Banksters worried Republicans may abandon Wall Street

The memo also suggests that Democratic victories in 2012 should not be the ABA’s biggest concern. “”¦ (T)he bigger concern,” the memo says, “should be that Republicans will no longer defend Wall Street companies.”

The Wall Street parasite class has gotten so criminal that even Republicans can no longer defend them. Wall Street is bad for business. They take much and give nothing in return. Break up the investment banks, they jail their executives by the thousands. That would make a good start.

Sen. Kaufman stands against the criminality and banksters

Zero Hedge

Only a few days have passed since its release, and already the Mainstream Media has forgotten all about the Lehman Examiner Report, with barely an occasional mention. As the CJR points out, this unquestionably massive story of corruption and vice, is being covered up by powered interests controlling all the major news outlets, because just like in the Galleon case, the stench goes not only to the top, (in this case the New York Fed and the SEC), but very likely to various corporations that have vested interests in the conglomerates controlling America’s key media organizations. One person, however, who refuses to let it go, is Senator Ted Kaufman (D-DE), whose determined support for an overhaul of market structure we have followed over the past year.

Part of Kaufmans to-be-delivered speech. Emphasis added.

“Mr. President, last week’s revelations about Lehman Brothers reinforce what I’ve been saying for some time. The folly of radical deregulation has given us financial institutions that are too big to fail, too big to manage, and too big to regulate. If we have any hope of returning the rule of law to Wall Street, we need regulatory reform that the addresses this central reality. As I said more than a year ago: ‘At the end of the day, this is a test of whether we have one justice system in this country or two. If we don’t treat a Wall Street firm that defrauded investors of millions of dollars the same way we treat someone who stole 500 dollars from a cash register, then how can we expect our citizens to have faith in the rule of law? For our economy to work for all Americans, investors must have confidence in the honest and open functioning of our financial markets. Our markets can only flourish when Americans again trust that they are fair, transparent, and accountable to the laws.’ The American people deserve no less.”

Full speech

3-15-10 the Rule of Law and Wall Street

Baseline Scenario adds

Senator Kaufman: Fraud Still At The Heart Of Wall Street

Who is Senator Kaufman and what power does he have in this situation? He is not a member of the Senate Banking Committee – and if you think this is a regulatory issue, that reduces the weight of his voice.

But he is a member of the Senate Judiciary Committee and we are discussing here potential crimes – or what should be crimes if the legal system still functioned. He was also a cosponsor of the Fraud Enforcement and Recovery Act (FERA) – which was right on topic – and is an experienced Capitol Hill insider who has studied these issues long and hard. He has also worked closely, over many years, with Vice President Biden.

The tide is turning, but not primarily through the actions of Senator Dodd and his Banking colleagues. Rather the biggest and most unruly players in our financial system have behaved in such an egregious manner that they will be brought down by the law – either that, or they will further bring down the law.

Yes, absolutely, the pendulum is moving our way. But we must keep the pressure on. It’s not hopeless. Things are finally moving our way. Everyone needs to do whatever they can now to insure the rule of law finally returns to the country.

Really. It’s time. Now. The moment won’t come again.

What if The Joker lives in the financial sector too

The Joker

FutureJacked weighs in on the potential for a firestorm started by perhaps deranged members of the financial sector should peasants with pitchforks start marching down Wall Street. Call them the anti-populists.

Mass mood is darkening. Very intelligent men and women who lord over the nexus of finance that allows the division of labor that keeps 300 million Americans alive and kicking to function are being pursued as criminals for behavior many of them regard as totally legal. All it would take is one or two to succumb to anger and divisiveness that negative mass mood encourages to have ourselves a good old-fashioned market shitstorm.

He quotes from Epicurean Dealmaker, a financial insider

But can you imagine what would happen if you pressed them too far? If you tried to turn the entire financial industry into a bunch of unionized, rule-bound clerks? These are personalities who do not go gentle into that good night. All you would need would be for one or two of them to decide they would rather watch the world burn than crawl into a hole.

And believe you me, you do not have enough water to put out that fire…

FutureJacked concludes

Shit people, when we design nuclear reactors we always make sure the system is self-correcting, easy to shut down and does not allow for individual error to lead to catastrophic meltdown or a major reactivity event. You’d think that we would regard our system of finance with at least as much respect.

Rogue traders trying to cover secret losses have destroyed major companies. Imagine what pissed-off traders who really want to screw things up could do.

A populist frenzy might be great fun. Marie Antoinette sure had it coming – but then things really got bloody and that wasn’t quite so much fun, was it. Such a frenzy could also send the entire financial system of the planet spinning into a black hole. Because there are people like The Joker who want to watch the world burn. So do some of the peasants with pitchforks.

Legendary investor Jeremy Grantham lists the multiple villains of the current financial crisis, not all of whom live on Wall Street.

Charlie Gasparino’s new book is out, “How Three Decades of Wall Street Greed and Government Mismanagement Destroyed the Global Financial System.” He thinks LTCM should have been allowed to fail in 1998 and that bailouts need to end.

The greed couldn’t have built up to the point it did without the government subsidizing it, and that’s what they did every time. Because this market blew up three times, right? In the 80’s, in ’94, in ’98, and each time Wall Street got bailed out, and each time they got bailed out they came back and doubled-down on their bets.

If you keep giving heroin to a junkie, he’ll just more addicted.

Why the press didn’t make a big thing about this: because it was impossible to see on a balance sheet, and the people internally that were putting it on the balance sheets, they were just so drunk on their own euphoria on making money.

And the party never ends. Until it does. Then comes The Jokers.

Wall Street corruption and crime round-up

corruption

Something quite extraordinary is happening. The mainstream, regular business people and moderates, are speaking out. They are furious about the corruption on Wall Street and death grip the banks have on DC. The banks won’t win this time.

Quiet Coup. A former chief economist of the International Monetary Fund says the finance industry has effectively captured the US government.

Marching toward Zombieland.

When sober-minded individuals begin to regard an enterprise within a nation as “an enemy of the people” you can bet that some serious blood is going to flow. This is now essentially the situation for the Goldman Sachs company.

More insider trading cases coming after Rajaratnam arrest. There are a lot of scared hedgies on Wall Street now. Can you say “prison” and “asset forfeiture”?

IBM potential CEO arrested in Rajaratnam case. That’s how deep the rot and corruption is. A Senior VP at IBM in line to be CEO has been arrested for selling insider knowledge.

Bloomberg: FDIC failed to limit CRE loans. “Failed to enforce its own guidelines.”

Goldman Sachs’ black magic, Here’s how they did it.

Investment banks borrow money from gov’t at 0%, lend it back to them at 3%. Isn’t that convenient. A license to print money, really. Banks doing this are no better than parasites.

Banks securitized the glop and kept the good stuff

A study found that securitized mortgages were five times as likely to be delinquent as mortgages that were not resold to securitizers. In other words, banks held the good stuff and sold the glop to be securitized. Thus, they knew exactly what they were doing

Kinda makes you think that the banks that planned on keeping their mortgages had different lending standards than those that knew the paper would be off their hands soon.

Savvy investment advice from Dilbert cartoonist

spider sense

From Scott Adams, who does Dilbert

You might have noticed that there are times, such as now, when the stock market is marching straight up and there is a suspicious lack of bad news. Oh, don’t get me wrong – there is plenty of bad news out there if the media wants to focus on it. But for some reason (conspiracy) there is more emphasis on the good. That means something big and bad is in the pipeline to create the next unnecessary panic. The conspirators are tamping down on the smaller bad news stories to get the biggest bang out of the panic they intend to create. That’s what my spider sense is telling me is happening now.

Perhaps the Dow will continue to 10,000, but the next big shock will be in the downward direction. I predict stories about some sort of financial crisis that you never even heard of, before the end of the year. And I predict it will drive the market down 20%.

Disclaimer: Don’t take investment advice from cartoonists, especially if it includes a reference to spider senses.

Scott Adams is making a whole lot more sense than the current Let’s Party cheerleaders for Wall Street.

PS California, Nevada reach record unemployment levels