On a side note: Lehman Brothers was turned down by then NY Fed President Tim Geithner to be a bank holding institution yet Morgan Stanley and Goldman Sachs were not turned down. If Lehman was not turned down, like Morgan Stanley and Goldman Sachs, Lehman would have received a bailout…
The collapse of Lehman Brothers in a record-setting bankruptcy could have been avoided, but the political will was lacking at the Federal Reserve to rescue the troubled investment bank, according to newly published research.
“Fed officials have not been transparent about the Lehman crisis. Their explanations for their actions rest on flawed economic and legal reasoning and dubious factual claims,” says Laurence M. Ball, chairman of the economics department at Johns Hopkins University and author of the report.
Lehman’s $639 billion bankruptcy filing occurred as a bubble in the U.S. housing market contracted from a 2006 peak. The U.S. economy fell into the deepest recession since the Great Depression in the months after the bankruptcy as unemployment jumped to a 30-year high of 10 percent.
Ball’s research concludes that the Fed did have the legal authority to bail out Lehman, whose collateral was deeply impaired. But Lehman’s crisis occurred amid a backlash against government bailouts of Bear Stearns, Fannie Mae, Freddie Mac and AIG.
Read more: Researcher: Fed Could Have Saved Lehman Brothers From Bankruptcy
And that is why the Volcker Rule in Dodd-Frank bill must be enforced!!!
Credit deemed ‘special mention’ or worse said to have risen 13%
WASHINGTON—Risky lending by Wall Street banks has risen sharply despite some improvements in underwriting from years past, warned U.S. regulators on Friday.
Credit deemed “special mention” and worse jumped 13% based on exams for the last 12 months ended in April from the previous 12-month period to $421.4 billion, according to the annual review of bank’s major loan portfolios conducted by the Federal Reserve, Office of the Comptroller of the Currency and Federal Deposit Insurance Corp.
The review said the greatest levels of risk remain in “leveraged loans” that are extended to highly indebted companies, such as those bought by private-equity firms, as well as oil and gas portfolios.
Oh come on!.. The NFL? Please… Memo to Trump: Debate Hillary! The voters need to hear your details on the issues that matter in this country in the three scheduled debates.
GOP nominee Donald Trump said in an interview on Saturday with ABC News’ George Stephanopoulos that he got a letter from the National Football League saying they were unhappy that upcoming presidential debates conflicted with scheduled game broadcasts — but the NFL has denied sending Trump any such letter.
Trump was responding to Stephanopoulos’ question on Saturday about whether he’d accept the three-debate schedule proposed by the Commission on Presidential Debates.
“Well, I’ll tell you what I don’t like,” Trump responded. “It’s against two NFL games. I got a letter from the NFL saying, ‘this is ridiculous, why are the debates against — because the NFL doesn’t want to go against the debates because the debates are gonna be pretty massive, from what I understand, OK. And I don’t think we should be against the NFL. I don’t know how the dates were picked.”
Stephanopoulos asked if he were against the dates picked.
“Hillary Clinton wants to be against the NFL,” Trump said. “Maybe like she did with Bernie Sanders where they were on Saturday nights when nobody’s home.”
A spokesman for the NFL told CNN’s Brian Stelter that the organization had not sent a letter to Trump.
“While we’d obviously wish the debate commission could find another night, we did not send a letter to Trump,” Stelter quoted the spokesman saying.
Read the words up and down a few times. And it certainly come down to the individual voters’ choice on what view that he or she prefer to become the Commander-in-Chief.To see more of Heller’s work, visit HellerToon.com.
BELLINGHAM — Susan Morisette pays $350 a month to rent a room for her and her son in a Bellingham trailer. To say the place is a mess is to be extremely generous. There are holes in the ceiling, the floor is collapsing. For Susan, however, it was this, or life on the street.
“There aren’t a lot of choices around here,” she says. “Housing is expensive.”
Morisette is disabled and awaiting a spinal surgery. She takes care of her 28-year-old Autistic son. They moved into the trailer this spring. Things were going okay until she came home to find an eviction notice on the front door.
“We had no clue,” says Morisette.
She says the man who owns the trailer is so far behind in his payments at the Bakerview Mobile Home Park that he’s being thrown out. The eviction order says everybody living there must go.
“This isn’t fair,” says Morisette. “We’ve paid our rent. We have nothing to do with this.”
The power is about to be shut off. The owner is nowhere to be found, and she has nowhere to go.