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How Hank Paulson Broke The Law: "This Will Be A Disclosable Event And We Do Not Want A Disclosable Event" - Parsing The Ken Lewis "MAC" Deposition

Tyler Durden's picture


Among some of the discoveries of the financial crisis is that the entire financial system is now, following the Lehman bankruptcy, built entirely on fraud. And while Ken Lewis may spend the remainder of his days on some private island with stolen taxpayer money providing for his every last wish, it was he, in following the Fed's and the Treasury's orders to make a mockery of fiduciary responsibility, that was among the first people to confirm that there is no rule of low in America, or rather whatever law there is, it only applies to the less than immortal (i.e. the sub-banker class). Below, in an indication that Zero Hedge will never forget, we present the salient highlights from the Ken Lewis deposition on the MAC clause surrounding the Merrill transition, emphasizing the threats from Hank Paulson and Ben Bernanke. For as long as neither of these three is in jail for what is documented shareholder (and taxpayer) fraud, we fail to see why the remaining 300+ million Americans continue to diligently pay their share of taxes into a government that is now beyond (and in full documentation) corrupt. Also, how BofA's lawyer Wachtell was not at all present during the discussion of the MAC clause, makes a complete mockery of the US legal process in its entirety. We wonder just when the official scribe of the kleptocracy, Andrew R. Sorkin, will write a book disclosing the truth of what happened, including a listing of all the laws broken with full premeditation by every single player, and not the watered down, PG13 (and rather expensive)version  that makes everyone come out like a law-abiding superman.

Full transcript highlights, presented without commentary:

Q: Where does the meeting take place?
A: At the Federal Reserve.
Q: And who attends the meeting?
A: Well, the two main players – excuse me – Joe Price and Brian Moynihan.  And Bernanke was there; Paulson was there; Alvarez, his chief counsel, and a cast of a lot of others that I didn’t recognize. 
Q: The “others” were Treasury and Fed officials?
A: Yes
Q: Was there any attendance list taken at the meeting?
A: Not to my knowledge, but there could have been.
Q: No one passed around a list or something like that?
A: No.
A: ...we were concerned about the very large hole that would have been created by the loss.
Q: And what was the hole that was going to be created by the loss?
A: At that point, we thought it was roughly $12 billion.

Q: What happened next?
A: Well, there was discussion about MACs being very difficult – and, again, the meetings are running together on me – I don’t know what would be the remedy –I know at the end we were basically told to stand down...
Q: Who did speaking for the Treasury and the Fed at the meeting?
A: Mainly Hank and Ben, but I think Alvarez said a few things, too
Q: By the way, was anyone from Wachtell at the meeting?
A: No. 

A: ...I think I got it now.  I remember, for some reason we wanted to follow up and see if any progress – as I recall, we, actually had not agreed not to call a MAC after the conversation that we had, and so I tried to get in touch with Hank, and, as I recall, I got a number that was somebody at the Treasury kind of guard-like thing.  He had a number for Hank, and Hank was out, I think, on his bike, and he – this is vague; I won’t get the words exactly right – and he said “I’m going to be very blunt, we’re very supportive of Bank of America and we want to be of help, but” – I recall him saying “the government,” but that may or may not be the case – “does not feel it’s in your best interest for you to call a MAC, and that we feel so strongly,” – I can’t recall if he said “we would remove the board and management if you called it” or if he said “we would do it if you intended to.”  I don’t remember which it was, before or after, and I said, “Hank, let’s deescalate this for a while.  Let me talk to our board.”  And the board’s reaction was one of “That threat, okay, do it.  That would be systemic risk.”
Q: The conversation with Hank on the bike, that’s also on Monday?
A: No.  That was on Sunday – I’m pretty sure that was Sunday.  I just recall it wasn’t a weekday, and that he was out of pocket.
Mr. Corngold: Before we do that, did you have an understanding of what powers the Treasury Department had to remove the board and/or the management of the bank?
The Witness: It was my understanding he said – that’s why I said I think he said government.  I think – my impression is that was the language of the Fed used to use in Texas, basically saying, Don’t do something.
Mr. Corngold: You had an understanding that the Fed could remove the board and/or the management of a bank that it regulated if it found certain things.
A: Yes
Q: Do you know what it has to find?
A: They had been so strong about the fact that they strongly advised use not to do it and that it would cause harm to the bank and the system and they system wouldn’t be good for us, either – that it would damage the system.  That’s kind of how it was being portrayed.
Q: Was this the first you heard about the government – to use your term – was considering that threat.
A: Yes

Q: Did you ask him, “By the way, what do you mean by that” – I’m sorry, the comment about the removal?
A: No.  It was pretty clear.
Q: And at the time, did you sort of have that preexisting understanding of the Texas Fed way of communicating.
A: I had heard that at some point.  I don’t know why that’s in my mind, but I’ve heard of that before that’s a way of telling you not to do something.
Q: Have you heard any kind of communication like that from a federal official to you before?
A: No

A: This was about just a shear magnitude of loss, and either you do it or you don’t.  Behavioral changes, or whatever, wouldn’t fill that hole that we thought was $12 billion, which turned out to be $15 billion. 

Q: But you, basically had to go on faith that the Fed and Treasury were going to deliver.
A: Correct.
Q: Did you ask for any agreement from them?
A: There was a point after that that the board brought up the fact that we’re relying on words that obviously has some very prominent people and honorable people, but, boy, what if they don’t come through?  So I called Bernanke – I don’t know why I called him versus Hank – and said, “Would you be willing to put something in writing?”  And he said, “Let me think about it.”  As I recall, he didn’t call me back, but Hank called me back.  And Hank said two things: He said, “First, it would be so watered down, it wouldn’t be as strongly as what we were going to say to you verbally, and secondly, this would be a disclosable event and we do not want a disclosable event.”
Q: They didn’t think it was in the best interest if you announced to your shareholders that you were negotiating?
A: No.  They thought it was in our best interest for the deal to be completed and to be able to say “This is what we have,” as opposed to prospectively.
Q: At the point in time of this board meeting, though, you were relating to the board that you felt you had a commitment from the Fed and the Treasury to make good on whatever harm is caused by the increased losses at Merrill Lynch; is that right?
A: I had verbal commitments from Ben Bernanke and Hank Paulson that they were going to see this through, to fill that hole, and have the market perceive this as a good deal.
Q: Did you ask anyone to look into whether the oral, verbal commitments from the Fed and Treasury were enforceable?
A: No.  I was going on the word of two very well respected individuals high up in the American government.
Q: Wasn’t Mr. Paulson, by his instruction, really asking Bank of America shareholders to take a good part of the hit of the Merrill losses?
A: What he was doing was trying to stem a financial disaster in the financial markets, from his perspective.
Q: From your perspective, wasn’t that one of the effects of what he was doing?
A: Over the short term, yes, but we still thought we had an entity that filled two big strategic holes for us and over the long term would still be an interest to shareholders.
Q: What do you mean by “short term”?
A: Two to three years.
Q: So isn’t that something that any shareholder at Bank of America who had less than a three-year time horizon would want to know?
A: The situation was that everyone felt like the deal needed to be completed and to be able to say that...
Q: When you say “everyone,” what do you mean?
A: The people I was talking to, Bernanke and Paulson.
Q: Had it been up to you would you made the disclosure?
A: It wasn’t up to me.
Q: Had it been up to you.
A: It wasn’t
Q: Why do you say it wasn’t up to you?  Were you instructed not to tell your shareholders what the transaction was going to be?
A: I was instructed that “We do not want a public disclosure.”
Q: Who said that to you?
A: Paulson

Q: Did anyone consider that the oral agreement was a commitment for financing, so under SEC rules there had to be a disclosure?
A: I did not.  That’s all I can tell you.
A: Plus, it was said that “We want this deal done on time on these terms.”  There wasn’t an ability to renegotiate. 

Q: Did you feel like you had a choice in the matter?
A: No


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Sun, 02/06/2011 - 19:53 | 939488 mynhair
mynhair's picture

Illegality, bitchez!

Sun, 02/06/2011 - 20:40 | 939546 nmewn
nmewn's picture

Abrogation of fiduciary duties...cronyism...taxpayer theft justified as an end justifying the means.

What was the vote on TARP again?...same same...and much deeper.

Mon, 02/07/2011 - 00:31 | 939891 FatFingered
FatFingered's picture

Alan Grayson       Aye

Marcy Kaptur       Aye

Dennis Kucinich   Aye

Ron Paul             No

Ron Paul is the sole consistent voice for the people.  Very sad.  As TD claims, the US is a bono-fide banana republic.  


Mon, 02/07/2011 - 00:52 | 939922 nmewn
nmewn's picture

It's always good to go back and look at the record to see who your friends are.

Good night.

Mon, 02/07/2011 - 06:46 | 940112 Husk-Erzulie
Husk-Erzulie's picture

So disappointed in Marcy :-(

Kucinich...not so much.

Mon, 02/07/2011 - 01:39 | 939966 ebworthen
ebworthen's picture

The vote on TARP was the end of my citizenship of the heart.

I'm here legally and physically, but my allegiance and belief in the U.S.A. has died.

It's like losing a loved one, and I'm not sure what stage of grief I'm in but I know I'm past denial.

Mon, 02/07/2011 - 02:23 | 939997 Mr Poopra
Mr Poopra's picture

Your allegience and mine is to the Constitution, not these criminals.  They are not representative of America or the American spirit, not to me.  

Mon, 02/07/2011 - 06:56 | 940120 nmewn
nmewn's picture

"Your allegience and mine is to the Constitution, not these criminals."

I feel the same way...and to my people.

Tue, 02/08/2011 - 03:20 | 942350 Fiat Money
Fiat Money's picture

"Your allegience and mine is to the Constitution, not these criminals."

             If it makes anyone feel any better, we (the late usa) are now little more than a colony of a certain foreign country's war lobby, of whom the gs, jpm, Fed (et al) financial swindlers are merely the financial extortion arm.  

There is plenty of precedent for this, or course: large swaths of the Black Sea and Med. coastlines were once colonies first of the Greek city-states (Athens, etc.), then of Rome; we Americans were once colonies of the British empire, and Wall St. financiers +  war supplies contractors, propped up that same British empire long enough during WWI, to drag America into that war on their side.

   But perhaps the best example is the Greek and Cypriot colonies of the Venetian merchant empire during the 12th through 16th centuries; the Venetian merchants and bankers drained every penny from their Greek subjects, who were effectively little more than slaves  (serfs), while actively trading with the Turkish empire that  enslaved other Greeks & Christian Europeans by the tens of thousands,  and always loomed over the Agean.

    It took a lot of manpower to row those war galleys, and Christian galley slaves could be just as good as (captured) Muslim galley slaves. (All of whom died by the thousands, chained to their rowing benches with no clothing, amid their own filth,  under the lash of the row master's whip.)

The need for every fresh supplies of galley slaves to fill the ranks of those who died,  created its own demand for war to supply new prisoners -   just as, today, the war profiteers profits demand ever fresh taxes, and (un-) "P.A.T.R.I.O.T. Act"  powers, and fresh reminders of the GWOT,  to pay for their parasite economy;  just as the sugar plantations in the East Indies had such a high mortality rate (avg. 100% slave mortality over 3 years in some brutal plantations!)  that they demanded a fresh supply of new slaves to feed Europe's increasing sugar habit and addiction (which morphed to tobacco, cotton, rice, & other colonial commodity products when the slave plantations spread to North America under the English, Jamestown established 1607.) 

  Anyone who believes that "America was conceived in liberty and freedom" is delusional!

Mon, 02/07/2011 - 12:05 | 940589 snowball777
snowball777's picture

that'd be #3 "anger and bargaining"

Frustration gives way to anger, and you may lash out and lay unwarranted blame for the death on someone else. 

Sun, 02/06/2011 - 21:25 | 939613 Popo
Popo's picture

Tyler, you have a typo in the title. "disclosable", not "disposable".

Sun, 02/06/2011 - 19:53 | 939489 Apostate
Apostate's picture

Hank Paulson: American Hero.

Where would this country be without jumbo mortgages and credit card pyramiding? He preserved shopping season. He must be commended. Build a statue of this grand bald man, post-haste!

Sun, 02/06/2011 - 20:00 | 939497 plocequ1
plocequ1's picture

A Mans man.

Sun, 02/06/2011 - 23:07 | 939734 Pure Evil
Pure Evil's picture

Doing God's work before anyone knew what God's work was, eh hem.....Lloyd.

Mon, 02/07/2011 - 09:24 | 940248 BorisTheBlade
BorisTheBlade's picture

I wonder if God knows that he outsourced his work to a bunch or crooks, besides where's the contract or God told them it was an undisclosable event and thus he won't put anything in writing?

Mon, 02/07/2011 - 00:20 | 939870 Fred Hayek
Fred Hayek's picture

Did you mean to say a "manse man"?

Sun, 02/06/2011 - 20:38 | 939499 Michael
Michael's picture

U.S. Department of Homeland Security

If You See Something, Say Something

Citizen Line Operator Number: 202-282-8000

Project Financings
MAC clauses are normally found in a representation and warranty by the borrower as to the absence of any material adverse change and as an event of default triggered by a material adverse change.

Where the financing involves multiple drawdowns, the lender generally requires the MAC representation and warranty to be repeated by the borrower at the time of each drawdown. A lender may also want to insert a MAC clause as a separate condition precedent to drawdown.

Below are examples taken from project financing transactions we have advised on:

Example 1 - Definition

"Material Adverse Event means something which, in the opinion of the Facility Agent, materially adversely affects:

– the Company's ability to comply with its obligations under any Transaction Document or to carry on its business as it is being conducted at the time immediately preceding the event;

– the value of the Secured Property; or

– the rights of the Financier under a Transaction Document.

Example 2 - Condition precedent

"A Financier is not obliged to provide any drawdown until the Facility Agent is satisfied that there has been no change in:

– the commercial, operational or economic viability of the Project from that contemplated in the Plan or Feasibility Study; or

– the business, condition (financial or otherwise), operations, performance or assets of the Company, which is, or is likely to be, a Material Adverse Event."


Sun, 02/06/2011 - 19:53 | 939490 Anonymouse
Anonymouse's picture

What is the Texas Fed story?  I don't know what they are referring to?

Sun, 02/06/2011 - 19:58 | 939491 plocequ1
plocequ1's picture

I gave up giving a shit about a year ago. What ever happens, happens. Now excuse me while i watch the Superbowl and enjoy my Sheepdom

Sun, 02/06/2011 - 20:01 | 939500 mynhair
mynhair's picture

+ a MoneyMcBags post

Sun, 02/06/2011 - 20:07 | 939507 plocequ1
plocequ1's picture

Nothing like plastic Rice Krispy treats while watching the superbowl.

Sun, 02/06/2011 - 20:00 | 939498 RobotTrader
RobotTrader's picture

Both Hank Paulson and Ken Lewis are set for life.

Just like Angelo Mozillo and Franklin "Mr. Potato Head" Raines.

Here's Raines enjoying the good life at a Washington charity function.

End of story....

Sun, 02/06/2011 - 20:03 | 939501 mynhair
mynhair's picture

Raines's head looks more like an ACORN.  Think they pull a Kennedy-Dodd sandwich on that red-head?

Mon, 02/07/2011 - 06:48 | 940113 slewie the pi-rat
slewie the pi-rat's picture

although i have no direct knowlegde of any such activity and can neither confirm nor deny any such speculative query, i did read the testimony, and here's a direct quote:

we still thought we had an entity that filled two big strategic holes for us

Sun, 02/06/2011 - 20:14 | 939515 Hulk
Hulk's picture

Yep, prosecuting fraud is absolutely a thing of the past...

Sun, 02/06/2011 - 20:18 | 939519 oddjob
oddjob's picture

Hard to believe Raines is still breathing.

Sun, 02/06/2011 - 20:37 | 939541 Don Birnam
Don Birnam's picture

The guy on the left is holding the glass stem with a napkin. Definitely a Beltway klepto-charity event. No one wants to leave any prints.

Sun, 02/06/2011 - 23:10 | 939739 Pure Evil
Pure Evil's picture

I didn't know Alien-Rat hybrids had fingerprints.

Sun, 02/06/2011 - 20:03 | 939504 buzzsaw99
buzzsaw99's picture

If there's a Hell Skeletor Paulson will spend eternity in its bowels.

Mon, 02/07/2011 - 01:16 | 939940 RockyRacoon
RockyRacoon's picture

That's not good enough -- unless it's televised on CNBC.♠

Sun, 02/06/2011 - 20:09 | 939509 Husk-Erzulie
Husk-Erzulie's picture

Feet to the fookin, fire bitchez.  Classic ZH.  It makes me feel oddly reassured to know that this is read world wide.  Bravissima.

Sun, 02/06/2011 - 20:17 | 939516 Miles Kendig
Miles Kendig's picture

Cas Sunstein, Dick Cheney & others now have precisely what they want.  Lawless governance creating & governing a lawless society.

And I was right a year ago when Ken Lewis got served his legal papers.  I said then that he was too big of a wimp to actually  run his mouth, let alone a major deposit taking institution.  The last two question/answers portray this clearly.  Ken Lewis is what convicts would term as a "punk".  Fact remains that only punks are served by punks.  Or as the old FBI adage goes:  Once a cock sucker, always a cock sucker.

Sun, 02/06/2011 - 20:19 | 939521 Cognitive Dissonance
Cognitive Dissonance's picture

Corporate/governmental collusion and cover-up to perpetuate the Ponzi and the money gravy train just doesn't get any clearer than this since this would never be put in writing as Paulson clearly said.

Short of a death bed confession that is.

Mon, 02/07/2011 - 00:28 | 939887 Michael
Michael's picture

A death bed confession is meaningless unless the US Justice Department acts on it.

That is why we need to get rid of the Obama administration.

Sun, 02/06/2011 - 20:20 | 939523 Don Birnam
Don Birnam's picture

Andrew Ross Sorkin, perpetual CNBC "guest" and official scribe of the kleptocracy, has always called to mind, with his smarmy, Times Square perma-smirk, the "journalistic" image of Alfred E. Neuman.

Sun, 02/06/2011 - 20:23 | 939526 TooBearish
TooBearish's picture

Hank Paulson as SecTres broke the law the second he picked up the phone from Lloyd

Sun, 02/06/2011 - 20:25 | 939529 Careless Whisper
Careless Whisper's picture

Alvarez, his chief counsel

would that be scott alvarez, the general counsel for the privately owned federal reserve bank? he couldn't answer if the privately owned federal reserve bank ever manipulated the stock market. this guy is too funny.


Sun, 02/06/2011 - 20:27 | 939533 Everybodys All ...
Everybodys All American's picture

Ken Lewis has no balls or morals ... if he had either he would have told Paulson to go to hell. The problem with corporate America in general can be simplified with one word. Leadership.

Mon, 02/07/2011 - 09:08 | 940228 Bob
Bob's picture

Nah, the word is personal liability.  Okay, that's two words. 

These are just pirates who operate under corporate cover. 

Sun, 02/06/2011 - 20:29 | 939535 Yen Cross
Yen Cross's picture

I don't have to read transcript. I'm on your side. Always have been. Sleep Tight!

Sun, 02/06/2011 - 20:36 | 939540 Yen Cross
Yen Cross's picture

Hey trade a bounce in usd/jpy 81.49- 89.79 area. Have fun Look @ liquidity.

Sun, 02/06/2011 - 20:37 | 939542 Yen Cross
Yen Cross's picture

81.79 oooops.

Sun, 02/06/2011 - 20:42 | 939547 tony bonn
tony bonn's picture

hank paulson wanted legal immunity because he was and is a crook...ken lewis was and is a puppet of the bohemian grove/bildeberger/trilateral commission/rockefeller rothschild axis of evil and is also a lying sack of crooked shit....

of course the law is only for the little the schapiro-bitch go after some more small fry so she can hang out dirty laundry to prove that she is doing her blow job....

as one smart cookie said about an evil judge in her life, "if i don't see him in hell, i don't have any fear of going there."

remember all of that horseshit about the necessity of education for making a better man....fuck you


Sun, 02/06/2011 - 20:43 | 939548 monopoly
monopoly's picture

None of us here on Zero Hedge are surprised about this deception. The sad part is that this govt. has no desire to prosecute the scum that supposedly saved our country. And most of the sheeples do not even have a clue when they walk into BAC or WFC to deposit a check or get some cash. Most do not even know about the dollar, what spiking interest rates means or how to spell The Bernank.

But they will pay attention when gas is $5..00 and bread $6.00.

Nothing will be done to Lewis or the others. They are the worst kind of vermin, the scum of the earth and care about nothing but themselves.  At one point I had hope, but we no longer have a Washington, Madison, Jefferson or Monroe to help this country.

We have Bernank who should be indicted, Geithner who should be fired and Obama who should resign. Been around a long time, this is the worst I have ever seen in this country.

The destruction these slime have wrought on this country and this planet will linger for a long, long time.

But party on all, shorts are not working.

Sun, 02/06/2011 - 20:49 | 939556 Don Birnam
Don Birnam's picture


Sun, 02/06/2011 - 21:19 | 939600 Withdrawn Sanction
Withdrawn Sanction's picture

Do not count on government to sort out and adjudicate the mess they helped make.  It is not necessary and would in fact be counterproductive.

Karma's a bitch... and she takes names.

Time is short.

Sun, 02/06/2011 - 21:24 | 939608 mynhair
mynhair's picture

Ah, but they are punished.  See Ken Lewis on the 'Jobs' panel yet?

Nope, just Immelt.

Unindicted scum rises to the top.

CIT, wrong comment...

Mon, 02/07/2011 - 06:29 | 940101 Judge Smales
Judge Smales's picture

The only thing that gives me any hope regarding the fraudsters is that most of them are well older than I am, so I will probably have the fun of reading most of their obituaries, one by one, and drinking a toast each time. I might even go to their gravesites and have myself a pee, too.

Mon, 02/07/2011 - 08:56 | 940212 twotraps
twotraps's picture


Sun, 02/06/2011 - 20:43 | 939550 agrotera
agrotera's picture

US Treasury secretaries have a fiduciary responsibility to the country--

I can't see how broadcasting to all of wallstreet to bet on the collapse of Lehman and the then tell the country that the winnings for this bet need to be paid by our tax dollars (AIG --got the money, a day after Lehman's collapse, to pay the winnings of the Lehman CDS bets, with taxpayer money), violating laws (forcing the purchase of MER on BAC) and lobbying for a law to take taxpayer money to pass out to failed entities (TARP) is the act of a fiduciary....and i cannot understand how any US Treasury Secretary who would do such things can have immunity from prosecution.

Mon, 02/07/2011 - 00:18 | 939862 Cursive
Cursive's picture


I haven't seen an agrotera post in many moons.  Nice to read.  :)

Mon, 02/07/2011 - 01:00 | 939930 agrotera
agrotera's picture

Thank you for the hello Cursive!!!  Hope all is well for you and yours!!!

Sun, 02/06/2011 - 20:49 | 939555 mynhair
mynhair's picture

Give me "social justice"!

Hang Soros in the public square.

Sun, 02/06/2011 - 20:59 | 939577 Michael
Michael's picture

I like Generic Justice better.

Sun, 02/06/2011 - 21:25 | 939615 mynhair
mynhair's picture

I like generic beer better.

Sun, 02/06/2011 - 21:59 | 939649 UGrev
UGrev's picture

public class Beer<T>(T brand){

 public AlcoholLevel DrinkAndEnjoy(){

return AlcoholLevel.Plastered;



Mon, 02/07/2011 - 02:09 | 939992 Michael
Michael's picture

I find that if you take an Excedrin Migraine tablet before you drink a "Four Loco" that Chucky Shumucky Schumer banned, it gives you almost the same effect as before the formula was changed. 

Mon, 02/07/2011 - 02:26 | 939998 UGrev
UGrev's picture

Please do not seed the internet with that mans' name. You soil the pristine 1's and 0's with his mark. 

Mon, 02/07/2011 - 05:19 | 940079 Michael
Michael's picture

Sorry, it won't happen again.

Sun, 02/06/2011 - 20:51 | 939558 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Hi Ken. My name is Bubba. I'm your new cell mate. I'm very conscious of my nutrition as you will be too. Would you do me the kindest favor and toss my salad bitch ...

Sun, 02/06/2011 - 20:50 | 939559 Yen Cross
Yen Cross's picture

Let's get it done.

Sun, 02/06/2011 - 20:54 | 939567 TomJoad
TomJoad's picture

The number of fuckers who need to start jumping just keeps increasing, ponzientially.


Sun, 02/06/2011 - 21:27 | 939619 mynhair
mynhair's picture

Call Oxford!  We have a winner!


Frigging love it.

Sun, 02/06/2011 - 21:13 | 939593 lynnybee
lynnybee's picture

.... then why the hell isn't HANK PAULSEN , et al., blah , tried on TREASON CHARGES !   ...............where's my pitchfork !

Sun, 02/06/2011 - 21:23 | 939609 nmewn
nmewn's picture

Santelli was handing out a bunch of them...there is plenty to go around for whoever wants one ;-)

Sun, 02/06/2011 - 21:19 | 939599 RobotTrader
RobotTrader's picture

Fergie is looking hot on the Superbowl halftime show....

Sun, 02/06/2011 - 21:25 | 939614 nmewn
nmewn's picture

Yep...but the music was giving me a headache ;-)

Sun, 02/06/2011 - 21:28 | 939622 mynhair
mynhair's picture

Who is Fergie?  but, OMG anyway.

Sun, 02/06/2011 - 22:05 | 939653 Fidel Sarcastro
Fidel Sarcastro's picture

She sang at 1/2-time...and the Pack suks...


Sun, 02/06/2011 - 22:21 | 939671 cosmictrainwreck
cosmictrainwreck's picture

great jugs....go PACKERS!

Mon, 02/07/2011 - 00:20 | 939869 Cursive
Cursive's picture

@ Robo

Fergie looked and sounded like used gatorade.  Wouldn't drop the misses for that shit.

Mon, 02/07/2011 - 07:54 | 940170 lunaticfringe
lunaticfringe's picture

I'd hit it. Twice.

Sun, 02/06/2011 - 21:26 | 939618 max2205
max2205's picture

Karma has it's way ALWAYS.

But back to what happened, who with power would let the whole system blow up if they had the ideas and power to prevent it. Phase III acceptance underway. Get over it

Sun, 02/06/2011 - 21:26 | 939620 MiningJunkie
MiningJunkie's picture

Watch the Superbowl Half-Time Show and tell me America ain't great!

BUY BUY BUY - they saved the financial system and the DOW is going to 36,000.

(Paulson should be enshrined along with the Bernankenstein and Turbo Timmy...)

Loser short-sellers betting against America - didn't Zimbabwe teach you all a lesson?

Sun, 02/06/2011 - 21:36 | 939627 mynhair
mynhair's picture

Stupor Bowl = snore.  Takes too much time away from XtraNormal.

FU, TZA works well for me in small doses.

Amerika is done, until public hangings are revived.

Desired order of appearance:

Andy Sterns

George Soros

That AFL-CIO moron

Whoever sung 'Evergreen'

Maurice Strong

All Obama voters ( yes, Karl, that includes you, as you are so stupid, you fell for that 'hopey-changey CIT)

Sun, 02/06/2011 - 22:17 | 939666 UGrev
UGrev's picture

WTF is up with 1 play 1 commercial.. *sigh*

Sun, 02/06/2011 - 22:14 | 939662 koot
koot's picture

When cops break the law, crime becomes the law.

Sun, 02/06/2011 - 22:33 | 939683 cosmictrainwreck
cosmictrainwreck's picture

well, to quote my hero, Jon Stewart, "....those fuckin' guys..." Yep, the whole damn world's gone crazy. But to those fuckwads, who are "crazy like a fox" they sure showed us, now didn't they? USA down in flames..... save an intervention, which I've prayed for for years. Still a bummer, as I recall the documented evidence of "mysterious" key events in the American Revolution FBO the patriots........ nevertheless, the poor bastards still had to fight & die & go thru Valley Forge and etc. UGH

Sun, 02/06/2011 - 22:36 | 939689 Everyman
Everyman's picture

BEP's sucked at HT, and

HANK PAULSEN NEEDS TO BE BEATEN WITH A LOG CHAIN!  That fucking prick.  Is this our "leadership" and "talent" in the Financial industry?  This fuck?  Are you fucking kidding me?

This motherfucker needs to be in jail, a really bad one to be a bitch for Bubba and balck mamba.


Hank I hope some crazy bastard takes out your lying corrupt ass!  You fucking prick!

Sun, 02/06/2011 - 22:39 | 939695 Everyman
Everyman's picture

Never mind, just really pissed at those in charge.

Had to edit.  A bit spicy.

Mon, 02/07/2011 - 01:43 | 939971 ebworthen
ebworthen's picture

I liked it.

Sun, 02/06/2011 - 22:44 | 939702 ak_khanna
ak_khanna's picture

Th­e rich corporatio­­­­­ns and the too big to fail bunch of banksters can get away with murder, fraud, coercian, harrasseme­­nt of the general public and any other illegal activity under the sun because they have a lot of influence on the political class, the rule makers and the rule enforcers due to their enormous purchasing power. So irrespecti­­­­­­­­­­v­e of the position in the government­­­­­­­­­­, everyone works for their benefit.

The politician­­­­­­s around the world are nothing more than auction items which can be sold to the highest bidder. They will do whatever they can for the lobbyist paying them the maximum amount of money or votes, be it the unions, the banksters, the richest corporatio­­­­­­ns or individual­­­­­­s. They are in the power seat to extract maximum advantage for themselves in the small time frame they occupy the seat of power.

The rest of the population is least of their concerns. The only activity they do is pacify the majority of the population using false statistics and promises of a better future so that they do not lynch them and their masters while they are robbing the taxpayers.


Sun, 02/06/2011 - 22:50 | 939715 UGrev
UGrev's picture

...and how many will call their reps for what it's worth. I will be calling mine tomorrow for the 2nd time this month over stuff like this. 

Mon, 02/07/2011 - 08:39 | 940190 anony
anony's picture

I look at informing my elected sociopathic reps about their incompetence, thievery, and self-dealing criminality and narcissism, the way I look at the armaments in my house.

The weapons give me a bit of peace of mind, I will be able to take care of home invasion with relative ease, and the picture at eye level on the front door of a miniature Shotgun should discourage all but the desperate.

But I don't expect I will able to change one damned thing regarding the crime statistics in our country.


Mon, 02/07/2011 - 09:46 | 940271 UGrev
UGrev's picture

well said... well said. I would add, however, that you've also satisfied your moral obligations and that anyone complaining about the left over vaseline who hasn't contacted their reps to raise a fuss is in no position to complain, whereas you are. :)

Sun, 02/06/2011 - 23:33 | 939762 topcallingtroll
topcallingtroll's picture

This is why many people are pleased that al queda is targetting the banking class. No one else seems to want to seek justice. Keep in mind that this changes security forever. None of the top bankers can have a favorite restaurant anymore. Gram amounts of plutonium have been widely available on the black market ever since the fall of the ussr. 5.1 sieverts is enough for lethality. Polonium is 4.7. Plutonium is poor man's polonium. Any top banker can no longer publicly announce future restaurant plans. They can no longer discuss this over the cell phone. If the government has the unscramble key, then probably 10,000 people in the government have access to it. As we have seen the government doesnt keep secrets well and hackers probably.already have the backdoor key to unscramble cell phone conversations. Any suggestions? Is private encoding available like pgp for a cell phone?

Neither they nor their family can open any mail. From cancer.causing agents to lethal agents now letters from their family doctor or credit card offers or other fake letters from the irs are suspect. I am only.going to mention one other agent but there are dozens, anthrax. There wont be a cloud of powder next time. So much anthrax isnt necessary. I advise bankers and their secretaries to get vaccinated,families too.

The sad part of this is that the poor secretary or wife are the people likely to open the mail. Of course they have all been reassured by bank security personnel that the banks are on top of things as citi security spokesman said. They are not on top of things and need to really think through their security and all the potential chemical and biological threats out there.

I mention only two because those threats are widely known. No need to give al queda any more hints.

Mon, 02/07/2011 - 00:07 | 939843 nmewn
nmewn's picture

"This is why many people are pleased that al queda is targetting the banking class. No one else seems to want to seek justice."

Well there ya go. Al quiznos'...our fucking hero's.

"As we have seen the government doesnt keep secrets well..."

You should hook up with the 911 truthers, they haven't figgered that part out yet.

Is there any level of dissembling you won't go to? Don't bother's already known.

Mon, 02/07/2011 - 00:19 | 939865 topcallingtroll
topcallingtroll's picture

I had to look.up the definition of dissemble! Thanks for teaching me a new word!

Mon, 02/07/2011 - 00:27 | 939883 gwar5
gwar5's picture

You dissemble before you resemble.

Mon, 02/07/2011 - 06:59 | 940122 slewie the pi-rat
slewie the pi-rat's picture

careful g 5, he may resemble that remark about dissemble.

Mon, 02/07/2011 - 07:52 | 940168 nmewn
nmewn's picture

LOL...that wasn't half bad.

But you guys missed the Quiznos/hero's part...hero=submarine sandwich.

And to topcall...your welcome.

Mon, 02/07/2011 - 00:49 | 939915 Terminus C
Terminus C's picture

There is no Al Queda, at least not in the form that you seem to think it exists.  Bankers are not worried about men in caves half way across the world.  They are worried about the people in this country finally saying, "enough!" and putting caps in their asses.  However, it does not translate as well on the nightly 'nooze', so Al Queda fits the bill.

Mon, 02/07/2011 - 02:27 | 939999 merehuman
merehuman's picture

A sniper bullet from our discontent and homeless men in uniform is also likely.


Sun, 02/06/2011 - 23:57 | 939825 Seasmoke
Seasmoke's picture

$500 million tax free when he became much else needs to be said, other than there is no reason why the people do not claw back all of Paulsons assets !

Mon, 02/07/2011 - 00:17 | 939863 Zero Govt
Zero Govt's picture

Hank said, “...this would be a disclosable event and we do not want a disclosable event.”

Classic line. The makers of Laws break the most Laws... in this case the lawmakers avoid them all together by going off record, under the table, slide around the goalposts. They think they are bigger than the Law others should comply with.

The Lawmakers construct a world for us to provide "Law and Order" while they practice anarchy. Trust me every Law is made by an arsehole and usually a crook. Marxists, Socialists and Fascists make the most Laws. Stand up Hank the Wank and be counted 

Mon, 02/07/2011 - 00:23 | 939878 gwar5
gwar5's picture

Sounds pretty illegal to me. Lewis was scared, intimidated and out of his league.

Fraud on the markets, the taxpayers, the shareholders, unconstitutional coercian by government and the Fed, violation of SEC rules and all done by what did Lewis describe these guys (reptiles)?

"Prominent and honorable?" and  "Highly respected?" and "High up in the government."

Book 'em Danno!

Mon, 02/07/2011 - 00:29 | 939886 Cursive
Cursive's picture

Hopefully Ron Paul will bring some much needed attention to this.  I'm not asking Ron Paul to to save us; I just think trying to a.) bring some official recognition to these crimes and b.) demonstrate to voters that someone is listening could go a long way towards increasing public involvement. Some Washington lawmaker, any Washington lawmaker....

Mon, 02/07/2011 - 00:36 | 939897 Seasmoke
Seasmoke's picture

John Thain sure seems to have skated away nicely on this fraudulent transaction he pulled off

Mon, 02/07/2011 - 02:49 | 940011 Milton Waddams
Milton Waddams's picture

He did not skate-off as much as he skated-on.

The former goldman sachs veteran, new york stock exchange boss, and merrill lynch chief executive officer is now heading CIT Group.

It is a country club and

you ain't invited, bitchez.

Mon, 02/07/2011 - 01:04 | 939932 Vendetta
Vendetta's picture

Most technologically advanced and powerful military and the US gets its ass kicked by a bunch of corrupt bankers and political sock puppets without a shot fired at them or judicial system capable or willing to stop them.  Pathetic.

Mon, 02/07/2011 - 01:51 | 939965 Coldfire
Coldfire's picture

This will be the benchmark for future levels of corruption. Ie., Paulsonian levels of corruption. The fish indeed rots from the head.

Mon, 02/07/2011 - 02:09 | 939995 anonnn
anonnn's picture

Fascism is the form that the capitalist state assumes when the ruling oligarchy feels that its economic and political power is seriously threatened by working class revolution.

hattip s/o else.

Mon, 02/07/2011 - 04:20 | 940055 williambanzai7
williambanzai7's picture

The "Rule of Low"

There obviously is one.

Mon, 02/07/2011 - 06:40 | 940107 trendybull459
trendybull459's picture

any ine cares today about what he is doing?

Mon, 02/07/2011 - 06:42 | 940108 sabra1
sabra1's picture

anyone notice the drought, fires, floods, storms, earthquakes, starvation, have all intensified since obama came into power? could obama be the antichrist? YOU BET!!!

Mon, 02/07/2011 - 06:58 | 940121 Husk-Erzulie
Husk-Erzulie's picture

God I hope you forgot the sarc tag...

Mon, 02/07/2011 - 08:00 | 940175 nmewn
nmewn's picture

Yeah...I have never given Barry that much credit either.

Mon, 02/07/2011 - 06:53 | 940117 trendybull459
trendybull459's picture

We are slowly disconnected from food,energy,sex,love,ability to cooperate each with other by thoose monsters seating in chairs of command,let them out,Vivat Revoluzion!Vivat Love,friendship and unitiry between people!

Mon, 02/07/2011 - 07:52 | 940169 lunaticfringe
lunaticfringe's picture

I dedicated my entire motivation and blogging efforts to Hank Paulson thusly:

I want to personally thank Hank Paulson, former Treasury Secretary, elite banker, con man. It was you Hank, that woke me up and reminded me that anything is possible. Architect of the greatest con I've ever seen. Giving the entire country a haircut and then ripping us off again to protect your cronies. The greatest con game is the one where the marks don't even know they've been conned. You make Bernie Madoff look like a fucking piker.

Without Hank, I am nothing.

Mon, 02/07/2011 - 08:29 | 940185 anony
anony's picture

If only words were bullets.

Mon, 02/07/2011 - 08:03 | 940176 GeneH3
GeneH3's picture

So a strong verbal agreement is not disclosable but a weak written one is. Not just criminals -- criminal idiots!

Mon, 02/07/2011 - 08:17 | 940181 BernankeHasHemo...
BernankeHasHemorrhoids's picture

We need some posts on actions that we can take to bring down the criminal Obama/Geithner/Bernanke regime.

Mon, 02/07/2011 - 08:28 | 940184 anony
anony's picture

There is only one action to take and that one is violent, personal with extreme prejudice, and leaves a templar hole in the sides of their filthy heads.

They will not change till several of them are made extinct.  All else, all other attempts to get them to change, are just idle conversation.

Mon, 02/07/2011 - 08:25 | 940183 anony
anony's picture

Above all else, a Shout out THANK YOU!! for bringing back the names of the Perpetrators from the past.

These thieves think that they can leave office and gradually be forgotten for the most part in time.

Keep it up.


Mon, 02/07/2011 - 08:40 | 940196 cmalbatros
cmalbatros's picture

Can someone verify this as legit or tin foil paranoia , could this be another MERS ? but way bigger.

Mon, 02/07/2011 - 08:41 | 940199 eddiebe
eddiebe's picture

Time to bring back Mc Carthy type mania in this country. Salem witch hunt type and not to leave out the most important : Guillotine.

Mon, 02/07/2011 - 09:25 | 940247 overmedicatedun...
overmedicatedundersexed's picture

chris cox, i seem to remember that guy..what happened to him??

he has managed to avoid it all..hiding out in a RV park is the rumor.

Mon, 02/07/2011 - 10:39 | 940354 Joe Davola
Joe Davola's picture

I say we stick with Christina Aguilera's version of the national anthem from now on:


What so proudly we watched at the twilight's last reaming.

Tue, 02/08/2011 - 09:32 | 942569 Fiat Money
Fiat Money's picture

"Among some of the discoveries of the financial crisis is that the entire financial system is now, following the Lehman bankruptcy, built entirely on fraud...    ...the Fed's and the Treasury's orders to make a mockery of fiduciary responsibility...confirm[s] that there is no rule of [law]  in America, or rather whatever law there is, it only applies to the less than immortal (i.e. the sub-banker class)."

  Well said. But it really has always been that way in America.   Don't forget the "Three Fifths Compromise" to the United States Constitution, which in passing, only obliquely (and only to establish the count of "other persons" for the benefit of their slaveholders in receiving representation in Congress) mentions slavery"three fifths of all other Persons."  By that simple designation, you were excluded from "the rule of law,"   and slave owners could beat, torture, and/or  murder you (executing "insolent" or runaway slaves were the catch-all crimes) with impunity.

 This was an entire class of people...even in 1787 tens of thousands of people, in many rural South Carolina districts slaves vastly outnumbered whites -   excluded from "protection of rights under law."

 btw, Lehman Bros. were originally a slave owning business in South Carolina - some things never change!  

   Anyone who says "the United States was conceived in Liberty and Freedom" is delusional: it was conceived by slave owning founders who had the profits and time to spend working up revolution, because the slaves were providing the labor and profits for their leisure time.  12 of first 15 US presidents were slave owners, part of a system as ruthless as the gs/jpm legalized financial & economic extortion cabal, and  GWOT gestapo terror/torture gulag today. 

Tue, 02/08/2011 - 09:33 | 942570 Fiat Money
Fiat Money's picture

"Among some of the discoveries of the financial crisis is that the entire financial system is now, following the Lehman bankruptcy, built entirely on fraud...    ...the Fed's and the Treasury's orders to make a mockery of fiduciary responsibility...confirm[s] that there is no rule of [law]  in America, or rather whatever law there is, it only applies to the less than immortal (i.e. the sub-banker class)."

  Well said. But it really has always been that way in America.   Don't forget the "Three Fifths Compromise" to the United States Constitution, which in passing, only obliquely (and only to establish the count of "other persons" for the benefit of their slaveholders in receiving representation in Congress) mentions slavery"three fifths of all other Persons."  By that simple designation, you were excluded from "the rule of law,"   and slave owners could beat, torture, and/or  murder you (executing "insolent" or runaway slaves were the catch-all crimes) with impunity.

 This was an entire class of people...even in 1787 tens of thousands of people, in many rural South Carolina districts slaves vastly outnumbered whites -   excluded from "protection of rights under law."

 btw, Lehman Bros. were originally a slave owning business in South Carolina - some things never change!  

   Anyone who says "the United States was conceived in Liberty and Freedom" is delusional: it was conceived by slave owning founders who had the profits and time to spend working up revolution, because the slaves were providing the labor and profits for their leisure time.  12 of first 15 US presidents were slave owners, part of a system as ruthless as the gs/jpm legalized financial & economic extortion cabal, and  GWOT gestapo terror/torture gulag today. 

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