While everyone was debating the wisdom of giving $700B over to the US Treasury to divide amongst failing banks in late September, the Treasury Department silently changed the tax code and in doing so opened up an opportunity for banks to save billions when acquiring other banks. The Associated Press reports that, in some cases, banks will actually make money in the act of buying up their competitors. They point to Wells Fargo's effort to acquire Wachovia, a deal that will cost roughly $15B but that, under the new tax code, will save Wells Fargo $20B. Danny Schechter believes that this is a prelude to the type of activities that can be expected from an empowered Treasury Department. He also points out that this is in line with the effect that the bailout bill itself is having, with the bailout money being used to acquire competitors instead of financing the flow of credit.
Meanwhile, Danny says, the Democrats are claiming that the bailout process lacks transparency, after they promised during the bailout debate that they would ensure oversight while pushing the bill through congress. Danny also indicates that all levels of government are stalling on what to do about the quickly sinking auto industry, a problem being made worse by the power vacuum in the White House as there are still two months before Obama takes over as president. At the end of the interview, Danny relays the rumors that Obama is looking to past administrations to fill his empty slot at the recently empowered Treasury Secretary position, with former Clinton Treasury Secretaries Lawrence Summers and former Federal Reserve Chairman under Reagan and Carter, Paul Volcker, being on the reported shortlist of candidates.
Danny Schechter, "The News Dissector," is a former network TV producer, radio newscaster, and edits MediaChannel.org. He has written nine books on media themes. His latest, 'Plunder', was inspired by his latest film, In Debt We Trust: America Before The Bubble Bursts.
-
-
-
-
- Vierotchka
- added this
- added November 21, 2008
- flag
-
Well the bailout bill said that there would be no oversight on the Treasury's actions and that there would be future bailouts.
It seems like Congress is stalling because they want to dump on Obama when he comes in.
-
I am so sick of this stuff, when I get in trouble...I pay bail. These guys get paid?
-
Did anyone else wonder where a supposedly broke Congress came up with $700B to bail the banks out in the first place? Rainy day fund?
-
I need a few minutes to let this sink in.
Thanks for posting this V.
-
Gads, we need to get that CRIMINAL out of office!!!!!
Can't wait for 1-20-09 !!!!!!!!!!!!!
-
I'm too angry to respond. We need WATCHDOGS on the government in a BIG WAY!
-
It's really too bad we've paid so much money on those two Wars that we're still fighting. That cash could really have come in handy.
Congress has to accept as much blame for this as anyone. They passed this liducrous bill knowing full well that there wouldn't be oversight. This administration has proven to be one of the most corrupt in the history of our country, and yet *no one is doing anything about it.*
They brought impeachement proceedings against Clinton for lying about an extra-marital affair. What should the punishment be for destroying (or nearly so) the economy and our country?
-
-
-
-
- necrotized
- 8 months ago
-
-
"the Treasury Department silently changed the tax code and in doing so opened up an opportunity for banks to save billions when acquiring other banks."
Just another way in which the PRIIVILEGED and ELITE GOP base is given preferential treatment and operate under a completely different set of laws than those that apply to everyone else. That's the GOP, for you.
In the GOP world, YOU don't count for much unless you are very, very, very, very, very rich.
-
It's so much easier and more lucrative to steal with a pen than it is with a gun.
-
THIS IS THE STUFF THAT WILL CONTINUE TO SLOWLEY BUBBLE TO THE SURFACE, AS FAR AS BEING TRANSPARENT YOU WOULD HAVE TO BE A HIGHLY INFORMED PERSON WITH GOOD OVERSIGHT SKILLS TO SEE ALOT OF IT.THERE MUST BE CHANGE.CROSS YOUR FINGERS
-
-
-
-
- sickinjersey
- 8 months ago
-
-
they are all a bunch of corrupt, self-serving a-holes. They disgust me on every level possible.
-
-
-
-
- Incredulous
- 8 months ago
-
