Category Archives: Banking industry

“Occupy the Board Room”: Pick a Pen Pal in the Top 1% and Tell Them How the Other 99% Lives (#OccupyWallStreet)

I’ve been slow to post on a clever initiative, Occupy the Board Room, because there are lots of leftie groups trying to capitalize on Occupy Wall Street when their connection to the Occupy movement is thin at best. But this is a legitimate, well thought out program in the spirit of the great unwashed trying to capture the attention of the largely negligent and complacent elites.

One of the benefits of this approach is that there are people who are sympathetic to Occupy Wall Street but have commitments that limit their ability to participate (read child care) and may be sufficiently stressed financially that they can’t give as much as they’d like. The Occupy the Board Room site provides another outlet.

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Mirabile Dictu! Eurozone to Impose Penalties on Banks That Get Bailouts

Is the bank bailout free lunch coming to an end? While I would not hold my breath, given that financiers have proven quite skilled at watering down proposed reforms to thin gruel, a story from the Financial Times indicates that Eurozone leaders are no longer willing to give banks handouts with no strings attached.

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Philip Pilkington: Exorcising The Inflation Ghost – An Attempt To Cure Our European Compatriots of Their Inflation Phobia Through Regression Therapy

By Philip Pilkington, a journalist and writer living in Dublin, Ireland. Simuposted in German on Faz.net

If the intensity of a phantasy increases to the point at which it would be bound to force its way into consciousness, it is repressed and a symptom is generated through a backward impetus from the phantasy to its constituent memories. All phobias are derived in this way from phantasies which, in turn, are built upon memories.

Sigmund Freud

There are certain words in our culture upon which so many taut emotions converge that they become nothing less than a breaking point for certain opinions and moral platitudes. ‘Sex’ is obviously one. ‘Inflation’ is another.

To even begin to unravel the complex of associations that the word ‘inflation’ brings to mind in the average citizen would be an enterprise worthy of a full book. But one of the key associations is that of robbery. People instinctively feel that if there is inflation occurring they are being robbed by someone or other – most likely some ominous governmental bureaucracy, like a central bank.

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Quelle Surprise! GAO Finds the Fed is a Club of Backscratching, Well Connected, White Bankers

The GAO released a report yesterday that provided some anodyne but nevertheless useful confirmation of many of the things most of us knew or strongly suspected about the Fed: it’s a club of largely white male corporate insiders who do a bit too many favors for each other. But the GAO seemed peculiarly to fail to understand some basic shortcomings of its investigation.

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David Graeber: On Playing By The Rules – The Strange Success Of #OccupyWallStreet

By David Graeber, who is currently a Reader in Social Anthropology at Goldsmiths University London. Prior to that he was an associate professor of anthropology at Yale University. He is the author of ‘Debt: The First 5,000 Years’ which is available from Amazon.

Just a few months ago, I wrote a piece for Adbusters that started with a conversation I’d had with an Egyptian activist friend named Dina:

All these years,” she said, “we’ve been organizing marches, rallies… And if only 45 people show up, you’re depressed, if you get 300, you’re happy. Then one day, 200,000 people show up. And you’re incredulous: on some level, even though you didn’t realize it, you’d given up thinking that you could actually win.

As the Occupy Wall Street movement spreads across America, and even the world, I am suddenly beginning to understand a little of how she felt.

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Latest Attorney General Bailout Plan: Give Banks “Get Out of Jail Free” Card for a Few Refis

Attorney General Tom Miller of Iowa, who is leading the whitewash once known as the 50 state attorney mortgage settlement negotiations (7 have defected), reliably, every few weeks, has gotten word to the media that a deal is weeks away. This has been going on so long that it is easy to ignore it, particularly since the absence of key states is going to reduce the importance of any settlement being reached.

Note we’ve been skeptics of a deal happening unless the AGs capitulated on a release of liability. And that is the latest plan.

We have a combo plate of stories, one in the Wall Street Journal yesterday morning and a further critical tidbit from Reuters this evening that together give an overview of Miller’s latest effort to push a deal over the goal line. The latest idea is as bad as we feared.

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Attorney General Beau Biden on Investigating the Mortgage Mess

The Dylan Ratigan show is on a roll this week. The program today included a segment with one of our heros, Delaware attorney general Beau Biden, who was early to join New York’s Eric Schneiderman in questioning the now less than 50 state attorney general mortgage settlement. He also joined the FDIC, Schneiderman and a large number of investors in objecting to a proposed $8.5 billion mortgage settlement by Bank of America.

Biden makes a clear and concise statement of the major issues:

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Bank of America Deathwatch: Moves Risky Derivatives from Holding Company to Taxpayer-Backstopped Depository

If you have any doubt that Bank of America is going down, this development should settle it. I’m late to this important story broken this morning by Bob Ivry of Bloomberg, but both Bill Black (who I interviewed just now) and I see this as a desperate move by Bank of America’s management, a de facto admission that they know the bank is in serious trouble.

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The Data That the Economy is Not So Hot is Getting Harder to Ignore

The propagandistic exhortation that we all need to need to learn to love or at least accept the crappy economy known as “the new normal” is starting to wear a bit thin. One of the things that has allowed the punditocracy to pretend that “the new normal” really isn’t all that bad are various myths that they get investors and sometimes the broader public to believe in succession or better yet simultaneously:

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Elizabeth Warren’s Jobs Plan: War with Iran

As much as your humble blogger still regards Elizabeth Warren as preferable to Scott Brown in the Massachusetts Senate race, the evidence from her campaign is that she is no progressive, unless you define “progressive” to mean “centrist/Hamilton Project Democrat willing to throw a few extra bones to the average Joe.”

We’ve warned repeatedly that Warren not being all that left leaning was a real possibility.

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A Victory for #OccupyWallStreet in the Most Unlikely of Places?

Please welcome Carol Smith, who is based in Austin and has considerable experience in financial services industry research and analysis. I’m pretty confident she’s also listened to more analyst conference calls than most Naked Capitalism readers have, and you’ll see her put her experience to good use.

By Carol Smith

A Financial Times article today showcased recent comments by bank executives and politicians (and even Erick Erickson of RedState.com!) sympathizing with the sentiments behind the Occupy Wall Street movement.

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Steve Rattner, Card Carrying Member of Top 1%, Tells Us We Should Lie Back and Enjoy Much Lower Wages Resulting From Globalization

A corollary to Upton Sinclair’s famous saying, “It is difficult to get a man to understand something if his salary depends on his not understanding it” is “People promote ideas that help them secure or preserve a privileged position on the totem pole.”

A glaring example of these observations came in an op ed in the Sunday New York Times by Steve Rattner, former Lazard mergers & acquisition partner, later head of the private equity firm, Quadrangle Partners. He is best known as the chief negotiator in the auto bailouts (and he was criticized for not involving any auto industry experts). He paid $10 million to settle a kickbacks investigation and agreed not to work for a public pension fund in any role for five years. I happened to see Rattner on a panel at a Financial Times conference earlier this week and he elaborated on some of the themes in this piece, “Let’s Admit It: Globalization Has Losers,” which reader Brett asked me to debunk line by line. I’ll spare you and focus just on the most critical and bald-facedly dishonest bits.

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From QE to Communism

By Zarathustra, who is the founder of Hong Kong blog Also sprach Analyst. He was educated at the London School of Economics and the Chinese University of Hong Kong and was once a Hong Kong-based equity research analyst focusing on Hong Kong real estate (which he did not really like), with a secondary coverage on China real estate sector (which he actually hated). Cross posted from MacroBusiness

Zero interest rate policy and quantitative easing is not working to stimulate the real economy. No country has succeeded. The pioneer of quantitative easing, the Bank of Japan, failed (and Japanese yen is uber-strong). The Federal Reserve has failed, and the Bank of England has failed.

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