tagged w/ Treasury Secretary
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No matter how Jack Lew performs at his Senate confirmation hearing on Wednesday, his nomination to be Treasury Secretary has already produced one big winner: the Cayman Islands. The Caribbean low-tax haven is getting a political rehabilitation thanks to Mr. Lew's participation in a Cayman-based fund he invested in while working at Citigroup C +0.75% from 2006-2008.
For years Democrats have denounced the Caymans, which has no corporate income tax, as a refuge for tax cheats. In 2012 President Obama ripped Mitt Romney for investments based there. But now an Obama spokesman suggests that Mr. Lew's Caymans investment, a Citigroup fund he chose to invest in, was a model of transparency and says that "Jack Lew paid all of his taxes and reported all of the income, gains and losses from the investment on his tax returns."
Wednesday's hearing might even restore the good name of Ugland House, a small Caymans building that Democrats made famous as the legal home to thousands of businesses and investment partnerships—including Mr. Lew's. Mr. Obama has called Ugland an "outrage" and a "tax scam." Senate Finance Chairman Max Baucus, who will preside over the Lew festivities, devoted an entire hearing to Ugland House in 2008 and said that businesses maintain legal residences there for reasons that "have a lot to do with tax evasion." Tax evasion is a felony.
One might therefore expect that the appointment of an investor in an Ugland-based fund to oversee the IRS would cause Mr. Baucus to blow a gasket. But on Monday the Montana Democrat expressed his hope that Mr. Lew would be "quickly confirmed."
Sounds like Ugland and its virtual residents are now off the political hook, as Democrats acknowledge that U.S. investors like Mr. Lew are paying the U.S. taxes they owe. That may be true, but it does raise a practical question. If U.S. investors owe taxes on their Caymans investments, then why did this fund for employees at Mr. Lew's New York-based Citigroup need to be located there?
Citigroup declines to answer. It's possible the Caymans was chosen to help Citi's foreign executives avoid taxes in their home countries. But it's also possible the legal structure helped American Citibankers avoid some tax exposure, too.
Our legal sources say that venture-capital funds like Mr. Lew's will often use a Caymans vehicle so that any non-U.S. investments will more easily avoid being characterized as "controlled foreign corporations" (CFCs). If a venture fund owns more than 50% of a CFC, then U.S. investors might have to report as income some of the CFC's income, even if it hadn't been distributed to the fund or its investors.
Speaking of income, Senators may also want to ask about the last paycheck Mr. Lew received from Citigroup. On January 15, 2009, after Citi had received taxpayer bailouts of $45 billion in cash, and hundreds of billions more in loans and guarantees, Mr. Lew received a payment of $944,518. As he was about to join the Obama Administration, he received this sum for "salary, payout for vested restricted stock, discretionary cash compensation for work performed in 2008," according to a disclosure report he signed in 2010.
Thus some—perhaps most—of this money was a bonus for Mr. Lew's work in 2008. Did Mr. Lew feel guilty signing the back of a bonus check of almost $1 million underwritten by middle-class American taxpayers?
Mr. Lew's supporters say he didn't know much about the mortgage bets that sank Citigroup because he oversaw things like human resources and technology. But a 2008 Citigroup organization chart provided by a Senate aide says that as chief operating officer of Citigroup's Alternative Investments division, Mr. Lew also oversaw boxes labeled "Finance," "Illiquid Operations" and "Liquid Operations." Perhaps Mr. Lew can illuminate the meaning of these terms, but they sound a lot like the business of funding this mortgage-investment unit that failed in spectacular fashion.
If Jack Lew was seeking loans for this Citi division without a clue what the loans were funding, he might qualify as Wall Street's most reckless banker of 2008. And if he did have a clue and either dismissed the risks or kept silent about them, what is he doing as the President's nominee to run the Treasury? Meanwhile, readers may want to check out Ugland House. If the IRS objects, Max Baucus has your back.
http://online.wsj.com/article/SB10001424127887323696404578298352191611608.htmlNo matter how Jack Lew performs at his Senate confirmation hearing on Wednesday, his... more
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I don't know how many times I have made this request in response to various blogs that have been posted. Now I'm on my knees begging you that if you still bank with one of these corrupt institutions, CHANGE NOW. I have confirmation that this may be the only way we can put an end to these bastards being allowed to operate totally outside the law with no fear of legal repercussion.
This link has links to other valuable information in support of why it's not only a good idea, but it is necessary for all of us to make a cooperative effort.
http://www.washingtonsblog.com/2013/02/switch-your-bank.html
An example of what you'll find in here is a link to what these bastards actually say, i.e., JP Morgan http://www.switchyourbank.org/things_traders_say
"Morgan Stanley
"Pro Publica recently reported that traders at Morgan Stanley joked about how crappy a toxic asset was before they sold it to a foreign bank.
"They named the asset such things as "Subprime Meltdown," "Hitman," "Nuclear Holocaust," "Mike Tyson's Punchout," and "s***bag." And then they sold it.
"Here's why at least some of these guys should be in jail. They sold an asset they knew was junk.
"To illustrate why this is wrong, let's say a car salesman sells cars he knows are lemons. But he doesn't tell his customers this (at least not outrightly). When questioned by the law about his actions, the car salesman says that the customer should be sophisticated enough to know the possible downsides of the deal, and so he doesn't deserve any blame.
"Only in a corrupted court system would such an argument pass as legitimate. And yet this is the kind of logic that seems like it would fly if executives at Morgan Stanley or Goldman Sachs were ever put on trial."
Back in the 60's or 70's had they practiced as they do now, they would have been tried, convicted and jailed. Now to do so has become damned impossible. Along their merry way to supremecy they have managed to corrupt our U.S. Treasury Dept., our government leaders right up to the presidents, and our Justice Dept. and the corruption runs so deep that they now enjoy the ability to not even make an attempt at covering up their misdeeds. Our justice department (or should I call it our injustice dept?) has been relegated to obtaining 30 year sentences for very minor banking fraud by insignificant borrowers because these cases are "easy." One such case was a young man who presented himself at a Coamerica Bank branch under the name Robert University (otherwise known as Rob U). He claimed to be an up and coming musician and presented a YouTube video showing millions of hits, and he was asking for a $1,000,000 loan. The bank used the YouTube video to get their underwriters to accept this loan. Nothing was ever substantiated by the bank as to the claims of what he was worth. They didn't even both to check his name. In fact, he was worth nothing. So instead of the bank being punished under the new regulations required for confirming the assets of the individual, Rob-U (which went completely over the bank's heads), the justice dept. tried and convicted him and was sentenced to 30 years. The money was not recoverable because Rob-U enjoyed a lavish lifestyle, if only for a little while. And because of the theft, We The People are on the hook for that money which had to be reimbursed Somehow to the bank.
It is absolutely essential that we make a united front in this matter. It's obvious to me that these corrupt banks are still enjoying a great deal of public support. Their parking lots are always full. There is irrefutable evidence that they discriminate greatly when making loans to black and hispanic borrowers by charging much higher interest rates on loans to them than to their white counterparts. And yet, these people still go there for loans. Mindboggling!
I realize that changing banks is a pain in the butt, but gee-whiz, what will it take to shake some people out of their comfort zones? If we don't all hang together on this, then surely we will all just hang. Everyone's support is necessary. Tell your friends and relatives to get on board. These crooks have gotten away with their scams way too long, and if the government won't bring them down, then the only ones who can are us.I don't know how many times I have made this request in response to various blogs... more
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... there are other options than the usual clap trap economic speak, other ways of assessing what the economic present day designs we are chained to are looked at. It's time to re-think the whole damn mess - and get on with it.... there are other options than the usual clap trap economic speak, other ways of... more
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He has helped write popular television dramas and has stroked many a sweet drop shot on the tennis court. He has written a book about education in developing countries.He has helped write popular television dramas and has stroked many a sweet drop shot... more
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kamoo
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added this
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2 years ago
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Experts from the housing industry are gathering today in Washington to discuss the future of housing finance.
The Conference on the Future of Housing Finance is aimed at gathering public input as the Obama Administration continues to develop a housing finance reform proposal for delivery to Congress by January 2011.
Panelists have been discussing the role of the government in housing finance. What should be the roles of the private and public sector in changes to come?
The Treasury Department and Department of Housing and Urban Development are the cosponsors.Experts from the housing industry are gathering today in Washington to discuss the... more
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The New York Post reported this morning that lawmakers are discussing JPMorgan Chase CEO Jamie Dimon as a potential replacement for current Treasury Secretary Timothy Geithner.
Leaving aside concerns that appointing a Wall Street CEO to the Treasury's top position would draw heavy criticism over Wall Street's coziness with Washington, it's not clear that Dimon would be a natural fit in the Obama administration. According to the Wall Street Journal, Dimon departs from White House policy on a handful of key issues.
For one, President Obama has pushed establishment of a consumer-protection agency that would keep watch over credit card and mortgage companies, but Dimon opposes the agency on grounds that it will drive up costs. JPMorgan says recent legislation regulating credit cards could cost the bank up to $750 million a year, a burden that may be passed along to consumers.
And while the White House's position on how to handle too-big-to-fail banks is still evolving, Dimon has staunchly defended big banks' right to exist -- and to fail. In a Washington Post op-ed this month, Dimon wrote:
"...ending the era of "too big to fail" does not mean that we must somehow cap the size of financial-services firms. Scale can create value for shareholders; for consumers, who are beneficiaries of better products, delivered more quickly and at less cost; for the businesses that are our customers; and for the economy as a whole. Artificially limiting the size of an institution, regardless of the business implications, does not make sense. The goal should be a regulatory system that allows financial institutions to meet the needs of individual and institutional customers while ensuring that even the biggest bank can be allowed to fail in a way that does not put taxpayers or the broader economy at risk."
Anonymous sources told the NY Post that Dimon "would love to serve his country," but is demurring. He has no plans, he says, to leave JPMorgan for the next "six or seven years."
For now, Geithner is still contending with critics in Congress. He was attacked last week during an appearance before Congress's Joint Economic Committee. "Mr. Secretary, the public has lost all confidence in your ability to do your job," Rep. Kevin Brady (R-Texas) told him.The New York Post reported this morning that lawmakers are discussing JPMorgan Chase... more
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What does it mean when a conservative Republican and a liberal Democrat both call for Treasury Secretary Tim Geithner to be fired? Is it a sign that he's lost the confidence of both parties and should be immediately disposed of? Or is it confirmation that he is steering safely down the middle of the river, while the left and the right banks seethe with rage?
Oregon Democrat Vic DeFazio, a staunch member of the House's progressive caucus took some hard swings at Geithner for paying more attention to Wall Street than to Main Street during an MSNBC interview with Ed Schultz. He finished by calling for both Larry Summers and Geithner to be fired, saying with a smirk, "We may have to sacrifice just two more jobs to get millions back for Americans."What does it mean when a conservative Republican and a liberal Democrat both call for... more
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During an interview with Congressman Manzullo R-IL, the Congressman made it very clear his thoughts on what, “Treasury Secretary Timothy Franz Geithner” has been up to.During an interview with Congressman Manzullo R-IL, the Congressman made it very clear... more
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Did Henry Paulson, George W. Bush's Treasury secretary, break the law?
According to a new book on the financial meltdown by New York Times reporter Andrew Ross Sorkin, in June 2008, Paulson, who was the chairman of Goldman Sachs before joining the Bush administration, held a secret meeting in Moscow with the board of directors of his former employer. The problem for Paulson—then and possibly now—was that after he had been nominated in 2006 to the Treasury post he had signed an ethics letter vowing to stay clear of potential conflicts of interest with Goldman Sachs and promising not to take any action that might affect the firm's ability to cover his multimillion-dollar pension.
As Sorkin recounts the episode, Paulson and the Goldman Sachs board happened to be in Moscow at the same time. Learning of this coincidence, Paulson asked his chief of staff, Jim Wilkinson, to set up a meeting. Wilkinson was not happy about this. "For fuck's sake!" he thought, according to Sorkin. Paulson told him that the meeting could be considered a social gathering, but as Wilkinson worked out the details with the Goldman Sachs crowd, he asked that the session remain confidential. And the event was not placed on Paulson's official calendar.
When Paulson and the firm's execs got together at the Moscow Marriott Grand Hotel, the Treasury secretary gave the Goldman Sachs crew his read on what was happening with the economy and his department's effort to prepare for handling failed banks. He also previewed for them an important speech he would soon deliver. That is, he privately shared his views on matters of direct interest to his old firm. And as Sorkin points out, Paulson had at this point never provided such a briefing to any other company (except for once "briefly dropping by" a cocktail party for the board of BlackRock).
In September 2008, as the economy imploded, Paulson obtained an ethics waiver that would permit him to deal with Goldman Sachs. But at the time of the Moscow meeting, he was still covered by his original ethics agreement. And two government watchdog groups now say that Paulson seems to have broken ethics laws when he hobnobbed with his former firm's top brass. Danielle Brian, the executive director of the Project on Government Oversight, tells Mother Jones:
"Henry Paulson’s meeting with the board of directors of his former employer, Goldman Sachs, appears to be a serious violation of ethics laws. Given that the meeting took place in the summer of 2008—months before he received an ethics waiver allowing him to participate in matters that would affect his Goldman pension—it was completely inappropriate for Paulson to discuss internal matters at the Treasury Department, and to preview an important speech he was about to deliver. This could potentially be a criminal or civil matter."Did Henry Paulson, George W. Bush's Treasury secretary, break the law?... more
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Did you stay in stocks when Hank Paulson said everything was sweet as morning sunshine after a harsh rain? Well, you were lied to ...Did you stay in stocks when Hank Paulson said everything was sweet as morning sunshine... more
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a tongue in cheek look at the wall street bailout.
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Katrina vanden Heuvel in The Nation:
"Spitzer took on Wall Street's metastasizing corruption before the meltdown. He defended consumers' and taxpayers' rights. He speaks with passion and clarity about what went wrong and what needs to be done to restore integrity to our system. He is chastened by personal scandal, yet untouched by complicity in Wall Street's public scandals which have obliterated peoples' savings and devastated our country.
Spitzer for Treasury Secretary?"Katrina vanden Heuvel in The Nation:
"Spitzer took on Wall Street's... more
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GRITtv
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added this
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4 years ago
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The Obama administration took a fresh shot at ending a national paralysis in lending Monday, teaming up with investors to buy bad bank assets and ease credit for hard-pressed consumers and businesses.The Obama administration took a fresh shot at ending a national paralysis in lending... more
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Timothy Geithner was quickly sworn in to office Monday night, becoming the nation's 75th treasury secretary and one of the point men President Barack Obama will be counting on to help pull the country out of its economic slide.Timothy Geithner was quickly sworn in to office Monday night, becoming the... more
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The Senate voted to confirm Timothy Geithner, President Barack Obama's pick for treasury secretary, Monday evening, after delaying a vote because Geithner failed to pay some of his federal taxes in 2001.
Under normal circumstances, failing to pay your taxes is a surefire way to torpedo your nomination to a Cabinet position.
But the race to halt the economic slide before the midterm elections in 2010 is so tight that President Barack Obama's choice for treasury secretary, New York Federal Reserve Bank chief Timothy Geithner, is got a pass on his tax troubles from the president and most senators, Democrats and Republicans.
Obama believes Geithner has made amends — he has paid the taxes and penalities — and possesses the talent the U.S. needs, his spokesman said.
"Secretary-designate Geithner ... admitted that he'd made honest mistakes that could and should have been avoided," White House spokesman Robert Gibbs said.
The Senate voted 60-34 to confirm Geithner.The Senate voted to confirm Timothy Geithner, President Barack Obama's pick for... more
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President-elect Barack Obama is wasting no time getting his White House team filled out.
Calling for "sound judgment and fresh thinking" to address the nation's economic crisis, he announced Timothy Geithner, president of the New York Federal Reserve, as Treasury secretary, and Larry Summers, a former Treasury secretary, as head of the National Economic Council.President-elect Barack Obama is wasting no time getting his White House team filled... more
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The government has introduced a pair of new programs that will provide $800 billion to help unfreeze the market for consumer debt which Treasury Secretary Henry Paulson calls vital to supporting the economy.The government has introduced a pair of new programs that will provide $800 billion to... more
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US shares have risen sharply, following a report that US President-elect Barack Obama has chosen his treasury secretary, reassuring investors.
The Dow Jones Industrial Average added 494 points or 6.5% to end at 8,046.66. The Standard & Poor's 500 climbed 6.3%.
The NBC television network reported the president of the Federal Reserve Bank of New York, Timothy Geithner, would be nominated as treasury secretary.
Mr Obama is expected to announce his economic team on Monday.
The NBC report was welcomed by investors in what has been yet another volatile week of trading amid ongoing fears over the scale of the economic contraction.
"It is a bit of good news in that it takes the uncertainty out," said Joe Saluzzi, co-manager of trading at Themis Trading.
Mr Geithner has worked closely with outgoing Treasury Secretary Henry Paulson in addressing the credit crisis and finding ways to boost the economy.
The 47-year-old played a crucial role in talks with Lehman Brothers before the investment bank went bankrupt.
He was also instrumental in the deals involving insurer AIG and JP Morgan, another bank.
The NBC report was enough to counter concerns over the finance sector and in particular the future over banking giant Citigroup, which saw its shares plummet 20% as board members met.
Rising commodity prices helped boost mining and energy firms.
Aluminium company Alcoa added 23% while Exxon climbed 10%, after the price of oil recovered from its lowest level in more than three years.US shares have risen sharply, following a report that US President-elect Barack Obama... more
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Treasury Secretary Henry Paulson says he's not proud of the mistakes made leading up to the biggest financial crisis in seven decades, but he insists the administration is pursuing the correct course now to end the crisis.Treasury Secretary Henry Paulson says he's not proud of the mistakes made leading... more
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Video explains what is being done to save our banks from going under.....
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