Saturday, November 1, 2008

Paying crooks.

From Mish's Blog:

"House Financial Services Committee Chairman Barney Frank said banks using cash from the $700 billion U.S. rescue plan for bonuses, acquisitions and other purposes unrelated to lending are in ``violation'' of the law.

"I am deeply disappointed that a number of financial institutions are distorting the legislation," Frank, a Massachusetts Democrat, said in a statement today. "Any use of these funds for any purpose other than lending -- for bonuses, for severance pay, for dividends, for acquisitions of other institutions, etc. -- is a violation of the terms of the act."


So your financial adviser completely loots your account.

Sorry, he says. But you better put more money in your account, or you'll be broke.

So you give him more money.

And he loots your account.

And he tells you to put more money in your account, or you'll be broke.

So you give him more money...............

And he loots your account, again.

Do I have to point out that he'll keep doing that until you say no?

10 comments:

Quimby said...

My Dunc, much writing lately, keep up the good work.

BilboBend said...

When Suterra's CEO read the Bulletin article, he went to the City and told them they were way premature with their announcement. Of course the City couldn't stand the thought of the deal not going together after it was in the paper, so they started offering incentives, and after they'd given away the sun, the moon, and the stars Suterra agreed to the deal.

*

And this my friends is a loving BULLSHIT bedtime story for your milk & cookies, ... by our resident PUSSY, ... do you actually believe this shit PUSSY?

YOU know what I know, and that is after LES SCHWAB everyone would get the same deal, and that deal is the same deal that Les Schwab got which was basically over $16M in improvement to their infrastucture and site.

Over a dozen times I have told the PUSSY to post the 'letter of intent' between the city & suterra, and the pussy has refused to post that letter in which time line is clear and its rather the clear that the city is tepid at best, and suterra the agressor just like that which led to the infamous les-schwab sales agreement.

YES isn't that CUTE, BEBB deletes all the REAL INFO on SUTERRA, and some masked bandit called LSMFT posts this new bed-time fable, and BEBB will leave this up, cuz its the new story the BULL wants all to believe.

Like I said about a week ago, the silence was because folks hadn't gotten their story straight, and now it appears they have a new story.

But for the correct time-line, and to see who actually was the aggressor and gave away the store, its all in the letter of intent, and its location was posted on bb2 comments last week.

The PUSSY has always from day-one here only had ONE SINGLE AGENDA, and that is to BASH KURATEK, he never mentions HOLLERN, and at the end of the day always does MEA-CULPAS for city-hall. Why not, he knows all campaign and power comes from HOLLERN, and he knows that if someday he gets his wet twat in the city-hall, he has to work with these people, hell he even agrees with RDC(BEBB) on most right-wing issues over on Dunc's site, BP is a chameleon, ... that said keep the shit flowing BP.


OK boyz here is the time line,


July 18, suterra send their letter of intent to city,

July 23, 2008 bulletin prints story about suterra buying juniper ridge

july 25, 2008, city responds to suterras letter

All actions, deal and force came and were initiated by sutterra, the july-25 document is 100% city covering its arse.

*

So there you go the facts that are public, suterra initiated the deal, and stated their intentions on take it or leave it deal July 18, craig cooper senior vp of suterra, then july 25, 2008 eric king, mgr of bend formally responds,

July 23, somehow 'imagine that' the BULL hears of the offer and prints the story,

Now today the BIG PUSSY is telling us that the city initiated the deal,

BEBB has deleted all the above from is site, and replaced it by the bedtime story, and then the PUSSY brings it over here to feed US.

November 1, 2008 4:37 PM
Anonymous Anonymous said...

http://www.indybay.org/newsitems/2008/10/24/18546160.php?show_comments=1#18547071

Because everyone in BEND deletes everything on this subject, all the info about the letter-of-intent, from july 18/25, and the original BULL story about suterra on 7/23/2008 can be found at the above site, where people don't selectively delete and create their own reality.

Leitmotiv said...

It's the same thing that happened with FDR during the depression. He loaned big corporations some money to spur the economy, and they just pocketed it.

Michael said...

http://seekingalpha.com/article/103202-the-shallowest-generation?source=front_page_editors_picks

Read the comments after the article. Hope can be found there.

Bilbobend is passionate. And colorful.

BilboBend said...

Why the City of Bend is financially insolvent.

[ DUNC, here's a good overview of why Bend is BK, and how the books are cooked, and why the city just created the SDC-DEFERRAL FUND, so they could book non-performing debt as an asset, to keep the general fund positive. THIS CITY IS FUCKED. All because of the Les Schwab Welfare Package @ JR. ]

www.ci.bend.or.us/city_hall/meeting_minutes/docs/IS_BURA____Suterra_102208.pdf

[ This budget is a MUST READ ]

Original budget included interfund transfers to pay SDCs for the Les Schwab property.
Payment of SDC’s has been deferred, and also the original $180,000 General Fund loan
will no longer be repaid this fiscal year

*

This is something we never thought about. The SDC-DEFERRAL of a few months ago promoted by the BULL, was never about developer deferral, and building, it was about legally creating $10M pool of non-performing debt (LesSchwab) that could be booked as a asset. Without this 'cook of the books' the city would today have a negative 'general fund'.


BURA has done two interesting things in their budget, they have booked $10M of JR sales that never happened, when in fact on the first sale all the money went to KURATEK, and the new sale Suterra, doesn't even cover infrastucture cost.

RDC said...

Duncan,

Actually Frank is not correct there is not anything in the law that was passed that prevents them from using the money for other purposes, as much as he wants to claim that there is.

Now I agree that the financial institutions should not be funding the level of bonuses that they are proposing. Even here there is nothing in the act that prevents them from paying bonuses, only limits the tax deductable status of the moeny paid in some cases.

As far as the dividends and the purchase of weak institutions, that, I believe is a valid use of the money. First of all what the government is doing is the equivalent of a preferred offering. That is that they collect a 5% dividend on the moeny they put in (growing to a 9% dividend). If you remove the ability to pay dividends then public investors will flee those stocks. That is exactly the opposite of the intent of the government program which is to kick start the recapitalization. THe money the government has put in is insufficient for that purpose and unless the government wants to put in a lot lot more then they need public investors to put money in as well. THe way to do that is to keep the stock price up at the point where they can continue to issue additional shares, including preferreds. Actually they should allow the public to buy at the same terms as the government money. It is actually very very good terms the government got.

As far as picking off the weaker companies, is that not also what the government wants. It is always better for a strong bank to absorb a weak bank when they are approaching failure. Exactly the cases that have occured so far.

So while the bonuses should be cut bakc there is not a thing wrong with the dividends and the acquisition of weaker banks (the ones that have occured so far have been assisted by the FDIC, think National City) Would you rather have all of the stronger banks tell the FDIC that they can not cooperate because they accepted the recapitalization funds the next time the FDIC needs someone to take over a failed bank.

Political posturing at its best.

RDC said...

BEBB deleted that stream because you were making all kinds of conspirancy claims without offering one bit off support.

You were claiming bio-weapons development, government relationships with Washington and all kinds of other extravagent claims and the only thing real that you posted was articles about the Brown Moth Sparying down by the CDFA.

Now if you want to discuss issues on the health effects of that program then the postingins would have remained, or if you had posted any support for the attacks you were making on the company, it would have remained, but you did not. So BEBB warned about the behavior and when you continued the entire stream was deleted.

RDC said...

The last post I made was in response to Bilbobend's post.

So when I say you it is Bilbobend to whom it is directed.

bruce said...

Dunc, feel free to edit the dumb fuck line out.

Thanks,

Bruce

RDC said...

One additional note. The banks are doing plenty of new lending. However, most of it is in the form of companies drawing down already existing lines of credit. Billions of new debt in this credit lines drawdowns have occured during the last couple of weeks.