Update: Treasury Swearing In Ceremony…Senate confirms Geithner 60-34….Obama A Team now assembled..time to git r done!
Update 3: from the Rollcall:
the Nays:
| NAYs —34 | ||
| Alexander (R-TN) Barrasso (R-WY) Bennett (R-UT) Brownback (R-KS) Bunning (R-KY) Burr (R-NC) Byrd (D-WV) Chambliss (R-GA) Coburn (R-OK) Cochran (R-MS) Collins (R-ME) DeMint (R-SC) |
Enzi (R-WY) Feingold (D-WI) Grassley (R-IA) Harkin (D-IA) Hutchison (R-TX) Inhofe (R-OK) Isakson (R-GA) Johanns (R-NE) Kyl (R-AZ) Lugar (R-IN) Martinez (R-FL) McCain (R-AZ) |
McConnell (R-KY) Murkowski (R-AK) Risch (R-ID) Roberts (R-KS) Sanders (I-VT) Sessions (R-AL) Specter (R-PA) Thune (R-SD) Vitter (R-LA) Wicker (R-MS) |
| Not Voting – 4 | ||
| Bond (R-MO) Brown (D-OH) |
Kennedy (D-MA) Wyden (D-OR) |
|
Update 2: Byrd, Feingold, Harkin & Sanders voted no…
AP Video of Senate confirmation vote
Inhofe’s speech in opposition to Geithner
Update: CNBC and FOX have a live box up with a large assembly and a POTUS podium seal at Treasury…watch LIVE STREAM for breaking announcements…
***5 members of Democratic Caucus voted against Geithner****
Secretary of the Treasury, Timothy Geithner confirmed...
Now let’s get to work on the housing…He has the TARP Tranche Deux a cool 350 billion, he has the authority, now .
Okay, now we have the Obama “A” Team of economic action in place..now get out there and git r done!
LOTR courtesy of Tituskhain
The Empire Strikes Back!!!…Thain says Lewis knew all….
Update: 11:48am EST: And they’re off!!!! BofA releases a stmt claiming Thain and Merrill Comp Cmte made call on y/e bonuses., reported live on CNBC…this after the FT report yesterday that BofA had input into those bonuses..
a real pixxing match going on here folks..BofA claiming they had no legal right to challenge the bonus decisions? I say Ken Lewis is on his way out….(PS Charlie Gasparino is once again displaying his lack of uhmm couth on CNBC interrupting everyone to say he knows all..again…Kudlow says something important here, LEWIS BOUGHT COUNTRYWIDE yeah remember that???) To MiM, it looks like BofA is rebuilding in the image of CITI (which failed-hey maybe that’s their plan to be too big to fail…)..
Oh it is getting good now. If I weren’t a frakin shareholder I might even enjoy the drama of it all…
John Thain, erstwhile CEO of Merrill and former CEO of NYX and COO at Golden Slacks, has struck back at one-sided reports leaked by Ken Lewis over at BofA suggesting Thain pulled the wool over his eyes pre merger..
This is not only high drama it is a metaphor for the shift in our economy…a head to head matchup b/w commercial banking heavyweight Ken Lewis and the welterweight of Wall St, John Thain..and don’t evah forget Thain is a Golden Slacks alumnae, that makes him Golden donchaknow…in Vegas odds I give it to Thain…
had this been Jamie Dimon going up against Thain, then I would have said hands down Dimon wins it….but Lewis doesn’t have that certain ‘je ne sais quoi’ of Jamie…Lewis is still on his way OUT as CEO..believe it…
The media has attempted to cast Thain in the role of poster boy for Wall St malfeasance, and that expense report on his office didn’t help, even Obama mentioned it for cripes sake..yeah methinks Thain is pixxed and not going down alone..
KEN LEWIS COME ON DOWN!!!
CNBC Maria Bartiromo got an exclusive interview with Thain, we will post linkys as available, Thain also wrote a memo, the ultimate tool in CEO Jousting..the MEMO!!
He said he had been “completely transparent” with Bank of America and pointed out that the acting chief financial officer of his businesses had been Bank of America’s chief accounting officer.
“They learned about these losses when we did,” he wrote. “The acting CFO of my businesses was Bank of America’s former Chief Accounting Officer. They had daily access to our (profit and losses), our positions and our marks. Our year end balance sheet target (which we more than met) was given to us by Bank of America’s CFO.”
Read The Memo here:
To my Merrill Lynch colleagues:
It has been an honor to lead this company over the last very difficult year. The decisions that I made were always with the best interests of our shareholders and employees above all. I believe that the decision to sell to Bank of America was the right one for our company and our clients. While the execution has been difficult, I still believe in the strategic rationale of the transaction and I wish you all the best for the future of the combined companies.
I want to address several topics that have been inaccurately reported in the press. The first issue is our year end bonus payments. Our 2008 discretionary bonus pool was 41% lower than 2007. The size of the pool, its composition (cash and stock mix), and the timing of the payments for both the cash and stock were all determined together with Bank of America and approved by our Management Development and Compensation Committee and our Board. The total bonus pool was also substantially less than the amount allowed under our merger agreement.
-snip-
The final topic is the expenses related to my office. The $1.2 million reported in the press was for the renovation of my office, two conference rooms and a reception area. The expenses were incurred over a year ago in a very different environment. Nonetheless, they were a mistake in the light of the world we live in today. I will therefore reimburse the company for all of the costs incurred.
I thank all of you for your hard work and your support over the past year. I wish you all success in the future.
John
Can anyone accurately guess the price of that parchment trashcan?? If you said $1,200.00 you win!!!
Hey I’m a shareholder don’t I even get any TURTLE WAX???
Update: CNBC reports…And the Beat goes on…the beating in Housing that is….
CNBC Video Update on the prior month release, November’s prices, and December housing starts:
Courtesy of RealDealNews:
David Crowe, senior staff vice president of the National Association of Homebuilders, Mark Zandi, chief economist at Moody’s Economy.com and CNBC’s Diana Olick discussed home purchase stimulus options on CNBC yesterday, in the wake of new data about the drop in home prices and new home starts in 2008. David Crowe argues that a temporary tax credit for home purchases will help to stimulate the housing market.
Yes, housing values have dropped another 15% …shocker!!..uhm NOT…We knew this was coming..where oh where is our HOLC??..once again declines in housing values outpace expectations for a whopping 15% drop in median home price nationwide year over year…we at MiM have been clanging the alarm bell on housing since 2005…our arms are tired ..where the hexx is the action on mortgage modification and foreclosure mitigation???
when will I–I-I-I- see HOLC…..sing it Linda..
And the beat goes on… Team Obama is pushing energy today…let’s hope this team gets a housing rhythm soon…they are WAAY off target to fix this economy…the list of job losses he read off (CAT-20,000; Home Depot 8,000 etc) will NOT be helped by increasing fuel efficiency standards peeps…
here is a laugh for today, cause we sure as hexx need one if Team Obama is this far off target…(and his energy legislation has daycare in it, earmark? who me earmark? I mean MiM is all for daycare but that is a frakin earmark baby)
I am sure the bankrupt auto makers are simply thrilled with this move coming now..good Gawd…I mean this is nonsensical…do this in a year, not NOW…Oh there ya go, GM announcing another few thousand layoffs in OH and MI and shutting in plants for an additional period…
the ever-brilliant MSM has decided to focus on the ‘surprise’ jump in home sales last month..completely missing the enormous JUMP in Deeds in Lieu of Foreclosure that is sweeping the nation..we call it Jingle Mail….CNBC reports:
A real estate group says sales of existing homes rose 6.5 percent from November to December, closing out the worst year for the U.S. real estate market in more than a decade…
But THIS is the real news to follow:
The median sales price plunged to $175,400, down 15.3 percent from $207,000 a year ago.
The price drop represented the largest decline since the NAR started keeping records and probably the largest since the Great Depression, Lawrence Yun, NAR chief economist told reporters.
That was the lowest price since May 2003 and the biggest year-over-year drop on records going back to 1968.
And how do homeowners FEEL about their home values? Cause ‘everybody knows’ that it is that ephemeral FEELING that leads the consumer to spend or not to spend and THAT is the question….CNBC:
The record 61 percent of homeowners saying their home price fell last year suggests the worst housing market since the Great Depression is less likely to rebound before 2010, according to the survey.
Foreclosures will continue to escalate as home equity keeps falling below outstanding mortgage balances, and homeowners will remain intent on rebuilding their savings and reserve funds, the survey said.
But what can we do? PUT A FRAKIN FLOOR IN THE HOUSING MARKETS!!! IT’S TEH HOUSING STOOPID!!
*sigh*
well, the Case-Schiller Index is out this week and should scare the hexx out of everyone so perhaps we will have Geithner in by then and he will make a move…but we are beginning to suspect that Team Obama may have plans to wait…
Here is our worry at MiM, we are concerned that perhaps Obama plans to WAIT for the announcement of TARP 2, which is already funded and which WILL at least partially go to housing..anywho we think he may plan to WAIT to make a move on TARP Deux until AFTER the stimulus plan is passed..that isn’t until the end of FEBRUARY!!!
But, he likely doesn’t want to give the GOP ammo to use on the floor during the debate on the stimulus, ie, wahh wahh we just saw another 350billion in TARP used to no avail wah wah wah…
these are the same yahoos who put NO strings on the first 359 bill which is why NONE of it went to ameliorate the housing CRISIS, yeah its a frakin crisis ‘member?
…good gawd save us from these politicians…
for anyone who missed the carnage, here is the Case-Schiller Index report from December 30, 2008, brutal, just brutal…via CNN Money, the LAST Case Schiller Index was SOOO bad everyone, MiM included, expected ACTION on housing out of the gate from PEBO…
The latest Case-Shiller numbers provide more ammunition to Washington policy makers who want to do more to fix the housing mess, according to Jaret Seiberg, an analyst with the Stanford Group, the policy research firm.
“These data just add to the tremendous pressure on the president-elect and the Democrats to stimulate housing,” he said. “That means more lucrative tax incentives and broad foreclosure prevention. All of this will likely be in the stimulus plan that Congress adopts in January.”
Nicholas Retsinas, Director of Harvard University’s Joint Center for Housing Studies, agrees. “Housing problems are at the core of our economic problems,” he said, “yet, of the government interventions made during 2008, few were focused on housing.”..
where is the housing action??
-cricket-
-cricket-
Instead Obama is today announcing he plans to allow each state to set their own emissions standards, so P.S. Gas is going back up peeps, yeah how I wish I could buy it up and store it now…WTH is all this focus on ENERGY right now while housing is falling off a frakin cliff and gas is so low?? THIS is NOT the current crisis!! FIX THE HOUSING!!!
Get What You Need….
There was a definite lesson and pattern from the universe visible in the political world this past week…some grasp the lesson and ‘bloom where they’re planted’ and some pixx and moan and miss the point and any opportunity to be productive or happy ….a-hem….I am learning and some truly incredible individuals like Hillary are demonstrating the way it’s done…the Stones say it in a way I totally dig :0)
The Secret of Gratitude, something like that, the serenity to know what can be changed, accept what can’t, give the universe your all wherever it puts you, the way of the water, deep stuff like that….the universe rewards those who embrace what life gives them the way Hillary does…yep…
Love ‘The Big Chill‘, one of our all time favorite films… trivia, Lawrence Kasdan also wrote what Lucas film….The Empire Strikes Back and Jedi! oh snap! and the good Indiana Jones films as well…his name should be celebrated more methinks….Hey you can even apply the lesson of Kevin Costner whose role in the Big Chill was totally cut in editing (he was Alex whose funeral we see), but Kasdan then cast him in the lead in Silverado as recompense which launched his career in I think, a bigger way, he owned that role in Silverado….bloomin where you’re planted..kewl..
anywho… embracing where we are and what we are given while we can, a lovely and I betcha, fulfilling, way to live….
Freddie Mac hits up Treasury for another chilly 30b….
Friday night news drop…if we can’t get the frakin HOLC we need to get out of this housing morass when we already own Fannie and Freddie and are still pumping billions into them..well, then why even bother with a stimulus, just go to Clan of the Cave Bear economic models….
CNBC via AP:
Mortgage finance company Freddie Mac said Friday it will need an additional $30 billion to $35 billion in government aid as it copes with losses on loans the company backed during the U.S. housing bubble.
-snip-
It comes on top of the $13.8 billion the company received last year after it was seized by the government. Sibling company Fannie Mae has yet to request any such aid but has warned it may need to do so.
Federal regulators seized control of both companies in September after they faced mounting losses from the housing market’s bust. An agreement with the Treasury Department allows the government to invest up to $100 billion in each company…
We need the frakin HOLC and we need it like a year ago….
More dithering on what to do, what to do, while property values continue to decline at an accelerated pace, signaling the need for an intervention to all but the blind banks who are fighting a losing battle…let’s just put on our Darryl Hannah makeup and be done with it…
Congressional Dems are going all “mau mau on CBO for scoring the stimulus unfavorably” (Kudlow video fascinating debate on the stimulus tonight with Dean Baker here)…they are having it rescored….the markets (and MiM) expected PEBO team to hit the ground running with a plan …for weeks we have seen them gathering in a gaggle of genius….but nothing until February 20th….no signal to the markets for cap gains or dividend treatment in 2010…nada…hand me the black eyeliner….
The banks have gotten themselves into this mess and sadly taken all of us down with them…In fact, their obstinacy in modifying mortgages will result in a bigger hit for them as Dems legislate bankruptcy cramdowns of mortgages….if they expect continued recapitalization form this Congress I hope to hexx they are ready to write off some principal on these loans for underwater homeowners…in CA, FL NV and AZ…a-hem…
The Obama administration last week said it would “commit substantial resources of $50-$100 billion to a sweeping effort to address the foreclosure crisis,” through a variety of initiatives, including the TARP program, whose funding thus far has gone entirely to propping up banks.
Depending on whom you ask, that’s either way too much money or far too little.
“I think it’s too much. What would you do with it?” says Christopher Mayer, a real estate expert and vice dean at Columbia University’s business school, who recently testified before the House Financial Services Committee’s hearing on using TARP funding for foreclosure relief.
“A $100 billion is not a lot, given what the federal government is on the hook for,” says Edward Pinto, who was chief credit officer at Fannie Mae and now runs a consultancy. “The meter is running and it is going to increase.”
Pinto estimates foreclosure losses could be as high as $800 billion over the next 4-5 years.
Many plans, but finally someone is forcing action, and Frank has Maxine Waters D-CA who was burned by Paulson and Kashkari on TARP One at the lead with legislation to force the implementation of Sheila Bair’s FDIC model, via CNBC:
“Mortgage loan modifications have been an area of intense interest and discussion for more than a year now,” FDIC COO John F. Bovenzi recently told Congress. “Meanwhile, despite the many programs introduced to address the problem, it continues to get worse.”
-snip-
In addition there is no shortage of new proposals, from government loan guarantees or outright purchases of mortgages to dramatic changes in bankruptcy laws to incorporate home foreclosure.
-snip-
The “Systematic Foreclosure Prevention and Mortgage Modification Act of 2009” would seek to modify 2.2 million mortgages, about half of the non-GSE loans expected to become a problem in 2009. Under the plan, the government would share up to 50-percent of the loss, if the loan redefaults.
Ode to Caroline Kennedy on her not winning the NYS Senate seat…
Since Caro’s peeps are running about flailing wildly at any excuse for her not getting the seat, and dragging Gov Paterson through the mud to do so..well Caroline needs to get off the stage now…
this says it all for us, and it comes to us from the beautiful people of NY, Farmingdale specifically:
courtesy of 2007 upload by TheApeMan73:
Vince Neil doing a great version of the Motley Crue hit ‘Don’t Go Away Mad (Just go away)’. Great show at a great place – Crazy Donkey is THE place to see a show on Long Island – great room with great sound.
Blago Presser at 3:00pm EST…
Yes the Byronic Blago is Back!!
FOX will cover it LIVE
This morning in a 45 minute radio interview Governor Blagojevich indicated that ultimately at some point, he wants to call witnesses in his defense including Rahm Emanuel and Valerie Jarrett as well as JJ Jr…since he plans to boycott the Senate Impeachment perhaps that will ultimately happen in a criminal trial, should he be impeached…
You KNOW they are gritting their teeth in the WH…
From the Chicago Sun-Times:
The governor’s radio appearance kicked off what’s expected to be a media blitz that could include appearances on national news networks within the next several days. Blagojevich signaled he has no plans to show up in Springfield on Monday for the start of his impeachment trial if the rules don’t change.
The wide-ranging interview touched on everything from his profanity-laced tirades that were secretly recorded by the FBI (“I apologize for some of the profanity, but had I known they were listening I wouldn’t have used those words,” he said.) to his mental state (“I feel my mental state’s where it’s always been. You can judge whether or not that’s a good place or a bad place.”) to whether he feels betrayed by his friends and other Democratic politicians (“This experience is an experience in the human condition in a highly pressurized environment with big stakes involved. . . . There are several elements in an experience like this that’s painful and very unfortunate.”)…
-snip-
Blagojevich reiterated statements he made yesterday that rules governing his trial are unfair and that he would like to call several witnesses to defend him, including White House Chief of Staff Rahm Emanuel and President Obama’s senior adviser Valerie Jarrett. He also said he’d like to call U.S. Rep Jesse Jackson Jr. (D-Ill.) and even U.S. senators Edward Kennedy (D-Mass.) and John McCain (R-Arizona), who he says had worked closely with him.
“Just let me bring my witnesses in to show people, and to have them under oath testify before the Senate, that I have not done anything wrong, and I’ve done most things right,” the governor said. “If they just give me a chance to bring witnesses, I’ll be there first thing Monday morning.”…
…”I think the fix is in,” he said “They’ve even put in a date where the trial is going to end. How can you do that if you’re going to be fair?…He also said, “I can be soldier in the fight for constitutional rights.”
the presser should be fascinating, Blago always is, I look forward to more poetry from the ‘soldier in the fight for constitutional rights’…Blago is taking no prisoners in interviews if this is any indication:
…On Mayor Daley, Cook County Board President Todd Stroger and House Speaker Michael Madigan (D-Chicago): The governor said raising cash for his campaign fund “was important because I knew from the beginning . . . that if I was going to be in a position to take them all on . . . then I needed to be in a position politically where I could afford . . . afford to say to Mayor Daley and Mike Madigan No, I’m not Todd Stroger. I’m not going to raise the sales tax because you guys have a bunch of precinct captains in county government. No, sorry, I’m not going to raise the income tax because the city of Chicago gets a portion of that and that would be unfair and burdening working people.”More on Stroger: “I’ll tell you why there’s a lot of business leaving Cook County. It’s because of Todd Stroger’s sales tax increase.”…
Breaking: Kirsten Gillibrand is the New Jr Senator of NY!!! Thank you Gov Paterson!!!!
Here they come! It’s her it’s her!! WOOHOO!!!!!!!!
Al D’Amato is on the stage I am going to take a wild leap and hit publish now it must be Kirsten!!!…
Rep. Gillibrand and Hillary in 2006
Governor Paterson just made the announcement!!
covered by FOX LIVE here, the noon presser…here is a lady we need for this seat!!!! Have we mentioned this is the candidate Hillary supported for the job? And you KNOW how we at MiM love moderates, a Blue Dawg Dem is Gillibrand… :0) And we think it is just AWESOME that Rep. Gillibrand has a brand new baby, LOVE it when a mom gets promoted. Children are NOT a bar to a successful career and Governor Paterson knows it! Rep. Gillibrand is the only NY Dem who voted against the 700b TARP boondoggle FYI, not easily pressured is Gillbrand. :0)
Please thank Governor Paterson if you are in NYS:
David A. Paterson
State Capitol
Albany, NY 12224518-474-8390
ginaswo
