Archive for the ‘Merrill Lynch’ Category

SANFORD WEILL REVERSES HIS LIFE: WANTS TO BREAKUP CITIBANK, JP MORGAN AND BANK AMERICA

Wednesday, July 25th, 2012

BREAKING NEWS FOR IMMEDIATE RELEASE:

In a block-buster, massive headline interview at 7 AM, July 25, 2012 on CNBC “Squawk Box,” Sandy says “Times have changed. . .  I want America to lead. . .  I care about America.”

Today’s 7 AM interview with Sandy Weill is the most important even since the 2008 crash of the world financial system that Weill sowed. Here is the legendary, most powerful man in Manhattan, a former Governor of the New York Federal Reserve Bank, suddenly advising the world to overturn the financial model that he personally created!

After singlehandedly overturning the Depression Era law, GlassSteagall Act, that separated deposit taking commercial banks from insurance from investment banking and securities, suddenly Sandy, at age 78, wants to break up the crown jewel of his professional career.

I had blamed Weill’s creation of Citibank as the seed that, in cooperation with the creation of Fannie Mae and the Obama/ACORN drive for mortgages to people who could not qualify for a $300 credit card, started the corruption and destruction of the world financial system that bore the deadly fruit of the 2008 worldwide financial crash.

Not only was I a corporate finance officer in a “major bracket” investment bank, I was my firm’s expert on financing and providing capital to commercial banks, and performed the last public equity financing of Barnett Banks of Florida. I had strenuously opposed the securitization of mortgages and other bank loans into securities that could be publicly traded.

At that time Sandy appeared to be ignoring the law and expanded his base of securities trading investment banks into commercial banking and into insurance. Sandy acquired a number of securities firms, which then acquired Citibank, Traveler’s Insurance, and the A.L. Williams multi-level marketing insurance and mutual fund organization.

It was Weill’s getting Glass Steagall overturned the made the hydra-headed “universal banks” like Citigroup into unmanageable monsters, and made Weill fabulously rich and powerful, while simultaneously creating a worldwide financial system that has proven to be catastrophic, and which still has not been fixed and made healthy.

What is it about old age that makes robber-barons suddenly see the error of their ways?

Sandy’s protégé Jamie Dimon is the legendary head of JP Morgan Chase. Dimon left Sandy when Sandy promoted his daughter in preference to Dimon. Under Dimon’s leadership, which was learned under and copied from Weill, JP Morgan has become the leading US “universal bank.” What impacts will Sandy’s advising that the US breakup the “universal banks” have on JP Morgan?

 

Weill now says that deposit taking institutions should be separate from investment banks, and thatbank and securities firms’ leverage should be 12 – 15 to one. Lehman, counting off balance sheet liabilities, was more than 50:1. Fannie Mae and Freddie Mac in 2008 were leveraged more than 50:1, which was wiped out in minutes.

Investment banks should not have the ability to be bailed out by central banks.

Federal Reserve Stampeding Public and Congress into Communnist Bailout

Friday, September 26th, 2008

Historically, every time the Federal Reserve has taken over a bank or savings and loan, the failed institution has been seized by the Fed’s staff arriving at the target institution’s headquarters after the close of business on Friday night, so that the public has the opportunity to adjust to the shock over the weekend, and so that there will not be a run of withdrawals the next morning.

This time, it would appear that the Fed was manipulated by politics regarding the public opposition to the Democratic Congress’ support of Paulson’s $700 billion, no strings attached, gift to his colleagues on Wall Street.

By Thursday afternoon it was clear that the Republicans in Congress had finally decided to listen to the wishes of the voters, and were refusing to go along with the Democratic Finance Chiefs Senators Chris Dodd and detached Barack Obama.

So the Fed attempted to panic the public by taking over Washington Mutual on Thursday night instead of over the weekend.

The Fed is part of the criminal conspiracy seeking to panic the public and the ignorant buffoons in Congress into a fearful stampede or else the world will end!

This is contemptible manipulation of the public through false fear, identical to the strategy of fearful stampede into the second Iraq war.

Thursday’s seizure of Washington Mutual by the Fed is a despicable attempt to use fear and panic to stampede both Congress and the public into a totally wrong and incredibly absurd course of action.

The $700 billion gift to Wall Street makes no sense at all and does nothing to treat the root cause of our problem, which is the permission of the government to financial institutions to bundle mortgages into tradable security packages.

The first step in curing the problem is to outlaw CDO and CMO packages, because they separate accountability from risk, thereby encouraging what should be criminalized activity bu unscrupulous mortgage lenders.

Paulson’s and the Democratic Congress want the bailout package to include “adjusting” individual mortgages downward, not to the new market value of the home, but to what the borrower can afford. Who determines, and by what mechanism, what the borrower can afford.

The adjustment provision goes far beyond socialism: it is pure Communism and abject redistribution of wealth.

No financial system on earth, and no nation, can survive is the government haas the authority to “adjust” individual’s debts.

The bailout package may well be the end of America.

Call your Congressmen and tell them you oppose every aspect of the bailout package.

Current laws and the operation of the Federal Reserve are everything we need for the markets to reach equilibrium. No intervention by government can make the oversupply of housing disappear.

Local governments and pressures within the Democratic Party to seze the foreclosed homes, or to use taxpayer dollars to repo them, and use them for low cost community housing is nothing but the purest form of Marxist Communism that will bankrupt America.

Every elected official who supports the Bush/Chris Dodd/Barack /Obama/Democrats bailout plans should be impeached, AND I mean it.

Then go to these sites and tell your elected officials that you “OPPOSE THE BAILOUT”

http://congressorg.capwiz.com/congressorg/directory/congdir.tt

Goldman Sachs and Morgan Stanley Are Bank Holding Companies

Sunday, September 21st, 2008

In the final destruction of all the wonderful laws passed by a thoughtful Congress and Franklin Delano Roosevelt to protect the American people from the excesses and corruption that caused the Great Depression, your totally incompetent government  taken the final steps to maximize the corruption of our financial system.

The last two major independent investment banking/ stock brokerage houses have now officially become commercial banks.

Don’t believe me? See:

http://federalreserve.gov/newsevents/press/bcreg/20080921a.htm

Will Everyone Who Bot Fannie Mae Stock Sue Merrill Lynch?

Monday, September 8th, 2008

Herb Allison,, former president of Merrill  Lynch, is the government appointed head of Fannie Mae.

i have been observing for some time that trading in both Fannie Mae and Freddie Mac should have been suspended because any financial analyst with even a broken pencil could see that both companies were grossly insolvent.

Merrill Lynch, Goldman Sachs, and all the brokers have at least one sharp pencil buried beneath the salesmen, and should have reasonably known of the de facto insolvency. They should have advised their customers that these firms were insolvent.

Trial lawyers, paradise is here!

The potential liability is huge to Merrill Lynch for continuing trading these stocks and permitting their customers to buy them through Merrill Lynch, earning excessive commissions for Merrill. The lower a stock price, the higher the commission as a percent of the trade.

Now the former president of one of the firms who did hundreds of billions of trading in the bad paper is in charge of Fannie Mae?

Is there no Shame?

There certainly is no honor left in American finance ad its regulators.