Multi-Trillion Bank Bailout Leads to Multi-Billion Bank Profit Bloomberg Finds
Back in August when Bloomberg first scoured the depraved depths of the almost-30,000 pages of FOIA-released Fed documentation surrounding the biggest ever bailout in history, the sheer volume of the loans, ultra-low cost of funds, and lying-through-their-teeth nature of the bank CEOs was enough for some vindication of tin-foil-hat-wearing fringe blogs. In this month's Bloomberg Markets magazine, much of this is rehashed but the truly incredible part - though not entirely shocking to us - is the magnitude of the profits that the banks amassed directly as a result of these 'secret' bailouts. Almost a quarter of their entire income was generated during this period from bailout-related sub-market funds. Over $13bn profit was 'appropriated' during the crisis with Citi and BofA among the largest profiteers.
For those with the stomach for what is the highest form of crony capitalism writ large and explained in its clearest and most egregious manner yet, the article also has an interactive chart of the banks' profit-gains direct from the Fed's bailouts during this period. Dean Baker's quote from the article perhaps sums up our perspective at the time and now:
"banks were either in bad shape or taking advantage of the Fed giving them a good deal. The former contradicts their public statements. The latter - getting loans at below-market rates during a financial crisis -- is quite a gift."
Another notable perspective was:
"Banks don’t give lines of credit to corporations for free, why should all these government guarantees and liquidity facilities be for free?"
Perhaps the growing awareness of this secret bailout and huge profiteering by the banks will bring a renewed focus on the words and deeds that spew from the banks and we note that Sentor Kaufman (of the defeated Brown-Kaufman proposal) unequivocally states...
"we’re absolutely, totally, 100 percent not prepared for another financial crisis."
...when they come begging for QEnnn and further direct assistance (claiming M.A.D.) as the European crisis highlights the deleveraging that still faces the global financial system and the balance sheet 'holes' that will need to be filled.
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Reminds me of the San Fran Fed study:
http://www.zerohedge.com/article/shocking-new-taxpayer-funded-study-san-...
I'm shocked. Who could've thought that the obvious could fucking happen?
"100% not prepared..."
Don't be like them.
Breaking News, bitchez:
11-28 1:45: WSJ writes: "Inner Workings of Market Readied for Euro Breakup"
*"Who could have possibly seen this coming?"
Oh, well... who is John Galt anyway?
Truly amazing. Who would have guessed that the world's most self-interested, sociopathic, dishonest businesses would do something self-interested, sociopathic and dishonest?
For our next act: What are the chances that our useless, treasonous, duplicitous and incompetent regulators will do something useless, treasonous, duplicitous and incompetent?
and unregulated?
and unindicted.
Unregulated & not indicted?
John Corzine is special. He had the most savory Thanksgiving Day dinner with the fam, and then took his wife to Tiffany's for an apertif.
In most cases, when 600 million to 1.2 billion goes "missing," the person in charge of the place is - at bare minimum - detained and extensively interrogated.
But I'm sure that Corzine has an air tight alibi as to how he had no idea what was happening at MF Global nor where the client money is. /s
#CorzineBundlesLikeCrazy
Oh come on, it's not like Corzine is a 'rogue trader'.
Now, those guys (all 3 of them) really are the pits - I mean, losing it in a series of poorly monitored and foolhardy trades is surely substantially worse than, um, ahem, stealing it. Surely ?
When $600 goes missing the law will lock up the theif. When $600 million goes missing the theif will lock up the law.
" change you can believe in "
Barry Soetoro. O'bummer. La BOMBA. The Banksters.Own.My.Black.Ass guy taking orders in the Whitehouse.
http://www.usavsus.info/US-BarrySoetoro.htm
,
I think the chance is 100%. Am i right?
Popo: I think you got this thing pegged!
THE ROOT OF OUR SOCIAL, ECONOMIC, MILITARISTIC WOW'S IS AN EVIL, MONETARY SYSTEM. EVERYTHING ELSE IS A SYMPTOM OR AN ACTION THAT SUPPORTS IT. AT THE HEART OF THIS SYSTEM ARE THE CENTRAL BANKS; THE FED, THOSE WHO CONTROL IT AND THEIR DISHONEST, DEBT BASED MONETARY POLICIES. AS SUCH; LAWS, THE CAPTURE OF GOVERNMENT AND THE SUSPENSION OF ACCOUNTING RULES IS FOR THEIR BENEFIT. AN ACCOUNT OF THE PEOPLE HAS NO PLACE IN IT. INDEED, IF THE PEOPLE WERE ITS PRIMARY CONCERN, THE WORLD WOULD BE MORE FREE, LESS VIOLENT AND MORE PROSPEROUS.
THE PRIVATELY HELD FED IS THE TOP REGULATOR OF ITS TBTF OWNERS AND MEMBER BANKS. IT'S CREATION OF MONEY OUT OF THIN AIR; LOANED, AT INTEREST, TO THE SOVEREIGN AND ITS FRACTIONAL RESERVE SYSTEM IS THE MOST INSIDIOUS OF CRIMINAL PONZIS FOR WHICH ALL ITS FAUX REGULATIONS AND FINANCIAL MISALLOCATIONS FOLLOW.
TO FREE OURSELVES, RESTORE FREE MARKET CAPITALISM AND REESTABLISH OUR CONSTITUTIONAL REPUBLIC, WE MUST FIRST ELIMINATE THE MOST PERNICIOUS CORRUPTING FORCE OF ALL.
END THE FED!
See:
Money Power And The Central Bank: Life Is But A MEME
END THE FED: THE FIRST STEP IN RESTORING OUR CONSTITUTIONAL REPUBLIC
”To the wicked, everything serves as pretext.” -Voltaire
Trillions of CDS with nothing to back it: Europe's Voluntary Haircuts?, CDS Market Sham & B of A: Less Than Zero
The Disappearance of Chivalry - George Santayana & Murder By Joystick
Everything Is Fine: Move On - There's Nothing Here For The 99%
MF Global is a fractal in a frying pan.
it is possible to convert to Islam as well. Carried interest is against their God and punishable by death. it doesn't seem to have hurt their civilization in this epoch. to me though what is need is not to "end the Fed" by end the deceit. it is the mauling of the English language that shows "depraved indifference" to me. In short "i don't find this funny." of course i'm always told "don't you get it? THE JOKE'S ON YOU HAHHAHA!" For some reason that doesn't make me laugh. I hope i've given some of you few "in retaliation" as they say.
Don't forget the corporate execs and directors who grant themselves options every year and sell 'em all to destroy shareholder value with the massive dilutions. They're just as sociopathic and corrupt as bankers. Corporate governance anyone? Can we do a bitch thread about that?
The next treasonous act possible comes today when the Senate votes on S1867 which will allow our military to arrest american citizens on U.S. soil without charging them and hold them indefinitely. Nice group of folks looking out for our interests, wouldn't you say?
All you piss boys complaining, do yourself a favor and kick a pinstripes ass. Shut the fuck up and make it personal.
The Bernank loaned 7.7 trillion to all those banks who were claiming that they were just fine...fine...trust them!
They actually borrowed 1.5 trillion in just one day from the U.S. taxpayers, involuntarily extracted, by The Bernank & Gang.
Bring back the guillotines, bitchez.
Trillions in handouts >>> Billions in profits?
Comon Bankers, that's all you could do? A .01% ROB (Return-on-Bailout) must be the worst industry banchmark, Sell signal.
Never forget, Neel Kashkari and Hank Paulson, both previous GS employees engineered the Bailouts under Bush.
By taxpayers bailing out the above U.S. Taxpayers gave Lloyd Blankfein his 100 million dollar bonus.
Had they not bailed out Goldman. Lloyd would not have gotten his fraudulent bonus.
Why does America uphold banker's contracts and void labor's contracts.
Goldman Sachs controls and rules the U.S., the Fed and the World.
There is no such thing as "financial engineering" -- only fraud by another name.
But hey, whatever you want to call wealth redistribution upward (ONLY).
ROT => Return On Theft
The parasites need to get the fuck out of the way.
http://www.youtube.com/watch?v=EjYLRxHWKiQ
What could possibly go wrong.
gold bitchez
PSSSSSSSST. I have a secret. I am going to F you in the A. Pass it on.
Sincerely yours,
Banksters
Sorry to break the news...that ain't no secret.
(Whoever gave me the -1 rating apparently enjoys being F'd in the A.)
It's bankster bots and paid trolls junking most comments...
F them in the A, and wear them as badges of honor.
and i dont believed they chopped heads off right away either......it takes times for the reality of the abuse to set it.......we may be close to that point
Can we please just get busy nailing plywood over the doors of these crooked banks...already? To all you fools with your money in these institutions, thanks for NOT HELPING!
As always, the Greater American Depression will roll on and on until such time as the criminal syndicate of banks in this nation is finally shut down. There will be NO capital formation as a direct result of these banks still being at the helm of the US financial system.
Enjoy your food stamps...
Ahhh...you want to nail plywood over the windows to prevent the banksters from escaping before the ruckus begins.
Clever.
May I suggest iron bars?
+ 2 SNAP cards up
Socialist. Unfair. Unamerican. Anti-Competitve. Crony-Capitalism
American is the new Un-American my friend.
Amen Sheepfukker.
Keep thinking in nationalistic and collective terms--it has served the sheep well so far.
What's Socialist about it? The merger of State and Corporate power is textbook Fascist, not Socialist.
To each [banker] according to his need.
My damn Comerica banker lied to me. Told me straight to my face their bank took nothing in the form of bailouts.
Ignorance is bliss.
The Banksters need to be liquidated...gold and guns bitchez.
/
Eric Sprott update on gold out.
http://goldandsilverlinings.com/?p=1756
KILL...KILL...KILL comes to mind.
http://www.youtube.com/watch?v=msyl5BxL9M8
Ya know for a second I thought fer sure you linked the Rod Steiger scene in Mars Attacks. One of my faves.
http://www.youtube.com/watch?v=3dG7ZFhZzKM
So disgusting. If this is in bloomberg, it has a decent shot to hit the msm. I wonder what excuses they will make for the fed.
Ali Veshi or whatever his name is on CNN will take The Bernank's word as being of integrity, and he'll parrot the words "Bernanke was worried that disclosing how much banks were taking, and identifying the banks taking the trillions, would mark them as targets for mean, bad short sellers."
cnBSc will be even more HopiumUnicornsRainbows from their assholes, claiming The Bernankio made it rain Bernankbux.
cnBSc Breaking News: The Bernank is gonna make it rain.
Fucking Fed. We've got $7 Trillion of taxpayer future taxes sitting around to give to banks loans at .01% interest so that they can turn around and make loans to our governments and businesses at 5%+. Our own money being used against us. God forbid the fucking loan sharks not get their cut.
1. Borrow money from FED at 0%
2. Deposit borrowed money with Fed and reap .25%
3. ????
4 Profit!
Imagine getting paid to borrow money.....
FED says: Oh please borrow money from us ! We will PAY you interest!
These are private companies traded on Wall Street receiving this free money to add to their balance sheets right? So all companies should get some free money too right, and every citizen should get some free money from the Fed too right? That's only fare.
No. The bailouts are for the banks only. If the Fed gave the money to the people then the money would not end up in the banks.
The banks need the taxpayer. The banks are a part of the government now. If they gave the money to the people it would be like paying taxes and getting a check back for all socialist programs and taxes.
My big problems with Social Security is the fact that if I die before I collect I DO NOT GET ANYTHING. Why shouldn't I be able to decide what to do with my money? It appears its not really my work or my money.
You have it backwards, goverment is a tool of the banks.
Close. Banks and governments are so tightly co-mingled these days that their behavior makes most sense if they are studied as a single entity that is privately owned by an obscure collective of thieving sociopaths.
The Fed transfers $1 billion into my bank account (in one of their member banks) that I promise not to access and loans me the money at .025%. The fed then pays me interest to hold the money for them in excess of the original .025% and deposits interest payments into that same account. I promise to remove those funds in excess of the original $1 billion lent and spend the excess funds as I please.
Did I get that strait?
I'm still waiting for the Fed to make that deposit into my bank account
It is only confusing if one thinks that Fed is supposed to represent the public. Quite contrary, if one assumes that the Fed is a privately owned organization that is supposed to provide its shareholders with highest return possible, then its actions make perfect sense.
Depositors in those banks should get an equal share per account on those capitol gains in the form of higher interest rates on savings accounts and or a direct payment of the proceeds directly into their bank account.
The upper management or shareholders shouldn't get a dime of that money.
My appetite for economic calamity porn is insatiable, as you probably already have surmised.
Dare I say I am falling in Love with CNBC World, the European channel, for actually having multiple gusts speak the the truth. For what seems decades I've been watching CNBC, mostly on mute these days, CNBC America looks like a Gorilla Trade Infomercial on mute. I've been waiting years to hear them speak the truth. I almost gave up hope, but thanks to Steve Sedgwick, hope has been restored. Still awaiting for CNBC America to follow suit.
Economic calamity porn on TV just for me. Yeah Baby.
Thanks to the Ron Paul crew, we know how to put this pile of shit called America back together, but better than it was.
I say we give first class airline accommodations to any illegal immigrant who wants to self deport using a government program fund for expenditure requests indiscriminate to illegals but also including.
We should also give them a $500 grant upon arrival to their destination for accommodations to last them a bit.
There, illegal imigration problem solved.
Do I have to think of everything?
Can't wait to here what the State Department and the Congress Critters have to say on this past weekends Pakistan incident.
Blowback Bitches!
I'd love to hear Dr Ron Paul's take of this incident on the floor of The House of Representatives.
I agree I live in North Dakota and those fucking Canadians are everywhere, get them out .Wait, do we ,are we, sorry we are talking about Mexicans
Don't worry Abit, we won't steal your McJobs.
Canadians are rich as fuck on paper, since our real estate ponzi scheme is still bubbling.
Depositors are at the bottom of this food chain being nowhere close to decision-making. They are being taken for a ride in a big game, but they will be thrown out of the cart the moment their value goes down to the extent they become liability to the system (i.e. demanding their fair share in a game that was never supposed to be rigged in their favor). Good thing or bad, but this game about to go belly up thanks to the fact that ponzi reached its highest point possible, i.e. the one that requires ZIRP in perpetuity to avoid collapse as there's no marginal value left in the economy that can be squeezed in favor of the cartel via expanding credit further.
Banks largely stopped lending, but that means no earnings to cover interest to be paid to depositors. And I don't think 0.25% margin goes anywhere, but plugging in black holes in the banks' balance sheets, CEOs salaries are chump change compared to the size of these black holes, deposits as well. Sane saver should stay away from the system that is eating itself from within, there is no safety or gains there left.
I'm sure everyone here has seen this but why not a reminder. Better than any explanation I right now.
http://www.youtube.com/watch?v=yipV_pK6HXw
http://www.youtube.com/watch?v=rH6_i8zuffs
Break out those Christmas bonuses. Rapture has arrived.
And what 'bout Monday's action. Another fucking short-covering rally for the DJIA 600 peepuls.
And why would we expect the banks and their behaviors to change.
The got rewarded, to the tune of billions in bonuses, for almost taking down the WHOLE world.
They learned a key lesson: Take huge risk, get a massive bonus, get bailed out when said risk goes bad, get a huge bonus. Rinse.Lather.Repeat.
300,000 people in the last two years, applied to Goldman for just this reason.
Amercians exceptionalism+crony capitalism=winning.
amercian exceptionalism + crony capitalism = winning
Until all the seed stock is consumed, after which "winning" turns on a dime into massive death and destruction. Coming very soon to a planet near you.
If you loan me $1T of freshly printed FRN's I promise only to abscond with...erm...report as profits...0.1%. I'll do god's work with the rest.
...and I will take said profits offshore so that my firm will have an effective tax rate below what the lowest wage slave pays in social security and Medicare taxes.
The constituion and Socialist Security is like stealing. It is definitely not a Christian Principle. Food Stamps are ok, but then again no company should profit off food if others are getting it for free.
It is not okay that JPM is making a mint administering the food stamps programs and using Indians to do it. The USDA should be handling the ag dept's end and the states should be putting some of their own citizens to work and decreasing the SNAP roll instead of contracting with JPM. Jamie Dimon does not need a bonus for this.
Goldman Sachs & JP Morgan, two of the biggest welfare recipients (not to mention they get to live above the law), have said absolutely no Beluga caviar at the Holiday Party this year.
Osetra & Sevruga only.
On Bankers, Gold and Associated Conspiracy Theories.
I am absolutely getting so fucking tired of one day being called a conspiracy theorist, then being downgraded to extremist, giving way to no way that happened, becoming you gotta be kidding me, becoming well we already knew about that shit, finally terminating in what a crying shame why doesn't somebody do something about it.
And all the while the rape and pillaging by the bankers continues unabated.
Crying shame.
Just like one of my relatives studying at one of the premier agricultural universities in America telling me that in a course, they're reading scientific papers about airplane aerosol disbursement (spraying) of chemicals in the upper atmosphere.
It's what the fringe conspiracy theorists have been calling Chemtrails. Yes, studying them in University. Chemtrails.
I am so fucking sick of this shit.
Just like nobody's trying to suppress the price of gold.
And then the Law of Unintended Consequences Chickens Come Home to Roost when the very same central banks start using gold as collateral against loans to raise money.... and will be hoping to pledge it at the highest possible prices.
Just stop the shit. It's becoming ever so tiring.
Knuckles,
I asked this in another thread. If TPTB are supressing the price of gold, isnt that a good thing for physical holders? Conspiracy or not? Honest question.
Yes and no. For existing holders, it greatly reduces the exchange value of the gold they hold. For anyone looking to buy gold, it gives them a better purchase price. So it depends on your situation and your goals... but no matter what, manipulation is blatantly unethical (and criminal).
Thanks. Kinda like the real estate manipulation in reverse, distorting the market causes misallocation of resources. The saving grace for gold is that eventually they give up and the gold will still be good, it will hold its value. Cant say that about alot of empty miami condos after 10 years. "Those couter tops are so 00's"
I am recomending two shots of Limoncello and a ice cold beer... just do it!
Banking used to be a respected and respectable profession. These fuckers have absolutely no shame and should be behind bars with plenty of time to contemplate that.
Come on now everybody, they were just loans. And ben says nobody lost money....:)
Lost? Come now. No one's claiming losses. I do believe that the point of the post was the size of the profits.
I would love to see a TOTAL EXECUTIVE BONUS layer added to the Bloomberg chart.
This pisses me off.
Grrrrrrrrr.
I just sent an email to The Bernank requesting a couple hundred billion in BernankBux and haven't heard back.
I even promised to pay The Federal Fractional Reserve Alchemists 4/10ths of 1 basis point in interest higher than what Goldman or JP Morgan paid.
Wish me luck (but I won't need it, because The Bernank will see that I'm paying a higher rate for my BernankBuxNINJAloan than the too-big-to-be-denied-the-privilege-of-ass-raping-American-taxpayers).
Tell him you're gonna use the loan to buy...ummm...hire an ex-senator and apply to be a primary dealer. That should get you passed any potential roadblocks.
I plan on buying precious with any Federal Reserve Notes he lends me at 2/10ths of a percent in interest.
Don't tell The Bernank, though; he is quite hostile to history.
But then the predators-that-be offered him a prestigious job... and the rest is history.
8 kleenex to open a doorknob and place a pink napkin on genitals. Got it!
When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes… Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” – Napoleon Bonaparte, Emperor of France, 1815