Daily Archives: September 16, 2015

State NY pension fund to vote for BofA’s Moynihan to split roles

A third large state pension fund is lining up against Bank of America boss Brian Moynihan, The Post has learned.

New York’s $184.5 billion Common Retirement Fund — the third-largest such fund in the country — will vote to split Moynihan’s dual role as chief executive officer and chairman, sources said.

The vote is scheduled for Sept. 22, and the outcome is expected to be very close.

Read on.

14 Year Old Texan, Ahmed Mohammed, Arrested For Home-Made Clock Because “It Looks Like A Bomb”

America is a deeply fallen nation..

As Liberty Blitzkrieg’s Mike Krieger details,

Police detained a 14-year-old Muslim boy after a teacher at his North Texas high school decided that a homemade clock he proudly brought to class looked like a bomb, according to school and police officials.


The family of Ahmed Mohamed said the boy was suspended for three days from MacArthur High School in the Dallas suburb of Irving after taking the clock to class on Monday.


The boy makes his own radios, repairs his own go-kart and on Sunday spent about 20 minutes before bedtime assembling a clock using a circuit board, power supply wired to a digital display and other items, The Dallas Morning News reported.


– From the ABC News article: Muslim Boy, 14, Detained for Making Clock Mistaken for Bomb

In his own words… By the way, Ahmed was not allow to call his parents during the police integration…What happened to read his miranda rights?:


Senate unanimously passes bill to cap Fannie, Freddie CEO pay

A congressional move to limit the salaries for the CEOs ofFannie Mae and Freddie Mac moved a step closer Tuesday night when the U.S. Senate unanimously passed a version of the House’s Equity in Government Compensation Act of 2015.

The Senate version of the bill is similar to the measure introduced by U.S. Representative Ed Royce, R- Calif.

U.S. Sen. David Vitter, R-La., Sen. Elizabeth Warren, D-Mass., are coauthors of the Senate version of the bill.

“Near universal support in both the House and Senate for capping GSE CEO pay is proof positive that multi-million dollar raises at taxpayer bailed-out and backed organizations are unconscionable ” said Rep. Royce. “I applaud Senator Vitter for his quick work in getting this bill through the Senate and will work to replicate his success in the House.”

Read on.

RBS in $129.6 million mortgage securities deal with U.S. regulator

Royal Bank of Scotland Group PLC has agreed to pay $129.6 million to resolve claims by a U.S. regulator that it sold toxic mortgage-backed securities to now-failed credit unions, according to a court filing on Tuesday.

The National Credit Union Administration filed a federal lawsuit in New York in 2013 on behalf of two defunct credit unions, Southwest Corporate and Members United Corporate.

A spokesman for RBS did not immediately respond to a request for comment outside regular business hours.

Read on.

Seven year anniversary of Lehman Brothers’ collapse will haunt Presidential candidates Kasich and Bush

MSNBC Rachel Maddow website:

As we discussed a few months ago, Ohio Gov. John Kasich (R), after he left Congress, went to work at Lehman Brothers. In fact, he was there in 2007 and 2008 – an era that proved to be quite eventful.
Asked in June whether he has any regrets from his tenure at Lehman, the Republican presidential candidate responded as if the question were ridiculous. “Are you kidding? Regrets? I thought it was a fantastic time,” Kasich said.
Remember, he was a Lehman executive when the firm made the biggest bankruptcy filing in the history of the United States.
Of course, Kasich isn’t alone. I’m reminded of this recent Wall Street Journal piece:
[Former Gov. Jeb Bush] signed on with Lehman after leaving the Florida governor’s mansion, making it clear he wanted work as a hands-on investment banker rather than hold a ceremonial role typically given ex-politicians. […]
For more than seven years, nearly the length of his two gubernatorial terms, Mr. Bush, a candidate for the Republican presidential nomination, spent as much as half of his working hours advising Lehman and later Barclays, which bought the collapsed investment bank’s U.S. business. He wasn’t an employee of the firms, said people familiar with the matter, but was paid to attend meetings, dinners and conferences where he spoke to clients and bank executives on such subjects as health care, education, immigration and energy – matters he has started taking up this year with voters.
Mr. Bush earned about $1.3 million a year at Lehman and some $2 million from Barclays, his campaign said.
Last December, when Mitt Romney was weighing another White House campaign, he privately predictedthat Bush “would run into problems because of his business dealings, his work with the investment banks Lehman Brothers and Barclays, and his private equity investments.”

Bankers Will Be Jailed In The Next Financial Crisis

bankster get out of free card

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

Jesus College, Cambridge hosted, once more, the world’s leading Symposium on Economic Crime, and over 500 distinguished speakers and panelists drawn from the widest possible international fora, gathered to make presentations to the many hundreds of delegates and attendees.

What became very quickly clear this year was the general sense of deep disgust and repugnance that was demonstrated towards the global banking industry.

I can say with some degree of certainty now that a very large number of academics, law enforcement agencies, and financial compliance consultants are now joined, as one, in their total condemnation of significant elements of the global banking sector for their organised criminal activities.

Many banks are widely identified now as nothing more than enterprise criminal organisations, who engage in widespread criminal practice and dishonest conduct as a matter of course and deliberate commercial policy.

– From the excellent article: The Banking Criminals Exposed

My prediction is that bankers will be jailed in the next economic/financial crisis. Lots and lots of bankers.

It may seem to many that those working within this profession will remain above the law indefinitely in light of the lack of any accountability whatsoever since the collapse of 2008. It may seem that way, but extrapolating this trend into the future is to ignore a monumentally changed political environment around the world. From the ascendancy of Donald Trump and Bernie Sanders here in the U.S., to Jeremy Corbyn becoming Labour leader in the UK, big changes are certainly afoot.

GE to move U.S. jobs overseas in fight over export credits

Flexing its muscles amid a bitter congressional fight over the U.S. Export-Import Bank, General Electric Co on Tuesday revealed plans to shift up to 500 U.S. manufacturing jobs to Europe and China because it can no longer access EXIM financing.

The largest U.S. industrial conglomerate said it will move production of some heavy duty gas turbines and 400 jobs to Belfort, France, in exchange for a credit line from France’s COFACE export agency. The deal will support GE bids for international power projects.

Read on.

Presidential candidate Jeb Bush launches tax plan that raises tax burden for homeowners

Would cap mortgage interest deduction, abolish deduction for state, local taxes

Republican presidential candidate Jeb Bush is advancing a tax plan that would put a cap on the mortgage interest deduction and completely eliminate the deduction for state and local real estate taxes, effectively raising taxes on tens of millions of homeowners.

The mortgage interest deduction, along with deductions for state and local real estate taxes, are considered by many to be a third rail in politics. This deduction saved homeowners about $70 billion in taxes in 2013, according to the Joint Committee on Taxation.

Bush’s plan would limit itemized deductions sharply, capping them at 2% of adjusted gross income, and that would include the mortgage interest deduction.

Bush would also eliminate the deduction for state and local taxes entirely.

These measures would effectively raise taxes on tens of millions of homeowners nationwide.

Of the $54 billion a year the overall cap would raise in revenues under the Bush tax plan, about $46 billion comes out of the mortgage interest deduction, analysts say.

The real estate industry, from lenders to agents and most every segment between, have vehemently opposed any reduction, limit or cap on the mortgage interest deduction because of its potential negative effect on homeownership. Most trades including the National Association of Realtors are on record strongly opposing any cut.

Read on.