Tag Archives | Wall Street banks

UPDATED: Bankruptcy judge does Detroiters a solid, says Emergency Manager’s debt swap deal is “too generous” to banks

Please, sir, may I have some more?

[Photo by Chris Savage | Eclectablog]

Steven Rhodes, the federal judge overseeing Detroit’s Chapter 9 bankruptcy, halted discussions on Emergency Manager Kevyn Orr’s plan to borrow $350 from Barclay’s bank to retire some terribly negotiated debt swaps, effectively moving banks to the head of the line in the bankruptcy proceedings. In what can only be described as doing the residents of Detroit — particularly the retirees — a solid, Rhodes described the deal as being “too generous” to the banks.

Detroit could end up with millions more for public services after U.S. Bankruptcy Judge Steven Rhodes questioned whether a loan deal with the city was too generous for the banks and ordered both sides to renegotiate.…
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Detroit’s bank creditors: Christie’s art appraisal not good enough, might give “inappropriately low assessment” of DIA’s collection

The desperation is getting palpable

While Governor Rick Snyder met with billionaire Warren Buffett and Goldman Sachs CEO Lloyd Blankfein in Detroit yesterday, another group of wealthy moneymen were across town filing a motion with the federal judge asking that he take action on their behalf in Detroit’s ongoing bankruptcy saga. The banks that are owed money by Detroit are getting increasingly fearful that they may not walk away from their decades of investments without taking a loss. After refusing to tour the city to see the devastation that they helped enable, they now want the city to pay for a team to appraise the art collection of the Detroit Institute of Arts to “maximize the value of the art to enhance creditor recoveries”.…

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There are winners in Detroit’s financial crisis: the banks – and they are shielded from any risk by the new Emergency Manager law

It’s good to be the king banker

There’s a story emerging out of Detroit about the role too-big-to-fail banks have played in the creation of Detroit’s fiscal emergency. Last week, Dave Dayen reported at the National Memo that some banks have begun foreclosure proceedings on homeowners and then simply walked away before taking possession of the property. This leaves evicted homeowners on the hook financially for the home they are no longer permitted to live in. What’s worse is that the banks don’t even have to inform the homeowner or the city of Detroit which no longer receives any tax revenue from the property.

Not only that, banks have been reaping huge profits in debt restructuring fees and, as added salt in the wound of a city in crisis, Republicans have ensured that these same banks will be paid in full as Detroit works to get out from under its crushing debt.

Much more after the jump.

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AIG spits in America’s face while saying “thank you” – may sue US govt because we bailed them out

Legendary chutzpah, monolithic greed

One of the top shareholders in AIG, the insurance giant bailed out by the American taxpayers during the Wall Street meltdown, is Maurice Greenberg who once ran the company. He is suing the United States government because he says that, in the process of bailing out the company that feathers his nest so softly, they lost him money. However, that level of greed was not enough for Greenberg and he is trying to get AIG itself to join him in his lawsuit. This comes the same week AIG released a video thanking American taxpayers for saving their ass and talking about how proud they are that they paid back their debt and gave the taxpayers a tidy profit in the process.

Video and more after the jump.

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Romney cashed in big time when Obama saved the auto industry

Plutocrats never lose, it’s just a matter of how much they win

Greg Palast has a article in The Nation this week that should be blowing the lid off the Romney campaign. Sadly, it’s getting scant attention. The article, “Mitt Romney’s Bailout Bonanza”, shows how hedge fun managers manipulated the rescue of the auto industry in order to cash in heavily and earn millions in profits, paid for entirely by the American tax payers. In the process, they stripped workers of both their pensions and their union protections.

The sad part is, if we hadn’t bailed out Chrysler and GM, these vulture capitalist friends of Mitt Romney probably would have figured out a way to cash in even more.

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Obama isn’t responsible for rising gas prices. Surprise: it’s Wall Street. – UPDATED

GOP presidential candidates: paid shills for Wall Street

There has been an endless litany of GOP wharrgarbl lately about how rising gas prices are the fault of President Obama and his environmental policies. According to these professional wharrgarblists, all we need to do is drill more and open the Keystone XL pipeline and prices will magically fall below $2 per gallon.

Sounds nice, I know. Problem is: it’s utter tripe.

U.S. demand for oil and refined products — including gasoline — is down sharply from last year, so much that United States has actually become a net exporter of gasoline, unable to consume all that it makes.…
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Banks glad you’re moving your money to credit unions – you aren’t profitable enough & they have too much $$$

I’m sorry, but I’m having a REAL hard time believing this load of manure:

DCDecoder asks [Motley Fool's] Morgan Housel: Why do you think Bank Transfer Day may end up working out for banks AND customers?

Housel: One of the drivers behind [Bank Transfer Day] is people trying to teach banks a lesson. The irony of that is since the financial crisis, and especially over the last three months as there has been a panic about Europe… banks have been inundated with cash deposits. They’ve been seeing a higher inflow of deposits than they can turn into loans.

That’s putting pressure on their margins because banks have to pay [Federal Deposit Insurance Corp.] premiums and overhead costs.

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Obama administration wants Wall Street banks to help pay for auto company and other bailout losses

This should make progressives VERY happy. In fact, it ought to make the Congressional Progressive Caucus especially happy because the Obama administration is pushing to adopt a key component of their People’s Budget (pdf): forcing the banks that caused our country’s economic crisis to help pick up the pieces by paying for the losses incurred by taxpayers in helping save our domestic auto industry and other emergency measures. The mechanism is a “Financial Crisis Responsibility Fee“.

The Obama administration said Monday it wants to make the nation’s largest banks pay for the losses incurred in the $85 billion auto bailout and other bailout programs.
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Ruh-Roh, Raggy. Goldman Sachs gets hit with a subpoena.

I’m reposting this blog after a major reading comprehension failure on my part this morning. I thought the investigation was being conducted by federal prosecutors (i.e., the Obama administration.) Turns out, if I had read my own cut-and-paste blockquote, I would have realized it is a New York prosecutor. With all I’ve got going on these days (recruiting volunteers for the Snyder recall, recruiting volunteers for the Netroots for the Troops event at the Netroots Nation conference, getting my garden in, managing a community garden at work, etc. etc., I clearly am moving too fast. Sorry about that ;0 )
Ruh-roh, Raggy.…

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