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Hank Paulson Tipped Off The Goldman-Led "Plunge Protection Team" About Fannie Bankruptcy 7 Weeks In Advance

Tyler Durden's picture




 

Today, BusinessWeek's Michael Serrill and Jonathan Neumann have released a blockbuster report based on a FOIA response by the Treasury, which proves that in America rules are only for little people, that this country has been a banana republic for years, that Animal Farm was spot on, and gives excruciating detail of how Hank Paulson tipped off a select group of Goldman diaspora hedge fund managers about the eventual failure of Fannie and Freddie 7 weeks ahead of this information becoming public knowledge. The report basically is a summary of a meeting that took place at the offices of Eton Mindich's Eton Park headquarters on July 21, 2008, 7 days after his famous '“If you have a bazooka, and people know you have it, you're not likely to take it out," speech and 7 weeks before both GSEs effectively filed for bankruptcy and were put into conservatorship. Now if it only ended there it would have been fine - a case of potential criminal collusion between the government (although nothing specific against Paulson as he didn't actually trade: he just made sure his former Goldman colleagues made money), and the 0.00001% in the face of a few multi-billionaires who most certainly did trade on material non-public information sourced by Hank. Where it however gets worse is when one considers the actual role of one Eric Mindich in the hierarchy of the Asset Managers' committee of the President's Working Group on Capital Markets, better known of course as the PPT: a topic we discussed first back in September 2009 when we asked "What Is Goldman Alum Eric Mindich's Role As Chair Of The Asset Managers' Committee Of The President's Working Group?" Back then we did not get an answer. Luckily, courtesy of a few answered FOIA requests, some real investigative journalism, and not reporting for the sake of brown-nosing just so one can get soundbites for their next name dropping "blockbuster" and straight to HBO movie, we are starting to get the full picture of just how high in US government the Goldman Sachs controlled "crony capitalist" adminsitration truly runs.

Before we get into the details of Mr Mindich's curious relationship with the government, here is the gist of the BusinessWeek piece, which as noted focuses on Paulson who "said he had erred by not punishing Bear Stearns shareholders more severely. The secretary, then 62, went on to describe a possible scenario for placing Fannie and Freddie into “conservatorship” -- a government seizure designed to allow the firms to continue operations despite heavy losses in the mortgage markets."

The gathering comprised some of Wall Street's most storied investors. Mindich, a former chief strategy officer of New York- based Goldman Sachs, started Eton Park in 2004 with $3.5 billion, at the time one of the biggest hedge-fund launches ever. [Dinakar] Singh, a former head of Goldman's proprietary-trading desk, also began his fund in 2004, in partnership with private- equity firm Texas Pacific Group Ltd. Lone Pine's [Stephen] Mandel worked as a retail analyst at Goldman before joining Julian Robertson's Tiger Management LLC, one of the most successful hedge funds of the 1980s and 1990s. He started his own firm in 1997. [Daniel] Och was co-head of U.S. equity trading at Goldman before founding Och-Ziff in 1994. The publicly listed firm managed $28.9 billion in November. One other Goldman Sachs alumnus was at the meeting: Frank Brosens, founder and principal of Taconic Capital Advisors LP, who worked at Goldman as an arbitrageur and who was a protege of Robert Rubin, who went on to become Treasury secretary.

In other words the point of the meeting was nothing short of the former Goldman CEO telling all his former Goldman colleagues just what he was planning on doing in his capacity as Treasury Secretary.

Others also benefited:

Non-Goldman Sachs alumni who attended included short seller James Chanos of Kynikos Associates Ltd., who helped uncover the Enron Corp. accounting fraud; GSO Capital Partners LP co-founder Bennett Goodman, who sold his firm to Blackstone Group LP in early 2008; Roger Altman, chairman and founder of New York investment bank Evercore Partners Inc.; and Steven Rattner, a co-founder of private-equity firm Quadrangle Group LLC, who went on to serve as head of the U.S. government's Automotive Task Force. Another person in attendance: Michele Davis, then-assistant secretary for public affairs at the Treasury Department, who now represents Paulson as a managing partner at public relations firm Brunswick Group Inc. In an e-mail response to Bloomberg Markets, she referred all questions to Paulson's book on the financial crisis, “On the Brink” (Business Plus, 2010), which makes no mention of the Eton Park meeting.

No mention? What a shocker. Perhaps it may have to do with this:

The fund manager who described the meeting left after coffee and called his lawyer. The attorney's quick conclusion: Paulson's talk was material nonpublic information, and his client should immediately stop trading the shares of Washington- based Fannie and McLean, Virginia-based Freddie.

 

The manager who described the Eton Park meeting says he also discussed it with an investigator from the FCIC. The discussion was confirmed by a former FCIC employee.

Of course, it only means that one would not have to cover shorts on "existing positions." The market's shift from a NYSE to OTC Pink Sheets listed stock would do it for them.

That manager says he ended up profiting from his Fannie Mae and Freddie Mac positions because he was already short the stocks. On his lawyer's advice, he stopped covering his short positions and rode Fannie and Freddie shares all the way to the bottom.

Naturally, the one defense of this criminal disclosure comes from a former Fed president:

“It seems to me, you've got to cut the guy some slack, even if he tipped his hand,” says William Poole, a former president of the Federal Reserve Bank of St. Louis. “How do you prepare the market for the fact that policy has changed without triggering the very crisis that you're trying to avoid? What is he supposed to say without misleading these people?”

So going back to Eric Mindich. Why is he so special? Presenting Exhibit A, the members of the Asset Managers' Committee of the President's Working Group on Capital Markets, aka the PPT:

Just what is this curious committee consisting of all key hedge fund managers?

The Asset Managers’ Committee and the Investors’ Committee are private sector committees established by the President’s Working Group on Financial Markets (“PWG”). The first task of the Committees was to develop and publicly release best practices so that market participants may enhance investor protection and systemic risk safeguards consistent with PWG principles and guidelines. The final reports are available through the homepage of the respective Committee.

In other words, these are the hegde funders who comprise the Plunge Protection Team.

But this will be nothing new to our readers. Here we refer to our article from back in September 2009:

 

On September 25, 2007, the President's Working Group on Financial Markets, better known as the Plunge Protection Team, announced the formation of two private sector committees, one comprising of Asset Managers and the other, of Investors. It is the first one that is more interesting, as the committee is chaired by one Eric Mindich, best known for his Goldman Sachs wunderkind status, who at 27, was the youngest Goldmanite ever to be promoted to partner. In 2004, Eric split off from Goldman, nonetheless maintaining a favorable relationship with the mothership through its "Fund of Funds" division (we jest), and its various Prime Brokerage client platforms, by starting Eton Park, which with its starting capital of $3 billion, is still likely a record of highest AUM at a fund's inception.

So what was the justification for the creation of this specific committee. From its Mission Statement:

PRESIDENT’S WORKING GROUP ON FINANCIAL MARKETS

ASSET MANAGERS’ COMMITTEE

 

Mission Statement

 

The Asset Managers’ Committee is comprised of representatives from a broad array of asset managers. Its purpose is to facilitate an exchange of information between the alternative asset management community and the agencies comprising the President’s Working Group on Financial Markets (“PWG”). It will be a standing committee, and its members serve at the behest of the committee’s chairperson for three-year terms. Members may be reappointed for additional terms. It is expected that the committee will develop best practice guidelines, as described below, and also subsequently review and reassess, and if necessary revise, those guidelines.

 

The first task of the committee is to develop detailed guidelines that would define “bestpractices” for the alternative asset management industry, including practices regarding information, valuation, and risk management systems. They would foster efforts to enhance market discipline, mitigate systemic risk, augment regulatory safeguards regarding investor protection, and complement regulatory efforts to enhance market integrity. These guidelines would review and build on existing industry work and the principles and guidelines released in February 2007 by the PWG, particularly Principle 9, where possible. The initial focus will be on practices for hedge fund managers.

Yet less than a year later, the economy and capital markets collapsed, forcing Hank Paulson to launch an  unprecedented sequence of events to prevent the full meltdown of the Western World. Indeed, the same Hank Paulson who one year prior to Lehman's collapse had this to say regarding the Asset Managers' committee:

"These groups are drawn from among the industry's finest in their respective areas," said Treasury Secretary and PWG Chairman  Henry M. Paulson, Jr. "The market will benefit if experienced participants develop and implement best practices."

It is safe to say that whatever the committee's true mission was, its stated one was an unmitigated failure. For reference purposes, the full committee consists of the following:

  • Eric Mindich, Chair, Eton Park Capital Management
  • Anne Casscells. AETOS Capital, LLC
  • James S. Chanos, Kynikos Associates LP
  • Anne Dinning, D. E. Shaw & Co., L.P.
  • Jonathon S. Jacobson, Highfields Capital Management
  • Marc Lasry,Avenue Capital Group
  • Edward A. Mulé, Silver Point Capital
  • Daniel S. Och, Och-Ziff Capital Management
  • Daniel H. Stern, Reservoir Capital Group
  • William Von Mueffling, Cantillon Capital
  • Michael Vranos, Ellington Management Group LLC

Pardon our hypocrisy, but virtually all of these funds (with the likely exception of Kynikos) would have gotten destroyed had Bernanke, the Chairman of the PWG and the President, decided not to intervene. Furthermore, as is well know, the President's Working Group on Financial Markets has long been not only the front for the elusive Plunge Protection Team, but is an organization this is so wrapped in secrecy that not even minutes of its meetings are kept as John Crudele of the NY Post found out post his US Treasury FOIA submission. Yet the Asset Managers' Committee seems to be in that gray area where it is not totally consumed by the PWG, and thus it is possible that a record of its actions may actually not disappear into the void once any market critical decision is made.


We concluded our article from over two years ago as follows:

Zero Hedge is submitting a FOIA request to the US Treasury to disclose any and all information, records, emails, telephone conversations, with and amongst members of the committee and specifically focusing on former Goldman Sachs employee and Chair of the Asset Managers' Committee Eric Mindich, at and around the time of the Lehman collapse. We expect nothing but heavily redacted pages at best. Yet with recent scrutiny of latent Goldman interests in virtually every segment of the executive branch, Zero Hedge does find it oddly convenient, that in those dark (for Goldman Sachs) days, the two key people making capital markets related decisions were yet another two Goldman Sachs alumni: Hank Paulson and Eric Mindich. And we believe in the spirit of fake transparency so heavily endorsed by the President, it is worth at least attempting to get some additional information on the deliberations by the proxy entities that truly run this country's economy and capital markets.

We are happy that Bloomberg was more successful in getting a FOIA response than Zero Hedge. We urge Messrs Serill and Neumann to enjoin our request for data on what Paulson may have leaked to his Goldman buddies in advance of the Lehman collapse. Because maybe, just maybe, if the Goldman-run Plunge Protection Team let Lehman fail, it was under direct instructions from Hank Paulson... just as he tipped Mindich et al to the GSEs failure. And all those rumors about a directed run on the bank (whose failure benefited none other more than Goldman Sachs) coordinated by none other than the man in charge of it all, will suddenly come true.

Because we have a sinking feeling we will have been proven absolutely spot on in our "paranoid conspiracy theorism" all over again...

 

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Tue, 11/29/2011 - 11:19 | 1925400 TruthInSunshine
TruthInSunshine's picture

 

 

Don Corleone <3 Hank Paulson & wonders how he does it.

Hank Paulson heard of this admiration, and told the Don that "Moe Green was a great man."

#HankPaulsonIsUntouchableBitchez

Tue, 11/29/2011 - 11:20 | 1925422 SGS
SGS's picture

#occupyhank    ?

Tue, 11/29/2011 - 11:23 | 1925459 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Just hang him and be done with it

Tue, 11/29/2011 - 11:25 | 1925468 rajat_bhatia
rajat_bhatia's picture

I was wondering why Tyler didnt pounce on this report earlier. It enthralls your audience when we hear Goldman's molestation tales

Tue, 11/29/2011 - 11:35 | 1925542 Smithovsky
Smithovsky's picture

Makes me sick.

Tue, 11/29/2011 - 11:41 | 1925568 Harlequin001
Harlequin001's picture

Well I think you should have given him immunity from prosecution, in line with his request...

It's the only way he could have done a proper job...

and so rests the case for the defence M'Lord...

Tue, 11/29/2011 - 11:53 | 1925647 BaBaBouy
BaBaBouy's picture

The only missing piece of the Puzzle is ...

 

How many Trillions of OTC Paper have they spent controlling (Down) the Gold Price?

Is it 1, 2 or 5 Trillion ???

 

We'll find out soon enough.

Tue, 11/29/2011 - 12:04 | 1925719 Oh regional Indian
Oh regional Indian's picture

Baba, the longer supression has been in SIlver.

Don't forget Silver. It's in the veins of this golden mess. ;-)

ORI

The Plan Updated

Tue, 11/29/2011 - 12:08 | 1925738 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Silver

Yes she who has been blocked in the cave

We who have never forgotten

Have found her, and will free her

Tue, 11/29/2011 - 12:45 | 1925887 strannick
strannick's picture

Hank Paulson, scummy banker, corrupt politician

Tue, 11/29/2011 - 12:55 | 1925933 BaBaBouy
BaBaBouy's picture

Yes of course Silver also Maniped, poor mans Gold, and always goes along with Gold.

 

BY THE WAY ...

60 Mins reported a while back, Paulson is an avid  "Snake Collector".

 

Tue, 11/29/2011 - 13:05 | 1925992 Popo
Popo's picture

In the immortal words of NEO:

 

 

"WE NEED GUNS.   LOTS OF GUNS."

Tue, 11/29/2011 - 13:07 | 1926004 Fukushima Sam
Fukushima Sam's picture

I love the smell of fried squid in the morning.

Tue, 11/29/2011 - 13:56 | 1926243 Troll Magnet
Troll Magnet's picture

fuck all y'all.  i wanna be in the next meeting!  how many people do i need to rob in order to join the club?

Tue, 11/29/2011 - 13:58 | 1926249 redpill
redpill's picture

"It's a big fuckin' club, and you ain't in it."

 

--George Carlin

Tue, 11/29/2011 - 14:07 | 1926299 Troll Magnet
Troll Magnet's picture

george carlin, he was the best.  we should really require all americans to watch and listen to his monologues.  seriously.  

Tue, 11/29/2011 - 12:14 | 1925761 nope-1004
nope-1004's picture

Buying silver is a 100% vote against the banking cartel and their ways.

Which is why I bought LOTS.  Fuck these crooks.  They'll all end up pissing on each other as the ship sinks anyway, and I want to be as far away as possible.

 

Tue, 11/29/2011 - 12:54 | 1925923 JPM Hater001
JPM Hater001's picture

Why is everyone hating on Hank.  I mean reall, if you think about it if the big one had come in 2008 I would have been totally taken.  Now I am much more prepared.

Tue, 11/29/2011 - 13:36 | 1926154 12ToothAssassin
12ToothAssassin's picture

True, it was rather thoughful of Mr Hanky to give us a warning shot. I stay warm at night knowing he always acts in my best interest.

Tue, 11/29/2011 - 13:20 | 1926080 Amish Hacker
Amish Hacker's picture

Immunity from prosecution was foremost on Paulson's mind. Remember the wording of the Paulson Plan:

Sec. 8. Review.

Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.

That's the kind of CYA language someone would use if he was sure that what he was about to do was illegal.

In a perfect world (and we're getting there), nothing Goldman does would ever be reviewable by anyone.

http://www.nytimes.com/2008/09/21/business/21draftcnd.html

Tue, 11/29/2011 - 18:05 | 1927650 max2205
max2205's picture

So this is how it goes. Tell the world one thing and tell insiders the truth. Wait a bit then tell the world what is really gonna happen.

Rinse and repeat till insiders kill those who don't know. What a fucking joke this country is. Fuck 'em!!!

<>^^#~~<>€£££*%#~~<€€*##~||~<>€^^*£!>,|}#>^££¥+¥£><||]]!!!!!!!

Tue, 11/29/2011 - 13:02 | 1925977 Voodoo Economics
Voodoo Economics's picture

I was the first one he called, huh huh! You outsider peons just wish you were in the GS family where we intend to keep it.

 

Tue, 11/29/2011 - 13:54 | 1926149 Harlequin001
Harlequin001's picture

Nope, I've got gold old stick. I couldn't give a shit...

Tue, 11/29/2011 - 13:04 | 1925978 Voodoo Economics
Voodoo Economics's picture

Give us a few more months and we'll have this FOIA issue taken care of so you can't mess with the family no more.

 

Tue, 11/29/2011 - 13:35 | 1926155 Harlequin001
Harlequin001's picture

that's ok, I already have gold stashed overseas in a foreign vault.

Let me know when you're done, so I can call someone who's bothered...

bullion bugs rule KO...

Tue, 11/29/2011 - 13:22 | 1926088 ltsgt1
ltsgt1's picture

Makes me sick too and I'm losing faith. It's becoming increasing clear that boiler room operations are illegal only for the ones with no political collection and mafiaso types. Mainstream financial media is assisting such boiler room goons with unconfirmed rumors, moving markets in a way that should bring about serious scrutiny.

Tue, 11/29/2011 - 13:33 | 1926147 NEOSERF
NEOSERF's picture

I agree, the point of the stock market for most folks was to put your hard earned money into something that could reliably (+11% every year) help you in retirement.  Not that it was different in the past but it has gotten so far away from something that reflects reality vs. the shadows that it is a HUGE risk to be outside the circle.  0.1% yields on savings suck so gold is really the only option but that like all the other commodities is manipulated badly as well...

Tue, 11/29/2011 - 12:42 | 1925877 LongBalls
LongBalls's picture

If you play in these markets you MUST know that the deck is stacked against you. Play if you must, but at your own risk.

Or... buy gold and silver.

Tue, 11/29/2011 - 11:39 | 1925567 Jay Gould Esq.
Jay Gould Esq.'s picture

I was unaware that Chanos was PPT. Indeed, that clarifies the perspective regarding his unique and uncanny shorting abilities.

"I don't throw darts at a board. I bet on sure things. Read Sun-tzu, The Art of War. Every battle is won before it is ever fought."

- "Gordon Gekko"

Tue, 11/29/2011 - 11:43 | 1925585 Harlequin001
Harlequin001's picture

Tell that to the Brits, They've managed to pull some stunning defeats from certain victories, and that takes real skill...

Tue, 11/29/2011 - 14:46 | 1926541 moondog
moondog's picture

and a certain degree of luck...just ask the Spanish

Tue, 11/29/2011 - 13:14 | 1925851 Don Birnam
Don Birnam's picture

Re: PPT

Considering this perspective, "abilities." Lest we forget, Mr. Chanos is also a CNBC "regular" -- a common denominator regarding the elite, "A-Team" cadre.

"I love it when a plan comes together !"

-- Col. Hannibal Smith ( Ret. )

Tue, 11/29/2011 - 11:50 | 1925636 Duuude
Duuude's picture

 

Geithner too

 

As for our current Treasury Secretary?  Well in his last role as head of the most powerful regional bank - he helped grease the skids for the current system.

  • When Treasury Secretary Timothy Geithner was president of the New York Fed beginning in 2003, he worried the Fed wasn't close enough to big investors, (that line is so open to interpretation it's beyond the pale) especially financial firms like hedge funds that operated outside of the regulated banking industry. He set up a new staff position to coordinate private meetings with hedge fund managers and other Wall Street power brokers. (what a gentleman - with kind moves like that I bet the power players would like to see him in say a role as.... Secretary of the Treasury someday)

 

http://www.fundmymutualfund.com/2011/11/2-amazing-stories-in-past-week-o...

Tue, 11/29/2011 - 11:57 | 1925676 dcb
dcb's picture

Hello, why do you think Obama got appointed and I am sure he got appointed on the advice of wall street types.

Tue, 11/29/2011 - 13:24 | 1926103 Sunset chaser
Sunset chaser's picture

Ever wonder why our schools don't have more classes stressing the Constitution?

Ever wonder if any of our politicos or banksters could pass even a simple test on the principles and amendments of the Constitution?

Or why we don't require them to?

Tue, 11/29/2011 - 14:00 | 1926259 Troll Magnet
Troll Magnet's picture

no.  i was educated NOT to wonder.  the constitution?  WTF is that?  can i short it?

Tue, 11/29/2011 - 14:06 | 1926262 hedgeless_horseman
hedgeless_horseman's picture

 

 

Ever wonder why our schools don't have more classes stressing the Constitution?

Robert Heinlein sure did.

Starship Troopers is a political essay as well as a novel. Large portions of the book take place in classrooms, with Rico and other characters engaged in debates with their History and Moral Philosophy teachers, who are often thought to be speaking in Heinlein's voice.

 

http://en.wikipedia.org/wiki/Starship_Troopers#Politics

 

Good reading on this topic as well as on suffrage.

Wed, 11/30/2011 - 08:55 | 1929269 ucsbcanuck
ucsbcanuck's picture

Thanks hedgeless - the minute everyone hears Starship Troopers they think of the ridiculous movie. They don't realise that there are some deep and profound questions in the novel.

Just like Contact - Carl Sagan intended that the novel be deeply philosophical. Cue Hollywood to dumb it down for the sheeple.

Tue, 11/29/2011 - 12:27 | 1925820 Iwanttoknow
Iwanttoknow's picture

Duude,You posted before me.we should never forget him.it was Geithner who sold hank the idea to shaft us,the taxpayers.

Tue, 11/29/2011 - 12:53 | 1925920 mac768
mac768's picture

... and we are the 99.999% who pay with our taxes for the shenanigans once it does not "work"

Tue, 11/29/2011 - 11:32 | 1925521 Arthor Bearing
Arthor Bearing's picture

I'm as conservative as they come, but they shouldn't touch social security or any other entitlements until the government stops giving welfare to mil/billionaire hedge fund managers, bankers and insurers (including the "Obamacare" health insurance corporate welfare). "Save the economy" and get yourself on the cover of fawning magazines by making your friends rich, how noble.

Tue, 11/29/2011 - 11:52 | 1925645 DaveyJones
DaveyJones's picture

they'll touch it even in its private parts until the little guys can afford to buy a lobbyist or borrow a pitchfork

Tue, 11/29/2011 - 12:42 | 1925873 JPM Hater001
JPM Hater001's picture

If you are conservative you should try libertarianism.  Even less to worry about.

Tue, 11/29/2011 - 15:12 | 1926696 Arthor Bearing
Arthor Bearing's picture

I believe in a weak central government unless and until I am in charge of it!

Tue, 11/29/2011 - 13:36 | 1926159 blindfaith
blindfaith's picture

"Entitlements"  oh, you mean the money we have put into Social Security all our lives and we are entitled to draw on when we reach legal age?

Seems to me, as a conservative as well, the ONLY government program that has not been corrupted by Wall Street is Social Security!  But wait, They will after the next election.

Now ...all the welfare given to those you mention has become the entitlement program that the GOP intents to protect, now that the DNC has paved the way.

 

Tue, 11/29/2011 - 15:14 | 1926705 Arthor Bearing
Arthor Bearing's picture

You're right, but that social security fee we were forced to pay has been stolen from the trust and replaced by IOU's, kind of like the suitcase full of cash in Dumb & Dumber. So it was essentially just an extra tax all along, because that money isn't there any more. We've already lost that battle.

Believe me, social security is on its way out just like the entitlements.

Tue, 11/29/2011 - 12:13 | 1925758 Taint Boil
Taint Boil's picture

Well at least he didn’t commit welfare fraud, because that would get you some jail time.

Tue, 11/29/2011 - 12:35 | 1925843 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

"Just hang him and be done with it"

Just make sure the knot is in back of his neck and let him down slowly- it should take 20-30 minutes. A nice touch would be a slightly windy day!

Hang 'em high!

Then go get all the others rinse and repeat...

Tue, 11/29/2011 - 14:54 | 1926595 11b40
11b40's picture

Hang him and Corzine togethger...one rope, double noose.

If anyone wants to actually DO something that may have some small effect, act on this:

Dear Ron,

It's no surprise that polls show our faith in Congress has fallen to near all-time lows. Our elected officials spend too much time rubbing shoulders with lobbyists and catering to the whims of special interests, all while our country is in serious economic trouble.

But they're not just wining and dining with fat cat corporate leaders and their hired guns. A 60 Minutes piece that aired this month (1) showed that members of Congress can use the non-public information that they have access to as part of their jobs to make investments and stock market moves. It's called political insider trading – and it ought to be a crime. Our representatives shouldn't be able to amass personal fortunes by trading on non-public knowledge that could affect the future price of stocks.

The STOCK (Stop Trading On Congressional Knowledge) Act, which has been introduced in both the House and Senate and has bipartisan support, would outlaw insider trading by members of Congress.

Tell your Representatives and Senators that you want to see this bill come up for a vote before they adjourn in December!

So why don't insider trading regulations apply to Congress today? Because under current law, insider trading is defined as the buying or selling of securities or commodities based on non-public information in violation of confidentiality – either to the issuing company or the source of information. Since Congressional officials do not owe a duty of confidentiality to these companies, they can't be held liable for insider trading. But they do owe a duty to us, their constituents.

It's not hard to imagine a situation where a member of Congress could know whether a piece of legislation, or even an amendment, will pass or fail -- and how that action could impact a particular company or even an entire industry. The temptation to use that information for personal gain could be tremendous.

That's why the STOCK Act (H.R.1148 / S.1871) is so crucial. It would make clear that Members of Congress -- and their staffers -- could not use non-public information gained on the job to make investments or trades for their own personal benefit.

The bill is scheduled for a hearing in the Senate Governmental Affairs Committee this Thursday.(2) That's a good first step, but we can't let it be the last step.

Tell Congress that the STOCK Act must come up for a vote before they adjourn for 2011.

Sincerely,

Bob Edgar
and the rest of the team at Common Cause

(1) Watch the 60 Minutes report.
(2) The hearing on Thursday, December 1 at 2:30pm will be live streamed. Mark your calendar with this link to watch.

Tue, 11/29/2011 - 13:44 | 1926186 blindfaith
blindfaith's picture

and who will do it when millions and millions are sent to 'law enforcement' benefit funds just before they pull out the Mace?  Laws broken...what laws, laws are for little people.

They are doing God's work, remember?  The 'meek' will inherit and other convienient slogans for the masses.

Tue, 11/29/2011 - 13:52 | 1926225 midtowng
midtowng's picture

At what point do the sheeple figure out that there are no laws for the wealthy and powerful? And that the markets are rigged against them, so they should sell their 401k's?

Tue, 11/29/2011 - 14:43 | 1926518 deepsouthdoug
deepsouthdoug's picture

Hang em all, hang em high!

Tue, 11/29/2011 - 20:34 | 1928085 mkkby
mkkby's picture

I'll never vote for the democratic or republican party again.  Only the rope party.

Tue, 11/29/2011 - 11:58 | 1925680 smlbizman
smlbizman's picture

rand paul on cspan2...

Tue, 11/29/2011 - 13:18 | 1926063 Abitdodgie
Abitdodgie's picture

Why do OWS use non violent methods in a violent police state ?

Tue, 11/29/2011 - 12:09 | 1925745 Turd Ferguson
Turd Ferguson's picture

The collusion and cronyism is nauseating.

I'm getting closer and closer to becoming an "occupier". If they'd just drop the whiny, neo-marxist shit, I think I'd be there.

Tue, 11/29/2011 - 12:21 | 1925796 karzai_luver
karzai_luver's picture

Why do you begrudge these job creators their due and just rewards?

 

they drive the economy(stupid) and look what they get in return.

 

Will serve you and the other godless commie scum when they take their ball and go home leaving you and the other rabble out in the streets with those jobless dirty longhair scum.

 

 

Tue, 11/29/2011 - 15:05 | 1926664 11b40
11b40's picture

Is this supposed to be sarcasism, or is it simple stupidity?

Who are these job creators, and where are the jobs?  I was once a "job creator" myself....and created good, high-paying American jobs.

Or, perhaps you live in China or India, because that is where the jobs I once created were destroyed. 

Thjis "job creator" buzz word makes the hairt stand up on the back of my neck.  As soon as I hear it, I know I am dealing with a slogan spouting nitwit, or a politician.  Oops!  Pardon the redundancy.  It is kind of the same reation as when I hear someone say "trust me".  Then, I immediately reach to make sure my wallet is protected.

Tue, 11/29/2011 - 12:22 | 1925802 grey7beard
grey7beard's picture

>> . If they'd just drop the whiny, neo-marxist shit, I think I'd be there.

And what whiney neo-marxist shit would that be?

Tue, 11/29/2011 - 12:50 | 1925906 Turd Ferguson
Turd Ferguson's picture

I don't know. You decide. There seem to be several here that fit the category: 

Source: http://www.huffingtonpost.com/ali-hayat/occupy-wall-street_b_1089079.htm...



VIII. Miscellaneous policies related to political economy

  •  
    •  


      • Jobs against outsourcing, make outsourcing illegal, make outsourcing costly, jobs staying in the US.


      • More equality / More equal distribution of wealth


      • End capitalism / Get rid of capitalism / Abolish capitalism,


      • Reinstate the Glass-Stegall Act / Re-regulate the financial system / Re-regulate the banking sector


      • Forgive loans and debts / Debt relief for individuals


      • Keynesian spending / FDR style New Deal


      • Invest heavily in public works / Public works / Build infrastructure


      • Employee's free choice act

Tue, 11/29/2011 - 12:57 | 1925944 MillionDollarBonus_
MillionDollarBonus_'s picture

But they are RIGHT. These kids are smart. They are part of the new trendy generation and they are SICK AND TIRED of up-tight bigoted rednecks talking about 'freedom' and 'capitalism'. These are outdated concepts, and it is time for a more compassionate system, where resources are allocated by smart, vigilant regulators, and caring compassionate politicians. We can trust them to use their power for good only because we VOTED FOR THEM. It's just common sense.

#OccupyCapitalism OBAMA/BERNANKE 2012!!!

Tue, 11/29/2011 - 13:26 | 1926115 blindfaith
blindfaith's picture

hold the phone a minute here....what planet are we 'talking' about here.  Can't be Earth, no way.

Tue, 11/29/2011 - 15:05 | 1926663 Tsunami Wave
Tsunami Wave's picture

Your sarcasm isn't as good as it used to be Harry

Tue, 11/29/2011 - 12:57 | 1925948 NotApplicable
NotApplicable's picture

I agree with grey. This isn't neo-Marxism, but classical. ;-)

Tue, 11/29/2011 - 13:25 | 1926111 doomandbloom
doomandbloom's picture

You are a trader Turd, you would not understand the #occupy movement .

Traders essentially skim off this corrupt system without producing anything of value. You NEED this system.

The trader mentality is what bought us into this mess.

Tue, 11/29/2011 - 14:39 | 1926495 moondog
moondog's picture

Reinstating the Glass-Stegall Act is a GREAT idea..the rest..not so much. Oh, and actually ENFORCE the existing regulations. These two things would help lessen the damage that crony capitalism causes.

Tue, 11/29/2011 - 14:46 | 1926546 grey7beard
grey7beard's picture

>> I don't know. You decide.

But wait a minute Turd, a few posts ago you knew enough to say it, now you cop out with this garbage?

Honestly, I never took you for anything but an opportunistic snake oil salesman sclepping your schtick and begging for donations.  Now you're schlepping your $1.29 foam hat for $50.  No real problem with that, per say, the world is filled with shit bags.  I just thought I'd give you a fair chance to explain your comment.

You can take your unsubstantianted drive by pot shots at the OWS folks, but they are out doing something, trying to make a difference.  And what are you doing, beside shearing sheep?  You are just another mindless partisan hack and partisan hacks on both sides are the root of the problem.

 

Tue, 11/29/2011 - 16:06 | 1927057 11b40
11b40's picture

+100, greybeard.  thanks.

Tue, 11/29/2011 - 16:28 | 1927145 Turd Ferguson
Turd Ferguson's picture

Wow, you two have me all figured out. Nice job.

Thanks for stopping by my site, though. Every pageview counts!

My non-specific answer was simply my attempt at being polite to you. Now that you've proven yourself to be a first class, deltabravo prick, you can fuck off.

by the way, what part of this do you not seem to grasp?

"End capitalism / Get rid of capitalism / Abolish capitalism"

 

Tue, 11/29/2011 - 16:51 | 1927294 grey7beard
grey7beard's picture

>>  Every pageview counts!

And that is what it's all about for you.  What's in it for Turd.

>> My non-specific answer was simply my attempt at being polite to you.

BS.  Your non-specific aswer was to cover the fact that you really don't know anything about the movement other than what you get from watching Fox News.  You've never bothered to get off your lazy ass and actually explore for yourself.  That list of garbage you posted had nothing to do with OWS.

That in itself isn't particularly bad, except for the fact that you've set yourself up as some kind of guru to the gullable.  You absorb your partisan crap and then turn around and disemenate it on your web site.  Welcome to being part of the problem.

How many people did you cheerlead into buying silver at $45 that really couldn't afford to?  How much really bad investment advice have you spewed out, only because it helps your precious page views?  I've seen you blast Corzine, but in your small time way, you are no different.  It's all about the Turd making a buck.

It really is a shame, because with your knack for self promotion and getting followers to follow you, you could make a difference.  But, like so many you criticize, you've chosen to make it all about yourself.

 

Tue, 11/29/2011 - 18:08 | 1927661 Turd Ferguson
Turd Ferguson's picture

I guess you have no idea how much time, effort and money it takes to run a website.

I do the best I can with the resources I have, simply trying to educate the masses regarding the coming economic apocalypse. 

I guess I like to think I've done more than bitch about the size of my unpaid student loans.

Whatever, dude. I was going to type more but I really couldn't give a shit what you think. I worked my ass off trying to build my site. Whether or not you approve doesn't mean shit to me.

Tue, 11/29/2011 - 12:28 | 1925818 DaveyJones
DaveyJones's picture

 My other choice is whiny neo conjob shit

Tue, 11/29/2011 - 12:55 | 1925936 NotApplicable
NotApplicable's picture

Become the change you seek and co-opt the meme (everybody else is).

Tue, 11/29/2011 - 12:59 | 1925960 lynnybee
lynnybee's picture

I'm getting closer and closer to becoming an "occupier".    Turd, be an OCCUPIER TEACHER !   You are so smart & would be a great teacher !     Be an OCCUPY PROFESSOR, like BILL BLACK did in OCCUPY L.A. / you are the perfect person !

http://www.youtube.com/watch?v=N_AuvLTJNh0

Tue, 11/29/2011 - 13:38 | 1926167 DavidPierre
DavidPierre's picture

 

Ellen Brown

Occupy LA Teach In

http://www.youtube.com/watch?v=-Sp8oREsvW0&feature=related

A state-owned bank can provide that opportunity. North Dakota, the one state that currently has its own bank, is the only state to be in continuous budget surplus since the banking crisis began. North Dakota’s balance sheet is so strong that it recently reduced individual income taxes and property taxes by a combined $400 million and is debating further cuts. It also has the lowest unemployment rate, lowest foreclosure rate and lowest credit card default rate in the country, and it hasn’t had a bank failure in at least the last decade.

Revenues from the Bank of North Dakota (BND) have been a major boost to the state budget. The bank has contributed over $300 million in revenues over the last decade to state coffers, a substantial sum for a state with a population less than one-tenth the size of Los Angeles County. North Dakota is an oil state, but according to a study by the Center for State Innovation, from 2007 to 2009 the BND added nearly as much money to the state’s general fund as oil and gas tax revenues did. Over a 15-year period, according to other data, the BND has contributed more to the state budget than oil taxes have.

North Dakota is a conservative red state, not the sort you would expect to be engaging in government enterprise. But the conservative justification for a state-owned bank is that it preserves state sovereignty, allowing the state to be independent of Wall Street and the Feds. The BND is not a business competitor of the local banks but partners with them, helping with capital and liquidity requirements. It participates in loans, provides guarantees, and acts as a sort of mini-Fed for the state.

Tue, 11/29/2011 - 16:56 | 1927326 WTFx10
WTFx10's picture

But it's FUCKING COLD in North Dakota!

Tue, 11/29/2011 - 13:08 | 1925990 Bananamerican
Bananamerican's picture

"I'm getting closer and closer to becoming an "occupier". If they'd just drop the whiny, neo-marxist shit, I think I'd be there."

Turd, stop being a Dick...You are a FOOL if you buy into the Fox™ hype about "dirty commie hippies" leading the OWS charge.

i've also noticed lately that you seem to have an uncanny sense for leading your Tfmetals report retail sheep to slaughter in PM markets. (& I say this as a holder of PM's)

I'm REALLY beginning to dislike to you, "TURD".

Tue, 11/29/2011 - 13:18 | 1926062 NotApplicable
NotApplicable's picture

You don't have to watch Fox, just go to your own local occupation. Mine's a block away from my work, and I've seen all of two people out of the dozens over the last two months with messages concerning the Fed or the IRS. Over 90% of all other signs are leftist in theme.

BTW, did you hear they're calling for a UN global tax on financial transactions?

Tue, 11/29/2011 - 13:47 | 1926194 Bananamerican
Bananamerican's picture

I'm FOR anything and anyone calling for the dismantling of the global ponzi casino, Left, Right, Up, Down, Frankly, I don't give a shit...I expect propaganda pushback from the powers that be but I DON'T expect it to be regurgitated here on ZH

Tue, 11/29/2011 - 16:36 | 1927221 11b40
11b40's picture

"BTW, did you hear they're calling for a UN global tax on financial transactions?"

Unless you run a HFT service, that should be fantastic news.  Is that somehow a 'leftist' message?  Trying to put the theives, skimmers, & front-loaders out of business may seem radical to some, but not to me.  it seems like common sense....or maybe that's leftist, too.

Tue, 11/29/2011 - 13:52 | 1926214 oddjob
oddjob's picture

Turd you do nobody any favours with your cat scratch charts bemoning false chart signals in a rigged market. You have become a lesser Clive Maund selling hats.

Tue, 11/29/2011 - 12:26 | 1925791 gojam
gojam's picture

@SGS

"#occupyhank  ?"

Demonic possession may actually be his best legal defence.

Tue, 11/29/2011 - 20:37 | 1928092 mkkby
mkkby's picture

CongrAsses should be upset because he didn't let them use their free pass to trade inside info.

Tue, 11/29/2011 - 11:21 | 1925447 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Hank is a stooge

Tue, 11/29/2011 - 11:38 | 1925556 Robot Traders Mom
Robot Traders Mom's picture

and probably a child molester

Tue, 11/29/2011 - 11:44 | 1925590 SHEEPFUKKER
SHEEPFUKKER's picture

Hank the tank

Tue, 11/29/2011 - 12:22 | 1925780 GOSPLAN HERO
GOSPLAN HERO's picture

Did Hank molest your son?

Did not Hank skull-bugger Robotrader more than once?

Tue, 11/29/2011 - 11:32 | 1925517 c'mon man
c&#039;mon man's picture

Obviously another case that needs to be assigned to former FBI Director Louis Freeh.

Tue, 11/29/2011 - 13:00 | 1925972 NotApplicable
NotApplicable's picture

I read that in the Dragnet narrator's voice, complete with the dramatic pause before his name, and the even more dramatic background music following.

Thank God its Freeh Day!

Tue, 11/29/2011 - 11:36 | 1925545 Bicycle Repairman
Bicycle Repairman's picture

None of this can be proven.  And if it can we are not prosecuting.  Oh look!  Martha Stewart!!!!

Tue, 11/29/2011 - 12:38 | 1925858 Seer
Seer's picture

Now that you mention it... seems to have all started with Martha's rise, didn't it?

And there you have it, proof that prosecuting ring leaders doesn't solve the corruption!  So, OBVIOUSLY, going after Paulson isn't going to do it; if we've learned anything it should be that we need to concentrate on going after peons- line up the janitors!

Tue, 11/29/2011 - 13:05 | 1925991 NotApplicable
NotApplicable's picture

If anyone has enough righteous anger about the subjective application of the law to go full vigilante, my guess is she should.

More likely though, she'll STFU and GBTW, trying to protect the empire she has remaining.

Tue, 11/29/2011 - 11:36 | 1925549 TruthInSunshine
TruthInSunshine's picture

Here's an even more FUNDAMENTAL question:

Why is the Secretary of the Treasury, as custodian of taxpayer revenue, EVEN HAVING PRIVATE MEETINGS WITH HEDGE FUND MANAGERS - EVER - LET ALONE AT THAT TIME?

Sorry for the loud voice, but it's still early on the west coast, and I wanted to make sure you weren't nodding off.

Tue, 11/29/2011 - 11:44 | 1925591 Sunset chaser
Sunset chaser's picture

Traitor. Throw him to the lions.

Tue, 11/29/2011 - 11:49 | 1925615 TruthInSunshine
TruthInSunshine's picture

 

 

I forgot to add that aside from the above mentioned critical points - Paulson should be charged with perjury, as a separate count, for testifying before Congress (under sworn oath) that a nationalization of Fannie & Freddie were "impossible," given his one week earlier and contradictory statement to these Hedge Fund Managers (and PERSONAL friends) at a private meeting.

But hey, Hank only spent a direct 800+billion in TARP bailouts, which led to trillions more in carryover actions by Government regulators, the Fed & legislators, right? (/sarc/).

Throw his criminal ass in pound him in the ass prison. This shit is out of control. Conservatives, Liberals, and - everyone - must agree on this point.

Tue, 11/29/2011 - 11:55 | 1925659 DaveyJones
DaveyJones's picture

nice ideals, now all we need is a justice system

Tue, 11/29/2011 - 12:04 | 1925718 stirners_ghost
stirners_ghost's picture

You already have a justice system. It exists for their sake, not yours--you are its object. Once in a while they will throw one of their own to the lions as an investment of political capital, but don't count on it.

Tue, 11/29/2011 - 12:49 | 1925900 Chrome Child
Chrome Child's picture

Pretty much. That was Raj Raj was.

Tue, 11/29/2011 - 13:06 | 1926002 NotApplicable
NotApplicable's picture

They call it a criminal justice system for a reason.

Tue, 11/29/2011 - 12:12 | 1925754 Big Slick
Big Slick's picture

Throw his criminal ass in pound him in the ass prison. This shit is out of control. Conservatives, Liberals, and - everyone - must agree on this point.

Agreed.  99% of the crap being discussed in the MSM and on FB and on Twitter and at work and even at our dinner tables is nothing but rearranging deckchairs on the Titanic.  The Fed/credit/fiat currency crisis needs to be the focus of all discussion!!  Otherwise the next decade for 6 billion people is deep six!!!

Tue, 11/29/2011 - 12:31 | 1925817 The Big Ching-aso
The Big Ching-aso's picture

 

 

He stutters and as such is protected under a hidden clause in the American Diisabilities Act.     Give the spittle-spewing crazy-eyed-speech-impedimented-quasi-handicapped bald bastard a break already.    It's tough enough to get ahead in this cat eat dog world much less when ya got debilitating issues.

 

Tue, 11/29/2011 - 20:40 | 1928099 mkkby
mkkby's picture

Only time he'll ever be pounded in the ass is when he's with his flock of goats.

Tue, 11/29/2011 - 12:39 | 1925862 Seer
Seer's picture

Apparently you need to read a primer on fascism...

Wed, 11/30/2011 - 11:56 | 1930352 Mark701
Mark701's picture

That was the point of the article, he shouldn't be. Worse than that he was selective about which hedge fund manager he met with i.e existing or former Goldman Sachs people.

Wed, 11/30/2011 - 12:03 | 1930388 Mark701
Mark701's picture

That was the point of the article, he shouldn't be. Worse than that he was selective about which hedge fund manager he met only with i.e existing or former Goldman Sachs people.

Tue, 11/29/2011 - 12:07 | 1925733 Big Slick
Big Slick's picture

Hank Paulson heard of this admiration, and told the Don that "Moe Green was a great man."

There isn't even a plaque, or a signpost or a statue of him in that town.

 

Tue, 11/29/2011 - 12:39 | 1925860 lunaticfringe
lunaticfringe's picture

Hank Paulson makes Bernie Madoff look like a fucking piker.

-Lunatic Fringe

Tue, 11/29/2011 - 12:57 | 1925951 bigun
bigun's picture

im sure paulson let lehman fall because it had something to do with benefiting himself and goldman as well

Tue, 11/29/2011 - 13:00 | 1925966 narnia
narnia's picture

Vito Andolini was considerably more ethical than Hank Paulson.

Tue, 11/29/2011 - 13:11 | 1926024 Kaiser Sousa
Kaiser Sousa's picture

until one of these fucking bankers gets got...aint a fucking thing gonna change...

behold....

 

"

About $200 million in customer money that vanished from MF Global is believed to have surfaced at JPMorgan Chase in Britain, according to people briefed on the matter. The discovery could be the most significant breakthrough in a monthlong hunt for the missing funds.

During MF Global's last chaotic days, the brokerage firm overdrew an account at JPMorgan, according to another person who is close to the matter. Some investigators now believe the firm used customer funds to patch at least some of the hole, which would have been a significant breach of federal law.

MF Global transferred the roughly $200 million in the days before the firm filed for bankruptcy, said the people, who requested anonymity because the investigation was incomplete.

Some investigators suspect that the transfer to JPMorgan was the first major misuse of customer money at MF Global, the commodity brokerage powerhouse once run by Jon S. Corzine, the former Democratic governor of New Jersey. Authorities are also looking into whether JPMorgan initially questioned the source of the cash and sought proof from MF Global that it was complying with regulations, one of the people said.

The authorities believe MF Global failed to give JPMorgan full documentation for the cash, the people briefed on the matter said. But the bank's concerns hardly mattered because the money had already been transferred to the account in Britain. It is unclear whether investigators can recover the $200 million.

Representatives for both MF Global and JPMorgan declined to comment. A spokesman for the MF Global trustee, James W. Giddens, declined to comment.

JPMorgan has long been thought to hold some of the money that disappeared from MF Global. As one of MF Global's primary banks, JPMorgan has been a persistent presence in the firm's demise and the messy aftermath. The bank loaned to MF Global until its waning days and has been a vocal and tenacious presence as a creditor during the firm's bankruptcy hearings.

Rumors circulated briefly this month that the missing money had turned up at the bank. The reports were dispelled later in the same day, however, when investigators disclosed those funds had already been accounted for.

Some of the funds MF Global used to shore up its account with JPMorgan may have been legitimately transferred. Firms often keep a cushion of cash to protect customer accounts, which they are allowed to tap with certain restrictions. While the firm ultimately blew through that buffer, it is unclear when that happened and if it intentionally used customer money.

Some industry lawyers liken JPMorgan's role in the MF Global bankruptcy to the bank's position in the messy collapse of Lehman Brothers, albeit on a smaller scale. As the nation's largest bank, JPMorgan is intimately involved in many large bankruptcies. In 2008, as Lehman Brothers was struggling to survive, JPMorgan officials demanded several billion dollars in collateral to meet margin calls. Lehman acquiesced, severely draining its liquidity.

In the case of MF Global, the process is further complicated since the roughly $200 million is believed to be in Britain, which has its own bankruptcy rules.

The transfer came after a relatively routine overdraw of an account MF Global held at the bank, the person close to the matter said. JPMorgan systems picked up the shortfall and sent an automated message to MF Global, said the person, who requested anonymity because the information was private. The firm complied with JPMorgan's request and transferred the money, the person said.

After receiving the money, JPMorgan raised questions about its origins but received few answers. Some investigators suspect that MF Global transferred the customer money to another unit of the firm and mixed it with the company's capital before sending it to JPMorgan.

Such a transaction would have masked that it was customer money. It also would have violated a guiding principle of the futures industry: never mingle customer money with firm money.

The roughly $200 million that is believed to be at JPMorgan is a fraction of the money thought to be missing. The total amount of cash that is unaccounted for is itself the source of much debate.

Shortly after Oct. 31, when the firm filed for Chapter 11, authorities suspected that about $600 million in customer cash was nowhere to be found. Last week, Mr. Giddens's office put the number at $1.2 billion. Some regulators and the CME, the exchange where MF Global did much of its business, have disputed the larger estimate.

The missing money has prompted a wide-ranging federal investigation. The Commodity Futures Trading Commission is leading the search for the cash while the Federal Bureau of Investigation and federal prosecutors in New York and Chicago are examining potential criminal wrongdoing.

Neither the firm nor Mr. Corzine has been accused of wrongdoing. The lengthy search is owed in part to shortcomings in MF Global's recordkeeping .

Representatives for the F.B.I. and the C.F.T.C. declined to comment.

Next month, a pair of Congressional committees will examine MF Global's collapse, which came after investors and customers fled the firm amid worries over its risky wagers on European sovereign debt. The Senate Agriculture Committee will hold the first hearing on Dec. 13, followed by the oversight panel of the House Financial Services Committee on Dec. 15.

For the first time, lawmakers are looking to publicly question Mr. Corzine, who spent five years on Capitol Hill as a Democratic senator from New Jersey. He resigned as head of the firm earlier this month. In addition, they hope to call as a witness MF Global's chief operating officer, Bradley Abelow, who served as Mr. Corzine's chief of staff when he was governor of New Jersey. Mr. Abelow and Mr. Corzine have not responded to the request from lawmakers on the House committee, according to a person with knowledge of the matter who was not allowed to speak publicly. It is unclear if the two men will agree to attend.

The deadline for a response is approaching. Should Mr. Corzine and Mr. Abelow decline, the committee can subpoena the executives."

http://finance.yahoo.com/news/money-found-britain-may-belong-115508178.html

Tue, 11/29/2011 - 20:52 | 1928123 mkkby
mkkby's picture

George Washington and friends fought a violent revolution for much, much less.  Useless sheeple now only get upset over $1 towels.

Tue, 11/29/2011 - 11:17 | 1925403 Mike2756
Mike2756's picture

Wow, and they threw Raj Rajaratnam under the bus.

Tue, 11/29/2011 - 11:40 | 1925570 MrTown3
MrTown3's picture

The masses prefer dark meat for the holidays..

Tue, 11/29/2011 - 11:41 | 1925579 ucsbcanuck
ucsbcanuck's picture

Raj Raj was a foreigner = easy target.

US Treasury Sec - no way.

Little guys get around the rules. Big guys just break them.

Tue, 11/29/2011 - 11:47 | 1925611 MFL8240
MFL8240's picture

Of course they did, he is not part of their TRIBE.

Tue, 11/29/2011 - 12:37 | 1925850 The Big Ching-aso
The Big Ching-aso's picture

 

He could've been.   All he had to do was convert from Vishnu to Baal.

Tue, 11/29/2011 - 12:35 | 1925845 rufusbird
rufusbird's picture

Dues are required to be in the club....like..."What have you done for me lately?"...

Tue, 11/29/2011 - 11:24 | 1925405 Gene Parmesan
Gene Parmesan's picture

Cuffs. Now.

The people won't respect the rule of law for very long once they realize that the government itself doesn't.

Tue, 11/29/2011 - 11:30 | 1925511 GeneMarchbanks
GeneMarchbanks's picture

Right. Notice there is no mention of RICO. So... keep waiting.

Tue, 11/29/2011 - 11:36 | 1925547 Gene Parmesan
Gene Parmesan's picture

I'm not idealistic enough to think that any sort of justice will be served here or in any of the countless other similarly outrageous situations.

The politicians themselves are of course allowed to trade on material inside information, so it's not much of a leap at all for them to be OK with their masters doing the same.

Tue, 11/29/2011 - 11:55 | 1925660 Bwahaha WAGFDSMB
Bwahaha WAGFDSMB's picture

Speaking of insider trading, do the lobyists know just as much about the backroom deals happening in Washington as the politicians do?  And are they just as free to profit from their knowledge?

Tue, 11/29/2011 - 12:03 | 1925692 DaveyJones
DaveyJones's picture

yes.....and yes. And this of course enhanced by rules that allow former politicians to become current lobbyists. Feel better?

Tue, 11/29/2011 - 13:09 | 1926013 NotApplicable
NotApplicable's picture

Yes. But that's because I prefer that wolves look like wolves, not disguised as sheep.

Tue, 11/29/2011 - 12:34 | 1925840 Withdrawn Sanction
Withdrawn Sanction's picture

I'm not idealistic enough to think that any sort of justice will be served..

Indeed.  It makes you wonder though, why did they let this much information loose?  There are more powerful people than that POS Hank Paulson.  Are they hanging him out to dry?  Smells like a setup to me.  

Tue, 11/29/2011 - 12:47 | 1925885 Gene Parmesan
Gene Parmesan's picture

I don't know if they let it loose, or if that one fund manager who called his lawyer and went to the FCIC got pissy that he missed out on the opportunity and went to the press, but the troubling fact remains that they're surprisingly brazen about all of it. Like they know that they're untouchable, or that coming events will make crimes like this nothing more than a footnote in history.

Tue, 11/29/2011 - 11:53 | 1925649 Fish Gone Bad
Fish Gone Bad's picture

I hate to be the fly in the ointment, but Paulson has some kind of Get-out-of-jail-for-free card.  It was talked about a few years ago.  Paulson knew that what he was doing was illegal and wanted immunity from prosecution, and got it.  Some kind of presidential pardon before the fact.

Tue, 11/29/2011 - 13:05 | 1925993 lunaticfringe
lunaticfringe's picture

There are a couple of different types of immunity and bags of shit like Paulson are well aware of them. I believe that.

Tue, 11/29/2011 - 13:12 | 1926031 NotApplicable
NotApplicable's picture

Anything done in name of the Fed or the Treasury always comes with claims of full immunity, which is legally codified if they are also on the board of the BIS (Bernanke & Greenspan, for example).

Tue, 11/29/2011 - 11:45 | 1925598 Bwahaha WAGFDSMB
Bwahaha WAGFDSMB's picture

Patience Gene, the Ministry of Law and Order is hard at work picking out a fall guy in the MF Global embezzlement so we can all have a big media show demonstrating respect for the rule of law.

Tue, 11/29/2011 - 12:45 | 1925889 Iwanttoknow
Iwanttoknow's picture

The janitor did it.

Tue, 11/29/2011 - 12:50 | 1925905 ParkAveFlasher
ParkAveFlasher's picture

Embezzler went 'rogue', news at 11.

Tue, 11/29/2011 - 13:14 | 1926043 Sancho Ponzi
Sancho Ponzi's picture

Yep, and his name is Munir Javeri. Pictures of him on the internet have disappeared, links are dead, and nobody seems to know his whereabouts. I wonder if Soros has him tucked away in some Swiss chalet?

Tue, 11/29/2011 - 13:46 | 1926193 Big Corked Boots
Big Corked Boots's picture

Certified unperson?

Tue, 11/29/2011 - 17:18 | 1927429 11b40
11b40's picture

Here is a pretty good article with more detail.....from Canada.

http://www.canadafreepress.com/index.php/article/41991

 

Tue, 11/29/2011 - 11:48 | 1925627 MFL8240
MFL8240's picture

The goverment does not realize the rule of law and applies the statutes to those they choose.  Holder is a perfect example with the fast and furious lies.

Tue, 11/29/2011 - 11:54 | 1925658 Peterpaul
Peterpaul's picture

If the powers that be continue to blantanly run over the rule of law it will end with most people losing all respect for the law. If that happens, it will be CENTURIES before our culture trusts the law again.

Tue, 11/29/2011 - 16:09 | 1927070 SilverRhino
SilverRhino's picture

If the powers that be continue to blantanly run over the rule of law it will end with most people losing all respect for the law

Too late; we're ALREADY there.  When all you have to rely on is a stranger's moral code (do you honestly expect justice?), start packing heat.  Fuck the law.

Tue, 11/29/2011 - 12:13 | 1925760 DaveyJones
DaveyJones's picture

One government under Goldman with liberty and justice for paulson

Tue, 11/29/2011 - 12:41 | 1925871 Seer
Seer's picture

Rule of law?  Ha!  No, the problem is that there are too many regulations, yeah, that's THE problem!

Tue, 11/29/2011 - 11:18 | 1925410 dcb
dcb's picture

please excuse my language, but the thing that is so fucked up about this is that Paulson may be amune as he was woorking in his capacity as a treasury secretary. But of course it also show more insider trading.

Tue, 11/29/2011 - 11:26 | 1925486 SheepDog-One
SheepDog-One's picture

My rope doesnt know what an immunity clause is.

Tue, 11/29/2011 - 11:20 | 1925427 firstdivision
firstdivision's picture

Old Bernanke had a printer, D-O-L-L-A-R.

And in that printer he had some paper, D-O-L-L-A-R.

With a print-print here, and a print-print there, here a print, there a print, everywhere a print-print.

Then Obama said I need reelected, D-O-L-L-A-R.

He told Bernanke to make it happen, D-O-L-L-A-R.

With a print-print here, and a print-print there, here a print, there a print, everywhere a print-print.

Old Bernanke's banker friends want more money, D-O-L-L-A-R.

They wined and cried they don't have enough, D-O-L-L-A-R.

With a print-print here, and a print-print there, here a print, there a print, everywhere a print-print.

Old Bernanke saw home prices fall, D-O-L-L-A-R.

Deflation scared him stiff, D-O-L-L-A-R.

With a print-print here, and a print-print there, here a print, there a print, everywhere a print-print.

Tue, 11/29/2011 - 12:14 | 1925759 Big Slick
Big Slick's picture

How can anyone 'thumbs down' that?  Its gold. :)

Tue, 11/29/2011 - 11:20 | 1925432 stock trout
stock trout's picture

I'm sure the Attorney General will be all over this...what's his name again?

Tue, 11/29/2011 - 11:25 | 1925477 GMadScientist
GMadScientist's picture

Wait...I know this one!

Ah...I give up...I can't get a hold on it. ;)

Tue, 11/29/2011 - 11:37 | 1925554 Bicycle Repairman
Bicycle Repairman's picture

Inaction Jackson.

Tue, 11/29/2011 - 12:17 | 1925774 DaveyJones
DaveyJones's picture

The Chiquita lawyer is an expert on banana republics

Tue, 11/29/2011 - 12:53 | 1925916 ParkAveFlasher
ParkAveFlasher's picture

+infinity. 

Tue, 11/29/2011 - 11:47 | 1925614 mccoyspace
mccoyspace's picture

I think they cut that position to save money or something. They folded that department into Treasury.

/sarc

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