SEC, DTCC and Goldman Sachs Scandals Require “True Financial Reform,”
Not Obama Administration’s Phony Refunding of ACORN-Clones
Conventional stupidity says "the enemy of my enemy is my friend" and explains how the U.S. got in bed with Stalin during World War II. It's always been stupid to act that way and right now, Barack Obama is banking on at least one Republican to vote for his latest monstrosity Barackbanking a so-called "reform" of the financial industry. Relying on backing from uninformed voters emotionally distraught over the financial collapse, Obama is making another power grab with the usual sinister undertones, this time involving ACORN, which most Americans have assumed just up and disappeared.
Once again Barak Obama and his Marxist administration is using public perception of a weakness in the capitalist system to attempt to put more and greater control of the American economy into federal hands and to advance his communist agenda. Case in point: passing this Barackbanking bill will place another 9% of the economy under federal government control . . . and hidden in the 3,100+ page bill are all sorts of sneaky addendums that would effectively make all the defunded ACORN-clone organizations who recently changed their names instantaneously eligible for funding all over again. As usual an awful lot of evil can be hidden behind the sweet-sounding word “reform” but remember, what’s perceived as wonderful for Barak and his yes-men really SUCKS for America. Be a patriot, Mr. Congressman, vote this piece of crap into the nearest toilet.
However, just as there is a genuine need for REAL reform in health care delivery, etc which will need to be addressed once Obamacare is repealed, there is truly an immense need for TRUE financial reform once Barackbanking fails and the progressive majorities are history after November. Let Rajpuut mince no words, Congress and the General Accounting Office (GAO) need to throw a noose around Goldman Sachs people, the Securities Exchange Commission (SEC) and (Depository Trust and Clearing Corporation (DTCC) -- two of the most corrupt oversight agencies since Foxes began guarding chicken houses -- and march them right over to the nearest cottonwood tree. Is your head spinning? Let us explain . . . .
Yes, Virginia, ACORN and several years worth of Obama and Obama-clone lawyers did bring on the sub-prime lending crisis by forcing lenders to make terribly ill-advised loans to folks without jobs, folks with credit ratings in the 300’s, folks without IDs and even illegal aliens . . . yes, that’s true. But, second place among those culpable for the present financial mess has to belong to these two (SEC and DTCC) absolutely sneaky organizations. Along with the idiots in Congress in 1977, 1992 and 1998 who passed the ridiculous laws that ACORN was able to exploit against this country in the form of forced-ridiculous mortgages . . . Goldman Sachs and the SEC and DTCC are most guilty for bringing this nation to its knees from late 2007 to the present. Corruption on a major scale is rampant in these three organizations and needs to be shot down and fully punished. Additionally, after rolling heads out the door at the SEC and DTCC, Goldman Sachs needs to be punished to the tune of roughly $100 billion dollars and forever barred from holding any federal position of financial responsibility for the next twenty years.
So, getting down to particulars, what corruption is being talked about here? Well, starting with the DTCC . . . . The DTCC has the easiest clerical job in the oversight industry. All they have to do is see that the straightforward legal requirements are met in the vast majority of cases (say 99% of the time) whenever stocks are bough or sold. In the simplest instance, sell a stock and you must deliver a copy of the stock certificate within the legal timeframe. Buy a stock and you must deliver the money for the stock within the same time period. Simple-pimple. But the DTCC seldom actually does its job, it’s employees are ex-brokerage firm employees in many cases and they just ask their buddies, “John, everything copasetic? And that’s as far as it goes. The SEC, it’s believed only examines the DTCC once every other year. The DTCC, meanwhile is responsible for $1.5 quadrillion (that’s right QUADrillion!) in transactions ever single year and they don’t do their job.
Where this gets dangerous is in the matter of short-selling. You see a company like Bear Stearn or Lehman Brothers or Enron and you know they’re cruising for a bruising. So you sell their stock, except you don’t actually hold their stock, oooops, well you borrow their stock and turn the certificate over to the brokerage firm of the purchaser within the legally prescribed time limit. But wait a minute, because the DTCC never actually does its job, you never actually borrow the stock and never actually give the certificate to the purchaser’s brokerage – this is called “NAKED SHORT-SELLING” and huge amounts of it helped drive Bear-Stearns and Lehman Brothers stock and made it almost impossible for people actually owning the stock to get any value at all for their holdings. So someone wants to short sell, but it’s impossible to find someone to lend them the stock (people don’t like to commit their stock for any time period when financial armageddon approaches, they feel they might well need to sell it in a hurry. But here we have over 30 million illegal short sells that were driving the price down dramatically . . . which is a killer for someone who actually owns the stock. In practice, illegal naked short sales OFTEN go months at a time without delivery of the sold stock certificates.
In the case of the SEC, their corruption lies in knowing there are violations, serious violations, going on and looking the other way. In recent times the SEC corruption covered up the DTCC tendency for incompetence well known at the SEC and routinely overlooked; in 2008, the SEC stepped in to save face for the DTCC at huge cost to the public. Let’s go back to Lehman Bros. for an easy example: SEC records shows that an incredible 32.8 million shares of Lehman Bros. were sold but never delivered to buyers as of last September less than two weeks before the company declared bankruptcy which helped trigger the nearly full-implosion of our financial system. The SEC, which attacked Martha Stewart but not Bernie Madoff you’ll recall even though her actual guilt is still disputable and his had been tracked for years, is seemingly completely impotent and even frightened of doing the job it’s been created to do. In the Lehman Bros. example, the SEC found out that the DTCC was using “phantom stock” in a particular mumbo-jumbo called their “borrowed stock progam” to make up the difference. Only trouble, the DTCC is also NOT borrowing real stock and not delivering real stock to the buyers so the DTCC is actually abetting the illegal short-sales and the SEC knew that and did . . . NOTHING! Got that, all the while the DTCC is stating with a straight-face that NO illegal naked short-selling is going on . . . the SEC is backing them up and say, “NOPE, nobody here but us chickens!”
As for Goldman*** Sachs . . . they must be in bed with every congressman and senator in Washington to operate the way they do and never get even so much as a slap on the wrist. Consider this . . . Rajjpuut offers you a chance on a seeming coin-flip investment and sells you a piece of paper outlining your investment potential and advertisement claiming that you’ve got at least a 60% payout if your investment comes through. Sly Ol’ Rajjpuut hasn’t mentioned that your position in the coin-flip investment is the equivalent of backing a landing on the coin’s edge (say a ten million to one shot). That’s pretty much what Goldman Sachs is accused of knowingly offering their customers in an operation called “the heist” and knowingly setting up for a scam artist while knowingly collecting a huge amount of commissions as the heist proceeded to empty the little guys’ wallet as they knowingly favored that one client (a hedge fund operator) over thousands of investors it misled into thinking they were being offered a can’t miss deal. Meanwhile Goldman Sachs is actually a favored company receiving the contract to do a federal job and receiving huge draw down in the process . . . virtually the only stock brokerage to come out of the recent Wall Street debacle on top was GS. More below, but read about the exact details of “the heist” here:
Meanwhile, as noted, Goldman really has the “ins” with the Feds. Timothy Geithner’s friend, a Goldman Sachs lobbyist was announced as Geithner’s new aide on the very day he issued a prohibition from hiring lobbyists in the Treasury Dept. President Obama recently announced he intended to install a former GS exec as the head of the Commodity Futures Trading Commission. Without discussion he was approved. GS received $13 Billion in the $170 Billion AIG bailout for ???? It now appears that AIG was apparently secretly used to bail out highly connected banks and financial institutions like GS and UBS. Secretary Paulson’s old firm was GS, of course, and whether with Bush or Obama GS continues to fall into the manure pile and come up smelling rosy. Paulson created a recommendation group about what must be done with AIG and heading it up were GS people. Obama’s administration has collected $5.2 million from a GS hedge fund and been paid several hundreds of thousands of dollars in speaking fees by GS and GS related groups. The Federal Reserve Bank recently allowed GS to convert from an investment bank into a bank holding company usually a situation in which profits are severely restricted. This most recent blowout quarter for GS, however, saw over $2 Billion in profits. Barney Frank’s stop staffer (Frank is chairman of the House Financial Services Committee) cut loose and was immediately hired by GS as their, you guessed it, their top lobbyist. GS is dirty but the feds have no interest in exposing it.
So, is financial reform necessary? You bet. Is Barakbanking true financial reform? Not only “No, but HELL no!” Barackbanking is another attempt to move more and more control over American society into the executive branch of big gov while heavily refunding the ACORN-clones. First, defeat Barackbanking, next defeat Obama’s progressives in November and finally institute true financial reform and string up the SEC, DTCC and Goldman Sachs and their congressional protectors.
Ya’all live long, strong and ornery,
** * The SEC on Friday, April 16th filed fraud charges against Goldman Sachs for the ir involvement in the short-selling scam engineered by John Paulson (no known relation to the former Treasury Secretary). Sachs often called “Government Sachs” is, most obviously tied to the repayment at 100 cents on the dollar for contracts whose true market value, given the circumstances AIG was in, was probably no more that twenty cents on the dollar. Amazingly, $13 Billion of the $171 bailout to AIG was “misdirected” into GS hands. This fraudulent use of their fiduciary responibility cost the taxpayers at least $10.4 Billion. Anyway you look at it GS quacks like a mighty corrupt duck. However . . . . given that an SEC lawyer who a dozen years ago advised quashing charges against the R. Allen Stanford ponzi operation which has only now been brought to light . . . given that the lawyer in question is representing Stanford . . . .
. . .Yes, you’re correct, there’s plenty of room for a bit of suspicion here based upon the timing of the SEC charges. The SEC goes for years without remove its figurative thumb from where it usually sits. Now just on the eve of the big push to pass barackbanking, they get all serious on us just as Democrats are trying to get even one Republican to vote for their embarrassingly partisan, corrupt and poorly-conceived financial “reform “ legislation. Could that be a coincidence? Ha? Besides its problems with the corrupt refunding of ACORN-clones, the bill in large part is more of the idiotic “too big to fail” bull-feces that got us two stimulus packages and bailouts that have not helped create jobs. Barackbanking actually would punish firms for being “too big” and definitely encourages government to tell banks how to run their business . . . you’ll remember it was our progressive government’s abetting of ACORN with three ill-conceived mortgage-guarantee laws that allowed them to pressure banks and lending institutions to make abysmal home loans to far less than credit-worthy borrowers (some without jobs; others without ID; virtually all with credit scores under 600; and even to illegal aliens) that was the prime cause of the financial meltdown still socking it to us today . . . and the SEC wouldn’t mind looking good in the news reports after their huge failures with the Madoff, Petters and Stanford scandals. These three cases of massive, long-running ponzi schemes which the SEC didn’t uncover are surely a black-eye for that most incompetent and incompetent bureaucracy . . . but now charges are being laid upon the SEC that they knew of the Stanford ponzi scheme since at least 1997 and did . . . NOTHING! Oh my, bull and bears and nertz, oh my!