And it has nothing to do with Jefferson Parish Political Corruption.
For literally years our good friend Mr CLS has been methodically hammering away at the complexities surrounding insurance securitization and the implications of such for each and every one of us, especially those of us on the coast being price gouged for wind coverage. So suppose you’re a reporter with insurance beat responsibilities like Becky Mowbray, Anita Lee, Jeff Amy, Paige St John, Beatrice Garcia or a national outfit like Bloomberg that has done some quality coverage on insurance issues that is ready to kick it up a notch in terms of understanding. What is now coming to light with Bank of America’s alleged forced placed insurance fraud is a must read as more turds float to the surface in the global insurance finance cesspool.
Some of the very same problems could very well exist in other facets of the securitized insurance market; problems the folks at U Penn Wharton School no doubt did not conceive of when they were pioneering insurance linked securities such at Catastrophe Bonds not long ago as the reasons for the lack of market transparency in the global insurance markets come into sharper focus.
Don’t look for the political shoe shine boys for big insurance such as the coast’s own Steven Palazzo or Commish Mike Chaney to say much on this. Both men, despite paying lots of lip service to the topic of insurance, remain firmly, purposely ignorant of the any fraud perpetrated by their big business buddies on Wall Street.
And when you read the Rolling Stones article on Wall Street being completely above the law you’ll understand why you see names like Brooksley Born, Judge Jed Rakoff, AIG and crooked CEO John Mack in our archives. And sadly, I’ve concluded Longshanks is probably right, we are becoming economic slaves to financial interests and that the sheeple are too self-absorbed and ignorant to understand that basic fact. It also explains why I have little respect for sham regulators like Jim Donelon and Mike Chaney or the rest of the corporate do bitches that populate the Republican party. The Democrats aren’t any better though their rhetoric doesn’t come across as quite so clueless.
Perhaps this is why discriminating bloggers call folks like House Speaker John Boehner a dumb fuck for talking about repealing the weak financial re-regulation bill that passed last year. Meantime the Hollow One, $tung by critici$m about being too hard in Wall Street, is now genuflecting before CEOs like John Mack $pit $hining their $kin flute$. Ain’t 2 party politics swell!
Hat tip to Editilla and Dambala.
If there is one reason (besides that special interest infested monstrosity also known as Health Care Reform) that the Democrats will get their asses kicked at the polls come November I’ll give it to you in 3 letters: A.I.G.
It’s bad enough the the company is insolvent and taxpayers will never see a return of all the money we sank into that bottomless snake pit, but to actually pay more bonuses to the dumb mother fuckers that caused the implosion of both AIG and our financial system simply defies description. Up next will by Timmy Geithner hitting the airways talking contract sanctity. Marketwatch has the story:
In the midst of bonus season, the people deciding compensation policy at American International Group Inc. believe they’ve reached a deal. The majority of the controversial financial-products group at the company will take a 10% haircut on their bonuses in return for an early payout, as soon as next week. Read AIG bonus story in WSJ. Continue reading “Will someone in a position of authority PLEASE put a bullet in AIG’s head and stop both the misery and insanity”
This post is a personal indulgence. Though the Yahoo board is long gone and $30 puts a distant memory I’ll never forget “Quislingman”, Pete Frampton Live, Subprime Usury Scam, and the rest of the gang. I sometimes wonder what ever happened to the bean counter from Jersey who was recommending CFC to his brokerage clients. The difference between Benjamin Graham and that fellow was that Ben could actually spot an undervalued stock. Yahoo! Finance has the A/P story:
The government is charging Angelo Mozilo, the former chief executive of mortgage lender Countrywide Financial Corp., and two other company executives with civil fraud.
The Securities and Exchange Commission’s case also accuses Mozilo of illegal insider trading, an agency spokesman said Thursday. Continue reading “Breaking: SEC Charges Subprime King Angelo Mozilo with Civil Fraud”
Zero Hedge may have found us the answer in the Q1 OCC reporting (h/t: Russell):
The OCC discloses the TCE/RBC ratio for the top five banks, and one name in particular jumps out.
Yep, Goldman Sachs… Looks like Blankfein’s minions went from a TCE/RBC ratio of 4% to 1,056% in the span of one quarter! In fact, Goldman is so enamored with Interest Rate Swaps that it has almost the same notional outstanding as Bank of America, and more than Citigroup.
The thing to note, is that unlike both Citi and BofA, which actually are real consumer banks with a depositor base, Goldman is a consumer bank only in name (when is the last time you deposited your cash in a Goldman retail branch?). Continue reading “A possible explanation why the policymakers have funneled so much ca$h to Goldman Sachs through AIG”
Chris Dodd’s house of cards comes tumbling down……