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Tishman Speyer Joins Ranks Of TBTF As Fed Gives Real Estate Firm Taxpayer Subsidized Tip
For all who think that the Fed has received the Ukrainian-cum-Marriott Garden Inn unlimited one-hour special giftset only from the TBTF banks, you are wrong: it appears the broke real-estate industry has also provided some favors to the FRBNY, and is now demanding, and receiving, preferential treatment. Tishman Speyer, whose 5.7 million sq. foot portfolio acquired from Blackstone in 2007, has been unable to renovate its insolvent properties as lenders have been unwilling to negotiate a restructuring. One of the lenders is none other than the Federal Reserve, which took over loan commitments by Bear Stearns. Crains New York reports that the FRBNY has finally relented and at what likely is a loss to taxpayers, has given Tishman $100 million to restructure its loans at preferential terms. Tishman's take on this development was pretty clear: "It's great for our tenants and it's great news for everybody we do business with,” said Casey Wold, Tishman senior managing director in Chicago. “We now have enough capital to improve the properties and lease up the entire portfolio to stabilization." Thank you taxpayers - you now have indirectly bailed out the following Chicago properties: Civic Opera Building, 10 & 30 S. Wacker Drive complex,1 N. Franklin St., 161 N. Clark St. and 30 N. LaSalle St.
More from Crains:
Tishman Speyer Properties has reached an agreement to restructure a $1.4-billion loan package covering five downtown Chicago office properties, a move that should help the buildings compete for tenants in a tough leasing market.
Manhattan-based Tishman had been negotiating a restructuring for months with lenders including the Federal Reserve Bank of New York, which took over the loans on the properties after the 2008 collapse of Bear Stearns Cos., the original lender.
The Fed last year froze reserve accounts set up to pay for tenant improvements and leasing commissions, hurting Tishman's ability to attract tenants to the buildings, which include landmarks like the Civic Opera Building and the 10 & 30 S. Wacker Drive complex.
Under the debt restructuring, money will now be available to cover those costs.
Under the agreement, more than $100 million is expected to be made available to cover tenant improvements and leasing commissions, with more than $50 million being directly invested by Tishman. The maturity date on the loans also will be extended to 2014 from 2012.
Tishman financed the $1.7-billion acquisition with about $1.4 billion in debt. The Fed is still holding about $737 million in loans after selling the rest.
We except that calls from the Fed for a complete collapse of the office real estate market will join in threats of financial systemic anihilation if the Pittman litigation against the Fed is not overturned before the time the Supreme Court is asked to chime in on the case, which should be some time just before the mid-term elections. Of course, by then the now discredited SCOTUS will opine on behalf of the employer of this administration, which will be the final straw to unleash the extremist right wing anger that Bob Janjuah warns about earlier.
h/t Richard Kimble
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Our government is a big, big fan of unaffordable real-estate prices.
"One of the lenders is none other than the Federal Reserve, which took over loan commitments by Bear Stearns."
Not that the law matters anymore....but is it not illegal for the Fed to take on assets (make loans) to institutions that aren't backed by full faith and credit of the US gov't?
Please correct me if I'm wrong, because I'm stretching into the fuzzy part of my knowledge base here.
HAWHAWHAWHAW
"Illegal"
HAWHAWHAWHAW
You may think it's funny, but I need to be able to explain this to other people not just find it laughable. Violations of black letter law, by the powers of the state, are the basis of justifiable revolution, and it must be clear. Laugh at me, and the absurdity of it all, if you will, but it's important. It is not enough just to sense that malfeasance is being done, which I do know, down to my bones, but this isn't just about me.
they probably got around it through the creation of Maiden Lane, which is an SPE and has some kind of ownership structure that enables them to dodge the legal requirement. Technically probably Maiden Lane owns the debt and the Fed owns some part of Maiden Lane somehow, etc. That's where the audit bill would have come in handy.
CC
Sorry, I was not laughing at you...I am so jaded by tha Fed doing anything they want...taking all tha Banksters'trash at full price, giving tha bastards free PixelDust at tha window, tha ClownHouse impotent, tha criminals in tha Congress bought an paid for...non-existent Justice Dept...GSE's taking on all mortages 90 days late...
I laugh or I rage.
There is no Law.
+1 ... the whole thing is laughable, but really not funny.
The law does not apply until someone brings charges. We, the morts, have no standing. There is no recourse.
Further, the Supremes have already ruled that a current member of Congress *ALSO* does *NOT* have standing to bring charges. (They said if Congress doesn't like what the Fed does, then Congress should handle that through the Fed charter or legislation, a single senator/congressman can't do anything.)
Yes, the law is irrelevant when no one has standing.
This will end at the guillotines. There will be both good-and-bad as a result.
based on my read of it you are proposing sedition [including possibly commotion] vs. treason http://en.wikipedia.org/wiki/Sedition LOL
"It's great for our tenants and it's great news for everybody we do business with,” said Casey Wold, Tishman "
Motherfuckers
+++
Believe it is in the FED bylaws that they can lend to whomever they want including individuals - not holding my breath waiting for the check tho...
After the precedent set with AIG's bailout, there is no limit. Where was the law in bailing out an insurance company not even regulated by a Federal entity?
Executions.
Outrage!
What a big fuckin joke. Except it isn't a joke; it is real.
Anybody else remember Iacocca on TV for months begging congress for a bailout? Remember the number? 1 billion. Yeah I know it's been ~30 years, but still...
BONUS TIME!!
Will this shit ever end?!
Not until YOU stop it, all of us yous that is.
What are you willing to do to make it stop? That's the real question.
Tax strike = Work strike. Don't pay the mortgages, don't work, don't buy, don't trade, and pull your money from the banks. That's the only peaceful way it happens. When do we start?
We must speak the only language that they understand. We have the power, we give it to them, and we can say when is enough.
I agree with you. It's time to stop joking around and take matters into our hands, peacefully, hopefully. Here's an addition to your list of things to do: exercise our votes! My mantra (picked up on this site, I think, but don't remember exactly where): If they're in, they're out. Vote 'em all out and start over. Players like Peloci, Frank, Boxer, Feinstein, Dodd, Shelby, etc need to go. They are far too corrupt and intertwined with large lobbying groups to be representing the common men and women of the U.S.
You also asked above about the legality of the Fed's actions. I believe you are correct that this move is totally illegal, but I too would like some definite answers. I finally have the ear of my adult children, their friends, and the families of their friends. People are listening, but we must present very clear accurate information. Anything other than that weakens our case. TPTB for so long now have appeased the masses with easy credit and handouts. People really like that and it's tough to talk them into realizing too much sugar isn't good for them. The counterargument has to be very compelling indeed.
Section 13 of the Federal Reserve Act states as follows (the bolded emphasis is mine):
"2. Discount of Commercial, Agricultural, and Industrial Paper
Upon the indorsement of any of its member banks, which shall be deemed a waiver of demand, notice and protest by such bank as to its own indorsement exclusively, any Federal reserve bank may discount notes, drafts, and bills of exchange arising out of actual commercial transactions; that is, notes, drafts, and bills of exchange issued or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which have been used, or are to be used, for such purposes, the Board of Governors of the Federal Reserve System to have the right to determine or define the character of the paper thus eligible for discount, within the meaning of this Act. Nothing in this Act contained shall be construed to prohibit such notes, drafts, and bills of exchange, secured by staple agricultural products, or other goods, wares, or merchandise from being eligible for such discount, and the notes, drafts, and bills of exchange of factors issued as such making advances exclusively to producers of staple agricultural products in their raw state shall be eligible for such discount; but such definition shall not include notes, drafts, or bills covering merely investments or issued or drawn for the purpose of carrying or trading in stocks, bonds, or other investment securities, except bonds and notes of the government of the United States. Notes, drafts, and bills admitted to discount under the terms of this paragraph must have a maturity at the time of discount of not more than 90 days, exclusive of grace.
3. Discounts for Individuals, Partnerships, and CorporationsIn unusual and exigent circumstances, the Board of Governors of the Federal Reserve System, by the affirmative vote of not less than five members, may authorize any Federal reserve bank, during such periods as the said board may determine, at rates established in accordance with the provisions of section 14, subdivision (d), of this Act, to discount for any individual, partnership, or corporation, notes, drafts, and bills of exchange when such notes, drafts, and bills of exchange are indorsed or otherwise secured to the satisfaction of the Federal Reserve bank: Provided, That before discounting any such note, draft, or bill of exchange for an individual, partnership, or corporation the Federal reserve bank shall obtain evidence that such individual, partnership, or corporation is unable to secure adequate credit accommodations from other banking institutions. All such discounts for individuals, partnerships, or corporations shall be subject to such limitations, restrictions, and regulations as the Board of Governors of the Federal Reserve System may prescribe.
[12 USC 343. As added by act of July 21, 1932 (47 Stat. 715); and amended by acts of Aug. 23, 1935 (49 Stat. 714) and Dec. 19, 1991 (105 Stat. 2386.]
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4. Discount or Purchase of Sight DraftsUpon the indorsement of any of its member banks, which shall be deemed a waiver of demand, notice, and protest by such bank as to its own indorsement exclusively, and subject to regulations and limitations to be prescribed by the Board of Governors of the Federal Reserve System, any Federal reserve bank may discount or purchase bills of exchange payable at sight or on demand which grow out of the domestic shipment or the exportation of nonperishable, readily marketable agricultural and other staples and are secured by bills of lading or other shipping documents conveying or securing title to such staples: Provided, That all such bills of exchange shall be forwarded promptly for collection, and demand for payment shall be made with reasonable promptness after the arrival of such staples at their destination: Provided further, that no such bill shall in any event be held by or for the account of a Federal reserve bank for a period in excess of ninety days. In discounting such bills Federal reserve banks may compute the interest to be deducted on the basis of the estimated life of each bill and adjust the discount after payment of such bills to conform to the actual life thereof."
It may be painting with too broad a stroke but I have decided to (passively enough) end existing friendships with people who work for TBTF, hedge funds, AIG, yadda, yadda. If they ask me why, I'll tell them but no sense being a jerk in their face, just fade to black. Maybe through the long forgotten concept of "shame" they might gain a sense of how "the others" are viewing them and their employers. But maybe not. Shun them, force them to come closer to making a meaningful decision with what their role is in the world.
Fuck, they will throw money at anything except the guy wondering where his next meal is coming from.
So at the end of the day they will have given all taxpayer money, and invented money, over to big businesses.
Sure it must be bank bonus time again. Must be some billions accumulating pretty quickly with those perfect trading months.
ATTN: PTB
I would like to be in your inner circle, getting free handouts. $100 million sounds nice. Don't give it to everybody, just me. I know you like playing favorites. I could spend lots of money living it up with my friends, buying a few mansions, throwing crazy parties and acquiring expensive hobbies. Think how much good I would do the world! But only give it to me because if you give it to everybody, then I can't live it up as easily. We need a lot of poor people so they can't afford what we rich people want to have. So we can't give the money to everybody, just me.
:)
Here's what "Don't Ask, Don't Tell" means to me:
DON'T ASK (the fed) ---> (the fed) DON'T TELL
these are the people who thought they could make a 1 billion dollar investment successful using absurd rent projections based on kicking out the state and city governments' favorite high profile "working class" group, the entrenched rent stabbers. the fed should just skip the bailing out step and add whatever TS owes them their own ledger. at this point its not real currency anyway.
It's about time Obummer sent some pork to ChiTown.
Swallow your loses Tishman you punk.
It's time for another Obama speech I think.
Nobama 2012. Have you seen that tshirt yet?
10 and 30 south Wacker are the buildings formerly known as The Chicago Mercantile Exchange.
Where there is not Justice there will be not Peace! Prepare!
Does this surprise anyone?
With no disrespect to the author, one reads and hears "taxpayers funds" when referring to US Gov't funds. I find that "taxpayers" is a misnomer because taxpayers as a class have no real access to gov't funds which of course have partly arisen due to taxpayers tax payments. Once we've paid our taxes, fees, et al, we're at the mercy of the gov't as to their wise or harmful disposition thereof.
With no disrespect to the author, one reads and hears "taxpayers' funds" when referring to US Gov't funds. I find that "taxpayers'" is a misnomer because taxpayers as a class have no real access to gov't funds which of course have partly arisen due to taxpayers' tax payments. Once we've paid our taxes, fees, et al, we're at the mercy of the gov't as to their wise or harmful disposition thereof.
A view from Europe: Where does this come from ? Telegraphed
from Washington ? This is really the staw that
breaks the camel's back ? Mish Shedlock
argues that Timmie should be indicted on
securities fraud, is this Black Rock bailing out
one of its clients through a Maiden Lane loophole,
or truly a NYFRB loan ? There's got to be
a TBTF behind this, GS is one of the bidders
on the largest German shopping center gone bankrupt-
Karstadt
Privatize gains and nationalise losses. Sounds like free market capitalism to me. Another bailout of the uber rich by the middle class taxpayer.
WTF? Who the F@#K approves this bullshit, now we are getting robbed in broad daylight. The question is when if ever the media ever decides to do the right thing and report what is really going on. The answer: Apparently the majoirty of Americans still believe Obama. Media will be on the "side" of the majoirtyu because advertisers will buy the media outlet's that reaches the broadest buyer"s market. When Obama's National approval dips below 45%, the media will switch and the feeding frenzy should begin. However O'bummer careening clown car adiministration will get a 10-15% leeway that Bush didn't get beccause friends should always cut their friends some slack, Hussein is their friend via shared political views. However, he has pulled off the greatest trojan horse strategy to date....if you didn't like bush, you going to hate Obama.
Jerry Speyer was on the board of directors of the Federal Reserve Bank of New York not long ago. Additionally, the Speyer family, according to some banking history literature, is one of the older banking families involved in the "central banking" schemes that have become the norm for financial operations. I would site the literature but I cannot recall specifics off hand. So, the actions of the American central bank should really be no surprise.
www.newyorkfed.org/aboutthefed/orgchart/.../speyer.html
also
Jerry Speyer - Wikipedia, the free encyclopedia
http://en.wikipedia.org/wiki/Jerry_Speyer
wonder what the terms / intrest rate is?
0% of course...