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Bad News For Goldman: Senator Sanders Proposes Legislation Naming TBTF Firms, Demands They Be Broken Up Within A Year
Following up on the Kanjorski news earlier, it is now Senator Bernie Sanders who is set to anger PETA with his desire to disembowel pristine examples of cephalopodean vampyrrhic perfection. The Senator has revealed legislation which requires the AIG-bailout mastermind Tim Geithner to name banks "whose collapse may shake the economy" and break up these firms in a year. Look for some serious flight or flight sympathetic/parasympathetic ganglia to be going like gangbusters in the dorsal column of various bloodsucking marine creatures. After all who'd a thunk that the willing victims of daily monetary rape would have the guts to stand up for themselves (and if things are accelerating now, wait until Main Street learns that the average Goldman employee is getting paid about $750,000 for 2009).
More from Bloomberg:
The legislation would give Geithner 90 days to list the
commercial and investment banks, hedge funds and insurance
companies deemed “too big to fail.” Those firms would be
broken up within a year, he said. Representative Paul Kanjorski,
a Pennsylvania Democrat, is considering a measure in the House
that would break up large financial firms.
As Zero Hedge has long been recommending, firms that are TBTF or that have attained monopoly status in various market verticals (of which Goldman Sachs is a shining example), deserve to be split into their component pieces, and/or receive comparable anti-trust intervention. At the end of the day, what was good for Ma Bell in the 1980's, should be perfectly suitable for bloodsucking parasites.
Yet the inevitable push to gut any such proposals seems to not be generating much steam, even with Barney Frank's complicity:
Kanjorski, chairman of a House Financial Services Committee
panel on capital markets, this week said he was preparing a
measure giving the government power to break apart large firms.
“Nowhere in the world in the future will there be gigantic
tsunamis coming out of nowhere and striking the entire world’s
economy,” he said on Nov. 4.
The Kanjorski measure would amend Chairman Barney Frank’s
draft legislation that creates a regulator council to monitor
the economy and firms for systemic risk. The committee today
considered proposals to change Frank’s measure, and the chairman
has said a final vote by members is scheduled Nov. 20.
“Discussion of breaking up large financial institutions
that pose systemic risk to the market is gaining traction on the
Hill,” FBR Capital Markets analysts led by Paul Miller said in
an investor note Nov. 4. “This legislation is currently in its
infancy, and Congress has a number of difficult questions to
answer before anything can move forward.”
And who is the most vocal opponent to such legislation: why the Federal Reserve of course, even though the Fed is not a topic of discussion here. But who is, is the Fed's holding company: one Galactic Government Sachs.
Federal Reserve Governor Daniel Tarullo said Oct. 21 the
idea of breaking up large institutions is impractical, calling
it “more a provocative idea than a proposal.” Instead, he said
any firm that may pose a risk should be subject to stricter
oversight. Former Fed Chairman Alan Greenspan on Oct. 15 said
regulators should consider breaking up systemically risky firms.
Don't worry Fed, your time is coming. There will be much greater things you need to worry about than the survival of your various Wall Street masters...Just give it some time.
h/y Richard
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Don't worry Fed, your time is coming. There will be much greater things you need to worry about than the survival of your various Wall Street masters...Just give it some time.
Well said.
not reported yet, but Geithner has already seized the proverbial bull by the horn and broken up a TBTF named United Security in Sparta, Georgia.
Don't worry Fed, your time is coming.
Dare to dream. Given that congress is bought, I don't know how this can happen, unfortunatley.
I don't know how this can happen,
* law of unintended consequences
* for every action, there is a reaction
* exogenous events
* mr. efficient market (rumors of his death have been exagerrated)
I just don't see it.
Yes. Sanders is a troublemaker and rabblerouser. He will be silenced. It's a National InSecurity issue.
If the Soviet Union can end, so can the Federal Reserve.
Not a problem. Mel Watt (bought and paid for) will make sure that the bill is eviscerated. Happy days will continue for all bankers, indefinitely.
Haven't your heard, GS in no longer considered TBTF, and as such, would not be affected by any such legislation.
Props to Bernie Sanders and welcome to bizarro world, where the capitalists of wall street have become fascists, and the socialists of vermont have become capitalists.
http://sanders.senate.gov/newsroom/news/?id=b8b8fce1-60b9-4a4b-9bd8-a774761b2182
Federal Reserve Governor Daniel Tarullo said Oct. 21 the idea of breaking up large institutions is impractical, calling it “more a provocative idea than a proposal.”
Provocative idea? ING, RBS, Lloyds... sounds more like a proposal to me...
http://www.huffingtonpost.com/robert-teitelman/europe-the-us-and-breakin_b_348640.html
Alexandria, VA - November 23, 2009 - Reuters has received word that Senator Bernie Sanders, known for his attempts at financial reforms, was found dead in his Alexandria home last night, apparently of a heart attack. A spokesman for the Senator said that the Senator had on his calendar a dinner with an executive with Wall Street powerhouse Goldman Sachs to discuss the Senator's recent proposals...
That's odd.I heard he commited suicide with a chainsaw.
and aspirin
No, he fell on a knife 14 times
Like all other legislation, it'll be squashed like a day trader or be watered down worse than Gitmo detainee.
Good one!
I hope they include GE Capital while they are at it.
Also, maybe we can get these over zealous pretzel haters to attack banks: http://www.businessinsider.com/ftc-ends-worries-of-us-pretzel-cartel-200...
Ron Paul Is Asking For Your Help, HR 1207 'Has Been Gutted'
http://dailybail.com/home/ron-paul-is-asking-for-your-help-hr-1207-has-b...
video of paul asking you to contact specific people so bill isn't gutted.
watch this clip (of all people) Maxine Waters go after Timmay on Too Big to Fail and watch him squirm at these October 29 hearings
http://www.c-spanvideo.org/program/ID/214595&start=3349&end=3576
what did he do to piss her off that she would go after him like that - in earlier hearings she fawned over him and he sucked right up - this time she just goes for the jugular
Thanks for the link but where was the part where she goes for the jugular? If she really wants to break up the TBTF then she should just say so. As for Barney Frank, he is all smoke and mirrors. In the back pocket of the bankstas. Proposing a bill that does nothing and trying to bamboozle everyone in to thinking he did something.
if you've ever watched Maxine in these hearings she is typically incoherent and/or talking up some special interest in her district - thus the look of stunned bewilderment on Timmay's face as she was not only aware of the concept of 2big2 fail but presisted in her demands for a list of who they are
Where is Maxine in here election cycle? Where is Barney? This might explain some "stances" folks are taking.
What? Sanders didn't get his monthly "envelope" from Goldman, so he pulls this stunt? OK, so they will double whatever he was getting.
don't even go there Anon. He doesn't take loot from the bankstas. unions, hell yeah, but no banks.
http://www.opensecrets.org/politicians/contrib.php?cid=N00000528&cycle=2010
The Fed should be included in the TBTF category and broken up, er wound down.
http://en.wikipedia.org/wiki/Bernie_Sanders
Check out his PIC...hilarious...
dewd, we don't need eye candy. we need some politicians who will work to save our country.
They shoulda just shown a picture of his crotch since the guy is the only one in Congress with any balls.
Prosecutors can break up the criminal activity at the "too big to fail" firms right now! Legislation would put the nail in the coffin, but prosecutors can act now.
We need Racketeer Influenced and Corrupt Organizations Act (RICO) prosecutions and mass trials in style of the Maxiprocesso (Maxi Trial) of the Mafia in Sicily during the mid-1980s that resulted in hundreds of defendants convicted. We need RICO confiscations of the hundreds of billions in illegal "profits" from the criminal enterprises of the banks, mortgage industry, and Wall Street Mafia.
The only thing that has any hope of stopping the continual rape and pillage of the investors, pensioners, city and state funds, and taxpayers is to see the entire Wall Street crime family along with co-conspirators at the Fed, Treasury and SEC arrested and perp walked in handcuffs to federal and state jails. Now. Not a year from now.
Is there a prosecutor who is hungry for scungilli, and becoming a national hero?
I agree totally and I would add that unless we send the criminals to jail our economy and country are doomed.Not a poor outlook or systemic trouble but total doom.If the elite of the culture are allowed any longer to run amok, it is only a matter of time before everyone else begins to run amok as well.We are a nation of laws or....we will descend into anarchy.Speaking personally, I would prefer not to descend into an indefinite dystopian nightmare of epic proportions just so the scumbags that are robbing us all blind can continue until the system implodes, but that's just me.
Yes, prosecution is the first priority. Prosecution and hard time for Wall Street criminals.
Does he really need 90 days identify them and new regulations.
There should some organization able to file for anti trust laws right instead of only govt?
The Fed should be either public or private, not a "quasi-governmental institution," run by financiers chiefly in their own interests. Since there is no way to make a government's central bank private since it has the power to issue currency, it must be public. While I don't trust politicians any more than I trust banksta's, at least politicians are accountable to the public in regular elections.
Or third option: non-existent.
Goldman is a piece of work. Now they get the swine flu drug before hospitals??
By MarketWatch
NEW YORK (MarketWatch) -- Some big Wall Street banks are girding against the swine flu, but a flap over how the firms got the vaccine will make them miserable.
The public is outraged about reports that Citi /quotes/comstock/13*!c/quotes/nls/c (C 4.06, 0.00, 0.00%) , Goldman Sachs Group Inc. /quotes/comstock/13*!gs/quotes/nls/gs (GS 172.00, +0.22, +0.13%) and Morgan Stanley /quotes/comstock/13*!ms/quotes/nls/ms (MS 32.59, -0.01, -0.03%) along with other big New York employers, received hundreds, even thousands, of H1N1 vaccine doses before hospitals and other healthcare providers, many of which have run out of the precious drug. See full story.
ReutersA spokeswoman for New York City's Department of Health said firms like Goldman are important outlets for reaching at-risk adults.
Clearly someone from the health department should visit a hospital or doctor's office. They might discover that those are also excellent places to reach sick people or those at-risk.
because they run the government silly.
Will this be the final outrage...the 10-ton straw that breaks the back of Wall Street?
Goldman Sachs, Citi, etc. are pigmen, swine. Of course they need to be treated first!!
+1
Geithner, Paulson et al only needed about a minute and a half to determine who was owed by birthright as much money as children yet unborn could ever hope to pay. Indeed, Paulson threatened Financial Armageddon if his three page draft memo demanding $700 billion was not signed in a day.
Seems to me 90 days is rather generous. That being said, just as the Bloomberg FOIA request will not be settled until the Second Coming (or First depending on your own particular superstition), Geithner will get this extended at least until he reaches puberty and has his growth spurt.
No fuckin' chance, sorry.
"Got you in a stranglehold baby, better cross your legs !"-Ted Nugent
Quote from Rupert Murdoch in todays Weekend Australian/Herald Sun: "(President) Obama actually wants to cut the even more exclusive G8 to a G4 - and really, to a G2; just the US and China,"
Aussies are getting perky of late. Rupert is their Buffett. I think they like watching Big Bro walk into a wall. Dysfunction is ugly....but amusing nonetheless.
That's the problem when your have a PM like ours running around the world stage getting his capabilities mixed up with his ambitions.
Here's the thing: I have have little to no respect for anything manufactured by GM, but if I ever heard about a car salesman who made $750,000 in commissions selling Chevys or Buicks I'd say, "Way to go, brother; somebody's got to move those chassis." But in the case of Goldman et al. what are they really moving other than the "currency" of pixels and bytes?
You people are lost! CIT is the test subject. The only way to eliminate CDO's and CDS from the Banks portfolio is through a pre-packaged BK. C is next. C is next......
I just like how he talks to them like they are 1st graders.
This is how the economy works, don't fuck with it... trust me. It's actually horrible how well he skates their questions.
"C is in TROUBLE." What are you suggesting they do? Uhhhh I would be happy to go in detail as would the chairman of the fed and go thru exactly the conditions that have been put on a range of institutions. To make sure they emerge from this safer through this not relying on taxpayer money. but I wanna emphasize one IMPORTANT thing, since I came into this offer we've had 70B in cap. come back through the system. (Isn't that like 1/10th of TARP?)
"Do you have a list?"(of bad institutions) I do not have a defined list today.
"In this legislation, do you have the authority to bail out?" No.
"Describe what you have?" I have the authority to separate the bad from the good. To sell the good businesses, what happens to the bad?
What if they're all bad?
I like how he talks about a bailout authority for i-banks without a taxpayer loss, and he makes it sound like he's shooting for an FDIC guarantee but they shouldn't pay for it up front.... REALLY?
I'm moving to Canada.
Daines, the Head of Health and Human Services for the state of NY mandated seasonal flu and H1N1 vaccinations for all NY healthcare workers. Healthcare workers revolted. Additionally a NY radio personality uncovered the fact that Daines wife works for GS. Enough said.
In tomorrow's Sunday Times
"'I'm doing God's work.' Meet Mr Goldman Sachs" http://www.timesonline.co.uk/tol/news/world/us_and_americas/article6907681.ece