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Obama's Fed Board Appointee Was Previously Busted, And Quit, For "Impropriety"

Tyler Durden's picture




 

Yesterday, to much fanfare, the White House blasted that it was Obama's desire to appoint Allan R. Landon, a Hawaiian community banker, to serve on the Board of Governors of the Federal Reserve System. To wit: "President Obama said, “Allan Landon has the proven experience, judgment and deep knowledge of the financial system to serve at the Federal Reserve during this important time for our economy.  He brings decades of leadership and expertise from various roles, particularly as a community banker.  I’m confident that he will serve our country well.

Apparently what he also brings as Bloomberg's (formerly of Dow Jones) Dawn Kopecki reminds us, is the usual near-criminal cronyism and corruption that we have all grown to love and expect from every single Fed governor in recent history.

Recall from May 2005, courtesy of the WSJ:

The Seattle Federal Home Loan Bank removed two bank executives from its board and is requiring their lending institutions to repurchase about $73 million in FHLB stock that was improperly sold late last year, just before the dividend was cut and future redemptions were restricted.

 

The Seattle FHLB, one of 12 regional cooperatives owned by commercial banks, thrifts and credit unions, announced in December that it was cutting its dividend and would restrict future redemptions by its member banks as part of a remedial plan with its regulator, the Federal Housing Finance Board, to shore up its internal controls and profitability. Prior to the announcement, three institutions with executives on Seattle's board redeemed large quantities of stock in the co-op.

 

Seattle's auditor, PriceWaterhouseCoopers LLP, refused to sign off on the FHLB's fourth-quarter and year-end financial statements until the board fully examined whether the three directors had access to material information that wasn't yet public ahead of the transactions.

 

The Seattle board said yesterday that Bank of Hawaii Corp. Chief Executive Allan Landon and Washington Federal Savings CEO Roy Whitehead agreed to step down, while their banks agreed to repurchase the stock to settle the matter.

 

The board noted in a statement that Messrs. Landon and Whitehead didn't intend to improperly benefit from the transactions and have denied any wrongdoing. But the board said its independent-review committee determined that "there was the appearance of impropriety" when the Bank of Hawaii and Washington Federal redeemed $25.4 million and $48 million, respectively, of Seattle FHLB stock in October 2004.

 

It also said the two CEOs "failed to comply with a rule requiring the disclosure of conflicts of interest by a director by failing to make disclosure to the Seattle Bank board of their institutions' planned redemptions."

* * *
A spokesman for the Bank of Hawaii, based in Honolulu, expects to buy back the $25.4 million of redeemed stock within the next week, a spokesman there said.

In other words, Mr. Landon, who according to Obama "brings decades of leadership and expertise from various roles" really brings experience as an alleged failed embezzler. Alleged because he "stepped down" before the whole fiasco was further investigated by appropriate authorities - instead of merely self-regulated - an escalation that may have ended up with a prison sentence for Landon. Or, as Obama would call it, "proven experience, judgment and deep knowledge of the financial system." Truth is: we will never know.

Instead, nearly a decade later, and an Obama administration that clearly has no clue how to even do a simple Google background check on its appointees to the most important entity in the US, is about to become a Fed board member and serve the "country well",  although it is unclear just how: perhaps when he wires some $25 million into an unnamed offshore bank account it will be seen as peanuts compared to the billions other Fed board members, such as Jamie Dimon, have successfully rerouted in the past into their own preferred financial vehicles?

Joking aside, if Landon's nomination by Obama is not rescinded after this humiliating disclosure, perhaps it is time for a much more in-depth inquiry into the basis for the surprisingly close relationship between the born in Hawaii president and this Hawaiian community banker?

 

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Wed, 01/07/2015 - 18:20 | 5634699 Squid Viscous
Squid Viscous's picture

Another Tribesman?

Wed, 01/07/2015 - 18:20 | 5634702 localsavage
localsavage's picture

Looks like he will fit right in...

Wed, 01/07/2015 - 18:22 | 5634713 Soul Glow
Soul Glow's picture

Jinx

Wed, 01/07/2015 - 18:28 | 5634731 SeattleBruce
SeattleBruce's picture

Shocked, I tell ya, shocked!

Wed, 01/07/2015 - 18:33 | 5634755 Soul Glow
Soul Glow's picture

He's a failed embezzler though, so all the other crony fascists are going to laugh at him.

Wed, 01/07/2015 - 18:42 | 5634799 Augustus
Augustus's picture

We know only that he failed at one attempt.

In total, I suspect this nominee escaped with enough to buy Obammie some jewels.

Wed, 01/07/2015 - 19:18 | 5634910 NoDebt
NoDebt's picture

"This will go down on your permanent record"  (as a resume enhancement)

I seriously doubt this administration even knows anyone who isn't crooked.  Up next:  Al Sharpton to head the IRS.

Wed, 01/07/2015 - 19:58 | 5635064 cifo
cifo's picture

I bet the decision to appoint him was made over a round of golf.

Thu, 01/08/2015 - 00:26 | 5635792 PrayingMantis
PrayingMantis's picture

 

... ""President Obama said, “Allan Landon has the proven experience, judgment and deep knowledge of the financial system to serve at the Federal Reserve during this important time for our economy."

... "Obama's Fed Board Appointee Was Previously Busted, And Quit, For "Impropriety""

 

... a classic case of "Lust in Translation"  ...

Wed, 01/07/2015 - 19:12 | 5634902 RaceToTheBottom
RaceToTheBottom's picture

Trick question.  He is a banker, therefore a person who commits financial crimes.

Wed, 01/07/2015 - 18:29 | 5634742 negative rates
negative rates's picture

10 to 1 the next nomonie is from Chicago. 

Wed, 01/07/2015 - 18:30 | 5634748 Richard Chesler
Richard Chesler's picture

"didn't intend to improperly benefit from the transactions and have denied any wrongdoing."

This story is getting fucking old I tell ya.

Wed, 01/07/2015 - 18:30 | 5634745 max2205
max2205's picture

We cronie'd  some folks

Wed, 01/07/2015 - 18:36 | 5634770 Stoploss
Stoploss's picture

Community banker for the community organizerer er.

Wed, 01/07/2015 - 19:35 | 5634982 The Wizard
The Wizard's picture

It is a pre-requisite for almost anyone holding a political position, having some sort of signature authority, be in a position to be compromised via blackmail.

Wed, 01/07/2015 - 18:21 | 5634706 A Nanny Moose
A Nanny Moose's picture

I believe Mariner S Eccles was LDS. Is that part of the tribe? Jews for Jebus?

Wed, 01/07/2015 - 18:30 | 5634743 SeattleBruce
SeattleBruce's picture

Jews for Joseph?

Wed, 01/07/2015 - 19:01 | 5634864 booboo
booboo's picture

Yes, LDS would like to think they are the new chosen, Salt Lick Hebrews, Utah Yentils, Salt Lake Levites, Joseph Smithites, whatever but unlike the Hebrews wandering in the desert for 40 years they just shot up a few towns and made a deal with the Feds that if they could settle some injun infested shit hole they could keep it.

I'm tellin ya, look out for these sleeper jew wanna be's.

Wed, 01/07/2015 - 20:09 | 5635101 knukles
knukles's picture

Mariner Eccles was indeed LDS.
While the LDS is not "part of the tribe", they do refer to non-members, Jews, Catholics, Muzzies, etc., as "gentiles", but it is a term they borrowed from the Bible.  They do however, view the US Constitution as a "scared" document and have traditionally within the deeper part of the institution, been at great loggerheads with the Federalies what with self-governance (had a tough time staying out of the civil war) polygamy, taxes, etc.  Odd intertwined history.  But Jews, not.  Jews count to them as any other outsider.... a lower life form.

This from the FRB's own website. 

http://www.federalreservehistory.org/People/DetailView/75

Wed, 01/07/2015 - 18:33 | 5634765 Counterpunch
Wed, 01/07/2015 - 18:40 | 5634794 Bay of Pigs
Wed, 01/07/2015 - 18:56 | 5634847 Squid Viscous
Squid Viscous's picture

shortest book in the world: white Gentiles named Allan, Alan, or Allen

Wed, 01/07/2015 - 18:21 | 5634705 q99x2
q99x2's picture

Move in with SWAT teams and arrest that fucker

Wed, 01/07/2015 - 18:29 | 5634735 McMolotov
McMolotov's picture

SWAT teams are for people who aren't in the Big Club, like some random dude with his weed plants or scary babies in cribs.

Thu, 01/08/2015 - 00:43 | 5635836 IrritableBowels
Wed, 01/07/2015 - 18:24 | 5634707 Theta_Burn
Theta_Burn's picture

Impropriety? thats all? as opposed to Tim Giethner's outright non tax paying ass?

i's say this is a step up in integrity...

Wed, 01/07/2015 - 18:22 | 5634709 Soul Glow
Soul Glow's picture

He'll fit right in.

Wed, 01/07/2015 - 18:22 | 5634710 LawsofPhysics
LawsofPhysics's picture

Please in a corporatist/crony/fascist system this type of behavior is expected. It is in fact just the type of experience that they are looking for.

Wed, 01/07/2015 - 18:29 | 5634738 Soul Glow
Soul Glow's picture

Like Robert Mishkin who cheated Iceland and then lied about it on camera.

https://www.youtube.com/watch?v=5msVl3oZl4U

Wed, 01/07/2015 - 18:34 | 5634768 Bay of Pigs
Bay of Pigs's picture

Frederic, but who cares. That fuckan hack should have gone to prison.

Wed, 01/07/2015 - 18:56 | 5634846 Soul Glow
Soul Glow's picture

He's very memorable at dinner parties.

Wed, 01/07/2015 - 20:37 | 5635179 knukles
knukles's picture

Yeah.  I remember we had tons of fun with his CV falsehoods here on The Hedge.
Tyler nailed him, but good.

Wed, 01/07/2015 - 18:24 | 5634716 Rainman
Rainman's picture

Moar corrupt vermin surrounding the bumbling Oblameo ? ...shocking.

Wed, 01/07/2015 - 18:27 | 5634726 buzzsaw99
buzzsaw99's picture

:yawn: BUSINESS AS USUAL

Wed, 01/07/2015 - 18:28 | 5634734 shamslive
shamslive's picture

Obama has selected the former head of a community bank in Hawaii to fill a vacancy on the Federal Reserve Board unbelievable ...

Wed, 01/07/2015 - 18:30 | 5634740 Chupacabra-322
Chupacabra-322's picture

How the FUCK am I not surprised? It's a Criminal Fraud UNITED STAES, CORP, INC. Run by Criminals & owned by Criminals.

Wed, 01/07/2015 - 18:32 | 5634749 negative rates
negative rates's picture

Yea but don't tell them that, they wouldn't listen to you anyhoos.

Wed, 01/07/2015 - 18:32 | 5634752 BeerMe
BeerMe's picture

I suppose to be on the Fed one must be criminally dishonest.  So yeah...experience and all that...

Wed, 01/07/2015 - 18:43 | 5634808 negative rates
negative rates's picture

It's a case of denial. The Fed is always wrong, but never in doubt.

Wed, 01/07/2015 - 18:33 | 5634764 sTls7
sTls7's picture

Well, maybe that's why BO appointed him, he got caught... a good candidate for 'scapegoat' the second time around if need be.

Wed, 01/07/2015 - 18:33 | 5634766 Sun and Moon
Sun and Moon's picture

Obama's grandmother, Madelyn Payne Dunham, was a vice president of the Bank of Hawaii for years. When she died in 2008, Landon and other bank officials organized a memorial service for her in Honolulu.

So Landon's main qualification seems to be that he once organized a memorial service for O's grandmum.

Wed, 01/07/2015 - 18:38 | 5634783 Bay of Pigs
Bay of Pigs's picture

Too funny, I never knew the Bankster connection with Obamas family. Makes sense.

And the Bank of Hawaii is the main bank in the state. Branches everywhere. Very few other banks there.

Wed, 01/07/2015 - 18:43 | 5634803 Theta_Burn
Theta_Burn's picture

Obama's creed...who you know and/or blow...

Wed, 01/07/2015 - 18:41 | 5634793 wardawg12
wardawg12's picture

Will the shitstorm never end? This news gets so tiresome.

Wed, 01/07/2015 - 18:47 | 5634826 OV61FVF
OV61FVF's picture

Just another reason I don't vote anymore.

https://www.youtube.com/watch?v=qxsQ7jJJcEA

Wed, 01/07/2015 - 19:25 | 5634949 capltd
capltd's picture

It would be a better statment of dissent to boycott the Dem and GOP candidates rather than boycott the election itself.  Vote 3rd Party.

Wed, 01/07/2015 - 18:49 | 5634828 CharliePrince
CharliePrince's picture

bring in the clowns --crooks

Wed, 01/07/2015 - 18:52 | 5634838 Seasmoke
Seasmoke's picture

Community organizer. Community banker. Fuck the community. 

Wed, 01/07/2015 - 19:17 | 5634909 Sub MOA
Sub MOA's picture

Another criminal suprise ...yawwwnnn

Wed, 01/07/2015 - 19:23 | 5634925 capltd
capltd's picture

We get what we deserve.  The bar has been set so low by the easily divided muppets happily labelling themselves "liberals" or "conservatives" that criminal conduct is not a disqualification for public office anymore.  They only want to hold the other guys to a high standard while allowing criminals to run "their" party.  

Wed, 01/07/2015 - 19:23 | 5634927 Karaio
Karaio's picture

Well, someone needs to talk.

In the Public Service in Brazil and I believe also in many places there are people who makes a Contest, a very difficult test to become civil servant where there is stable wages, decent pensions and consistent health service.

Shit is politics!

Each time you enter an unfortunate elected he wants to put his appointees in key positions that pay more!

They all come with new ideas, new ways of acting and, ultimately, what they want is to fuck the good ideas of the previous administration.

Working in the Public Service for over 25 years, I am tired of so much shit and waste, it is an affront to the taxpayer!

: - /

Wed, 01/07/2015 - 19:46 | 5635016 silentsock
silentsock's picture

This bastard probably hasn't done so much as run a lemonaid stand.

Just another achedemic. He probably had a cup of coffee at a "community bank" to give him some 'street cred'.

Wed, 01/07/2015 - 19:52 | 5635039 Al Huxley
Al Huxley's picture

So I take it the problem is that he's sloppy about his corruption.

Wed, 01/07/2015 - 19:55 | 5635052 Fuku Ben
Fuku Ben's picture

After reading the udder bullshit above, especially this pathetic attempt at instilling confidence "has the proven experience, judgment and deep knowledge of the financial system", here's an invaluable lesson I learned that may help those of you that read my posts. It may especially be useful for the younger, possibly unemployed, pyramid rising stalwarts. In days gone by me I have shat upon many a criminal corporate enterprise by providing them a copy of my cookie cutter version of a resume in search of gainful employment

As far as sales and marketing goes it eventually became a pure work of art. A masterpiece. As my earliest mentor, who was had a perverse affection for young barely legal girls, used to preach to me ABC. I recall saying Always Be Closing, right? He said Wrong! Always Brag Constantly and never forget that. Self-marketing is the key to your success. So eat, sleep and breath wonderful thoughts about yourself and then project them out around you. And sure enough that dirty old f8ck, whose wife reminded me of a Stepford Wife, was spot on about it. The ZH equivalent for just 1 picture of yourself would be the image of you with rainbows shooting out of every orifice

For example, effectively utilizing my mentor's guidance landed me offers that even surprised me at times. Once, early on before I had street cred, I was meeting a prospective client and they asked for my resume. It had been fine tuned and filled to the brim with ABC's to make some Human Resource twat's pussy wet. After a very brief introduction I handed them a copy. They read it and asked for my contract and signed it. So, Hi nice to meet you. Deal closed. You can't close a deal with any less words and better outcome than maybe in a bar with some Rohypnol or a movie like Alec Baldwin selling you something in Glengarry Glenross

So take this descriptive sentence "has the proven experience, judgment and deep knowledge of the financial system" and word it full of non-specific verbiage, catch phrases and current marketplace buzz words until it makes you feel nauseous reading your own history. Include as few hard and fast facts as possible where you could actually ever be even accused of lying or misrepresenting your past accomplishments. But by all means include some actual detailed specifics that you can prove or your reference will verify. An accomplishment is specific. An experience is personal. Nobody can tell you that you didn't have that experience as long as you believe. They'd be calling you a liar. And they'll never do this and open themselves up to any legal liability

The quotation above it a good example of something that sounds great but says and means 0. So if you can master taking this to a far greater level than this government endorsement of a globalist stooge believe me when I tell you that you will create your own opportunities for success. Whether you actually end up succeeding after receiving opportunities is then solely up to you and your capabilities. So don't shoot for the moon if you don't have a rocket ship or aren't part of the United States Space Fleet. You find yourself like Quisp and stuck somewhere between Saturn and Alpha Centauri

https://www.youtube.com/watch?v=dlUcIg3ccdc

Wed, 01/07/2015 - 21:32 | 5635312 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Confidence sells, but overconfidence indicates something is wrong with the picture. I agree with your outlined impression management up to the point of giving a true picture, but when it comes to outright bullshit

to close a deal I, myself, would not go that far because I am not a good liar. Most salespersons are suckers for a good sales pitch because most salespersons are gullible. Getting anything these days is a sales job and if one does not believe in the product the client will notice.

Wed, 01/07/2015 - 20:19 | 5635132 world_debt_slave
world_debt_slave's picture

imo, also a minter from Hawaii, bring forward Bernard von NatHaus

 

Here is a thought experiment concerning two men who have issued money. One issued gold and silver coins that will today bring more in dollars than he charged for them. The other issued paper notes that are today worth but a fraction the gold or silver they were worth at the time they were issued. One man is facing the possibility of years in prison after a federal jury found his issuing of money to have been a crime. The other man is walking around free and being treated by the authorities with great deference.

 

 

http://www.nysun.com/editorials/a-unique-form-of-terrorism/87269/

Wed, 01/07/2015 - 21:13 | 5635262 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Does one have to be American to be appointed as FED Governor? Under NAFTA could a Canadian ever get appointed to be a FED Governor?

 

I would like to apply to be the next worst FED Chairman the United States of America has ever witnessed. Where do I apply to be appointed? How is it that Larry Summers did not get the gig? Does anyone know the particulars on that slip up in the coronation? Does the establisment want a black man at the helm and a woman running the FED so that all the balding middle aged American white guys can say 'see I told you so' when they both fail and America implodes on QE Infinty? As opposed to the present appointment I am trustworthy and I promise to be the worst FED Chairman ever. So, how about it, America?

Wed, 01/07/2015 - 23:08 | 5635600 kchrisc
kchrisc's picture

Birds of thievery fraud together.

The banksters need to repay us.

Wed, 01/07/2015 - 23:46 | 5635721 medium giraffe
medium giraffe's picture

Barry Bongo doesn't give a fuck what you think.

Fore!

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