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Failure Of Obama's Pet ShoreBank Costs Taxpayers $368 Million, Which Immediately Goes To Goldman Sachs Among Others

Tyler Durden's picture


After a lengthy attempt to bail out his pet bank, ShoreBank Chicago, Illinois, which included several alleged armtwisting episodes by the administration, the president has finally let the bank die (with its assets valued at about 50% of face). Yet instead of going to hell, it was immediately resurrected with a bevy of new owners, among them Goldman, Morgan Stanley, and BofA, all of whom received nearly $400 million in taxpayer money for their "generosity" to keep the bank zombified even in the afterlife.

Some details on the bank from the FDIC press release: "As of June 30, 2010, ShoreBank had approximately $2.16 billion in total assets and $1.54 billion in total deposits." In other words, the value of ShoreBank's assets was well below 70% of face, if the bank was undercapitalized at its current deposit level. Continuing: "The FDIC and Urban Partnership Bank entered into a loss-share transaction on $1.41 billion of ShoreBank's assets. Urban Partnership Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $367.7 million." Netting the incremental cost of taxpayer DIF subsidies, means that the real value of assets was ($1.54 billion - $367.7 million)/$2.16 billion or 54% of face. And this is a bank that Obama wanted to keep alive at all costs? And just who is this "Urban Partnership Bank" that is receiving a taxpayer subsidy of $368 million? Why all the usual suspects of course: "The significant investors in Urban Partnership Bank are American Express Company, Bank of America, Citigroup, Ford Foundation, GE Capital Equity Investments, Inc., Harris Bank, the John D. and Catherine T. MacArthur Foundation, JPMorgan Chase & Co., Key Community Development Corp., Morgan Stanley, Northern Trust Corporation, PNC Investment Corp., State Farm Mutual Automobile, The Goldman Sachs Group, Inc., and Wells Fargo & Company." And so the old "out-of-one-taxpayer-pocket-and-into-another-Wall-Street-pocket" game continues, only this time it includes administration darling banks that should have been liquidated long ago.

By keeping ShoreBank artificially alive for far longer than it deserved, the assets amortized far more than they would have had it been taken into receivership by a non-conflicted bank, and thus the final cost to taxpayers would have been far less.

As it stands, Goldman and 11 other banks are receiving a multimillion dollar gift to conduct a portfolio liquidation run-off of ShoreBank's assets, while merely making sure existing deposits are serviced. At least we now know just how truly angry at Wall Street Obama is.

The funniest bit: this is how efficient the auction process was (from the press release):

FDIC received only one bid, which included an asset discount of $146 million and a 0.5 percent deposit premium. This saved the FDIC’s insurance fund $250 million to $334 million over liquidation.

This also padded the top line of the abovementioned banks by $368 million off the bat, over and above whatever they make as they collect the proceeds from the portfolio run off.

In other words, Wall Street's core banks could have come up with any bid they wanted, and the FDIC would have had no choice but to fund the difference, because the alternative would be, gasp, so much scarier. Hm, where have we heard this before.

Full press release (link) and supplemental information (link) to this latest taxpayer gift to Wall Street's kleptocrats.


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Fri, 08/20/2010 - 19:47 | 534045 digalert
digalert's picture

It still brings a smile.

Fri, 08/20/2010 - 22:42 | 534278 Michael Victory
Michael Victory's picture

This week Jim Puplava & John Loeffler explore the questions surrounding conspiracy.

Conspiracy Weekend:


Sat, 08/21/2010 - 10:30 | 534622 Careless Whisper
Careless Whisper's picture

@ Michael Victory

Is that the same "Ford Foundation" that employed Barry's mother in Indonesia? The same "Ford Foundation" that employed Timmay's dad (Peter Geithner) in Indonesia, who just happened to be Barry's mom's boss at the time?


Sat, 08/21/2010 - 01:16 | 534412 knukles
knukles's picture

This is About Covering Up Corruption.

For those of us Chicago denizens or ex-pats, it's common knowledge that ShoreBank has been a facilitator of political shenanigans and money flows (probably much of a more than questionable ilk) which with the purchase and receivership by the FDIC any records related thereto simply disappear into the bowels of the US Government, never ever to be seen again.

Try Rezko, SEIU and the myriad associated powers that be in Chicago and by extension the entire state of Illinois including the machine's every last single elected representative in DC.

A potential source of embarrassment has with the strike of a pen, disappeared.  Why else would an institution is such dire straights have been labored over so assiduously from such high governmental levels aided by the standard cast of financial enablers when it should have otherwise just have been another participant on the FDIC's failure list?  Why the angst and machinations?   

Sat, 08/21/2010 - 05:12 | 534510 nobita
nobita's picture

thread hijack:

Julian Assange is wanted by swedish police for supposedly raping two women in stockholm.

Assange has denied the charges.

Sat, 08/21/2010 - 07:38 | 534537 Hephasteus
Hephasteus's picture

Haha. Man that guy has got them really pissed off. By the time they get through attacking them they won't have enough credibility to get a visa from goldman sachs or a payday loan from the rothchilds.

Sat, 08/21/2010 - 08:35 | 534563 MarketTruth
MarketTruth's picture

REMEMBER: Within the USA whistleblowers get suicided/arkancided while scam artists get billions in taxpayer money.

Sat, 08/21/2010 - 13:27 | 534886 TraderTimm
TraderTimm's picture

They get "Tubbed" - as in Matthew Simmons... even if it was a coincidence, sure was interesting that the next trading day in BP was the peak, and it has been going down ever since on the daily chart...


Sat, 08/21/2010 - 11:26 | 534766 Roi
Roi's picture

And then it was dropped... (swedish goverment source)

Sat, 08/21/2010 - 18:36 | 535228 longontents
longontents's picture

The rotten stench of a set-up wafts through mine naval passages.  Dropped?!  What?!  Why?!

Sat, 08/21/2010 - 18:39 | 535230 longontents
longontents's picture

Droped?!  What?!  Why?!  This man is dangerous and must be stopped by any means necessary, including set-ups and false allegations. 

Sat, 08/21/2010 - 08:23 | 534554 johngaltfla
johngaltfla's picture

And of course, all banks seized by the FDIC are immune from FOIA requests to "protect the confidential nature of the bank's customers" which is very convenient now that Ravens Wood Bank and ShoreBank, the two institutions that had ties to El Presidente are now under FDIC protection. Gee, no reason to think that there's any funny business going on, no way!

Fri, 08/20/2010 - 19:53 | 534055 MeTarzanUjane
MeTarzanUjane's picture

Is Maxine Waters the 'head' teller?

Fri, 08/20/2010 - 20:14 | 534075 nmewn
nmewn's picture

OneUnited Bank...along with Bwaney.

Da chickensza are a comin roooostaaah ;-)

Fri, 08/20/2010 - 21:53 | 534210 New_Meat
New_Meat's picture


Sat, 08/21/2010 - 07:28 | 534533 nmewn
nmewn's picture

Unbelievable ain't it?

Back on ShoreBank for a minute more before we get too distracted by the anal retentive qualities of Bwaney & was late and I wasn't sure I could trust my eyes...but it's true...

William Farrow, the COO & President of ShoreBank at the time of it's collapse is the President of Urban Partnership Bank the aquiring bank? 

Nothing like taxpayers being slapped in the face and law enforcement seeing the whole thing and approving of it before the assault.

Sat, 08/21/2010 - 11:07 | 534696 bigdumbnugly
bigdumbnugly's picture

yeah, too much for me to swallow too, nmewn.  (this is a job for bwaney frank!)

if u can't call bullshit on this u can't call bullshit on anything.


Sat, 08/21/2010 - 16:29 | 535102 mynhair
mynhair's picture

The entire crew 'acquiring' Shorebank are the same as Shorebank.

An ACORN by any other name, is still an ACORN.

Long live the 'weatherization' scam!

Sat, 08/21/2010 - 16:36 | 535112 New_Meat
New_Meat's picture

do they have weather when they are underground?

Sat, 08/21/2010 - 17:15 | 535159 mynhair
mynhair's picture

Forecast sez:  very gusty, with chance of Van Jones explosions.

And that other guy.....

Sat, 08/21/2010 - 01:32 | 534428 G-R-U-N-T
G-R-U-N-T's picture

"OneUnited Bank...along with Bwaney".

Here's a visual on what Obama, and Bwaney might look like United, and One...


Sat, 08/21/2010 - 04:52 | 534507 cossack55
cossack55's picture

Maxine did not qualify for teller since she had trouble differentiating between a $5 FRN and a $100 FRN.  Claims she can only think about money in terms of billions and trillions.  So, thru Affirmative Action she became CEO.

Fri, 08/20/2010 - 19:57 | 534060 Robslob
Robslob's picture

Obama Bin Ladin King of American Distruction!

This message brought to you by:  American Express Company, Bank of America, Citigroup, Ford Foundation, GE Capital Equity Investments, Inc., Harris Bank, the John D. and Catherine T. MacArthur Foundation, JPMorgan Chase & Co., Key Community Development Corp., Morgan Stanley, Northern Trust Corporation, PNC Investment Corp., State Farm Mutual Automobile, The Goldman Sachs Group, Inc., and Wells Fargo & Company


Sat, 08/21/2010 - 00:39 | 534384 TeresaE
TeresaE's picture

You forgot the other sponsers.


NEA, federal pensioners, AARP, GE, Soros, UAW, Brazil, China & Mexico.


It ain't just the banks getting our money, well, debt.

Sat, 08/21/2010 - 09:33 | 534589 boooyaaaah
boooyaaaah's picture

All the while the banksters are collecting monthly mortgage payments from the silent majority of taxpayers --- eventhough their property values have shrunk --- and may be underwater -- if they ever went out on the market to sell


The banksters collect and if the mortgage payers stop paying on a losing investment they are declared credit risks ----the scarlet letters "CR"-- by the very same banksters and rating agencies that got us all into the mess in the first place

Meanwhile taxes and currency debasing are used to line the pockets of the corrupt system


Mic 6:10-13
10 Am I still to forget, O wicked house,
your ill-gotten treasures
and the short ephah, which is accursed?
11 Shall I acquit a man with dishonest scales,
with a bag of false weights?
12 Her rich men are violent;
her people are liars
and their tongues speak deceitfully.
13 Therefore, I have begun to destroy you,
to ruin you because of your sins.

Rev 6:5-6

5 When the Lamb opened the third seal, I heard the third living creature say, "Come!" I looked, and there before me was a black horse! Its rider was holding a pair of scales in his hand. 6 Then I heard what sounded like a voice among the four living creatures, saying, "A quart of wheat for a day's wages, and three quarts of barley for a day's wages, and do not damage the oil and the wine!"







Fri, 08/20/2010 - 19:57 | 534061 faustian bargain
faustian bargain's picture

but...but...full faith and credit...and stuff like that...

When are they going to drop this whole 'DIF' charade? ok don't answer that.

Fri, 08/20/2010 - 20:52 | 534066 Village Idiot
Village Idiot's picture

Who is going to handle the MSM expose' on this farce?!   *crickets chirping*

Fri, 08/20/2010 - 22:16 | 534248 No One
No One's picture

the same MSM who didn't really look into tarp and how Goldman made out with billions???


It's nice to live in a country run by the 5 largest banks.



Sat, 08/21/2010 - 01:25 | 534422 knukles
knukles's picture

Bunny rabbits, butterflies, soft fluffy clouds, clear clean water, April showers, budding flowers, unicorns shitting rainbow colored skittles, 20% unemployment rate, deflation, vast looting of the Department of Treasure, endless wars nobody can any longer explain, Patriot Act and warrantless wiretapping still there, rendition program still going strong, shredding of the Bill of Rights, habeas corpus and posse comitatus, gubamintal and MSM truth and honesty, these are a just a few of my favorite things.

Sat, 08/21/2010 - 19:39 | 535279 nmewn
nmewn's picture

Figgered I'd let the thread calm down a little before saying...

"Bunny rabbits, butterflies, soft fluffy clouds, clear clean water, April showers, budding flowers, unicorns shitting rainbow colored skittles,"

is probably the funniest damn thing I've seen around here in awhile...LOL.

Can I get a primal scream for no big screen TV miraculously appearing in living rooms across America, mortgage payments being paid by someone else (no scratch that) and  tanks being filled with gasoline as if by magic?

Sat, 08/21/2010 - 06:38 | 534522 aheady
aheady's picture

...and one bank to rule them all.

Sat, 08/21/2010 - 14:17 | 534931 Freebird
Freebird's picture

...without a budget...

Sat, 08/21/2010 - 14:54 | 534984 New_Meat
New_Meat's picture

and in DC to bind them.

Sat, 08/21/2010 - 11:21 | 534747 Eally Ucked
Eally Ucked's picture

At least you know how much GDP has on down side!

Fri, 08/20/2010 - 22:25 | 534259 RockyRacoon
RockyRacoon's picture

No problem.  I hear FOX has a documentary guy who could do it.  You know, the one who single-handedly brought down ACORN.  That should cover about a week's worth of newsworthiness.

Sat, 08/21/2010 - 07:31 | 534534 Treeplanter
Treeplanter's picture

He's not part of Fox.  Fox was the only media outlet that thought this story was newsworthy.  It turned into an embarrassment for the Obama media.

Sat, 08/21/2010 - 17:26 | 535165 mynhair
mynhair's picture

'That should cover about a week's worth of newsworthiness.'

But only on FOX.  You have an outlet that does more?

'Course all this Sat, their bottom screen graphics only covered the first 2 FL banks.

Sat, 08/21/2010 - 17:16 | 535161 mynhair
mynhair's picture

Beck, of course.  Gotta crow.

Fri, 08/20/2010 - 20:07 | 534067 Clycntct
Clycntct's picture

Hey does anybody have a towel to help me clean up what I just threw up all over my notebook.

This is very sickening. I'm very ill now must lay down and take a shot.

 Jose Cuervo is that you calling? Help

Fri, 08/20/2010 - 21:58 | 534220 New_Meat
New_Meat's picture

Dude, you need a docking station, towel over the valuable CPU itself, shower curtain over the separate VDU.

Then, and only then, can you read posts here.  Why? B/C in the comming months, well, you'll want to keep the food internal, and projo won't do.  For several reasons.

But, projo will come,  and, well, you'll need to keep that machine alive.

- Ned

Fri, 08/20/2010 - 20:08 | 534068 mikla
mikla's picture

In other words, Wall Street's core banks could have come up with any bid they wanted, and the FDIC would have had no choice but to fund the difference, because the alternative would be, gasp, so much scarier.

Um... Wall Street's core banks *did* come up with any bid they wanted.

There was only one bid.

And twelve banks colluded conspired cooperated to split the carcass.

Fri, 08/20/2010 - 20:11 | 534074 mikla
mikla's picture

Oh, and wait until Denninger starts chewing on this (which at this point is imminent).

He's long complained (rightly so, as has William Black) that if the FDIC followed the Prompt Corrective Action Law (the law, as in "their job"), then it would be impossible to close a bank with a loss to the taxpayer (because banks are supposed to be shut down the moment they breach minimum capital reserve requirements).  The fact that they breach capital reserve requirements, and then breach solvency (resulting in a taxpayer loss), can only mean the banks committed fraud in reporting their financial position, which should mean jail time for somebody.

Fri, 08/20/2010 - 20:22 | 534083 nmewn
nmewn's picture

(because banks are supposed to be shut down the moment they breach minimum capital reserve requirements).


I'm thinkin the regulators were watching porn again. Apparently no law against that if your a Federal employee doing it at work.

Fri, 08/20/2010 - 23:08 | 534307 Mitchman
Mitchman's picture

So much for Sheila Bair's reputation.

Sat, 08/21/2010 - 04:46 | 534506 jeff montanye
jeff montanye's picture

i doubt seriously if the decision is made at her level.

Sat, 08/21/2010 - 04:56 | 534508 cossack55
cossack55's picture

Waiting for "Chair Bair" to become "Electric Chair Bair".  Hopefully, there will be a long line behind her corrupt ass.

Sat, 08/21/2010 - 11:26 | 534763 Eally Ucked
Eally Ucked's picture

Reputation? She is one of THEM.

Sat, 08/21/2010 - 17:27 | 535173 mynhair
mynhair's picture

Bair is just another dupe, I fear.  Else why close any of these bogus banks?

Sat, 08/21/2010 - 01:00 | 534399 anonnn
anonnn's picture



Sat, 08/21/2010 - 16:53 | 535130 mikla
mikla's picture

Aaaaaaaaaaaand there he goes.  Really, it's quite tame by Denninger standards.  Apparently the numbers don't add up.  Who would have guessed?;-ShoreBank.html

He's probably waiting for the next shoe to drop on this particular transaction ... and I'm guessing there are a centipede's worth of shoes there.

Sat, 08/21/2010 - 17:30 | 535177 mynhair
mynhair's picture

The big shoe is:  Key Community Development Corp.

Fri, 08/20/2010 - 20:10 | 534071 nmewn
nmewn's picture

Is RICO to strong a word?

Fri, 08/20/2010 - 20:21 | 534082 Village Idiot
Village Idiot's picture


Fri, 08/20/2010 - 21:39 | 534178 zhandax
zhandax's picture

Well, not for committing fraud which leads to taxpayer losses.  I am not sure RICO covers criminal negligence or treason which more closely fit watching tranny porn instead of supervising the fraudesters in question.

Sat, 08/21/2010 - 08:50 | 534568 Waterman Jim
Waterman Jim's picture

Or WACO.... ?


Fri, 08/20/2010 - 20:17 | 534078 Battleaxe
Battleaxe's picture

Nothing to see here. Everybody just move along. Nobody got hurt, except for the over the hill clericals that will never find another job, and the american taxpayers, of course. To all of the "principals", this was a very lucrative payday, just like every other day is.

Fri, 08/20/2010 - 20:25 | 534085 Village Idiot
Village Idiot's picture

obama cronies to american public - IN YO' FACE!

Fri, 08/20/2010 - 20:33 | 534091 DocLogo
DocLogo's picture

...the John D. and Catherine T. MacArthur Foundation


I guess being "dedicated to a more just, verdant, and peaceful world" doesn't include being against theft.

Fri, 08/20/2010 - 22:57 | 534295 Fred Hayek
Fred Hayek's picture

That post is a work of genius.  Some foundation should give you a grant or something.

Fri, 08/20/2010 - 22:26 | 534262 David449420
David449420's picture

Too expensive.

Rope.  Lamppost.

One Bankster, one Lamppost.

One Politician, one Lamppost.

Fri, 08/20/2010 - 23:40 | 534348 Ms. Erable
Ms. Erable's picture

+2 funny. Every time I drive to the office and pass each street lamp, I think, "lawyer... banker... politician... lawyer... banker... politician...". The trip to the office is 9 lawyers, 8 bankers, and 8 politicians (just on one side of the street).

Sat, 08/21/2010 - 08:55 | 534572 Waterman Jim
Waterman Jim's picture

rope too expensive,

just plop one ontop of each lamppost,

Dracula style



Sat, 08/21/2010 - 10:08 | 534608 divide_by_zero
divide_by_zero's picture

Do it like China, charge the family for the bullet.

Sat, 08/21/2010 - 20:23 | 535338 laughing_swordfish
laughing_swordfish's picture

I do the same thing...

Each lamppost a politician, every tree limb a bankster, and every time I see a wrought iron picket fence I get visions of Vlad Tepes....

Sat, 08/21/2010 - 15:46 | 535050 ATTILA THE WIMP

Wood chippers.

Sun, 08/22/2010 - 15:34 | 536287 Hulk
Hulk's picture

Ya have to let em dry out first...

Fri, 08/20/2010 - 20:44 | 534101 putbuyer
putbuyer's picture

Fuck'n Cramer ads again. I am sick of his fuck'n face!!!

I keep click'n, but this ahole never goes away.

Fri, 08/20/2010 - 20:48 | 534113 Battleaxe
Battleaxe's picture

I'm going to show you a picture, and you tell me what that person might say.
Let's Begin
[Changes to a slide with two people looking at a peacock]
"Isn't the plumage beautiful?"
I'm supposed to say what the other person would say?
Yes, just tell me the first thing that comes to your mind.
Cabbages, knickers, It hasn't got A BEAK!
[Changes slides to a man climbing into a naked woman's bedroom]
"What do you want?"

No time for the ol' in-out, love. I've just come to read the meter!
[Changes slide to woman handing bird eggs to a man] "You can do whatever you like with these.
Eggiweggs. I would like... to smash them. And pick them up, and THROW-
[moves injured arm]
OW! Fucking hell! So did I pass?

Fri, 08/20/2010 - 22:27 | 534263 Gully Foyle
Gully Foyle's picture


Holden: You're in a desert, walking along in the sand, when all of a sudden you look down...
Leon: What one?
Holden: What?
Leon: What desert?
Holden: It doesn't make any difference what desert, it's completely hypothetical.
Leon: But, how come I'd be there?
Holden: Maybe you're fed up. Maybe you want to be by yourself. Who knows? You look down and see a tortoise, Leon. It's crawling toward you...
Leon: Tortoise? What's that?
Holden: [irritated by Leon's interruptions] You know what a turtle is?
Leon: Of course!
Holden: Same thing.
Leon: I've never seen a turtle... But I understand what you mean.
Holden: You reach down and you flip the tortoise over on its back, Leon.
Leon: Do you make up these questions, Mr. Holden? Or do they write 'em down for you?
Holden: The tortoise lays on its back, its belly baking in the hot sun, beating its legs trying to turn itself over, but it can't. Not without your help. But you're not helping.
Leon: [angry at the suggestion] What do you mean, I'm not helping?
Holden: I mean: you're not helping! Why is that, Leon?
[Leon has become visibly shaken]
Holden: They're just questions, Leon. In answer to your query, they're written down for me. It's a test, designed to provoke an emotional response... Shall we continue?

Fri, 08/20/2010 - 23:19 | 534325 Cheyenne
Cheyenne's picture

I'll tell you about my mother...

Sat, 08/21/2010 - 10:09 | 534609 divide_by_zero
divide_by_zero's picture

Look up "hosts file", never see him again

Fri, 08/20/2010 - 20:53 | 534118 Battleaxe
Battleaxe's picture

Profit with Cramer!

Fri, 08/20/2010 - 20:49 | 534117 jomama
jomama's picture

wow i am so shocked

Fri, 08/20/2010 - 20:59 | 534130 The Methanizer
The Methanizer's picture

Does anyone know what outfit Michelle Obama was wearing today? Don't forget to include what footwear she was sporting!

Fri, 08/20/2010 - 22:00 | 534223 New_Meat
New_Meat's picture

mumu-she is so stylish

Fri, 08/20/2010 - 23:42 | 534350 Ms. Erable
Ms. Erable's picture

I hear it's the in-thing with the Wookie set.

Fri, 08/20/2010 - 23:45 | 534353 lance_manion
lance_manion's picture

Naw, she's all predator.

Sat, 08/21/2010 - 01:28 | 534425 knukles
knukles's picture

Oh, that's just wrong!

Sat, 08/21/2010 - 17:33 | 535182 mynhair
mynhair's picture

She needs a mumu to disguise that truck butt she's sporting.

Obesity for not you!

Sat, 08/21/2010 - 08:57 | 534575 Waterman Jim
Waterman Jim's picture

Big news yesterday,

Michelle ate a salad that was grown in the white house garden!


Sat, 08/21/2010 - 18:07 | 535208 knukles
knukles's picture

While the rest of us were fed shit and kept in the dark by the New Versailles.

Fri, 08/20/2010 - 21:06 | 534137 You Cant Handle...
You Cant Handle the Truth's picture

Did someone say "teh afterlife?"

Things are much harder than in the afterworld
In this life, you're on your own

Fri, 08/20/2010 - 21:08 | 534146 Cognitive Dissonance
Cognitive Dissonance's picture

Yet instead of going to hell, it was immediately resurrected with a bevy of new owners, among them Goldman, Morgan Stanley, and BofA, all of whom received nearly $400 million in taxpayer money for their "generosity" to keep the bank zombified even in the afterlife.

I'd say that gets a big "Mission Accomplished" with a side order of Booyah. To understand my comment, you might wish to look who were Obama's biggest political donors on his way to the WH.

Let me help.

This table lists the top donors to this candidate in the 2008 election cycle. The organizations themselves did not donate , rather the money came from the organization's PAC, its individual members or employees or owners, and those individuals' immediate families. Organization totals include subsidiaries and affiliates.

University of California $1,591,395 Goldman Sachs $994,795 Harvard University $854,747 Microsoft Corp $833,617 Google Inc $803,436 Citigroup Inc $701,290 JPMorgan Chase & Co $695,132 Time Warner $590,084 Sidley Austin LLP $588,598 Stanford University $586,557 National Amusements Inc $551,683 UBS AG $543,219 Wilmerhale Llp $542,618 Skadden, Arps et al $530,839 IBM Corp $528,822 Columbia University $528,302 Morgan Stanley $514,881 General Electric $499,130 US Government $494,820 Latham & Watkins $493,835


Fri, 08/20/2010 - 21:21 | 534157 MeTarzanUjane
MeTarzanUjane's picture

Where do you find the time to discover these nuggets? Don't you have 'clients' to lavish with your attention?

Wow! Superblogizen.

Fri, 08/20/2010 - 21:31 | 534172 Village Idiot
Village Idiot's picture

Mr. Tarzan,

I am sorry to interupt your time with Mr. GogDis, but would mind explaining what these words mean?  I am confused.  Thank you.


by MeTarzanUjane
on Fri, 08/20/2010 - 16:18

No affiliations but declares judaism? Yea, no agenda. That's obvious. Did you catch the ghay while you were a student at NYU? Kind regards."

Fri, 08/20/2010 - 22:04 | 534231 New_Meat
New_Meat's picture

back to Cas re-education camp for the lad.  Self-criticism for 3 months. - Ned

Sat, 08/21/2010 - 09:24 | 534578 Waterman Jim
Waterman Jim's picture

Give the guy a break,

Tarzan was raised by monkeys and didn't learn english till he was like 22.

At least he can form what looks like a sentence.

Sat, 08/21/2010 - 01:33 | 534429 knukles
knukles's picture

Some of us consider strong fundamental research of a particular necessity to properly execute the fiduciary responsibilities associated with the stewardship of other's wealth.


Sat, 08/21/2010 - 03:36 | 534490 Village Idiot
Village Idiot's picture

My advisor used to say that.

Sat, 08/21/2010 - 06:42 | 534523 aheady
aheady's picture


Sat, 08/21/2010 - 01:28 | 534424 Problem Is
Problem Is's picture

"University of California    $1,591,395"

Oh so that is how Romer bought a seat at Fat Larry's table.

I still say Romer is Shemp
Fat Larry is Moe (the mean one), Timmay is Larry (Porcupine hair) and Bernanke is Curly... the most tragic and misunderstood of the Stooges...

Obummer is Ted Healy.... Look that one up Stooge fans...

Sat, 08/21/2010 - 08:01 | 534545 The Methanizer
The Methanizer's picture

Mr. Obama seems more like Buckwheat, without the nappy hair, from "Our Gang", always "otaying" the Stooge's bizarre antics.

Sat, 08/21/2010 - 11:37 | 534784 Eally Ucked
Eally Ucked's picture

Those poor students have to cough up ever rising tuition fees and they throw money on power dealing! Good luck to them! At least I know why students getting restless.

Fri, 08/20/2010 - 21:10 | 534147 Al Gorerhythm
Al Gorerhythm's picture

So, the President of The United States can't save anything?!

Fri, 08/20/2010 - 22:06 | 534233 New_Meat
New_Meat's picture

of course, he can save or create <<your number here>> jobs.

No sweat, then off to MV with a fine time off with skippy and the boyz.

- Ned

OT-MV local traffic fubar thanks to the "visit".

Fri, 08/20/2010 - 22:50 | 534287 Mentaliusanything
Mentaliusanything's picture

Why the hell would he want to 'save' anything when you can print and spend. Its a back door save for those poor distressed people who are under water. While they, the Debt slaves with a mortgage, remain distressed but the bankers who FUBAR'ed get a clean slate, wiped off with the sweat of taxpayers dollars. Those darling Bankers will then spin off the squeaky clean Mortgages to the (yes you guessed it) the taxpayers thru the Fed purchases.

This is NOT a Ponzi - with a Ponzi an investor can pull out before it fails.

With what transpires here your locked in for as long as you and the next 3 generations have any value left to steal.

The Apple rots from the core

Sat, 08/21/2010 - 00:47 | 534388 TeresaE
TeresaE's picture

It's NOT a Ponzi.


It IS a great, big, world's record setting, check kiting scheme.


Just where are the banks getting the (meager) cash for this transaction?


Yep, you got it, from the spread they are making on borrowing at nothing and loaning it back for kife.  Well, that and 25% interest rates and checking fees from us poor idiots still trying to believe that doing the right thing, is the thing that matters.


I know, I know, honor, has gone the way of our Constitution; archaic notions that no longer matter cause, this time is different.

Sat, 08/21/2010 - 16:14 | 535084 Al Gorerhythm
Al Gorerhythm's picture

The honorable thing to do is help bring it down. Use any means possible and return to the rule of law once the playing field is level again. 

Sat, 08/21/2010 - 18:23 | 535217 knukles
knukles's picture

Who said that?  Who said that?  I dare ya'!  I double dare ya'!  He's the Messiah, gonna deliver Hope, end the wars in Afghanistan and Iraq, get rid of the Patriot Act, stop wireless wiretapping, stop Earmarks, open every debate including healthcare to public on C-Span, close Guantanamo, make peace in the Middle East.  Jobs, jobs, and more jobs, he's probably saved or created 100 Million so far, by White Hose reckoning.  Treated the bond holders of GM and Chrysler so properly, nobody anywhere on the planet has any doubt whatsoever about America's dedication to the Rule of Law.

What is it that you do not underfuckingstand that he hasn't saved?

Must have been the lack of MSM support, or that bastard dysfunctional Democratic supermajority was too small.  Damned bankers that won't lend.  Greedy shits on Wall Street won't play the PPT game and goose the market.  Maybe t'was Timmy, Ben and Larry, those incompetents....should never have appointed them, eh?  Biden.  Yeah, that damned Joe Biden, give him a job to go out and make everyone aware of the Recovery Summer, and he blows it.

What needs saving?  All's well, move along, let's all just sing Don't Worry, Be Happy and it'll all be OK. 

(Primal Scream)

Fri, 08/20/2010 - 21:35 | 534177 zen0
zen0's picture

I always was suspicious that the attack on 9/11 was organized by some seriously pissed Saudi investors. I think they should be encouraged to carry on their financial jihad. If not them, then who?

Fri, 08/20/2010 - 21:43 | 534187 you enjoy myself
you enjoy myself's picture

what, no GMAC?

Fri, 08/20/2010 - 22:03 | 534228 Goldenballs
Goldenballs's picture

To dear to fail.The proof of the pudding is in the eating ..... Roll on 12 months down the line,the bedrock is eroding.

Fri, 08/20/2010 - 22:44 | 534255 Michael Victory
Michael Victory's picture


Fri, 08/20/2010 - 22:21 | 534257 william the bastard
william the bastard's picture

horizonal VOMIT

Fri, 08/20/2010 - 22:33 | 534269 traderjoe
traderjoe's picture

Each of these sweetheart deals is one more nail in the eventual coffin as more and more people awaken to their fleecing by the corporatists. 

Fri, 08/20/2010 - 22:42 | 534279 Blano
Blano's picture

Man, there sure are a lot of fingers in that Shorebank pie.

Never realized inner city lending, especially in those Cleveland and Detroit branches (per Bloomberg), was so profitable (rolls eyes).

Fri, 08/20/2010 - 22:52 | 534288 Argos
Argos's picture

OH, crap.  Northern Trust is my bank.  And here I thought they were a "good" bank.  Another rosy thought dashed.

Fri, 08/20/2010 - 23:23 | 534330 Cheyenne
Cheyenne's picture

My thought exactly. They're a good bank, hell, they wouldn't even do ARM's, much less the rest of the rancid alphabet soup. Seeing their name on this list does make me wonder.

Sat, 08/21/2010 - 01:36 | 534431 knukles
knukles's picture

Forget not, that the Administration is from Chicago, ShoreBank was an Administration and Chicago Machine Enabler, Northern Trust is a Member of the FDIC and Fed, and is Domiciled in Chicago.

Political Influence, anyone?

Sat, 08/21/2010 - 12:28 | 534836 FoodTiger
FoodTiger's picture

Northern Trust had no qualms taking TARP money, then embarrassly returned it when the public realized they didn't need it.

Sat, 08/21/2010 - 13:57 | 534912 cossack55
cossack55's picture

Insert either Clint Eastwood or the late/great Frank Muller voice here:  "The only good bank is a dead bank".  Nuff said?

Fri, 08/20/2010 - 23:16 | 534322 AssFire
AssFire's picture

8 Banks failed tonight only 1 received special treatment.

-What a racket, Chicago style.

Fri, 08/20/2010 - 23:28 | 534334 Cheyenne
Cheyenne's picture

Exactly why I'm moving out of Chicago ASAP.  Dumping a mortgage while it's above water and a town that's dead in all but airline magazines.

Sat, 08/21/2010 - 00:26 | 534378 Village Idiot
Village Idiot's picture

Chicago style, baby.  A buddy of mine mentioned an interview of Bill Clinton, after obama won.  I didn't catch the whole story, but it sounded like Clinton was calling obama's race and everything running up to it as "thug" politics. Bill and Hillary had "never seen anything like it." 

I'm sure Bill and Hillary are able to handle themselves, but the back story here is the type of game played in Chicago.  Most people still thinks the guy comes from sweet political beginnings.  Strike while the iron is hot - we still have Lagoyavitch to point to, for Christ's sake!

This story needs to see mainstream daylight.  On appearance it looks like the bad guys are all in the same room, while the money is being cut.  I think people will get this one...if the right front man/woman runs through it.  Who is the right person for the job?  Seriously.  And can we buy their support? No, I mean it, serious question...



Sat, 08/21/2010 - 00:36 | 534383 suteibu
suteibu's picture

I know you're serious...but...

Here is the current list of Trending on Twitter (US)

Scott Pilgrim (No idea who that is)

Ashley Greene (Ditto)

Wyclef Jean (WTF)

#youhavenoswag (Maybe a Bender reference)

#idontgethowpeople (I agree)

Jashley (sic)

Foxy Browne (WOW)

#imnodrphilbut (Sheeesh)

Lottery Ticket (Says it all)

Inception (Facepalm)

So, you see, the masses won't give a shit no matter who you get to spread the message.

Sat, 08/21/2010 - 00:44 | 534386 Village Idiot
Village Idiot's picture

If Howard Cronkite, for example, told you the whole thing is a sham?


Edit:  Walter

Sat, 08/21/2010 - 00:48 | 534390 Village Idiot
Village Idiot's picture

 No one knows who Walter Cronkite is?

Sat, 08/21/2010 - 00:50 | 534392 Village Idiot
Village Idiot's picture

Ok, if David haselhoff came to you and said the whole thing was a sham?

Sat, 08/21/2010 - 00:56 | 534396 suteibu
suteibu's picture

I read one comment on another post where the guy was pissed that everything on ZH was just preaching to the choir.  I agree.  Few here need anyone to splain it to them.

BTW...Fuck Cronkite

Sat, 08/21/2010 - 01:47 | 534441 Village Idiot
Village Idiot's picture

Are you barkin' at me?  We were just having a good time.  Well, assuming that you are making a general statement, I agree.  If you think you just heard me try and shit down your back, my apologies.  Why the problem with cronkite, btw?

Sat, 08/21/2010 - 02:49 | 534470 Reductio ad Absurdum
Reductio ad Absurdum's picture

Are you kidding? Cronkite was a fucking traitor. He should have been skinned alive.

He wants the creation of a world government: "It seems to many of us that if we are to avoid the eventual catastrophic world conflict we must strengthen the United Nations as a first step toward a world government..."

He thinks that the human race will be improved by having no standards of behavior to live up to (ie he wants to legalize drugs because people can't control themselves anyway).

He (along with that filth Ted Kennedy) was opposed to a wind farm near Martha's Vineyard because it might upset the view from his mega mansion.

Basically he was a vile, disgusting, ignorant human being all around.

Sat, 08/21/2010 - 03:12 | 534479 Village Idiot
Village Idiot's picture

News to me. I was young, he seemed well regarded.  Thank you for another viewpoint.  So who is the voice in this country that most resonates truth right now?  A voice people will believe.  Identify all the players - it's another way to start.

Sat, 08/21/2010 - 03:32 | 534487 suteibu
suteibu's picture

I'd just as soon listen to you and then trust my own judgement these days.  The truth does not live without an agenda anymore.

Sat, 08/21/2010 - 03:44 | 534492 Village Idiot
Village Idiot's picture

The truth does not live without an agenda anymore.


In most cases, yes. 


"I'd just as soon listen to you and then trust my own judgement these days."


no doubt, trust is in short supply. 



That was "preaching to the choir".  Peace.



Sat, 08/21/2010 - 12:13 | 534820 spekulatn
spekulatn's picture

Justine Bieber?

Sat, 08/21/2010 - 03:29 | 534486 suteibu
suteibu's picture

Not barking at you at all.  I grew up believing in Cronkite only to find out his stuff was the same propaganda we get now, cloaked in a Mr Rogers-type uncle.

Sat, 08/21/2010 - 03:54 | 534498 Village Idiot
Village Idiot's picture

Sorry, it's late. The posts all start swirling together after a while. Take care.

Sat, 08/21/2010 - 15:58 | 535065 ATTILA THE WIMP

Walter Cronkite was a member of the Pilgrims Society

Sat, 08/21/2010 - 00:53 | 534393 TeresaE
TeresaE's picture

Ever see/read Stephen King's, "The Stand"?

There is a scene where a small, local radio broadcaster finds out that the virus escaped from a lab, and finds out that the government is basically rounding up people and herding them together (thus killing them, its a fucking virus). She is on air presenting facts and warning people.

Military pulls up and blows her away, while she is on the air.

And you don't think that would happen in the real world IF the PTB thought somebody would listen.  Why do you think they let Beck rattle on?  Because they know that people don't want to believe a guy like Beck, so little problem.


Sat, 08/21/2010 - 03:22 | 534484 Temporalist
Temporalist's picture

If Beck and Palin weren't hypocritical egomaniacal twisted religious fanatics I'd maybe agree with you.  They are co-opting a movement and will most likely divide people into factions that will weaken the power of the people that are fed up.

Sat, 08/21/2010 - 01:31 | 534427 anonnn
anonnn's picture

A man of the people, perhaps?

Mr. Blagoyavitch demonstrated popular and effective handling of Bank of America'sgreed on a workers' lockout.

 It was widely noted and appreciated. Mr. Lagoyavitch could make deserved political hay with these bankster us all a big favor.

No. I'm serious.



Sat, 08/21/2010 - 01:52 | 534444 Village Idiot
Village Idiot's picture

It sounds like you have a reason to recognize some of the man's merits - I don't really know who he is - but he is generally regarded as a crazy crook by MANY people - and if we are trying to associate crook with crook, well, he looks the part.  Beyond that, I'm sure he has done some good.

No. I'm serious. 

Sat, 08/21/2010 - 05:14 | 534511 cossack55
cossack55's picture

Obviously Billy Boy never saw "Next of Kin" to learn how a good-ole-boy needs to operate in Chicago. If memory serves Chicago in Blackfoot translates to " I steal everything then I whack you".

Sat, 08/21/2010 - 01:19 | 534414 Problem Is
Problem Is's picture

"Why all the usual suspects of course...Ford Foundation..."

It is nice to know a CIA front organization and Obummer's mother's former employer is in on the tax payer corporate welfare rolls...

Is Blago really a fraudster for selling a fraudster's Senate seat?

Sat, 08/21/2010 - 01:44 | 534440 anonnn
anonnn's picture

Blago's only conviction was lying to FBI agents. Rumor is they asked him "When do you cut your toenails"?

He answered "Every Thursday night, before bed.". Turned out it is every Friday night. They got him on that.

Martha Stewart understands how it works.

Sat, 08/21/2010 - 02:03 | 534445 Village Idiot
Village Idiot's picture

Hey, before we move on to Blago, how about taking a second read. Third paraghragh.



Chicago style, baby.  A buddy of mine mentioned an interview of Bill Clinton, after obama won.  I didn't catch the whole story, but it sounded like Clinton was calling obama's race and everything running up to it as "thug" politics. Bill and Hillary had "never seen anything like it." 

I'm sure Bill and Hillary are able to handle themselves, but the back story here is the type of game played in Chicago.  Most people still thinks the guy comes from sweet political beginnings.  Strike while the iron is hot - we still have Lagoyavitch to point to, for Christ's sake!

This story needs to see mainstream daylight.  On appearance it looks like the bad guys are all in the same room, while the money is being cut.  I think people will get this one...if the right front man/woman runs through it.  Who is the right person for the job?  Seriously.  And can we buy their support? No, I mean it, serious question...


I could give a shit about "Blago" and I sure as shit am not "preaching to the choir."  I'm asking a serious question and looking for some serious action.



Sat, 08/21/2010 - 02:39 | 534464 StychoKiller
StychoKiller's picture

Perhaps if some children were killed in this "transaction", you could get some "outrage" from Nancy Grace.

If the children were black, Al Sharpton (and the other usual suspects) would hold press conferences on the "outrage" of it all...

Sat, 08/21/2010 - 13:16 | 534854 Problem Is
Problem Is's picture

"I could give a shit about "Blago" and I sure as shit am not "preaching to the choir." "

You replied to the statement:

"Is Blago really a fraudster for selling a fraudster's Senate seat?"

Okay VI...This is a piece of sarcasm using an analogy.
Read it again. I am calling Obummer a fraudster... I am using Blago as a prop because he is Chicago, has a huge mouth, he is comical and was convicted of being Roger Clemens (giving a false statement).

I am sorry we did not pay attention to your 3 paragraphs... thanks for reposting them a few comments down for us...

"I'm asking a serious question and looking for some serious action."

Sarcasm and Humor are accepted forms of rhetoric
Of course Obummer should be seriously investigated. Everything put forward from the corporate whore "news" media is a myth narrative. The supposed history of this guy is a complete fraud.

The evidence is overwhelming that Obummer is corrupt, his mother, father, step-father and grandparents all have links to the CIA and CIA front companies...

And Rahm-tard is up to his eyeballs in Magnetar frauds and maybe Obummer as well.

Obummer is a puppet of finance capital.
Jamie and Lloyd say dance and pull the strings and Obummer does the soft shoe. We have seen this from day one. It is now beyond obvious everything Obummer does benefits Jamie and Lloyd and screws the Amerikan public. So GS and JPM making bank on tax payer funds is no surprise.

The systemic corruption of markets and government apparatus at all levels is now overwhelming and continues to increase at exponential rates. DOJ is no answer, judicial corruption is pervasive, look at the fascist stooge Roberts, enforcement of laws will not happen for the elite.

There are no and will be no criminal prosecutions of financial elites.
After the Milken junk bond / S&L frauds, there were over 1000 referrals for prosecutions from regulators and as many bankster (and some Wall Street) convictions over a $150 Billion in looting.

This time around we are talking $2 Trillion or more in looting and ZERO regulator referrals and no criminal indictments.

The corruption of US government and markets is complete. Don't look for any serious action out of this banana republic...

Soooo VI...
Give a shit about Blago or not but realize he was used as rhetorical tool by some one who agrees with your position...

Sat, 08/21/2010 - 13:44 | 534896 Village Idiot
Village Idiot's picture

"Soooo VI...
Give a shit about Blago or not but realize he was used as rhetorical tool by some one who agrees with your position..."


Thanks for pointing this out. It was late, I was tired.  No excuse, only more reason to sharpen my skills in a student of ZHU

Sat, 08/21/2010 - 02:41 | 534466 FranSix
FranSix's picture

What?  You mean, your politicians DON'T come from trading houses or banks, and that it's actually the other way around?

Sat, 08/21/2010 - 03:08 | 534476 Village Idiot
Village Idiot's picture

FranSix and Stycho -

Call me a broken record, one trick pony.  I have very little to offer this site, with the exception of human energy.

Sat, 08/21/2010 - 03:17 | 534481 Incubus
Incubus's picture

I am Ben's exhausted colon.

I've shat so much on the economy, and it keeps coming...


Sat, 08/21/2010 - 03:46 | 534493 Village Idiot
Village Idiot's picture

stoner. ;-0

Sat, 08/21/2010 - 03:35 | 534489 Hansel
Hansel's picture

Spending $368 million at a clip adds up fast.  Where is the money coming from?  Does the debt count towards the national debt?  Is there debt related to these loss share agreements?  Or is it printed money (from Ben?)?  Inquiring minds want to know.

Sat, 08/21/2010 - 03:48 | 534495 Village Idiot
Village Idiot's picture

"Inquiring minds want to know."


Do not let up on these fuckers.

Sat, 08/21/2010 - 05:16 | 534512 cossack55
cossack55's picture

What debt?  Money is debt, the goobermint is debt, amerika is debt, the whole freakin world is debt.  The question is: Who services the debt?

Sat, 08/21/2010 - 07:18 | 534530 pauldia
pauldia's picture

Interesting, unrelated but check out the China and Russian tie.

North Korea attacking U.S. with fake $100 bills

State Dept. charges Asian regime with sabotaging American economy

Posted: August 20, 2010
10:10 pm Eastern

By Drew Zahn

© 2010 WorldNetDaily

A New Jersey man was shocked when police informed him that the $100 bill he withdrew from his bank to pay taxes earlier this month was a masterfully made counterfeit.

What the man may not have realized is that the State Department has confirmed a rash of these almost undetectable counterfeits, called "supernotes," have been flooding the U.S. from North Korea in a form of monetary sabotage one former FBI agent warns could constitute an act of war.

The existence of the supernotes was exposed in 2008, when several Chinese men were convicted of smuggling tens of millions of dollars worth of the counterfeit money into the U.S.

Originally, the supernotes fooled even state currency experts.

"It wasn't until they took [a] bill back to Washington, D.C., and they examined it in the labs of the Secret Service … that they determined that in fact it was a supernote," author and former FBI agent Bob Hamer explained to the Christian Broadcasting Network. "It's a near-perfect replica of our $100 bill."

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But authorities also discovered that the Chinese men hadn't actually produced the counterfeits; they were only the vehicle for smuggling the currency into the U.S.

Last month, the International Business Times reports, State Department spokesman Philip Crowley confirmed U.S. officials now have "no doubt" that North Korea is behind the counterfeit currency ring.

And that, Hamer told CBN News, could be considered an act of war.

"It's an act of aggression," Hamer said, recalling his undercover work that helped expose the counterfeiting plot. "We're talking about a foreign country counterfeiting our currency and then were going to make me an exclusive distributor of over $40 million of this counterfeit money here in the United States."

The former FBI agent further explained, "The notes are manufactured in North Korea. They were being distributed through the Russian Embassy in Beijing to the Chinese organized crime figures that were dealing directly with me."

The ongoing use and spread of the phony money contributed to the State Department decision, announced last month, to initiate a new wave of sanctions against North Korea.

"We have been able to identify sources of revenue, illegal sources of revenue, and we're going to be working with our international partners to try to stem this flow of illegal activity," Crowley said.

The U.S. has acted on the crime before, singling out the China-based Banco Delta Asia as an accused conduit for laundering the supernotes. The action led to a freeze of more than $25 million in North Korean assets at the bank; and in 2007, the White House went further, when the U.S. Treasury ordered American banks and companies to sever all ties with BDA.

Still, Hamer told CBN News, he's surprised the media hasn't reported more on the financial implications of the phony bills.

"Anytime there's counterfeit money being circulated in our country its going to have an impact on our economy," Hamer said, "especially when we're talking about the dollar amounts that they're talking."

As for the man who paid his taxes with the counterfeit $100 bill, New Jersey's Verona-Cedar Grove Times reports the authorities discovered it by running it through a portable scanner acquired last June to stop a string of phony $20 bills being distributed in Verona.

Police told the paper that the unsuspecting man could be issued a replacement $100 bill once he gets a report from the U.S. Secret Service confirming the original as a counterfeit.





Sat, 08/21/2010 - 08:26 | 534556 The Methanizer
The Methanizer's picture

So how is this different than what Banzai Bernake is doing? Banco Delta Asia is just taking up the slake during scheduled maintenance downtime for Ben's printing machines.

Sat, 08/21/2010 - 10:12 | 534613 divide_by_zero
divide_by_zero's picture

Like the old saying "don't steal, the government hates  competition"

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