OneWest (Soros) buys another failed bank amid controversy

SAN FRANCISCO (MarketWatch) -- OneWest Bank, formed from the remnants of collapsed lender IndyMac, is sticking to a strategy of buying other failed institutions despite controversy surrounding previous deals with the Federal Deposit Insurance Corp.

OneWest didn't pay a premium for La Jolla Bank's deposits, which stood at roughly $2.8 billion at the end of 2009. It also took on most of the bank's assets, which totaled about $3.6 billion on Dec. 31.

The FDIC and OneWest agreed to share losses on $3.31 billion of La Jolla Bank's assets. The deal cost the regulator's Deposit Insurance Fund an estimated $882.3 million.

A bigger loss-sharing agreement between OneWest and the FDIC was struck in December, when OneWest acquired failed lender First Federal Bank of California, stirred controversy.

The FDIC may be particularly sensitive about OneWest because it was formed in early 2009 when the regulator sold IndyMac to a group of private-equity and hedge fund investors, including former Goldman Sachs Group Inc. /quotes/comstock/13*!gs/quotes/nls/gs (GS 156.77, +0.06, +0.04%) executive vice president Steven Mnuchin, as well as George Soros and J. Christopher Flowers.

John Paulson, who made billions of dollars betting against mortgage securities during the housing crisis, is also an investor.

This is a much better explanation.

Tim Geithner, the man who President Obama said the United States could not do without despite his record of tax cheating, has come up with the “Big Sham;” a plan to reward fat cat investors who are Democrat supporters (or who will be) at tax payer expense. Geithner’s so-called Public-Private Partnership Program is a sham. It’s a lie. It supposedly “pairs” government money with private investors’ money to buy toxic mortgages from banks but there is no pairing and there’s no partnership.

Private investors favored by Democrats put up a fraction of the money and get almost all the profits while taxpayers get stuck with almost all the risk.

Here is an example of how this works.

Goldman Sachs (home of many Obama appointees) wants to buy a million dollars of mortgages from a bank for $420,000; Goldman puts up $30,000 and Treasury puts up $30,000 but then the FDIC guarantees a loan for $360,000. Goldman gets 93% of the profits while taxpayers (suckers like us) are on the hook for 93% of the risk.

Tens of thousands of defaulted mortgages on tens of thousands of homes are bought giving favored bankers like Goldman Sachs ownership of them by putting up just 7 cents on the dollar. The sub-prime mortgages total more than $2 trillion so this amounts to another huge give-away to politically well-connected bankers.

Looking at the scheme all together: $80 billion goes to make JPMorgan Chase whole on its bad trades; $319 billion goes to Citibank; $300 billion goes to bailouts of Fannie Mae and Freddie Mac $185 billion to bonus-giving AIG; $29 billion to Bear Stearns; $25 billion to General Motors Finance; $700 billion in currency swaps to other governments and trillions for the TARP, TALF; and other programs that will make bankers who have shown their greed and incompetence wealthy while Obama and Geithner make the rest of poorer.

Although Geithner and Obama are able to fool Americans with the aid of the Democrat news media house organs, the rest of the world is not so gullible.

Recently China’s central bank governor joined three other economic giants (Russia, Brazil and India) in calling for the world to abandon the dollar as the world’s reserve currency; then the International Monetary Fund said the same thing. As the G-20 meet the US dollar as the international reserve currency is on the agenda there. As the dollar trends lower against other countries’ currencies, people like George Soros make billions. Soros has already said “This has been a good crisis for me,” and why not? Soros was able to get 158% profits in just 24 days by buying options that stood to gain when the Euro rose against the dollar. The Euro rose less than a dime but Soros and others like him wound up with huge gains. Add another 74% profits in two weeks with options on the British pound and more profit on just a change of 9 cents – a 77% profit when the pound increased 10.3 cents against the dollar. Now with the size the bailouts and the huge multi-trillion dollar deficits, the US dollar will likely fall even more.

The profit potential for the likes of George Soros who gains and adds to his fortune by currency speculation will now, from currency options on stronger currencies, be enormous.

Those with 401 Ks who lost large sums in the market meltdown can attest that no matter how well diversified you are, there are times when the whole stock market goes pretty much straight down, and the same for bonds and real estate. But that doesn’t happen with currency investments because it’s mathematically impossible for the US dollar to go down without other currencies like the Euro, Chinese Yuan, or the Canadian dollar going up in equal measure.

Geithner is perpetrating a huge lie that will wreck the dollar and is the biggest scam in our history – all for the benefit of wealthy bankers who will be beholden to Obama and the Democrat Party. Even the president of the European Union called these bailouts and other lunatic American policies “the road to Hell.” But in this case the road to hell is paved with gold for the fortunate few.

FROM:

http://www.bermuda-online.org/intexecs.htm

Michael Bloomberg
An American technology wizard and frequent visitor to Bermuda with a vast home overlooking the ocean in Tucker’s Town, he founded a global financial company - Bloomberg - in his own name, more than 75% of which he still owns. 68 years old (in November 2009) he is the wealthiest divorced man, with 2 daughters in New York City, with an estimated US$16 billion in assets in 2009.

His Bermuda home was recently extensively re-worked at a reported cost of $10.5 million. His neighbors there include billionaire Ross Perot and Italian Prime Minister Silvio Berlusconi. His other homes are two in New York’s Westchester County, Armonk, a townhouse at 17 E. 79th Street in Manhattan, a 20-acre farm in North Salem, a London apartment in Cadogan Square and a condominium in Vail, Colorado. His financial information and news services are widely used locally.

He was a 2001 Republican mayoral candidate for New York City, won the election and became Mayor after November 6, 2001 (still in office in 2009). He has a fleet of aircraft at his disposal. A licensed pilot, he owns a high-performance single-engine plane for quick jaunts. It is a Mooney Bravo M20M, seats four, flies high and goes fast.

GOOD GRIEF! Here’s a few with connections!

http://www.bermuda-online.org/intexecs.htm

Bill Gates
The Microsoft founder and CEO, one of the richest men in the world, believed to have many Bermuda financial and other connections.

Maurice (Hank) R. Greenberg
Former Chairman & CEO of American International Group, the biggest insurance company and the first international insurance company to establish on office in Bermuda.

Hugh Lowenstein
A Bloomberg director who owns Bermuda-based Shore Capital Ltd. His large property, “Jungle,” in Tucker’s Town was sold recently to the daughters of Michael Bloomberg.

Rupert Murdoch

Based in the USA, this media magnate uses Bermuda to base some of his holding companies for his US $ 5.6 billion fortune. He is believed to have 101 British or other companies listed as subsidiaries of his main British holding company Newscorp Investments

Ross Perot
79 in 2009. In the 1992 and 1996 US Presidential elections he won 19 percent of the popular vote. He founded the Reform Party in USA. He’s worth at least US$ 4.5 billion in 2009. He and his son, Ross Jr, own lavish side by side Bermuda homes in Tucker’s Town

George Soros
Hungarian born, British, worth at least $968 million. Via two funds, he holds shares in Bermuda based IPC Holdings, a subsidiary of which is catastrophe insurer International Property Catastrophe Reinsurance Company Ltd.

Bruce Wasserstein
CEO of multi-billion dollar Wall Street investment bank Lazard which is incorporated in Bermuda. He took the company public in 2005 and is estimated to be worth approximately $2 billion.

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