The fact of this talk is telling in and of itself: that a mainstream commentator would devote an entire segment to the idea that capitalism isn’t working. While that idea may seem obvious to many NC readers, it was supposed to remain relegated to the sphere of deviance (see Daniel Hallin’s spheres of discourse for more detail).
Read more...Quite a few readers excitedly sent a link to a Bloomberg editorial, “Why Should Taxpayers Give Big Banks $83 Billion a Year?” which summarizes a study by Kenichi Ueda of the International Monetary Fund and Beatrice Weder di Mauro of the University of Mainz that the editors used to extrapolate that the five biggest US banks are “barely profitable” if they weren’t able to borrow at artificially cheap rates thanks to the market perception that they are too big too fail.
The Bloomberg article, while analytically flawed, still winds up being too charitable.
Read more...The game of chicken both the Republicans and Democrats are playing with the sequester and the budget/deficit talks is striking. One of the truly bizarre elements is that neither side is signaling the faintest interest in dealmaking of any kind. As I indicated the week before last, the lack of any sense of urgency was obvious: Congress had a holiday last week, and there were no real negotiations or even an exchange of proposals, virtually guaranteeing the sequester would take place as scheduled.
Read more...By Marcy Wheeler. Cross posted from emptywheel
Yesterday, the HuffPo caught up to reporting I did in January, reporting that DOJ used Aaron Swartz’ 2008 Guerilla Open Access Manifesto to justify their investigation of him. But there’s something the HuffPo is still missing.
Read more...Yves here. This post is useful not simply for its discussion of the economics of green energy but also for showing how think tanks fabricate findings to support their political message.
Read more...This Real News Network video not only gives a disheartening recap on how various transparency freedom fighters are faring legally, but also provides a sense of how the security state is extending its reach.
Read more...It’s really easy to have a fortress balance sheet if you can get other people to eat your losses
Read more...As a follow up to our series* on how Bank of America and its supposed independent consultant Promontory Financial Group, colluded to make a mockery of a process designed to provide compensation to borrowers who had suffered abuses in foreclosures during 2009 and 2010, we thought we would offer a few suggestions as to how to forestall future fiascoes of this sort.
Read more...Remember that big, ballyhooed mortgage settlement of early last year? The one where homeowners got $25 billion of relief (well actually only around $5 billion in cold cash, but why bother with pesky details?) The one made possible by Eric Schneiderman abandoning his fellow state attorneys general to grasp the brass ring of a do-just-about-nothing Residential Mortgage-Backed Task Force? The one that would make banks clean up their act and stop using robosigned documents and deal more fairly with borrowers?
Consent orders are seldom worth the paper they are printed on. The state/Federal settlement of early 2012 is no different.
Read more...By Marcy Wheeler. Cross posted from emptywheel
On October 28, 2009, the FBI set out to arrest a man they claimed, in the complaint justifying the arrest, was “a highly placed leader of a … radical fundamentalist Sunni group [the primary purpose of which] is to establish a separate, sovereign Islamic state.” The leader of the group “calls his followers to an offensive jihad.” The complaint states the group trained in the use of firearms and martial arts and explains that “Abdullah is advocating and encouraging his followers to commit violent acts against the United States.”
The arrest was staged at a warehouse controlled by the FBI, outfitted with 5 closed circuit video cameras that gave the FBI full visibility into anyone entering and leaving the warehouse, as well as pallets loaded with sandbags to provide cover. Altogether 66 FBI Agents participated in the arrest, with 29 Agents, including a K-9 team and snipers, inside the warehouse itself, along with helicopter cover, another K-9 team, and a control room nearby….
Read more...There are times I feel sorry for the business reporters at the New York Times.
Read more...Wow, this is ugly, and these two videos help explain why.
Read more...By Ian Fraser, a financial journalist who blogs at his web site and at qfinance. His Twitter is @ian_fraser. [An edited version of this article was published on pages 34-35 of the Sunday Herald on February 10th, 2013].
It has been described as the biggest banking felony in history … yet no-one has been prosecuted for the Libor fixing scandal. Ian Fraser looks at the RBS sacrificial lambs.
During Royal Bank of Scotland’s IT meltdown last summer, chief executive Stephen Hester referred to the risk “that you turn over rocks and find new things [that you have to clean up].” Last Wednesday, nearly five years on from the £45.5 billion taxpayer funded rescue of the Edinburgh based lender, a vast rock was hoisted aloft by three regulators. What lurked underneath was not a pleasant sight.
Read more...The OCC is bravely trying to spin the horrorshow of its botched foreclosure reviews as some sort of positive outcome. It is apparently now trying to present its dereliction of duty in figuring out how to compensate borrowers as no big deal.
Read more...This post continues our discussion of the role of “independent” foreclosure review consultant Promontory Financial Group. Here we focus on what happened, or more important, didn’t happen in Promontory’s conduct of the reviews, and how that contrasts with the staggering fees the firm is widely believed to have earned.
Read more...