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Matt Taibbi Asks Why The Fed Gave $220 Million In Bailout Money To The Wives Of Two Morgan Stanley "Bigwigs"

Tyler Durden's picture





 

Matt Taibbi has resurfaced with another stunner of Wall Street impropriety which will lead to merely more silence, even more unanswered questions and be quickly buried by the kleptocratic oligarchy.

The Real Housewives of Wall Street: Look Who's Cashing In On the Bailout

Why is the Federal Reserve forking over $220 million in bailout money to the wives of two Morgan Stanley bigwigs?

From Rolling Stone Magazine

In August 2009, John Mack,
at the time still the CEO of Morgan Stanley, made an interesting life
decision. Despite the fact that he was earning the comparatively low
salary of just $800,000, and had refused to give himself a bonus in the
midst of the financial crisis, Mack decided to buy himself a gorgeous
piece of property — a 107-year-old limestone carriage house on the Upper
BeerEast Side of New York, complete with an indoor 12-car garage, that
had just been sold by the prestigious Mellon family for $13.5 million.
Either Mack had plenty of cash on hand to close the deal, or he got some
help from his wife, Christy, who apparently bought the house with him.

The Macks make for an interesting couple. John, a Lebanese-American
nicknamed "Mack the Knife" for his legendary passion for firing people,
has one of the most recognizable faces on Wall Street, physically
resembling a crumpled, half-burned baked potato with a pair of
overturned furry horseshoes for eyebrows. Christy is thin, blond and
rich — a sort of still-awake Sunny von Bulow with hobbies. Her major
philanthropic passion is endowments for alternative medicine, and she
has attained the level of master at Reiki, the Japanese practice of
"palm healing." The only other notable fact on her public résumé is that
her sister was married to Charlie Rose.

It's hard to imagine a pair of people you would less want to
hand a giant welfare check to — yet that's exactly what the Fed did.
Just two months before the Macks bought their fancy carriage house in
Manhattan, Christy and her pal Susan launched their investment
initiative called Waterfall TALF. Neither seems to have any experience
whatsoever in finance, beyond Susan's penchant for dabbling in
thoroughbred racehorses. But with an upfront investment of $15 million,
they quickly received $220 million in cash from the Fed, most of which
they used to purchase student loans and commercial mortgages. The loans
were set up so that Christy and Susan would keep 100 percent of any
gains on the deals, while the Fed and the Treasury (read: the taxpayer)
would eat 90 percent of the losses. Given out as part of a bailout
program ostensibly designed to help ordinary people by kick-starting
consumer lending, the deals were a classic heads-I-win, tails-you-lose
investment.

So how did the government come to address a financial crisis caused
by the collapse of a residential-mortgage bubble by giving the wives of a
couple of Morgan Stanley bigwigs free money to make essentially
risk-free investments in student loans and commercial real estate? The
answer is: by degrees. The history of the bailout era reads like one of
those awful stories about what happens when a long-dormant criminal
compulsion goes unchecked. The Peeping Tom next door stares through a
few bathroom windows, doesn't get caught, and decides to break in and
steal a pair of panties. Next thing you know, he's upgraded to homemade
dungeons, tri-state serial rampages and throwing cheerleaders into a
panel truck.

The impetus for this sudden manic expansion of the bailouts was a
masterful bluff by Wall Street executives. Once the money started
flowing from the Federal Reserve, the executives began moaning to their
buddies at the Fed, claiming that they were suddenly afraid of investing
in anything — student loans, car notes, you name it — unless
their profits were guaranteed by the state. "You ever watch soccer,
where the guy rolls six times to get a yellow card?" says William Black,
a former federal bank regulator who teaches economics and law at the
University of Missouri. "That's what this is. If you have power and
connections, they will give you a freebie deal — if you're good at
whining."

This is where TALF fits into the bailout picture. Created just after
Barack Obama's election in November 2008, the program's ostensible
justification was to spur more consumer lending, which had dried up in
the midst of the financial crisis. But instead of lending directly to
car buyers and credit-card holders and students — that would have been
socialism! — the Fed handed out a trillion dollars to banks and hedge
funds, almost interest-free. In other words, the government lent
taxpayer money to the same assholes who caused the crisis, so that they
could then lend that money back out on the market virtually risk-free,
at an enormous profit.

Cue your Billy Mays voice, because wait, there's more! A key aspect of TALF is that the Fed doles out the money through what are known as non-recourse loans.
Essentially, this means that if you don't pay the Fed back, it's no big
deal. The mechanism works like this: Hedge Fund Goon borrows, say, $100
million from the Fed to buy crappy loans, which are then transferred to
the Fed as collateral. If Hedge Fund Goon decides not to repay that
$100 million, the Fed simply keeps its pile of crappy securities and
calls everything even.

This is the deal of a lifetime. Think about it: You borrow millions, buy
a bunch of crap securities and stash them on the Fed's books. If the
securities lose money, you leave them on the Fed's lap and the public
eats the loss. But if they make money, you take them back, cash them in
and repay the funds you borrowed from the Fed. "Remember that crazy guy
in the commercials who ran around covered in dollar bills shouting, 'The
government is giving out free money!' " says Black. "As crazy as he
was, this is making it real."

read the full article here

 


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Tue, 04/12/2011 - 12:53 | Link to Comment trav7777
trav7777's picture

guillotines, bitchez

Tue, 04/12/2011 - 12:57 | Link to Comment krispkritter
krispkritter's picture

Fixed it: Guillotine the bitches, bitchez.

Tue, 04/12/2011 - 13:05 | Link to Comment depression
depression's picture

Clawback Bitchez !

Tue, 04/12/2011 - 13:11 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

"But when the state is lending money at zero percent and the banks are turning around and lending that money back to the state at three percent, how is that different from just handing rich people money?"

I loved this question, even though he left out the part about fractional reserves. 

He could have said, "...and the banks are turning around and lending 15-20 times that same amount of money back to the state ..." 

Great writing!

Tue, 04/12/2011 - 13:14 | Link to Comment A Man without Q...
A Man without Qualities's picture

The Federal Reserve - making rich people richer since 1913....

Tue, 04/12/2011 - 13:25 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

...risk free.

Tue, 04/12/2011 - 14:12 | Link to Comment long juan silver
long juan silver's picture

Regarding the 10-20X multiplier off reserve balance requirements, the risk there is/was principal risk on any lending/purchases beyond the Fed grant.

Agreed that the omission of the reserve/multiplier opportunity significantly understates the free ride given to these assholes, just challenging the categorization of the multiplied balances as "risk free". Course  there's always too big (or small) to fail!

Tue, 04/12/2011 - 14:23 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

The Federal Reserve - making rich people richer since 1913....risk free.

Like Orwell said, "All investors have risk but some investors have more risk than others."

Tue, 04/12/2011 - 14:54 | Link to Comment Popo
Popo's picture

We need guns.   Lots of guns.

http://www.youtube.com/watch?v=Y70vcs3oV14

Tue, 04/12/2011 - 15:58 | Link to Comment New_Meat
New_Meat's picture

Lawyers, guns, and money.

http://www.youtube.com/watch?v=S5puAN1PGQw

 

Tue, 04/12/2011 - 17:42 | Link to Comment DollarMenu
DollarMenu's picture

No.

Not guns.

We all need a 'time out'.

The whole country - everyone just stay home.

First - turn off the TV, the radio, the cellphone.

No buying, no selling, no driving, no flying, no eating out, no working.

Nothing.

Live off those emergency preps - play with the kids, but no new toys.

Tend your garden.

A few weeks of nothing and let's see what happens.

If nothing else, it will be a great dry run for the real thing.

Won't happen of course - to many games to watch,

too many addicted to JIT paychecks or gov't subsidies.

Can't mess with the career path.

Gotta have....(fill in the blanks).

Nope - won't work.

Too many too settled into the status quo - upsetting as it is.

Maybe polar shift and landmass tsunamis?

Seriously, what is it going to take?

 

Tue, 04/12/2011 - 18:08 | Link to Comment tip e. canoe
tip e. canoe's picture

the evolution of revolution

Tue, 04/12/2011 - 18:16 | Link to Comment shortus cynicus
shortus cynicus's picture

you've forgot buying silver !

Tue, 04/12/2011 - 19:53 | Link to Comment WhiskeyTangoFoxtrot
WhiskeyTangoFoxtrot's picture

I've been hearing murmurings of violent revolt recently, and then you come along with this. Brilliant. I think it could actually work. And unlike taking to the streets and dragging Jamie Dimon straight to a waiting guillotine, the authorities couldn't do shit about this. Completely legal. Completely destructive. I love it. Let's pick a week.

Tue, 04/12/2011 - 20:20 | Link to Comment Big Corked Boots
Big Corked Boots's picture

General Strike (bitchez)

edit: new t-shirt slogan: If you're not pissed off, you're overmedicated.

Tue, 04/12/2011 - 23:42 | Link to Comment FeralSerf
FeralSerf's picture

A good guillotine is hard to find these days.  Maybe there is an opportunity there.

Wed, 04/13/2011 - 10:22 | Link to Comment damnitalready
damnitalready's picture

It's a nice idea, but it won't work.  One of the benefits of keeping unemployment so high, 20% of the country could strike and there would be roughly no loss in work when those who are hungry for a paycheck will step up to do it.  It's not like we all have union protectionism on our side.

Get 40% of the country to participate and you might make a ding, but surely it would take atleast half the working country to do this successfully.

Tue, 04/12/2011 - 21:21 | Link to Comment Guarded Pessimist
Guarded Pessimist's picture

I'm in. who else is?

Tue, 04/12/2011 - 22:56 | Link to Comment Widowmaker
Widowmaker's picture

Time out?

Not a chance, time will only make it worse.

Time IS out.

Tue, 04/12/2011 - 23:58 | Link to Comment Pepe
Pepe's picture

I like your proposal.It has a Ghandi air to it. Any idea on how to bring it about

Tue, 04/12/2011 - 21:45 | Link to Comment almost_have_a_name
almost_have_a_name's picture

The only thing these bitches risked is their necks.

Tue, 04/12/2011 - 14:56 | Link to Comment willien1derland
willien1derland's picture

OK - AMWQ & HH - Great ideas - gonna combine them & offer it on a t-shirt - 'The Federal Reserve, making rich people richer, risk free, since 1913' - WB7 you can pull this off!

Tue, 04/12/2011 - 15:09 | Link to Comment Zero Govt
Zero Govt's picture

Socialism for the rich... and their wives

Tue, 04/12/2011 - 22:46 | Link to Comment Sopra Tutt1
Sopra Tutt1's picture

Actually this is what people voted for.

Obama said that he's not looking for more witch hunts, but that he's looking toward the future. This is what hope and change were all about.

I have a feeling that he's next campaign slogan will be hope and pray.

Tue, 04/12/2011 - 23:44 | Link to Comment FeralSerf
FeralSerf's picture

Hope and pray the sheep don't wise up.  So far, so good.

Tue, 04/12/2011 - 15:31 | Link to Comment anonnn
anonnn's picture

All of it justified by...privilege.

Tue, 04/12/2011 - 13:23 | Link to Comment trav7777
trav7777's picture

Those of us even vaguely in the know - and there were a lot - saw through TALF as soon as it was announced.

Essentially, the Fed used these devices to sop up debt all over the spectrum.  If you had some of your own cash, you could put it up (sorta) and then you bought access to the Window.  Not for the little people, only the big fish.

Then you take out enough loans to buy your shit ALONG WITH paying yourself management fees and continue to roll loans until you've extracted your initial profit + 20% or whatever your expected ROI was.  Then, fuckit, stop paying, let the Fed have the shit.

The Fed DIRECTLY subsidized ALL the big fish along the way.  Little fish got the firings, cuts, pay freezes, etc.  I was working at Comcast during the time this fucking CEO got his nearly record (for US F500s) pay increase.  They were actively attriting staff all up and down, letting significant knowledge walk out the door.  And the CEO got the payraise.  Everyone below executive level got fucked while these motherfuckers bought themselves a $25M giant TV screen at HQ to serve as a digital wall (no shit) replete with digital ants crawling across it.

Tue, 04/12/2011 - 13:28 | Link to Comment InconvenientCou...
InconvenientCounterParty's picture

3 years later and little if anything has changed structurally. Quite the contrary in fact.

Tue, 04/12/2011 - 22:39 | Link to Comment James
James's picture

My hope for ALL these people is that they do what Jesse Livermore did.

Tue, 04/12/2011 - 13:33 | Link to Comment AccreditedEYE
AccreditedEYE's picture

+1 Willbur Ross was spouting about this program big time way back when...

http://www.businessinsider.com/willbur-ross-gives-thumbs-up-to-the-talf-2009-3

It is a bit extreme though to fund your financially unsophisticated wife's shell company for free profits when you (Mack) were a large contributor to the crisis. Complete BS. They didn't even have the brains to take it off shore.

Great comment on Exec Pay.  lol

Tue, 04/12/2011 - 13:58 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture


They didn't even have the brains to take it off shore.

No, they were so arrogant, they didn't even bother. You know the drill; Turn the other cheek.

Tue, 04/12/2011 - 14:07 | Link to Comment SilverRhino
SilverRhino's picture

Not to worry, considering the bulk of his wealth is tied up in real estate mortgage servicing Wilbur has his own assfucking coming in a year or so.  

Tue, 04/12/2011 - 19:06 | Link to Comment Bob
Bob's picture

Durden's ass was also chafing about it then.  I remember wishing I could get my hands on that kind of money with that kind of "risk."  It was giddlying to even imagine it--as everybody at ZH in those days agreed.  It was like Brittany Spears falling through your door whacked on coke wearing that very short skirt without panties . . . before she let herself turn to splaying dough. 

What a fucking fuck fest the Fed, uh, taxpayers threw for the banksters.  And they brought all their friends.

But, back to reality, we really gotta do something about all them "entitlements." 

Social security, medicare and medicaid.  Probly should take down all the other socialist scams of the poor, too. Somebody has to be the "adults" here and pay the bill, right?

Tue, 04/12/2011 - 22:28 | Link to Comment Rick64
Rick64's picture

  Exactly, they want to talk about cutting entitlements, all the while handing out billions to every goddamn bank on the planet on top of that they are giving it away to these offshore companies that probably aren't paying taxes, and have their investments backed by the taxpayer. They have taken hypocrisy to a new level.

Wed, 04/13/2011 - 03:35 | Link to Comment recoveringibanker
recoveringibanker's picture

First of all, those fascists shouldn't even be referring to SS, Medicare and Medicaid as entitlements. 
Every paycheck I've received was lighter by over 7%, and my employers footed the same amount (which should have gone to me for actually doing something).

Entitlement?! Kiss my entitled ass fuqtards.

Wed, 04/13/2011 - 04:43 | Link to Comment Harlequin001
Harlequin001's picture

need to get back to a system that rewards real success, not accounting gimmicks...

Wed, 04/13/2011 - 10:16 | Link to Comment damnitalready
damnitalready's picture

Bull, you paid for the people who were retired when you were paying in, not paying a dime for your future retirement.  It is entitlement, you gave toward others' entitlement, and now we're paying for yours.  It was never a savings account.

I realize how fu**ed up it is to pay in and risk not getting what's "yours", but call it for what it is.

Tue, 04/12/2011 - 13:39 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Yup. That was a story learned well coming out of the 1980s with the S&L crisis. It was a bonanza for the well-connected, all made possible through the generosity of the taxpayer. Only back then the country was still hoping that "Trickle-Down" would work. What they didn't realize is that the wealthy never let wealth trickle. They hoard, they stuff tax free accounts overseas, they buy villas in the South of France, and what they do buy in the US is the kind of stuff that contributes almost nothing to the productive economy: jewelry, fine art, collectible wines, and owning land. Butlers, maids and personal secretaries get a lil bit of a trickle. 

Tue, 04/12/2011 - 13:40 | Link to Comment dark pools of soros
dark pools of soros's picture

but it's a hella great wall tv

http://www.youtube.com/watch?v=EXVOAF9r9S8&feature=related

 

 

Tue, 04/12/2011 - 14:17 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

Comcastic!

(rhymes with bombastic)

Tue, 04/12/2011 - 15:07 | Link to Comment trav7777
trav7777's picture

could have paid 500 employees 50k for the year for that.

Or maybe one year's bonus of the CEO.

The elite class is systematically looting EVERYTHING they touch.

Tue, 04/12/2011 - 15:29 | Link to Comment Rick Masters
Rick Masters's picture

Couldn't agree more. How do we stop them?

Tue, 04/12/2011 - 19:24 | Link to Comment Bob
Bob's picture

Shift the focus from the Corporate Media's theme of cutting so-called "entitlements" to what should be the matter at hand: Making people who should be paying pay.  With all their money--before they go to prison.  That message iisn't hard at all for people to grasp--they just need to hear it.

Wed, 04/13/2011 - 05:01 | Link to Comment Harlequin001
Harlequin001's picture

Entitlements ARE the problem, they are the reason countries sold debt in the first place.

They need to go, all of them. The problem is that too many people think they have a god given right to welfare, which they don't and especially not at my expense.

Tax the rich is a distraction. With a gold standard they would not have been able to make this money in the first place. You need to keep the focus where it should be, about removing the ability to create endless money from thin air...

Tue, 04/12/2011 - 22:57 | Link to Comment Milestones
Milestones's picture

A sheriff can't figure it out???       Milestones

Tue, 04/12/2011 - 15:35 | Link to Comment Sudden Debt
Sudden Debt's picture

What do you expect with a black houseslave in the white house who serves them every time the little bell goes?

 

It's just discusting to see how they even get acces to governement money at all.

 

I got 1 rule: If they do/did it once, they will do it again.

These people need to be stripped from their entire wealth untill they are forced to take a normal job to put food on the table. And anything above 45.000$ a year must be confiscated by the state.

And if they are caught 1 more time doing someting illegal, they must go 20 year to jail and those who "help" them must suffer the same faith.

Somehow I don't think they would do it again if you made a example out of it with the top 5000 of those gangsters.

 

 

Tue, 04/12/2011 - 21:11 | Link to Comment IQ 145
IQ 145's picture

 To be fair about it, I don't think golf-playing comedian knows anything about it. It's not hard to make the punishment fit the crime; but getting these people in the dock is another matter. In general, they're slippery as deerguts on a doorknob. Also, there's an expression; "fuck you money"; whcih is good; but then there is "fuck you power"; and that is better. When you're a member of the rulling class, you have fuck you power; you're really not going to get in trouble. Who indicted or accused King Leopold for the heinous crimes he was responsible for in the Belgin Congo? Nobody. John Pierpont Morgan was suppoened by the US Congress to testify vis a vis his involvement with the 1929 stock market crash; he and his wife and their servants got on an ocen liner in New York and left for France; he didn't even bother replying.  And so forth, and so on. A large part of the Roman Army decided to fight with Julius Caesur for the rights of the commoner against the wealthy elite, and after the fighting and dying was done and he came back to Rome at the head of his victorious army; the Senators stabbed him to death on the floor of the Senate. Because he was a real threat to their privilege; including definetely the privilege to rip off the public purse; and it didn't matter if he had an army or not, (they had one too); they just murdered him. So, it's not so easy.

Tue, 04/12/2011 - 21:42 | Link to Comment SME MOFO
SME MOFO's picture

 

+ plato o plomo

Wed, 04/13/2011 - 00:33 | Link to Comment thegr8whorebabylon
thegr8whorebabylon's picture

et tu brute

Tue, 04/12/2011 - 23:46 | Link to Comment gangland
gangland's picture

sd i love u and ur engleeeeesh

Tue, 04/12/2011 - 19:26 | Link to Comment Bob
Bob's picture

Absolutely systematic.  And they're way better at this than they are at respectable business. 

It seems to truly awaken their latent creativity.  And, for rich people, you gotta admit that's different. 

I always knew they really were special in some way. 

And they have a free army of useful idiots to pave the road for them.

Tue, 04/12/2011 - 14:25 | Link to Comment max2205
max2205's picture

I am sure they hired thousands of unemployed workers too

Tue, 04/12/2011 - 20:35 | Link to Comment disabledvet
disabledvet's picture

"aliens" i think they're called.  and "they want them driving tractor trailers now, too."  and i mean "now" when i say that.

Tue, 04/12/2011 - 15:13 | Link to Comment Hacksaw
Hacksaw's picture

Ya, but we can't have all those dead beat mortgage holders who don't want to pay payments on mortgages that are more than the collateral is worth. They have a moral obligation to pay their debts. Bwahwahwah

Tue, 04/12/2011 - 17:19 | Link to Comment Arkadaba
Arkadaba's picture

Thats what they are really scared of. The sheeple finally understanding the ponzi game. Which is also why the trolls on this site go after certain members.

Tue, 04/12/2011 - 15:52 | Link to Comment Infinite QE
Infinite QE's picture

+1. Revolution is brewing but Joe Sixpack has become too much of Joe Fluoridehead mixed with GMO burgers.

Tue, 04/12/2011 - 19:18 | Link to Comment calltoaccount
calltoaccount's picture

Indeed>

 

David DeGraw (www.ampedstatus.com) will be at the "Sounds of Resistance" concert and protest in New York's Union Square this Friday at 11 AM. Chris Hedges explains why he will be there as well: 

“The banks and Wall Street, which have erected the corporate state to serve their interests at our expense, caused the financial crisis. The bankers and their lobbyists crafted tax havens that account for up to $1 trillion in tax revenue lost every decade. They rewrote tax laws so the nation’s most profitable corporations, including Bank of America, could avoid paying any federal taxes. They engaged in massive fraud and deception that wiped out an estimated $40 trillion in global wealth. The banks are the ones that should be made to pay for the financial collapse. Not us. And for this reason at 11 a.m. April 15 I will join protesters in Union Square in New York City in front of the Bank of America.” 

Where: Union Square Park, New York, NY - When: 11:00 AM - Who: The People Angry at Big Finance - Why: To Break Up the Big Banks

Tue, 04/12/2011 - 21:37 | Link to Comment dark pools of soros
dark pools of soros's picture

sick of the BS here..  break up the banks for what?? if the people do not take charge and create their own alternatives then nothing changes..  break them up and they'll just form again

 

With peer-to-peer lending, you see an alternative.  If it ever really caught on, you will know it since it would get attacked by legislation or dirty tricks by the rich paying people to default en mass to discredit it. 

 

But what we need is more steps like this. Peer-to-peer business, entertainment, etc but you know the majority of the people who complain are shitty workers. They say they work hard but they are just drained by their crap tasks and do not really push productivity to a high level. And would take any easy road if bought out for a song

 

I can go on, but it's a waste of time - like those protests that people think they are accomplishing something since they gave away their sacred free-time.. 

Tue, 04/12/2011 - 22:13 | Link to Comment dark pools of soros
dark pools of soros's picture

and there you have it..  instant gratification junking with no effort to reply

 

exactly my point

 

 

Wed, 04/13/2011 - 08:31 | Link to Comment tip e. canoe
tip e. canoe's picture

"peer-to-peer lending" : the most efficient way for an individual to take control & responsibility for their own personal risk management.

anyone with a belief in free markets & efficient market theory should be all over this.

Wed, 04/13/2011 - 05:08 | Link to Comment Harlequin001
Harlequin001's picture

With gold back in money these people can't leverage these so called opportunities to make these so called peofits. There would be no need to complain about banks, just politicians who will forever promise more than they can deliver, and idiots prepared to vote for anyone that promises it.

Gold back in money, it's the only way.

Tue, 04/12/2011 - 15:57 | Link to Comment anonnn
anonnn's picture

Upon first learning of Student Loan program that was  promulgated by the banking industry, i understood the gambit. 

The new law enabled banks to make government-guaranteed loans to students, in volumes limited only to fractional-reserve creation of electronic accounts.

That explained the craze to offer loans to any student---naive kid or silly child or newly-18 yr old adult---even begging the student to take the cash...because the 18-yr old kid suddenly had a signature worth a fortune to the banker-is-an-authority-figure scammer.

 The bankers simply had no risk of loss playing with OtherPeoplesMoney. Not gambling and not speculating at all, just rigged clever-stroke theft...a license to steal...literally, a privilege.

 

Tue, 04/12/2011 - 20:37 | Link to Comment disabledvet
disabledvet's picture

far worse actually.  "you are required by law to repay your student loan."  ask your doctor.  in short "in your absence government we will be the government."  i'm sensing "absenteeism" on a Biblical scale right now.

Tue, 04/12/2011 - 13:31 | Link to Comment Sancho Ponzi
Sancho Ponzi's picture

A snippet from the full article at RS:

The technical name of the program that Mack and Karches took advantage of is TALF, short for Term Asset-Backed Securities Loan Facility. But the federal aid they received actually falls under a broader category of bailout initiatives, designed and perfected by Federal Reserve chief Ben Bernanke and Treasury Secretary Timothy Geithner, called "giving already stinking rich people gobs of money for no fucking reason at all." 

Tue, 04/12/2011 - 14:45 | Link to Comment Dr_Dazed
Dr_Dazed's picture

Excellent writing - but why is that this sort of reporting only shows up in Rolling Stone, Salon, Vogue and on NPR w/ their Planet Money series?  I know all about the lame-stream media whining, but it still seems like someone ought to pick this sort of thing up.  I guess we are a nation of zombies captured by elitist cabals and corporate controlled government.  Sad.

Tue, 04/12/2011 - 14:48 | Link to Comment Infinite QE
Infinite QE's picture

Because the people who took advantage of this own the media.

Tue, 04/12/2011 - 17:52 | Link to Comment Clancy
Clancy's picture

NPR is actually running interference for the banksters.  It's subtle usually, but unmistakable.

 

Pay close attention to who they *dont* blame.

Tue, 04/12/2011 - 19:22 | Link to Comment calltoaccount
calltoaccount's picture

Right.  NPR has swallowed the Koch-ade and skunked over to the dark side.

Tue, 04/12/2011 - 19:53 | Link to Comment Natasha Fatale
Natasha Fatale's picture

PBS is doing the same thing. Did you watch their documentary on 'Rediscovering Alexander Hamilton' last night?

It was revisionist history at its finest: they had the nerve to equate the Obama's bailouts as a courageous response modeled after Hamilton's own actions during the speculative bubble during Washington's Administration. Can you f$%&ing believe that?! Shameless, especially the part when they interviewed Hank Paulson, depicting him as possessing some Hamiltonian wisdom.

I had to turn it off after the first hour and a half, I couldn't take it anymore.

Tue, 04/12/2011 - 21:55 | Link to Comment dark pools of soros
dark pools of soros's picture

the only problem with all that is that you must feel to see Hamilton in a positive light.  Hamilton was a cancer so I feel the comparisions are perfect... 

Tue, 04/12/2011 - 18:54 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

Looks like you answered your own question. Correctly I might add.

Tue, 04/12/2011 - 20:46 | Link to Comment RockyRacoon
RockyRacoon's picture

Taibbi appeared several times in the past on Olbermann's show talking about his articles.  Everyone didn't ignore Taibbi.   This stuff gets around.

Tue, 04/12/2011 - 20:47 | Link to Comment IQ 145
IQ 145's picture

 Well, look at it this way; which of the three owners of the mass media do you want to get fired by? Your article won't make it out of the editors office, and you will get fired. Simple, eh? There isn't any "someone"; there only employees of the three superrich owners; who are interchangable.

Tue, 04/12/2011 - 21:26 | Link to Comment In Fed We Trust
In Fed We Trust's picture

Tyler,

What ever happend to the Muckety maps?

Tue, 04/12/2011 - 21:32 | Link to Comment In Fed We Trust
In Fed We Trust's picture

Not surprised. Just read that in Boluder CO, they pulle the plug on green energy upgrades to your house.  And its reactactive. Meaning people who bought solar panels 5 years ago with sweet financing deals are finding out that, all of a  sudeen they owe 20,000 grand more on their mortgage beccause the FEDS pulled the plug on these loans. They say they fimnd them to risky! Imagineb that, the banker s say that that efficient energyup upgrades to your home, are your considered risky!

Tue, 04/12/2011 - 13:20 | Link to Comment Popo
Popo's picture

Clawback first.  Then guillotines.  

Actually, screw the guillotines.  Let's just tie 'em to the rear fender and take 'em for a drag -- one by one...

 

 

Tue, 04/12/2011 - 13:26 | Link to Comment trav7777
trav7777's picture

I'm still kinda stunned that not one person laid off, foreclosed, evicted from one of these companies hasn't taken an assault rifle to HQ and capped the executives whose pay went up by 12%

Tue, 04/12/2011 - 13:49 | Link to Comment Holodomor2012
Holodomor2012's picture

fluoride bitchez?

Tue, 04/12/2011 - 14:27 | Link to Comment scythian empire
scythian empire's picture

off with their heads?

Tue, 04/12/2011 - 15:11 | Link to Comment Ese Pinche
Ese Pinche's picture

+ lithium

Tue, 04/12/2011 - 16:45 | Link to Comment Vendetta
Vendetta's picture

The lack of payback is a sad reflection of the state of disunion and lack of focus on what is righteous in the US

Tue, 04/12/2011 - 20:30 | Link to Comment Dburn
Dburn's picture

+10

Unreal. I didn't think of it that way. Not one fucking person went postal. I'll bet they have triple tiered layers of protection at those banks, sharpshooters, laser rays, database profiles and identities from NSA computers right next to the HFT computer banks. If a guy looks like he can't walk a straight line he is vaporized on the spot.

Poof. Clean up on Hallway 13. File missing persons report automatically with NYPD. Mark case 4 years old and closed.

Have a nice day people :-)

Tue, 04/12/2011 - 13:53 | Link to Comment long juan silver
long juan silver's picture

Click the link and read the whole article. Some fucker needs his balls whacked with a hammer and soon.

Excuse me. I've got to go out to the yard and bring in the chair I just threw out the window.

Tue, 04/12/2011 - 13:34 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

With gasoline prices nearing 5$ usd, I'd prefer we drag them in groups as it is more cost effective and environmentally friendly, plus it gives them a chance to network so they'll have more friends in hell.

Tue, 04/12/2011 - 15:02 | Link to Comment willien1derland
willien1derland's picture

Great idea, however, since they named their fraud 'Waterfall TALF' after you drag them a little send them over Niagara Falls & in the spirit of Obam's Healthcare initiative, let's rescue them each time, nurse them back to health & do it over & over again - but I am NOT ANGRY...

Tue, 04/12/2011 - 22:26 | Link to Comment G-R-U-N-T
G-R-U-N-T's picture

Hm....

 

Tue, 04/12/2011 - 13:40 | Link to Comment Urban Redneck
Urban Redneck's picture

RICO

Tue, 04/12/2011 - 14:58 | Link to Comment slaughterer
slaughterer's picture

Could somebody post some pictures of these women here immediately?  I want to see the face of the enemy.

 

Tue, 04/12/2011 - 14:59 | Link to Comment slaughterer
slaughterer's picture

Well, just did a google image search for "Christy Mack" and saw the face of the beast.  Funny, lots of good porn star girls mixed in with the same name.  Must be the SEC connection...

Tue, 04/12/2011 - 15:04 | Link to Comment willien1derland
willien1derland's picture

LMFAO!!! +1,000 - Thank you, I really needed a laugh!

Tue, 04/12/2011 - 15:31 | Link to Comment Zero Govt
Zero Govt's picture

just Googled 'Christy Mack photos' and low and behold, up came a charity bash for The Nature Conservancy... at the bash was the Honorable Henry M. Paulson Jr., former chairman of the Charity (my what a mighty small world Wall Street is!!) ......"Mayor Michael R. Bloomberg was joined by more than 400 prominent New Yorkers and leaders of the world's top financial institutions and corporations to raise $2.5 million to fight climate change..."

Another (green) mask for 'saving the world' by robbing the public, just like 'saving' the worlds financial system ...is there no end to the goodness of these parasites charitable work on our behalf?!!! 

Tue, 04/12/2011 - 16:44 | Link to Comment Vendetta
Vendetta's picture

+47

Tue, 04/12/2011 - 17:49 | Link to Comment velobabe
velobabe's picture

alias christy mack photos' porn star and hot one to boot.

http://www.google.com/images?q=christy+mack&oe=utf-8&rls=org.mozilla:en-...

Tue, 04/12/2011 - 21:58 | Link to Comment tom a taxpayer
tom a taxpayer's picture

Zero Govt - I need a barf bag after reading about that Mack-Paulson-Bloomberg-Nature-Conervancy clusterflock. Yuck!

Wed, 04/13/2011 - 08:37 | Link to Comment tip e. canoe
tip e. canoe's picture

if you dig into the Nature Conservancy a little deeper, you will see that it's the lynchpin in the GoldSack boys' carbon credit scheme.    then look at a map of Eastern LI and see how much land NC owns out there (which I bet they got for a song).

Tue, 04/12/2011 - 22:09 | Link to Comment G-R-U-N-T
G-R-U-N-T's picture

The depth of blatant in your face corruption is mind boggling. How much more can us tax payers take? What will be the breaking point?

 

Wed, 04/13/2011 - 10:28 | Link to Comment Bob Paulson
Bob Paulson's picture

TARP was the Government's money, TALF was the Fed's money, so not the taxpayers. The article is wrong.

Tue, 04/12/2011 - 13:24 | Link to Comment mogul rider
mogul rider's picture

F'ng Bastille Day Bitchez

They must have a civilian killing and fighting force ready, cause I'm about to go Telco?

Tue, 04/12/2011 - 13:39 | Link to Comment blindfaith
blindfaith's picture

we are kidding ourselves, nothing will happen to them...ever.  They have the full faith, credit, and Homeland security of the United States of America to watch out for their best, very best, personal safety and financial interests.

Why would anyone think or believe that any of these criminals will ever pay for their crimes when history has proven otherwise.

Tue, 04/12/2011 - 14:47 | Link to Comment Mister Meaner
Mister Meaner's picture

Welcome to Facsism.

http://www.google.com/images?um=1&hl=en&newwindow=1&safe=off&client=fire...

Some images of how it ended for Mussolini.

That's the only hope we have for Hope and Change®

Tue, 04/12/2011 - 15:05 | Link to Comment willien1derland
willien1derland's picture

Trademark is a very nice touch - I admire your attention to detail - Great post

Tue, 04/12/2011 - 16:49 | Link to Comment Vendetta
Vendetta's picture

indeed.  It is such a bummer that our military doesn't work for the citizens of the US regardless of what individual soldiers may be led to think.

Tue, 04/12/2011 - 15:43 | Link to Comment Abitdodgie
Abitdodgie's picture

You are quite right ,I mean its not like the American public will do anything , talk about no balls , or pussy whipped. Or is it they just don't give a shit and are quite happy selling their children into slavery , just to be left alone with a flat screen.

Tue, 04/12/2011 - 21:55 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Flat Screen Flat Earth, Flat Line. Round Belly, Round in the Chamber, Round and round.

A big, fat un-holy mess of a country has the rest of the world in it's beef-fat dripping maws.

Talk aside, this is going to be a heck of a party people. It's played so many times before and the 2% of the wide awake population usually gets Rounded Up by the Flat thinkers, first.

Revolution, what an out-moded concept. If this can be reversed, it has to be precisely that, reversed. Drop out of the system. You'll be amazed at how little you can thrive on. Note I said thrive, not survive.

Dial back, sit home, no dis-traction, listen to the voice in your own head. 

ORI

http://aadivaahan.wordpress.com/2010/08/19/want-to-save-the-world-or-at-least-your-self/

Tue, 04/12/2011 - 12:56 | Link to Comment AR15AU
AR15AU's picture

+1

The sheep will keep getting fleeced until fraud is punishable by death.

Tue, 04/12/2011 - 13:05 | Link to Comment silvertrain
silvertrain's picture

It is in China..There was just a story not long ago about a baby formula scam going on..Straight up lead to the head and a dirt nap for them...

Tue, 04/12/2011 - 13:24 | Link to Comment trav7777
trav7777's picture

for every fraud uncovered they have 100 more

Tue, 04/12/2011 - 15:01 | Link to Comment malikai
malikai's picture

Kill the chicken to scare the monkey.

Wed, 04/13/2011 - 04:14 | Link to Comment Stormdancer
Stormdancer's picture

Rope is cheap and reusable.

Tue, 04/12/2011 - 13:45 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

same ol' bullshit propaganda as in USA...nail the little guy and big dogs skate; how many comrades inside the Forbidden City have they "prosecuted"?

Tue, 04/12/2011 - 13:29 | Link to Comment Translational Lift
Translational Lift's picture

If this is true...ALL of these fuckers should be drawn & quartered ...then hung from a lamp post!

Tue, 04/12/2011 - 13:36 | Link to Comment Magic Mamaliga
Magic Mamaliga's picture

+1000 "To counterfeit is death"

Tue, 04/12/2011 - 13:39 | Link to Comment laughing_swordfish
laughing_swordfish's picture

As I have said before:

It's time to party like it's 1789.

 

Tue, 04/12/2011 - 13:04 | Link to Comment Vagabond
Vagabond's picture

We could seriously use a masked vigilante.

Tue, 04/12/2011 - 13:11 | Link to Comment espirit
espirit's picture

We have our very own - WB7!

Tue, 04/12/2011 - 13:21 | Link to Comment flacorps
flacorps's picture

I don't recall a mask on Robespierre.

Tue, 04/12/2011 - 13:25 | Link to Comment DarkAgeAhead
DarkAgeAhead's picture

They walk among us, but I'm pretty sure none are up to this job.

www.reallifesuperheroes.org

Tue, 04/12/2011 - 13:08 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Hang the Fed.

Now.

Any questions?

Tue, 04/12/2011 - 13:41 | Link to Comment Hugh G Rection
Hugh G Rection's picture

names and addresses please?

Tue, 04/12/2011 - 14:04 | Link to Comment SheepDog-One
SheepDog-One's picture

Those wives must have had some WILDLY incriminating testimony and photos.

Tue, 04/12/2011 - 14:25 | Link to Comment I am Jobe
I am Jobe's picture

Agreed. Start sharpening. No bankers or their families to be spared moving forward. Show this on TV Worldwide. Time to honor themselves has come. Meet eh blade Biatches I say. Let the games begin.

Tue, 04/12/2011 - 15:11 | Link to Comment willien1derland
willien1derland's picture

There is a GREAT IDEA - What a REALITY TV SHOW that would make! Weakest Link theme - the show starts with the lesser criminals & each can offer up info to prevent their execution (not there beat down or prison time) by naming someone who has stolen more than them - I am uncertain of the Season Finale but take your pick of the top banksters & Government accomplices - we can have people bid on the 'punishment' with proceeds that directly retire government debt - Need a creative ZHer to name the show - any ideas?

Wed, 04/13/2011 - 04:21 | Link to Comment Stormdancer
Stormdancer's picture

I haven't had a TV for years.  You just enunciated the only thing I've ever heard that might entice me to buy one.  :)

 

Nahh.....I bet someone would webcast it....

Tue, 04/12/2011 - 15:50 | Link to Comment Abitdodgie
Abitdodgie's picture

If someone went to the white house and started to shoot the place up , who would join him , that's right no-one .

Tue, 04/12/2011 - 14:42 | Link to Comment caconhma
caconhma's picture

During the Russian revolution (and after it), these people were just buried alive. It was the justice for endless thievery. Just curious, how many pornography bosses were bailed out?

This shit is just unbelievable. There is no any fucking regard about any law and/or the people of America. This will end very badly. People will be really mad.

America is not fucking & shitty Egypt. We will have a very bloody revolution.

God bless Internet. I doubt you will find it in our "free" Rothschild family controlled mainstream media.

Tue, 04/12/2011 - 14:48 | Link to Comment scaleindependent
scaleindependent's picture

 

 Tax cuts, free loans, and Fed Reserve Corp.  giveaways for the 0.1%  plutocrats AND austerity for the rest: Paul Ryan budget for the proles! Biatch!

Tue, 04/12/2011 - 17:01 | Link to Comment Mentaliusanything
Mentaliusanything's picture

Matt has a shorter life span than Tyler?

Over and unders taken ?

One cannot keep kicking a bull in the balls and expect a MOOOOOOOOOO

Wed, 04/13/2011 - 00:16 | Link to Comment cxl9
cxl9's picture

Matt has a shorter life span than Tyler?

Nah. Taibbi managed to stay alive in Russia during the 1990s, exposing the staggering corruption of the day and embarassing the oligarchs. Presumably that was considerably more dangerous than writing articles about taxpayer rip-offs in America, which of course will go largely ignored. Taibbi also knew right where to draw the line in Russia. There were certain powerful people he knew better than to piss off if he wanted to stay alive. Read all about it in The Exile: Sex, Drugs, and Libel in the New Russia.

Tue, 04/12/2011 - 20:13 | Link to Comment bankonzhongguo
bankonzhongguo's picture

This is why it is not simply enough to prosecute the banksters.

Regrettably, they and their entire families may need to be killed before things will be made right.

This country had a revolution to get rid of people like this.

And the Fed, DOJ and team Obama knew all about this FOR YEARS. 

Just like all the radiation falling out of the sky into your kids' milk and Happy Meals.

Just to make it interesting, what does Charlie Rose think of his in-laws about this?

Kinda like John Stewart and his silent NYSE brother.

How about a show on this Chuck?

Journalist?! Its crimes against humanity (again).

Just what common denominator joins all these lumbering Beasts?

Thanks for the story Mr. Taibbi.

 

Mack the Knife.

Knife the Mack.

 

 

Tue, 04/12/2011 - 20:18 | Link to Comment IQ 145
IQ 145's picture

 Amazing; it's just like ancient Rome, or everyplace else; the rich really do pay each other off out of the public purse; who woulda thunk it. Matt better shut up or he's gonna have a one car accident.

Tue, 04/12/2011 - 20:25 | Link to Comment pesamystik
pesamystik's picture

guillotine, hah. people here aren't going to do a damn thing about it. that's what the internet is for, a collective place for us to moan and despair. nothing else will come of it besides this article.

Wed, 04/13/2011 - 00:24 | Link to Comment laughing_swordfish
laughing_swordfish's picture

I'm not so sure.

We're getting very close to a "Marie Antoinette Moment" here...

As an earlier poster alluded to, the Chinese know how to handle this sort of thing.

Ordinary criminals (murderers, drug dealers, etc.) get the "needle" (intra-cardiac injection of carbolic acid) - quite painful, but quick and quiet.

For "economic crimes" (fraud, product adulteration, self-dealing, theft of government funds), it's a different story.

First, the local population is mustered in a nearby stadium - "Public Executions Today!"

After a period of cheerleading by Party cadre, the condemned are led out, each with a sign  around his neck detailing his crime: "I embezzled" "I adulterated food" "I stole from the pension fund" and so forth. One by one, each is led to a microphone to confess his crimes and beg for mercy from the people.

Of course, none is forthcoming.

After this little bit of theater is performed, the guards blindfold each criminal and truss them up in a kneeling position, placing them in a row. Then, after more exhortation of the crowd, the leader of the guard detail draws his service weapon and slams home a magazine.

Finally, the leader goes carefully down the row ...one bullet, one piece of justice administered.

Most fittingly, the cost of the proceedings is billed to the families of the condemned - right down to the cost of the bullet.

There was a video of one such proceeding on YouTube a while back, but it's been taken down...

 

Pour Encourager Les Autres...

Tue, 04/12/2011 - 12:53 | Link to Comment samsara
samsara's picture

Matt and RR doing the good work.

If nothing else,  He can claim  "Vampire Squid"  as a lexicon add.

Tue, 04/12/2011 - 13:01 | Link to Comment jus_lite_reading
jus_lite_reading's picture

Perhaps he should ask WHT THERE ARE NO PITCHFORKS AND PIKES IN THE STREETS!!!!!

Tue, 04/12/2011 - 13:55 | Link to Comment weinerdog43
weinerdog43's picture

How is that the only serious investigative journalism on the financial mess starts and stops w/Matt Taibbi? 

Forbes? Fortune? NY Times? WSJ? Barrons?...One might start to wonder if there's an actual conspiracy to keep the plebes in the dark.  Hmmmm.

Tue, 04/12/2011 - 15:48 | Link to Comment bania
bania's picture

are you asking this question rhetorically? or do you really need it spelled out for you?

Tue, 04/12/2011 - 19:34 | Link to Comment weinerdog43
weinerdog43's picture

It's not as funny when you have to explain the joke. 

Tue, 04/12/2011 - 16:02 | Link to Comment tamboo
tamboo's picture

who'd a thunk it!

*Jewish Media moguls, Jewish Actors, Comedians, and writers

"Financed by Jewish Bankers"

http://www.vnnforum.com/archive/index.php/t-44990.html

Tue, 04/12/2011 - 22:39 | Link to Comment Widowmaker
Widowmaker's picture

You will eat junks but you are absolutely, absolutely right.

All it takes is the Jews coming out against this shit of which there are -- none.

Tue, 04/12/2011 - 22:41 | Link to Comment Widowmaker
Widowmaker's picture

You will eat junks but you are absolutely, absolutely right.

How many do you hear coming out condemning this shit?

Not -- fucking -- one.

Tue, 04/12/2011 - 16:03 | Link to Comment tamboo
tamboo's picture

Seeking Nominations for the 100 most Destructive Jews in America!
http://www.vnnforum.com/showthread.php?t=44723

Tue, 04/12/2011 - 17:05 | Link to Comment Mentaliusanything
Mentaliusanything's picture

Hey Tambo yah getting a lot less junks = WINNING

Tue, 04/12/2011 - 17:10 | Link to Comment Mentaliusanything
Mentaliusanything's picture

Jesus (thorn in side) I forgot ... they go to bed early and get up late.

Hate mail coming in (well is not Sunday) SOOOOOON

Tue, 04/12/2011 - 17:05 | Link to Comment Mentaliusanything
Mentaliusanything's picture

That was a good laugh. Conspiracy bitches

Tue, 04/12/2011 - 12:54 | Link to Comment JustPrintMoreDuh
JustPrintMoreDuh's picture

Off with their heads!

Tue, 04/12/2011 - 12:57 | Link to Comment FubarNation
FubarNation's picture

Makes a fellow really not want to pay his taxes this year.......or any other.

Tue, 04/12/2011 - 12:57 | Link to Comment silvertrain
silvertrain's picture

bet that she has bar gold in a horse stall...

Tue, 04/12/2011 - 13:00 | Link to Comment Cleanclog
Cleanclog's picture

Frickin incredible!!!  Take to all the wires and do not let this story get buried.  Tweet, post, FB, letters to Congress, etc.  Thanks ZH for bringin it to us, and thanks Matt for researching and writing and Rolling Stone for publishing!

What next?  Gates Foundation to underwrite her palm healing work for anti malarial work?

Tue, 04/12/2011 - 13:42 | Link to Comment Mae Kadoodie
Mae Kadoodie's picture

Maybe someone can ask The Bernank about this during his press conference in a couple of weeks.

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