http://www.bloomberg.com/news/2011-1...ae-rescue.html
Slogging through 21,000 FOIA documents to put this together ... Bloomberg is going to get a Pulitzer for this. Nothing but more and more coming out over the next weeks. It's the Watergate of this time. OWS has been demanding prosecution, now every citizen should.
Addition: at least some are standing up against those who crashed our economy
http://www.huffingtonpost.com/2011/1...n_1117140.html
Quote:
Citigroup Settlement Tossed: Federal Judge tells SEC to get it together
In a potentially precedent setting ruling on Monday, a federal judge in New York tossed out a settlement between the Securities and Exchange Commission and Citigroup, effectively telling the SEC -- which is responsible for protecting investors and maintaining fair, orderly markets -- that it isn't going far enough in holding financial institutions accountable for their wrongdoings.
The SEC accused Citigroup of selling investors mortgage-backed bonds that the bank knew would lose value. Citi netted roughly $160 million in profits from the sale of these bonds while investors lost more than $700 million. Under the proposed settlement with the SEC, the bank would have had to pay $285 million in penalties and fees, but would not have had to admit to any wrongdoing, according to the court decision.
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More:
Quote:
Bloomberg is reporting this morning that Henry Paulson, Bush's Treasury Secretary, gave advance notice of bailout plans for Fannie Mae and Freddie Mac to a group of powerful hedge fund operators.
One fund manager at the meeting was so shocked that he went to his lawyer afterwards. His lawyer advised him to stop all trading immediately on Fannie/Freddie shares.
Here are some relevant paragraphs from the article:
Quote:
Around the conference room table were a dozen or so hedge-fund managers and other Wall Street executives -- at least five of them alumni of Goldman Sachs Group Inc. (GS), of which Paulson was chief executive officer and chairman from 1999 to 2006. In addition to Eton Park founder Eric Mindich, they included such boldface names as Lone Pine Capital LLC founder Stephen Mandel, Dinakar Singh of TPG-Axon Capital Management LP and Daniel Och of Och-Ziff Capital Management Group LLC.
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After a perfunctory discussion of the market turmoil, the fund manager says, the discussion turned to Fannie Mae and Freddie Mac. Paulson said he had erred by not punishing Bear Stearns shareholders more severely. The secretary, then 62, went on to describe a possible scenario for placing Fannie and Freddie into “conservatorship” -- a government seizure designed to allow the firms to continue operations despite heavy losses in the mortgage markets
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The fund manager says he was shocked that Paulson would furnish such specific information -- to his mind, leaving little doubt that the Treasury Department would carry out the plan. The managers attending the meeting were thus given a choice opportunity to trade on that information.
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Note how this info was given to Paulson's friends and Goldman alumni -- not to fund managers at Fidelity and Vanguard, who manage the 401(k) plans of working people.
http://www.dailykos.com/story/2011/1...ts?via=siderec
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__________________
"Have the clean racing people run any ads explaining that giving a horse a Starbucks and a chocolate poppyseed muffin for breakfast would likely result in a ten year suspension for the trainer?" - Dr. Andrew Roberts
Last edited by Riot : 11-29-2011 at 11:52 AM.
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