0) | TrackbacksTrackbacks (0) | Flag as offensiveFlag as Offensive

White House Confuses Hillary Clinton With Sex Worker

"...the WH distributed an email to the press announcing a conference call, but included the number 1-900 SEXSTAT,  a phone sex line rather than the conference call number.
 

White House Confuses Hillary Clinton With Sex Worker

That’s Hillary. Mrs. Clinton if you’re nasty.

Yesterday, in what is the latest in a long, hard series of bungles by the White House, reporters who called for an “on-the-record briefing call with Secretary of State Hillary Clinton” were offered the opportunity to provide a credit card if they felt like “getting nasty.”

According to Fox News, the White House distributed an email to the press announcing a conference call, but included the number for a phone sex line rather than the conference call number. Asked for comment White House Press Secretary Bill Burton said the mistake was “one of the stupider things FOX News has covered lately.” I couldn’t agree more Bill, it is one of the stupid things Obama’s administration has done lately and that the press has subsequently covered or, as in this case, not covered.

This may sound cliché at this point, but fantasize with me for moment. Imagine that this conference call had been scheduled for Condi Rice. Are you there with me, baby? You’re calling for Condi and you get Candi? The press would have gone NUTS. Bush would have been bound, gagged, and whipped for it over the course of days. It would have been a press orgy and, what’s more, the one-time thing would have come back to haunt the Bush team for years after. Every time they sent out a press release about Condi … oh, they’d stick with their own phone numbers, sure. But everyone would remember the other number. From that one time. It would be awkward.

But when this happens on Obama’s watch, only Fox covers it and, when they do, the official response from the White House essentially amounts to “**** you, sweetie.”
 
You know, someone earlier today pointed out that competence matters, and so it does. But The One has been anything but competent. His administration is fumbling around like it’s prom night and the zipper is stuck. They are new to everything, and they just keep awkwardly getting it wrong. Gift gaffes, tax cheats, you name it. Friendly countries are looking at us with wry, often disapproving smirks that say “first time?” And unfriendly countries are licking their lips and making sure the windowless white van has a full tank of gas.  Excerpted (More at the link below)
Email ItEmail It | Print ItPrint It | CommentsComments (0) | TrackbacksTrackbacks (0) | Flag as offensiveFlag as Offensive

First YouTube Videos of Riots in London (April 1. 2009)

Anarchy in the Streets!
 
 
Protestors smash RBS Showing that they blame Scotland Banks that created the mess
 
6:17
Protestors attack Royal Bank of Scotland smashing four windows but leave the epicentre the Bank of England where most ...
no rating 1 hour ago 0 views ScotsBankingShame
 
  
BREAKING NEWS: Protestors attack Royal Bank of Scotland but leave Bank of England alone
 
2:33
April 1st. Protestors attack Royal Bank of Scotland London Headquarters smashing four windows AND INVADING THE BUILDING ...
no rating 2 hours ago 0 views ScotsBankingShame no rating
Protestors NOW ON THE ROOF after attacking Royal Bank of Scotland smashing four windows
1:10
Protestors attack Royal Bank of Scotland smashing four windows but leave the epicentre the Bank of England where most ...
no rating 2 hours ago 0 views ScotsBankingShame
 
 
G20 protests London, riot police deployed 1st April 2009 - Obama arrives in the UK
 10:00
G20 protests London, riot police deployed 1st April 2009 - Obama arrives in the UK ...
no rating 1 hour ago 0 views GoldenLightD no rating
http://www.dailysquib.co.uk/?c=122&a=1729 April 1st Party like it's 1642 ...
 
4 days ago 576 views DailySquibNewspaper
 
G20 Financial Fools Day Rioting In London
7:00
Raw footage of protesters rioting in London's financial district before the G20 Summit on April 1, 2009, which was ...
no rating 2 hours ago 0 views KaiserGerhardt
 
G20 London UPDATE! 2.49pm 01/04/2009 
4:35
Royal bank of Scotland smashed up! Please sub my channel for minute by minute updates! ...
 
2 hours ago 296 views skunkace
Email ItEmail It | Print ItPrint It | CommentsComments (0) | TrackbacksTrackbacks (0) | Flag as offensiveFlag as Offensive

Taliban Leader Vows To Attack D.C. Says “Will Amaze The World” Homeland Security

"The commander of the Pakistani Taliban claimed responsibility Tuesday for a deadly assault on a Pakistani police academy and said the group was planning a terrorist attack on the U.S. capital." [AP Snip]
 
 

Taliban Leader Vows To Attack D.C. Says “Will Amaze The World”

Posted: 31 Mar 2009 07:59 AM PDT


UPDATE:Taliban Leader’s Washington Threat Is Credible, Analysts Say
Terrorism experts call Mehsud a “rising young star” who is linked both to the December 2007 assassination of former Prime Minister Benazir Bhutto and the bombing last September that killed 54 people in the Marriott hotel in Islamabad — and they say his threat to carry out an attack in Washington should not be discounted.“It should be taken seriously because [Mehsud] has ordered the deaths of many Pakistanis and Afghans and has a close alliance with Al Qaeda,” said James Phillips, a terrorism expert and senior research fellow for Middle Eastern Affairs at the Heritage Foundation.

“It’s not too much of a stretch to think he might be involved in an attack on the U.S. if he’s able to get his followers inside the United States. He’s a militant extremist whose threats cannot be ignored.

———–
Pakistan’s most wanted militant on Tuesday claimed responsibility for a deadly police academy assault and threatened to attack the US capital in retaliation for a series of air strikes.

Pakistani Taliban chief Baitullah Mehsud, for whom the United States has posted a five-million-dollar reward, said there would be more attacks after Monday’s raid on the Lahore police training school which left 12 people dead.

“We claim responsibility for the attack,” Mehsud, blamed for the 2007 assassination of former Prime Minister Benazir Bhutto, told AFP by telephone from an undisclosed location.

“This was in retaliation for the ongoing drone attacks in the tribal areas. There will be more such attacks.”

“Very soon we will take revenge from America, not in Afghanistan but in Washington, which will amaze the entire world,” Mehsud warned.

The U.S. recently announced a $5 million bounty on Mehsud’s head. Asked about it, he stated he would be happy to “embrace martyrdom.”

Mehsud has made voluminous threats against the West for years, as he rose to his current stature as the head of the Taliban in Pakistan, and he gave no apparent specifics in his threat on the U.S. capital on Tuesday.

Source

This story comes to us via Homeland Security - National Terror Alert. National Terror Alert is America's trusted source for homeland security news and information.

Share this post

"Taliban Chief Vows 'Amazing' Attack on Washington 'Soon' " AP

DERA ISMAIL KHAN, Pakistan —  The commander of the Pakistani Taliban claimed responsibility Tuesday for a deadly assault on a Pakistani police academy and said the group was planning a terrorist attack on the U.S. capital.

Baitullah Mehsud... (continue at Fox News.com at: http://www.foxnews.com/story/0,2933,511740,00.html
 

Terrorists Attack Police Academy in Lahore Pakistan

Posted: 30 Mar 2009 10:45 AM PDT


Unidentified gunmen armed with assault rifles and grenades made a violent attack on a police training school in eastern Pakistan city of Lahore on Monday, leaving the city overshadowed with terrorism threats.

The intense fighting between Pakistan military and police and the gunmen started from 7:30 a.m. local time in the second largest city in Pakistan and lasted about eight hours.

Advisor on Prime Minister’s Interior Rehman Malik confirmed that four terrorists have been killed and the others have been arrested, but he did not give exact figure of the gunmen as well as the figure of casualties in the attack.

There is still conflicting reports on the casualties. Earlier reports said at least 25 people were killed and 90 others injured when the masked gunmen attacked the police.

A group of armed men huddled next to a minaret on a mosque rooftop leapt to their feet and shouted “Allahu Akbar”. For once it was Pakistani security forces celebrating rather than militants. Across a main road in the water-buffalo market town of Manawan, outside Lahore, police commandos fired triumphal “aerial” rounds. They had recaptured a police-training centre which militants had stormed eight hours earlier on Monday March 30th.

Lax security at the ramshackle academy allowed a dozen militants to rampage among 800 or more mostly unarmed police recruits. “The operation is over,” said the interior minister, Rehman Malik. He said that if security forces had not been on high alert, the toll would have been higher. “The attack was to dishearten, to demoralise the civilian security services,” said a local administrator. Terrorist attacks in Pakistan have become such frequent occurrences that people have grown used to asking when and where the next assault would come.

Cadets said that the militants burst onto the parade ground at 7.30am through the main gate and from the rear, spraying rounds from Kalashnikovs and hurling grenades. The terrorists’ faces were obscured by black cloth. Several were reported to have donned police uniforms. Policemen jumped from second-floor windows and stampeded over walls to escape. An armoured personnel carrier advanced then beat a retreat. A lull in the firefight ensued.

Just before 4pm commandos fought back, launching an assault amid intense gunfire. Spectators watching from the bazaar scuttled for cover during several minutes of crackle and blasts. It was a rare success and a joint operation by the army, paramilitary rangers and Punjab’s “elite” police squad. Even the smart, cravat-wearing highway police played a role.

Read Full Article

Gunmen Made Stand in Pakistan Barracks’ Top Floor

Blood-soaked bedding was strewn with blackened body parts in a police barracks in the Pakistani city of Lahore on Monday after the last of the gunmen who stormed the building blew themselves up.

The attackers, armed with grenades and rifles, launched an assault on the police training center during a morning drill session, shooting down recruits on their dusty parade ground.

They held off police and soldiers for about eight hours before the last three gunmen made a stand on the top floor of the three-storey building. They blew themselves up as security forces launched a final assault, police said.

At least eight recruits were killed and 89 wounded. Four gunmen were killed and three were captured, the government said. Rehman Malik, the Interior Ministry head, said the Pakistani Taliban were suspected of carrying out the attack.

“I can’t tell you what I saw and what kind of terror I went through,” 19-year-old recruit Zahid Usman told his mother by mobile phone shortly after the violence ended.

“They were not human beings. They were not Muslims, they were evil,” a sobbing Usman said.

Read Full Article

Fighters Loyal to Pakistani Taliban Leader Baitullah Mehsud Suspected

Fighters loyal to Pakistani Taliban leader Baitullah Mehsud were suspected of carrying out an attack on a police academy in Lahore on Monday, Interior Ministry head Rehman Malik said.

The militants killed eight cadets before being overwhelmed by a commando assault. Four militants died during the assault, while three suspects have been captured, officials said.

Malik told a news conference that one of the suspects was an Afghan.

Source

This story comes to us via Homeland Security - National Terror Alert. National Terror Alert is America's trusted source for homeland security news and information.

Share this post
 
Comments:
Donnie writes: Oh Well.... Nobody will really miss it.
 
caday5 writes: As We have heard... these claims before, we have to admit that we have done way too little to fight terrorism. Specifically, we have not even listened to, let alone address the real causes of terrorism. Today's terrorism is about retaliation for what we have done.
Email ItEmail It | Print ItPrint It | CommentsComments (2) | TrackbacksTrackbacks (0) | Flag as offensiveFlag as Offensive
« Previous12345Next »