Sociopaths In Charge Of Banks And Government

Sociopaths In Charge Of Banks And Government

(H/T NamVet)

William Black, Associate Professor of Economics and Law at the University of Missouri, Kansas City, on the S&L crisis, the current banking situation, and Ben Bernanke’s part in the whole meltdown.  I’m still waiting for the FBI to finish their investigation of Wall Street.  You’re not holding your breath are you?

Pay attention folks and watch the series.  Mr. Black explains how a trillion dollars in losses are not being reported so as to allow profits to show and bonuses to be paid.  Would you also like to know the four part recipe to making a mountain of cash on Wall Street and ripping off the taxpayer at the same time?  Want to hear how the reforms from the S&L crisis have actually made our current situation worse?  Did not think so.  TOO BAD!  Watch and educate yourself on this issue.

The recipe for Banks:

  1. grow like crazy;
  2. make deliberately bad loans that aren’t going to be repaid, (can charge higher interest rates);
  3. have extraordinary leverage, (borrow alot and have very little capital);
  4. (Fraud all by itself) don’t put on loss reserves in your accounting books (shows up as massive profit).

Part 2: Why the Obama administration is so weak on economic reform and recovery. Geithner was a failed bank regulator. Pay attention here folks – Bernanke appoints Patrick Parkinson; the same name that filleted Brooksley Born when she “wanted to regulate credit default swaps…” back in the late ’90s. More info on Brooksley – Brooksley Born Takes On The Big Boys And We All Lose.

Part 3:  The continuing cover-up of the unreported losses by using red crayon math accounting practices.  Mr. Black explains that there is “no accident that there are no indictments, much less convictions of the senior insiders that drove these liars loans”.  This particular crisis is at least 30% greater than the S&L crisis and we have less than 1/6th of the resources used then applied to this crisis.  He also covers the the upcoming financial reform legislation, the silliness surrounding the bills, and the fact that the only entity that hates consumers and loves banks more than the Treasury is the Fed.  Imagine that.

Part 4:  What William Black would say to Obama if he ever actually called Mr. Black.  This segment also includes Mr. Black’s ‘Top Ten Ways To Crack Down On Corporate Financial Crime’.  He points out that Obama is part of the problem in the recovery and re-regulation crisis because he is such a pantywaist on the issues while allowing Geithner and Summers to run us into financial oblivion.

Part 5: Solutions to the crony capitalism thriving in Washington and New York.

For those that would like more information, check out the related links at the bottom of the post. It’s a tad bit scary to see all those posts next to each other and they are just the tip of the iceberg.

Beck, 2.11.2010: Greece, The Coming Insurrection, & “PIGS” Are Us

“Financial Egghead” Edition – Glenn interviews Damon Vickers of Nine Points Capital Partners, Brian Dougherty, Sen. Editor of Reason Magazine, and Niall Ferguson, Professor of History at Harvard, speaking about the current economic crisis in europe. (PIGS = Portugal, Ireland, Greece, Spain)

Part 2, PIGS are us:

Part 3, Student of History – history of the end of the Soviet Union:

Part 4, The Coming Insurrection:

Part 5, Sovereignty:

Part 6,

Rahm Emanuel At The WSJ CEO Council

WSJ does a CEO Council every fall in Washington, D.C, and this year is no different.

Welcome to the 2009 WSJ CEO Council

Carlos Slim, Rupert Murdoch, Ratan Tata and Christina Romer are among the speakers slated for The Wall Street Journal’s CEO Council Nov. 16-17. More than 100 CEOs gather at the Four Seasons in Washington, D.C., to discuss how to “rebuild global prosperity” and develop a set of priorities for the economy, education, the environment and health care. Check WSJ.com for updates, including video.

Last year the resounding issue that Americans were concerned about was the economy coming in at a whopping 77%, but there still is no help on the horizon for small businesses.

It is amazing to me to watch Rahm Emanuel believe his own rhetoric about not wanting to be involved with banks or car companies, and about setting regulation and getting out of the way of the private sector after everything that has been done in the last year, and everything that Barney Frank is about to unleash on the financial sector.

Remember this?

“You never want a serious crisis to go to waste. An opportunity to do things you think you could not do before…”

Rasmussen Reports On Current Economic Sitution

21 straight months of job losses.

62% of Americans believe that their childrens lives will not be better than theirs.

Are we all wrong, or is it because we don’t get to use the federal credit card every time we or our friends get into trouble?

Ready to flip this Congress and White House back to fiscally responsible Americans?

Ready to get rid of The Federal Reserve and Federal Reserve Notes?

Ready to make this government live within it’s means?

Ready to stop the trainwreck that the two-party system controlled by progressive socialists has put us on?

Can We Impeach Obama Yet?

(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:

From Politico:

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.

<snip>

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:

This IS The Center Of The Web: Meet The Pilgrim Society

This IS The Center Of The Web: Meet The Pilgrim Society

(Author’s Note: The law firms and world governments are checking in from time to time to see what’s new here at the Monster….surprise…is not the Internet a wonderful thang?)

The more I dig, the more I find.  My readers already know the cast of characters, or as I like to call them; America’s Aristocracy, and I am sure we will be running across more as we start to investigate the power elite.

Remember when I said that the Bilderberg Group was a red herring?

From Wikipedia:

The Pilgrims Society, founded in 1902, is a British-American society established, in the words of American past-president Joseph Choate, ‘to promote good-will, good-fellowship, and everlasting peace between the United States and Great Britain’. Over the years it has boasted an elite membership of politicians, diplomats, businessmen, and writers. It is notable for holding dinners to welcome into office each successive U.S. Ambassador to the United Kingdom and each new British Ambassador to the United States. The patron of the society is Her Majesty Queen Elizabeth II.

Office holders, as of 2006, were:

  • President – Lord Inge
  • Chairman – Sir Robert Worcester KBE DL
  • Honorary Secretary – Mrs Tessa Wells
  • Honorary Treasurer – Ian E Barlow FCA

Seems pretty innocuous, right?  Then why do so few people know about a society that is so old and has so many wealthy, powerful, influential people in it?  And this society is not the only one.  You are not going to have to dig to see the correlations between then and now.

From Institute For The Study Of Globalization and Covert Politics:

Most people have at least vaguely heard of the “Eastern Establishment”. This is a reference to a group of people in the Northeast of the United States which to many appears to wield a disproportionate amount of influence over the nation’s politics. This influence, which goes back even further than the days of John D. Rockefeller, Sr. and J. P. Morgan, Sr. has been illustrated by the fact that a great number of individuals working in the senior positions of government have come from a number of New York-based banks, insurance companies and law firms, only to return to this group of banks and businesses after their public term came to an end. Often these individuals served in more than one administration, and together with a number of other peculiarities – think of controversial policies, suspected cover ups, ignored conflicts of interest, lack of media attention, etc. – some people have become suspicious of what at times appears to be almost like a permanent government. A 1962 newspaper column voiced these suspicions best:

“There is an establishment in the United States. The word “establishment” is a general term for the power elite in international finance, business, the professions largely from the Northeast, who wield most of the power regardless of who is in the White House.

“Most people are unaware of the existence of this “legitimate Mafia.” Yet the power of the establishment makes itself felt from the professor who seeks a foundation grant, to the candidate for a cabinet post or State Department job. It affects the nation’s policies in almost every area.

“For example, the Council on Foreign Relations in New York City, subsidized by Rockefeller interests since 1927 boasts a membership of at least 90 per cent establishment figures.” It is a social elite centered around a number of universities, a group of banks, insurance companies and law firms, and a group of influential, privately-funded foundations and think tanks.

<snip>

  • It is a social elite centered around a number of universities, a group of banks, insurance companies and law firms, and a group of influential, privately-funded foundations and think tanks.
  • It is centered in and around New York, even though at any moment a large portion of this group is active within the government and non-government institutions in Washington.
  • There is a close relationship with the British aristocracy and the British royal family via diplomatic officials, individual contacts, and private clubs.
  • The dominant religion is Protestant, in particular the Episcopal (Anglican) and Presbyterian churches.British branches of Freemasonry and Templar orders are popular.
  • This is the group behind the globalization process and members are generally great supporters of the United Nations and the sustainable development movement.
  • Catholic and especially Zionist interests are not very much appreciated.

You probably heard of some of these points before and you may or may not agree with them. So how can we prove to you that this list is true? To do that we need to begin our discussion on the Pilgrims Society.

Pilgrims history
At the turn of 20th century a number of influential persons were interested in bringing the establishments of the United States and Great Britain closer together. The St. George’s

Official Pilgrims logo. “Hic et Ubique” means “here and everywhere”, apparently a reference to the idea that the United States and Great Britain should stand together side by side everywhere. The eagle represents the United States; the lion Great Britain.

Society in New York, the American Society in London, and the growing network of Anglo-American League branches in England (founded by a good number of later Pilgrims Society members), were seen as inadequate, so the idea arose to form a new, elitist society with branches in both London and New York. This became the Pilgrims Society, which organized regular meetings in such prestigious hotels as the Victoria, the Waldorf Astoria, the Carlton Ritz, and the Savoy.The idea of setting up what ultimately became the Pilgrims Society was first discussed by a number of Americans working in London. One of them was Lindsay Russell, a well-connected lawyer from New York, who regularly visited London in these days to set up his law firm Alexander and Colby. It was Russell who got together with General Joseph Wheeler (on a visit in London), General Lord Roberts, and Sir Harry Brittain. Together they organized the original meeting of the Pilgrims of Great
Britain at the Carlton Hotel on July 11, 1902. The meeting was a success and two weeks later Lord Roberts was elected president of the Pilgrims; Lord Grenfell and Admiral Hedworth Lambton became vice presidents. Two other vice presidents were Americans: Senator Chauncey M. Depew (Yale Skull & Bones 1856; lawyer to Cornelius Vanderbilt; member of J.P. Morgan’s elite Corsair Club, together with William Rockefeller) and General Joseph Wheeler. Sir Harry Brittain became secretary and the Archdeacon of London, William MacDonald Sinclair, was elected chairman of the executive committee [2].

At the July 11 meeting the attendants also discussed their plans of setting up a branch in New York. Lindsay Russell and Chauncey Depew went back to the United States and approached such men as Bishop of New York Henry Codman Potter, J. P. Morgan, Sr., and former U.S. President Grover Cleveland (a good friend of the Morgan family and employed by them since at least the 1880s). Under the leadership of Bishop Potter, the Pilgrims of the United States organized their first formal diner on February 4, 1903. The two societies have been organizing meetings ever since [3].

The Pilgrims network
Over the years more and more influential persons joined the Pilgrims Society, including virtually all the well known bankers, robber barons and their associates. Going through membership lists of the Pilgrims of the United States you’ll find the following families:

Astor DukeMellonStillman
Aldrich (Copeland) Du PontMeyerVanderbilt
Belmont GouldMorganWarburg
Baker Harkness PeabodyWatson
CarnegieHarrimanPyneWhitney
DillonLamont Reynolds*
DodgeLodgeRockefeller*
DrexelLoebSchiff *

Within the ranks of the British Pilgrims one comes across a great many Barons, Viscounts, Earls, Marquisses, and Dukes. Members of the British royal family have been patrons of the Pilgrims Society since its inception and regularly attend meetings. Here also well known banking families as Baring, Hambro, Harcourt, Keswick, Rothschild, Kleinwort, Loeb, and Warburg can be found, just as the heads of Barclays and the British managers of U.S. banks as Chase Manhattan and J. P. Morgan.

At the moment of this writing the membership list compiled by PEHI contains 1496 names, the vast majority of them from the United States (rough estimate: about 82% or 1227). Analyzing the biographies of these members doesn’t just show that the Pilgrims are part of the WASP elite – they are the WASP elite. The following banks, law firms, and insurance companies have been headed by Pilgrims Society members – usually for generations:

Banks

American Securities Corp. Federal Reserve Kidder, Peabody and Co. Morgan Joseph & Co. Inc.
Banker’s Trust Fidelity International Trust Kleinwort BensonNew York Savings Bank
Bank of England Fifth Avenue BankKuhn, Loeb & Co.N.M. Rothschild & Sons
Barclays Bank First Boston Corporation Lazard Oppenheimer & Co.
Barings BankFirst National BankLehman BrothersPaine, Webber
Blackstone Group US/UK Fourth Nat. Bank of N.Y. Loeb, Rhoades & Co. Rockefeller Center, Inc.
Bowery Savings BankGoldman SachsManufacturers Hanover Rockefeller Family & Ass.
Brown Brothers Harriman Gotham National Bank Marine Midland Salomon Brothers
Bullock Fund Hambro Mellon Bank S.G. Warburg
Chase National Bank Harriman National Bank J. P. Morgan & Co. Shearson Loeb Rhoades
Chase Manhattan US/UK International Banking Corp. J. P. Morgan Chase U.S. Trust Corp. of N.Y.
Chemical Bank Irving TrustMorgan Grenfell (UK) *
Citibank J. G. White & Co. Morgan Guaranty Trust *
Drexel & Co. J. Henry Schroder & Co. Morgan Stanley *

How many of these banks have we bailed out?  How many of these law firm names do you recognize as being visitors to this site?  What about AIG and all it’s backers in Congress?

Law firms and insurance companies

Breed, Abbott & Morgan
Carter, Ledyard & Milburn
Coudert Brothers
Cravath, Swaine & Moore
Davis, Polk & Wardwell
Debevoise & Plimpton
Milbank, Tweed, Hadley & McCloy
Herbert Oppenheimer Nathan & Vandyk
Shearman & Sterling
Sullivan & Cromwell
Winthrop, Stimson, Putnam & Roberts
AIG
Equitable Life Assurance Society
Metropolitan Life Insurance Co.
Mutual Life Insurance Life Insurance Co.
Lloyds of London
Royal Globe Insurance Group

Other businesses

ChryslerForbes * ICIR.J. Reynolds
Corning Glass WorksGeneral ElectricInt. Nickel Co. of CanadaRio Tinto
De Beers (Anglo-Am Corp) General MotorsJardine MathesonU.S. Steel
DodgeIBMPhelps-DodgeW.R. Grace & Co.
* other media companies not mentioned here

Looking at these tables, it is clear that the major banks of New York and London have been very prominent in the Pilgrims Society, closely followed by a group of influential law firms and insurance companies. A number of corporations have also had a considerable presence in the Pilgrims, comparable to some of the law firms and smaller banks. The most prominent of these might well be IBM, of the Watson family – but the founders and owners of Chrysler, Dodge, Jardine Matheson, W.R. Grace & Co., Reynolds, Corning Glass, and Forbes have all been Pilgrims. A vast range of other corporations have been represented by Pilgrims, but do not appear to have been part of the core of the Anglo-American establishment.

Tomorrow we will get into the media end of the web and you will see all the usual suspects.  If you cannot wait, go to the link to the Institute and read on.

For those of you looking for another source, see Charles Savoie below.  One can toggle the full screen on the upper right hand corner.

Meet the World Money Power by Charles Savoie

Time To Take Our Medicine

Ultimately, “we”, the American people are to blame for what is happening in our country right now because we have been a trusting, sleeping giant and we have allowed progressively more corrupt Congresses and White Houses to enact laws that are counterproductive to the American Way Of Life, and now it is time to take our medicine.  The only question now is which medicine are we willing to take; the recession medicine or the depression medicine.  Are we going to clean out Washington, or are we and future generations going to be standing in the unemployment line while Bambi turns our beloved country into a Fascist/Communist/Marxist dictatorship?

1 in 9 homes in America are being foreclosed on and the Bambi Administration wants to drown 8 of those homeowners in hopes of saving the 1 that could not afford their mortgage to begin with.  The MSM is not going to explain the tax increases that are coming in this manner, but that is the truth.

What is happening right now is the biggest paradigm shift in the way America operates since the Revolutionary War, and I for one, am not going to let Bambi and his tax evaders turn our country into the soup kitchen he likes to portray it as.  The very fact that Bambi TAUGHT ACORN how to strong arm banks into giving ninja loans to people that would never be able to afford them is enough for me to want to find every avenue possible to get this snake impeached right now.

The numbers do not lie; the housing market needs to bottom out naturally.  The people that cannot afford homes need to be culled from the herd, and the markets need to stabilize themselves.  Everything that the Bambi Administration is doing is going to destroy our economy.

For those of us that are numerically challenged, Glenn Beck explains housing prices since the beginning of the last century.  Also, keep in mind, there are reports of this – which I believe is a rumor and am following to see if there is indeed any truth to these reports.  If there is, impeachment and revolution are the requirement, not a situation where we discuss and ruminate.

VIVA LA RESISTANCE!!

This is where you want to be for all information pertaining to the Second American Revolution. Make sure to follow the link and read the whole article.

MsPlaced Democrat

The Great Tea Party Revolution!

The powers in Washington, DC think that the American people are happy with the porkulus bill and the mortgage bailout. The American taxpayer is taking to the streets this Friday in a countrywide Tea Party Revolt. What began with three cities has grown to many more: Washington D.C., Fayetteville, N.C., Pittsburgh, Penn., San Diego, Calif., Fort Worth, Texas, Tulsa, Okla., Oklahoma City, Orlando, Fla., Omaha, Neb., Atlanta, Ga., Wichita, KS and elsewhere in Missouri. More cities are joining in every day.

The American Taxpayer is not going to take this spending lying down any longer. If need be we will eventually march on DC in 2010 when we throw some of Congress out on their butts. We will not forget and we will react in kind in 2010. Washington, DC refuses to listen. They will hear us in 2010 and following elections.

We are disgusted by the “generational theft”…our kids and grandchildren will inherit this mess. As for Obama’s promise to cut the deficit he is leaving our oncoming generations, it is all smoke and mirrors. The only deficit he will cut is the one he says he inherited from Bush, the same deficit he helped create. There is no promise to cut the deficit he and Congress has already begun to create. That deficit has cost us $36 billion dollars for everyday that Obama has been in office.

Coming on top of this atrocious and ethically challenged porkulus bill is another spending spree, the Omnibus bill with a $400 billion dollar plus price tag. This spending bill will only cover costs of doing business until September. This “cost of doing business” bill contains 9000 pet projects (you know the earmarks that Obama says he wants cut from the budget).

We the people can no longer sit idly by while Obama takes our economic security to “ground zero”. We must continue our “tea party revolts” until we kick these people out of Congress and The Whie House. Congress and Obama are now on notice, your jobs are in danger…and we the American Taxpayers intend to take them from you!

TARP 1 Was To Ease The Credit Crunch?  Not So Much…

TARP 1 Was To Ease The Credit Crunch? Not So Much…

(H/T to Maggie’s Notebook)

Take a good look at this photo and remember this man as someone who decided to step out of the shadows and act like what we know Americans to be.

“TARP actually was designed to give solid banks like U.S. Bancorp some extra cash to buy weaker banks in the system.” – Richard Davis

Richard Davis, US Bancorp CEO

Richard Davis, US Bancorp CEO

U.S. Bancorp CEO Davis rips TARP

There is no “A, R or P” in the government’s Troubled Asset Relief Program, quipped U.S. Bancorp Chief Executive Richard Davis Tuesday morning in front of about 300 business people in Minneapolis.

“It’s just troubled,” the 50-year-old CEO said at the Thrivent Financial for Lutherans’ Business Leaders Forum. The forum invites executives to discuss how business and their principles intersect.

In his hour-long speech, Davis spoke about the economic crisis and the banking industry’s role in that crisis. But he kept the mood light, calling himself a “banker dude” and “Christian guy,” and at one point revealed that back in high school, he had been fired from his first job, at Toys “R” Us.

Davis also said banking remains a critical part of society, despite its current troubles.

“Bankers are dream makers,” he said. “We don’t make anything. We don’t build anything. We don’t fix anything. We don’t break anything. We get behind everyone who does.”

Some very profound words and very frightening words at the same time.  When Obama tries to nationalize the banking system and create an even greater chasm between those that CAN HAVE and those that CANNOT HAVE, we will be on the brink…

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.

Does that statement surprise anybody?  One must assume the corruption is layers and layers deep until someone like Richard Davis speaks out and blows the whistle.

Davis went on to say in his talk that while government officials marketed the program as a way to entice banks to lend again, TARP actually was designed to give solid banks like U.S. Bancorp some extra cash to buy weaker banks in the system. U.S. Bancorp did just that late last year when it acquired the assets of two failed banks in California, Downey Savings and Loan and PFF Bank & Trust.

Now what was I saying for the last umpteen months?  The banks used the money to buy each other and consolidate their power.

“We were told to take it so that we could help Darwin synthesize the weaker banks and acquire those and put them under different leadership,” he said. “We are not even allowed to mention that. … We were supposed to say the TARP money was used for lending.”

Told to lie; by whom exactly?

But Davis is talking about it now, he says, because he and others oppose current and future strings attached to the program. Davis didn’t detail those strings, but he said he and some peers intend to voice their opinions to Washington, D.C., soon.

“Now they’re punishing you for having the capital,” he said, adding that he refuses to stand by and let his company become “collateral damage” in an attempt to nationalize the banks.

And here are some words of wisdom…

Near the close of his speech, Davis suggested that what the panic-stricken world needs more than ever now is a little bit of courage and some faith that it will get through this dark period.

“Perhaps what we should do is check ourselves and say, ‘OK, it is tough.’ What can we — any two of us, any five of us, any 200 of us — do to improve the outcome of this difficult circumstance,” Davis said. “And by the way, where’s the faith? … Where’s the belief that something is going to turn here and we might actually have a chance?”

Ladies and Gentlemen; we make our path, not Nancy, Harry, Bambi, Chris or Barney even though they are trying to enslave us and future generations.

What are we going to do, what are you willing to do, and what was the payoff for the Republicans to help the Democrats put Bambi in the White House?

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