… on whose board sat John McCain’s son as an execuive director.
Shades of Neil Bush – hell, even the institution’s name is similar to W’s little brother’s bank (the one where he used to guzzle champagne out of a cowboy boot): “Silverado S&L” [WSJ]
Here’s something far scarier than a fortunate son being unbothered/untarnished by repeated failure (confidence and hubris are not the same thing, ladies and gentlemen):
A Rothschild said:
“Give me control of a nation’s money and I care not who makes it’s laws.”
– Mayer Amschel Bauer Rothschild
…. so, guess which country the Fed, Inc. is going to allow (the Fed apparently have omniscient powers) US branches and subsidiaries of, to own controlling interest in US banks?
G’wan, guess. (Oopsy, I gave it away up there if you were paying attention.)
I think they figured how to bail out our ass: US debt, the FDIC, IB’s, Hedge funds, PIMCO, and Phony and Fraudie all at the same time– sell US to China!
Time to learn Mandarin, methinks.
How does one say “bite off nose to spite face?”
See you in re-education camp!
Socialism has arrived…
Paulson Plans to Take Control of Fannie, Freddie; CEOs to Depart
Sept. 6 (Bloomberg) — Treasury Secretary Henry Paulson is preparing to announce plans to bring Fannie Mae and Freddie Mac under government control, seeking to halt the crisis of confidence in the companies that make up almost half the U.S. mortgage market.
Paulson met with Fannie Mae Chief Executive Officer Daniel Mudd and Freddie Mac CEO Richard Syron yesterday to tell them of the decision to put the companies into a conservatorship, where they would be removed from their jobs, according to a person briefed on the discussions. A public announcement is expected this weekend, the person said. [Bloomie]
Read Karl Denninger’s take:
Freddie also stated they were well-capitalized.
So what happened here, exactly?
Three possibilities, all nightmares:
- The firms both burned through all of their excess reserves and capital in the last few weeks.
- There was some “event” that was about to happen – like over the weekend – that would have caused the firms to be unable to operate (e.g. someone, perhaps the Chinese, said they were going to intentionally tank GSE paper as an act of economic warfare?)
- The audit being done by Morgan and Deloitte and Touche found critical misstatements in the firm’s capital structure, perhaps similar to what happened back in the early part of the decade when they were caught “cooking the books”, and as such what they claimed to have wasn’t really there!
[Market Ticker][Market Ticker]
Effectively conservatorship=bankruptcy. And guess who is left holding the bag?
You, me, your kids, your grandkids… Fuck you very much, Hanky Panky, Bendover Bukkake, Goldman Sucks, Bill “ooh that’s” Gross, on gaming the system so your small circle of banker friends win, and everyone else loses.
Gee, I wonder how the bankruptcy of these two ginormous hedge funds (“Phonie and Fraudie”) is going to affect Lehman and Wachovia. Hmmm… got Kaputs(tm)?
****BANK FORECLOSURE FRIDAY UPDATE****
Downey S&L receives cease and desist order.
The Office of Thrift Supervision, which is the regulatory agency that oversees Downey, has issued a cease-and-desist order that formally requires the bank to raise capital, name a new chief executive, and take other actions aimed at shoring up its operations, these people said. The moves come just a few weeks after the regulatory agency imposed a number of restrictions on the bank, including a limit on dividends, asset growth and new borrowing. [WSJ]
Soon, my lovely, soon…
San Francisco Bank Under Siege By People Facing Foreclosure
A San Francisco Wachovia branch was under siege Wednesday afternoon by people on the verge of losing their homes. Those people accuse the bank of giving them mortgages that the bank knew they couldn’t afford. Wachovia is the owner of the former Oakland-based World Savings, a bank that CBS 5 has been investigating for months.
It’s not God I have a problem with, it’s his fan club.