Tuesday, December 21, 2010

Who Watches the Watchmen?

 "Inside the Securities and Exchange Commission, the organization is bracing for a public outcry, according to people who have recently spoken with some high-ranking officials about the prospect of a WikiLeaks release of bank documents."

Prospect of WikiLeaks Dump Poses Problems for Regulators

“Tens of thousands of its internal documents will be exposed on Wikileaks.org with no polite requests for executives’ response or other forewarnings.”

The impending Bank Leak may be:

"...an embarrassment for the United States government, which has spent millions of dollars investigating Wall Street in the last two years without a scalp to show for it."

"The scuttlebutt is that WikiLeaks will reveal documents in which bankers discussed how they duped a client, how they dressed up their numbers or even how they tried to pull one over on regulators."

"Sadly, perhaps cynically, that’s almost to be expected."

"The big surprise would be that such chicanery was documented, in black and white, and that regulators hadn’t found it yet 

— or worse, they had found it and did nothing about it."

http://dealbook.nytimes.com/2010/12/20/prospect-of-wikileaks-dump-poses-problems-for-regulators/?ref=business

 

Sunday, December 19, 2010

‘Revisionist Whitewash’

GOP omits ‘derivatives’ from crisis report

By Ronald D. Orol, MarketWatch

WASHINGTON (MarketWatch) — Republicans omitted the words “derivatives” and “deregulation” from their report released Wednesday on the cause of the financial crisis that shook the economy to the brink in 2008.

REPUBLICAN COMMISSIONERS
ON THE FINANCIAL CRISIS INQUIRY COMMISSION


‘Welcome to Information Retrieval’
Terry Gilliam’s Brazil

MarketWatch Article:

 http://www.marketwatch.com/story/gop-omits-derivatives-from-crisis-report-2010-12-15?reflink=MW_news_stmp

GOP Members break with commission and release independent interpertation:

Financial Crisis Primer


http://republicanleader.house.gov/UploadedFiles/Financial_Crisis_Primer_Final.pdf


Revisionists

Talking Business

Explaining the Crisis With Dogma

"But more recently, it has had to do with the growing tug of war between the commissioners over which financial crisis narrative would win out.

The Republican minority, fearing their view would get short shrift, pre-emptively put forward a CliffsNotes version of their theory of the case. In other words, they responded to a report that hasn’t even yet been written, much less read and voted on by the members.


Is there such a word as “presponse?” Perhaps we should coin it to describe what took place this week at the F.C.I.C."

http://www.nytimes.com/2010/12/18/business/18nocera.html?partner=rss&emc=rss    

& RENEGADES

Hon. Bill Thomas
Commission Vice Chairman


Hon. Bill Thomas

 

Peter J. Wallison
Commissioner

Peter J. Wallison

Keith Hennessey
Commissioner

 

Douglas Holtz-Eakin
Commissioner

Douglas Holtz-Eakin 

Sunday, December 12, 2010

Griftopia: Bubble Machines, Vampire Squids, and the Long Con...

"Matt Taibbi's unsparing and authoritative reporting on the financial crisis has produced a series of memorable Rolling Stone features. He showed us how Goldman Sachs, that "great vampire squid", played a central role in creating not only the housing bubble but four other big speculative booms that filled its coffers while wrecking the American economy. He explained how Wall Street banks cooked up schemes that helped decimate municipal budgets and cost countless jobs, and how Wall Street lobbying led to a financial reform bill that won't prevent another meltdown. Taibbi builds on that eye-opening work in his new book, Griftopia: Bubble Machines, Vampire Squids, and the Long Con That is Breaking America, due out from Spiegel & Grau on November 2. In this exclusive excerpt, he describes how our cash-strapped country is auctioning off its highways, ports and even parking meters at fire sale prices — and finding eager buyers in the unregulated sovereign wealth funds of oil-rich Middle Eastern countries."

The dramatic story behind the most audacious power grab in American history


The financial crisis that exploded in 2008 isn’t past but prologue. The stunning rise, fall, and rescue of Wall Street in the bubble-and-bailout era was the coming-out party for the network of looters who sit at the nexus of American political and economic power. The grifter class—made up of the largest players in the financial industry and the politicians who do their bidding—has been growing in power for a generation, transferring wealth upward through increasingly complex financial mechanisms and political maneuvers. The crisis was only one terrifying manifestation of how they’ve hijacked America’s political and economic life.

Rolling Stone’s Matt Taibbi here unravels the whole fiendish story, digging beyond the headlines to get into the deeper roots and wider implications of the rise of the grifters. He traces the movement’s origins to the cult of Ayn Rand and her most influential—and possibly weirdest—acolyte, Alan Greenspan, and offers fresh reporting on the backroom deals that decided the winners and losers in the government bailouts. He uncovers the hidden commodities bubble that transferred billions of dollars to Wall Street while creating food shortages around the world, and he shows how finance dominates politics, from the story of investment bankers auctioning off America’s infrastructure to an inside account of the high-stakes battle for health-care reform—a battle the true reformers lost. Finally, he tells the story of Goldman Sachs, the “vampire squid wrapped around the face of humanity.”

Taibbi has combined deep sources, trailblazing reportage, and provocative analysis to create the most lucid, emotionally galvanizing, and scathingly funny account yet written of the ongoing political and financial crisis in America. This is essential reading for anyone who wants to understand the labyrinthine inner workings of politics and finance in this country, and the profound consequences for us all.

Rolling Stone Expose on Goldman Sachs



"The first thing you need to know about Goldman Sachs is that it's everywhere. The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled dry American empire, reads like a Who's Who of Goldman Sachs graduates..."

Taibbi on the Gangbang of Bureaucratic Fraud

"this foreclosure fiasco is a story about wide-scale bureaucratic fraud, with a kind of mortgage counterfeiting and a gangbang mentality with regard to the securitization process has infected the entire system."