How “Bail-outs” and Bail-ins” Are Just a Huge Transfer of Wealth

In our continuing effort to educate even those who call themselves “experts” on the economy, we have to continue with the facts that the banksters, MSM, and dupes that call themselves legislators don’t want you to see or understand.  We have, in recent past articles, shown you just the facts about the bailouts and now the bail-ins going on in the EU for what they are, just a huge transfer of public wealth to the hands a few elites in banking and the central banking system.

As we watch the economy continue to falter, and jobs vanish, don’t you wonder where all the so-called QE monies really went that were meant to stimulate the economy? Here we are, 5 years into this so-called recovery and unemployment in the US is still 7.6% and only 47% of Americans hold full time jobs.  The number one employer is WalMart and the number two employer is Kelly Temp Services! In the EU, there is a 40% unemployment rate and people’s bank accounts are being raided without consent to supposedly prop up the banks (Bail-Ins). Government services are being slashed everywhere and still nothing seems to be improving.

Well, even though you are not supposed to understand this, let’s look at the Central Bank Practices and especially at the issue of banks’ reserves at the FED and other central banks in the world. This is a complex subject with much technical jargon that confuses a lot of people. Besides, don’t be surprised that your bank branch manager on Main Street as well as lecturers in finance and economics are also ignorant on this issue. In the case of the latter, this subject is hardly taught in universities. And this is the reason why the scam has not been exposed or understood. But, for those who have a basic idea of bank reserves and how this huge amount of “excess reserves” have been created by the FED, have you asked yourself, “Why have I not spotted this scam earlier?”

Many have been taken in by the propaganda that “excess reserves” is the means to encourage banks to extend credit (give out loans) to desperate borrowers who needed urgent funds to survive and to jump-start their businesses. This propaganda is grounded on the assumption that there is insufficient liquidity in the market. This assumption is misleading.

What are Excess Reserves? The latest figures obtained from the H.3 release from the Board of Governors of the Federal Reserve System (the FED) shows excess reserves of about $1.794 trillion (data as of April 17, 2013)! This level of excess reserves is unprecedented and is the highest since reserves were legislated as a requirement.

Excess reserves are the surplus of reserves against deposits and certain other liabilities that depository institutions (collectively referred to as “banks”) hold above the statutory amounts that the FED requires in accordance with the law. The general requirement is that banks maintain reserves at least equal to ten percent of liabilities payable on demand. There is now data to show that as much as 50% of these “excess reserves” are held for United States banking offices of foreign banks.

 

Let me elaborate. Banks receives deposits from their customers which are inter-alia placed in current accounts (checking accounts) or time deposits (fixed deposit accounts) and which the customer can at any time withdraw from the bank. But, banking practice shows that at any one time, only a small fraction of customers would withdraw their deposits in full. So, there was no need for banks to keep all the deposits in their vaults to meet such a demand for payment. Laws were enacted to allow banks to keep in reserve a small amount of monies to meet such demands. That being the case – if only 10% reserves is all that is required according to banking regulations to meet repayment demands, why should there be such a huge amount of reserves, beyond the legal requirement of 10%?

Understand the fact that when a customer deposits monies in a bank, he is in law a “creditor” (he has loaned the monies to the bank) and the bank is a “debtor” (and he can use the money in any way at his absolute discretion, even to speculate). This is because the ownership of the money has been transferred to the bank. The money is no longer the money of the customer. It now belongs to the bank. And as long as the bank is solvent, and there is a demand for repayment of the deposit, the law of contract stipulates that the bank must repay together with the agreed interest that has accrued.

silver-coins-bars

Now here is where, legally it gets interesting.. if at the time when demand for repayment is made, the bank is bankrupt (i.e. in a liquidation) then the depositor/customer in law is deemed an “unsecured creditor” and must join the queue of all unsecured creditors to share the proceeds of any remaining assets after all secured creditors have been paid. If there are no remaining assets, the depositors get zilch! That is why and as illustrated in the bank confiscation of deposits in Cyprus banks acting in concert with central banks can expropriate all customers’ deposits to pay their secured creditors. You catching on here?

How did the Excess Reserves balloon to a massive US$1.794 Trillion? The Fed’s overall balance sheet has expanded from about $909 billion before the crisis (i.e. before 2008) to about $3.3 trillion in 2013. Of the $2.4 trillion increase, approximately $1.8 trillion is excess reserves. Banks were up to their eyeballs in toxic assets (financial sewage) and they are drowning in this cesspool but for the rescue efforts of the FED and other central banks they would have sunk to the bottom of the cesspool.

The FED created trillions of money out of thin air by a digital entry in its books to purchase the toxic assets (financial sewage) in batches from the banks. The objective of QEs is to save the banks and to save the US Treasury from bankruptcy and not Joe Six-Pack. However, in this article we are focusing on the banks. So, let’s say that the banks HAVE OVER US$10 trillion of financial sewage AND WANT TO DISPOSE THEM WITHOUT AROUSING ANY ALARM.  The monies flowed from the FED to the banks to purchase the financial sewage. The financial sewage is sucked into the FED’s financial vacuum. However the monies are not channeled to the banks’ branches in Main Street to be loaned out to Joe Six-Pack. It is re-routed back to the FED as “reserves”. When the reserves exceed the minimum 10% requirement, the excess is classified as “excess reserves.” This is merely a book entry! And adding insult and injury to Joe Six-Pack, interest of 0.25% is paid on the reserves (i.e. giving profits to the banks).

The banks are allowed to survive in spite of their massive frauds and other financial hanky-pankey. The banks are allowed to use digital technology (e.g. high-frequency trading) to corner the market and destroy Joe-Six-Pack. But, Joe-Six-Pack has to suffer the indignity of unemployment, foreclosures, reduced unemployment benefits, surviving on food-stamps, and other austerity measures. Starting to see the picture here and how this crap is how we are being fleeced like passive little lambs?

“The money flows from the FED to the Too Big To Fail (TBTF) Banksters to Buy Toxic Assets, which is sucked in by the FED’s Financial Vacuum, thereby cleansing the TBTF banks’ balance sheets. The money is then re-routed back to the FED as “excess reserves”.

The FED create monies out of thin air to bail-out the Too Big To Fail banks (TBTF banks) by purchasing their financial sewage (valued at book value as opposed to mark-to-market i.e. instead of paying only 10 cents on the dollar or less, the FED pays dollar for dollar) thereby removing the financial sewage from the balance sheet of the TBTF banks to reflect a “healthier” balance sheet as there are now less financial sewage in the banking system. And, because the TBTF banks are suffering losses, the FED pays 0.25% interest on the “excess reserves” created so as to generate easy profits for the TBTF banks for doing nothing at all. They are earning profits merely from a book-entry in the FED’s books!

The propaganda which I referred to earlier that such monies were meant to enable the TBTF banks to extend credit is therefore bullshit and a load of financial nonsense. So why are the so-called reputable economists at leading universities such as Harvard, Princeton, Cambridge, Oxford etc. touting this propaganda?  In spite of all this past mismanagement, the practices by the TBTF banks is continuing unabated, including the so-called record profits declared by the TBTF banks and the huge bonuses given out to the bankers and their hire-lings. These practices are all just window dressing as long as the toxic assets are not marked-to-market and not declared as junk. If such assets are properly declared, the fiat money banking system would be staring at a bottomless black-hole of toxic assets and indebtedness! What’s worse is these same TBTF banks are still up to their eyeballs in toxic debt, such as derivatives, credit swaps, etc.  In fact JP Morgan Chase alone has exposure more than twice the US GDP! JPMC is exposed just in interest rate derivatives at $45 TRILLION. Take a look at the Fed’s H.8 report to understand how bad it really is.

This has compounded the problem. After the Global Financial Tsunami, all the TBTF banks don’t have enough reserves to meet the withdrawal of deposits placed by customers before the crash. The TBTF banks don’t even have the requisite 10% reserves to meet these demand deposits (Old Deposits).  However, banks are continuing to receive deposits from customers of which 10% of these deposits must be transferred to the FED as reserves. Data shows that customers’ deposits are at an all time high (since 2007), but bank lending is not keeping pace.

Banks are not lending out what they are entitled to do so for two reasons:

1) The banks are using a portion of the “New Deposits” to meet the liability of having to repay the “Old Deposits” in the system. This is because even the excess reserves (created under the QE) are insufficient to meet the demand for repayment of the Old Deposits. So, part of the current New Deposits would be utilized for that purpose. This is the Deposit Ponzi Scheme.

2) Banks are earning no risk profits from interests on “Excess Reserves” at the FED and are only willing to lend to credible borrowers. In the present economic climate, there are just too few credible customers. This is another reason why banks are not lending.

When QE stops, the FED would not be out on a limb because the monies used to purchase the financial sewage from the TBTF banks are still in the FED’s books. The Fed need only to have a reverse entry in it’s books after re-packaging the financial sewage INTO SOME NEW FORM OF FINANCIAL PRODUCT OR WHATEVER (which the TBTF banks are adept at doing before the crash and are still continuing to do so) and dumping them back to the banks and another generation of stupid investors at such time when and if the banks would have recovered. But with the TBTF banks continuing their same toxic practices unabated there is no recovery, ever. Further, with the bank’s unbridled right (sanctioned by law) to confiscate the customers’ deposits (now commonly referred as “Bail-In”) using the Cyprus template, banks have additional financial resources to continue with the plunder and financial rape of the public.

I hope this helps us understand that this unabated transfer of wealth ends with our economic enslavement. The public must be able to understand these fundamentals and demand the end to this fractional banking system and the end of the FED. Your congressmen and women are dupes in this game, as they really don’t understand and therefore do what they are told to do. Inform them WE GET IT and WE DON”T LIKE IT, AND IT MUST STOP NOW! Fire the Fed, break up the TBTF banks and return to pre-1913 banking system controlled by the US Treasury. WAKE UP!  A special thanks to Matthias Chang of Global Research, who unknowingly contributed so much to this article.

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Updates from the Economic Warfront

Three years ago, as I began my ranting against the bankster elitists, I had stated their plan for economical slavery was unfolding in the most transparent way.  I stated at the time the mortgage loan debacle was only the first step.  I said at that time that based on the strategic use of credit swaps and derivatives, the next target was going to be both corporate and public pension plans. Indeed this began unfolding around 2009 and continues to this day.

At the time I also stated that after that goal was completed, the next target in their gun sites would be state and sovereign wealth. Again, this is exactly what is happening. First was Iceland, then the weaker members of the EU, and now is extending into the stronger economic nations such as the UK, France, Germany, the US, Australia and Canada.

Of all of these nations, only Iceland and the will of their people have prevailed.  Ireland is also showing some signs of effective resistance. The rest of the governments, under the rhetoric of “necessary austerity’ are slowly killing their economies and in the case of Greece and Spain, are already “clinically dead”. You see there is only one simple question that when answered reveals all.  When we talk about sovereign debt, one has to ask, “Who is this vast amount of money owed to and how did they acquire this debt obligation?”

We all know the answer to this question.  The bankster’s greed has continued unabated and now there isn’t even any attempt by the banksters to “paint lipstick on the pig”. They seemed until very recently unafraid of rebellion by the masses, criminal actions by governments, or any competitive actions against their plans.  Why were they so confident?  Their confidence stemmed from the reality that they have prepared well in advance to insure they “owned” the political and legal arms of the governments world-wide thus preventing any criminal penalties for their brazen fraud and theft.  Large fines were acceptable and a part of “doing the business”. The control of the political process insured they could endlessly print fiat money to “finance” their ongoing rape of the world’s economy.

They had also correctly anticipated that the masses would eventually try to rise up, so they upgraded both sovereign and state and local police forces to paramilitary capabilities.  They would simply overwhelm any efforts before these “uprisings” could gain momentum.  We have to admit they had anticipated each and every step very correctly and have been effective to date in squashing any meaningful resistance.  Until now…..

In their hubris, they may have made gross miscalculations in their unbridled greed quest. First, let me state that we try to remain apolitical in the information we present in this blog. However if the next story is true, then it is a matter of justice and patriotism to report, not a political leaning, one way or the other.

The election in the US is a very good example of how elitists have horribly underestimated the collective intelligence and will of the people. Remember the Karl Rove and Limbaugh ranting pre-election that it would be a landslide for Romney?  They were certain of this because first they were effectively suppressing the vote and just in case that wasn’t enough, they were sure they had effectively “rigged” the election in key states like Ohio, Virginia, and Florida.

However, something went very wrong.  Romney was quoted as being “shell-shocked” and Karl Rove displayed his denial breakdown on national TV when Ohio was declared for Obama.  What happened? From our sources, the real story may be revealed in the coming months, if the information given to the FBI sees the light of day.

Apparently, like in 2004 and 2008, Rove and his operatives had developed a sophisticated computer program called ORCA to manipulate the data in the vote tally process and had this program embedded in various areas.  Apparently this sophisticated program would intercept election data from various reporting stations, manipulate the results and then send it forward to its intended destination.

This scheme was however uncovered by cyber sleuths under the Anonymous banner and this group had even warned Rove, et al, directly that this plot would not be allowed.  See the warning here.

From our sources, we learned that these cyber sleuths hacked the ORCA program and placed a firewall called “The Great Oz”.  According to the sources, this not only prevented ORCA from doing its job, it also prevented any of the Rove operatives access to the program during the election process. Apparently Rove’s computer techs tried 105 times to penetrate “The Great Oz” using different means and passwords, to no avail.  Comcast finally shut down all operations under the guise of a DDOS attack threat.  Immediately after taking this action, these cyber sleuths, who called themselves “The Protectors”, turned all of the information over to the FBI.  Based on this information, if it is true, here is Good Ole Karl’s recurring nightmare:

( this photo is not real)

The same kinds of cyber activity are going on as we speak in relation to the Israeli’s attack on Gaza. Apparently over 9,000 Israeli websites belonging to government and banking systems have been attacked in the last week.  In both cases here, what was underestimated by the cabalists is the intelligence and resources of the “ignorant” masses.

As the pan EU uprisings increase, we are seeing more and more police and firemen joining the ranks of the protesters.  In Spain over the weekend, about 5,000 police officers marched through the center of Madrid on Saturday to protest salary cuts and the thinning of their ranks as Spain grapples with its sovereign debt crisis.

The officers, who had traveled from across Spain, rallied three days after the nation was gripped by a general strike over the austerity cuts. Health and education workers have already taken part in similar marches.

“Citizens! Forgive us for not arresting those truly responsible for this crisis: bankers and politicians,” read one banner held aloft by a line of officers as they marched to the interior ministry.

The rally had been called by the main policing union SUP. “Each year, between 1,500 and 2,000 police officers retire and 125 are recruited, which means in three or four years, there will be more insecurity and crime in Spain,” warned SUP general secretary Jose Maria Sanchez Fornet in a speech outside the ministry.

It would seem that real progress is beginning to correct this global economic imbalance and more and more people are beginning to believe they are not powerless to affect the changes that would begin to create global economic systems democratically based and underpinned by ethical standards more appropriate to the realities of the 21st century.

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Why You Need To Try To Understand How Markets Work

On September 29, in the District Court of the District of Columbia, Judge Robert Wilkins threw out U.S. Commodity Futures Trading Commission’s(CFTC) new position-limits rule, sent the regulation back to the agency for future consideration. Wilkins ruled by law, the CFTC, which was required to prove that the position limits in commodity markets are necessary to diminish or prevent excessive speculation—. So why does that matter? It may sound a little technical if you haven’t been following this story, but this decision WILL affect the cost of your food, the cost of your fuel, and many other basic necessities of life.

Position limits are the tool in place to limit Wall Street speculators from gumming up commodity markets. If they are not limited in their speculative bets that they place, they have a tendency to unmoor commodity prices from supply-demand fundamentals.

So, for example, if you look at crude oil, the price of crude oil is way above what it should be if supply-demand just played a role. In fact, you know, most of the big oil companies say crude should be at about $70, $75. It’s now—it was up to $100 this week, went down to $91. The simple point is, look at gasoline, which is the main derivative of oil. You’re paying a premium that has nothing to do with production and has everything to do with lining the pockets of Wall Street.

So position limits say no individual player or finance institution can have more than x percent of any specific commodity market. And that used to be the case, right? Well, it still is the case, ironically enough. But Congress, in passing Dodd–Frank, wanted the position limits to affect a much broader market, which Wall Street uses to speculate on food and energy prices. So the more limited rule is still in effect that emanates from pre-Dodd–Frank. But Congress—well, the question was: did they order the CFTC to put these position limits in effect, or tell the CFTC, only do it if you think it’s necessary and appropriate? And that was the essential issue.

And the argument that the CFTC and many market reformers made, is that Congress couldn’t be clearer that they were very worried about the role speculation was playing in inflating food and energy prices—they demanded the CFTC to do something about it, and they said the vehicle you should use are position limits as appropriate.

However, in this ruling the district court judge said the word “as appropriate” also applies to whether or not you do the project to begin with. So he sent it back to the agency and said, now you’ve got to tell me by a majority vote—it’s a five-person commission; the original rule came out on a three-two vote—now a majority of the commission have to tell me that you’re doing this in a way that’s appropriate. So he’s added a burden on the CFTC and many members of Congress, by the way, to validate a view that was never intended. Can you now see how these banksters and criminals are “rigging” the game, because if the legislation says, do it, you don’t have to study whether you need to do it, and they had a three-to-two vote in the commission, which already agreed with that interpretation. You also need to understand that at one point the CFTC came up to 105 studies that showed unless you limited Wall Street speculation, we were going to have inflationary commodity prices that had nothing to do with supply-demand fundamentals. Duh!

We have gasoline prices as high as $5 a gallon in some regions of the country and food prices are beginning to soar out of sight. However, this does not only deals with what United States citizens pay for their gasoline, their heating oil, their energy products, and their food products, but in the Third World, many Third World countries believe speculation is leading to starvation because it’s so inflating the price of food beyond that which market fundamentals would dictate.

So what this judge has done is essentially set this thing aside. For at least a half-year, maybe a year, we will not have the kind of regulation that Congress demanded. And of course you’ve got the problem that the Republicans are fighting this agency by limiting its appropriations through the House of Representatives so it doesn’t have enough personnel to continue the legal battles  and doesn’t have enough enforcement personnel to police these speculators.

We must not just, as citizens, defer understanding these things because “they are just too complicated to understand” or have the attitude that it only “effects banker and investors” because that is exactly what these banksters and speculators are counting on.  Shock your congressional candidates with your knowledge and demand that they support dictating BY LAW that position limits are to be imposed.  There are already 49 million Americans on food stamps and 1 in 6 Americans go to bed hungry every day now! So what, we are going to wait until half of us are starving and cold?

Why There is A Strangle Hold on the Global Economy?

As we move into the fifth year of this most recent global economic crisis, much has been written about the criminality of the banking community, sovereign debt, and the impacts of austerity measures, but that is just part of the story.  To really understand the “whole of it” you also have to look at food prices, the escalating health care system delivery costs, and finally and most disturbing the cost of higher education.  All of these sectors have been usurped by a “corporate’ for profit mindset and are totally out of control.

Since the collapse of 2008, speculators have moved into the commodities sector and food prices have escalated out of control, essentially because there is NO control. The prices of all key staples increased, except for rice.Maize prices increased by 9%, soybean oil by 7%, wheat (U.S. HRW) by 6%, and sugar (world) by 5% just this last year. These price variations were the largest increases observed since June and July of 2011. The price of rice (Thai, 5%) declined in the same period by 6%, adding to the price decline of 2% observed in the fourth quarter of 2011. Both abundant supply and strong competition among exporters have caused the international price of rice to decline.  Although food production outlooks remain strong for 2012/13, there is a global food crisis. Why? Profiteers plain and simple.

Twenty years ago U.S. healthcare cost $2800, on average, per person. Ten years ago, that figure had risen to $4700 per person. And four years ago, in 2008, it was $7500 per person. The cost to cover the typical family of four under an employer plan is expected to top $20,000 on health care this year, up more than 7% from last year. These health care cost increases have increased the number of people dying because of a lack of access to health care and has resulted in a substantial increase in personal bankruptcies, especially among retired people. Not only is there no controls over these costs, the government has essentially prohibited competition by restricting large governmental providers from even negotiating more competitive costs.

But nowhere is the lack of control more apparent that in the cost of higher education. This month information was released regarding consumer credit growth.  Most of the headlines took this as positive economic news but digging deeper into the data we realize that the bulk of the growth came courtesy of exploding student debt.  Even with the encyclopedia amount of data showing how horribly run many for-profit colleges are run, the government continues to back these risky endeavors while saddling young Americans with unrelenting levels of debt.  It doesn’t take a rocket scientist to see the predatory nature of these operations just like it was easy to see subprime loans were going to end badly.  So why continue to allow this to go on?  Why is the system so adamant on continuing to pour layer upon layer of student debt syrup onto the younger segment of our nation that is already struggling in the employment market?

A recent University of Georgia study is sobering in its findings.  When comparing the UG tuition escalations to other higher institutions here are their findings:

Undergraduate

Residents

The average 10-year increase in tuition and fees for residents was 111%. The University of Georgia’s increase was 156%, 3rd highest out of 13 institutions.

The largest increase occurred at University of Arizona (231%), University of California-Davis (185%), and University of Georgia (156%).

The lowest increases were at University of Maryland (58%), Louisiana State University (65%), and University of Missouri (85%).

Over the past 5 years the University of Georgia has had the highest increase (89%), followed by University of Arizona (83%), and University of California-Davis (75%).

Over the past 5 years University of Maryland has had the lowest increase (8%), followed by Ohio State University (17%), and University of Missouri (22%).

Non-Residents

The average 10-year increase in tuition and fees for non-residents was 94%. The University of Georgia’s increase was 138%, 2nd highest out of 13 institutions.

The largest increases occurred at University of Florida (163%), University of Georgia (138%), and University of Arizona (138%).

The lowest increases were at North Carolina State University (43%), University of Missouri (58%), and University of Kentucky and Iowa State University with an increase of 72% each.

Over the past 5 years University of Arizona has had the highest increase (80%), followed by University of Georgia (60%) and University of Florida (59%).

Over the past 5 years North Carolina State University has had the lowest increase (15%), followed by Iowa State University (18%) and Ohio State University (22%).

How much debt have we loaded onto the backs of our youth and young developing professionals who are the essential elements to stimulating our economy?  It’s this big:

How out of whack is this really? Consider this fact, the total combined GDP growth in the US from 2008 until 2011 was a mere 2.7% TOTAL!

When you wonder why the global economy is imploding, that there is 25% percent unemployment of the educated technically capable young productive people, and why there are riots bursting forth in every developed country on the planet, remember these facts.  A global oligarchy has usurped and trumped government and now believes they can complete a global economic enslavement plan. If you don’t see this you are blind and in denial. If we do not unite soon, this is a fait accompli and you will have to explain to your grandchildren why we didn’t do anything to prevent their bondage.  You up for that?

Things May Not Be What They Seem To Be

Millions of Americans have wondered why the banksters have not been criminally charged for their obvious illegal activities that have destroyed the global economy, devastated the lives of hundreds of millions of people globally, and brought countries to their knees economically.  We are cynical that any justice will prevail and the economic ship will be righted.  We feel our governmental representatives have been bought and all are entirely controlled by the financial cabal.  Certainly when you see big banks admitting to money-laundering, bid rigging, fraud, and market rigging, but still no one individual is being charged with criminal activity, it is easy to feel absolutely helpless.

In the past two years alone, these criminals have paid more than $8 Billion dollars in fines globally and stipulated their guilt, but it seems no one is going to jail.  This is even more disheartening when we learn that those who should be enforcing the law are rolling over like lap dogs such as this news from the Wall Street Journal on 10 August:

Source: Wall Street Journal

“After a yearlong investigation, the Justice Department said Thursday that it won’t bring charges against Goldman Sachs Group Inc. or any of its employees for financial fraud related to the mortgage crisis.

In a statement, the Justice Department said “the burden of proof” couldn’t be met to prosecute Goldman criminally based on claims made in an extensive report prepared by a U.S. Senate panel that investigated the financial crisis.

“Based on the law and evidence as they exist at this time, there is not a viable basis to bring a criminal prosecution with respect to Goldman Sachs or its employees in regard to the allegations set forth in the report,” the statement read. The Justice Department reserved the right to bring charges in the future if new evidence emerges. In a statement Thursday, Goldman said: “We are pleased that this matter is behind us.”

It does seem to be an insult to our intelligence and common sense.  However, we must remember who controls the media, as well as the political system.  We also must be patient.  There are arrests happening globally and they are significant.  From these arrests, much information will surface that will compel even those who are so compromised to act or be grossly negligent and criminally involved themselves.  Am I right Eric?

There are many brave and conscientious men and women risking their lives quite literally on a global basis to do the right thing.  Here are just a few examples:

7/2/12: Gary Foster: Former VP of Citigroup Sentenced to 97 Month in Prison for Embezzlement – (Source: FBI) — Gary Foster, a former vice president in Citigroup, Inc.’s treasury finance department, was sentenced to 97 months’ imprisonment today on a conviction for bank fraud arising from his embezzlement of more than $22 million from Citigroup. Foster embezzled by first transferring money to Citigroup’s cash account and then wiring it to his personal bank account at another bank. Foster used the money to buy real estate and luxury automobiles, including a Ferrari and a Maserati. In total, the value of the seized and restrained property is estimated to be approximately $14 million.

7/6/2012: Ex-Bankas Snoras Owners Arrested Again in U.K. Over Fraud Claims – Bankas Snoras AB’s former owners were arrested again in London today on expanded claims they siphoned at least 1.7 billion litas ($609.5 million) from the failed Lithuanian lender to finance luxurious lifestyles. Russian banker Vladimir Antonov and his business partner Raimondas Baranauskas, who were detained in November and are fighting extradition to Lithuania, were arrested a second time after authorities probing the bank’s collapse in the Baltic country issued another European arrest warrant containing new allegations, John Hardy, a lawyer for the prosecution, said at a scheduled hearing today in London’s Westminster Magistrates Court.

7/10/12: Dozens arrested in loan fraud scheme with victims in U.S, Canada – (Reuters) – Dozens of people were charged in what federal authorities on Tuesday called a highly sophisticated loan fraud scheme that robbed $2.7 million from at least 2,000 victims with poor credit histories in Canada and the United States. Would-be borrowers were lured to websites of 67 fictitious businesses with names similar to well-known lenders such as “Countrywide Funding,” which sounds similar to the legitimate Countrywide Financial Corp., and “Admiral Financial Services,” which mirrors Admiral Financial Corp., authorities said. They were approved for loans in exchange for security deposits ranging from a few hundred dollars to several thousand dollars – to be sent in advance of the flow of borrowed cash that never arrived.

7/12/12: DOJ: Former Bank of the Commonwealth Executives Arrested for Alleged Fraud – Former executives and favored borrowers at the failed Bank of the Commonweath have been arrested and charged with masking nonperforming assets for their own benefit, in a scheme that contributed to the Virginia bank’s 2011 collapse, the Justice Department said.

7/18/12: Ex-UBS France Employee Charged in Tax Inquiry After Raids – A judge leading a tax-fraud investigation concerning UBS AG’s French unit has charged a second person with aiding in illicit marketing and money laundering. UBS avoided prosecution in the U.S. in 2009 by paying $780 million, admitting it helped thousands of Americans evade taxes and turning over the names of 250 American clients to authorities. UBS later revealed another 4,450 accounts held by clients in the country.

7/19/12: Eleven Charged, Arrests Made In $15 Million Mortgage Fraud Scheme – CAMDEN, N.J. – Eleven individuals from five states are charged in New Jersey for their alleged roles in a $15 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos, including a defendant who attempted to murder a witness to the scheme, New Jersey U.S. Attorney Paul J. Fishman announced.

7/20/12: SJ Bank Manager, Husband Bilk Victim of $1.1 M– A JP Morgan Chase bank manager and her husband were convicted Thursday of scamming a 97-year-old man out of $1.1 million in life savings, according to the Santa Clara County District Attorney. Prosecutors said that bank manager Christina Bray, 30, befriended the elderly banking client and pretended to manage his financial affairs. Instead, prosecutors said, Bray and her husband, Jimmy Bray, 39, of San Jose, spent the victim’s money on  luxury cars and liposuction. The couple pleaded guilty to several counts of felony elder theft.

7/23/12: Irish banker McAteer arrested by Anglo probe fraud squad officers – Willie McAteer is set to become the first banker prosecuted over the collapse of the toxic Anglo Irish Bank in 2008-2009. McAteer, an executive in the former rogue lender, is due in court in Ireland on fraud charges. Anglo’s former finance director was arrested this morning by fraud squad officers investigating financial irregularities at the bust bank.

7/24/12: Anglo Irish Bank’s ex-CEO arrested for fraud – DUBLIN – Fraud detectives arrested the former chief executive of Anglo Irish Bank and charged him Tuesday over a conspiracy to hide colossal losses at the bank that brought the nation to the brink of bankruptcy. Forensic accountants found that Anglo provided secret loans to 16 insiders on condition they used the €1.1 billion ($1.35 billion) to buy Anglo stock.

7/26/12: FL Title Agency Owner Sentenced for Mortgage Fraud Scheme – (Source: FBI) JACKSONVILLE, FL—U.S. Attorney Robert E. O’Neill announces that U.S. District Judge Henry Lee Adams, Jr. today sentenced Cynthia Darlene Strickland (46, Jacksonville) to 18 months in federal prison for bank fraud related to a mortgage fraud scheme. As part of the sentence, the court ordered Strickland to pay restitution to victims in the amount of $531,356. The court also entered a judgment against Strickland for $178,625, which was the amount of money she received as a result of the scheme. Strickland pled guilty.

7/27/12:TD bank denies wrongdoing after court convicts U.S. fraudster in $7B Ponzi scheme– Robert Allen Stanford was the stereotype of a Texas tycoon, oozing the extravagance billions of dollars buys: a fleet of private jets, yachts and helicopters; mansions, castles and a private island; mixing with celebrities and world despots; being knighted and hosting a world sports tournament where he put up the US$20-million purse. At the height of his outsized life, however, his banking empire collapsed and, last month, a U.S. court exposed his US$7-billion fraud, sentencing the 63-year-old to 110 years in prison. Now, attention is turning to the role a respected Canadian bank may have played in allowing Stanford to strip 21,000 investors of their savings.

7/28/12: UK – Six Sentenced for Insider Trading – UBS and JPMorgan print rooms. One of six individuals sentenced on Friday to a total of 16 years in prison for taking part in an insider trading ring has said the JP Morgan Cazenove print room manager allegedly at the heart of the conspiracy avoided prosecutors by fleeing to Northern Cyprus. Ersin Mustafa, a contractor for Xerox running the secure print room in JP Morgan, was accused of playing a pivotal role in sourcing confidential documents from the bank and from UBS where his brother Ali Mustafa worked – his role also involving the confidential printing of market-sensitive documents, many of them linked to corporate takeover plans.

7/30/12: Iran sentences 4 to death in $2.6B fraud case – TEHRAN, Iran — An Iranian court has sentenced four people to death and given two more life sentences on charges linked to a $2.6 billion bank fraud described as the biggest financial scam in the country’s history, an official said Monday. The trial, which began in February, involved some of the country’s largest financial institutions and raised uncomfortable questions about corruption at senior levels in Iran’s tightly controlled economy.

8/1/12: Former UBS bankers cheated cities by rigging bond bids: U.S. – Three former UBS executives helped deceive U.S. cities and towns by operating a scheme to rig bids to invest municipal bond proceeds, a federal prosecutor said on Monday at the start of the bankers’ criminal trial in New York. Peter Ghavami, Gary Heinz and Michael Welty were charged in 2010 by the U.S. Department of Justice as part of its broad investigation of the $3.7 trillion U.S. municipal bond market. The probe has focused on rooting out schemes to fix prices and rig bids on bond transactions, and has ensnared some of the world’s largest banks. The three men “steered financial contracts to their friends in exchange for kickbacks and other favors.

8/2/12: AmeriFirst Securities Fraud Case Lands Sentence for Seven Defendants – (Source: FBI) DALLAS—The final sentencing was held today in the massive AmeriFirst securities fraud case, prosecuted in the Northern District of Texas, that has resulted in a total of seven felony convictions and prison sentences up to 25 years, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Today, John Porter Priest was sentenced by U.S. District Judge Barbara M. G. Lynn to one year in federal prison. Priest, 43, of Ocala, Florida, was sentenced by Judge Lynn to one year in federal prison and ordered to pay $4,742,946 in restitution. He pleaded guilty in September 2010 to one count of securities fraud based on his role in the Secured Capital Trust scheme.

These are just a few of the most outstanding actions.  So, while the controlled MSM media is not now currently reporting these activities, they are going on.  From our close sources, this is but the tip of the iceberg, as a lot of these who were arrested are singing loudly and turning over evidence that will start to bring pressure to those on top of the pyramids.

What we should be doing is demanding from our MSM the reasons why they are not reporting these facts and more importantly why there is a lack of good old fashion investigative journalism.  Where is 60 Minutes when you need them?  We should also put pressure on the White House and DOJ to step up their investigations and begin to take actions that they could take, elections be damned.  The more we push and the louder we speak, the more action will have to be taken.  If you were a victim of the mortgage scams, or you lost half your retirement to these banksters, speak up, take the time to write an email or letter demanding more action.  It really is up to us to be informed and outraged.  This isn’t a red or blue issue, it is a green issue and if we don’t take these actions, we will soon be owned slaves.  Our power is also at the ballot box with an informed vote.  Let’s not continue to send lapdogs back to DC.  Let’s not buy into the rhetoric from both sides and let’s demand action.

Banks may be “Too Big To Fail”, But are Banksters Too Big To Jail?

As the Libor rigging scandal unfolds in the UK, it now looks like at least 20 banks world-wide have been  involved.  Iceland and now the UK are seeing and telling like it is, that this is a criminal conspiracy and those involved should be dealt with accordingly.  Let’s take a look at just ONE of the “bad boys” and review what has happened to them in the last few years. JP Morgan Chase’s “rap sheet” reads likes this:

$228 million fine of JP Morgan Chase for a bid-rigging scheme involving municipal bonds. The Chase ruling is the latest to come down in a series of fines involving a number of banks, including Bank of America and UBS. Read more: http://www.rollingstone.com/politics/blogs/taibblog/jp-morgan-chase-fine-another-slap-on-the-wrist-for-wall-street-20110708#ixzz1ztZyqSZ0

Let’s take a look at the specific details of just one of the sanctions.  This information is directly off of the Department of Treasury site. JPMorgan Chase Bank N.A. Settles Apparent Violations of Multiple Sanctions Programs: 

JPMorgan Chase Bank, N.A, New York, NY (“JPMC”) has agreed to remit $88,300,000 to settle potential civil liability for apparent violations of: the Cuban Assets Control Regulations (“CACR”), 31 C.F.R. part 515; the Weapons of Mass Destruction Proliferators Sanctions Regulations (“WMDPSR”), 31 C.F.R. part 544; Executive Order 13382, “Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters;” the Global Terrorism Sanctions Regulations (“GTSR”), 31 C.F.R. part 594; the Iranian Transactions Regulations (“ITR”), 31 C.F.R. part 560; the Sudanese Sanctions Regulations (“SSR”), 31 C.F.R. part 538; the Former Liberian Regime of Charles Taylor Sanctions Regulations (“FLRCTSR”), 31 C.F.R. part 593; and the Reporting, Procedures, and Penalties Regulations (“RPPR”), 31 C.F.R. part 501, that occurred between December 15, 2005, and March 1, 2011. This settlement covers the following apparent violations of the CACR, WMDPSR, and RPPR, which OFAC has determined were egregious:

JPMC processed 1,711 wire transfers totaling approximately $178.5 million between December 12, 2005, and March 31, 2006, involving Cuban persons in apparent violation of the CACR.  In November 2005, another U.S. financial institution alerted JPMC that JPMC might be processing wire transfers involving a Cuban national through one of its correspondent accounts.  After such notification, JPMC conducted an investigation into the wire transfers it had processed through the correspondent account.  The results of this investigation were reported to JPMC management and supervisory personnel, confirming that transfers of funds in which Cuba or a Cuban national had an interest were being made through the correspondent account at JPMC.  Nevertheless, the bank failed to take adequate steps to prevent further transfers.  JPMC did not voluntarily self-disclose these apparent violations of the CACR to OFAC.  As a result of these apparent violations, considerable economic benefit was conferred to sanctioned persons.  The base penalty for this set of apparent violations was $111,215,000.

On December 22, 2009, in apparent violation of the WMDPSR, JPMC made a trade loan valued at approximately $2.9 million to the bank issuer of a letter of credit in which the underlying transaction involved a vessel that had been identified as blocked pursuant to the WMDPSR due to its affiliation with the Islamic Republic of Iran Shipping Lines (“IRISL”).  Although JPMC supervisors and managers determined that this trade loan was likely an apparent violation of the WMDPSR and, in late December 2009, decided to submit a voluntary self-disclosure to OFAC, JPMC did not mail its voluntary self-disclosure until March 2010, three days prior to the date on which JPMC received repayment for the loan without OFAC guidance or authorization.  JPMC also failed to respond promptly and completely to an OFAC administrative subpoena seeking information on this transaction.  OFAC determined that JPMC made a voluntary self-disclosure of this apparent violation.  The base penalty for this apparent violation was $2,941,838.

The apparent violation of the RPPR occurred between November 8, 2010, and March 1, 2011.  On October 13, 2010, OFAC issued JPMC an administrative subpoena pursuant to section 501.602 of the RPPR directing JPMC to provide certain specified documents related to a specific wire transfer referencing “Khartoum.”  In response to this subpoena and a subsequent communication, JPMC compliance management failed to produce several responsive documents in JPMC’s possession, and repeatedly stated that JPMC had no additional responsive documents.  OFAC ultimately provided JPMC with a list of multiple responsive documents that OFAC had reason to believe were in JPMC’s possession based on communications with a third-party financial institution.  This prompted JPMC to correct its prior statements that the bank possessed no additional responsive documents and to produce more than 20 responsive documents.  JPMC did not voluntarily self-disclose the apparent violation of the RPPR to OFAC.  The base penalty for this apparent violation was $250,000.

In reaching its determination that the above-referenced apparent violations were egregious because of reckless acts or omissions by JPMC, OFAC considered all of the information in its possession related to these apparent violations, as well as the General Factors Affecting Administrative Action set forth in OFAC’s Economic Sanctions Enforcement Guidelines.  OFAC determined that JPMC is a very large, commercially sophisticated financial institution, and that JPMC managers and supervisors acted with knowledge of the conduct constituting the apparent violations and recklessly failed to exercise a minimal degree of caution or care with respect to JPMC’s U.S. sanctions obligations.

This settlement also covers the following apparent violations, which OFAC determined were not egregious:

Apparent violations of the ITR, GTSR, SSR, FLRCTSR, WMDPSR, and Executive Order 13382 arising out of its failure to appropriately block or reject nine wire transfers between April 27, 2006 and November 28, 2008, which totaled $609,308.  JPMC voluntarily self-disclosed five of these apparent violations to OFAC.

Apparent violations of the WMDPSR and SSR in which JPMC advised and confirmed a $2,707,432 letter of credit on April 24, 2009, in which the underlying transaction involved a vessel identified by OFAC as blocked due to its affiliation with IRISL, and a $79,308 letter of credit on January 29, 2008, involving goods destined for Sudan.  JPMC voluntarily self-disclosed these apparent violations to OFAC.

An apparent violation of the ITR consisting of a May 24, 2006 transfer of 32,000 ounces of gold bullion valued at approximately $20,560,000 to the benefit of a bank in Iran.  JPMC did not voluntarily self-disclose this matter to OFAC.

OFAC mitigated the total potential penalty based on JPMC’s substantial cooperation, including conducting an historical transaction review at OFAC’s request and entering into tolling agreements with OFAC, and the fact that OFAC had not issued a Penalty Notice or Finding of Violation against JPMC in the five years preceding the transactions at issue.  Mitigation was also extended because JPMC agreed to settle these apparent violations.

JP Morgan Chase fined $20m for mishandling Lehman Brothers funds. Government investigation finds Wall Street giant acted improperly ahead of Lehman’s collapse in 2008.  The fine is the first for a Wall Street firm related to the collapse of Lehman, the largest bankruptcy in US history. JP Morgan was a major lender to Lehman and has been under scrutiny since Lehman’s dramatic collapse on 15 September 2008. Lehman’s creditors have accused JP Morgan of siphoning off billions from the fallen bank in the days before it declared bankruptcy.  In other charges, the Commodity Futures Trading Commission (CFTC) said JP Morgan “improperly” held onto funds belonging to Lehman’s clients after the bank went bust.

JPMorgan Chase Fined $154 million in Goldman-Like Case.  JPMorgan agreed to pay $153.6 million to end a Securities and Exchange Commission suit. The SEC alleged that the New York- based bank failed to tell investors in 2007 that a hedge fund helped pick, and bet against, underlying securities in the collateralized debt obligation they purchased. In July, Goldman Sachs paid a record $550 million for failing to inform clients in 2007 that it allowed a hedge fund that also bet against housing to help.
Read more:
http://www.rollingstone.com/politics/blogs/taibblog/jpmorgan-chase-fined-154-million-in-goldman-like-case-20110622#ixzz1ztb1oS7j.

The Financial Services Authority fined one of London’s most high-profile investment bankers for alleged market abuse, the latest chapter in the U.K. regulator’s growing crackdown on insider trading.  In a statement Tuesday, the FSA said it has levied a £450,000 ($718,695) fine against Ian Hannam, a high-ranking investment banker at J.P. Morgan Chase & Co., for allegedly disclosing inside information about Heritage Oil PLC in 2008. At the time, Mr. Hannam was the lead adviser to the company, which had hired J.P. Morgan to seek a potential merger partner.

This is just a small sample of what is really going on with one of the major five.  I don’t want anyone, especially JPMC to think I have something just against them, but they are only a very visible example.  Bid Rigging, Money Laundering, Insider Trading, Bribery, Extortion have all been admitted to by JPMC and NO ONE HAS GONE TO JAIL!  WTF.  Folks, we have to wake up and realize that we cannot allow criminals running our banking system.  We must start demanding criminal sanctions for these institutions, and criminal sentences for the principles involved.  Criminal sanctions should include no Federal subsidies if convicted of a felony and loss of privilege of the backing of the Federal Reserve!

I know that we can’t get legislation passed because the banksters own the CONgress.  I know we can’t expect the regulators like the SEC will take action as their employees are either revolving door people from the banksters or they simply don’t have the resources or political support to do their job.

What to do?  DOJ and more specifically the FBI needs to start doing what we expect them to do.  We know they already have enough information from their on-going investigations.  Economists such as William Black and James Galbraith have repeatedly said, we cannot solve the economic crisis unless we throw the criminals who committed fraud in jail.

Nobel Prize winning economist George Akerlof has demonstrated that failure to punish white collar criminals – and instead bailing them out- creates incentives for more economic crimes and further destruction of the economy in the future. See this, this and this.

Nobel Prize winning economist Joseph Stiglitz just agreed. As Stiglitz told Yahoo’s Daily Finance on October 20th:

This is a really important point to understand from the point of view of our society. The legal system is supposed to be the codification of our norms and beliefs, things that we need to make our system work. If the legal system is seen as exploitative, then confidence in our whole system starts eroding. And that’s really the problem that’s going on.

So it is the FBI and DOJ that needs to hear from us to take the chance and really get interested in taking back our global banking system. So what they need to hear is a loud shout from us the people to “Let’s get this party started, do the raids.”  Look’em up, Hook’em up, and Lock’em up Boys!

Fast and Furious Goldman Sachs – The Tip Off of Why Issa is Attacking Eric Holder

Eric Holder and DOJ have been conducting an on-going investigation of the five major banks and investment firms and potentially a coordinated criminal conspiracy to rig both LIBOR and EURIBOR interest rates.   The most significant thing you need to understand about these rates is that they are the basis which firms like Goldman Sachs uses to determine fees for credit default instruments.  The total exposure of the banks, investment firms and hedge funds is nearly $800 trillion dollars! The information uncovered by the DOJ investigation was shared with UK regulators and this week the CEO of Barclays has resigned instead of facing the Parliament’s Treasury Select Committee. “This is the most damaging scam I can recall,” said Andrew Tyrie, chair of parliament’s Treasury select committee. “It appears that many banks were involved and Barclays were the first to own up.”

The interest rate rigging scandal that has engulfed Barclays was the result of a coordinated attempt at collusion by traders working for a coterie of leading banks over at least five years, according to a series of lawsuits and legal rulings filed in courts in Asia and North America.

The lawsuits allege the fraud was extensive, spanning at least three continents and involving trades worth tens of billions of pounds. The allegations raise further serious questions about the banks’ ability to police themselves and the role of senior management in monitoring the activities of their employees.

In a 28-page statement of facts relating to last week’s revelation that Barclays had been fined a total of £290m, the US Department of Justice discloses how a network of traders working on both sides of the Atlantic conspired to influence both the Libor and Euribor interest rates – the rates at which banks lend to each other. It was, in effect, a worldwide conspiracy against the free functioning of the market.

Here is where it gets really interesting, as reporter Lee Fang writes in, Think Progress reports “Exclusive: Goldman Sachs VP Changed His Name, Now Advances Goldman Lobbying Interests As Top Staffer To Darrell Issa .”

Fang reported, “ThinkProgress has found that a Goldman Sachs vice president changed his name, then later went to work for Issa to coordinate his effort to thwart regulations that affect Goldman Sachs’ bottom line.” The former Goldman Sachs vice president Fang was referring to is Peter Simonyi, now known as Peter Haller.

Imagine that for a minute, a Goldman Sachs operative as a top congressional staffer, lobbying for Goldman Sachs, in this case to block strengthening Dodd-Frank regulations on derivatives. Issa’s wish is exactly the banks’ wish, to weaken the legislation so Wall Street’s Derivatives Casino can keep its stakes up.  Fang asks, “Has Rep. Darrell Issa (R-CA) turned the House Oversight Committee into a bank lobbying firm with the power to subpoena and pressure government regulators?”

In fact, “In July 2011, Issa sent a letter to top government regulators demanding that they back off and provide more justification for new margin requirements for financial firms dealing in derivatives. A standard practice on Capitol Hill is to send a letter to a government agency with contact information for the congressional staffer responsible for working on the issue for the committee. In most cases, the contact staffer is the one who actually writes such letters. With this in mind, it is important to note that the Issa letter ended with contact information for Peter Haller, a staffer hired that year to work for Issa on the Oversight Committee.”

Pretty diabolical scheme: deflect Issa’s corrupt lobbying techniques to emasculate oversight, by ferreting out a DOJ scandal to cover the Democrats with the Fast and Furious scandal, burying the larger scandal of planting a Goldman operative in Congress to lobby for soft laws on derivatives. The Fast and Furious scandal is nowhere near the magnitude of the Goldman Sachs operative scandal, with the add-on that Goldman has succeeded in getting the U.S. attorney general held in contempt and at the same time discredited Obama for using his presidential override of the charge.

Lee Fang writes, “Issa’s demand to regulators is exactly what banks have been wishing for. Indeed, Goldman Sachs has spent millions this year trying to slow down the implementation of the new rules. In the letter, Issa explicitly mentions that the new derivative regulations might hurt brokers ‘such as Goldman Sachs.’

“Haller, as he is now known, went by the name Peter Simonyi until four years ago. Simonyi adopted his mother’s maiden name Haller in 2008 shortly after leaving Goldman Sachs as a vice president of the bank’s commodity compliance group. In a few short years, Haller went from being in charge of dealing with regulators for Goldman Sachs to working for Congress in a position where he made official demands from regulators overseeing his old firm.

“It’s not the first time Haller has worked the revolving door to help out Goldman Sachs. According to a report by the nonpartisan Project on Government Oversight, Haller—then known as Peter Simonyi—left the Securities and Exchange Commission (SEC) in 2005 to work for Goldman Sachs, then quickly began lobbying his colleagues at the SEC on behalf of his new firm. At one point, Haller was requiring [sec] to issue a letter to the SEC stating that he did not violate ethics rules and the SEC agreed. A brief timeline of Haller’s work history underscores the ethical issues raised with Issa’s latest letter to bank regulators:

“● After completing his law degree in 2000, Haller was employed by Federal Energy Regulatory Commission as an economist, and later with the Securities and Exchange Commission in the Office of Enforcement.

“● In April of 2005, Haller resigned from the SEC to take a job with Goldman Sachs. Although he was not a registered lobbyist, he soon began lobbying the SEC on compliance issues on behalf of Goldman Sachs.

“● In 2006, Haller left Goldman Sachs, according to a Goldman official who spoke to ThinkProgress.

“● In 2008, he took a job with the law/lobbying firm Brickfield Burchette Ritts & Stone.

“● In January of 2011, Haller was hired to work for Issa on the Oversight Committee. Under the supervision of Haller, Issa sent a letter dated July 22, 2011 to bank regulators (including the heads of the Federal Reserve, FDIC, FCA, CFTC, FHFA, and Office of Comptroller) demanding documents to justify new Dodd-Frank mandated rules on margin requirements for banks dealing in the multi-trillion dollar OTC derivatives market, like Goldman Sachs.”  This resume embodies everything that is wrong with the financial industry.

So much for Haller; now back to Issa. “When he took over the chairmanship of the Oversight Committee this year, Issa dramatically shifted the committee’s focus away from its traditional role of investigating major corporate scandals. Instead, Issa has used the committee to merge the responsibilities of Congress with the interests of K Street and Issa’s own fortune.” In some way he spelled out his own end by doing this.

“In June of this year, ThinkProgress broke the story about Issa’s own complicated relationship with Goldman Sachs. [They] revealed that Issa purchased a large amount of Goldman Sachs high yield bonds at the same time as he used the Oversight Committee to attack an investigation into allegations that Goldman Sachs had systematically defrauded investors leading up to the financial crisis. This conflict of interest, along with ThinkProgess’s exclusive story about Issa’s earmarks benefitting his own real estate empire, received coverage in a recent piece by the New York Times.

ThinkProgress also broke a story last month revealing other revolving door conflicts within Issa’s staff. Peter Warren, Issa’s new policy director, maintains some type of financial contract with a student loan lobbying group he led last year, and received a bonus from the lobbying group before leaving to work for Issa. Since joining Issa’s staff, Warren and his colleagues have fought to weaken the recently created Consumer Financial Protection Bureau, the new agency charged with overseeing student loans.

“The new revelations about Peter Haller, however, raise even more significant ethical concerns than Peter Warren and other ex-lobbyists working for Issa. Why did Issa hire a high-level Goldman Sachs executive to work on stopping regulations on banks like Goldman Sachs? Haller’s direct involvement in the July letter brings Issa’s ability to lead the Oversight Committee—charged with conducting investigations on behalf of the public interest—into serious doubt.”

It also explains why President Obama did invoke executive privilege concerning Issa’s Fast and furious investigation and the unusual actions of the Democratic Caucasus walking out on the vote. There is no doubt that the banksters are running scared and acting in such desperate manners.  There are literally billions of dollars of exposure here and REAL criminal activity.  The fact that it could extend to congressmen and senators is even more revealing.  To those who are involved and/or have knowledge of the activities should at this moment consider hard what the future may hold for them when this whole scheme unfolds in MSM.  This may be your last chance to save your butts.  Act now or do the PERP walk tomorrow, your choice.