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Top contributors to Obama and McCain are big banks

Top contributors to Obama and McCain are big banks

 



WaMu: The Biggest Bank Collapse In U.S. History

WaMu: The Biggest Bank Collapse In U.S. History

TOP News
September 26, 2008

In what is being termed as the biggest bank collapse in US history, J.P.Morgan Chase & Co. will acquire massive branch network and troubled assets from Washington Mutual Inc. for $1.9 billion, as per a deal arranged by federal regulators. Under the deal – the latest stunning development in the ongoing credit crisis – J P Morgan Chase will acquire all the banking operations of Washington Mutual, including $307 billion in assets and $188 billion in deposits.

Washington Mutual had been one of the most hard-hit banks during the financial crisis after it bet big, like many of its competitors, on the strength of the housing market – only to see its fortunes sour as housing prices fell. Many analysts were speculating that the endgame for the embattled savings and loan was imminent, particularly after ratings agency downgrades this week, and a freefall in the company’s stock.

As a result of the Washington Mutual acquisition, the New York City-based J P Morgan Chase – after its mid-March acquisition of investment bank, Bear Stearns – will now boast some 5,400 branches in 23 states. “We think it is a great thing for our company,” said Jamie Dimon, J P Morgan Chase Chairman and CEO, in a conference call with investors late Thursday night.

Federal regulators who helped in finalizing the deal said the transition for Washington Mutual customers would be “seamless.” In a statement, FDIC Chairman, Sheila Bair, said: “There will be no interruption in services and bank customers should expect business as usual come Friday morning.”

The acquisition might prompt criticism from J P Morgan Chase rivals about preferential treatment by the government. For instance, no government assistance was extended to Bank of America Corp. in its recently announced purchase of Merrill Lynch. However, in the case of Washington Mutual acquisition, there were presumably other bidders who, in comparison to J P Morgan Chase, offered better deal for the deposits and branches.

The fall of Washington Mutual is the latest turn in a dizzying fortnight that has seen the bankruptcy of Lehman Brothers, the acquisition of Merrill Lynch by Bank of America (BAC, Fortune 500) and the near collapse of insurance giant AIG (AIG, Fortune 500). In fact, Washington Mutual has set a ‘record’ of sorts – it is the 13th bank to fail so far this year, and earns the title of the country’s ‘largest bank failure’ by assets on record, surpassing Continental Illinois’ $40 billion in assets when it failed in May of 1984.

Washington Mutual Is The 13th Bank To Fall This Year
http://www.fdic.gov/bank/individual/failed/banklist.html

 



Paulson’s former firm to be among largest beneficiaries of bailout

Paulson’s former firm to be among largest beneficiaries of bailout

John Bryne
Raw Story
September 23, 2008

It certainly pays to be Treasury Secretary if your former firm is a brokerage house, a new study says.

Goldman Sachs Group — formerly run by Treasury Secretary Henry Paulson, and Morgan Stanley, stand to be among the biggest beneficiaries of a $700 billion US bailout.

“Its benefits, in its current form, will be largely limited to investment banks and other banks that have aggressively written down the value of their holdings and have already recognized the attendant capital impairment,” Jeffrey Rosenberg, Bank of America’s head of credit strategy research, wrote in a report obtained by Bloomberg News yesterday.

Paulson was the head of Goldman Sach’s investment banking division from 1990 to 1994. He later became chairman and chief executive officer of Goldman, and left his post to join the Bush Administration.

According to the study, the bailout benefits Paulson’s former firm more because banks haven’t had to write down as many troubled mortage assets under accounting rules. This means that participating in the program would cause them to actually lose capital, as opposed to investment banks, which stand to gain.

Paulson $700 billion program is designed to remove “bad assets” from the US financial markets to prevent credit for businesses from drying up, which would send the economy into a further tailspin. Many businesses rely on credit to fund their daily operations.

Lawmakers are debating the plan today.

“While Goldman and Morgan Stanley, both based in New York, were yesterday granted permission to transform themselves into bank holding companies, the companies so far have operated mostly under investment-bank accounting rules, logging almost $21 billion of asset writedowns and credit losses,” Bloomberg News notes.

Goldman made sizable profits in 2007 from the subprime mortgage sector. It, along with Morgan Stanley, has fared better than investment houses Merrill Lynch, Lehman Brothers and Bear Stearns, because it has held a more conservative capital base.

Paulson has admirers: during his Goldman tenure the firm donated 680,000 acres of land in Chile, and he has personally given away $100 million of his fortune to charitable groups.

According to estimates conducted by Open Secrets, Paulson is the richest cabinet member of the Bush Administration.

Conflict Of Interest? Report Says Goldman Sachs ‘Among Biggest Beneficiaries’ Of Paulson’s Bailout
http://thinkprogress.org/2008/09/22/paulson-goldman-bailout/

 



Lehman Brothers Bank Files For Bankruptcy

Lehman Brothers Bank Files For Bankruptcy

AP
September 15, 2008

Lehman Brothers, a 158-year-old investment bank choked by the credit crisis and falling real estate values, filed for Chapter 11 protection in the biggest bankruptcy filing ever on Monday and said it was trying to sell off key business units.

The filing was made in the U.S. Bankruptcy Court in the Southern District of New York by Lehman Brothers Holdings Inc., the bank’s holding company. The case had been assigned to Judge James M. Peck.

Lehman fell under the weight of $60 billion in soured real estate holdings, and the credit market’s dislocation ultimately forced it to seek court protection. The credit crisis has caused global banks to write down more than $300 billion in asset value since last year, and caused the shotgun sales of Merrill Lynch & Co. and Bear Stearns Cos.

Lehman’s bankruptcy filing marks the end of a Wall Street firm that started the U.S. cotton trade before the Civil War and financed the railroads that built a nation.

Read Full Article Here

FDIC Monitoring Lehman Impact
http://www.reuters.com/article/bondsNews/idUSWAT01005420080915

 



U.S. Taxpayers to Bailout AIG With $85 Billion

U.S. Taxpayers to Bailout AIG With $85 Billion

AP
September 17, 2008

Another day, but not just another bailout. This one’s a stunning government takeover.

In the most far-reaching intervention into the private sector ever for the Federal Reserve, the government stepped in Tuesday to rescue American International Group Inc. with an $85 billion injection of taxpayer money. Under the deal, the government will get a 79.9 percent stake in one of the world’s largest insurers and the right to remove senior management.

AIG’s chief executive, Robert Willumstad, is expected to be replaced by Edward Liddy, the former head of insurer Allstate Corp., according to The Wall Street Journal, citing a person it did not name. Willumstad had been at the helm of AIG since June.

Read Full Article Here

Ron Paul on AIG bailout…Bad Monetary Policy

http://www.youtube.com/watch?v=QpY6JvG7w6M

Stocks tumble after government bailout of AIG
http://news.yahoo.com/s/ap/20080917/ap_on_bi_st_ma_re/wall_street

AIG’s Collapse Would Have Impact Around the Globe
http://www.bloomberg.com/apps/news..&sid=adkrRxBFo5nA&refer=home

 



Gold Drops $790 – U.S. Mint Suspends Gold Eagles

Gold Drops Below $790

Bloomberg
August 14, 2008

Buyers of wedding bands and makers of fillings, take heart: Metals prices fell sharply, following in oil’s footsteps, and as the dollar rallied. Gold lost 8.4% of its value this week, with August gold ending at $786 a troy ounce, below the psychologically significant $800 level. Today alone, the shiny yellow metal lost 2.7%. Gold is down 22% from its record close of $1003.20, reached on March 18; it hit that mark around the time Bear Stearns went belly up, which sent freaked-out investors into hard assets. Silver futures took the gold medal this week, though, in the weekly percentage decline event – August silver fell 16% this week to end at $12.8010 a troy ounce. Almost 10% of that drop came today. A silver lining: Copper fell only 1.7% this week.

 

U.S. Mint Suspends Gold Eagles

Numis Master
August 14, 2008

The Gold Anti-Trust Action Committee is reporting at their website that The U.S. Mint has suspended sales of American Eagle one ounce gold coins and is refusing orders from dealers.

GATA reports that two coin and bullion dealers have confirmed the suspension by the Mint. This news was initially reported by American Precious Metals Exchange.

Chris Powell, Secretary/Treasurer of GATA, says in a website posting, “The suspension is overwhelming evidence that the futures contract price of gold on the commodities exchanges is substantially below the physical market price and that, indeed, the commodities exchanges are being used as GATA long has maintained – as part of a massive scheme of manipulation of the precious metals, currency, and bond markets.”

As of today, fractional gold (1/10 oz, ¼ oz and ½ oz Gold American Eagles) remain unaffected by the shortage. The mint web site is currently not reporting any suspensions of sales and one ounce uncirculated coins are still for sale at the web site.

 



Taxpayers Will Pay $800 BILLION For Failed Mortgage Lenders

Taxpayers Will Pay $800 BILLION For Failed Mortgage Lenders
House & Senate passes housing bailout bill H.R. 3221 (The American Housing Rescue & Foreclosure Prevention Act) by an overwhelming 272-152 vote, Bush will sign soon.

Youtube
July 24, 2008

Ron Paul talks about the bailout out of the housing industry and how it really just destroys the dollar and adds enormously to the debt.

Also, slipped into the bill, was the stipulation that ALL credit card transactions must now be reported to the IRS.

http://www.youtube.com/watch?v=Wy6SlUpbnIU

Details of today’s housing bill by Dr. Ron Paul:

-$2.5B line of credit to the Treasury (Fannie & Freddie – ‘F & F’) is now “open-ended”

  • UNLIMITED – Treasury now allowed to buy all ‘F & F’ housing securities
  • Congress no longer involved in appropriating funds (Treasury now does)

-National Debt Ceiling Moved up $800 BILLION (buried in the bill)

Treasury Bills being exchanged for unwanted ‘F & F’ securities

  • This is the asset which “backs up our currency”
  • Value of these assets are depreciating
  • Treasuries have replaced gold and silver to back US Dollar

– Solution breeds inflation

  • Places pressure on the US Dollar

-Mortgage industry workers “will now have to be fingerprinted.

All credit card transactions will now be reported to the IRS.

 

Housing bailout bill – another $800 billion gift from the taxpayer to Wall Street

http://youtube.com/watch?v=TeWJZiJGc2s

Related News:

**RED ALERT** RAPE BY CONGRESS IMMINENT
http://market-ticker.denninger.net/archive..GRESS-IMMINENT.html

Investors worldwide are betting more than $1 trillion on a collapse in American stock prices
http://www.wakeupfromyourslumber.com/node/7529

Faber: Fannie, Freddie Should Not Get Aid
http://www.bloomberg.com/apps/n..&sid=a_L_tms03WSI&refer=home

Senate Passes Housing Bill
http://www.axcessnews.com/index.php/articles/show/id/16490

House OKs Fannie Freddie Bailout
http://news.yahoo.com/s/ap/200..Aujs0nZJn4G9TEm4v_o7vh.MwfIE

woman commits suicide as home foreclosed
http://www.norwichbulletin.com/new..suicide-as-home-foreclosed

Fannie and Freddie Own A Record $6.9 Billion Foreclosed Homes
http://www.economicpolicyjournal.co..d-freddie-own-record-69.html

U.S. Foreclosures Double
http://www.bloomberg.com/apps/news..87&sid=aomtw8.Pro2E&refer=home

IMF: U.S. Housing Overvalued By 20%
http://www.reuters.com/article/domesticNews/idUSN2542244220080726

California foreclosures up 261% from ‘07 levels
http://latimesblogs.latimes.com/laland/2008/07/cal-foreclosure.html

Freddie MAC CEO Paid $20 Million A Year
http://money.cnn.com/2008/0.._CEO.ap/index.htm?section=money_latest

Fannie, Freddie rescue pricetag could hit $25B
Housing report bruises Wall Street
Bank of China may hold huge US debt
Dems & Paulson Push Fannie/Freddie Bailout