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kieblera5
Penny Hoarding Member
USA
859 Posts |
 Posted - 10/16/2008 : 15:07:21
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Full story at: You must be logged in to see this link.
Forgive me if this was already posted and I just missed it. 
quote:
WASHINGTON: The chief executives of the nine largest banks in the United States trooped into a gilded conference room at the Treasury Department at 3 p.m. Monday. To their astonishment, they were each handed a one-page document that said they agreed to sell shares to the government, then Treasury Secretary Henry Paulson Jr. said they must sign it before they left.
The chairman of JPMorgan Chase, Jamie Dimon, was receptive, saying he thought the deal looked pretty good once he ran the numbers through his head. The chairman of Wells Fargo, Richard Kovacevich, protested strongly that, unlike his New York rivals, his bank was not in trouble because of investments in exotic mortgages, and did not need a bailout, according to people briefed on the meeting.
But by 6:30, all nine chief executives had signed — setting in motion the largest government intervention in the American banking system since the Depression and retreating from the rescue plan Paulson had fought so hard to get through Congress only two weeks earlier.
What happened during those three and a half hours is a story of high drama and brief conflict, followed by acquiescence by the bankers, who felt they had little choice but to go along with the Treasury plan to inject $250 billion of capital into thousands of banks — starting with theirs.
Paulson announced the plan Tuesday, saying "we regret having to take these actions." Pouring billions in public money into the banks, he said, was "objectionable," but unavoidable to restore confidence in the markets and persuade the banks to start lending again.
All told, the potential cost to the government of the latest bailout package comes to $2.25 trillion, triple the size of the original $700 billion rescue package, which centered on buying distressed assets from banks. The latest show of government firepower is an abrupt about-face for Paulson, who just days earlier was discouraging the idea of capital injections for banks.
Thoughts?
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Democracy is being allowed to vote for the candidate you dislike least.
Never argue with an idiot. They will drag you down to their level and then beat you mercilessly with experience.
Caller number seven gets the Peace Prize!
Get coding tips, tricks, and more at: http://codingmonday.blogspot.com |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 10/16/2008 : 15:13:50
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The first thing it shows me is just how consolidated the power is in this country. Some protested, like Well Fargo, saying that their banks were in find shape, but then they realized that they were not being asking they were being told. So they stopped bothering to argue and just signed...
One bank to rule them all, one bank to find them, one bank to bring them all, and in the darkness bind them.
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Edited by - horgad on 10/16/2008 15:17:21 |
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kieblera5
Penny Hoarding Member
USA
859 Posts |
Posted - 10/16/2008 : 15:34:57
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Very true...
In the article, one person said, "It was a take it or take it offer". They pretty much sat the execs down and said sign this or you can't leave the room... Maybe it's just me, but that sounds illegal... |
Democracy is being allowed to vote for the candidate you dislike least.
Never argue with an idiot. They will drag you down to their level and then beat you mercilessly with experience.
Caller number seven gets the Peace Prize!
Get coding tips, tricks, and more at: http://codingmonday.blogspot.com |
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Delawhere Jack
1000+ Penny Miser Member
USA
1680 Posts |
Posted - 10/16/2008 : 17:10:35
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Paulson leaves Goldman Sachs to lead at Treasury.
Bernanke leaves Goldman Sachs to lead at the Fed.
Three weeks ago, on a Sunday night, Goldman Sachs is granted permission to operate as a commercial bank, making them eligible for bank bailout money.
Monday, guess who's CEO is at the table, among the 9 largest banks......Goldman Sachs'
We've just witnessed the biggest theft in the history of the WORLD!
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"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty." Thomas Jefferson
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Delawhere Jack
1000+ Penny Miser Member
USA
1680 Posts |
Posted - 10/16/2008 : 17:26:13
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Had to search a bit to find the names of all 9.
You must be logged in to see this link.
WASHINGTON (AFP) — Nine of the largest US banks agreed to give the government equity stakes in exchange for capital under a rescue plan, including Citigroup, JPMorgan Chase and Bank of America, a Treasury official said Tuesday.
The other major banks in the program include Goldman Sachs, Morgan Stanley, Wells Fargo, Bank of New York Mellon, State Street and Merrill Lynch, soon to be taken over by Bank of America, the official said.
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"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty." Thomas Jefferson
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DesertTumbleweed402
Penny Pincher Member
USA
196 Posts |
Posted - 10/16/2008 : 20:19:42
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| As WND put it: "It was a take it or take it offer" Talk about mob tactics. |
I enjoy taking long walks off short piers. |
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Kurr
1000+ Penny Miser Member
2906 Posts |
Posted - 10/16/2008 : 20:45:46
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Did the Fed Gov just sh!* in their mess kits? I mean did they forget who owns whom? As I understand it, banks have caused more regime change and collapsed governments than anything else.
The one thing I have learned for sure is that when you take gov. money there is always a cost. The big banks didn't want the money, but signed the contracts. What were the stipulations? I mean what do you have to put in a contract to make someone say, keep your 250 Billion, it ain't worth it.
Wonder what the threats were? Martial law, like they threatened congress with? Man I wish I could get some cable T.V. out here for the c-span and such.
I think I am losing track of who's affiliated with who at this point!
quote:
One bank to rule them all, one bank to find them, one bank to bring them all, and in the darkness bind them.
Horgad, mind if I steal that for my sig line? |
The silver [is] mine, and the gold [is] mine, saith the LORD of hosts. Hag 2:8 [/b]
He created it. He controls it. He gave it to us for His use. Why did we turn from sound scriptural currency that PROTECTS us?
KJV Bible w/ Strong's Concordance: http://www.blueletterbible.org/
The book of The Hundreds: http://www.land.netonecom.net/tlp/ref/boh/bookOfTheHundreds_v4.1.pdf
The Two Republics: http://www.whitehorsemedia.com/docs/THE_TWO_REPUBLICS.pdf
Good reading: http://ecclesia.org/truth/government.html
A number of people are educated beyond, sometimes way beyond, their intelligence. - Tenbears
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Edited by - Kurr on 10/16/2008 20:48:32 |
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Delawhere Jack
1000+ Penny Miser Member
USA
1680 Posts |
Posted - 10/16/2008 : 21:18:35
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quote:
Originally posted by Kurr
Did the Fed Gov just sh!* in their mess kits? I mean did they forget who owns whom? As I understand it, banks have caused more regime change and collapsed governments than anything else.
The one thing I have learned for sure is that when you take gov. money there is always a cost. The big banks didn't want the money, but signed the contracts. What were the stipulations? I mean what do you have to put in a contract to make someone say, keep your 250 Billion, it ain't worth it.
Wonder what the threats were? Martial law, like they threatened congress with? Man I wish I could get some cable T.V. out here for the c-span and such.
I think I am losing track of who's affiliated with who at this point!
quote:
One bank to rule them all, one bank to find them, one bank to bring them all, and in the darkness bind them.
Horgad, mind if I steal that for my sig line?
C-Span is little help, they too are controlled....
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"Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty." Thomas Jefferson
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Nickelless
Administrator
USA
5580 Posts |
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Copper Catcher
Administrator
USA
2092 Posts |
Posted - 10/17/2008 : 11:22:02
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| I wonder if a gun was on the table next to the paperwork? |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 10/17/2008 : 11:43:08
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quote:
Originally posted by Kurr
Did the Fed Gov just sh!* in their mess kits? I mean did they forget who owns whom? As I understand it, banks have caused more regime change and collapsed governments than anything else.
The one thing I have learned for sure is that when you take gov. money there is always a cost. The big banks didn't want the money, but signed the contracts. What were the stipulations? I mean what do you have to put in a contract to make someone say, keep your 250 Billion, it ain't worth it.
Wonder what the threats were? Martial law, like they threatened congress with? Man I wish I could get some cable T.V. out here for the c-span and such.
I think I am losing track of who's affiliated with who at this point!
quote:
One bank to rule them all, one bank to find them, one bank to bring them all, and in the darkness bind them.
Horgad, mind if I steal that for my sig line?
As long as Tolkien doesn't mind, I don't mind.  |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 10/17/2008 : 11:46:49
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quote:
Originally posted by Nickelless
What would've happened if any of the bankers had refused Paulson's ultimatum, to either the bankers themselves or their banks?
Also, I noticed the phrase "senior debt" in this article. What exactly is "senior debt"? Sounds like my student loans after I graduated.
My guess is that they already knew long, long before going into the meeting (probably at their time of hire) who their bosses were (obviously not the public shareholders). So it was a short meeting with little resistance. IE they were given their jobs by the ONE Bank That Rules Them All and they knew that they would lose their jobs if they did not comply. |
Edited by - horgad on 10/17/2008 11:47:36 |
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swusc
Penny Hoarding Member
USA
553 Posts |
Posted - 10/17/2008 : 13:58:16
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I think it had more to do with the cost of capital to the banks. If they pushed that capital into the banks, then it should decrease their cost of capital. The price wasn't that high. I also think a lot of it was grandstanding. They all wanted the money, but they wanted to act like they didn't.
-SWUSC |
`Everybody is ignorant. Only on different subjects.' Will Rogers
"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." Alan Greenspan, 1966. |
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Oh, God...
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