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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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AIG Versus Its Owners – the American Taxpayer

Clearly AIG’s CEO, Board of Directors and its senior executives have no concept of reality.  The company is 80% owned by the US taxpayers and AIG runs like it’s their private golf club and spa.

Let’s tally up the facts.
AIG
  • Former AIG CEO MauriceGreenberg spends $20 million of AIG money on US Chambers to lobby Congress for deregulation post Enron and turns AIG into an international hedge fund according to American Association for Justice case study.
  • In 2008, over $112,000 of campaign contributionwas given to the Obama Presidential campaign by AIG employees according to OpenSecrets.org
  • In 2008, over $73,000 of campaign contribution was given to Chris Dodd’s campaign by AIG employees according to OpenSecrets.org
  • In 2008, over $44,000 of campaign contribution was given to Hillary Clinton’s campaign by AIG employees according to OpenSecrets.org
  • Federal Reserve Bank in September of 2008 under Bernanke lends insolvent AIG $85 billion with White House and Treasury Secretary Paulson support.
  • AIG has access to various other lending facility including $40 billion of TARP that brings the total to $165-175 billion as of March 2009
  • In March 2009, Bernanke admits being frustrated by AIG problems as AIG reports $62 billion loss in most recent quarter of operations and over $100 billion in 2008 making it the worst lost in US Corporate history.
  • AIG reveals $12.9 billion was paid to Goldman Sachs using Federal taxpayer money due to CDS obligations. Former Treasury Secretary Hank Paulson was the former CEO of Goldman Sachs.
  • Bonus of $165 million is to be paid to AIG executives making 73 of its employees (past or present) of the business division responsible for massive financial losses instant millionaires. A total of $450 million is to be paid to various employees (past or present) for 2008 performance despite the company lack of financial viability.

Average Taxpaying American
  • US job loss in 2008 is net 2.6 million
  • US job loss in 2009 at 22,135 per day or 1.3 million as of end of Feb.
  • Foreclosures nationwide are at all time high according to Sacramento, Calif.-based Foreclosures.com. The company said 121,756 foreclosures were completed nationwide in Feb ‘09, up from 72,694 in Jan and the previous high of 104,243 in Sep ‘08
  • U.S. household wealth falls $11.2 trillion in 2008 according to Federal Reserve data.
  • U.S. income is about $39,000 per capita in 2007

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Paulson’s TARP Promises…He’s Laughing All the Way to the Bank

You remember this:

September 23, 2008

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and this.

December 18, 2008

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This week, Elizabeth Warren, chairwoman of the Congressional Oversight Panel for the bailout funds, told the Senate Banking Committee that Treasury in 2008 paid $254 billion and received assets worth about $176 billion.

On Monday, we’re going to hear from new US Treasury Secretary Geithner a new plan.  I sure hope it doesn’t involve more money.  God help us.

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