Archive for wall street bailout

VIDEO: Bernie Sanders Writes Law to Break Them Up: 10 Largest Banks Bigger Now Than Before Taxpayer Bailout

banks too big to prosecute sanders v holder

Your Daily Dose of BuzzFlash at Truthout, via my pal Mark Karlin:

As Sen. Bernie Sanders (I-Vermont)  charges in a news release issued from his Senate office:

The 10 largest banks in the United States are bigger now than before a taxpayer bailout following the 2008 financial crisis when the Federal Reserve propped up financial institutions with $16 trillion in near zero-interest loans and Congress approved a $700 billion rescue for banks that some considered “too big to fail.” Attorney General Eric H. Holder Jr. now says the Justice Department may not pursue criminal cases against big banks because filing charges could “have a negative impact on the national economy, perhaps even the world economy.”

“We have a situation now where Wall Street banks are not only too big to fail, they are too big to jail,” Sanders said. “That is unacceptable and that has got to change because America is based on a system of law and justice.”

[...]

As a result of this Obama administration economic injustice and the threat that letting the same rip-off artists who caused the American economy to collapse continue to run even bigger banks and financial entities, Sanders and his staff penned a bill. It’s a short piece of legislation that gets right to the point in Section 3:

Notwithstanding any other provision of law, beginning 1 year after the date of enactment of this Act, the Secretary of the Treasury shall break up entities include on the Too Big To Fail List, so that their failure would no longer cause a catastrophic effect on the United States or global economy without a taxpayer bailout.

[...]

If you want your dose of restoring economic accountability and justice to America, watch the Sanders/Sherman news conference on the law that would break up the too big to fail banks, [in the video above].

Please read the entire post here.

When US Doesn’t Prosecute Wall Street Fraudsters, Taxpayers Get the Blowback

greed

Your Daily Dose of BuzzFlash at Truthout, via my pal Mark Karlin:

What happens when the government gives a get out of jail free pass to executives who run financial entities “too big to fail”?  The US taxpayers get the blowback.

The stockholders of A.I.G. — the company which most came to symbolize egregious arrogance and double standards of banks and hedge funds (“no government financial regulation, but the taxpayers should bail us out when we gamble and lose”) — are in the process of suing the federal government.  [...]

But the “taxpayer assumes responsibility for our gambling, but we get all the profits from being bailed out” attitude doesn’t sit well with some lawmakers, such as newly elected Sen. Elizabeth Warren (D-MA), according to The NYT. Warren issued a statement that included a stern rebuke to A.I.G. and its shareholders [...]

Meanwhile, the honchos at Goldman Sachs just executed a scheme to avoid higher tax rates on their multi-million dollar bonuses, as reported by journalist Susan Antilla [...]

As Antilla, who regularly writes for the Bloomberg View, opines:

Goldman and its too-big-to-fail brethren are banks that accepted welfare and are in debt to U.S. taxpayers for averting disaster. This hasn’t been about hard-nosed capitalism since those first TARP wire transfers made their way into Goldman Sachs’ coffers.

While the DOJ and SEC should have been regarding the 2007 economic crash as a crime scene, they treated it like something deserving a parking ticket for the financial elite.

As a result, the same people who were responsible for so much economic misery have been emboldened to once again let greed trump accountability.

Please read the whole post here.

When the Financially Corrupt Were Tortured, Hanged and Beheaded

Your Daily Dose of BuzzFlash at Truthout, via my pal Mark Karlin:

But we are a civilized society for those of the top 1% who defraud customers, the nation, and engage in risk taking for profit that undermines the world economy. Perish the thought of capital punishment, we don’t even put those who oversee Wall Street financial malfeasance in jail; heck, we don’t even charge them.

Yes, a few underlings, “guppies,” are arrested now and then, but that is because their fraud was not large enough and was strictly personal (such as embezzlement). But if it is illegal activity on a massive firm-wide scale, then no one is held accountable. The financial giants just get a fine (if that even happens) that is less than the amount that they profited from their violation of regulations and the law, so they end up with a net revenue gain as a reward for their felonious behavior.

Zweig concludes, “Wall Street offers its risk-takers the potential to earn tens of millions, even hundreds of millions of dollars, when bets pay off, with no real penalties when bets go bad. Until – or unless – that culture changes, nothing fundamental will change.” But he remains skeptical that holding individuals responsible for “too big to fail” illegal behavior will work.

That’s his opinion.

In our book, it’s still worth a try. Enabling the current double standard of putting a person in jail for kiting a few checks, but not even charging anybody for pre-meditated actions that lead to billions of dollars in fraudulent activity, well that’s not only unfair; it results in a nation committing financial suicide.

Please read the rest here. I left out a lot.

The federal bailout “provided taxpayers with higher returns than they could have made buying 30-year Treasury bonds”

Via Taegan:

The federal government’s bailout of financial firms “provided taxpayers with higher returns than they could have made buying 30-year Treasury bonds — enough money to fund the Securities and Exchange Commission for the next two decades,” Bloomberg reports.

The government has earned $25.2 billion on its investment of $309 billion in banks and insurance companies, an 8.2 percent return over two years, according to data compiled by Bloomberg. That beat U.S. Treasuries, high-yield savings accounts, money-market funds and certificates of deposit. Investing in the stock market or gold would have paid off better.”

Another talking point down the drain.

Sen. Sherrod Brown seeks 50% tax on Wall Street bonuses

By GottaLaff

Shorter Sherrod Brown: You owe Main Street:

[Sen. Sherrod Brown (D-Ohio)] Brown wants to impose a 50 percent tax on executive bonuses at firms that received aid under the $700 billion financial bailout package. Brown’s legislation would use the revenue to support loans from the Small Business Administration (SBA).

Shorter Laffy:

Video- President Obama Calls for Tougher Regulations on Banks

This sounded perfectly reasonable to me, but the bald headed guy from CNBC was very sad about it.

Cartoon of the Day


Click to enlarge, via.