Donal: Is Occupy Over?
Ramona's Piece de la Resistance (Including Pics of Obama, Romney, FDR)
dagblog To Give Away Logoed Hairshirt To Most Effective Lamenter Of Left's Ineptitude
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Donal: Is Occupy Over? Ramona's Piece de la Resistance (Including Pics of Obama, Romney, FDR) dagblog To Give Away Logoed Hairshirt To Most Effective Lamenter Of Left's Ineptitude |
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Buffet is swimming in more Bank of America cross currents than an ocean salmon fighting his way up the Rogue River to spawn.
Buffet's announcement today of a $5B investment in preferred shares of BOA is a monumental event in a raucous day on the stock market. Despite the gyrations today, partly on European news and party positioning for Bernanke's speech tomorrow, Buffet's actions should have near term favorable implications for BOA, bank stocks in general, the stock market in general, and as all boats are lifted and affluent consumers step up to the Christmas season, the re-election of Obama--and the pressures on Ben Bernanke.
Bernanke has just had a FATWA issued against him by PIMCO. "No more Quantitative Easing, Ben, on fear of the death of your reputation and perhaps worse if you travel to Texas." As the stock market, as opposed to the bond market, has been trying to intimidate Bernanke all week ahead of his speech tomorrow in Jackson Hole, Wyoming, the little personal relief rally offered Ben by Buffet is probably welcome news. In other words, Ben won't have to do QE3 in order to protect the stock market.
Buffet's investment comes at a time when BOA's future is uncertain by virtue of the attempts to settle grievances from the mortgage loan crisis in the global deal being proffered by 50 state Attorneys General, the Obama administration and Ms. Kyle, the board member of the Fed who supposedly represents the public, along with the New York Fed.
Enter Eric Schneiderman, Attorney General, N.Y. Schneiderman, who was just kicked off the Settlement Committee, has just filed to block a settlement regarding Countrywide of 8.5B, which is separate from the overall settlement, engineered by BNY Mellon. Additionally, Scheiderman has countersued BNY Mellon in what is a far reaching event in and of itself not to mention it possibly undermines the global settlement of which BOA is a part.
In an interview today on Bloomberg radio, Chris Whalen, a name on the Street, argued that Judge Kapnick has a very heavy responsibility. Schneiderman has directly accused an MBS trustee, MBY Mellon, of fraud. What is at stake, according to Whalen, are the securities laws of New York state, which underpin the entire financial industry in N.Y. What's more, Whalen broached the subject of whether the eventual outcome of real litigation against BOA, instead of a sweet heart deal, could bring down the bank as we know it. In other words, bankruptcy and reorganization. I assume all of this has been figured into Buffet's calculations, after all he once bet on the possibility of earth quakes in California.
I still believe in fantasy, particularly one where I swim upstream to breed and leave the planet knowing that wrongs have been righted:
The judge blocks the 8.5 Countrywide settlement.
Schneiderman wins the suit against BNY Mellon
The BOA files bankruptcy.
BOA's morgage operations are sold to Wilbur Ross who receives a loan from the Fed to straighten the mess out and clear the mortgages.
Obama gets re-elected because he continued to receive contributions from people like me instead of the Wall St. types he is romancing with the global settlement on mortgages.
As for Buffet, he breaks even and eats an ice cream cone from DQ.
Perceptive Dagblog readers know the difference between Obama, Romney and Bush:
Obama NYT today: .how President Obama’s thinking about what he once called “a war of necessity” began to radically change less than a year after he took up residency in the White House....The aide told Mr. Obama that he believed military leaders had agreed to the tight schedule to begin withdrawing those troops just 18 months later only because they thought they could persuade an inexperienced president to grant more time if they demanded it. “Well,” Mr. Obama responded that day, “I’m not going to give them more time.”...Mr. Obama concluded in his first year that the Bush-era dream of remaking Afghanistan was a fantasy...
Mitt Romney, Feb. 2012 : LAS VEGAS -- LAS VEGAS -- Republican presidential candidate Mitt Romney on Wednesday night blasted President Obama and his administration for “putting in jeopardy” the nation’s military mission by signaling it hopes to end its combat mission in Afghanistan by the middle of 2013.
Appearing at a campaign rally here shortly after landing in Nevada, Romney said Defense Secretary Leon E. Panetta’s statement Wednesday that U.S. forces would transition from a combat mission in Afghanistan next year “makes absolutely no sense.”....
George W. Bush, from May, 2003: BBC - "We do not know the day of final victory, but we have seen the turning of the tide... Free nations will press on to victory,"
Bush Afghanistan strategy : Gen. Douglas E. Lute, who had spent the last two years of the Bush administration trying to manage the many trade-offs necessary as the Iraq war consumed troop and intelligence resources needed in Afghanistan, arrived with a PowerPoint presentation. The first slide that General Lute threw onto the screen caught the eye of Thomas E. Donilon, later President Obama’s national security adviser. “It said we do not have a strategy in Afghanistan that you can articulate or achieve,” Mr. Donilon recalled three years later. “We had been at war for eight years, and no one could explain the strategy.”
Mitt Romney isn’t very far into the vice presidential selection process. But according to a dedicated band of conspiracy theorists, the pick is all but a lock: Sen. Marco Rubio.
That’s the current thinking among a worldwide collection of activists who are obsessed with the secretive Bilderberg Group, an alternating roster of global power players who loom as large — if not larger — in the online fever swamps of the fringe as the Trilateral Commission or the Council on Foreign Relations.
Read more: http://www.politico.com/news/stories/0512/76518.html#ixzz1vN5egowz
Aristotle and Plato didn’t agree on much, but they were united in identifying wonder as the origin of their profession. As Aristotle said, “It is owing to their wonder that men . . . first began to philosophise.” This idea appeals to scientists, who frequently enlist wonder as a goad to inquiry. “I think everyone in every culture has felt a sense of awe and wonder looking at the sky,” wrote Carl Sagan in 1985, locating in this response the stirrings of a Copernican desire to know who and where we are.
Yet that is not the only direction in which wonder may take us. To Thomas Carlyle, wonder sits at the beginning not of science, but of religion. That is the central tension in forging an alliance of wonder with science: will it make us curious, or induce us to prostrate ourselves in pitiful ignorance? We had better get to grips with this question before we too hastily appropriate wonder to sell science. That is surely what is going on when pictures from the Hubble Space Telescope are (unconsciously?) cropped and coloured to recall the sublime iconography of Romantic landscape painting, or the Human Genome Project is wrapped in biblical rhetoric, or the Large Hadron Collider’s proton-smashing is depicted as “replaying the moment of creation”. The point is not that such things are deceitful or improper, but that if we want to take that path, we should first consider the complex evolution of the relation between science and wonder.
[....]
Pretending that science is performed by people who have undergone a Baconian purification of the emotions only deepens the danger that it will seem alien and odd to outsiders, something carried out by people who do not think as they do. Daston believes that we have inherited a “view of intelligence as neatly detached from emotional, moral and aesthetic impulses, and a related and coeval view of scientific objectivity that brand[s] such impulses as contaminants”. It is easy to understand the historical origins of this attitude: the need to distinguish science from credulous “enthusiasm”, to develop an authoritative voice, to strip away the pretensions of the mystical Renaissance magus who acquired knowledge through personal revelation. We no longer need these defences, however; worse, they become a defensive reflex that exposes scientists to the caricature of the emotionally constipated boffin, hiding within thickets of jargon.
... We’re trying to harness photosynthesis. A key part of photosynthesis is what happens when the sun goes down. Cells convert CO2 into sugar and fat molecules. And they store the fat to burn as energy to get them through the night ... We’re trying to coax our synthetic cells to ... store far more fat than they actually were designed to do, so that we can harness it all as an energy source and use it to create gasoline, diesel fuel, and jet fuel straight from carbon dioxide and sunlight. This would shift the carbon equation so we’re recycling CO2 instead of taking new carbon out of the ground and creating still more CO2. But it has to be done on a massive scale to have any real impact on the amount of CO2 we’re putting into the atmosphere, let alone recovering from the atmosphere.
... We envision facilities the size of San Francisco. And 10 or 15 of those in this country. We need sunlight, seawater, and non-agricultural land, but you need a lot of photons to drive this. You need a lot of surface area of sunlight to do that. It’s a great use for Arizona. Lots of sunlight there.
... If we can’t get some key scientific breakthroughs within the next couple of years, it probably won’t happen in 10 years. So it’s something that’s really dependent on fundamental science. But we’re already able to do things that were once seen as impossible.
... I think the new anti-intellectualism that’s showing up in politics today is a symptom of our not discussing these issues enough. We don’t discuss how our society is now 100 percent dependent on science for its future. We need new scientific breakthroughs—sometimes to overcome the scientific breakthroughs of the past. A hundred years ago oil sounded like a great discovery. You could burn it and run engines off it. I don’t think anybody anticipated that it would actually change the atmosphere of our planet. Because of that we have to come up with new approaches. We just passed the 7 billion population mark. In 12 years, we’re going to reach 8 billion. If we let things run their natural course, we’ll have massive pandemics, people starving. Without science I don’t see much hope for humanity.
Here are a couple of articles, sorry can't give the specific addresses.
Reuters, Aug 5, article by Alison Frankel, "NY AG's BOA filing...."
Rolling Stone, Matt Taibbi, August 24, "Obama goes all out for dirty banker deal"
Yeah I caught Taibbi's and intent to read it a couple more times.
Just one thing has struck me about all this:
How do you tie criminal prosecution with civil proceedings?
Thousands of people have blood on their hands and still have a lot of blood in their hearts! And I am sorry, but I want those thousands prosecuted!
those thousands prosecuted!
I want those billions awarded (by juries...)
Here; here
Better claw back those bonuses;.....crooks .....poison fruit
Sadly, while our clawback program languishes, the sonsabitches are blowing all our money on lamborghini's and high priced pussy. (not that there's anything wrong, etc, etc...)
Frack. So Buffett bought BOA so Obama would not be forced to. I knew I should not have let yesterday's tweets about the possibility of nationalizing BOA get me all atwitter. It would have been a good thing to do but imagine how GOPers would have spun it next year. It would have made Buffet's fundraiser for Obama next month almost completely pointless.
http://money.cnn.com/2011/08/25/news/economy/buffett_obama_fundraiser/
It will probably bring in some big bucks. Wall $treet owes Obama big time for this one.
Thanks. And here is a question. With the leverage Schneiderman and New York state have, could pressure now come to bear on BofA to break into parts? If so at least a big part of the current mortgage portfolio could be isolated. (I'm really going off the deep end here). Having the portfolio isolated, would it facilitate a direct intervention by gummint in a way which would temporarily nationalize the company, then have it sold to investors who would straighten the mess out, clear out mortgages, etc. The Fed could perhaps be involved. Just dreamin'. It's not all the mortgages but it's a large percentage of them.
Sorry so late getting back to you. I am not at all sure I understand your questions. What leverage does Schneiderman and NY state have? Not only is BOA national but also probably easily employs fifty lawyers for every state attorney general. Settlements will be negotiated with maybe a few people thrown to the lions for show.
Now a question for you. Why do you propose that if the company is nationalized and cleaned up that it subsequently be sold back out to private investors. Why not use it as the foundation of a banking sovereign wealth fund, one that can act as a countervailing power to the Fed and its primary dealers. Remember that although the Federal Reserve Bank currently acts as our central bank, it is essentially the bankers' bank, not ours. The arrangement was supposed to be mutually beneficial and has been for the most part. But times change. Like other industries, the financial sector is globalizing and looking at greater opportunities outside the US. A reevaluation of the arrangement seems like a prudent thing to do, no?
Strange things are afoot at the BofA. Interesting move.
Any way it goes ... the venerable institution, DQ, is likely to see an uptick with all the positive free press it's they've been getting of late! :-)
The market has been fascinating today, one of the most complex I can remember. First it was up on the news of BOA. Then down on rumors of Germany being downgraded. Then I think the ramifications of the N.Y. legal actions by Schneiderman are potentially disastrous to banks. Wouldn't it be interesting if the breakup and down sizing of banks is the long term result of all of this?
Oxy, that whole Buffett, BOA deal was a head-scratcher. Thanks so much for your insight here. I'll probably never understand the ins and outs of it all, but it's been fun trying. (If "fun" is the right word.)
Glad there are people like you aboard who give it the attention it so richly deserves. From my simple-minded POV I get it that the more complicated it gets, the happier the scoundrels are. They want those waters muddied. You and a few smarties know how to clear it up. Thanks.
Thanks. You are too kind. While I would never try to pass myself off as someone who's learned either in law or economics, it is a challenge to try and put the many factors surrounding the BofA investment into a matrix of some kind.
What I find really interesting is the situation Obama and Geithner are in . It is as if they are staring down the same gun barrel of a financial industry in potential disarray as they were three years ago. And they will probably do exactly the same thing they did before, give the financial industry a pass, for the same reasons.
Ms. Kyle's apparent collusion here with Geithner is along the lines of quicker resolution of foreclosures which are now hurting people everywhere. But it seems as if the powers have always taken the position of saving the people by saving the system but in the process have weakened our entire sense of justice in this country by capitulating to the banks.
Not Anonymous. Sorry, Ramona, got bumped off the site.
Everything on our side of the pond seems to hinge on whatever's going on inside BOA right now ... and keeping a lid on it, apparently. I mentioned yesterday the feeling this is some warped parody of the Tabloid hacking scandal with BoA serving the role of Rebecca Brooks - protected at all costs because they keep the scandal one step farther removed from granddaddy Murdoch. Miller (Iowa) dismissing Schneiderman (New York) from the settlement negotiations is pretty stunning. Turns out Miller received 88 times more contributions from the financial sector between last October and the election than he had for the entire previous decade.
I wonder what the Schneiderman/Miller moves do for the resolve of other most-interested states like DE, CA, NV, etc. who have also been balking. What it seems they are trying to do with the proposed settlement - and the underlying reasons they appear to be doing it - are all pretty messed up. I sure wouldn't want to be the AG in a place seriously suffering from the foreclosure crisis trying to get reelected (while voters face the obvious wave of seizures this deal is going to immediately create) after signing on to blanket immunity. Man I hope they've finally tried to cross a bridge too far.
Have I mentioned, I really hate Geithner?
Mene mene tekel upharsin
The lies and deception are catching up.
Not enough fingers to plug the dike?
One of the significant things in all of this is that the action is in New York state, away from the Congress, away from the Obama administration. Of course there is always the Supreme Court. But there is so much residual anger against the banksters that a resersal by SCOTUS might just be the start of the revolution. I guess I'm getting ahead of myself.
No your not getting ahead of yourself,
The bankers knew they had to get theirs first, they know the revolution is coming.
Were playing catch-up.
The Sea of mankind is agitated.
This rising tide isn't lifting the ships; its about to swamp them.
Obama protect us? Whose US
You hate Geithner? You mean because he is an insouciant, insufferable, stove-up financial engineer who was put into a position requiring integrity, entrepreneurship, a fighting spirit for the man on the street and a fire in his belly to rigtht the wrongs of the fraudulent banking industry? That Geither? No, I don't think you mentioned it.
Yes, that's the one. Well, I do.
To quote Pat Garrett (that no good, low down, back shootin', friend betrayin' skunk) "It's the baby faced ones ya gotta watch out for..."
Yeah, what is that downward side glance with the uplifted eyes? My dog does that when she's just peed on the guest room bed.
the uplifted eyes?
And the blinking...lotsa blinking.
Banker flirting.
I rather incline towards the judgement that it represents a "tell", viz, banker lying.
Pretty sure that *is* banker flirting.
You'd better watch your back, you know they are?
Not Gerber ............it's Giethner.
It really spelled out Obama's *loyalties when he gave Geithner a pass on the tax fail, but made Van Jones **walk the plank on a humbug.
*Bevis: Hey, Butthead, you said Obama and loyalty in the same sentence, heh-heh.
**Piratese for "throw under the bus .".
They just don't get it
I was over at TPM earlier, the Obama-apologist were coming on strong.
They just don't see what you, and I see
They just don't get it. and for that reason were about to get it again.
You raised the issue that the global settlement would create a wave of seizures the deal would create. If you happen to see this, I'd be interested in your further take on it. Does it relate to the chain of custody arguments which are now providing consumers with a method of fighting foreclosures.
contributions from people like me instead of the Wall St. types he is romancing with the global settlement on mortgages.
You weren't kidding when you said "fantasy", were you.
Did I ever tell you about my plans for Angelina Jolie and me....?
Where d'ya plan on stashing all them kids?
Thanks to a quirk in the social security program, I can adopt them and Prez will pay Angie half a million dollars,(maybe more) to help her get over Brad...(uinfortunately, Angie does not need half a million...perhaps this plan needs a third world venue...)
I thought you liked those Northern clime stand-offish blondes like January Jones.
Yeah, but Angelina has the cheekbones and the crazy pussy (stomp-down psycho pussy...)
That woman done made you loco.
Not for the first time, not for the last...
Okay, this is how I see it.
All the big guys were sitting in the Oval Office with THE big guy and somebody spoke up:
We need a buffer between us and the banks.
So Biden piped up:
Okay, I will get him on the phone right now!
And that was that!
You see Joe had not recently replenished his hearing aid.
Well, actually, Obamer met with Buffer up in Marther's Vineyerd this week. I don't suppose they discussed Buffer's impending deal and whether Obamer would knee cap Eric Schneiderman.
hahahahaha
Well which side exactly is your Buffet buttered on?
The side where Buffet forks over the dough.
The bankers were clamoring for another course at the table, someone suggested Obama should set it up as a buffet, that way the bankers could take whatever they wanted.
They didn't much care for claw-backs.
Let the people eat them along with the cake.
I am no conspiracy theorist! This came to me directly in a dream.
In the meeting with Obamer, Buffer wanted to clear up some things about a wind down by FSOCK in the slim chance that the legislation in New York would force BOA's hand. After all, nothing has ever been wound down by FSOCK, how does it work. Sec. Treas holds the cards.
Depending on the dissolution philosophy, would the bad debt all be loaded into one entity, or two, where a government/private cum Federal Reserve mish mash could deal with it?
Or would the Sec. Treas. say, hell, just put it into bankruptcy.
So, that covers Obamer, Bueffer, and the blinking swallower of words, Geithner. Just don't know what happens to Marther Vineyerd in this scenario.
I suspect that the biggest factor at work here was that Buffett could get himself high income preferred stock and a cheap option on 7% of the entire company -- a no lose proposition even if the market is correct and BofA's assets aren't worth as much as management says. Moynihan and his team saw this as a way to save their jobs and somehow, at least yesterday, BofA's other shareholders didn't quite realize the extent to which Moynihan and co. let the Oracle dilute them.
Right. As usual he cut himself a very good deal. Not to mention that if this action is able to lift bank stocks in general over time, he is also making money on any remaining warrants he might have in other banks.
For the record I'd like to define some of the Court actions.
In 2010 a group of investors in 3 MBS's stemming from Countrywide sent the Trustee, BNYM a letter demanding they sue Countrywide (BOA) to take back mortgages. Stonewalled by BNYM, the group, under the title, Walnut Place, LLC, filed an action in Feb '11 with the Supreme Court, NYS.This action was assigned to Judge Kapnick.
In the meantime BNYM reached a settlement with 22 investors in 530 MBS's, in secret and without informing Walnut Place, and filed it with the Court. NYBM specifically asked that Judge Kapnick to be assigned, for the reason that "...if approved, the Settlement (with BOA/Countrywide) will resolve the claims raised by the plaintiffs in Walnut Place, LLC"
As a separate action, on Aug 5 Schneiderman filed his motion to intervene. That motion included counterclaims against BNYM :
1. Breach of Fiduciary duty in negotiating the $8.5 B settlement.
2. Violation of Executive Law
3. Violation of General Business Law(under the Martin Act)
Schneiderman's motion also says the AG has potential claims against Countrywide and BNYM.
And in what looks like a separate action, around Aug 5, Walnut Place, LLC filed a motion to intervene in the BNYM Settlement.
Separately, Schneiderman was kicked off the global settlement(not the same as the BOA/BNYM $8.5B deal) being engineered by the 50 Attorney's general, etc. As long as New York is a hold out on the global settlement of 50 other states, Trustees signing on to that agreement would still have to face actions by New York State, and thus are less inclined to act now.
Breaking news on BofA $8.5B settlement:
The entity known as Walnut Place, LLC has just filed to move the venue of the $8.5 B settlement from New York State to the U.S. District Court in Manhatten.
The filing claims that the size of the case qualifies as a "mass" action, giving federal courts jurisdiction.
BofA wisely chose Article 77 in order to provide a mechanism to make the Settlement binding upon all 530 trusts. Class action in Federal Court would allow parties to opt out of the settlement.
BofA counsel calls it a delaying tactic.
Apparently there is not Article 77 precedent for cases of the magnitude of the BofA Settlement.
In the very least, the filing today may throw a monkey wrench into Judge Kapnick's schedule of an August 30 deadline for additional bond holders to intervene in the Settlement. In other words, opposing bond holders may have more time to get organized to file motions. Apparently the Settlement was done without contact with other than the 22 largest parties, and those opposed have been slow to act because their expectations for put backs were low.
Curiouser and curiouser.
Ordinarily, the response would be "Gee, wonder what they're hiding." But in this case it seems there is already a pretty good idea of what they are hiding and the real question is if anyone will be able to stop them from flushing it all down the regulatory memory hole in a massive whoosh of graft and misdirection.
Could it be; the Obama administration is not a defender, of truth and righteousness.
"everything hidden, will be exposed"
Everyday that passes, I am less inclined to give this government, my full faith and confidence.
What right do they have to say, they rule by the consent of the governed
When they lie, they breach that consent.
Oh, that one's easy. The same folks who own them own all the TV stations. Turns out, a while back they sued in court, and yes ... anyone put on air or in print has the total right to lie (and be fired for refusing to lie). Sunrise in America or some shit.
Wait a second. I read that wrong. (Got "Walnut Place" confused with "Timberwolf" or somesuch GS derivatives deal in my head). I suppose the comment stands in the more general sense ... ;-)
Not sure what to think about this move (and the last couple days in general) ... could be hawks looking for a kill, could be vultures looking to pick over bones ... some combination? ... folks chasing their tails? With all the action, it certainly seems flocks are increasingly starting to gather expecting some sort of feast.
Some folks are indicating Buffett has started treating the TBTF banks essentially as Treasuries; betting on another bailout. Which would indicate the powers that be have pretty much accepted as given this is going to trainwreck. Doesn't bode well for the hope of breaking up the banks, really.
It's a mind twister.
By the way, Walnut Place is mentioned up a couple of posts. It's a smaller entity which filed an action against BNYM before the bank went behind their backs with the larger Settlement.
But this investment still seems un-characteristc of Buffet. This is not 2008, there will not be that kind of bailout. FSOCK exists to prevent the bailouts. I subscribe to the view that Buffet is betting against Schneiderman. Probably someone has the NY Judge in their pocket and that's why Buffet forged ahead. The woman Kyle, Fed member, has a big stake in the overall settlement with the 50 states.
The bailout might be in the form of BOA just spinning off Countrywide (and do what? I don't know)
In the final analysis, Buffet is senior to the common stock holders as well as the bond holders of BOA. So in a break up of the units I assume he would be the last person standing on this pile of companies. Now that would really make him salivate.