From The Foundry

    End TARP and End the Stimulus

    Posted by Conn Carroll | 18 May

    White House Director of the Office of Management and Budget Peter Orszag

    Earlier this month the Treasury Department found that all 19 banks subject to government “stress tests” passed. Now this past Sunday, White House Director of the Office of Management and Budget Peter Orszag announced that: “The freefall in the economy seems to have stopped.”

    Economic catastrophe was the only rational supporting both the $700 billion TARP and the $787 billion stimulus. Now that the “freefall” is over it is time to repeal TARP and repeal the stimulus.

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      CEO Jamie Dimon of JP Morgan, up to his old tricks again. No sooner did the bank annex a revenue stream from Washington Mutual, than his firm sought to unload the firms debt obligations on U.S. tax payers.

      Then his firm sought to violate a number of laws, chief among them, to make material changes in their accounting methods.

      How classic for a NY Banker to now be in a hurry to privatize their profits again. ... In a hurry to unload debt in September, October, November, December and January. ...Make changes in accounting trick. Then, in a hurry to go private again.



      TITLE 12 - BANKS AND BANKING
      CHAPTER 16 - FEDERAL DEPOSIT INSURANCE CORPORATION
      § 1831 o. Prompt Corrective Action

      http://www.law.cornell.edu/uscode/uscode12/usc_...
      http://www.law.cornell.edu/uscode/uscode12/usc_...

      1)
      U.S. Code, Title 12, Chapter 16, § 1831 o Prompt Corrective Action (b)(2)(B)(i) and (d)(1)(A). Capital distributions (dividends) and share buy back programs restricted.

      2)
      U.S. Code, Title 12, Chapter 16, § 1831 o Prompt Corrective Action (i)(1) and (i)(2)(D) restrict the activities of any critically undercapitalized insured depository institution; and at a minimum, prohibit any such institution from doing any of the following: Making any material change in accounting methods.

      3)
      U.S. Code Title 12, Chapter 16, § 1831 o Prompt Corrective Action (i)(1) and (i)(2)(F) restrict the activities of any critically undercapitalized insured depository institution; and at a minimum (emphasis added), prohibit any such institution from doing any of the following … (F) Paying excessive compensation or bonuses.

      4)
      U.S. Code Title 12, Chapter 16, § 1831o. Prompt Corrective Action (i)(1) and (i)(2)(B) … Restricting activities of critically undercapitalized institutions: To carry out the purpose of this section, the Corporation shall, by regulation or order— restrict the activities of any critically undercapitalized insured depository institution; and (emphasis added) … at a minimum, prohibit any such institution from doing any of the following: Extending credit for any highly leveraged transaction.


      5)
      U.S. Code Title 12, Chapter 16, § 1831 o. Prompt Corrective Action (i)(1) and (i)(2)(C) … Restricting activities of critically undercapitalized institutions: To carry out the purpose of this section, the Corporation shall, by regulation or order— restrict the activities of any critically undercapitalized insured depository institution; and (emphasis added) … at a minimum, prohibit any such institution from doing any of the following: (C) Amending the institution’s charter or bylaws …

      6)
      U.S. Code Title 12, Chapter 16, § 1831 o. Prompt Corrective Action (i)(1) and (i)(2)(E) … Restricting activities of critically undercapitalized institutions: To carry out the purpose of this section, the Corporation shall, by regulation or order— restrict the activities of any critically undercapitalized insured depository institution; and … at a minimum, prohibit any such institution from doing any of the following: (E) Engaging in any covered transaction (as defined in section 371c (b) of this title).

      7)
      U.S. Code Title 12, Chapter 16, § 1831 o. Prompt Corrective Action (i)(1) and (i)(2)(A) … Restricting activities of critically undercapitalized institutions: To carry out the purpose of this section, the Corporation shall, by regulation or order— restrict the activities of any critically undercapitalized insured depository institution; AND (emphasis added) at a minimum, prohibit any such institution from doing any of the following … (A) Entering into any material transaction other than in the usual course of business, including any investment, expansion, acquisition (see overnight expansion gifts and acquisitions WaMu, Bear Stearns or Lehman Brothers), sale of assets, or other similar action with respect to which the depository institution is required to provide notice to the appropriate Federal banking agency. …

      .

      Add to the whole charade, a luscious surplus of omissions. Andwhat you have is Jamie with his hands in Uncle Sam's trousers. Asking Uncle Same to help him perpetrate fraud on the American public and deprive them of laws that would otherwise serve to protect them from abusive, indulgent NY bankers.

      You would think the NYers of the World Trade Center, did not died under capitalist rule? Did they die for nothing then?

      At ground zero, NY banking centers and their brokerage arms were the first to slink away from defense of capitalism, in the time of crisis, when capitalism needed a defender.

      Instead of defend capitalism, NY banks sought to circumvent the above laws and then did also go silent, omitting to defend capitalism long enough to unload their debts on others. Could not even take a loss in two down years of the capital cycle. All those good years, well they privatized their profits, but in one or two bad years, they socialize their losses.

      How convenient for cowards, who wriggle away from their debt obligations.

      Bunch of anglo saxon purveyors of fraud: So many omissions piled on top of each other, evince fraud. Jamie Dimon at the top of the list with the 12 monkeys from the ward who run Goldman Sachs.

      Socializing the debt obligations their middle managers signed their firms into. And then shirking it off when it comes due. ...Remember this line, "we are all in this together." ... Now the polar extreme, in a hurry to privatize their gains again.

      They are so transparent.

      What cowards.... the first to fall silent in defense of capitalism, during a crisis.



      http://en.wikipedia.org/wiki/Washington_Mutual
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      http://money.aol.com/article/goldman-sachs-morg...

      ...The article should be retitled:

      NY banks, Eager to Privatize Their Profits Again. (After imposing their debt obligations on common Americans, how NY banks are in a hurry to go private again.)

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      12 monkeys from the ward, in charge of NY banks again .... "Paying back TARP money would clearly be seen as a sign of strength," said Douglas Elliott, fellow at Brookings Institute and former investment banker at JPMorgan. ...

      Who does this guy think he is kidding? ...The article should be retitled:

      NY banks, Eager to Privatize Their Profits Again. (After imposing their debt obligations on common Americans, how NY banks are in a hurry to go private again.)


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      All these signors, first from the ward of NY Bankers, to forget to defend capitalism in a time of crisis. In a hurry to offload their debt obligations on the American people, forgot all about defending capitalism, the above laws, contract law and debtors law:

      http://www.judicialwatch.org/files/documents/20...

      Now seeking to privatize their gains again... Fed should tell them they can repay TARP funds, when they also take back their toxic debts and accept responsibility for the derivatives they brokered and charged large fees for during the ":glory" years...

      JP Morgan should also have to give back revenue stream of Washington Mutual back to Seattle area bankers. Let them submit plans for recapitalization like Favored Jamie's firm.
     
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