Corrupt bankers and corrupt government regulators

Robert Scheer sums up the cozy relationship between the U.S. government and the financial sector and it's ugly. One federal judge has the guts to tell it straight, but where is the SEC and where is the Obama Administration? In the process of acquiring failed brokerage house Merrill Lynch, Bank of America sneaks more than $1 Million in bonuses each to 696 Merrill Lynch executives who ran the company into the ground (Merrill Lynch had lost $27 Billion). These outrageous payments occurred while BofA was receiving $45 Billion in taxpayer money as part of the "bailout." On top of that, 39,000 additional Merrill Lynch employees were each paid an average of $91,000 in bonuses, an amount that the Bank of America attorney suggested wasn't a significant amount. New York federal Judge Jed S. Rakoff disagreed, saying:

"I'm glad you think that $91,000 is not a lot of money; I wish the average American was making $91,000."

How corrupt is the government/banking relationship? The SEC did sue BofA of misleading it's shareholders, but this sweetheart settlement stinks to high hell. Consider this quote from Scheer's article:

The SEC complaint did accuse BofA of misleading its shareholders, but instead of digging deeply into how such decisions had been made and by whom, a deal was concocted in which BofA got off with a paltry $33 million fine. That is less than the bonus received by one of the Merrill execs. Yet the SEC deal would have closed the case on how that decision was made.

"You filed a rather uninformative, bare-bones complaint," Judge Rakoff told SEC lawyer David Rosenfeld, who lamely defended the decision to avoid going after the bankers involved, and it is instructive of whose interest he was serving that "[t]he lawyer for Bank of America periodically whispered what appeared to be suggestions to Mr. Rosenfeld," as a New York Times article put it. Whispering between government regulators and the Wall Street honchos ostensibly being regulated is what got us into this mess in the first place.

In the meantime, TARP watchdog Elizabeth Warren is repeatedly warning that the same toxic assets that triggered the meltdown are still on the banks' books. She's warning of the "looming commercial mortgage crisis."

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Orange Fish at Shedd

My daughters and I just returned from a long weekend in Chicago, where we visited the Shedd Aquarium. Flash photography is not allowed, so it's always a challenge to get good existing light photos. For this photo, I couldn't get a sharp image of the moving fish, even with a high ISO setting. Therefore, I tried to pan the camera slowly with the moving fish, guaranteeing a blurred background.The fish is not in perfect focus but the image intrigues me; it's almost like the fish is floating in air. I call this image "floating orange fish" because I forgot to read the sign to actually know what this species is. Click for larger version. Image by Erich Vieth Here's another shot from the Shedd, from a delightful display of jelly fish, and below that a variety of other stunning images from Shedd: Image by Erich Vieth For a gallery of a dozen more photos, click on the title to this post.

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John Yoo is haunted

Remember John Yoo, the Bush Administration lawyer who was willing to drag his Yale J.D. through the dirt by writing government memos that justified torture? If Yoo thought he could simply walk away from all of the commotion and hide out far away, he was wrong. Here he is (believe it or not) teaching law at Chapman University in Australia. During a recent class, Yoo was haunted by an old "friend" (the video is less than two minutes long): My question: Is this an improper disruption of a classroom, or is it just desserts?

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The Wagons are circling!

While reading the Wall Street Journal this morning (courtesy of my hotel) I was appalled, but unsurprised, to read two extremely partisan opinion pieces on Obama's healthcare proposals and the 'reaction' to them. In a piece entitled "The Health Care Grail", William McGurk clearly criticizes the White House, who "yesterday unveiled a new White House Web site accusing critics of scaring Americans 'with half truths and outright lies'". Unsurprisingly, Mr McGurk makes no mention that this is indeed a valid, and independently substantiated, criticism of the astroturf campaign against healthcare reform. Instead he attempts to make the case that this administration's healthcare reform proposals are a "Doctrine" and that "the president and his allies see disagreement over health care as less a political dispute than the trampling of sacred doctrine"

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There oughta be a law…

It’s time that America passed a federal law which requires that any time former Vice President Dick Cheney is mentioned or featured in the broadcast media, that the attached “Darth Vader” theme clip from Lego Star Wars be played: If Mr. Cheney actually speaks—which he no longer does because he prefers not to be questioned further about secret assassination squads which he apparently set up and then ordered the CIA not to disclose such actions to the Congress as mandated by federal law. —federal law should require that in every such instance there also be an interpreter to interpret for the Penguin-speak impaired. There should be no expiration date on this law.

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