Glenn Beck: Rep. Manzullo on Geithner Regulatory Power Expansion….

Courtesy of Rep. Manzullo

March 31, 2009. Tags: , , , , , , , , , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, Uncategorized. Comments off.

Beltway Chatter: Tim Geithner’s (*Paulson’s) plan;Obama Budget and AIG ‘bonus shock and awe’ campaign, TOTUS Spring Tour Continues ..

Krugman gives the Treasury toxic asset plan two thumbs down, he didn’t like it when Hank Paulson tried to sell it many moons ago with TARP One, neither did we, LOL…Billions later we are laughing with the tears of a taxpaying clown….

The Geithner plan has now been leaked in detail. It’s exactly the plan that was widely analyzed — and found wanting — a couple of weeks ago. The zombie ideas have won. The Obama administration is now completely wedded to the idea that there’s nothing fundamentally wrong with the financial system —

Treasury has decided that what we have is nothing but a confidence problem, which it proposes to cure by creating massive moral hazard. … And I fear that when the plan fails, as it almost surely will, the administration will have shot its bolt: it won’t be able to come back to Congress for a plan that might actually work.

Krugman  on further review of the plan:

Why was I so quick to condemn the Geithner plan? Because it’s not new; it’s just another version of an idea that keeps coming up and keeps being refuted. It’s basically a thinly disguised version of the same plan Henry Paulson announced way back in September.

Krugman today on the plan.

Sen. Gregg confirms CBO is right, (ironic no?) and says Obama Budget will bankrupt us:

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March 22, 2009. Tags: , , , , , , , , , , , , , , , . Economy, Finance, Motown, Music, Obama Administration, Politics, TARP, Taxes, Wall St. Comments off.

And Then There Were None: H Rodgin Cohen withdraws from consideration for Deputy Treasury Secretary…

One little, two little, three little Indians….

Breaking on FOX Chyron…

H Rodgin Cohen withdraws his name from consideration

See our post on Cohen here

Treasury Secretary Timothy Geithner lost his second top deputy pick in as many weeks to the Obama administration’s vetting process, a source told FOX News on Thursday.

A senior Senate Democratic aide told FOX News that H. Rodgin Cohen, a partner in the New York law firm Sullivan & Cromwell, has withdrawn from consideration.

ABC News first reported that Cohen dropped his bid after an issue arose in the final stages of the vetting process.

…Film clip courtesy of wolfeyesmariah. Go to Wolf’s channel for the rest of the film..

The movie to the Great book by agatha Christie, And then there were none! And yes, I know. they totally ruined the book, they changed the names, and the ending. O_O And a few other things… But hey, what can you do? Still a good ending. ^^

March 12, 2009. Tags: , , , , , , , , , , , , . Economy, Entertainment, Film, Finance, Politics, Popular Culture, Taxes, Uncategorized. 1 comment.

Deputy Treasury Secretary Nominee Rodgin Cohen, AIG, Goldman Sachs and “What’s Really Scaring Wall St.”

Airtime: Fri. Mar. 6 2009 | 5:04 PM ET The inside scoop of what’s happening at the Treasury, with CNBC’s Charlie Gasparino.

Vodpod videos no longer available.

Kudlow and Gasparino are pretty excited here about WOTS that Rodgin Cohen is being vetted for Deputy Treasury Secretary. WSJ is also excited about it. But several noted voices on the street have a totally different view and note connections to the counterparty risk on AIG ie Golden Slacks, and really can’t we all agree until AIG counterparties are released to the public no more GS employees running Treasury, please?

A MUST READ is Barry Ridholtz’ piece in the Big Picture:

My recent tirade against bailing out the hedge fund half of AIG makes much more sense when you consider who is actually getting all of the taxpayer largesse: Counter-parties of AIG, especially one Goldman Sachs. Some estimates have been in excess of $25 billion to GS.

As AIG ran into the arms of the Fed for the first of 4 bailouts, Bloomberg reported:

“As much as $37 billion from federal bailout loans to American International Group Inc. has gone to investment banks including Goldman Sachs Group Inc., the firm Treasury Secretary Henry Paulson used to run.

-snip-

Could Goldman Sachs dig in any deeper at Treasury?

Yes they can. Over at naked capitalism, Yves has the story of yet another highly conflicted Treasury nominee, Sullivan & Cromwell chairman H. Rodgin Cohen:

Sullivan & Cromwell has long been the outside counsel for Goldman, and outside counsel is a vastly more important role for a securities firm than just about any other type of business. In the stone ages, when I worked for a few years at Goldman, certain S&C partners had so much clout at Goldman that they could get a mid-level banker fired. And even then, “Rodg”, head of the banking practice, was a very influential figure at Goldman.

All for the greater glory of Goldman . . .

From Naked Capitalism:

So Cohen is not only deeply tied to entrenched interests, but he plays a ruthless game, with a mild manner that would lead you not to suspect him of that sort of behavior.

In case you think this reaction is extreme, some e-mail comments from reader Marshall:

We should operate from the assumption that Geithner will always surround himself with the most awful Wall Street cronies imaginable. He’s totally captive to that ideology. This Administration is going to make Warren Harding’s Administration seem like a convention of nuns by comparison.

WSJ has another view entirely:

The news shook us like a thunderclap: banking-lawyer-extraordinaire H. Rodgin Cohen is being considered for a high-ranking role in the Treasury Department. A move would likely mean a departure — at least for now — from Sullivan & Cromwell, where the legendary Cohen has hung his hat for nearly 40 years.

Reports WSJ: “Treasury has identified and is vetting other people for top slots, including H. Rodgin Cohen, chairman of Sullivan & Cromwell LLP and advisor to virtually every firm on Wall Street, for the deputy secretary position, two people familiar with the matter said.”

We placed a call to Cohen, but have yet to hear back.

As noted in this WSJ profile of Cohen last year, he spent one stretch of the fall —“five weeks in hell,” as he put it — advising Fannie Mae, Lehman Brothers., Wachovia, Barclays, AIG, J.P. Morgan and Goldman in a “blitz of mergers, rescues and cash infusions.” Largely for this, he was awarded a, um, highly-coveted slot as one of the LB’s newsmakers of the year.

IOW Cohen knows where the bodies are buried because he helped bury them all.

There was a point at TARP One when it first failed the House when I wanted someone like that.  Not any more, not after the shxtstorm of plans coming down the pike in the Obama Budget, please no more raids.

We do feel under attack, because the middle class is taking it from both sides;  the top clutching their hands around the last vestiges of wealth, while the social engineers in the Capitol plan to take the secret ballot and unionize the country,  will we or nil we, leaving the middle class gasping for oxygen and space in the shrinking economy. Where the hell is the non government GROWTH in the 10 yr Obama Budget?

If they would leave us alone we would buckle down and cut back and get through it like Americans always do, at this point I don’t want any more of their ‘help’, it mostly seems to involve injecting tons of liquidity into institutions that refuse to sell toxic assets for what vultures capital will pay, while the government shovels cash straight from the Federal Reserve with no taxpayer input via Congress, directly into the gaping maw that is the black hole known as AIG.

All to cover the counterparty losses to the very firms who wrote the stupid toxic instruments, ie Goldman Sachs.

Why don’t we call the bluff and try to go it alone now? After throwing 11 trillion in and seeing no end in sight the government needs to force the banks to sell the assets at whatever the vultures will pay, take the losses so we can get past this.

Clearly Team Obama, in their zeal for socialized medicine and welfare programs is afraid to look TOO socialistic upfront on the banks.

They like a more backdoor socialization model which they are working on the stimulus and budget levels, so they won’t do the ONE aspect of socialism that needs doing, taking the banks like the RTC did with Bill Seidman in the 80s selling off the bad paper and putting it back out healthy and whole…

Ironic no?

March 9, 2009. Tags: , , , , , , , , , , , , , . Politics. 1 comment.

CITI tries to raise cash…PEBO to keep Kashkari on for TARP…(Congressional Critters Heads explode/snark off)

Well, this is unbelievably tone-deaf IMO. They are off their game at Camp PEBO…Congressional Dems (or GOP for that matter) cant STAND Kashkari or anything having anything to do with Paulson and the switch n bait anything but housing approach of TARP. It needs a new face, and Geithner and Summers ain’t new. Send Sheila Bair, we all love Sheila Bair :0)

From WSJ:

Timothy Geithner, President-elect Barack Obama’s pick for Treasury Secretary, has asked Neel Kashkari and James Lambright to remain with the Obama team for several weeks to assist with the transition, these people said.

The decision to keep two members of Treasury Secretary Henry Paulson’s team, even for a short period, could rile lawmakers angry over Mr. Paulson’s handling of the $700 billion bailout. The Obama administration is working to revamp the financial rescue and erase some of the stigma associated with the bailout.

Oops! no idea how that got in there, maybe b/c Prince John and Cousin Hiss remind me of Hank Paulson and Neel Kashkari…..(courtesy of Walt Disney and loubear)

Paulson and later the ever-polite, self-effacing henchman Kashkari (another Golden Slacks, I mean Goldman Sachs executive) who appeared on the Hill with absolutely no good reason why they would not implement Sheila Bair’s (of FDIC) housing plan…

Wow, really, this is in error. Just today Barney Frank was appearing on CNBC, see our video sidebar, talking about the implementation of new harsh requirements to access TARP Tranche Deux by the incoming Administration.

They were burned BAAAD in the long con by Hank and now they have to see Kashkari again? We need the damn thing to pass! Oh good gawd, anything Kashkari presents is going to be slammed down HARD by these Congress Critters and who the hell can blame them?

(more videos of Kashkari before Congress after the break)

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January 9, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , , , . Cabinet, CITI, citigroup, Economy, FDIC, Finance, Foreclosures, Hillary Clinton, Housing, Labor Department, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. 3 comments.

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