Real Economy Project

Financial Crisis Inquiry Commission Report Due

by Mary Bottari — January 26, 2011 - 2:27pm
  • Topics: Banking, BanksterUSA, Economy, Real Economy Project

    • Word is beginning to leak out about the contents of the Financial Crisis Inquiry Commission's (FCIC) final report, a 576-page official analysis of the causes of the crisis. The Commission, which got off to a slow and rocky start, managed to hold 19 days of hearings and interviewed 700 witnesses. According to the New York Times, the report puts blame where blame is due, on reckless Wall Street gambling, but also on the colossal failure of government.

    Booya! Latest Wall Street Innovation: Twitter Trading

    by Mary Bottari — January 19, 2011 - 10:27am
  • Topics: Banking, Real Economy Project

    • Two years after a catastrophic financial collapse and six months after the passage of a Wall Street reform bill, astonishing tales of volatility in the market are all too common. If you think inexplicable flash crashes are worrisome, brace yourself for the next big financial "innovation" –- Twitter Trading.

    What Does Wikileaks Have on Bank of America?

    by Mary Bottari — January 14, 2011 - 10:06am
  • Topics: Banking, BanksterUSA, Real Economy Project

    • WikiLeaks founder Julian Assange is promising to unleash a cache of secret documents from the hard drive of a U.S. megabank executive. In 2009, he told Computer World that the bank was Bank of America (BofA). In 2010 he told Forbes that the information was significant enough to "take down a bank or two," but that he needed time to lay out the information in a more user-friendly format.

    Recent new reports suggest that BofA is now moving into high gear on damage control, creating a "war room" and buying up hundreds of derogatory Internet domain names including BankofAmericaSucks.com and BrianMoynihanblows.com (referring to BofA's Chief Executive Officer).

    Before the big banks start calling for Assange's internment at Guantanamo, the question worth considering is what does Wikileaks have on America's largest bank?

    Obama Signals Break with Wall Street - Appoints JPMorgan Exec and Goldman Adviser to Top Jobs

    by Mary Bottari — January 7, 2011 - 8:43am
  • Topics: Banking, BanksterUSA, Economy, Real Economy Project

    • Today, with unemployment in almost the double digits and foreclosure unabated, President Obama decided that America needed more of the same. The President announced the appointment of JPMorgan Executive William M. Daley as White House Chief of Staff, replacing Rahm Emanuel. Tomorrow, news reports indicate that he will announce that Goldman Sachs adviser Gene B. Sperling will be appointed head of the National Economic Council, replacing Larry Summers.

    About Daley the Center for Public Integrity reports:

    At JPMorgan, Daley’s portfolio has included supervising government lobbying for a bank with $2 trillion in assets that has fought efforts to limit the size of megabanks. Daley co-chaired a U.S. Chamber of Commerce commission that urged the federal government to revise the 2002 Sarbanes-Oxley corporate reform law and protect corporate auditors from lawsuits and investigations.

    BankofAmericaSucks.com

    by Mary Bottari — January 5, 2011 - 10:05am

    According to the publication Domain Name Wire, Bank of America (BofA) is buying up hundreds of domain names such as BankofAmericaSucks.com and BrianMoynihanBlows.com. The megabank is prepping for the possible release of damaging information from Wikileaks founder Julian Assange. Assange is promising to unleash a cache of secret documents from the hard drive of a big bank executive. In 2009, he told Computer World that the bank was Bank of America. In 2010, he told Forbes it was significant enough to “take down a bank or two.” The New York Times recently reported that BofA is now moving into high gear on damage and spin control tasking dozens of people to a Wikileaks "war room." BofA is already under the gun, defending itself from multiple lawsuits demanding that the bank buy back billions worth of toxic mortgages it peddled to investors. The firm is also at the heart of the robo-signing scandal, having wrongfully kicked many American families to the curb. Assange may have more information on the controversial merger of BofA and Merrill Lynch, which spawned fraud charges. Or he may have more dirt on BofA subsidiary Countrywide. Countrywide's Angelo Mozilo has been the subject of insider-trading charges. Stay tuned and learn more about these scandals in our Sourcewatch profile of America's largest bank.

    Main Source: 
    Domain Name Wire, December 20, 2010

    Full-Catastrophe Banking in 2011

    by Mary Bottari — January 3, 2011 - 9:13am
  • Topics: Banking, BanksterUSA, Economy, Real Economy Project

    • With a $4.7 trillion dollar bailout under their belts with no harm done to their billion-dollar bonuses, don't expect Wall Street bankers to be chastened by the 2008 financial crisis. Below we list eight things to watch out for in 2011 that threaten to rock the financial system and undermine any recovery.

    1. The Demise of Bank of America

    Wikileaks founder Julian Assange is promising to unleash a cache of secret documents from the troubled Bank of America (BofA). BofA is already under the gun, defending itself from multiple lawsuits demanding that the bank buy back billions worth of toxic mortgages it peddled to investors. The firm is also at the heart of robo-signing scandal, having wrongfully kicked many American families to the curb. If Assange has emails showing that Countrywide or BofA knew they were recklessly abandoning underwriting standards and/or peddling toxic dreck to investors, the damage to the firm could be irreparable.

    A Cheery Holiday Message from Bankster: Death Eaters on Wall Street

    by Mary Bottari — December 21, 2010 - 2:21pm
  • Topics: Banking, BanksterUSA, Economy, Real Economy Project

    • Today's Wall Street Journal has a stunning exposé on a publicly-traded company called Life Partners Holdings. Are you ready for this? Life Partners creeps around asking the unemployed, the elderly and the sick (especially people with HIV/AIDS) to sell them their life insurance policies for cash. Then they bundle these policies into securities and sell them to vultures -- oh, I am sorry, "investors." Then the "investors" sit around and wait for people to die -- the sooner the better for the purchasers of these death bonds. The future of this industry "looks bright," chirps National Underwriters.

    Reminds you a little of those Death Eaters in Harry Potter, doesn't it?

    Trapped in Bank of America Hell

    by Mary Bottari — December 15, 2010 - 10:13am
  • Topics: Banking, BanksterUSA, Economy, Real Economy Project

    • Are you one of the lucky ones? Have a good job, live in a nice neighborhood, enjoy your cozy home? Think foreclosure only impacts the reckless or the unemployed?

    Think again.

    George Mahoney worked and saved and built his cozy colonial-style home in Lynnfield, Massachusetts in 1981. There, he and his wife raised three lovely daughters. For many years, the Mahoneys paid down their relatively small mortgage with their local bank -- a division of Bank of America (BofA). In 2007, they took out a second mortgage to help a daughter start a small business. Two wage earners, a great credit record -- the loan was a breeze. That was when the trouble began.

    About a year after getting the second mortgage, BofA started notifying George that his payments were late. Soon they jacked his credit card interest rates from seven percent to twenty-eight percent. Next, they ruined his credit record. His Sears card dropped from a $10,000 limit to a $500 dollar limit. Then one day in the fall of 2009, BofA initiated foreclosure on the house he had built and owned for 28 years.

    The only problem? The Mahoneys had never missed a single payment on either their first or second mortgage.

    Quietly Ticking Time Bomb in Fed Data

    by Mary Bottari — December 10, 2010 - 8:40am
  • Topics: BanksterUSA, Economy, Real Economy Project

    • Last week, the Federal Reserve was finally forced by law to release some (not all) of the details of its back-door bailout of the global financial system. The Fed data focuses on the emergency lending programs initiated in 2007/2008, but it also includes data for the Fed's more recent purchases of mortgage-backed securities (MBS). These later purchases represent the real risk for taxpayers in the Fed's continuing bailout activities, but have received the least coverage in the mainstream press.

    Obama Economic Team Passes Out the Kool-Aid

    by Mary Bottari — November 3, 2010 - 8:43am
  • Topics: Banking, BanksterUSA, Economy, Real Economy Project

    • It’s the day before a hotly-contested national election, where it appeared the rabble was well positioned to deliver a colossal spanking to the elites who have for too long ignored their plight, so what does Team Obama do?

    They have a press conference to talk about their eagerness to complete the Korea Free Trade Agreement negotiated by President Bush. "The president has long said we want to try and address the outstanding issues regarding the Free Trade Agreement in order to bring it forward for approval," said Mike Froman, Obama’s deputy national security advisor for international economic affairs. “[W]e're going to put every effort into achieving ... an acceptable agreement, a satisfactory agreement, by the time the president comes to Seoul," he told a news conference on Monday.

    Are these people nuts?

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