asterisk2a + aig   37

A Wall Street Insider's Response To Greg Smith | ZeroHedge
In these businesses, in which the banks trade with professional, accredited investors, the customers are often as bloodthirsty as the banks. Yes, many could use a good salesman’s hand in furthering their interests, but as many – so many – seek the desk that’s sleeping that day and exact a predatory price. Many I’ve traded against gleefully relished it.

Wall Street is an arena where people go to find who’s sleeping and relieve them of their money.

-
"Muppets" is a sound bite for the large audience

Wall Street has held themselves above capitalism’s consequences in a society which once prided itself on the concept of creative destruction.

Not one banking official of note has been tried for fraud.
monetary  policy  bubble  dotcom  greatrecession  GFC  governance  transparency  accounting  accountability  USA  Japan  toobigtofail  AIG  lehmanbrothers  merrylllynch  freddiemac  FannieMea  bearstearns  WorldCom  Enron  lobby  politics  policy  folly  policy  error  Glass-Steagal  bailout  Greenspan-Put  alangreenspan  history  GoldmanSachs  GregSmith  LTCM  WallStreet 
march 2012 by asterisk2a
Credit-Default Swap Risk Bomb Is Wired to Explode: Mark Buchanan - Bloomberg
The European nations are linked in a network of debts, as Bill Marsh recently illustrated in the New York Times with a beautiful piece of graphic art. Greece and Italy are prominent; Ireland, Portugal and Spain lurk ominously nearby. France and Germany seem exposed, too, as does the U.S.
The image is like a complex wiring diagram for a ticking debt bomb. Yet what it shows may be less important than what it leaves out: a largely invisible network of ties among institutions around the world, which could ultimately cause global financial chaos.
This hidden network has been created by institutions that buy and sell unregulated credit-default swaps. These are essentially insurance contracts on bonds; in the event of a default on the bond, the seller of the swap promises to pay the buyer the bond’s value.

The researchers showed that too much risk sharing can make it easy for distress to spread like a virus.
CDS  Europe  bomb  debt  bubble  2011  OTC  sovereign  crisis  unknown  toobigtofail  2008  AIG  risk  system  systemicrisk  problems  exposure  Greece  PIIGS  tippingpoint  history  lesson  economics  Financalmeltdown  FinancialCrisisInquiryCommission  financialmarket  financialmarkets  financialcrisis  finance 
november 2011 by asterisk2a
U.S. Said to Be Ready to Sue Banks Over Mortgages - NYTimes.com
The Federal Housing Finance Agency suits, which are expected to be filed in the coming days in federal court, are aimed at Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank, among others, according to three individuals briefed on the matter.
The suits stem from subpoenas the finance agency issued to banks a year ago. If the case is not filed Friday, they said, it will come Tuesday, shortly before a deadline expires for the housing agency to file claims.
The suits will argue the banks, which assembled the mortgages and marketed them as securities to investors, failed to perform the due diligence required under securities law and missed evidence that borrowers’ incomes were inflated or falsified. When many borrowers were unable to pay their mortgages, the securities backed by the mortgages quickly lost value.

The FHFA was created in 2008 and assigned to oversee the hemorrhaging government-backed mortgage companies, a process known as conservatorship.
deutschebank  bofa  jpmorgan  goldmansachs  FHFA  subpoena  subprime  2011  misleading  trust  documentation  housing  bubble  housemarket  mortage  fraud  fanniemae  freddiemac  UBS  citigroup  AIG  CountrywideFinancial  merrylllynch  bailout  government  subsidizing  toobigtofail  systemicrisk  banking 
september 2011 by asterisk2a
Debt and Redemption (Marije Meerman, VPRO Backlight 2010) - YouTube
Debt and Redemption (Marije Meerman, VPRO Backlight 2010) - Mar 25, 2011

All over Europe, governments dressed up their accounts by buying exotic financial products from major investment banks. Then came the crash.
Debt and Redemption shows how local authorities in Italy are struggling with the disastrous aftermath of their deals. The city of Milan has decided to strike back by charging four banks with fraud. The banks, as a matter of course, deny any wrongdoing.
Marije Meerman visits Milan and the village Polino Italy and travels to the US, where she speaks to writer/journalist Matt Taibbi (Rolling Stone, Griftopia), investor/blogger Reggie Middleton (Boombustblog) and former IMF economist Simon Johnson (13 Bankers: The Wall Street Takeover and the Next Financial Meltdown).
JosephCassano  AIG  Interestrateswap  CDS  derivatives  MattTaibbi  Italy  subprime  complexity  wallstreet  Milan  goldmansachs  Greece  fraud  PIIGS  europe  ECB  history  oligopol  oligarchy  sovereign  debt  crisis  IMF  monopoly  ReggieMiddleton  speculation 
july 2011 by asterisk2a
Congrats To All Who Got In On AIG Offering...(UPDATE: TIMBERRRRRRR) | zero hedge
Update: Timberrrrrr - this is what happens when you can't package dogshit as a social network or a chinese reverse merger.
AIG  2011 
may 2011 by asterisk2a
Fed Lending Benefited Banks Far and Wide - NYTimes.com
The Fed data showed that the biggest recipient of taxpayer assistance was, naturally, Citigroup. It was followed closely by Morgan Stanley, Merrill Lynch and Bank of America. Goldman Sachs was also a large beneficiary during the darkest moments of 2008.
Remember that the Wall Street firms were imperiled by their excessive use of borrowed money, which generated huge paydays when the cost of those funds was cheap and the values of the assets they were buying were rising at a steady clip. After the bubble burst and financing evaporated, the firms were able to tap into a lending program created by the Fed in mid-March 2008 after Bear Stearns collapsed. It was called the Primary Dealer Credit Facility.
The program allowed firms to borrow at low interest rates — ranging from 3.25 percent when the program began to 0.5 percent when the last loan was made in May 2009. The firms had to post various securities as collateral when they borrowed, and some of those securities were risky indeed.
fed  benbernanke  balancesheet  interbank  report  financialcrisis  FinancialCrisisInquiryCommission  2008  2009  bearstearns  citigroup  goldmansachs  shadowbanking  fanniemae  freddiemac  aig  lending  overnight 
december 2010 by asterisk2a
Talking Business - Rousing Wall Street From Its State of Denial - NYTimes.com
“I represent the Wall Street community,” he began, wearing a suit that was decidedly not polyester. “We have felt like a piñata. Maybe you don’t feel like you’re beating us with a stick but we certainly feel like we’ve been whacked with a stick.” After going on a bit about job growth and the “connection between Wall Street and Main Street,” he returned to his theme. “When are we going to stop whacking Wall Street like a piñata?”

In fact, Mr. Scaramucci had served up a softball question — just not the kind he had intended.

In the span of just a few minutes, Mr. Obama mentioned billion-dollar hedge fund compensation, Mr. Schwarzman’s Hitler remark, the absurdity of a fund manager’s secretary paying a higher tax rate than his or her boss, and the fact that “most people on Main Street feel like they’ve been beat up on.” He was interrupted several times by applause. “He came at me with a baseball bat,” complained Mr. Scaramucci.
rhetoric  Obama  BarackObama  WallStreet  MainStreet  facts  USA  mid-term  election  taxation  goldmansachs  AIG  lehmanbrothers  leadership  representative  financial  industry 
october 2010 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
Cassano, Goldman's Cohn to Testify at Crisis Panel's Derivatives Hearing - Bloomberg
Cassano built AIG’s Financial Products unit over two decades into a business managing $2 trillion in derivative trades tied to bonds, currencies, commodities and stocks. He told investors in December 2007 that “it is very difficult to see how there can be any losses in these portfolios.”

AIG is yet to repay about $50 billion in Treasury assistance and owes about $25 billion on a Federal Reserve credit line. Goldman Sachs, the most profitable firm in Wall Street history, has paid back bailout funds with interest.

The Securities and Exchange Commission sued Goldman Sachs, the most profitable firm in Wall Street history, in April for misleading clients including ABN Amro Bank NV in CDO trades. Goldman Sachs has said the suit is unfounded.
AIG  derivatives  2007  2010  TARP  bailout 
june 2010 by asterisk2a
Geithner Says Bailout Money Is Being Repaid - NYTimes.com
Geithner, said on Tuesday that taxpayers were recovering their investment from the financial bailouts as the program was wound down. But he acknowledged there would probably be a loss from the rescue of the insurer American International Group.

More than a third of the 1.24 million borrowers who have enrolled in the $75 billion mortgage modification program have dropped out.

Richard Neiman, an oversight panel member who is New York’s top banking regulator, said many families that relied on the government’s program to keep their homes “may be left out in the cold.” He asked Mr. Geithner why thousands of mortgage modifications had been canceled.

Mr. Geithner said the homeowners involved had been unable to prove income and therefore their eligibility for the program.

However, he added, the government’s investment “will likely still result in some loss.” $36 billion. Much of the money needed to repay the government will come from the sale of assets.
TARP  AIG  mortage  property  timgeithner  2010  housing  housemarket  USA 
june 2010 by asterisk2a
Reshaping the Federal Reserve | MintLife Blog | Personal Finance News & Advice
Fed assets rose 2.3 percent to $2.06 trillion” by the week ending August 19, 2009 – an increase up made almost entirely of private, mortgage-backed securities. Regardless of the merits or demerits of the Fed owning these particular securities, what matters from an institutional standpoint is that the Fed can now own private securities – a major departure from long-standing precedent.
AIG  Fed  TARP  politics  economy  lehmanbrothers  BearStearns  MBS  balancesheet  recession  2010  moralhazard 
february 2010 by asterisk2a
Obama's Big Sellout : Rolling Stone
Then he got elected.

What's taken place in the year since Obama won the presidency has turned out to be one of the most dramatic political about-faces in our history. Elected in the midst of a crushing economic crisis brought on by a decade of orgiastic deregulation and unchecked greed, Obama had a clear mandate to rein in Wall Street and remake the entire structure of the American economy. What he did instead was ship even his most marginally progressive campaign advisers off to various bureaucratic Siberias, while packing the key economic positions in his White House with the very people who caused the crisis in the first place. This new team of bubble-fattened ex-bankers and laissez-faire intellectuals then proceeded to sell us all out, instituting a massive, trickle-up bailout and systematically gutting regulatory reform from the inside.
BobRubin  bailout  corruption  barackobama  presidency  government  usa  politics  economy  JosephStiglitz  AIG  bonuses  citigroup  campaign  TARP  history  lobby  wallstreet  lobbyist  Lobbying  larrysummers  timgeithner  goldmansachs  RahmEmanuel  barofsky  CDS  derivatives  regulation  reform  barneyfrank  LTCM  SEC  CFTC  ConsumerFinanceProtectionAgency  CFPA  coruption  FDIC  treasury 
february 2010 by asterisk2a
A.I.G. Insurance Unit Alico Dabbled in Credit-Default Swaps - NYTimes.com
Ever since the American International Group nearly collapsed, the conventional wisdom has been that the exotic derivatives that drove it to the brink were the product of a lone, unregulated subsidiary in London. The Federal Reserve chairman, Ben S. Bernanke, called the London branch “a hedge fund, basically, attached to a large and stable insurance company.”
But the suggestion that A.I.G.’s core insurance business did not dabble in derivatives is not quite true. One of its biggest insurance units, incorporated in Delaware, was also dealing in the derivatives known as credit-default swaps, according to regulatory filings with the state.

Though the Delaware division had a much smaller portfolio of those swaps than the London unit, and its portfolio did not pose a similar risk to the world financial system, the very presence of the swaps in a regulated insurance company points to a weakness in insurance oversight.
AIG  CDS  regulation  reform 
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
Bailout watchdog investigating Fed's AIG secrecy
An independent investigator is launching two probes into the government's rescue of American International Group Inc. and the insurer's subsequent payments of billions to big banks.

Neil Barofsky, the special inspector general for the Troubled Asset Relief Program, says the Fed withheld documents he requested when auditing AIG's "backdoor bailouts" of banks it did business with, including Goldman Sachs Group Inc. Barofsky's allegations came in prepared testimony provided to members of the House Committee on Oversight and Government Reform and obtained by The Associated Press.

"issues have come to light that call into question whether the government has been and is being as transparent as possible with the American people." He blasts Treasury for issuing misleading public statements and outlines new investigations into the Federal Reserve and the New York Fed.
aig  benbernanke  bailout  TARP  barofsky  FinancialCrisisInquiryCommission  fed  government  Transparency 
january 2010 by asterisk2a
“Body Count From Goldman Actions Crosses Into Criminal Territory” « naked capitalism
Don't bet what you can not afford to lose.
.
She notes, accurately, that Goldman used AIG to hedge its bet on CDO’s, either for itself with the Abacus deals, or for its clients, with the Davis Square deal. Had AIG failed, Goldman would have been on the hook for the losses: to execute the CDO with synthetic mortgage bonds, Goldman went “long” the CDS and then turned around and went “short” with AIG, effectively taking the risk of the mortgage bonds defaulting and then transferring it to AIG.

But Ms. Tavakoli fails to note that the collapse of the CDO bonds and the collapse of AIG were a deliberate strategy by Goldman. To realize on their bet against the housing market, Goldman needed the CDO bonds to collapse in value, which would cause AIG to be downgraded and lead to AIG posting collateral and Goldman getting paid for their bet. I am confident that Goldman Sachs did not reveal to AIG that they were betting on the housing market collapse.
goldmansachs  bet  betting  aig  bailout  derivatives  CDO  mortage  MBS  toxicassets  prime  non-prime  subprime 
december 2009 by asterisk2a
Markets Hit Their Highest Levels Since Autumn - NYTimes.com
Wall Street was so bullish on Friday that it could have passed for Pamplona.
“The recession is dead,” Dean Maki, an economist at Barclays Capital, declared in a research note. “Long live the recovery.”
.
“No one really knows what kind of expansion we’ll have,” said Stu Schweitzer, global markets strategist at JPMorgan Private Bank. “One thing is clear: having cut costs to the bone, any increase in revenue should drop straight through to the bottom line of corporate America.”
.
“The behavior of the consumer is now the key thing to watch,”
recession  stockmarket  2009  dowjones  s&p500  bottom  AIG  unemployment  recovery  consumer  spending  behavior  behaviour 
august 2009 by asterisk2a
Krisenticker: AIG erzielt wieder Gewinn - manager-magazin.de
14.33 Uhr: In den USA ist die Arbeitslosenquote überraschend gesunken. Die Quote sei von 9,5 Prozent im Vormonat auf 9,4 Prozent zurückgegangen, teilte das US-Arbeitsministerium am Freitag in Washington mit. Ökonomen hatten eine Quote von 9,6 Prozent erwartet. Im Vormonat hatte die Finanz- und Wirtschaftskrise die Arbeitslosenquote noch auf den höchsten Stand seit August 1983 getrieben.

13.27 Uhr: Der massiv vom Staat gestützte US-Versicherer AIG hat es nach Rekordverlusten zurück in die schwarzen Zahlen geschafft. Unter dem Strich stand im zweiten Quartal ein Plus von 311 Millionen Dollar (216 Mio Euro). Ein Jahr zuvor hatte der einst weltgrößte Versicherer noch ein Minus von 5,4 Milliarden Dollar eingefahren. Der Gewinn war der erste seit fast zwei Jahren. Vor Abzug von hohen Vorzugsdividenden vor allem im Zuge der Staatskredite lag das Plus sogar bei 1,8 Milliarden Dollar, wie AIG am Freitag in New York mitteilte.
AIG  unemployment  kriesen-ticker 
august 2009 by asterisk2a
Ex-AIG CEO Greenberg Pays $15 Million To Settle SEC Fraud Charges
The Securities and Exchange Commission said Thursday that former American International Group Inc. CEO Maurice "Hank" Greenberg agreed to pay a $15 million fine to settle fraud charges.

The charges are tied to an accounting scandal earlier this decade at AIG that led to Greenberg's ouster in 2005. The following year, AIG paid more than $1.6 billion to settle charges of improper accounting.

The case is unrelated to the government bailout of AIG, which is in the process of trying to sell off assets to pay off the $182.5 billion in loans it has received since last September.
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SEC AIG fraud ponzischeme
SEC  AIG  fraud  ponzischeme 
august 2009 by asterisk2a

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