Building The Perfect Beast

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Archive for the ‘Bailout’ tag

So… Just What Did Those Trillions Do For Us?

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Banks Too Big to Fail Have Grown Even Bigger  | via washingtonpost.com.

Seems like the multi-trillion dollar bailout deal was worse for us than I first suspected.

The worry for consumers is that the bailouts skewed the financial industry in favor of the big and powerful. Fresh data from the FDIC show that big banks have the ability to borrow more cheaply than their peers because creditors assume these large companies are not at risk of failing. That imbalance could eventually squeeze out smaller competitors. Already, consumers are seeing fewer choices and higher prices for financial services, some senior government officials warn.

Those mergers were largely the government’s making. Regulators pushed failing mortgage lenders and Wall Street firms into the arms of even bigger banks and handed out billions of dollars to ensure that the deals would go through. They say they reluctantly arranged the marriages. Their aim was to dull the shock caused by collapses and prevent confidence in the U.S. financial system from crumbling.

Officials waived long-standing regulations to make the deals work. J.P. Morgan Chase,Bank of America and Wells Fargo were each allowed to hold more than 10 percent of the nation’s deposits despite a rule barring such a practice. In several metropolitan regions, these banks were permitted to take market share beyond what the Department of Justice’s antitrust guidelines typically allow, Federal Reserve documents show.

Written by Jeffery Battersby

August 28th, 2009 at 7:28 am

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Sad To Say, True That…

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I’ve already said it, so , need I say more? It’s the same old, same old wrapped in a veneer of change…

Daring Fireball Linked List: Despair Over Obama’s Financial Policy

Written by Jeffery Battersby

March 21st, 2009 at 9:18 pm

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My Town

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I don’t know that it’s quite as bleak here as this article paints it—after all, Kathy and I are going to the new Sushi joint tonight, which, as far as I can tell, is doing pretty well—but this is a story about my little burgh.

Check out the slideshow too. In fact, if you look really closely at the first slide, you might be able to see my house at the base of the mountain.

Then come visit, so we can prove Ms. Rudoren wrong…

A Town Reborn Faces a New Threat | via NYTimes.com

Written by Jeffery Battersby

March 21st, 2009 at 9:57 am

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Speaking Of Spitzer…

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Speaking of Spitzer, he was just on WNYC talking about AIG. It’s the first time he’s done an interview since he got caught in DC with his pants down.

Written by Jeffery Battersby

March 18th, 2009 at 5:10 pm

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Not Sure If That’s The Kind Of Change We Need

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With due respect to John Gruber, whose work I love, and Philip Greenspun, who I’ve never heard of, AIG has already had a major management change. Eliot Spitzer saw to that in 2005. Those in charge of AIG today were put there by NY’s former governor in 2005.

From an article in the March 27, 2006 issue of Business Week:

At least one AIG board member feels guilty about kicking Greenberg out, saying the ouster was made necessary by Spitzer’s threat to indict the company if the boss stayed in place. (Spitzer’s deputy, Michele Hirshman, denies that such a threat was ever made.) “This is an honest man,” says the board member. “Some money was maybe put in the wrong column, but Hank only cared about AIG.” Attorney Boies, meanwhile, bristles at AIG’s derogatory references to “former” management in its statements. “The former management is current management,” he argues. “All of these people were totally on board with actions they’re now against.”

At another point in the article Hank Greenberg stated that AIG’s Spitzer-placed CEO was providing, “no leadership” and that the firm was being, “run by outside lawyers.” Now it’s been run into the ground.

Would have been nice if those outside lawyers had corrected whatever problems Spitzer was seeing four years ago. Seems to me that they stuck with the status-quo and only changed the pocket the money was going in.

Complete Business Week article here.

Written by Jeffery Battersby

March 18th, 2009 at 5:01 pm

Chilling

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I love a good fight as much as the next guy, and I never thought ANY of these banks should have gotten a dime from the government, but, beyond the simple fact that Chuck Schumer is a complete idiot, the fact that he would even make a statement like this should be chilling enough to bring on a new ice age.

Scary as hell if you ask me.

“They should voluntarily return them. If they don’t, we plan to tax virtually all of it,’ New York Sen. Chuck Schumer declared on the Senate floor.
To those of you getting these bonuses: be forewarned, you will not be getting to keep them.

That may be as chilling a statement as I’ve ever personally heard out of the mouth of a politician. But read on and you’ll begin to see what a mire of stupidity we’re in, and on all sides of the political spectrum.

AIG bonus checks may be taxed at up to 100%, says Sen. Chuck Schumer | via NY Daily News

Victory has a thousand fathers, indeed.

Written by Jeffery Battersby

March 18th, 2009 at 11:23 am

Uh, somehow I don’t think this industry is suffering too much…

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I believe that this is more political satire than actual bailout request.

Larry Flynt & Joe Francis request bailout for porn industry | via CNN.

Then again, why not? Every no-account industry on the planet is already asking for the same.

Written by Jeffery Battersby

January 7th, 2009 at 3:37 pm

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