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Citigroup Three Card Monty Policy on Executive Compensation

One would think that under the Obama administration of “greater transparency and accountability” that the 36% government owned Citigroup would wise up to the fact taxpayers are no longer tolerating huge compensations for, well absolutely nothing in return for shareholders but massive risk taking and losses.
Today, the NY Times reported that many of the bailed out banks who have received and continue to possess taxpayers’ money are looking for ways to divert previous “bonus” money to their base salaries.  No matter how they funnel money into the pockets of Wall St fat cats, they are simply raping their shareholders and taxing people who struggle to keep their jobs, their homes and pay their taxes.
Then why wouldn’t President Obama, Treasury Secretary Geithner, Senator Dodd and Congressperson Barney Frank do something about?
Even at the behest of taxpayers not to bailout failed businesses, the previous and current administration also failed to elect directors to the board of Citigroup!  How can that be?  36% shareholder and no representation on the Board of Directors.
Say what?
Doing a little research, you can easily detect the international political underpinnings to Citigroup.  Citigroup is made up of large concentration of foreign investors, mainly Middle East and Far East money.  A royal Saudi prince is the single largest shareholder as well as other various investment groups in the Middle East and Singapore.
So it is this writer’s opinion that because of the money ties to the Middle East, the current administration have no issue in bailing these people out with taxpayers’ money and at the same time, let them decide what to do with that money, even if it means it never makes it back to the taxpayers with interest.

One would think that under the Obama administration of “greater transparency and accountability” that the 36% government owned Citigroup’s Board and senior executives would wise up to the fact taxpayers are no longer tolerating huge compensations for, well absolutely nothing in return for shareholders but massive risk taking and losses.  Wrong!

Today the NY Times reported Citigroup as well as other banks that received and continue to possess taxpayers’ money are looking for ways to divert previous “bonus” money to their base salaries.  No matter how they funnel money into the pockets of Wall St fat cats, they are simply raping their shareholders and taxing people who struggle to keep their jobs, their homes and pay their taxes.

Then why wouldn’t President Obama, Treasury Secretary Geithner, Congressional leaders such as Dodd and Frank do something about it given the tough rhetoric during campaigning?

Even at the behest of taxpayers not to bailout failed businesses, the previous and current administration also failed to elect directors to the board of Citigroup!  How can that be?  36% shareholder and no representation on the Board of Directors of Citigroup?

Say what?

Doing a little research, you can easily detect the international political underpinnings to Citigroup.  Citigroup is made up of large concentration of foreign investors, mainly Middle East and Far East money.  A royal Saudi prince is the single largest shareholder as well as other various investment groups in the Middle East and Singapore.

So it is this writer’s opinion that because of the money ties to the Middle East, the current Obama administration has no qualms in bailing these foreign investors out of failed Citigroup with taxpayers’ money but simultaneously let Citigroup decide what to do with that money, even if it means taxpayers’ money never making it back to the taxpayers with interest.

How’s that for fiduciary responsibility post Madoff and Stanford?

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Bailout Costs = $42,105 for every man, woman and child in the U.S.

When will the US government stop the senseless bailout of failed financial institutions and their greedy insiders?

When will the US government demonstrate they value the taxpayers and the voters more than the “too big to fail” financial corporations?

When will the US government put the same amount of money towards people who pay the taxes and those that have lost the jobs, homes and their dignity of no fault of their own?

Jobless rates are rising higher and so are home foreclosures. President Obama argued that Bush’s “trickle down approach” has failed. So how is giving trillions to financial corporations to help the economy not a trickle down approach?

ADP Job Report for March 2009

Europeans are protesting their anger towards failings of  government and corporate leaders.

Financial Rescue Nears GDP as Pledges Top $12.8 Trillion (Update1)

By Mark Pittman and Bob Ivry

March 31 (Bloomberg) — The U.S. government and the Federal Reserve have spent, lent or committed $12.8 trillion, an amount that approaches the value of everything produced in the country last year, to stem the longest recession since the 1930s.

New pledges from the Fed, the Treasury Department and the Federal Deposit Insurance Corp. include $1 trillion for the Public-Private Investment Program, designed to help investors buy distressed loans and other assets from U.S. banks. The money works out to $42,105 for every man, woman and child in the U.S. and 14 times the $899.8 billion of currency in circulation. The nation’s gross domestic product was $14.2 trillion in 2008.

President Barack Obama and Treasury Secretary Timothy Geithner met with the chief executives of the nation’s 12 biggest banks on March 27 at the White House to enlist their support to thaw a 20-month freeze in bank lending.

“The president and Treasury Secretary Geithner have said they will do what it takes,” Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said after the meeting. “If it is enough, that will be great. If it is not enough, they will have to do more.”

Commitments include a $500 billion line of credit to the FDIC from the government’s coffers that will enable the agency to guarantee as much as $2 trillion worth of debt for participants in the Term Asset-Backed Lending Facility and the Public-Private Investment Program. FDIC Chairman Sheila Bair warned that the insurance fund to protect customer deposits at U.S. banks could dry up because of bank failures.

‘Within an Eyelash’

The combined commitment has increased by 73 percent since November, when Bloomberg first estimated the funding, loans and guarantees at $7.4 trillion.

“The comparison to GDP serves the useful purpose of underscoring how extraordinary the efforts have been to stabilize the credit markets,” said Dana Johnson, chief economist for Comerica Bank in Dallas.

“Everything the Fed, the FDIC and the Treasury do doesn’t always work out right but back in October we came within an eyelash of having a truly horrible collapse of our financial system, said Johnson, a former Fed senior economist. “They used their creativity to help the worst-case scenario from unfolding and I’m awfully glad they did it.”

Federal Reserve officials project the economy will keep shrinking until at least mid-year, which would mark the longest U.S. recession since the Great Depression.

The following table details how the Fed and the government have committed the money on behalf of American taxpayers over the past 20 months, according to data compiled by Bloomberg.

===========================================================
                                  --- Amounts (Billions)---
                                   Limit          Current
===========================================================
Total                            $12,798.14     $4,169.71
-----------------------------------------------------------
 Federal Reserve Total            $7,765.64     $1,678.71
  Primary Credit Discount           $110.74        $61.31
  Secondary Credit                    $0.19         $1.00
  Primary dealer and others         $147.00        $20.18
  ABCP Liquidity                    $152.11         $6.85
  AIG Credit                         $60.00        $43.19
  Net Portfolio CP Funding        $1,800.00       $241.31
  Maiden Lane (Bear Stearns)         $29.50        $28.82
  Maiden Lane II  (AIG)              $22.50        $18.54
  Maiden Lane III (AIG)              $30.00        $24.04
  Term Securities Lending           $250.00        $88.55
  Term Auction Facility             $900.00       $468.59
  Securities lending overnight       $10.00         $4.41
  Term Asset-Backed Loan Facility   $900.00         $4.71
  Currency Swaps/Other Assets       $606.00       $377.87
  MMIFF                             $540.00         $0.00
  GSE Debt Purchases                $600.00        $50.39
  GSE Mortgage-Backed Securities  $1,000.00       $236.16
  Citigroup Bailout Fed Portion     $220.40         $0.00
  Bank of America Bailout            $87.20         $0.00
  Commitment to Buy Treasuries      $300.00         $7.50
-----------------------------------------------------------
  FDIC Total                      $2,038.50       $357.50
   Public-Private Investment*       $500.00          0.00
   FDIC Liquidity Guarantees      $1,400.00       $316.50
   GE                               $126.00        $41.00
   Citigroup Bailout FDIC            $10.00         $0.00
   Bank of America Bailout FDIC       $2.50         $0.00
-----------------------------------------------------------
 Treasury Total                   $2,694.00     $1,833.50
  TARP                              $700.00       $599.50
  Tax Break for Banks                $29.00        $29.00
  Stimulus Package (Bush)           $168.00       $168.00
  Stimulus II (Obama)               $787.00       $787.00
  Treasury Exchange Stabilization    $50.00        $50.00
  Student Loan Purchases             $60.00         $0.00
  Support for Fannie/Freddie        $400.00       $200.00
  Line of Credit for FDIC*          $500.00         $0.00
-----------------------------------------------------------
HUD Total                           $300.00       $300.00
  Hope for Homeowners FHA           $300.00       $300.00
-----------------------------------------------------------
he FDIC’s commitment to guarantee lending under the
Legacy Loan Program and the Legacy Asset Program includes a $500
billion line of credit from the U.S. Treasury.

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More Corporate Greed on Its Way But Not in Financial at Least on the Surface

Eddie Lampert ex-Goldman Sach’s Executive Turned Hedge Fund Founder…A Retail Genius?

Sears Holdings, the third largest US retailer, on Thursday highlighted the growing pressures it will face this year from mandatory payments to its pension plan, following the steep decline in asset values seen last year.  The retailer said that it had made cash contributions of $224m to its pension plan in its financial year ending on January 30, as it seeks to meet federal requirements to ensure that pensions are fully funded by 2011.

….However, Mr Lampert also called on Congress to ease pension plan regulations to give companies additional time to make required cash contributions to make up losses caused by the financial turmoil….

So basically, Lampert wants help to bailout his obligations to employees or find some loophole to stiff the employees after he has taken over Sears using his ESL Hedge Fund and ran it into the ground.  Of course Wall St and the financial analysts calls him the next Warren Buffett at the time.

Sears under Lampert’s leadership has performed miserably ever since he has assumed the role of its Chairman.  Many retail experts believes he simply doesn’t understand how to be a retail operator.  Even when the stock has shed 80% of its value,  Eddie Lampert continues to play the blame game but himself.

Meanwhile, “Venture capitalist William “Bill” Ackman, founder and CEO of investment and hedge fund firm Pershing Square, has announced to the chagrin of Target’s board and management that he shortly will wage a proxy battle for control of the discount-store giant.”, as reported by “Weekly Retail Fix” of Retailing Today.  Ackman’s hedge fund has accumulated 10% of Target’s stock since April 2007 and is attempting to muscle its way into the company’s board.  What does Target executives and current board think?

We are disappointed that Pershing Square has decided to pursue a costly and disruptive proxy contest, especially in light of our previous dialogue. Target has a long history of being responsive to shareholders and has engaged in numerous discussions with Pershing Square over a 20 month period.

So you think Government should be sympathetic and soft on regulation?  Is leverage of a perfectly healthy company such as Target in the best long term interests of shareholders, the economy, and American employment?

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