asterisk2a + henrypaulson   25

The real truth about the 2008 financial crisis | Brian S. Wesbury | TEDxCountyLineRoad - YouTube
bankers are greedy & excess speculation, is the story. Fed controls short-term interest rate through interest rate setting/Fed meetings based on fundy of American economy, // NIRP (greenspan put) post dot.com, distorts market, decision makers decisions. housing bubble w help of NIRP after dot.com & home-ownership campaign in bush years (fiscal stimulus/subsidies) 2 push that "asset." Not "home" to live in. // banks got too big to fail (their balance sheet/lending book) as liabilities (toxic assets - real downside unknown (due to complexity and day to day changes during crisis years), like CDO/CDS etc) overtook book, overall, value. Banking being actually insolvent, but how insolvent one doesn't know. Thus bad bank idea. ACCOUNTING. // Paul Volker raised rates ... was able, because USA (private household, banks, corporates) were not in a balance sheet recession. Problem was endogenous. // Deregulation + Lax accounting contributed to GFC greatly, unable to value banks books.
GFC  economic  history  fractional  reserve  banking  financial  crisis  monetary  theory  systemicrisk  Greenspan-Put  NIRP  ZIRP  negative  real  interest  rate  interestrate  dot.com  reflation  reflate  balance  sheet  recession  deleveraging  debtoverhang  savings  rate  leverage  alangreenspan  greenspan  Ben  Bernanke  benbernanke  distortion  housing  market  accounting  too  big  to  jail  toobigtofail  TBTF  financial  market  financial  incentive  speculative  bubbles  speculative  speculation  hunt  for  yield  asset  allocation  asset  bubble  TARP  subprime  QE  stresstest  timgeithner  henrypaulson  economic  model  economic  damage  macroeconomic  policy  fiscal  policy  monetary  policy  history  paulvolcker  complexity  incomplete  information  business  confidence  consumer  confidence  confidence  banking  crisis  zombie  banks  mark-to-market  Janet  Yellen 
july 2015 by asterisk2a
Staatsverschuldung als Problem der Generationengerechtigkeit | Lars P. Feld | SWR Tele-Akademie - YouTube
henry paulson and tim geithner said they are in a moral hazard. put it the way to either nationalise (aka the end of American Dream, Failure part of capitalism) or bailout (gov loans and co like TARP). Rather the moral hazard was to either put current and future unborn generation in debt servitude they had nothing to do with and keep criminals private with all its benefits. Or really give a warning shot a privatise banks and end the profligacy of crony capitalism and Wall Streets shareholder value creation only and profit maximisation - without consequences. // and Europe looks towards USA and did the same; made banks whole again (because they were really - TBTF - and would pushed some EU countries into Great Depression/Insolvency. especially France & Belgium where bank liabilities were too big for public balance sheet) and took some of the debt onto its public balance sheet (and gave bailout loans) to be served by current & future unborn generation.
Generationengerechtigkeit  austerity  bailout  sovereign  debt  crisis  economic  history  Failure  zombie  banks  toobigtofail  TBTF  too  big  to  jail  Wall  Street  crony  capitalism  capitalism  fiscal  policy  academia  academic  moralhazard  morality  American  Dream  GFC  policy  folly  policy  error  World  Bank  IBS  IMF  liberal  economic  reform  neoliberal  neoliberalism  PIIGSFB  PIGS  Greece  Grexit  UK  fiscal  sovereignty  Pact  Schuldenbremse  Career  Politicians  No  Representation  democracy  banking  crisis  history  henrypaulson  timgeithner  benbernanke  Ben  Bernanke  Makers  lobbyist  lobby  Lobbying  ideology  dogma  populism  fairness  manufactured  consent  propaganda  financialcrisis  FinancialCrisisInquiryCommission  media  conglomerate  corporate  state  European  Union  fiscal  transferunion  European  Eurobond  currency  Agenda  2010  hartz-iv  Stability  and  Growth  Pact  generational  conflict  social  tension  social  cohesion  Verteilungskonflikt 
july 2015 by asterisk2a
Germany won’t spare Greek pain – it has an interest in breaking us | Yanis Varoufakis | Comment is free | The Guardian
Debt restructuring has always been our aim in negotiations – but for some eurozone leaders Grexit is the goal [...] To frame the cynical transfer of irretrievable private losses on to the shoulders of taxpayers as an exercise in “tough love”, record austerity was imposed on Greece, whose national income, in turn – from which new and old debts had to be repaid – diminished by more than a quarter. It takes the mathematical expertise of a smart eight-year-old to know that this process could not end well. [...] In my first week as minister for finance I was visited by Jeroen Dijsselbloem, president of the Eurogroup (the eurozone finance ministers), who put a stark choice to me: accept the bailout’s “logic” and drop any demands for debt restructuring or your loan agreement will “crash” – the unsaid repercussion being that Greece’s banks would be boarded up. [...] Wolfgang Schäuble, decided that Grexit’s costs were a worthwhile “investment” as a way of disciplining France et al,
Yanis  Varoufakis  debt  restructuring  debt  jubilee  Super  Cycle  sustainable  sustainability  Great  Depression  Greece  Grexit  lost  decade  lost  generation  PIGS  Troika  Germany  France  IMF  Angela  Merkel  ChristineLagarde  European  History  Wolfgang  Schäuble  Thomas  Piketty  ECB  MarioDraghi  Leadership  European  Union  Insolvenzverschleppung  insolvent  insolvency  austerity  economic  policy  folly  policy  error  Career  Politicians  No  Representation  dogma  ideology  propaganda  Lügenpresse  bailout  zombie  banks  populism  manufactured  consent  media  conglomerate  corporate  state  Jeroen  Dijsselbloem  Jean-Claude  Juncker  Eurogroup  EFSF  ELA  EuropeanSystemicRiskBoard  systemicrisk  toobigtofail  TBTF  too  big  to  jail  referendum  PIIGSFB  PIIGS  FrancoisHollande  academia  academic  academics  carmenreinhart  kennethlewis  Alexis  Tsipras  Syriza  Wall  Street  crony  capitalism  Podemos  Indignants  Indignados  occupywallstreet  fairness  GFC  recovery  economic  model  trickle-down  economics  economic-thought  shared  economic  interest  profit  maximisation  shareholder  value  economists  economic  damage  short-term  thinking  short-term  view 
july 2015 by asterisk2a
BOE Minutes Show Tucker Aware Of Libor Fixing Claims In 2007 | ForexLive
BOE Minutes Show Tucker Aware Of Libor Fixing Claims In 2007
- Tucker Chaired Nov 2007 Meeting At Which Libor Rigging Was Discussed

Bank of England Deputy Governor Paul Tucker, long the BOE’s leading internal candidate for the top job when Mervyn King’s
term comes to an end at the middle of 2013, was fully aware from the early days of the financial crisis that market participants believed Libor was being rigged.

The minutes of a money markets group meeting chaired by Tucker himself back up what a participant recalls privately, that there were frank discussions dating back to 2007 involving Tucker about banks submitting Libor rates below actual rates.

“Several group members thought that Libor fixings had been lower than actual traded interbank rates through the period of stress.”

They add a cautionary note, saying “Libor indices need to be of the highest quality given their important role as a benchmark for corporate lending.”

**
Everything was on the table to stabilise markets.
henrypaulson  benbernake  Fed  NYFed  NorthernRock  moralhazard  Willful  ignorance  trustagent  trust  banking  crisis  bank  crisis  credicrunch  GFC  2007  2008  collusion  fraud  misconduct  BBA  BOE  bobdiamond  barclays  PaulTucker  EURIBOR  LIBOR 
july 2012 by asterisk2a
Is The Bank Of England About To Be Dragged Into Lie-borgate, And Which US Bank Is Next | ZeroHedge
was it in the nations interest to look over LIBOR manupulation?
http://www.bbc.co.uk/news/business-18665080

*
http://zerohedge.blogspot.com/2009/01/this-makes-no-sense-libor-by-bank.html

January 22, 2009 when the market was crashing every single day, when the world's central banks would do anything to halt the collapse in risk and asset prices, up to an including telling their host banks to lie about funding conditions, before the real QE1 was announced back in the middle of March, in which we made just this speculation.

*

Three and a half years later the puzzle is no more: it was all one big epic fraud, pardon, no fraud, as the CFTC and SEC settlements never admitted or denied fraud. Let's just call it benign market manipulation of a [$350-$500] trillion market.

... many have been warning for years, the biggest market manipulation fraud in history.

*

Lack of integrity left and right ...
trustagent  trust  bank  crisis  banking  crisis  banking  accountability  transparency  moralhazard  NYFed  benbernake  henrypaulson  governance  Fed  market-mechanism  market-failure  fraud  manipulation  collusion  centralbanks  BIS  GFC  Barclays  CFTC  SEC  FSA  BBA  PaulTucker  BOE  EURIBOR  LIBOR 
july 2012 by asterisk2a
How Paulson Gave Hedge Funds Advance Word - Bloomberg
“If you have a bazooka, and people know you have it, you’re not likely to take it out,”
henrypaulson  GFC  2008  FannieMea  freddiemac  GSE 
november 2011 by asterisk2a
TARPed, RETARPed, And Then DETARPed | ZeroHedge
Former Merrill Lynch CEO John Thain accurately described the problem to the FCIC in September 2010:
 "when you have a system where you pay someone for originating mortgages simply on volume and nothing happens to them if the credit quality is bad, and nothing happens to them if the borrower is fraudulent on his loan application, and nothing happens to him if the appraisal’s fraudulent, then that’s probably not a very smart system."

Some of the firms sued today had asked the Treasury and the Fed to slow the process so they could settle the claims out of court, according to a person briefed on the private conversation who spoke on condition of anonymity. The impending lawsuits were one subject of an Aug. 10 meeting at Treasury between Bank of America Chief Executive Officer Brian Moynihan and Treasury Secretary Timothy F. Geithner, the person said.

his purchase of Countrywide is now the single worst M&A transaction in history,
FHFA  FCIC  subprime  mortage  fraud  misleading  security  securities  securities-fraud  2011  Bofa  toobigtofail  CountrywideFinancial  KenLewis  merrylllynch  M&A  2008  henrypaulson  history 
september 2011 by asterisk2a
Morgan Stanley at Brink Got $107B From Fed - Bloomberg
http://www.bloomberg.com/data-visualization/federal-reserve-emergency-lending

Hedge Funds pulled money out ... out of banks who facilitate their trades.
Prime brokers facilitate short trades, the sale of borrowed stock in the hope of buying it back later at a lower price. They also make margin loans to finance stock purchases. In exchange, hedge funds usually keep their cash and stock in accounts at the prime-brokerage companies.

“So if clients pulled their money out, the view was that money had not been lent out, so the cash would have been sitting there able to hand over. It turns out that that was not entirely correct.”

In reality, “prime brokers were able to reuse clients’ assets to raise cash for their own activities,” the financial crisis commission wrote in its final report, published in January. Azarchs said that in her years covering Morgan Stanley for S&P she never heard executives discuss the risk that the funding might evaporate.
Fed  meltdown  fiancial  crisis  discountwindow  2008  jpmorgan  morganstanley  interbank  liquidity  freeze  emergency-lending  operation  benbernanke  henrypaulson  hedgefunds  panic  FinancialCrisisInquiryCommission  banking  lehmanbrothers  history  goldmansachs  broker  service  lesson  financialcrisis  PrimaryDealerCreditFacility  lenderoflastresort  PDCF  JimChanos  JohnMack  TermSecuritiesLendingFacility  TSLF  TARP  POMO  counterpartyrisk  toobigtofail 
august 2011 by asterisk2a
Hank "3 Page Blank-Check Term Sheet" Paulson Issues First Mutual Assured Destruction Statement Since Retirement | zero hedge
“Now is the time for action on both raising the debt ceiling and tackling the U.S. debt and deficits through significant and lasting spending reduction, entitlement reform and tax reform. Our growing debt is the single largest threat to our nation’s future. Real reform that puts us on a sustainable fiscal path is critical to U.S. economic competitiveness. This is not an easy task, and will involve tough decisions on all sides. I am confident that this administration and Congressional leaders in both parties are working in good faith toward a solution. And the sense of urgency is clear – failing to raise the debt ceiling would do irreparable harm to our credit standing, would undermine our ability to lead on global economic issues and would damage our economy.”
henrypaulson  debtceiling 
july 2011 by asterisk2a
In Financial Crisis, No Prosecutions of Top Figures - NYTimes.com
[Tim Geithner & Co. their] worry, according to these people, sprang from a desire to calm markets, a goal that could be complicated by a hard-charging attorney general.

Whether prosecutors and regulators have been aggressive enough in pursuing wrongdoing is likely to long be a subject of debate. All say they have done the best they could under difficult circumstances.
But several years after the financial crisis, which was caused in large part by reckless lending and excessive risk taking by major financial institutions, no senior executives have been charged or imprisoned, and a collective government effort has not emerged. This stands in stark contrast to the failure of many savings and loan institutions in the late 1980s. In the wake of that debacle, special government task forces referred 1,100 cases to prosecutors, resulting in more than 800 bank officials going to jail. 

SEC cautious ... taxpayer money in effect being used to pay for settlements.
bailout  fed  timgeithner  andrewcuomo  fraud  misleading  prosecution  SEC  FinancialCrisisInquiryCommission  financialcrisis  2008  2007  settelment  proptrading  ethics  henrypaulson  benbernanke  mortage  analysis  insight  2011 
april 2011 by asterisk2a
YouTube - Barofsky Says U.S. `Hopelessly Naive' on Bank Bailouts
TARP Inspector - Neil Barofsky, special inspector general for the Troubled Asset Relief Program, talks about the performance of and outlook for TARP.- Banks got w TARP major advantage - home owners and business owners and unemployed either let down or in the case of the latter scrutinized- Moral Hazard - TARP was a present from Hank and Ben; had no to very little strings attached in order to guide banking
barofsky  TARP  henrypaulson  benbernanke  2011  fraud  banking  transparency  presidency  barackobama  FinancialCrisisInquiryCommission  finance  financialcrisis  2008  meltdown  abuse  policy 
march 2011 by asterisk2a
A Different Side to Dick Fuld - NYTimes.com
“I see what you are doing for” the American International Group, Mr. Fuld told Mr. Paulson on Sept. 16, according to his testimony. “If you would give us a bridge, let’s put Lehman back together. We can wind down these positions, and we can make a lot of this ugliness go away.”
Mr. Paulson seemed skeptical: “Dick, I know you have done everything humanly possible. I will say one thing for you, you never give up. But I don’t think that is possible at all. I will go back and talk to my people, but I don’t think that is possible at all.”
“Did he ever get back to you,” an examiner asked Mr. Fuld. The executive paused and then laughed: “No. No, he did not. That is the last conversation I ever had with him.”
FinancialCrisisInquiryCommission  2011  lehmanbrothers  bailout  henrypaulson 
february 2011 by asterisk2a
Thain Says He Should've `Grabbed, Shaken' Paulson to Aid Lehman - Bloomberg
Banking chiefs weren’t “strong enough” during 2008 meetings in insisting that then-Treasury Department Secretary Henry Paulson reverse his opposition to a U.S.-led rescue of Lehman, Thain told the Financial Crisis Inquiry Commission, according to audio files released yesterday.

“We collectively, the group of us, we should have just grabbed them and shaken them and said, ‘Look, you guys cannot do this,’” Thain told FCIC interviewers in a Sept. 17, 2010, interview. “Allowing Lehman to go bankrupt was the single biggest mistake of the financial crisis.”
lehmanbrothers  henrypaulson  2008  FinancialCrisisInquiryCommission  financialcrisis 
february 2011 by asterisk2a
Financial Crisis Panel Lends Sympathetic Ear to Lehmans Ex-Chief - NYTimes.com
The commission’s hearing Wednesday did not focus on Lehman’s responsibility for its own undoing, including its excessive leveraging and speculative investments. Nor did it question the accounting gimmicks, known as Repo 105, that Lehman had used to conceal some of its debt, as a court-appointed bankruptcy examiner detailed in March.

FULD: “Lehman was forced into bankruptcy not because it neglected to act responsibly or seek solutions to the crisis, but because of a decision, based on flawed information, not to provide Lehman with the support given to each of its competitors and other nonfinancial firms in the ensuing days,”

lawyers for the Fed — Scott G. Alvarez, and Thomas C. Baxter Jr., — disagreed.

“The Federal Reserve did not ‘allow’ Lehman Brothers to die,” “tried hard to save it,”
“We did not succeed, but the effort made was serious and determined,” Mr. Baxter said. “We came very close.”
lehmanbrothers  2010  FinancialCrisisInquiryCommission  bankruptcy  Fed  agenda  timgeithner  bailout  bearstearns  henrypaulson  benbernanke  AIG 
september 2010 by asterisk2a
Dealbook - Paulson Likes What He Sees in Overhaul - NYTimes.com
In the end, though, Mr. Paulson said that regulation on its own would not be enough to prevent another crisis. No, that will come down to people.

“As I’ve thought about it, this is very people-driven,” he said. “A lot of this is about the people who have the responsibility for the regulation when there isn’t a crisis and the people who have the responsibility during a crisis. Unless you believe that the big financial institutions were intentionally trying to blow themselves up, they were unable to spot a number of the issues.”

He continued: “I think it is asking a lot for regulators to be perfect — because they won’t be. But what you h
henrypaulson  financial  regulation  reform  crisis  creditcrunch  depression  greatrecession  usa  regulators  timgeithner  larrysummers  paulvolcker  VolckerRule  2010  2011  presidency  barackobama  Fed  treasury  fdic 
july 2010 by asterisk2a
Cuomo Sues Bank of America as It Settles With S.E.C. - NYTimes.com
Mr. Cuomo made some new claims in a 90-page complaint filed on Thursday. The complaint painted Mr. Price as the central figure in the case. Mr. Cuomo accused Mr. Price of hiding the extent of Merrill’s losses from Bank of America’s own lawyers when seeking advice on whether to update shareholders about the deepening pool of red ink.

One Bank of America executive commented in a note about the losses that read “read and weep,” the complaint says.

Legal experts said that many controversial issues stemming from the financial crisis — rich bonuses for bankers, allegations of government fraud, potential harm to investors — come together in the Merrill-Bank of America case.
kennethlewis  BoA  merrylllynch  SEC  merger  2010  henrypaulson 
february 2010 by asterisk2a
What the New York Fed Bought in A.I.G.’s Bailout - DealBook Blog - NYTimes.com
In his statement releasing the document, Mr. Issa argued, “It’s not conjecture, it’s not speculation, it’s fact — the New York Fed gave a backdoor bailout to A.I.G.’s counterparties and then tried to cover it up.”
AIG  bailout  henrypaulson  assets  fed  timgeithner  documents  derivatives  MBS  subpoena 
january 2010 by asterisk2a
Doubts at Fed Over A.I.G.’s $30 Billion Payout - NYTimes.com
Lawyers for the Fed argued in the documents that it did not have the legal authority to guarantee A.I.G.’s obligations. The New York Fed’s chief counsel is expected to reiterate this point in Congressional testimony on Wednesday.

Of all the government rescues undertaken during the credit crisis of 2008, none has stirred more outrage and raised more questions than the bailout of A.I.G., a global insurer that has received $180 billion in taxpayer commitments since its collapse 16 months ago. More fireworks are expected Wednesday as lawmakers hear testimony about the insurer’s rescue from the two men most closely associated with it: Timothy F. Geithner, the Treasury secretary and former president of the New York Fed; and Henry M. Paulson Jr., the former secretary of the Treasury.
fed  treasury  benbernanke  timgeithner  henrypaulson  AIG  bailout  MBS 
january 2010 by asterisk2a

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