Monday, December 7, 2009
"Despite rule changes meant to curb congressional junkets, "some lawmakers and even their families continue to take trips hosted by private groups and companies that revel in their access to Washington power brokers." An examination by The New York Times "of 1,150 trips shows that some of them bent or broke rules adopted in 2007 to limit corporate influence in Washington." The NYTimes article
Friday, November 20, 2009
"From Next year "looks like an unavoidable bloodbath for a multitude of 'zombie' borrowers, investors and lenders" and the shakeout could continue for "several years," says a recent report by PriceWaterhouseCoopers and the Urban Land Institute drawn from confidential interviews with industry experts".
Inside The Great American Bubble Machine : Rolling Stone
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Monday, November 2, 2009
CIT Group's filing for Chapter 11 protection is the fifth-largest in U.S. history. Here are the top 10 U.S. bankruptcy filings, based on the companies' most recent annual report before filing for bankruptcy protection, according to BankruptcyData.com.
Company, Bankruptcy Date, Assets
Lehman Brothers Holdings Inc., Sept. 15, 2008, $691.06 billion
Washington Mutual Inc., Sept. 26, 2008, $327.91 billion
WorldCom Inc., July 21, 2002, $103.91 billion
General Motors Corp., June 1, 2009, $91.05 billion-x
CIT Group Inc., Nov. 1, 2009, $71 billion
Enron Corp., Dec. 2, 2001, $65.50 billion
Conseco Inc., Dec. 17, 2002, $61.39 billion
Chrysler LLC, April 30, 2009, $39.30 billion
Thornburg Mortgage Inc., May 1, 2009, $36.52 billion
Pacific Gas and Electric Co., April 6, 2001, $36.15 billion
x-GM listed $91.05 billion in assets in its annual report as of Dec. 31, 2008, but listed $82.29 billion in assets as of March 31, 2009, in its bankruptcy petition.
A look at the top 10 US bankruptcies - BusinessWeek
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Friday, October 23, 2009
Friday, October 16, 2009
One of America's wealthiest men was among six hedge fund managers and corporate executives arrested Friday in a hedge fund insider trading case that prosecutors say reaped more than $20 million in illegal profits and should be a wake-up call for Wall Street.
Raj Rajaratnam, a partner in Galleon Management and a portfolio manager for Galleon Group, a hedge fund with up to $7 billion in assets under management, was accused of conspiring with others to trade based on insider information about several publicly traded companies, including Google Inc.
U.S. Attorney Preet Bharara, putting total profits in the scheme at $20.6 million, told a news conference it was the largest hedge fund case ever prosecuted and marked the first use of court-authorized wiretaps to capture conversations by suspects in an insider trading case.
He said the case should cause financial professionals considering insider trades in the future to wonder whether law enforcement is listening.
"Greed is not good," Bharara said. "This case should be a wake-up call for Wall Street."
Robert Khuzami, director of enforcement at the Securities and Exchange Commission, said the charges show that Rajaratnam's "secret of success was not genius trading strategies."
"He is not the master of the universe. He is a master of the Rolodex," Khuzami said.
Rajaratnam, 52, was ranked No. 559 by Forbes magazine this year among the world's wealthiest people, with a net worth of $1.3 billion .
Rajaratnam, who was born in Sri Lanka and is a graduate of University of Pennsylvania's Wharton School of Business, has been described as a savvy manager of billions of dollars in technology and health care hedge funds at Galleon, which he started in 1996. The firm is based in New York City with offices in California, China, Taiwan and India. He lives in New York.
According to a criminal complaint filed in U.S. District Court in Manhattan, Rajaratnam obtained insider information and then caused the Galleon Technology Funds to execute trades that earned a profit of more than $12.7 million between January 2006 and July 2007. Other schemes garnered millions more, authorities said.
A spokesman for Rajaratnam did not immediately return a phone call for comment Friday.
The timing of the arrests might be explained by a footnote in the complaint against Rajaratnam. In it, an FBI agent said he had learned that Rajaratnam had been warned to be careful and that Rajaratnam, in response, had said that a former employee of the Galleon Group was likely be wearing a "wire."
The agent said he learned from federal authorities that Rajaratnam had obtained a plane ticket to fly from Kennedy International Airport to London on Friday and to return to New York from Geneva, Switzerland next Thursday.
Also charged in the scheme are Rajiv Goel, 51, of Los Altos, Calif., a director of strategic investments at Intel Capital, the investment arm of Intel Corp., Anil Kumar, 51, of Santa Clara, Calif., a director at McKinsey & Co. Inc., a global management consulting firm, and Robert Moffat, 53, of Ridgefield, Conn., senior vice president and group executive at International Business Machines Corp.'s Systems and Technology Group.
The others charged in the case were identified as Danielle Chiesi, 43, of New York City, and Mark Kurland, 60, also of New York City.
According to court papers, Chiesi worked for New Castle, the equity hedge fund group of Bear Stearns Asset Management Inc. that had assets worth about $1 billion under management. Kurland is a top executive at New Castle.
A criminal complaint filed in the case shows that an unidentified person involved in the insider trading scheme began cooperating and authorities obtained wiretaps of conversations between the defendants.
In one conversation about a pending deal that was described in a criminal complaint, Chiesi is quoted as saying: "I'm dead if this leaks. I really am. ... and my career is over. I'll be like Martha [expletive] Stewart."
Stewart, the homemaking maven, was convicted in 2004 of lying to the government about the sale of her shares in a friend's company whose stock plummeted after a negative public announcement. She served five months in prison and five months of home confinement.
Prosecutors charged those arrested Friday with conspiracy and securities fraud.
It was not immediately clear who was representing the defendants in court appearances scheduled for U.S. District Court in Manhattan later Friday.
A separate criminal complaint in the case said Chiesi and Moffat conspired to engage in insider trading in the securities of International Business Machines Corp.
According to a criminal complaint in the case, Chiesi and Rajaratnam were heard on a government wiretap of a Sept. 26, 2008 phone conversation discussing whether Chiesi's friend Moffat should move from IBM to a different technology company to aid the scheme.
"Put him in some company where we can trade well," Rajaratnam was quoted in the court papers as saying.
The complaint said Chiesi replied: "I know, I know. I'm thinking that too. Or just keep him at IBM, you know, because this guy is giving me more information. ... I'd like to keep him at IBM right now because that's a very powerful place for him. For us, too."
According to the court papers, Rajaratnam replied: "Only if he becomes CEO." And Chiesi was quoted as replying: "Well, not really. I mean, come on. ... you know, we nailed it."
The criminal complaints in the case also captured what authorities said were efforts by the defendants to hide their conversations from authorities.
In one conversation, Chiesi was heard telling Rajaratnam that she was "glad that we talk on a secure line, I appreciate that," to which Rajaratnam replied: "I never call you on my cell phone," the complaint said. It added that Chiesi said she was "nervous" about being investigated.
Thursday, October 15, 2009
E-Mail Shows Concerns Over Merrill DealFrom New York Times article by Louise Story and Eric Dash
“Unfortunately it’s screw the shareholders!!” Charles K. Gifford wrote to a fellow director in an e-mail exchange that took place during the call. "
So, after lying to share holders about this shaky disaster of merger with Merrill Lynch, these email call into question whether the banks acted in good faith. And as recipients of Tarp funding we're getting stuck with the bill
Read the full article here
Tuesday, October 6, 2009
Friday, July 10, 2009
Monday, May 11, 2009
While as not as bad as Madoff and Stanford, Marc Dreier is about to get a lot of press and none of it good. Here are the figures
Defrauding hedge funds of about $700 million(his pocket)
He'll be doing prison time a minimum of 145 years
loss to clientS: $400 million USD
No Ponzi, just straight up fraud
Friday, April 24, 2009
My name is Ruth Madoff wife to bernard madoff am 53yrs old of age, I stay merchant, I have several Industrial companies and good share in various banks in the world. I spend all my life on ministry and corporate business both is Asia, Europe and America here.on 12 March 2009 in New York US authorities confirmed today that they will seize $69m (Ј48.9m) of assets belonging to me Ruth Madoff wife of the multibillion dollar Bernard Madoff, The Prosecutors will seek the $7m Manhattan penthouse registered in my name Ruth Madoff's name as well as another $62m that she had sought to keep, a filing to a New York court said The decision, which will also see the seizure of other homes in Florida,
Antibes and Long Island worth $22m, is a blow to Madoff. His lawyers had argued that i Ruth Madoff`should be able to keep the assets,
including $17m in a bank account, as they were not part of Madoff'smoney and were in my name Ruth Madoff .
Prosecutors have been preparing legal action against me Ruth Madoff amid fears that i will try to flee the United States or move my fortune beyond their reach, I am a very godly woman with all cost I care about orphanage and Lesprivilage people, since when I have an experience to give the little i have to lespriliage and the orphans,I found It uneasy to survive myself, because a lot of my investment Be run and manage by me again. I quickly call up my lawyer to give me
positive thinking on this solution, as my Adviser. He advice me to share my properties, wealth, to Motherless baby/orphanage homes/people that
need money for survivor, Business woman and man for their investment and for future rising.
Therefore I am writing this letter to people who really need help to contact me urgently. so that I can make available preparation on That.Especially women of the day, who are divorced by their husband, why they cannot survive from feeding their self. Please contact me and stop weeping. Probably let me know what you really need the money for, and if
bless you, as you reach me, please to Remind you, don’t belong to scammers or any act of fraudulent act on Internet. I will give more information to you as I await your
Friday, April 10, 2009
- This should be the Republican's new party anthem
- I don't know what they have to say
- It makes no difference anyway;
- Whatever it is, I'm against it!
During the climactic football game, at one point Groucho utters the exclamation, "Jumping anaconda!" This seemingly nonsensical phrase probably is a reference to the notorious stock market performance of Anaconda Copper immediately preceding the Great Depression. Groucho had delivered other jokes related to the stock market in the Brothers' preceding films (for example, "The stockholder of yesteryear is the stowaway of today" in Monkey Business) and all the Marx Brothers had experienced severe losses in the 1929 crash.
I guess we should say "Jumping AIG
Wednesday, April 1, 2009
Tuesday, March 17, 2009
Barney Frank On the Rachel Maddow show Via YouTube
At a time their when their virtually hemorrhaging cash, AIG still employs the excuse that because of contractual purposes they are obligated to pay bonuses to their people, some of whom helped create the financial crisis and requiring the "too big to fail" company to line up for taxpayer cash.
So finally the president and his administration say enough is enough and as reported in The New York Times
Obama is ordering The Treasury Department to “pursue every single legal avenue to block these bonuses”.
The people who worked for the notorious Financial Products Group, at the heart of the derivatives debacle, deserve neither retention nor performance bonus if last year is any indication of their abilities. Andrew M Cuomo, the New York attorney general, said he'd subpoena AIG for names, job descriptions and performance reviews of those set to receive those bonuses. It looks like a big game of chicken but I hope the government doesn't blink. When Treasury rescued them, AIG became beholden to new set rules and conditions. In a time that others have to make major adjustments(homes,jobs,lifestyle), it only seems fair AIG make some too
Monday, March 16, 2009
AIG must stand for
Once Again, Thanks AIG(for nothing)!
Monday, February 23, 2009
Monday, January 26, 2009
1998 Chairwoman of the CommodityFuture Trading Commission (CFTC) who sought to regulate the Derivatives market and meet with resistance from Rick Rubin, Alan Greenspan and Arthur Levitt. She is classy enough to not say "I told you so."
Sunday, January 18, 2009
Today finds me unable to suppress anger and stay dispassionate and detactched. Reading an article from the New York times, my anger was roused when I read an article that bankers who receives TARP monies meant to jump start our economy are instead using them to pay off debts, offer dividends to shareholder, perform mergers and all the same rapacious conduct that got us into our current economic horrorshow. Here we are dealing with a crisis of global proportions and much little like they have in the past decade, bankers have turn this into some magic payday .
Bailout Is a Windfall to Banks, if Not to Borrowers
I mean( inserting rant now) business are collapsing, millions don't have health care, people are losing homes(and everything else), can't send their children to school, buy a cars or start a new business, activities necessary to health of our economy. And against the background of looming economic collapse, a bunch of greedy bankers in an effort to keep the systems going were given OUR TAXPAYER MONEY to help the provide credit and loans. Instead, they are HOARDING money and enriching themselves once again at OUR EXPENSE. Many of these bloated, self interested, self serving banks received these monies with the spirit of helping solve the problem of investor confidence that afflicts us all, but as usual, these ethically challenged, greedy people are busy stripping the copper pipes and fixtures out out of the metaphorical burning house. Henry M Paulson Jr and Bernard Bernanke should be locked in one of the empty vaults they plundered to ensure banks, who contributed in large part to this financial disaster, could go on yet another buying spree of the very institutions they've helped to destroy
To quote the Time article
"At the Palm Beach Ritz-Carlton last November, John C. Hope III, the chairman of Whitney National Bank in New Orleans, stood before a ballroom full of Wall Street analysts and explained how his bank intended to use its $300 million in federal bailout money."
“Make more loans?” Mr. Hope said. “We’re not going to change our business model or our credit policies to accommodate the needs of the public sector as they see it to have us make more loans.”
i.e were not going to stop pillaging and looting because the Treasury gave us a blank check.
It brings to mind the toad and scorpion analogy!
If these people are not going to use the money the way that The TAXPAYER, whom lent intended it to be used, IT SHOULD BE PAID BACK IMMEDIATELY, WITH INTEREST!
Monday, January 5, 2009
"ETHICS -- DESPITE EIGHT SEPARATE PROBES OF MADOFF, SEC NEVER SAW SCANDAL: The Wall Street Journal reported today that although the Securities and Exchange Commission (SEC) and other regulators examined Bernard Madoff's investment firm, they "never came close to uncovering the alleged $50 billion Ponzi scheme" that began in the 1970s. Despite the SEC's failure to uncover the massive fraud, SEC Chairman Christopher Cox insisted in a December interview that he and his agency deserve no blame whatsoever-"
the man kept documents on a seperate floor UNDER LOCK AND KEY!! His accountants, Friehling & Horowitz, are tiny storefront no bigger a Taco Bell!
As reported by THE ASSOCIATED PRESS
"One of the principals, 80-year-old Jerome Horowitz, actually left the firm in 1997, state records show. He now lives in Florida and may be Friehling's father-in-law."
Wonder if the old man lives in Palm Beach
From the Progress Report
ECONOMY -- CHENEY: FINANCIAL CRISIS 'DEVELOPED' ONLY 'OVER THE LAST SIX MONTHS': On CBS' Face The Nation yesterday, host Bob Schieffer asked Vice President Cheney whether Americans were "better off now than we were years ago." "I think we've done some very good things in the course of the last eight years," replied Cheney. After listing off policies that he claimed were accomplishments, such as No Child Left Behind, Cheney acknowledged that the Bush administration was leaving incoming Obama administration officials "with their hands full." But he was unwilling to admit any real culpability for the challenges that President-elect Obama will face, saying only that they are a "new set of problems." Cheney even claimed that the turmoil in the financial sector "developed" only "over the last six months." Cheney is following in the footsteps of right-wingers like Rush Limbaugh, who also claim that the country's economic problems only began recently under Democrats. But the financial sector's problems developed over many years and were pushed forward by the economic policies of the Bush administration. As the Center for American Progress's Tim Westrich has noted, the "root cause of the financial mess is the hands-off approach towards mortgage and finance markets by the Bush administration, and its lack of action when a disaster was imminent." Instead of taking responsibility for the challenges that President-elect Obama will inherit, Cheney simply claimed that "each administration has its challenges."
Thanks Dick! So good to know that much like torture and illegal wire tapping, you'll won't accept responsible for disasters you've unleashed upon the world
Whether it's Abraham Kennard, fleecing Baptists ministers and Non-profits of hard won dollars or Bernard L Madoff scamming Wall Street, Banks and Country clubs out of Millions, the Ponzi Scheme is alive and well in America. One wonders if Charlie had any idea that con that bears his name would still be raking in untold billions of dollars and wreaking untold havoc upon hapless individuals and greedy speculators. Now, by comparison, people like Bernie Madoff make Ponzi look like an amateur, the fact we still label pyramid schemes by one of it's most colorful perpetrators says something about our need to put a face to things. Charles Ponzi, we salute you(just don't manage our investments).
Friday, January 2, 2009
This from the New York Time Article, a Quote from David Jolly
Worldwide, a Bad Year Only Got Worse
The Steel industry is asking for $1 Trillion dollars over the next two years. Only a trillion, hardly anything. CNN reports the purchase of piggy banks are up! Save those pennies, Kids, it's gonna be a rough ride!