Skip to comments.Fascism Hasn’t Changed. Neither Has Its Pitchman.
Posted on 04/15/2021 7:42:42 AM PDT by SueRae
It was nearly twelve years ago to the month. Barack Obama was in the first weeks of his new administration. Some of the biggest names in finance were summoned to the White House to discuss the terms of the bank bailout known as the “Troubled Asset Relief Program” (TARP). Politico published a detailed insider account of the meeting. The charismatic new president who’d just won an historic election with a message of unity sounded a distinctly different tone behind closed doors with the titans of American banks.
As the CEOs attempted to defend their large compensation packages in the midst of the taxpayer funded bailout of their collapsing institutions, one quote from President Obama stood out. “Be careful how you make those statements, gentlemen. The public isn’t buying that. My administration is the only thing between you and the pitchforks.”
Obama’s presidency ushered in a new way of doing business between Democrats and corporate America. Donations weren’t enough. Oversight and congressional hearings weren’t enough. This time the big guy would personally inject himself into every transaction and just like any classic movie mobster, President Obama reminded them once government was on the inside there would be no autonomy. They would play by his rules, or else.
(Excerpt) Read more at townhall.com ...
The $787 billion TARP--the Troubled Assets Relief Program---is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside untraceable money to bail out financial firms and inject money into the markets.
(To get a sense of the size of the real $14 trillion bailout, see M/J chart at web site).
A guide to the pieces of the puzzle includes massive untraceable Treasury Department bailout programs.
Money Market Mutual Fund: In September 2008, the Treasury controlled by Obama/Emanuel announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].
Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokerages—as much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].
TARP: As part of the Troubled Asset Relief Program, the Treasury controlled by Obama/Emanuel made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid.
Government-sponsored enterprise (GSE) stock purchase: The Treasury controlled by Obama/Emanuel bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets."
GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury controlled by Obama/Emanuel may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion
---SNIP---LONG READ---go to web site to read more and checkout the shocking financial charts.
Hunter Biden-linked company received $130M in special federal loans while Joe Biden was VP
Washington Examiner ^ | November 21, 2019 | Alana Goodman
FR Posted on 11/21/2019, 7:25:13 AM by gattaca
An investment firm linked to Hunter Biden received over $130 million in federal bailout loans while his father Joe Biden was vice president and routed profits through a subsidiary in the Cayman Islands, according to federal banking and corporate records reviewed by the Washington Examiner.
Financial experts said the offshore corporate structure could have been used to shield earnings from United States taxes.
Rosemont Capital, an investment firm at the center of Hunter Biden’s much-scrutinized financial network, was one of the companies approved to participate in the 2009 federal loan program known as the Term Asset-Backed Securities Loan Facility, or TALF.
Under the program, the U.S. Treasury Department and the Federal Reserve Bank issued billions of dollars in highly favorable loans to select investors who agreed to buy bonds that banks were struggling to offload, including bundled college and auto loans.
According to federal records, 177 firms participated in TALF, many of them well connected in Washington or on Wall Street. For investors, there was little risk and a high chance of reward. The Federal Reserve funded as much as 90% of the investments. If the bonds were profitable, the borrowers benefited. If not, the department agreed to take over the depreciated assets with no repercussions for the borrowers.
“It’s very complicated to become qualified as a TALF borrower or as a TALF fund, if you will,” Carol Pepper, a wealth management specialist, told Forbes in 2009. “But that’s an example of where, if you can get into a TALF fund, you can benefit from this government program.”
Under the terms for the program, any U.S. company looking to invest in select categories of bonds was eligible to apply for the loans. However, the Treasury Department and Federal Reserve maintained the “right to reject a borrower for any reason,” and the internal selection process was criticized by some lawmakers as opaque and open to corruption.
“How can my constituents in Vermont get some of that money? Who makes the decisions? Do you guys sit around in a room — do you make it? Are there conflicts of interest?” Sen. Bernie Sanders asked Federal Reserve Bank Chairman Ben Bernanke at a March 3, 2009, Senate hearing. “Do you have to be a large, greedy, reckless financial institution to apply for these monies?”
Joe Biden was a key advocate for the financial bailout, which was approved under the Bush administration and expanded under President Barack Obama. He delayed his Senate resignation in January 2009 to cast his final vote to increase funding for the Troubled Asset Relief Program before taking office as vice president. “These guys are not the most likable guys in the world,” Biden said about the banks and hedge funds aided by the government intervention. “But here are the facts ... Had we not bailed out the largest bank institutions in the world, there would have been a flat-out depression.”
One of the firms that benefited was Rosemont Capital, a company led by Hunter Biden’s business partners, Chris Heinz and Devon Archer. The firm received the loans at a crucial time for Hunter Biden. The younger Biden had stepped down from his lobbying business in late 2008, reportedly due to pressure on his father’s vice presidential campaign.
Biden, Heinz, and Archer incorporated Rosemont Seneca Partners in Delaware on June 25, 2009. The “alternative investment and market advisory firm” was an offshoot of Rosemont Capital, which held a 50% stake in the new venture. Rosemont Seneca and Rosemont Capital shared the same office address in lower Manhattan and the same New York phone number, according to Securities and Exchange Commission documents. Three weeks after Rosemont Seneca was incorporated, a subsidiary of Rosemont Capital called Rosemont TALF SPV, received $23.5 million in federal loans through the TALF program. This included $13.4 million to invest in student loans and $11.1 million to invest in subprime auto loans. Over five months, the company received a total of $130 million from the program in multiple installments for investments in subprime credit cards and residential mortgages.
“This is a great example of the suspicion of many Americans that these bailouts were used to benefit connected insiders while ordinary Americans went broke,” said Tom Anderson, director of the Government Integrity Project at the National Legal and Policy Center, an organization that was critical of TALF at the time.
Although the government stopped issuing the loans at the end of 2009, the names of the well connected borrowers and investors were later released — prompting new criticism from lawmakers and the press. In April 2011, Rolling Stone reported that millions in TALF loans had been issued to the wife of Morgan Stanley Chairman John Mack, Miami Dolphins owner H. Wayne Huizenga, and Wall Street titan John Paulson, dubbing the program “welfare for the rich.”
“Our jaws are literally dropping as we’re reading this,” Warren Gunnels, an aide to Sanders, told Rolling Stone. “Every one of these transactions is outrageous.”
Sanders also raised concerns that borrowers were using the program to evade taxes. His office staff compiled a list of over 100 TALF investors based in the Cayman Islands and other known tax havens.
“It has been estimated that each year corporations and wealthy individuals avoid approximately $100 billion in U.S. taxes through the use of abusive and illegal tax shelters,” wrote Sanders in a letter to Bernanke. “Why would the Fed lend to material investors located in the Cayman Islands?”
Federal Reserve records show Rosemont Capital was one of the companies that set up an offshore limited partnership, called “Rosemont TALF Investment Fund LP,” to participate in the TALF program. The fund was incorporated in the Cayman Islands on May 14, 2009, and dissolved on Nov. 14, 2014, according to corporate records in the British territory. The fund was managed by a Delaware-based subsidiary of Rosemont called “Rosemont TALF GP,” SEC records show.
Another investor in Rosemont’s TALF fund, called “Rosemont TALF Opportunities Fund II,” was also based in the Cayman Islands. Additional Rosemont TALF investors included two Greek shipping magnates, a California class action attorney and a financial trust based in Liberia.
Tax experts said the Cayman Islands were a popular location at the time for hedge funds and corporations to set up subsidiaries in order to avoid paying certain U.S. taxes. Didier Jacobs, a senior policy adviser at Oxfam America who focuses on international finance, said an estimated $2.7 trillion was parked in the Cayman Islands and other tax havens prior to the U.S. tax reform in 2017. “As long as it was sitting there, it was not taxed. That’s why there was a lot of money sitting there in the Cayman Islands,” said Jacobs.
Steve Rosenthal, a senior fellow at the Urban-Brookings Tax Policy Center, said the use of an offshore company could also help investment firms reduce the tax liability for foreign or tax-exempt investors who could otherwise be subject to U.S. taxes.
Matt Gardner, a senior fellow at the Institute on Taxation and Economic Policy, said the most likely reason for setting up a company in the Cayman Islands would be to take advantage of its tax laws. “It seems like a pretty basic ask that any recipient of these TALF loans would act in a certain ways. And one of those ways would be to not organize their businesses to avoid taxes in the Caymans,” said Gardner.
(More on TALF below)
The Federal Reserve (read taxpayers) funded as much as 90% of the investments.
If bonds were profitable, the borrowers benefited. If not, the department took over the depreciated assets with no repercussions for borrowers.
Then-Sen Joe Biden was a key advocate for the financial bailout, which was expanded under Obama.
Biden even delayed his Senate resignation in Jan 2009 to cast his final vote to increase funding for the Program before taking office as vice president.
Biden said about the banks and hedge funds aided by the government intervention. "Had we not bailed out the largest bank institutions in the world, there would have been a flat-out depression.”
You left out President Bush.
Protection racket. Dems in full-on mafia-mode.
"Mr President, you are now in complete control of the US Treasury."
THE SMOKING GUN---WSJ REPORT--On Jan 20, 2009 Timothy Geithner was appointed Obama's Secy of the Treasury. But within three weeks, the Obama White House tightened its grip on Treasury. Obama put his COS, Rahm Emanuel, in charge of Treasury---Rahm Emanuel's dual role was an unusual move. When he got to Treasury, WH COS Rahm Emanuel was so involved in the inner workings that the phrase "Rahm wants it" had become an unofficial mantra among subservient govt staffers, prostrate in obeisance, scurrying to accede to Rahm's wishes, according to Treasury government officials. Reported by WSJ / 05/31/09
More here: http://online.wsj.com/article/SB124113406528875137.html
"Obama put me in charge of distributing the stimulus trillions....my brothers and my son Hunter are helping me."
Missing in Action: Stimulus Sheriff Joe Biden
By Michelle Malkin - October 10, 2012
Copyright 2012, Creators Syndicate Inc.
Remember when President Obama bragged about Joe Biden's fiscal discipline creds in 2009? "To you, he's Mr. Vice President, but around the White House, we call him the Sheriff," Obama warned government employees. "Because if you're misusing taxpayer money, you'll have to answer to him." Fast-forward to 2012. Call in the search teams. Since being appointed the nation's stimulus spending cop, Sheriff Joe has taken a permanent donut break. He's AWOL on oversight. In fact, he's been bubble-wrapped, boxed and kept completely out of sight. The garrulous gaffe machine hasn't sat down for a national media interview in five months.
The Democrats' trillion-dollar "American Recovery and Reinvestment Act," however, keeps piling up waste, failure, fraud and debt. Who benefited most? Big government cronies. According to Investor's Business Daily this week, a new analysis by Ohio State University economics professor Bill Dupor reported that "(m)ore than three-quarters of the jobs created or saved by President Obama's economic stimulus in the first year were in government."
Dupor and another colleague had earlier concluded that the porkulus was a predictable jobs-killer that crowded out non-government jobs with make-work public jobs and programs. Indeed, the massive wealth redistribution scheme "destroyed/forestalled roughly one million private sector jobs" by siphoning tax dollars "to offset state revenue shortfalls and Medicaid increases rather than boost private sector employment."
Will this Keynesian wreckage come up during Thursday night's vice presidential debate? It should be a centerpiece of domestic policy discussion. Nowhere is the gulf between Obama/Biden rhetoric and reality on jobs wider. Remember: Obama's Ivy League eggheads behind the stimulus promised that "(m)ore than 90 percent of the jobs created are likely to be in the private sector." These are the same feckless economic advisers who infamously vowed that the stimulus would keep unemployment below 8 percent -- and that unemployment would drop below 6 percent sometime this year. Sheriff Joe rebuked the "naysayers" who decried the behemoth stimulus program's waste, fraud and abuse. "You know what? They were wrong," he crowed.
But Biden was radio silent about the nearly 4,000 stimulus recipients who received $24 billion in Recovery Act funds -- while owing more than $750 million in unpaid corporate, payroll and other taxes. (Cash for Tax Cheats, anyone?)
He had nothing to say about the $6 billion in stimulus energy credits for homeowners that went to nearly a third of credit-claimers who had no record of homeownership, including minors and prisoners.
And the $530 million dumped into the profligate Detroit public schools for laptops and other computer equipment that have had little, if any, measurable academic benefits. And the whopping $6.7 million cost per job under the $50 billion stimulus-funded green energy loan program -- which funded politically connected but now bankrupt solar firms Solyndra ($535 million), Abound Solar ($400 million), Beacon Power ($43 million), A123 ($250 million) and Ener1 ($119 million).
And the $1 million in stimulus cash that went to Big Bird and Sesame Street "to promote healthy eating," which created a theoretical "1.47" jobs. (As Sean Higgins of The Examiner noted, "(T)hat comes out to about $726,000 per job created.")
And the hundreds of millions in stimulus money steered to General Services Administrations junkets in Las Vegas and Hawaii, ghost congressional districts, dead people, infrastructure to nowhere and ubiquitous stimulus propaganda road signs stamped with the shovel-ready logo.
Of course, there's no example of unfettered stimulus squandering more fitting than the one named after Keystone Fiscal Kop Joe Biden himself. Government-funded Amtrak's Wilmington, Del., station raked in $20 million in "recovery" money after heavy personal lobbying by the state's most prominent customer and cheerleader. In return, the station (which came in $6 million over budget, according to The Washington Times) renamed its facility after Biden. Bloated costs. Crony political narcissism. Glaring conflicts of interest. Monumental waste. This is the Obama/Biden stimulus legacy bequeathed to our children and their grandchildren. Sheriff Joe and his plundering boss need to be run out of town on a rail.
Fascism...Communism...opposite sides of the same coin.
Ooops - didn’t see that it was already posted! Moderators, can you please remove mine? Thanks.
Where did it all go?
Who lives on an island
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