(Update: 6/16/09: Fed Strongarmed Bank of America over Merrill Lynch)
I am happy to hear that US Bancorp’s CEO Richard Davis is still above ground and breathing. It is a sad day in Amerikka when I have to write words like that because I believe that people being taken out by “the system” actually happens here, AND people keep asking me about helicopters over my house.
On February 18, I wrote “Tarp 1 Was to Ease The Credit Crunch, Not So Much…” about US Bancorp’s CEO, who had come out of the shadows and explained that no matter if a bank needed the TARP funds or not, they were going to take them. Here is an excerpt:
But Davis was critical of the U.S. Treasury’s Troubled Asset Relief Program introduced last fall, saying that while the program was well intended, it has turned out to be “lousy.”
Created to encourage lending to small businesses and consumers, TARP started by shoveling tens of billions of dollars at the country’s biggest banks but soon was expanded to include banks of all sizes. Minneapolis-based U.S. Bancorp got $6.6 billion.
“I will say this very bluntly: We were told to take it. Not asked, told. ‘You will take it,’ ” Davis said. “It doesn’t matter if you were there on the first night and you were told to sign on the dotted line before you walked out of the office, or whether in the days that followed, you were told to take it.”
But by Tuesday afternoon, a U.S. Bancorp spokesman said Davis had misspoke, and meant that because the largest banks in the country took TARP money, U.S. Bancorp and others were forced to do so as well, for competitive reasons.
Last week Judge Napolitano spoke about the “exhortion” factor involved with the banks and the TARP Money.
Our Government Engaged In EXTORTION With Our Banks!
By Judge Andrew Napolitano
FOX News Senior Judicial Analyst
The Federal government committed extortion and they’re not being held accountable. What’s next? Listen to this: I recently met with the Chair and CEO of one of the country’s top 10 bank holding companies. His bank is worth in excess of $250 billion, has no bad debt, no credit default swaps, no liquidity problems, and no subprime loans. He told me that he and others were forced by Treasury and FDIC threats to take TARP funds, even though he did not want or need them.
“There is simply no authority in the U.S. Constitution for Congress to exercise the level of control it now seeks over private industry.”
The FDIC — with Treasury backing — threatened to conduct public audits of his bank unless his board created and issued a class of stock for the Feds to buy. The audit, which he is confident his bank would survive, would cost it millions in employee time, bad press, and consequent lost business.
He pleaded with the Feds to leave his successful bank alone. He begged his board to let him tell the Feds to take a hike. But they gave in. The Feds are now just a tiny shareholder, but want to begin asserting more and more control. This is a classic extortion: Controlling someone’s free will by threatening to perform a lawful act. (Blackmail is the threat is to perform an unlawful act in order to control someone else’s free will.) There are no exceptions in the statutes prohibiting extortion for government persons
This happened in September 2008, but the demands for more control are more recent. It sounds to me like Paulson, Geithner, Bernanke, and Sheila Blair have all read a biography of Benito Mussolini. I guess they skipped the last chapter.
There is simply no authority in the U.S. Constitution for Congress to exercise the level of control it now seeks over private industry. In fact, this level of control will wind up costing the businesses that took TARP (voluntarily or involuntarily) money since they will lose key employees who will go to work elsewhere and because the reporting requirements will take time and time is money. The Constitution basically says that if the government wants to take time or freedom or money from someone or something, it must sue for it. It cannot just give itself the authority to do so via legislation.
Everbody has read the Stuart Varney piece in the Wall Street Journal, but here is the actual event that editorial was based on:
Inside Obama’s bank CEOs meeting
From the White House, there were five principal attendees: chief of staff Rahm Emanuel, who arrived a few minutes late, Treasury Secretary Timothy Geithner, Council of Economic Advisers chairwoman Christina Romer, senior adviser Valerie Jarrett and director of the National Economic Council Larry Summers. Uncharacteristically, Summers said almost nothing, and it appeared to one participant as if he had been told to remain silent.
To break the ice, JPMorgan Chase CEO Jamie Dimon offered Geithner a fake check for $25 billion, the amount of Troubled Asset Relief Program money that the company has accepted. Although many of those in the room laughed, Geithner didn’t keep the check.
JPMorgan’s Dimon spoke first. He began by complimenting the president on the economic team he’d assembled. And he said his industry needs to explain more directly to the American people that the economic recovery plans are already working. Dimon also insisted that he’d like to give the government’s TARP money back as soon as practical, and asked the president to “streamline” that process.
But Obama didn’t like that idea — arguing that the system still needs government capital. The president offered an analogy: “This is like a patient who’s on antibiotics,” he said. “Maybe the patient starts feeling better after a couple of days, but you don’t stop taking the medicine until you’ve finished the bottle.” Returning the money too early, the president argued could send a bad signal.
Several CEOs disagreed, arguing instead that returning TARP money was their patriotic duty, that they didn’t need it anymore, and that publicity surrounding the return would send a positive signal of confidence to the markets.
Bank of America CEO Ken Lewis cracked a joke at the expense of his peers who’d lavished praise on the administration: “Mr. President,” he said, “I’m not going to suck up to Geithner and Summers like the other CEOs here have.” Lewis also urged the president not to paint all the banks with the same broad brush.
The president argued that’s not what the White House was doing. Indeed, earlier the same week, Obama said at a nationally televised news conference, “The rest of us can’t afford to demonize every investor or entrepreneur who seeks to make a profit.”
As the meeting wound down after nearly an hour and a half, the CEOs hustled out to live television positions on the White House grounds, where many gave interviews to CNBC.
It had been a landmark day in the history of American capitalism. Unbeknownst to the financial executives, General Motors CEO Rick Wagoner was also on Pennsylvania Avenue that day, meeting with Obama’s auto bailout task force. Although the finance CEOs got a meeting with the president, Wagoner saw only Obama’s senior advisor Steven Rattner at the Treasury Department. During the meeting, Rattner demanded Wagoner’s resignation.
It had been a tough day for CEOs in the nation’s capital.
It is the common consensus among us little people that Rick Wagoner was made an example of to other bailed out executives to tow the line or else. It is also not that hard a jump to say it was two birds with one stone considering Frederick Henderson’s background; “Meet The New CEO Of GM“.
Is there a congressperson or senator out there that is willing to bring even thinking about bringing impeachment proceedings against this usurper-in-charge for any number of bad judgement calls starting with not “allowing” banks to repay TARP money as was promised to us, the taxpayers, way back when?
The Judge with Glenn Beck:
Diamond, I fear that the same senators and congressmen that would not bring up the eligibility issue are the same who would never bring up impeachment as an option.
Also I have read many times that since he is not eligible to hold office he can not in fact be impeached, he would have to be arrested. Who would do that? I am afraid that at this time it is only the military that can intervene. Will they?
I guess if the TPTB start to realize what a liability he has become for them they could find a way to get him out, but I do not hold much hope for our senators or congressmen or the Supreme Court to find their moral compass and do what they should have already done.
another fine mess TPTB have gotten us into….
Kathy is correct – how can you impeach a usurper? The ones we can impeach are Congress. Sounds like a good start to me!
Anybody know how to start the process?
We will have to impeach the great usurper because his citizen issue will never be settled. I still believe the great usurper’s private tea with 8 of 9 justices went something like this…”hey yo justices everyone is out to get me. They want me to prove I am not anti-American. Hey yo justices can ya make this headache go away for me.” The justices said “sure man.” “Yup we can hep ya out just the way we did Bush 2… cause ain’t that what the supremes are for.” The justices were trying to get down to the gangster’s level…Yo Adrienne! remember that line that is basically the tone in that private tea cause you know it wasn’t for practicing the oath of office!
There is a program getting started at http://www.statute1301.com to send post cards, letters and phone calling to Jeffrey Davis who is the Attorney General in DC daking for Quo Warranto or ” Obama,show the proof “that you are eligible to be POTUS. He has the authority to demand BO hands his credentials over. They are asking everyone to mail a post card a day for 30 days.
That post was supposed to read “asking” for Quo Warranto. Sorry
Link’s been disappeared, Nancy.
Eligibility issue a flashpoint for America.
Hopefully this stories will be what will bring him down. I am still not sure if the Congress or Supreme Court will do it, but if they are given the green light by TPTB then maybe this nightmare will end.
Of course when he is removed ( I am feeling optimistic today) all the tangled webs of his deceit will have to be sorted out as well as undoing all that he has signed. While that is certainly better than having him in office, it will still be a very difficult time for our country. The fight will not be over with just having him removed. But that is the best first step.
Here goes the red flag! This is what TPTB are going to use to declare martial law and suspend the Constitution. The WND article keeps referring to the chaos it will cause and how no one will know what laws are constitutional. This is what they’ve been planning to use all along to whip the public into a fighting frenzy!
We have to be very careful how we react to this!
I have written so many emails to J McCain on behalf of O’s being a traitor while overseas and yet to hear any response to me or through the media. What has he threatened our GOOD politicians with? It has to be something or someone would come forward.
Does it strike anyone that too many of them (reps) are totally silent. We are only hearing from Rove, Newt, and Dick Morris via Foxnews. No one is standing up–why?
How dare he degrade our country at all-to anyone–if him and that witch he is married to hate America–leave forever and take G Soros and the criminals they hang with. I swear this is worse than Al Capone and Elliot Ness. This is the real deal and its a nightmare.
Since there has not been any Chaos up to this point, who will be the ones to start it. I think we have all been very careful and I would never want to give anyone a reason to turn this into a crisis, I just am wondering why now are more people paying attention.
My point was this is the best kept non-secret in the country, make that the world. As long as people do not take to the street and keep working thru the legal system more and more people will start to take a look and question and at some point it will have to be answered, at least that was my take on the story.
This can not go away because if it does than all is lost.
Kathy, Obama seemed to be greeted “like a rock star” in Iraq by the troops…
Do you think they were “chosen” like the Chosen One”????
I was surprised by seeing how he was greeted but I am sure he must of had some supporters there.
I guess we have all seen the other videos where the military was less than impressed to see him. Or maybe they were just being respectful to the office and not the man.
Kathy @ April 8, 2009 at 12:19 pm
That’s the problem – we aren’t getting violent for them yet, so they need to stir up the “other” side with the racism crap. If the Patriots won’t take the bait, then they’ll agitate the faithful.
I wish that it was as simple as having Obama removed….but that is just the first layer of an infectious desease that is making our country sick and weak. It’s gone beyond a simple cold to flesh eating bacteria…..and if it’s not stopped soon our country will never be able to pull through it….and the infection runs so deep in all forms of government, where do you start? Knowing which medicine to give and how much can make all the difference but make a mistake and it can be deadly.
I understand what you are saying Grail Guardian but all we can do is not take the bait if the other side does what are our options?
Maybe I am being naive but I believe as more time goes by more of the faithful are rethinking and could there be a chance that they, at least not in mass,will not take the bait either.
Trust me I do not claim to have the answers and I do more praying on this than anything else, if that is not for others I understand. But for me it helps me clear my head and get up each morning and look for more answers. At this point other than just going crazy what are we suppose to do. I like all of you have to work we have to face each day and our obligations , what I can do I do gladly but what is out of my hands I turn over to prayer and hope for guidance.
what goes up must come down
We need less government. We need less taxes.
How did this idiot Obama become our president?
I didn’t vote for him.
People in America are truly the most stupid on earth.
This president is going to destroy our standard of living.
It’s too late my fellow Americans. We deserve what we are headed for. No guts!
How does Obama get away with not obeying the Constitution? How does he break the laws or ignore them and no one calls hime out on it?
Because there is not one single opposition party member that is willing to stand up and say enough! I am still waiting for the Republicans to do something as they are the only ones at this point that can do anything about this in the Congress.
I fear we are definitely headed toward dark waters now that Bambi has at least 20 czars standing between him and us.
Sounding more and more like a dictatorship.
This guy Obama is getting worst each day! Health care and bailouts are a joke!!! Fix our economy and eject 5 million illegals. Do it immediately or we’ll need to get a real leader like Bush back in office. Who was stupid enough to have voted for this inexperience crooked Chicago politician? He only cares about 12 million stupid people that don’t have insurance. They wouldn’t make or keep the doctors appointments anyway because they sleep all day — Get A Clue Obama… They go to emergency rooms because they are open 24/7 and no appointment is needed! I didn’t vote for him either because my IQ is too high!!!
“jn bulman says:
June 6, 2009 at 11:59 am
How does Obama get away with not obeying the Constitution? How does he break the laws or ignore them and no one calls hime out on it?”
He’s just following the example set by Bush II.