Journalist @baltimoresun writer artist runner #amwriting Chaplain PIO #partylikeajournalist

Journalist @baltimoresun writer artist runner #amwriting Chaplain PIO #partylikeajournalist
Journalist @baltimoresun writer artist runner #amwriting Md Troopers Assoc #20 & Westminster Md Fire Dept Chaplain PIO #partylikeajournalist
Showing posts with label Business Econ Wall St SEC. Show all posts
Showing posts with label Business Econ Wall St SEC. Show all posts

Tuesday, December 20, 2011

The American: Cleaning House: The Financial Crisis and the GSEs By Edward Pinto



TUESDAY, DECEMBER 20, 2011
TODAY'S FEATURE
By Edward Pinto
Disclosures contained in SEC complaints show the need for further investigation of Fannie and Freddie's characterization of subprime loans.
Read More
THE ENTERPRISE BLOG
A terrifying appraisal of Greece
By James Pethokoukis
DATAPOINTS
Throwing FDR under the Bus?
By Steve Conover
Good as Gold?
By John Steele Gordon
Immigration as Economic Renewal
By Madeline Zavodny
Why Unemployment Is Worse Than You Think
By Ike Brannon and Matt Thoman
The Class Warfare We Need
By Steve Conover
American Enterprise Institute for Public Policy Research
1150 Seventeenth Street, N.W., Washington, D.C. 20036
P: 202.862.5800 F: 202.862.7177 www.aei.org


*****

Wednesday, October 12, 2011

Business Insider - CHARTS: Here's What The Wall Street Protesters Are So Angry About...

CHARTS: Here's What The Wall Street Protesters Are So Angry About...

The "Occupy Wall Street" protests are gaining momentum, having spread from a small park in New York to marches to other cities across the country.
So far, the protests seem fueled by a collective sense that things in our economy are not fair or right.  But the protesters have not done a good job of focusing their complaints—and thus have been skewered as malcontents who don't know what they stand for or want. 


[...]
So, what are the protesters so upset about, really?
Do they have legitimate gripes?
To answer the latter question first, yes, they have very legitimate gripes.
And if America cannot figure out a way to address these gripes, the country will likely become increasingly "de-stabilized," as sociologists might say. And in that scenario, the current protests will likely be only the beginning....
[...]
http://www.businessinsider.com/what-wall-street-protesters-are-so-angry-about-2011-10?op=1

Business Insider - CHARTS: Here's What The Wall Street Protesters Are So Angry About...
*****

Saturday, May 08, 2010

Smoking Gun: Frank Memo Exposes Dem Campaign To Protect Financial Crisis Culprits


House Republican Leader John Boehner - - Smoking Gun: Frank Memo Exposes Dem Campaign To Protect Financial Crisis Culprits
GOP Leader: “The Only Reason For Democrats To Continue Coddling Fannie Mae And Freddie Mac Is To Protect Themselves, Not American Taxpayers.”

Washington, May 6 -

Just hours before one of the government mortgage companies responsible for triggering the financial meltdown reported that it will need another taxpayer bailout, one of its chief enablers on Capitol Hill, House Financial Services Chairman Barney Frank (D-MA), issued a memo urging the Obama Administration to circle the wagons.

For years, Republicans consistently raised red flags about Fannie and Freddie’s financial condition and proposed responsible reforms only to be thwarted by Democrats such as Chairman Frank who have deep political ties to the worst offenders. These same powerful Democrats are now pushing for a financial reform bill that doesn’t even address the need to fix these government mortgage companies. Now, with Freddie Mac set to ask American taxpayers for another massive bailout check, Chairman Frank is pleading with fellow Democrats to hold the line.

According to Politico, Chairman Frank’s memo – which was not written for public consumption expresses concern “that the GOP is scoring points with its attacks on housing giants Fannie Mae and Freddie Mac, and he’s urging the White House to fight back.” House Republican Leader John Boehner (R-OH) responded to Chairman Frank’s memo and Washington Democrats’ coordinated effort to protect Fannie Mae and Freddie Mac:

“After freely enabling the high-risk lending that allowed Fannie Mae and Freddie Mac to run our economy into the ground, Washington Democrats are shamelessly propping up their political benefactors at taxpayer expense. The only reason for Democrats to continue coddling Fannie Mae and Freddie Mac is to protect themselves, not American taxpayers. But with Americans clamoring for an end to backroom deals and permanent bailouts, Chairman Frank and Washington Democrats have nowhere left to hide.”

A must-read editorial in today’s Wall Street Journal notes how “reforming the financial system without fixing Fannie and Freddie is like declaring a war on terror and ignoring al Qaeda”:

“One sign that the White House financial reform is less potent than its advertising claims is that it doesn't even attempt to reform the two companies at the heart of the housing mania and panic, Fannie Mae and Freddie Mac.

Unreformed, they are sure to kill taxpayers again. Only yesterday, Freddie said it lost $8 billion in the first quarter, requested another $10.6 billion from Uncle Sam, and warned that it would need more in the future. This comes on top of the $126.9 billion that Fan and Fred had already lost through the end of 2009. The duo are by far the biggest losers of the entire financial panic—bigger than AIG, Citigroup and the rest.

“From the 2008 meltdown through 2020, the toxic twins will cost taxpayers close to $380 billion, according to the Congressional Budget Office's cautious estimate. The Obama Administration won't even put the companies on budget for fear of the deficit impact, but it realizes the problem because last Christmas Eve it raised the $400 billion cap on their potential taxpayer losses to . . . infinity. Moreover, these taxpayer losses understate the financial destruction wrought by Fan and Fred.”

In an editorial last week, The Christian Science Monitor asked the obvious question:

How can Wall Street itself be reformed without a Fannie-Freddie overhaul? The US mortgage market remains the second largest market for securities in global finance. The two GSEs represent nearly half of the residential mortgage market. And even as Mr. Obama promises no repeat of the big bailouts of 2008-09, he’s still putting money into these big players.”

Much like the backroom deal-laden health care law President Obama and the Democratic Congress forced upon a nation that didn’t want it, President Obama’s Wall Street bailout bill contains a host of special-interest carve-outs and loopholes designed to favor Democrats’ most powerful campaign contributors, bureaucrats, and political allies. Today’s Politico takes a look out how “when Democrats set out to reform Wall Street, they also included a few provisions that benefit their allies in the labor movement.” To learn more, visit the GOP Leader Blog.

House Republicans have listened to the American people and introduced comprehensive financial reform legislation that would end the endless bailouts, reform Fannie Mae and Freddie Mac, and hold Wall Street accountable. For more information on the House Republican plan,
click here.

http://republicanleader.house.gov/News/DocumentSingle.aspx?DocumentID=184451

*****

Kevin Dayhoff Soundtrack: http://kevindayhoff.blogspot.com/ = http://www.kevindayhoff.net/ Kevin Dayhoff Art: http://kevindayhoffart.blogspot.com/ or http://kevindayhoffart.com/ = http://www.kevindayhoff.com/ Kevin Dayhoff Westminster: http://kevindayhoffwestgov-net.blogspot.com/ or http://www.westgov.net/ = www.kevindayhoff.org Twitter: https://twitter.com/kevindayhoff Twitpic: http://twitpic.com/photos/kevindayhoff Kevin Dayhoff's The New Bedford Herald: http://kbetrue.livejournal.com/ = www.newbedfordherald.net Explore Carroll: www.explorecarroll.com The Tentacle: www.thetentacle.com

Friday, April 23, 2010

Washington Post: News Alert: Goldman Sachs readies forceful response


News Alert: Goldman Sachs readies forceful response
09:35 PM EDT Friday, April 23, 2010
--------------------

Goldman Sachs is preparing its most detailed defense yet to allegations that it misled clients in its mortgage securities business, arguing that it was unsure whether housing prices would rise or fall and did not take any action at odds with the interests of its clients.

An internal Goldman document, prepared for senior executives and obtained by The Washington Post, addresses the criticism that the bank invested its own money betting against the housing market while simultaneously urging clients to invest in securities that would increase in value only if the housing market did.

For more information, visit washingtonpost.com:
http://link.email.washingtonpost.com/r/U38ITL/CZ4TR/HQ1E1P/F3Y3P1/7D7C6/XL/t
*****

Wednesday, April 21, 2010

Testimony Could Undercut SEC Charge Against Goldman


Testimony Could Undercut SEC Charge Against Goldman  —  The government has testimony from a Paulson & Co. official that could contradict its own claims against Goldman Sachs, CNBC has learned.  —  Paolo Pellegrini told the government that he informed ACA Management that Paulson intended to bet against …
 
RELATED:
Rich Blake / ABCNEWS:
Largest Hedge Fund Political Donations Go to Democrats

*****

Paulson reassures on Goldman role

The timing of the Securities and Exchange Commission civil law suit against Goldman Sachs is curious at best and smells of dirty politics.  Never mind the SEC will most likely not prevail ...  As you start peeling away the layers of the onion on this, perhaps starting here is as good as any place:
 

(Reuters) - Paulson & Co, the hedge fund linked to civil fraud charges against Goldman Sachs Group Inc, moved to head off investor concerns about its role in a deal that has scarred the reputation of the Wall Street bank and overshadowed blow-out quarterly earnings.

Goldman is accused of defrauding investors by failing to say that prominent hedge fund manager John Paulson bet against a Goldman subprime debt product that he helped design.

Goldman is being investigated by the Securities and Exchange Commission (SEC) and Britain's market watchdog, which launched its own probe on Tuesday. Its shares are down 13 percent since the SEC laid its charges, and closed 2 percent lower on Tuesday despite thumping quarterly earnings expectations.

Goldman's troubles also caused political reverberations.

A top Republican congressman questioned whether politics affected the timing of the government's case, while in Britain, the Liberal Democrat party's leader said Goldman should be banned from UK government contracts until the case is settled.

Paulson, in a conference call on Monday and followed up with a letter to investors late on Tuesday, says neither he nor anyone else at the firm had received a so-called Wells notice indicating that charges might be filed against the fund, several investors who listened to the call said.

No one had yet notified the $32 billion fund of their intentions to pull money out, they said.

Read the entire article here: http://www.reuters.com/article/idUSTRE63K0C620100421?feedType=nl&feedName=usbeforethebell

*****

Monday, June 29, 2009

Bernard Madoff Sentenced to Maximum 150 Years in Prison

Bernard Madoff Sentenced to Maximum 150 Years in Prison

Confessed Ponzi-schemer Bernie Madoff, who swindled investors out of as much as $65 billion, is sentenced to the maximum allowable 150 years in jail.

For more information, visit washingtonpost.com

Madoff Speaks at Sentencing

Live Blogging Hearing for confessed Ponzi schemer is underway now in Manhattan. Frank Ahrens 11:01 a.m. ET

20090629 sdosm Bernard Madoff Sentenced to Maximum 150 Years in Prison

Kevin Dayhoff Soundtrack: www.kevindayhoff.net Kevin Dayhoff Art: www.kevindayhoffart.com Kevin Dayhoff Westminster: www.westgov.net

Sunday, September 21, 2008

Statement by Secretary Henry M. Paulson, Jr. on Comprehensive Approach to Market Developments


Statement by Secretary Henry M. Paulson, Jr. on Comprehensive Approach to Market Developments

From the
Press Room of the U.S. Department of the Treasury

September 19, 2008

Washington, DC-- Last night, Federal Reserve Chairman Ben Bernanke, SEC Chairman Chris Cox and I had a lengthy and productive working session with Congressional leaders. We began a substantive discussion on the need for a comprehensive approach to relieving the stresses on our financial institutions and markets.

We have acted on a case-by-case basis in recent weeks, addressing problems at Fannie Mae and Freddie Mac, working with market participants to prepare for the failure of Lehman Brothers, and lending to AIG so it can sell some of its assets in an orderly manner. And this morning we've taken a number of powerful tactical steps to increase confidence in the system, including the establishment of a temporary guaranty program for the U.S. money market mutual fund industry.

Despite these steps, more is needed. We must now take further, decisive action to fundamentally and comprehensively address the root cause of our financial system's stresses.

The underlying weakness in our financial system today is the illiquid mortgage assets that have lost value as the housing correction has proceeded. These illiquid assets are choking off the flow of credit that is so vitally important to our economy. When the financial system works as it should, money and capital flow to and from households and businesses to pay for home loans, school loans and investments that create jobs. As illiquid mortgage assets block the system, the clogging of our financial markets has the potential to have significant effects on our financial system and our economy.

As we all know, lax lending practices earlier this decade led to irresponsible lending and irresponsible borrowing. This simply put too many families into mortgages they could not afford. We are seeing the impact on homeowners and neighborhoods, with 5 million homeowners now delinquent or in foreclosure. What began as a sub-prime lending problem has spread to other, less-risky mortgages, and contributed to excess home inventories that have pushed down home prices for responsible homeowners.

A similar scenario is playing out among the lenders who made those mortgages, the securitizers who bought, repackaged and resold them, and the investors who bought them. These troubled loans are now parked, or frozen, on the balance sheets of banks and other financial institutions, preventing them from financing productive loans. The inability to determine their worth has fostered uncertainty about mortgage assets, and even about the financial condition of the institutions that own them. The normal buying and selling of nearly all types of mortgage assets has become challenged.

These illiquid assets are clogging up our financial system, and undermining the strength of our otherwise sound financial institutions. As a result, Americans' personal savings are threatened, and the ability of consumers and businesses to borrow and finance spending, investment, and job creation has been disrupted.

To restore confidence in our markets and our financial institutions, so they can fuel continued growth and prosperity, we must address the underlying problem.

The federal government must implement a program to remove these illiquid assets that are weighing down our financial institutions and threatening our economy. This troubled asset relief program must be properly designed and sufficiently large to have maximum impact, while including features that protect the taxpayer to the maximum extent possible. The ultimate taxpayer protection will be the stability this troubled asset relief program provides to our financial system, even as it will involve a significant investment of taxpayer dollars. I am convinced that this bold approach will cost American families far less than the alternative – a continuing series of financial institution failures and frozen credit markets unable to fund economic expansion.

I believe many Members of Congress share my conviction. I will spend the weekend working with members of Congress of both parties to examine approaches to alleviate the pressure of these bad loans on our system, so credit can flow once again to American consumers and companies. Our economic health requires that we work together for prompt, bipartisan action.
As we work with the Congress to pass this legislation over the next week, other immediate actions will provide relief.

First, to provide critical additional funding to our mortgage markets, the GSEs Fannie Mae and Freddie Mac will increase their purchases of mortgage-backed securities (MBS). These two enterprises must carry out their mission to support the mortgage market.

Second, to increase the availability of capital for new home loans, Treasury will expand the MBS purchase program we announced earlier this month. This will complement the capital provided by the GSEs and will help facilitate mortgage availability and affordability.

These two steps will provide some initial support to mortgage assets, but they are not enough. Many of the illiquid assets clogging our system today do not meet the regulatory requirements to be eligible for purchase by the GSEs or by the Treasury program.

I look forward to working with Congress to pass necessary legislation to remove these troubled assets from our financial system. When we get through this difficult period, which we will, our next task must be to improve the financial regulatory structure so that these past excesses do not recur. This crisis demonstrates in vivid terms that our financial regulatory structure is sub-optimal, duplicative and outdated. I have put forward my ideas for a modernized financial oversight structure that matches our modern economy, and more closely links the regulatory structure to the reasons why we regulate. That is a critical debate for another day.

Right now, our focus is restoring the strength of our financial system so it can again finance economic growth. The financial security of all Americans – their retirement savings, their home values, their ability to borrow for college, and the opportunities for more and higher-paying jobs – depends on our ability to restore our financial institutions to a sound footing.

20080919 Sec Paulson st on Comprehensive Approach to Mrkt Dev

Federal Reserve Chairman Ben Bernanke, SEC Chairman Chris Cox, U.S. Department of the Treasury Secretary Henry M. Paulson, Jr.

People Bernanke-Ben, Business Econ Wall St SEC, People Cox-Chris, US Dept Treasury, People Paulson-Henry, Bus Econ Subprime Mortgage Market Crisis

Business Econ Wall St SEC Cox qv People, Business Econ Bernanke-B qv People, Business Econ US Dept Treasury qv US, Business Econ Paulson qv People, Subprime Mortgage Mrkt Crisis qv Bus, 2007 2008 Subprime Mort Crisis qv Bus