Archive for Obama Administration

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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Obama Administration – Conflict of Interest Alert – Larry Summers

Once again, it is revealed that President Obama’s administration has proved less than stellar compared to his campaign promises of changing Washington DC.  Since swearing into office and to uphold the duties for which he was elected for, President Obama has made dubious decisions in choosing the appropriate people to fill the top posts in his administration.  Many were marred with tax scandals as they appeared before Congress and some had to withdraw their nominations due to allegations of unpaid taxes or great conflict of interests.  Even within 24 hours of declaring a new policy to stem conflict of interest, he had to make an executive exception to the nominated Deputy Director of Defense William Lynn, a former Raytheon executive.

The latest scandal to hit the Obama administration is Larry Summers, who has now reported receiving millions of dollars from the very same industry and corporate entities which he is assisting with his policy and regulatory advice to President Obama and Congressional leaders.  It was already with great controversy that Treasury Secretary was nominated given criticism that he failed as the President of the NY branch of the Federal Reserve system to watch over the financial system and avoiding collapse.  In addition, Geithner faced also back tax scandals.

Many critics believe that between Summers and Geithner, the two are a power couple that are too close to the industry to be impartial and to do what is right for the country and all Americans.  Meanwhile, the US Government is spending trillions in an unprecendeted effort to save the financial system.  But really, have other simpler, less costly to the American taxpayers and more effective been really explored or even contemplated?

Write to President Obama and demand for change and transparency.

Summers Earned Millions in D.E. Shaw Salary, Bank Speech Fees

By Timothy J. Burger and Kristin Jensen

April 4 (Bloomberg) — Lawrence Summers, director of President Barack Obama’s National Economic Council, earned millions working at a hedge fund and speaking to banks such as Citigroup Inc. that later received taxpayer bailout money.

Hedge fund D.E. Shaw & Co. paid Summers more than $5 million in salary and other compensation in the past 16 months, according to a financial disclosure form released by the White House yesterday. Summers served as a managing director at the New York-based firm. Summers, a former Treasury secretary, also earned more than $2.7 million in speaking fees.  [Read Full Article]

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Team Obama’s Summers & Geithner’s “White” Wash of Bailout Banks to Avoid Bankruptcy Proceedings

While President Obama is jetting throughout Europe, more bad economic news have hit the fan.  Joblessness continue to be on the rise with sign of slowing, services provided by states such as unemployment benefits previously extended are quickly depleting, state and local taxes on the rise with fiscal budget deficits, and retirement and pensions plans are under pressure due to drop in value and the lack of contributions.

Critics continue to berate the Team Obama economic plan and its ability to solve the crisis as home prices continue to fall and there is lack of marketability of toxic assets to investors other than the banks themselves.  In the latest critical comments offered by experts, the supposed bank stress test move is nothing more than a “scam”, a white wash placebo to calm the American people.  This critique comes quickly on the heels of the news that FASB will relax and make changes to their “mark to market” accounting rules.

How long will American voters and taxpayers wait for results despite trillions of their money are going out the door to failed private corporations?  Take this poll.

The bank stress tests currently underway are “a complete sham,” says William Black, a former senior bank regulator and S&L prosecutor, and currently an Associate Professor of Economics and Law at the University of Missouri – Kansas City. “It’s a Potemkin model. Built to fool people.” Like many others, Black believes the “worst case scenario” used in the stress test don’t go far enough.

He detailed these and related concerns in a recent interview with Naked Capitalism. But Black, who was counsel to the Federal Home Loan Bank Board during the S&L Crisis, says the program’s failings go way beyond such technical issues. “There is no real purpose [of the stress test] other than to fool us. To make us chumps,” Black says. Noting policymakers have long stated the problem is a lack of confidence, Black says Treasury Secretary Tim Geithner is now essentially saying: “’If we lie and they believe us, all will be well.’ It’s Orwellian.”

The former regulator is extremely critical of Geithner, calling him a “failed regulator” now “adding to failed policy” by not allowing “banks that really need desperately to be closed” to fail. (On Saturday, Geithner said on Face the Nation, if banks need “exceptional assistance” in the future “then we’ll make sure that assistance comes with conditions,” including potentially changing management and the board, but did not say they’d be shut down.)

Black says the stress test must also be viewed in the context of Geithner’s toxic debt plan, which he calls “an enormous taxpayer subsidy for people who caused the problem.” The fact bank stocks have been rising since Geithner unveiled his plan is “bad news for taxpayers,” he says. “It’s the subsidy of all history.”

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