Hillbilly Report - Taxpayers

The Real Shakedown: Banking Crooks and Crooked Politicians

RDemocrat — Mon, 14 Mar 2011 14:49:14 GMT

It appears as if the crooks in the banking industry have a lot to be thankful for. After their unethical, immoral and downright illegal activities crashed our economy they were convieniently bailed out by all of us. Now, while they have recovered they are returning to business as usual in screwing us all. Who are we to expect them to deal fairly with us?? You see in this country when the rich, the bankers and Corporate America decide to steal from you they are not the ones to go on trial. In fact, the rest of us go on trial for trying to hold them accountable for their crimes.
And in fact those of us who would try to recover the ill-gotten gains of these folks and try to make them deal fairly with their costumers are accused of a "shakedown" by crooked politicians such as Richard Shelby who have long ago been bought and paid for to represent the greediest and least patriotic among us:

The immediate flashpoint is a proposed settlement between state attorneys general and the mortgage servicing industry. That settlement is a "shakedown," says Senator Richard Shelby of Alabama. The money banks would be required to allot to mortgage modification would be "extorted," declares The Wall Street Journal. And the bankers themselves warn that any action against them would place economic recovery at risk.

http://www.nytimes.com/2011/03...

But you see these people play under different rules than us. If an average American gets caught robbing his fellow citizens blind they go to jail. However, when the crooks on Wall St. and in Corporate and banking America rob us blind they have plenty of crooked politicians to come to their defense and not only keep them out of jail, but protect their profits. And why shouldn't they?? I mean, these folks have dealt so ethically with all of us:

To get an idea of what we're talking about here, look at the complaint filed by Nevada's attorney general against Bank of America. The complaint charges the bank with luring families into its loan-modification program - supposedly to help them keep their homes - under false pretenses; with giving false information about the program's requirements (for example, telling them that they had to default on their mortgages before receiving a modification); with stringing families along with promises of action, then "sending foreclosure notices, scheduling auction dates, and even selling consumers' homes while they waited for decisions"; and, in general, with exploiting the program to enrich itself at those families' expense.
The end result, the complaint charges, was that "many Nevada consumers continued to make mortgage payments they could not afford, running through their savings, their retirement funds, or their children's education funds. Additionally, due to Bank of America's misleading assurances, consumers deferred short-sales and passed on other attempts to mitigate their losses. And they waited anxiously, month after month, calling Bank of America and submitting their paperwork again and again, not knowing whether or when they would lose their homes."

But we are told that we simply cannot punish these crooks. Just like the banks that were "too big to fail" needed us to bail them out it would simply do too much damage to our economy to hold these folks accountable like you and I would be. However, their are problems with this theory, pushed off on us by bought and paid for crooked politicians:

First, the proposed settlement only calls for loan modifications that would produce a greater "net present value" than foreclosure - that is, for offering deals that are in the interest of both homeowners and investors. The outrageous truth is that in many cases banks are blocking such mutually beneficial deals, so that they can continue to extract fees. How could ending this highway robbery be bad for the economy?
Second, the biggest obstacle to recovery isn't the financial condition of major banks, which were bailed out once and are now profiting from the widespread perception that they'll be bailed out again if anything goes wrong. It is, instead, the overhang of household debt combined with paralysis in the housing market. Getting banks to clear up mortgage debts - instead of stringing families along to extract a few more dollars - would help, not hurt, the economy.

Which all goes to the point that a now disgraced candidate made long ago. There really are two Americas. In one all of us are supposed to work harder for less money, play by the rules and tighten our belts because of the debt caused by others. In the other, the wealthy, Corporate America and the bankers are allowed to do whatever they want, whenever they want to do it and they have paid for enough politicians that not only do they not even go on trial for their crimes they actually have their profits protected and are asked to sacrifice nothing as we are all told that the salaries and benefits of public workers are the real problem. These folks steal hundreds of billions and tell us that hundreds of thousands of dollars and benefits for middle-class workers are the problem.

Yes, they live in that America where their no-risk investments will be protected and many will condone their criminal activity:

In the days and weeks ahead, we'll see pro-banker politicians denounce the proposed settlement, asserting that it's all about defending the rule of law. But what they're actually defending is the exact opposite - a system in which only the little people have to obey the law, while the rich, and bankers especially, can cheat and defraud without consequences.

Unfortunately there is no end in sight to this behavior. As long as crooked politicians like Richard Shelby defend these folks and protect them they will continue to steal, defraud and cheat us all. Of course since they have bought and paid for our government they face no consequences for their actions.

Richard Shelby is right about one thing. Their is definately a "shakedown" going on in America right now. The real shakedown occurs as the crooks in Corporate America, the banking industry and Wall St. shake us down for more of our money, steal our homes and the American dream and are not only allowed to by crooked paid for politicians, but are encouraged to at every turn while we are asked to sacrifice yet again for their abuses.

These folks have no morals, ethics or love of country and unlike us have plenty of money to buy representation from crooks like Richard Shelby. Until we fight them and hold them accountable they will continue to run roughshod over us with folks like Richard Shelby carrying their water.

Republicans Try to Give Bankers a Pass, Again

RDemocrat — Sat, 03 Apr 2010 15:44:24 GMT

We all remember the financial meltdown that crashed our economy. In fact for most of us we are still feeling the pain of that very crash. However, it still has not convinced some lawmakers that new rules for the industry and new powers for the government to prevent another such disaster are in order. You see, Republicans are fighting a financial overhaul that would do just that.
Yes, Republicans believe in reserving the right for their buddies in the banking industry to crash the economy with their greed anytime they see fit. Why does this not come as a surprise??:

The GOP is trying to fight many of the changes that President Barack Obama and majority Democrats want. Legislation would give the government authority to split up big financial companies and force the industry to pay for its most massive failures.
"It will only compound the pain for struggling small businesses and for families who played by the rules, lived within their means and acted responsibly," McCarthy said in the Republicans' weekly radio and Internet address Saturday.

http://www.kentucky.com/2010/0...

Even more laughable was the Republican explanation of why the new rules and powers are not needed:

But McCarthy attempted to frame the effort as one that would lead to more federal spending while the deficit is soaring.
"We have run out of money," he said. "And yet this administration and congressional Democrats want to spend even more."

Does this guy even stop for a second to think exactly why we have run out of money?? After the Republican policies in the middle-east and their domestic policies of complete de-regulation of everything possible their partners in greed in the banking industry crashed our economy. They were then quickly and cleanly bailed out leaving working America to suffer from the mess they caused.

We definitely need new regulations to prevent this again. When institutions take taxpayers money they should be beholden to those taxpayers whether they or the Republicans like it or not. This means also that we need a new agency to regulate their behaviors and protect our investment. You see, it should not only be the folks on Wall. St. that get to profit. Out here on Main St. we are still looking for a return on OUR investment and should be protected from having our money stolen again by the greediest and least patriotic among us.

Of course that is something Republican politicians will never understand because they profit handsomely from our pain.

Fox News Way Off.. Again

RDemocrat — Fri, 15 Jan 2010 16:01:19 GMT

We are all used to Fox News spouting lies and propoganda to brainwash the masses. As such this story should come as no surprise. Now, I am no Obama apolegist but some of the things he does is blown out of proportion and reported to the masses that watch Fox News as fact. Nowhere is this more evident than one of the actually good things he has done, assessed a tax on banks to recoup the taxpayer money given to them.
Yes, Fox News was at it again blowing this tax way out of proportion:

On January 15, Fox & Friends falsely reported that President Obama promoted "a 15 percent tax on the banks" for the purpose of recouping taxpayer losses resulting from Troubled Asset Relief Program (TARP) investments. In fact, the fee Obama proposed would be "assessed at approximately 15 basis points (0.15 percent) of covered liabilities per year" for financial companies with more than $50 billion in assets.

http://mediamatters.org/resear...

In a desperate attempt to paint Obama as an extremist, they multiplied this tax by a hundred times before reporting on it. Now, we all know Obama is no extremist and in fact his main weakness is he still thinks he can play footsies with these folks. If it were me, I would charge the banks interest on taxpayer money just like they do the taxpayers.

However, Fox was not content with just one misrepresentation of the Bank Tax:

Kilmeade claimed fee is "only" for banks that have repaid TARP funds, "not the weak ones ... like for example, Citibank." Kilmeade stated: "The responsibility fee is what they're calling it. It's being assessed only against the banks that have already paid back with interest the TARP money they got. So essentially they're paying back for the banks, they're paying back for Fannie and Freddie, who are not paying -- paying back for the cars, rather. Not the weak ones still in the red which continue to be a drain on the Treasury, like for example, Citibank."

And as usual with Fox, the truth was something entirely different:

Fee "levied on the debts of financial firms with more than $50 billion in consolidated assets," regardless of TARP participation. The White House fact sheet states, "The fee the President is proposing would be levied on the debts of financial firms with more than $50 billion in consolidated assets, providing a deterrent against excessive leverage for the largest financial firms." Bloomberg reported that "[e]ven companies that didn't receive TARP funds would face the fee. The administration is using the argument that that every major financial firm in the U.S. is a beneficiary of government steps to bolster the industry."
WSJ: Citibank would be subject to tax. The Wall Street Journal reported, "The 10-year assessment on bank liabilities-dubbed the Financial Crisis Responsibility Fee-would fall most heavily on the nation's top six banking companies: Citigroup Inc., J.P. Morgan Chase & Co., Bank of America Corp., Goldman Sachs Group Inc., Morgan Stanley and Wells Fargo & Co. Each would likely face an annual bill of $1 billion or more, with Citigroup and J.P. Morgan facing the largest liabilities, likely more than $2.4 billion apiece." The article further reported that "[a] provision inserted in the legislation authorizing the Troubled Asset Relief Program required the administration to come up with a way to recover money spent to save the financial system."

Watch the vid here:

Which begs the question, what are these folks so mad about?? They lost an election and the new President and Congress has done everything in their power to coddle them and placate them at every turn. The real folks that should be very angry are Progressives, who had hoped that by electing one of their own we would see real steps taken by this country to punish bad behavior and start re-building the American middle-class. These folks got lucky with Obama because a real Progressive would be cramming real reforms down their throats whether they like it or not.

When will this administration realize they simply cannot play nice with these folks?? They will hate the President no matter what he does just because he is President and even if he does something good they will distort it and report the distortions as "news" for the tea-baggers to fire themselves up on. It is time that this Administration realized this and quit fighting for these folks and start fighting for who got them elected expecting change, Progressives.

Sen. Sanders: "Heads the Bankers Win, Tails Everybody Else Loses"

RDemocrat — Tue, 21 Jul 2009 16:38:09 GMT

Hillbilly recently did a video series on "Who do you believe", Bernie Sanders or Mitch McConnell. In it Sen. Sanders spelled out the huge problems with fraud, waste, and downright criminal activitiy in the healthcare industry that has helped push prices so high. And of course in it Mitch McConnell continually claims we have the "best healthcare system in the world" because himself and his rich buddies get to pick the American taxpayer and consumer clean.
Well, Bernie Sanders is at it again, and this time he is looking at the banking industry, who despite crashing our economy last year are now back to once again posting record profits. How could that be possible?? Because the very people who are slamming a stimulus for working Americans threw away billions to bail out the banking industry last year. Despite the fact that the American taxpayer, us now own these companies they are laughing in our faces all the way to the bank. Quite literally.

An Op-Ed today by Sen. Sanders not only shows the outrage and frustration we should all feel, but calls the bankers on their "Heads we win, tails everybody else loses" mentality. Read the whole Op-Ed here:

We are in the midst of the worst economic crisis since the Great Depression. Millions of Americans continue to lose their jobs, homes, life savings and their ability to send their kids to college. Yet now that their losing streak may be ending, the gambling addicts on Wall Street, who precipitated the largest taxpayer bailout in history, are celebrating.
Goldman Sachs, which received a major bailout from American taxpayers, just made the largest quarterly profit in its 140-year history and is on track to pay out huge bonuses to top executives and other employees. This is the same company that gave CEO Lloyd Blankfein more than $68 million in total compensation for his work - the largest ever for a Wall Street executive - just before Wall Street collapsed.
This is simply not acceptable. The executives at Goldman, American International Group and other large financial institutions should not be receiving bonuses. They should be fired. These firms need new leadership, more concerned about investing in the productive economy to the benefit of all Americans than about maximizing short-term profits.
We must make it crystal clear to Wall Street that the era of excessive speculation is over. We must end the cycle of record-breaking profits and record-breaking bonuses when times (for them) are good and record-breaking corporate welfare checks when the bubble bursts. The "heads, bankers win; tails, everyone else loses" system must end.
After all, Goldman and other firms on Wall Street are still indebted to the American taxpayer. Trillions of taxpayer dollars have been loaned to them with the goal of increasing lending to businesses and American consumers. Instead, bank lending is in free-fall, and Wall Street firms are busy spending their money speculating on oil prices and taking on other risky bets that end up hurting, not helping, the American people.
Think of all of the productive short- and long-term investments that could be made in our country right now if Wall Street used the money it has received from the federal government wisely. Instead of casino-style speculation, Wall Street could invest in high-speed trains; fuel-efficient cars; wind turbines and other alternative energy sources; affordable housing; affordable prescription drugs that save people's lives; and other things that America desperately needs. Think of all of the small businesses that could be creating decent-paying jobs with just a fraction of the money big banks have received from the federal government.
Instead, Wall Street would like to make money speculating that oil prices will go higher, or that the subprime mortgage market will continue to get worse, or on the weather or on whatever else their computer models tell them will make them a quick buck. The message from Washington must be clear: The current investment model for Wall Street is unacceptable. Financial reform in Washington by the president and Congress must demand a fundamental change, so these investments help all of our people.
Now, Goldman has the chutzpah to think it can get away with paying record-breaking bonuses. Why? Because it made a boatload of money on unproductive investments and paid back $10 billion it received from the Troubled Asset Relief Program, which came with restrictions on executive compensation and bonuses.
But wait just a second. How do we know whether Goldman and others also received billions more from the Federal Reserve, with no strings attached, right after they paid back their TARP funds? We don't. As a matter of fact, we don't know the names of virtually any of the big banks that got more than $2.2 trillion in taxpayer assistance from the Fed, because Chairman Ben Bernanke won't tell us. He's more interested in protecting bankers than taxpayers. That is wrong. The Federal Reserve has got to understand that this money does not belong to it; the money belongs to the American people.
Most important, we need to create a new Wall Street that exists not to reward CEOs and investors for the bets they make on exotic financial instruments nobody understands. Rather, we need a Wall Street that provides financial services to small businesses and manufacturers to create decent-paying jobs and grow the economy by productive means.
Sen. Bernie Sanders, a Vermont independent, is a member of the Health, Education, Labor and Pensions Committee.

http://www.politico.com/news/s...

This begs the question. With all the outrage over a stimulus for all Americans and small businesses, where are the Republicans and their "Tea Parties" over the bankers fleecing the American treasury, taxpayer, and their consumers?? It was a Republican bailout of bankers that they really don't seem to mind much. Why?? Because as always with Republicans they could care less about wasteful spending and fraud as long as all the money is horded to the greediest and least patriotic among us. Give just a little money to hard-working Americans though, instant "tea parties"!!

And what about these Republicans and Blue Dog Democrats who constantly tout their "concern" for small business?? Where is all the outrage that hundreds of billions of dollars were given to the bankers who crashed our economy to revive it by lending to working Americans and small business but instead are hording the money and are back to business as usual doling out huge bonuses to executives that should instead be fired for their roles in crashing the economy??

Remember Americans, WE OWN THESE COMPANIES!! When left to their own devices by the Bush Administration and the former Republican Congress these folks not only crashed their own companies into a ditch, but used the same policies of greed and idiocy they now are deploying with OUR money to crash the whole American economy off a cliff.

Without the actions of the greed-meisters who thusfar are the only ones to benefit from our crashed economy nobody would be having to rail against President Obama for trying to clean up the mess created by these folks and their Republicans enablers. Where is thier outrage that these folks were given hundreds of billions of taxpayer dollars to revive our economy and instead do what they do best, stick it in their own pockets and stick it to hard-working Americans everwhere??

We should all be frustrated about our economy. However, we should all vent our frustrations on the folks who really crashed our economy, not President Obama and the Democrats who are desperately trying to clean up a huge mess. Without the greed, idiocy and scorn for everyday Americans shown by the Republicans and their allies in the banking industry we would not have had a problem to begin with.

That is the truth Republicans and the voters that enabled them will give any amount of money to insure you forget.

See Bernie Sanders dressing down the healthcare industry here: