Goldman Sachs resignation

At the New York Times, Greg Smith, a Goldman Sachs employee explains his recent resignation:

Today, many of these leaders display a Goldman Sachs culture quotient of exactly zero percent. I attend derivatives sales meetings where not one single minute is spent asking questions about how we can help clients. It’s purely about how we can make the most possible money off of them. If you were an alien from Mars and sat in on one of these meetings, you would believe that a client’s success or progress was not part of the thought process at all. It makes me ill how callously people talk about ripping their clients off. Over the last 12 months I have seen five different managing directors refer to their own clients as “muppets,” sometimes over internal e-mail. Even after the S.E.C., Fabulous Fab, Abacus, God’s work, Carl Levin, Vampire Squids? No humility? I mean, come on. Integrity? It is eroding. I don’t know of any illegal behavior, but will people push the envelope and pitch lucrative and complicated products to clients even if they are not the simplest investments or the ones most directly aligned with the client’s goals? Absolutely. Every day, in fact.
Fair enough,  but it seems as though Greg Smith hung around, participating in this system he portrays as unethical, long enough to accrue a substantial nest egg.  It would certainly seem that he could have made a financial killing in ten years at Goldman Sachs.   Nonetheless, I applaud his article because he could have simply left Goldman without writing the article, which would deny us the benefit of his observations. Then again, the article does seem like cheap talk for one who might be seeking to "repair" his career before moving to whatever comes next.    You could just imagine people looking at Smith suspiciously when he admits that he once worked for Goldman Sachs, at which point he would pull out this NYT article, turning an opportunist into a hero with a bit of deft writing.   I want to believe that the author is gallant, but my gut won't allow me to do so.   Nonetheless, I appreciate his insights.

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Matt Taibbi gives an update on the predatory activities of Bank of America

Rolling Stone's Matt Taibbi is not shy when it comes to hitting back at Bank of America:

They're in deep trouble, but they won't die, because our current president, like the last one, apparently believes it's better to project a false image of financial soundness than to allow one of our oligarchic banks to collapse under the weight of its own corruption. Last year, the Federal Reserve allowed Bank of America to move a huge portfolio of dangerous bets into a side of the company that happens to be FDIC-insured, putting all of us on the hook for as much as $55 trillion in irresponsible gambles. Then, in February, the Justice Department's so-called foreclosure settlement, which will supposedly provide $26 billion in relief for ripped-off homeowners, actually rewarded the bank with a legal waiver that will allow it to escape untold billions in lawsuits. And this month the Fed will release the results of its annual stress test, in which the bank will once again be permitted to perpetuate its fiction of solvency by grossly overrating the mountains of toxic loans on its books. At this point, the rescue effort is so sweeping and elaborate that it goes far beyond simply gouging the tax dollars of millions of struggling families, many of whom have already been ripped off by the bank – it's making the government, and by extension all of us, full-blown accomplices to the fraud.

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The alleged wackiness of Dennis Kucinich

Rep. Dennis Kucinich recently lost his race to return as a Congressional representative of Ohio. The blame for his loss sits largely at the door of the cowardly news media, which would rather make a cartoon of Kucinich than give serious heed to his well-formulated arguments. At Salon.com, Glenn Greenwald also laments the way the establishment media has treated Dennis Kucinich. Greenwald argues that the media blithely painted him as wacky because of Kucinich's friendship with Shirley McLaine (who believes in reincarnation). The media loves to report that (according to McLaine) Kucinich once "claimed to have an encounter with a UFO." For these "sins," the establishment media advises that we are not to take any of Kucinich's political positions seriously. Greenwald dismantles this insanity in two stages. First, he compares the alleged beliefs of Kucinich with the purported beliefs of most politicians, which the news media gives a free ride:

[Are any of Kucinich's beliefs] any more strange than the litany of beliefs which the world’s major religions require? Is Barack Obama “wacky” because he claims to believe that Jesus turned water into wine, rose from the dead and will soon welcome him to heaven? Is Chuck Schumer bizarre because he seems to believe that there’s some big fatherly figure sitting in the sky who spewed fire and brimstone at those who broke the laws he sent down on some stones and now hovers over him judging his every move? Is Harry Reid a weirdo because he apparently venerates as divine the “visions” of a man who had dozens of wives, including some already married to other men? Neither the Prospect nor the Post would ever dare mock as “wacky” the belief in invisible judgmental father-figures in the sky or that rendition of life-after-death gospel because those belief systems have been deemed acceptable by establishment circles.
Step two of the analysis is to step back to see the political views of Kucinich that have been ridiculed by the mainstream media: [More . . . ]

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How a law student could have failed a property law class in 1994

Imagine the following law school exam question asked in a property law class in 1994, prior to securitization, when the laws of Missouri were substantially the same as they are today regarding real estate transaction recording, foreclosures and unlawful detainer proceedings: Joe buys a house from Bank A. Bank A…

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Wikileaks exposes “shadow CIA”: Stratfor

See this new report on the most recent revelation by Wikileaks:

Whistleblowing website WikiLeaks today started to publish more than five million confidential emails from the global intelligence company Stratfor. . . . Among the allegations to emerge is that Stratfor's claim to be a media organisation providing a subscription intelligence newsletter is a front for 'running paid informants networks' and 'laundering those payments through the Bahamas, through Switzerland, through private credit cards'. Stratfor 'is monitoring Bhopal activists for Dow Chemicals, Peta activities for Coca-Cola', WikiLeaks founder Julian Assange claimed at a press conference in London today. However, what could cause the greatest embarrassment for the U.S. government is his suggestion that information is also being gathered by paying contacts from agencies including the U.S. Department of Homeland Security, the U.S. Marines and the U.S. Defense Intelligence Agency.
It appears, then, that a for-profit enterprise engaged secret shady dealing is being exposed by the non-profit Wikileaks, whose mission is to make harmful information public. Many more stories are expected to emerge based on the release of five million emails from the private intelligence firm, Stratfor. Until today, I had never heard about Stratfor. That's about to change, big time, based on the Wikileaks releases. The suggestions that Stratfor has numerous ties to paid U.S. government sources is extremely troubling. We'll see what happens to those profiteers. As I recall, Bradley Manning never made a penny when he released U.S. cables, but he has been imprisoned ever since, and often tortured by the U.S. government.

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