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2011-08-22 Economy
Wall Street Aristocracy Got $1.2 Trillion in Loans from Fed
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Posted by Bright Pebbles 2011-08-22 08:09|| || Front Page|| [11132 views ]  Top

#1 Yup "When you owe the bank A trillion, and can't pay, the bank has a problem. Not you".
Posted by Redneck Jim 2011-08-22 09:07||   2011-08-22 09:07|| Front Page Top

#2 Part of the reason for the big bubbles recently. There is no accountability. Fuck up? No big deal, the feds will bail your ass out. So keep doing it, there will be no consequences.
Posted by DarthVader 2011-08-22 11:00||   2011-08-22 11:00|| Front Page Top

#3 And you thought Russia was a kleptocracy.
Posted by Ebbang Uluque6305 2011-08-22 12:05||   2011-08-22 12:05|| Front Page Top

#4 This was in Bloomberg? Perhaps the financial media is starting to wake up or get wise to what's been going on all these years.
My administration is the only thing between you and the pitchforks, Obama told a meeting of top bankers in April 2009.
Posted by Anguper Hupomosing9418 2011-08-22 12:21||   2011-08-22 12:21|| Front Page Top

#5 there will be no consequences That only applies to the oligarchy. There have been, are and will be many consequences for the rest of us, mostly bad ones. We can, however, take comfort in the fact that existing regulations are not being used.
Posted by Anguper Hupomosing9418 2011-08-22 12:23||   2011-08-22 12:23|| Front Page Top

#6 $1.2 trillion of public money, about the same amount U.S. homeowners currently owe on 6.5 million delinquent and foreclosed mortgages
Posted by Water Modem 2011-08-22 13:40||   2011-08-22 13:40|| Front Page Top

#7 It wasn’t just American finance. Almost half of the Fed’s top 30 borrowers, measured by peak balances, were European firms. They included Edinburgh-based Royal Bank of Scotland Plc, which took $84.5 billion, the most of any non-U.S. lender, and Zurich-based UBS AG (UBSN), which got $77.2 billion. Germany’s Hypo Real Estate Holding AG borrowed $28.7 billion, an average of $21 million for each of its 1,366 employees.

The largest borrowers also included Dexia SA (DEXB), Belgium’s biggest bank by assets, and Societe Generale SA
Posted by Water Modem 2011-08-22 13:41||   2011-08-22 13:41|| Front Page Top

#8 Spengler last week published a different view on this issue. Households made more money than the bankers during every year of the bubble, and ended up better off than they were before the bubble, while the bankers got wiped...the destruction of institutional and personal wealth among the top tier of bankers exceeded the balance-sheet damage to American households.
 He compares the net value of household real estate to the net value of banks. I think his is not a valid comparison. My household's only value gain during the bubble was negative - my real estate assessment & taxes went up, while the interest I was able to earn on my retirement savings went down. I don't intend to sell my house or borrow on it any time soon, those are the only two ways I could benefit from the imaginary rise in its value. Now that the financial set has damaged age-old law regarding the ownership of real estate, I cannot even be sure I own the home I have paid off, and this situation promises to get worse. Yesterday in NY Times: Eric T. Schneiderman, the attorney general of New York, has come under increasing pressure from the Obama administration to drop his opposition to a wide-ranging state settlement with banks over dubious foreclosure practices,real estate title fraud, perjury, and frauds committed on state courts. To propose a national witch-hunt against "Wall Street gamblers" is a stupid and wicked thing to do. I must be getting stupid.
Posted by Anguper Hupomosing9418 2011-08-22 14:13||   2011-08-22 14:13|| Front Page Top

#9 At root the problem is that the principle that the lender bears the risk of the loan got diluted, and this led to progressively more risky lending.

And it was governments that caused the problem by real and implied guarantees to cover bad loans.
Posted by phil_b 2011-08-22 17:49||   2011-08-22 17:49|| Front Page Top

#10 I think the lending was probably the right thing to do but agree with this guy, with whom I frequently don't agree, that thge mistake was not to make the managers, owners and bondholders pay for their incompetence by reorganizing the banks. That was the real crony capitalism deal of the century.
Posted by Nimble Spemble 2011-08-22 17:55||   2011-08-22 17:55|| Front Page Top

#11 @Anguper Hupomosing9418

No-one except bank bond holders really gains from higher house prices.
Posted by Bright Pebbles 2011-08-22 18:26||   2011-08-22 18:26|| Front Page Top

#12 I agree with the limited benefit of higher house prices. I was surprised to read Spengler seeing that as important in the context of the housing bubble. He's smarter than that.
Posted by Anguper Hupomosing9418 2011-08-22 18:46||   2011-08-22 18:46|| Front Page Top

#13 From the reference to Ritholtz: Imagine if the government and the Federal Reserve were run not by knaves and fools and Wall Street sycophants, but instead, were run honestly for the benefit of the taxpaying voter. Imagine the goal was saving the banking system (not the banks), and the financial rescue was for the benefit of the taxpayers, not the bondholders.
What did happen was, what should have been private losses were instead assigned to the taxpayers aka bagholders.
Posted by Anguper Hupomosing9418 2011-08-22 18:49||   2011-08-22 18:49|| Front Page Top

#14 "We can, however, take comfort in the fact that existing regulations are not being used."

What regulations? Prez Bonzo deregulated the financial sector cuz he looked back at 1929 with nostalgia. So we can congratulate the ghost that was he for all the wonderful spinoffs of voodoo economics (double-digit unemployment, massive debt, kleptocracy on Wall Street, etc). The hens have come home to roost. Have a nice day...
Posted by Trembling B4 G*d 2011-08-22 20:20||   2011-08-22 20:20|| Front Page Top

#15 Took you a long time to get in today. Have a labattotomy last night?
Posted by Nimble Spemble 2011-08-22 21:00||   2011-08-22 21:00|| Front Page Top

#16 Yes, he did sign off a opening to the situation because the Donks and media were hammering the heartless old man (sarc) because they wanted to bailout the Savings and Loan industry debacle of the mid-80s so that the Donks patrons on Wall Street and the investment houses could get the assets of those institutions and the American taxpayer would absorb the loses. That the S&Ls were state chartered and (un)insured didn't matter when the images of poor old Mom and Pa Kettle were pasted over the nightly television, skipping of course that they had speculated in land/property and had lost.
Posted by Procopius2k 2011-08-22 21:05||   2011-08-22 21:05|| Front Page Top

#17 My mother died last year(No sympathy please. sne made it to 95)and her house needs to sell, there are NO Bidders amd No buyers?

Foe a $170,000.00 House?
Posted by Redneck Jim 2011-08-22 21:22||   2011-08-22 21:22|| Front Page Top

#18 Redneck, I won't give you my sysmpathy, but I will give you my condolences. What area in the States do you live?
Posted by Etienne 2011-08-22 21:30||   2011-08-22 21:30|| Front Page Top

#19 New Brunswick
Posted by Nimble Spemble 2011-08-22 21:34||   2011-08-22 21:34|| Front Page Top

#20 If only we republicans had listened and passed all that Sarbannes Oxley stuff none of this would have happened!

Oh, wait...
Posted by Thing From Snowy Mountain 2011-08-22 23:06||   2011-08-22 23:06|| Front Page Top

#21 Publicly on a one for one basis release folks from the pen who are there for under $2K bad checks and replace them, in the cells they shared with big Mike.., with major bank CEOs and FED and Treasury officials.
Posted by Water Modem 2011-08-22 23:36||   2011-08-22 23:36|| Front Page Top

#22  The hens have come home to roost

In English the idiom is "The chickens have come home to roost," Etienne/Trembling B4 God. But your English is considerably better than my Dutch, although Mama likes to say that Flemish isn't really proper Dutch.

Your manners, however, match your incomplete knowledge. Not a good way to convince this crowd, I'm afraid, some of whom actually do know what you think you're talking about.
Posted by trailing wife 2011-08-22 23:40||   2011-08-22 23:40|| Front Page Top

#23 I happen to live in Alabama, the house is in Montgomery.(Nice neighborhood)
Posted by Redneck Jim 2011-08-22 23:50||   2011-08-22 23:50|| Front Page Top

00:13 JosephMendiola
23:50 Redneck Jim
23:49 trailing wife
23:40 trailing wife
23:39 Water Modem
23:38 JosephMendiola
23:38 gorb
23:36 Water Modem
23:31 badanov
23:27 Water Modem
23:27 JosephMendiola
23:10 trailing wife
23:06 Thing From Snowy Mountain
22:35 trailing wife
22:01 Frank G
21:34 trailing wife
21:34 Nimble Spemble
21:31 newc
21:30 Etienne
21:28 Redneck Jim
21:22 Redneck Jim
21:19 newc
21:05 Procopius2k
21:00 Nimble Spemble









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