The G.E. Web……..America caught in a spider’s web, Part 3

Climate Change, Renewable Alternative Energy, Cap and Trade, Healthcare Reform……….. 

Solar Panels, Wind Turbines, Smart Grids, Clinical Information Systems, Patient Care Performance Systems, Greenhouse Gas Services, Smart Appliances, Progressive Lighting Systems  

There is a scary correlation between the political agenda of the Obama Administration and the advertising campaigns of G.E. Using their television power as a launching pad the G.E./Obama agenda has had non-stop coverage since the presidential primaries. Throughout the presidential campaign NBC, CNBC & MSNBC became the Obama network. Since then they have had “green weeks” with everything from the story lines, documentaries and even the logo going “green”. The messages are intertwined and complement each other. 

Is this a coincidence, maybe or maybe not? There is a very tangled web that ties the President to G.E. CEO Jeffery Immelt. 

First a brief biography of Mr. Immelt; Jeffrey R. Immelt joined GE in corporate marketing in 1982 after receiving a degree in applied mathematics from Dartmouth College and an MBA from Harvard University. He became SVP of GE and president and CEO of GE Medical Systems in 1996. He became GE’s president and chairman-elect in 2000, and chairman and CEO in 2001. He is also a director of the New York Federal Reserve Bank as well as a member of the President Economic Advisory Board. 

Here are a few highlights in this tangled relationship: 

Feb. 6, 2009 Obama named Immelt to his Economic Advisory Board.

GE Healthcare provides cutting edge medical technologies and services. They have also created a campaign called Healthymagination. They have used the campaign to advance their agenda of healthcare reform saying that its time for a better, simpler system where innovation helps lower the cost of care and improves the quality of outcomes. They also offer an extensive patient management software system called EMR (Electronic Medical Records) that eliminates the “mountains of paperwork in triplicate” that Obama likes to rail about. If you are a medical services provider GE would gladly finance your purchase of their systems for you through GE Capital which we bailed out to the tune of $224 billion! We then made them a bank and eligible for FDIC services. Now there are rumors there will be “no bid contracts” awarded to GE once healthcare for passes. 

http://www.gehealthcare.com/usen/index.html

 GE Energy provides wind power technology, solar power technology, smart grid technology, progressive lighting systems, smart appliances, the list goes on and on. They have also created a campaign called Ecomagination and it won’t come as any surprise to you that GE spent $20 million on lobbying for green programs such as tax and cap on greenhouse gases or that they have already invested in a new business called Greenhouse Gas Services. This business will facilitate the buying and selling of carbon credits. Of course the same “no bid contract” rumors abound in the energy arena. 

http://www.gepower.com/home/index.htm

 GE Transportation provides train and mass transit systems. The stimulus bill contains $20 billion earmarked for mass transit. Starting to see the pattern…. 

http://www.getransportation.com/na/en/informationsystems.html

 Jeffery Immelt is a major power broker in business and financial circles. He is a Director of a Federal Reserve Bank and the CEO of a major U.S. corporation that is invested in all the major agenda items (Green Energy, Healthcare Reform and Climate Change) of the new administration. He has been appointed as an Economic Recovery Advisor to the President. Oh by the way, they also own a major media conglomerate. NBC, CNBC, MSNBC, etc. all of which became an Obama cheerleading section during the campaign. The coverage was and remains biased and favorable to the point that it is unprofessional. But what a great investment – with Obama in the White House the potential for a huge pay off seems imminent.  Can anyone say conflict of interest? And the agenda continues to be pushed…. How long can you watch TV these days without seeing a GE commercial about healthcare services, smart grids or singing mechanics building trains? 

Here is a group of links that will give you a variety of perspectives on this in appropriate relationship:

How a Loophole Benefits GE in Bank Rescue    http://www.washingtonpost.com/wp-dyn/content/article/2009/06/28/AR2009062802955_pf.html

Obama’s Climate Exchange is a gift to GE    http://www.businessinsider.com/obamas-climate-exchange-is-a-gift-to-ge-2009-3

 GE: Obama’s Corporate Sponsor  http://www.washingtontimes.com/news/2009/may/11/ge-corporate-sponsor/

 And last but not least, my favorite the Obama – Immelt Muckety Web. This can keep you busy for an hour trying to unravel this frightening web of intertwined relationships:

 http://www.muckety.com/FD29D14025B4FCCB04763F447BF3B5C6.map

Folks, we have a big problem. There is a community organizer in the White House and his goal is to “fundamentally change America”. He is applying the socialist principles of the community organizers he has studied to change this country. He is using the money, power and influence of his elitist allies like Jeffery Immelt to further his agenda. There is an infrastructure being built inside our government that will change America and we are running out of time to stop them. Wake up and take action! Get involved! 

“Since the general civilization of mankind, I believe there are more instances of the abridgment of the freedom of the people by gradual and silent encroachments of those in power than by violent and sudden usurpations.” – James Madison 

“Things in our country run in spite of government, not by the aid of it.” – Will Rogers 

Meet the Spiders……. America: caught in the spider’s web, Part 2

What is wrong with this picture? Our country is in deep and serious trouble; yet nobody seems to be able to figure out what to fight against first. The strategy is working! Move at the speed of light, create multiple diversions and confuse the public to the point they are paralyzed and “remake” America before they know what hit them. In his inaugural speech, President Obama did not talk about rebuilding America; he talked about “remaking America”. This is a subtle but important difference. To rebuild is to make repairs, to remake is to make anew or change. So is this splitting hairs or is this detecting a clue? 

By the way, most Republicans are an equal part of this problem. The first bailout (T.A.R.P.) was done on their watch. The way this bill was slammed through and sub sequentially managed (I use that word loosely) was criminal. 

So America, what is really going on here? Is this just a series of coincidences or is this the unfolding of a democratic agenda that is driving us to the doorstep of a “Socialist Nanny State” where big government decides what is best for all of us? Who benefits from such a plan and what would be a motivator for participants in a plan that destroys the “American Dream”? 

Greed is always great motivator for political shenanigans and when you look closely at what is happening; it becomes very clear that there are people getting rich off of this “crisis”. Of course, there are also the “progressives” who have an altruistic agenda and the delusional belief that some form of socialism, Marxism or communism will provide a better life for all. These misguided people either do not understand the Constitution and the personal freedoms it protects or they do not care about our personal freedom. Our country was founded on the principle that we all have “certain inalienable rights’’ which are granted by a higher authority than the government. 

“We hold these truths to be self-evident, that all men are created equal; that they are endowed by their Creator with inherent and inalienable rights; that among these, are life, liberty, and the pursuit of happiness; that to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed; that whenever any form of government becomes destructive of these ends, it is the right of the people to alter or abolish it, and to institute new government, laying its foundation on such principles, and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness.” –Declaration of Independence as originally written by Thomas Jefferson, 1776. ME 1:29, Papers 1:315 

However, there is a problem in the politics of social reengineering – most of us do not want to be reengineered! We like our personal freedom, we like the ability to freely express ourselves and we like our opportunities to build personal wealth. This country was founded on hard work, moral behavior and a belief in a higher power. The founding fathers warned that if we lost these ideals that maintaining the Republic would be difficult. 

“A general dissolution of the principles and manners will more surely overthrow the liberties of America than the whole force of the common enemy…. While the people are virtuous they cannot be subdued; but once they lose their virtue, they will be ready to surrender their liberties to the first external or internal invader…. If virtue and knowledge are diffused among the people, they will never be enslaved. This will be their great security”. – Samuel Adams 

Introducing the Spiders 

So let’s talk about the spiders in our web and the many “coincidences” that led us here. Our spiders come in many forms. First we will focus on the financial variety – wolf spiders (Rhabidosa rabida); named after their need to fleece or eat sheep. These spiders have been involved in a series of “strange coincidences”; see below. 

To start with the Economic Meltdown began with defaults in the sub prime mortgage market. These mortgages were tied to derivative trading on Wall Street and to hedge funds. Once the sub prime collapse began it quickly spread to Wall Street and the hedge funds triggering a domino effect in the financial markets. Another factor which affected the markets at the same time was a steep rise in gasoline prices which climbed to over $4/gallon. The rise was fueled by speculation by futures traders. This had a negative factor on several sectors of the economy from travel and tourism to car sales. 

So who was a leader in derivatives trading and oil speculation? Goldman Sachs (our first spider and just look at the offspring)! 

July 14^th – Complete coincidence Goldman Sachs profits go up 65%.

–  The Secretary of the Treasury during the Bush Administration is Henry Paulson. He is formerly the Chairman and CEO of Goldman Sachs.

–  Secretary Paulson says we are in crisis and we must bailout financial institutes and banks to save the economy.

–  But when Bear Stearns and Lehman Brothers are in trouble he decides they are not worth saving. Really, but Lehman Brothers is an American institution?

–   Wait a minute who were  Goldman Sachs biggest competitors? The answer = Lehman Brothers’ & Bear Stearns . 

–   The very next day Secretary Paulson and his team decides to save AIG because “they are too big fail”.

–  So the former Goldman Sachs employee, Secretary of the Treasury, Paulson decides to bail out AIG. Who is one of the first companies that gets paid their outstanding receivables with the bailout money given to AIG? What a coincidence- Goldman Sachs.

–  Next Treasury Secretary Paulson decides to appoint somebody to oversee TARP. Where does he go to hire for this position – are you catching on yet? You got it – Goldman Sachs V.P. Neil Kashkari. 

–  Goldman Sachs decides they want to become a bank holding company. So they call Henry Paulson, their former employee who is now Treasury Secretary and Neil Kashkari who oversees TARP to inform them; they want to be a bank holding company. 

–  It usually takes time to become a bank holding company but the two former employees from Goldman Sachs approve this quickly.

–  So why would they want to be a bank holding company? It makes them eligible for both  TARP and FDIC funds.

–  Also there’s the SEC, the SEC doesn’t oversee bank holding companies. The Federal Reserve oversees bank holding companies. What town is Goldman Sachs from? New York.

–  So who do you think will oversee Goldman Sachs? How about the Federal Reserve Chairman of New York, Stephen Friedman?

–  Guess what – another coincidence! The Fed Chairman of NY is on the Board of Directors of Goldman Sachs! Unbelievable isn’t it, – the guy overseeing Goldman Sachs is on their Board of Directors. This might be against the law and for sure it is unethical.

–  Not a problem! Henry Paulson is the Treasury Secretary. Secretary Paulson simply signs a waiver that says, “No worries! Friedman doesn’t have to get off the board. He doesn’t have to sell any of his stocks.”

–  Not only does Friedman stay on the board, he buys 52,000 shares of additional stock. From then until today this made him three million dollars. With today’s announcement of a 65% profit increase, how much more money did he make? (a special thanks to Glenn Beck for helping all of us better understand the Goldman Sachs connection, when you hear this stuff you got to keep passing it along cause the mainstream media won’t!)

After the meltdown Goldman Sachs got out of derivatives and oil. They’ve learned their lesson and they are into something brand new. Now they are into Cap and Trade. Next to GE, Goldman Sachs is one of the biggest supporters of Cap and Trade. Goldman Sachs has invested in carbon-offset development and carbon permissions.

(CNN) Less than two weeks after the investment bank announced it would be laying off 10 percent of its staff, Goldman Sachs confirmed that it has taken a minority stake in Utah-based carbon offset project developer Blue Source LLC. . . . “Interest in the pre-compliance carbon market in the U.S. is growing rapidly,” said Leslie Biddle, Head of Commodity Sales at Goldman, “and we are excited to be able to offer our clients immediate access to a diverse selection of emission reductions to manage their carbon risk.”

It seems that any clear thinking American would look at this twisted tale and say, “What’s wrong with this picture? Why is the government meddling in private businesses and helping some survive while allowing others to fail?” They would also be asking about conflict of interest, how a brokerage house can be reclassified as a bank and why they are suddenly eligible for TARP plus FDIC funds when they aren’t even in trouble. Isn’t ANYONE paying attention? Doesn’t ANYONE care? Where is the outrage? 

“All the perplexities, confusion and distress in America arise, not from defects in their Constitution or Confederation, not from want of honor or virtue, so much as from the downright ignorance of the nature of coin, credit and circulation”. – John Adams 

That completes an overview of the first spider web. Keep in mind this is only a high level view my guess is it goes much deeper. However, this is a web and this is the way our entire government is being structured. This web began under President Bush. Next up is General Electric and CEO Jeffery Immelt, a true Obama backer. 

For more Uncommon Sense, tune into my show on Blog Talk Radio, Sunday nights from 9:00 – 10:00 pm CT. go to: www.blogtalkradio.com  and look for Uncommon Sense with Dave Johannes.

The Economic Meltdown…… America: caught in a spider’s web, Part 1

So for years the American economy appeared to be cruising along; money was being made in the stock market, 401k’s were filling up and then almost without warning the bottom dropped out. What happened? Were all the warning signs being ignored?  Was it simply greed and unethical behavior? Or was it an unrealistic “redistribute the wealth” agenda of “progressive” politicians? Yes, yes, and yes!

It is this simple and this complicated. Bankers must behave ethically. Politicians must act responsibly. Citizens must behave sensibly and everyone must behave morally.

This meltdown represents more than just a breakdown of our financial system; it also reflects a meltdown of our national value system. Ours’ is a nation that was built with a system that rewarded hard work, contributions to society, leadership and self discipline. Our bedrock values included God, family, honesty, education, personal responsibility and patriotism. These values have been replaced with greed; instant gratification, breakdown of the family unit, erosion of religion’s place in society, a victim culture, and   lack of respect for the law.

“We have no government armed in power capable of contending with human passions unbridled by morality and religion. Our Constitution was made only for a religious and moral people. It is wholly inadequate for the government of any other”. – John Adams

A loss of civility is now reflected in the behavior of both parties during campaigns. No longer are campaigns about a difference in opinions on how to govern or debates about the merits of policy positions. Instead, they have become an exercise in mudslinging, destruction of the candidates, lies, propaganda, intimidation and bullying to turn political agenda into public policy.

“I offer my opponents a bargain:  if they will stop telling lies about us, I will stop telling the truth about them”.  ~Adlai Stevenson

In many ways, the financial crisis is the result of ruthless politicians, in league with unscrupulous citizens, exploiting anyone they can with entitlement programs, legislation and loopholes. The public has come to confuse these entitlement programs with “rights” and to provide these “rights”, our politicians are willing to spend future generations into bankruptcy. It is completely fair to refer to the stimulus bill as “The Generational Theft Act of 2009”.

“It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world.” – Thomas Jefferson 

So let’s begin to unravel the web in which we find ourselves. There are so many parts and pieces to this story. This is the first (and longest) installment. In this report we will establish the timeline of events surrounding the meltdown in detail. My goal is to shed light on the agenda at work and expose the trap we are being forced into. What’s at stake? Our liberty, our freedom and our national sovereignty! 

The Economic Meltdown   

I am going to outline the key events which set up and are prolonging our economic meltdown. To see graphical version of the timeline go to: http://www.timelinesoftware.com/Schedules/MortgageCrisisTimeline.pdf 

As you read through this list of events, you should take note of the level of intervention that the government undertook during this crisis. Their action is unprecedented. The amount of spending and “investing” of tax dollars in businesses and banks can only be viewed as the first step toward nationalization of the U.S. business and our economy. Keep in mind that this is not the full list but a sampling of the events. Another interesting note is the source of this information. The bulk of this list came from the website of the St. Louis Federal Reserve Bank. Each item on the list is a link to an actual government press release. A link to the full list is provided to the site later in the article. 

Summary of Events: 

1999 The Clinton Administration pressures Fannie Mae into lending to lower income borrowers 

2003 (Jun); Freddie Mac admits understating earnings by $5 billion 

2003 (Sep); The Bush Administration recommends an overhaul of Fannie Mae. 

2004 (Dec); Fannie Mae advised to restate earnings and reduce them by $9 billion 

2005 (Jan); Federal Housing Enterprise Regulatory Reform Act is proposed for the second time; never makes it to the floor for a vote. 

2005 (May) Greenspan calls home price speculation unsustainable 

2007, Bernacke starts to issue continual warnings of an impending economic disaster; ranging from derivatives, stocks, sub prime mortgages and inflation. 

==>> (St. Louis Fed list starts here) July 24, 2007 | SEC Filing  Countrywide Financial Corporation warns of “difficult conditions.”

July 31, 2007 | U.S. Bankruptcy Filing   Bear Stearns liquidates two hedge funds that invested in various types of mortgage-backed securities.

August 6, 2007 | SEC Filing   American Home Mortgage Investment Corporation files for Chapter 11 bankruptcy protection.

August 7, 2007 | Federal Reserve Press Release  The FOMC votes to maintain its target for the federal funds rate at 5.25 percent.

August 10, 2007 | Federal Reserve Press Release  The Federal Reserve Board announces that it “will provide reserves as necessary…to promote trading in the federal funds market at rates close to the FOMC’s target rate of 5.25 percent. In current circumstances, depository institutions may experience unusual funding needs because of dislocations in money and credit markets. As always, the discount window is available as a source of funding.”

August 16, 2007 | SEC Filing   Fitch Ratings downgrades Countrywide Financial Corporation to BBB+, its third lowest investment-grade rating, and Countrywide borrows the entire $11.5 billion available in its credit lines with other banks.

August 17, 2007 | Federal Reserve Press Release  The Federal Reserve Board votes to reduce the primary credit rate 50 basis points to 5.75 percent, bringing the rate to only 50 basis points above the FOMC’s federal funds rate target. The Board also increases the maximum primary credit borrowing term to 30 days, renewable by the borrower.

September 18, 2007 | Federal Reserve Press Release   The FOMC votes to reduce its target for the federal funds rate 50 basis points to 4.75 percent. The Federal Reserve Board votes to reduce the primary credit rate 50 basis points to 5.25 percent.

October 10, 2007 | Hope Now Press Release | Treasury Department Press Release   U.S. Treasury Secretary Paulson announces the HOPE NOW initiative, an alliance of investors, servicers, mortgage market participants, and credit and homeowners’ counselors encouraged by the Treasury Department and the Department of Housing and Urban Development.

October 15, 2007 | Bank of America Press Release   Citigroup, Bank of America, and JPMorgan Chase announce plans for an $80 billion Master Liquidity Enhancement Conduit to purchase highly rated assets from existing special purpose vehicles.

October 31, 2007 | Federal Reserve Press Release   The FOMC votes to reduce its target for the federal funds rate 25 basis points to 4.50 percent. The Federal Reserve Board votes to reduce the primary credit rate 25 basis points to 5.00 percent.

December 11, 2007 | Federal Reserve Press Release   The FOMC votes to reduce its target for the federal funds rate 25 basis points to 4.25 percent. The Federal Reserve Board votes to reduce the primary credit rate 25 basis points to 4.75 percent.

December 12, 2007 | Federal Reserve Press Release | Additional Information   The Federal Reserve Board announces the creation of a Term Auction Facility (TAF) in which fixed amounts of term funds will be auctioned to depository institutions against a wide variety of collateral. The FOMC authorizes temporary reciprocal currency arrangements (swap lines) with the European Central Bank (ECB) and the Swiss National Bank (SNB). The Fed states that it will provide up to $20 billion and $4 billion to the ECB and SNB, respectively, for up to 6 months.

December 21, 2007 | Bank of America Press Release   Citigroup, JPMorgan Chase, and Bank of America abandon plans for the Master Liquidity Enhancement Conduit, announcing that the fund “is not needed at this time.”

2008

January 11, 2008 | Bank of America Press Release   Bank of America announces that it will purchase Countrywide Financial in an all-stock transaction worth approximately $4 billion.

January 22, 2008 | Federal Reserve Press Release   In an intermeeting conference call, the FOMC votes to reduce its target for the federal funds rate 75 basis points to 3.5 percent. The Federal Reserve Board votes to reduce the primary credit rate 75 basis points to 4 percent.

January 30, 2008 | Federal Reserve Press Release   The FOMC votes to reduce its target for the federal funds rate 50 basis points to 3 percent. The Federal Reserve Board votes to reduce the primary credit rate 50 basis points to 3.5 percent. 

February 13, 2008 | Public Law 110-185   President Bush signs the Economic Stimulus Act of 2008 (Public Law 110-185) into law. 

March 5, 2008 | Carlyle Capital Corporation Press Release   Carlyle Capital Corporation receives a default notice after failing to meet margin calls on its mortgage bond fund. 

March 11, 2008 | Federal Reserve Press Release | Additional Information   The Federal Reserve Board announces the creation of the Term Securities Lending Facility (TSLF), which will lend up to $200 billion of Treasury securities for 28-day terms against federal agency debt, federal agency residential mortgage-backed securities (MBS), non-agency AAA/Aaa private label residential MBS, and other securities. The FOMC increases its swap lines with the ECB by $10 billion and the Swiss National Bank by $2 billion and also extends these lines through September 30, 2008. 

March 14, 2008 | Federal Reserve Press Release   The Federal Reserve Board approves the financing arrangement announced by JPMorgan Chase and Bear Stearns [see note for March 24]. The Federal Reserve Board also announces they are “monitoring market developments closely and will continue to provide liquidity as necessary to promote the orderly function of the financial system.” 

March 18, 2008 | Federal Reserve Press Release   The FOMC votes to reduce its target for the federal funds rate 75 basis points to 2.25 percent. The Federal Reserve Board votes to reduce the primary credit rate 75 basis points to 2.50 percent. 

March 24, 2008 | Federal Reserve Bank of New York Press Release   The Federal Reserve Bank of New York announces that it will provide term financing to facilitate JPMorgan Chase & Co.’s acquisition of The Bear Stearns Companies Inc. A limited liability company (Maiden Lane) is formed to control $30 billion of Bear Stearns assets that are pledged as security for $29 billion in term financing from the New York Fed at its primary credit rate. JPMorgan Chase will assume the first $1 billion of any losses on the portfolio. 

April 30, 2008 | Federal Reserve Press Release   The FOMC votes to reduce its target for the federal funds rate 25 basis points to 2 percent. The Federal Reserve Board votes to reduce the primary credit rate 25 basis points to 2.25 percent. 

June 5, 2008 | Federal Reserve Press Release   The Federal Reserve Board announces approval of the notice of Bank of America to acquire Countrywide Financial Corporation. 

July 11, 2008 | FDIC Press Release   The Office of Thrift Supervision closes IndyMac Bank, F.S.B. The Federal Deposit Insurance Corporation (FDIC) announces the transfer of the insured deposits and most assets of IndyMac Bank, F.S.B. to IndyMac Federal Bank, FSB.   

July 13, 2008 | Federal Reserve Press Release   The Federal Reserve Board authorizes the Federal Reserve Bank of New York to lend to the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), should such lending prove necessary. 

July 13, 2008 | Treasury Department Press Release   The U.S. Treasury Department announces a temporary increase in the credit lines of Fannie Mae and Freddie Mac and a temporary authorization for the Treasury to purchase equity in either GSE if needed.    

July 15, 2008 | SEC Press Release   The Securities Exchange Commission (SEC) issues an emergency order temporarily prohibiting naked short selling in the securities of Fannie Mae, Freddie Mac, and primary dealers at commercial and investment banks.   

July 30, 2008 | Public Law 110-289   President Bush signs into law the Housing and Economic Recovery Act of 2008 (Public Law 110-289), which, among other provisions, authorizes the Treasury to purchase GSE obligations and reforms the regulatory supervision of the GSEs under a new Federal Housing Finance Agency.  

September 7, 2008 | Treasury Department Press Release   The Federal Housing Finance Agency (FHFA) places Fannie Mae and Freddie Mac in government conservatorship. The U.S. Treasury Department announces three additional measures to complement the FHFA’s decision: 1) Preferred stock purchase agreements between the Treasury/FHFA and Fannie Mae and Freddie Mac to ensure the GSEs positive net worth; 2) a new secured lending facility which will be available to Fannie Mae, Freddie Mac, and the Federal Home Loan Banks; and 3) a temporary program to purchase GSE MBS.   

September 15, 2008 | Bank of America Press Release    Bank of America announces its intent to purchase Merrill Lynch & Co. for $50 billion. 

September 15, 2008 | SEC Filing     Lehman Brothers Holdings Incorporated files for Chapter 11 bankruptcy protection.  

September 16, 2008 | Federal Reserve Press Release    The Federal Reserve Board authorizes the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG) under Section 13(3) of the Federal Reserve Act.     

September 16, 2008 | Reserve Funds Press Release   The net asset value of shares in the Reserve Primary Money Fund falls below $1, primarily due to losses on Lehman Brothers commercial paper and medium-term notes.    

September 17, 2008 | Treasury Department Press Release     The U.S. Treasury Department announces a Supplementary Financing Program consisting of a series of Treasury bill issues that will provide cash for use in Federal Reserve initiatives.   

September 17, 2008 | SEC Press Release   The SEC announces a temporary emergency ban on short selling in the stocks of all companies in the financial sector. 

September 19, 2008 | Treasury Department Press Release   The U.S. Treasury Department announces a temporary guaranty program that will make available up to $50 billion from the Exchange Stabilization Fund to guarantee investments in participating money market mutual funds.  

September 21, 2008 | Federal Reserve Press Release   The Federal Reserve Board approves applications of investment banking companies Goldman Sachs and Morgan Stanley to become bank holding companies.     

September 25, 2008 | Office of Thrift Supervision Press Release    The Office of Thrift Supervision closes Washington Mutual Bank. JPMorgan Chase acquires the banking operations of Washington Mutual in a transaction facilitated by the FDIC. 

See Sep. 2008 timeline at: http://www.foxbusiness.com/story/markets/economy/timeline-financial-crisis/

http://www.cnn.com/2008/BUSINESS/09/30/us.bailout.timeline/index.html

The FDIC agrees to enter into a loss-sharing arrangement with Citigroup on a $312 billion pool of loans, with Citigroup absorbing the first $42 billion of losses and the FDIC absorbing losses beyond that. In return, Citigroup would grant the FDIC $12 billion in preferred stock and warrants. 

October 3, 2008 | Federal Reserve Press Release    Wells Fargo announces a competing proposal to purchase Wachovia Corporation that does not require assistance from the FDIC. 

October 3, 2008 | H.R. 1424 | Public Law 110-343   Congress passes and President Bush signs into law the Emergency Economic Stabilization Act of 2008 (Public Law 110-343), which establishes the $700 billion Troubled Asset Relief Program (TARP).    

October 8, 2008 | Federal Reserve Press Release   The Federal Reserve Board authorizes the Federal Reserve Bank of New York to borrow up to $37.8 billion in investment-grade, fixed-income securities from American International Group (AIG) in return for cash collateral.    

October 8, 2008 | Federal Reserve Press Release   The FOMC votes to reduce its target for the federal funds rate 50 basis points to 1.50 percent. The Federal Reserve Board votes to reduce the primary credit rate 50 basis points to 1.75 percent.  

October 12, 2008 | Federal Reserve Press Release    The Federal Reserve Board announces its approval of an application by Wells Fargo & Co. to acquire Wachovia Corporation. 

October 14, 2008 | Treasury Department TARP Press Release | Additional Information   U.S. Treasury Department announces the Troubled Asset Relief Program (TARP) that will purchase capital in financial institutions under the authority of the Emergency Economic Stabilization Act of 2008. The U.S. Treasury will make available $250 billion of capital to U.S. financial institutions. This facility will allow banking organizations to apply for a preferred stock investment by the U.S. Treasury. Nine large financial organizations announce their intention to subscribe to the facility in an aggregate amount of $125 billion.    

October 24, 2008 | PNC Press Release   PNC Financial Services Group Inc. purchases National City Corporation, creating the fifth largest U.S. bank. 

October 28, 2008 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $125 billion in preferred stock in nine U.S. banks under the Capital Purchase Program. 

October 29, 2008 | Federal Reserve Press Release   The FOMC votes to reduce its target for the federal funds rate 50 basis points to 1.00 percent. The Federal Reserve Board reduces the primary credit rate 50 basis points to 1.25 percent.    

November 10, 2008 | Federal Reserve Press Release   The Federal Reserve Board approves the applications of American Express and American Express Travel Related Services to become bank holding companies.     

November 10, 2008 | Federal Reserve Press Release | Treasury Department Press Release   The Federal Reserve Board and the U.S. Treasury Department announce a restructuring of the government’s financial support of AIG. The Treasury will purchase $40 billion of AIG preferred shares under the TARP program, a portion of which will be used to reduce the Federal Reserve’s loan to AIG from $85 billion to $60 billion. The terms of the loan are modified to reduce the interest rate to the three-month LIBOR plus 300 basis points and lengthen the term of the loan from two to five years. The Federal Reserve Board also authorizes the Federal Reserve Bank of New York to establish two new lending facilities for AIG: The Residential Mortgage- Backed Securities Facility will lend up to $22.5 billion to a newly formed limited liability company (LLC) to purchase residential MBS from AIG; the Collateralized Debt Obligations Facility will lend up to $30 billion to a newly formed LLC to purchase CDOs from AIG (Maiden Lane III LLC). 

November 11, 2008 | Treasury Department Press Release   The U.S. Treasury Department announces a new streamlined loan modification program with cooperation from the Federal Housing Finance Agency (FHFA), Department of Housing and Urban Development, and the HOPE NOW alliance.    

November 12, 2008 | Treasury Department Press Release   U.S. Treasury Secretary Paulson formally announces that the Treasury has decided not to use TARP funds to purchase illiquid mortgage-related assets from financial institutions.    

November 14, 2008 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $33.5 billion in preferred stock in 21 U.S. banks under the Capital Purchase Program.    

November 17, 2008 | Lincoln National Press Release | Hartford Press Release | Genworth Press Release   Three large U.S. life insurance companies seek TARP funding: Lincoln National, Hartford Financial Services Group, and Genworth Financial announce their intentions to purchase lenders/depositories and thus qualify as savings and loan companies to access TARP funding. 

November 18, 2008 | Senate Hearing   Executives of Ford, General Motors, and Chrysler testify before Congress, requesting access to the TARP for federal loans. 

November 20, 2008 | Fannie Mae Press Release | Freddie Mac Press Release    Fannie Mae and Freddie Mac announce that they will suspend mortgage foreclosures until Jan 2009. 

November 21, 2008 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $3 billion in preferred stock in 23 U.S. banks under the Capital Purchase Program. 

November 23, 2008 | Federal Reserve Press Release | Summary of Terms   The U.S. Treasury Department, Federal Reserve Board, and FDIC jointly announce an agreement with Citigroup to provide a package of guarantees, liquidity access, and capital. Citigroup will issue preferred shares to the Treasury and FDIC in exchange for protection against losses on a $306 billion pool of commercial and residential securities held by Citigroup. The Federal Reserve will backstop residual risk in the asset pool through a non-recourse loan. In addition, the Treasury will invest an additional $20 billion in Citigroup from the TARP. 

November 25, 2008 | Federal Reserve Press Release   The Federal Reserve Board announces the creation of the Term Asset-Backed Securities Lending Facility (TALF), under which the Federal Reserve Bank of New York will lend up to $200 billion on a non-recourse basis to holders of AAA-rated asset-backed securities and recently originated consumer and small business loans. The U.S. Treasury will provide $20 billion of TARP money for credit protection.     

November 25, 2008 | Federal Reserve Press Release    The Federal Reserve Board announces a new program to purchase direct obligations of housing related government-sponsored enterprises (GSEs)—Fannie Mae, Freddie Mac and Federal Home Loan Banks—and MBS backed by the GSEs. Purchases of up to $100 billion in GSE direct obligations will be conducted as auctions among Federal Reserve primary dealers. Purchases of up to $500 billion in MBS will be conducted by asset managers.    

November 26, 2008 | Federal Reserve Press Release   The Federal Reserve Board announces approval of the notice of Bank of America Corporation to acquire Merrill Lynch and Company. 

December 2, 2008 | Federal Reserve Press Release   The Federal Reserve Board announces that it will extend three liquidity facilities, the Primary Dealer Credit Facility (PDCF), the Asset-Backed Commercial Paper Money Market Fund Liquidity Facility (AMLF), and the Term Securities Lending Facility (TSLF) through April 30, 2009. 

December 3, 2008 | SEC Press Release   The SEC approves measures to increase transparency and accountability at credit rating agencies and thereby ensure that firms provide more meaningful ratings and greater disclosure to investors. 

December 5, 2008 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $4 billion in preferred stock in 35 U.S. banks under the Capital Purchase Program. 

December 11, 2008 | NBER Press Release   The Business Cycle Dating Committee of the National Bureau of Economic Research announces that a peak in U.S. economic activity occurred in December 2007 and that the economy has since been in a recession. 

December 12, 2008 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $6.25 billion in preferred stock in 28 U.S. banks under the Capital Purchase Program.  

December 15, 2008 | Federal Reserve Press Release   The Federal Reserve Board announces that it has approved the application of PNC Financial Services to acquire National City Corporation. 

December 16, 2008 | Federal Reserve Press Release   The FOMC votes to establish a target range for the effective federal funds rate of 0 to 0.25 percent. The Federal Reserve Board votes to reduce the primary credit rate 75 basis points to 0.50 percent. The Federal Reserve Board also establishes the interest rates on required reserve balances and excess balances at 0.25 percent for reserve maintenance periods beginning December 18, 2008.     

December 19, 2008 | Treasury Department Press Release | General Motors Term Sheet | Chrysler Term Sheet   The U.S. Treasury Department authorizes loans of up to $13.4 billion for General Motors and $4.0 billion for Chrysler from the TARP. 

December 19, 2008 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $27.9 billion in preferred stock in 49 U.S. banks under the Capital Purchase Program. 

December 22, 2008 | Federal Reserve Press Release   The Federal Reserve Board approves the application of CIT Group Inc., an $81 billion financing company, to become a bank holding company. The Board cites “unusual and exigent circumstances affecting the financial markets” for expeditious action on CIT Group’s application.  

December 23, 2008 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $15.1 billion in preferred stock from 43 U.S. banks under the Capital Purchase Program.    

December 24, 2008 | Federal Reserve Press Release    The Federal Reserve Board approves the applications of GMAC LLC and IB Finance Holding Company, LLC (IBFHC) to become bank holding companies, on conversion of GMAC Bank, a $33 billion Utah industrial loan company, to a commercial bank. GMAC Bank is a direct subsidiary of IBFHC and an indirect subsidiary of GMAC LLC, a $211 billion company. The Board cites “unusual and exigent circumstances affecting the financial markets” for expeditious action on these applications. As part of the agreement, General Motors will reduce its ownership interest in GMAC to less than 10 percent. 

December 29, 2008 | Treasury Department Press Release    The U.S. Treasury Department announces that it will purchase $5 billion in equity from GMAC as part of its program to assist the domestic automotive industry. The Treasury also agrees to lend up to $1 billion to General Motors “so that GM can participate in a rights offering at GMAC in support of GMAC’s reorganization as a bank holding company.” This commitment is in addition to the support announced on December 19, 2008. 

December 30, 2008 | Federal Reserve Press Release   The Federal Reserve Board announces that it expects to begin to purchase mortgage-backed securities backed by Fannie Mae, Freddie Mac and Ginnie Mae under a previously announced program in early January 2009 (see November 25, 2008). 

December 31, 2008 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $1.91 billion in preferred stock from seven U.S. banks under the Capital Purchase Program.

2009

January 5, 2009 | Federal Reserve Bank of New York Press Release   The Federal Reserve Bank of New York begins purchasing fixed-rate mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae under a program first announced on November 25, 2008. 

January 9, 2009 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $4.8 billion in preferred stock from 43 U.S. banks under the Capital Purchase Program. 

January 12, 2009 | White House Press Release | More Information   At the request of President-Elect Obama, President Bush submits a request to Congress for the remaining $350 billion in TARP funding for use by the incoming administration. 

January 16, 2009 | Treasury Department CPP Transaction Report    The U.S. Treasury Department purchases a total of $1.4 billion in preferred stock from 39 U.S. banks under the Capital Purchase Program. 

January 16, 2009 | Federal Reserve Press Release | Term Sheet   The U.S. Treasury Department, Federal Reserve, and FDIC announce a package of guarantees, liquidity access, and capital for Bank of America. The U.S. Treasury and the FDIC will enter a loss-sharing arrangement with Bank of America on a $118 billion portfolio of loans, securities, and other assets in exchange for preferred shares. In addition, and if necessary, the Federal Reserve will provide a non-recourse loan to back-stop residual risk in the portfolio. Separately, the U.S. Treasury will invest $20 billion in Bank of America from the TARP in exchange for preferred stock. 

January 16, 2009 | Treasury Department Press Release    The U.S. Treasury Department, Federal Reserve and FDIC finalize terms of their guarantee agreement with Citigroup. (See announcement on November 23, 2008.) 

January 16, 2009 | Treasury Department Press Release   The U.S. Treasury Department announces that it will lend $1.5 billion from the TARP to a special purpose entity created by Chrysler Financial to finance the extension of new consumer auto loans. 

January 23, 2009 | Treasury Department CPP Transaction Report    The U.S. Treasury Department purchases a total of $326 million in preferred stock from 23 U.S. banks under the Capital Purchase Program.      

January 30, 2009 | Federal Reserve Press Release     The Board of Governors announces a policy to avoid preventable foreclosures on certain residential mortgage assets held, controlled or owned by a Federal Reserve Bank. The policy was developed pursuant to section 110 of the Emergency Economic Stabilization Act. 

January 30, 2009 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $1.15 billion in preferred stock from 42 U.S. banks under the Capital Purchase Program. 

February 6, 2009 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $238.5 million in preferred stock from 28 U.S. banks under the Capital Purchase Program.  

February 10, 2009 | Treasury Department Press Release | Fact Sheet    U.S. Treasury Secretary Timothy Geithner announces a Financial Stability Plan involving Treasury purchases of convertible preferred stock in eligible banks, the creation of a Public-Private Investment Fund to acquire troubled loans and other assets from financial institutions, expansion of the Federal Reserve’s Term Asset-Backed Securities Loan Facility (TALF), and new initiatives to stem residential mortgage foreclosures and to support small business lending. 

February 10, 2009 | Federal Reserve Press Release   The Federal Reserve Board announces that is prepared to expand the Term Asset-Backed Securities Loan Facility (TALF) to as much as $1 trillion and broaden the eligible collateral to include AAA-rated commercial mortgage-backed securities, private-label residential mortgage-backed securities, and other asset-backed securities. An expansion of the TALF would be supported by $100 billion from the Troubled Asset Relief Program (TARP). The Federal Reserve Board will announce the date that the TALF will commence operations later this month. 

February 13, 2009 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $429 million in preferred stock from 29 U.S. banks under the Capital Purchase Program. 

February 17, 2009 | American Recovery and Reinvestment Act of 2009    President Obama signs into law the “American Recovery and Reinvestment Act of 2009”, which includes a variety of spending measures and tax cuts intended to promote economic recovery. 

February 18, 2009 | Executive Summary   President Obama announces The Homeowner Affordability and Stability Plan.   The plan includes a program to permit the refinancing of conforming home mortgages owned or guaranteed by Fannie Mae or Freddie Mac that currently exceed 80 percent of the value of the underlying home. The plan also creates a $75 billion Homeowner Stability Initiative to modify the terms of eligible home loans to reduce monthly loan payments.  In addition, the U.S. Treasury Department will increase its preferred stock purchase agreements with Fannie Mae and Freddie Mac to $200 billion, and increase the limits on the size of Fannie Mae and Freddie Mac’s portfolios to $900 billion. 

February 24, 2009 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $365.4 million in preferred stock from 23 U.S. banks under the Capital Purchase Program. 

February 26, 2009 | FDIC Quarterly Banking Profile   The FDIC announces that the number of “problem banks” increased from 171 institutions with $116 billion of assets at the end of the third quarter of 2008, to 252 insured institutions with $159 billion in assets at the end of fourth quarter of 2008. The FDIC also announces that there were 25 bank failures and five assistance transactions in 2008, which was the largest annual number since 1993. 

February 26, 2009 | Fannie Mae Press Release   Fannie Mae reports a loss of $25.2 billion in the fourth quarter of 2008, and a full year 2008 loss of $58.7 billion. Fannie Mae also reports that on February 25, 2009, the Federal Housing Finance Agency submitted a request for $15.2 billion from the U.S. Treasury Department under the terms of the Senior Preferred Stock Purchase Agreement in order to eliminate Fannie Mae’s net worth deficit as of December 31, 2008. 

February 27, 2009 | Treasury Department Press Release   The U.S. Treasury Department announces its willingness to convert up to $25 billion of Citigroup preferred stock issued under the Capital Purchase Program into common equity. The conversion is contingent on the willingness of private investors to convert a similar amount of preferred shares into common equity. Remaining U.S. Treasury and FDIC preferred shares issued under the Targeted Investment Program and Asset Guarantee Program would be converted into a trust preferred security of greater structural seniority that would carry the same 8% cash dividend rate as the existing issue.    

February 27, 2009 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $394.9 million in preferred stock from 28 U.S. banks under the Capital Purchase Program. 

March 2, 2009 | AIG Press Release | Federal Reserve Press Release | Treasury Department Press Release   The U.S. Treasury Department and Federal Reserve Board announce a restructuring of the government’s assistance to American International Group (AIG). Under the restructuring, AIG will receive as much as $30 billion of additional capital from the Troubled Asset Relief Program (TARP). In addition, the U.S. Treasury Department will exchange its existing $40 billion cumulative preferred shares in AIG for new preferred shares with revised terms that more closely resemble common equity. Finally, AIG’s revolving credit facility with the Federal Reserve Bank of New York will be reduced from $60 billion to no less than $25 billion and the terms will be modified. In exchange, the Federal Reserve will receive preferred interests in two special purpose vehicles created to hold the outstanding common stock of two subsidiaries of AIG: American Life Insurance Company and American International Assurance Company Ltd. Separately, AIG reports a fourth quarter 2008 loss of $61.7 billion, and a loss of $99.3 billion for all of 2008. 

March 6, 2009 | Treasury Department CPP Transaction Report    The U.S. Treasury Department purchases a total of $284.7 million in preferred stock from 22 U.S. banks under the Capital Purchase Program. 

March 11, 2009 | Freddie Mac Press Release    Freddie Mac announces that it had a net loss of $23.9 billion in the fourth quarter of 2008, and a net loss of $50.1 billion for 2008 as a whole. Further, Freddie Mac announces that its conservator has submitted a request to the U.S. Treasury Department for an additional $30.8 billion in funding for the company under the Senior Preferred Stock Purchase Agreement with the Treasury. 

March 13, 2009 | Treasury Department CPP Transaction Report    The U.S. Treasury Department purchases a total of $1.45 billion in preferred stock from 19 U.S. banks under the Capital Purchase Program. 

March 18, 2009 | Federal Reserve Bank of New York Press Release    The Federal Reserve Bank of New York releases more information on the Federal Reserve’s plan to purchase Treasury securities. The Desk will concentrate its purchases in nominal maturities ranging from 2 to 10 years. The purchases will be conducted with the Federal Reserve’s primary dealers through a series of competitive auctions and will occur two to three times a week. The Desk plans to hold the first purchase operation late next week. 

March 19, 2009 | Treasury Department Press Release   The U.S. Department of the Treasury announces an Auto Supplier Support Program that will provide up to $5 billion in financing to the automotive industry. The Supplier Support Program will provide selected suppliers with financial protection on monies (“receivables”) they are owed by domestic auto companies and the opportunity to access immediate liquidity against those obligations. Receivables created with respect to goods shipped after March 19, 2009, will be eligible for the program. Any domestic auto company is eligible to participate in the program. Any U.S.-based supplier that ships to a participating auto manufacturer on qualifying commercial terms may be eligible to participate in the program. 

March 20, 2009 | Treasury Department CPP Transaction Report    The U.S. Treasury Department purchases a total of $80.8 million in preferred stock from 10 U.S. banks under the Capital Purchase Program.     

March 23, 2009 | Federal Reserve Press Release   The Federal Reserve and the U.S. Treasury issue a joint statement on the appropriate roles of each during the current financial crisis and into the future, and on the steps necessary to ensure financial and monetary stability. The four points of agreement are 1) The Treasury and the Federal Reserve will continue to cooperate in improving the functioning of credit markets and fostering financial stability; 2) The Federal Reserve should avoid credit risk and credit allocation, which are the province of fiscal authorities; 3) The need to preserve monetary stability, and that actions by the Federal Reserve in the pursuit of financial stability must not constrain the exercise of monetary policy as needed to foster maximum sustainable employment and price stability; and 4) The need for a comprehensive resolution regime for systemically critical financial institutions. In addition, the Treasury will seek to remove the Maiden Lane facilities from the Federal Reserve’s balance sheet. 

March 26, 2009 | Treasury Department Press Release   The U.S. Treasury Department outlines a framework for comprehensive regulatory reform that focuses on containing systemic risks in the financial system. The framework calls for assigning responsibility over all systemically-important firms and critical payment and settlement systems to a single independent regulator. Further, it calls for higher standards on capital and risk management for systemically-important firms; for requiring all hedge funds above a certain size to register with a financial regulator; for a comprehensive framework of oversight, protection and disclosure for the over-the-counter derivatives market; for new requirements for money market funds; and for stronger resolution authority covering all financial institutions that pose systemic risks to the economy. 

March 27, 2009 | Treasury Department CPP Transaction Report   The U.S. Treasury Department purchases a total of $193 million in preferred stock from 14 U.S. banks under the Capital Purchase Program. 

April 3, 2009 | Treasury Department CPP Transaction Report    The U.S. Treasury purchases a total of $54.8 million in preferred stock from 10 U.S. banks under the Capital Purchase Program. 

April 10, 2009 | Treasury Department CPP Transaction Report    The U.S. Treasury purchases a total of $22.8 million in preferred stock from 5 U.S. banks under the Capital Purchase Program. 

April 17, 2009 | Treasury Department CPP Transaction Report   The U.S. Treasury purchases a total of $40.9 million in preferred stock from 6 U.S. banks under the Capital Purchase Program.  

April 24, 2009 | Treasury Department CPP Transaction Report   The U.S. Treasury purchases a total of $121.8 million in preferred stock from 12 U.S. banks under the Capital Purchase Program. 

May 1, 2009 | Treasury Department CPP Transaction Report    The U.S. Treasury purchases a total of $45.5 million in preferred stock from 7 U.S. banks under the Capital Purchase Program. 

May 15, 2009 | Treasury Department CPP Transaction Report   The U.S. Treasury purchases a total of $107.6 million in preferred stock from 14 U.S. banks under the Capital Purchase Program. 

May 20, 2009 | FDIC Press Release    President Obama signs the Helping Families Save Their Homes Act of 2009, which temporarily raises FDIC deposit insurance coverage from $100,000 per depositor to $250,000 per depositor.  The new coverage at FDIC-insured institutions will expire on January 1, 2014, when the amount will return to its standard level of $100,000 per depositor for all account categories except IRAs and other certain retirement accounts.  This action supersedes the October 3, 2008 changes.  

May 21, 2009 | FDIC Press Release   The Federal Deposit Insurance Corporation (FDIC) announces the approval of GMAC Financial Services to participate in the Temporary Liquidity Guarantee Program (TLGP).  GMAC will be allowed to issue up to $7.4 billion in new FDIC-guaranteed debt.  

May 22, 2009 | Federal Reserve Press Release    The Federal Reserve Board announces the adoption of a final rule that will allow bank holding companies to include in their Tier 1 capital without restriction senior perpetual preferred stock issued to the U.S. Treasury Department under the Troubled Asset Relief Program (TARP). 

May 22, 2009 | Treasury Department CPP Transaction Report    The U.S. Treasury purchases a total of $108 million in preferred stock from 12 U.S. banks under the Capital Purchase Program. 

May 27, 2009 | FDIC Quarterly Banking Profile   The FDIC announces that the number of “problem banks” increased from 252 insured institutions with $159 billion in assets at the end of fourth quarter of 2008, to 305 institutions with $220 billion of assets at the end of the first quarter of 2009. The FDIC also announces that there were 21 bank failures in the first quarter of 2009, which is the largest number of failed institutions in a quarter since the first quarter of 1992. 

May 29, 2009 | Treasury Department CPP Transaction Report   The U.S. Treasury purchases a total of $89 million in preferred stock from 8 U.S. banks under the Capital Purchase Program. 

June 1, 2009 | GM Press Release   As part of a new restructuring agreement with the U.S. Treasury and the governments of Canada and Ontario, General Motors Corporation and three domestic subsidiaries announce that they have filed for relief under Chapter 11 of the U.S. Bankruptcy Code. 

June 5, 2009 | Treasury Department CPP Transaction Report    The U.S. Treasury purchases a total of $40 million in preferred stock from 3 U.S. banks under the Capital Purchase Program. 

June 9, 2009 | Treasury Department Press Release    The U.S. Treasury Department announces that 10 of the largest U.S. financial institutions participating in the Capital Purchase Program have met the requirements for repayment established by the primary federal banking supervisors. If these firms choose to repay the capital acquired through the program, the Treasury will receive up to $68 billion in repayment proceeds. 

June 12, 2009 | Treasury Department CPP Transaction Report     The U.S. Treasury purchases a total of $39 million in preferred stock from 7 U.S. Banks under the Capital Purchase Program. 

June 17, 2009 | U.S. Treasury Department Regulatory Reform Proposal     The U.S. Treasury Department releases a proposal for reforming the financial regulatory system. The proposal calls for the creation of a Financial Services Oversight Council and for new authority for the Federal Reserve to supervise all firms that pose a threat to financial stability, including firms that do not own a bank. 

June 19, 2009 | Treasury Department CPP Transaction Report   The U.S. Treasury purchases a total of $84.7 million in preferred stock from 10 U.S. banks under the Capital Purchase Program. 

June 25, 2009 | AIG Press Release    American International Group (AIG) announces that it has entered into an agreement with the Federal Reserve Bank of New York to reduce the debt AIG owes the Federal Reserve Bank of New York by $25 billion. The Federal Reserve Bank of New York will receive preferred interests of $16 billion and $9 billion, respectively, in two new special purpose vehicles holding the equity of AIG subsidiaries American International Assurance Company and American Life Insurance Company. 

June 30, 2009 | Treasury Department Press Release   The U.S. Treasury proposes a bill to Congress that would create a new Consumer Financial Protection Agency. The bill would transfer all current consumer protection functions of the Federal Reserve System, Comptroller of the Currency, Office of Thrift Supervision, FDIC, FTC, and the National Credit Union Administration to the new agency. In addition, Treasury proposes amendments to the Federal Trade Commission Act with regards to coordination with the proposed Consumer Financial Protection Agency. 

To view the entire history, go to:  http://timeline.stlouisfed.org/index.cfm?p=timeline 

As you can see from the information above, the government has its’ fingerprints all over this mess. It can and should be argued that their attempt to manipulate this situation made it worse. Additionally, the use of taxpayer money to bailout through loans and buying ownership stakes in private businesses is unconstitutional. Especially when it is done by turning on the presses to print money we do not have. As a result we have accumulated massive public debt which has the potential to bankrupt the country. 

I apologize for the length of this post but to appreciate what has happened you must look at the details. The next installment in this series will focus on the players and their motivation for participating in this drama.

Quick Hits…..More “Bright Ideas” and other government idiocracy

“If we’re looking for the source of our troubles, we shouldn’t test people for drugs, we should test them for stupidity, ignorance, greed and love of power.”
P. J. O’Rourke   

President Obama announces new light bulb standards…

“I know light bulbs may not seem sexy, but this simple action holds enormous promise because 7 percent of all the energy consumed in America is used to light our homes and businesses,” the president said, standing alongside Energy Secretary Steven Chu at the White House. 

Obama said the new efficiency standards he was announcing for lamps would result in substantial savings between 2012 and 2042, saving consumers up to 4 billion annually, conserving enough energy to power every U.S. home for 10 months, reducing emissions equal to the amount produced by 166 cars a year, and eliminating the need for as many as 14 coal-fired power plants. 

The president also said he was speeding the delivery of $346 million in economic stimulus money to help improve energy efficiency in new and existing commercial buildings. 

The White House is working to keep energy in the spotlight even as Congress takes a break this week for the July 4 holiday. Obama has spent the past few days pressuring the Senate to follow the House while also seeking to show that the administration is making quick, clear progress on energy reform without legislation. 

Still, in an interview with a small group of reporters, Obama energy adviser Carol Browner said: “I am confident that comprehensive energy legislation will pass the Senate.” But she repeatedly refused to say exactly when the White House expected the Senate to pass the measure, and she wouldn’t speculate on whether Obama would have legislation sent to his desk by year’s end. 

The administration already had released new standards on commercial refrigeration. Lamps were next. (Source: Fox News)

Now that the President got the ball rolling, NJ has jumped on the band wagon with “Project Porch Light”. Free light bulbs for everyone….. Read more at:

http://www.projectporchlight.com/

This apparently is a “huge national issue” – light bulb efficiency, good thing we have that out of the way, now maybe we can focus on; job creation, fixing the economy, improving national defense, border security and reducing the national debt.

“It is not an arrogant government that chooses priorities; it’s an irresponsible government that fails to choose.” – Tony Blair 

Barney Frank wants to spend the repaid TARP money again instead of returning the money to the Treasury to pay down public debt…

On June 27^th, Rep. Barney Frank (D) MA, introduced new legislation to divert repaid TARP funds to new Democrat supported housing initiatives. His new bill is called TARP for Main Street Act of 2009.  According to the original bill recovered funds “shall be paid into the general fund of the Treasury for reduction of the public debt.” However, Barney wants to spend it again right away and ignore the requirements of the bill. This is becoming typical behavior for the Democrats these days.

The proposed bill breaks down as follows; take $1 billion and use it to create a trust fund for low-income rental housing which Frank has wanted for a long time.  (This unfunded measure was part of last year’s bailout of Fannie Mae and Freddie Mac.)  Another $1.5 billion would be used to set up a “neighborhood stabilization” fund.  Critics have charged that these measures might allow federal dollars to be distributed to activist groups such as ACORN. The thought of any more of our money ending up in the hand of those crooks is unthinkable!

The bill also includes $2 billion to subsidize individuals with delinquent mortgages and another $2 billion to “stabilize multifamily properties that are in default or foreclosure.”

“If stupidity got us into this mess, then why can’t it get us out?” – Will Rogers

Even worse, despite the near economic meltdown that was triggered by the mortgage defaults last year, Rep. Frank and N.Y. Rep. Anthony Weiner have sent a letter to the heads of Fannie and Freddie recommending that they lower lending standards for condo buyers. Wasn’t that how we got into this mess in the first place?

After blaming the current crisis on a lack of appropriate regulation and lax lending standards which resulted in bad loans that should not have been approved, Rep. Frank wants Fannie and Freddie to provide more aggressive (lower) lending standards again. These lower standards would specifically apply to condo developments with a high percentage of unsold units or high delinquency rates.

These guys are unbelievable! If we don’t get them out of office, their policies will destroy our economy. Of course, since social reengineering and redistribution of wealth are on their agenda that might just be part of the plan. Do you really want to live in a socialist, possibly even a fascist country? Think about it!

To read more go to:

http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/Barney-Frank–49649362.html

http://online.wsj.com/article/SB124580784452945093.html 

Gov. Schwarzenegger considers temporarily closing state parks to save money during California budget crisis… Feds threaten to seize parks if the plan is approved 

“The mystery of government is not how Washington works but how to make it stop.”
P. J. O’Rourke  

Scrambling to find ways to reduce operating costs Gov. Arnold Schwarzenegger has proposed closing 220 state parks to save $143 million. The California Legislature is considering the move to reduce the $26 billion budget deficit.

However, six parks on the list are on land that was formerly federal property and as a result the federal government could seize the land if the parks are closed. The Governor was recently warned that this was a possibility by National Park Service Regional Director Jonathan Jarvis. Schwarzenegger was also informed that the closures could result in the loss of other federal funding of the California Parks budget. 

While I have virtually no sympathy for California and the mess they find themselves in, I can’t help but be annoyed at the federal government’s position on this. It seems that no matter what Schwarzenegger tries to do to save money the Feds step in to tell him why he can’t do it. Remember when he tried to renegotiate state contracts with SEIU? That was  immediately shot down by the White House with funding cut threats. It makes you wonder if they really want California to solve their problems without Federal intervention. This type of interference is exactly the reason there needs to be separation between state and federal government. If state governments only took federal funding for things that are directly related to federal projects such as infrastructure and defense; they would be able to operate under the states’ rights provisions in the Constitution. Instead, the long strings attached to federal funds reduce the sovereignty states’ rights would otherwise provide. 

The six parks are; Angel Island, a former federal military and immigration facility; the top of Mount Diablo,  once a Navy microwave relay station; Point Sur State Park in coastal Big Sur; and three beaches Fort Ord Dunes near Monterey, Point Mugu State Park near Malibu, and Border Fields along the Mexican border. All prime California real estate; some is even beach front – Hmmm …. Maybe, this is just an opportunity for a federal land grab! 

After all, the way the administration is growing the size of the federal government; it might outgrow D.C. before we know it. Since so many of the crazies in charge are from the Golden State (Pelosi, Waxman, Feinstein and Boxer to name a few), maybe the real plan is to force the state into bankruptcy, buy it with taxpayer money, nationalize it and set up D.C. West. I mean think about it, the House and the Senate could just meet via video conference (D.C. East and West); each representative could travel to the closest site resulting in huge travel savings. How green would that be?  – (Plus Pelosi wouldn’t have to keep bugging the military for use of a jet) 

Best jobs ever… all play; no work, no worries 

(Karen Matthews, Associated Press, N.Y.) Hundreds of New York City public school teachers accused of offenses ranging from insubordination to sexual misconduct are being paid their full salaries to sit around all day playing Scrabble, surfing the Internet or just staring at the wall, if that’s what they want to do.

Because their union contract makes it extremely difficult to fire them, the teachers have been banished by the school system to its “rubber rooms” — off-campus office space where they wait months, even years, for their disciplinary hearings.

The 700 or so teachers can practice yoga, work on their novels, paint portraits of their colleagues — pretty much anything but school work. They have summer vacation just like their classroom colleagues and enjoy weekends and holidays through the school year.

Because the teachers collect their full salaries of $70,000 or more, the city Department of Education estimates the practice costs the taxpayers $65 million a year. The department blames union rules.

“It is extremely difficult to fire a tenured teacher because of the protections afforded to them in their contract,” spokeswoman Ann Forte said.

City officials said that they make teachers report to a rubber room instead of sending they home because the union contract requires that they be allowed to continue in their jobs in some fashion while their cases are being heard. The contract does not permit them to be given other work.

Of course, you probably won’t be surprised to find out that this practice also goes on in California…

The Los Angeles district, the nation’s second-largest school system with 620,000 students, behind New York’s 1.1 million, said it has 178 teachers and other staff members who are being “housed” while they wait for misconduct charges to be resolved. To read the full story, go to: http://news.yahoo.com/s/ap/20090622/ap_on_re_us/us_rubber_rooms

My guess is that L.A.’s 178 “special cases” are costing them about $25 million. You would think that if these people are going to get paid they should have to perform some productive work. Does anyone believe that there is nothing productive that they could be doing, if the contract was ammended? So why isn’t someone correcting this? I am sure if anyone tried to step in and fix the contract, the administration would step in to stop it. These days, the best jobs are union jobs. At least it seems, they are the only ones the government is interested in protecting. 

“Let’s reintroduce corporal punishment in the schools – and use it on the teachers.”

P. J. O’Rourke  

 

 

 

A Fourth of July Post, Sarah Palin…. the liberal media, political assassins, principles, and leadership

“One of the key problems today is that politics is such a disgrace; good people don’t go into government”. – Donald Trump

Today is the Fourth of July, Independence Day in America. Today is a day to reflect on our country, the principles on which it was founded, and all the brave men and women who have led us throughout our history to be the greatest nation in the world.

“Come forward, then, and give us the aid of your talents and the weight of your character towards the new establishment of republicanism.” –Thomas Jefferson

As I watched the news last night, I couldn’t help but feel a sense of sadness as Gov. Palin announced that she would not seek another term as governor of Alaska and would end her current term early, because, even though she wanted to continue, she felt it to be in the best interest of her state.

The cynical among us will say it is because she wants to run for President in 2012; others will say it proves she is not ready for higher office. However, I believe her when she says she’s doing it because the political environment in Alaska has changed. Her national status has made it very difficult to be effective due to the continued attacks from the media and political enemies she made while cleaning up Alaska’s ethical issues early in her term as Governor. She’s become a polarizing figure, and multiple ethics complaints have been filed against her with the state personnel board. Her enemies have attacked her using the very ethics rules she set in place. As she pointed out, it cost nothing to make false accusations and keep her busy defending herself rather than working on the state’s business.

The 15 complaints have been dismissed with no findings of wrongdoing, although one complaint led to Palin’s agreement to reimburse the state about $8,100 for costs associated with trips taken with her children. The state says it has spent nearly $300,000 to investigate the complaints. Palin says she has racked up more than $500,000 in legal fees fighting them, and it has wasted over $2 million in state funds when you count the time lost by Palin and her staff to answer all the charges. To her credit, Gov. Palin says she is stepping down because she doesn’t need the title of Governor to serve her state. She also said she will not be party to allowing state resources to be wasted just so she can sit in the governor’s chair. I guess she fooled a lot of her detractors. She was willing to give up something important to her for the greater good. This is a concept to few political leaders are familar with these days.

This is easy to believe when you consider the success she has had as governor. Sarah Palin has reformed the code of ethics for Alaska state politicians. She has struck landmark deals with the gas and oil companies operating in Alaska to return a portion of their profits to the state and its citizens, resulting in extremely low tax rates. She even threw out all kinds of unnecessary government perks, including the governor’s private jet. Like her or not, Sarah Palin is a woman of substance, which is why yesterday should be a sad day for all Americans who value the character of their leaders. 

 “I have the consolation of having added nothing to my private fortune during my public service, and of retiring with hands clean as they are empty.” – Thomas Jefferson

Whether you agree with Sarah Palin’s political point of view or not, any fair-minded American should be appalled at the way the Alaskan governor has been treated by the media since being announced as John McCain’s Vice Presidential running mate last August. You can attack her policy positions, criticize her experience (although if you supported Obama, you are a hypocrite), say she’s too folksy, and argue about why you don’t think she is ready to be Vice President. All of this is fair game. However, the relentless personal attacks on her intellect, her mannerisms, her sex appeal, her family, her way of life, and her religious beliefs are over the top. Never has an American political candidate received such embarrassingly vicious treatment from the media. 

I have written two blogs on leadership and principles in the past two months. A large portion of those blogs apply to Gov. Palin’s situation. So I’m going to pull in a few excerpts for reference.

“Whenever a man has cast a longing eye on offices, rottenness begins in his conduct.”  – Thomas Jefferson

It seems that politics today is more about winning the election than it is about a commitment to principles and values. Ideally, candidates in a political contest would debate clearly articulated points of differentiation, providing the voters a choice between approaches to problem solving and philosophies of governing. 

However, the political strategists of the day seem content with and adept at blurring those lines. Combine that with a little help from the media and often you don’t know who you’re really electing until the election is over and the candidate is in office. This, by the way, is not a shot at any single elected official but a comment on the sad state of the mass media and our political system. Both parties are guilty! 

After the 2008 election, the pundits started to debate what the Republicans needed to do to regain control of the White House and Congress:  They discussed strategies to recruit younger, better-looking, energetic candidates. They suggested a need for candidates who had a better TV presence and were more gifted speakers. One of the esteemed panelists even went as far as to say that the content of the message doesn’t matter as much as how it’s delivered. The debate was about style over substance and whether the party should move more to the center or more to the right. I couldn’t help but think that political parties are supposed to represent an ideology that is based on a system of values.

I am not sure what horrifies me more; the fact that the pundits might be right or that we’ve become a nation of media junkies. It seems we’re no longer capable of telling the difference between a commercial and the program. Are we being told what to think by our televisions?

Webster offers a couple of variations on the definition of a “politician,” but the one that seems most fitting these days is “one who seeks partisan or personal gain often by crafty or dishonest means.”

In recent years it seems we’ve had a difficult time attracting anyone other than “politicians” to take leadership roles in our government; real leaders want less and less to do with elected office. This is most likely due to the harsh light cast on those in public life. The level of personal scrutiny that an individual must endure to embark on the path to public service is enough to scare off most sane people.

 Successful, intelligent, and ethical individuals who have lived a “normal” life and made common mistakes shy away from throwing their hat in the ring. The personal sacrifices that they and their families must make are often too steep a price to pay for the privilege of serving ones’ country, state, or community.

Ironically, character is often what is most lacking in today’s political leaders. Yet the very mistakes, trials, and tribulations that become the subject of scrutiny are often the life -changing experiences that build character and moral fiber. 

Today’s politicians have become largely a collection of actors playing the part of leaders. They have self-serving agendas that are equally split between their personal goals and repaying debts to those who supported their candidacy. Most are career politicians who have made a job out of “public service.” 

How do we change this trend? How do we encourage real leaders and statesmen to get involved in government again? Let’s start electing real people with character, ethics, morals, and flaws, who were forged in the real world under fire.

We need:

• principled men and women who are willing to represent the values of their constituents and do what’s best for their country, their state, or community;
• true leaders that will not mortgage our future for short-term victories or sell their values to the highest bidder in exchange for support on an item they want; and
• leaders who have common sense, love their country, and believe in the American dream.

The candidates aren’t the only ones who need to have values and principles. As voters, our responsibilities are the same as the candidate’s. We need to invest enough time in the process that we have well thought-out and defined positions on the issues. We also have a responsibility to understand, at least conceptually, how the candidate will solve a problem or address an issue, if elected. 

This reminds me of a lyric from an old country song that goes right to the heart of the matter: it goes, “You’ve got to stand for something or you’ll fall for anything.” Unfortunately, far too many of us don’t make the time to study the issues. Instead we get our news in soundbites. We vote for what sounds “good” without ever knowing if it is good. In the end, the only people who can hold the candidates accountable are the voters. This accountability should start on the campaign trail, not once they are in office. There should be no surprises once elected. If we understand the issues and set expectations of our elected officials, we won’t have to worry about “falling for anything.” 

So in the end the pundits got it all wrong! It is not about if the Republicans should move right, center, or left. It’s not about whether they should be more moderate or more conservative. It is about candidates from both parties deciding what they stand for and sticking to it. Both parties need to use the election process to honestly sell their views and let the voters decide.

I hope this is not the last hurrah for Sarah Palin. We need more down-to-earth, regular folks with common sense to seek office and help lead this country back to greatness. We need leaders that don’t sell out their principles to get in office and then rediscover them once elected. That is corrupt, and corruption will destroy trust in the government. When the government loses the trust of the people, our country will cease to be great. 

 I’ll close with the wisdom of Thomas Jefferson:

  “Public offices were not made for private convenience.” – Thomas Jefferson

  “We in America do not have government by the majority. We have government by the majority who participate.” – Thomas Jefferson

Two Bills that Kill…(the economy, jobs, and our country)

“I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.  

It is incumbent on every generation to pay its own debts as it goes. A principle which if acted on would save one-half the wars of the world”.

 – Thomas Jefferson 

We are parked at the edge of a cliff. We have a choice – slip the car into reverse and back away or hit the gas and plunge to the canyon floor. We are at the most dangerous point in our history in the last fifty years. We must stop these bills before we are on a road from which turning back might be impossible. Remember, this is a multi pronged strategy by the democrats. One prong is the proposed legislation, the other is the usurping of unconstitutional power through the Czars, government agencies, nationalizing businesses and financial thuggery by the Federal Reserve to move the agenda forward if legislation fails.

“The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government – lest it come to dominate our lives and interests.”- Patrick Henry

These bills must be stopped and they must be stopped now. Here is a quick recap of two pending bills before Congress that will kill jobs, drive up taxes, increase the cost of living, feed inflation and redistribute wealth. 

Cap & Tax  (The Waxman Markey Climate Change Bill)

This is going to essentially be the biggest “disguised tax” in U.S. history. President Obama promised no new taxes for 95% of Americans. This bill is at its’ heart a tax on energy. While defenders say it only taxes dirty, carbon based energy turns out that is about 90% of the energy used in this country. An average American will see their energy bills increase between $1000 & $2000 per year depending on where they live and how their energy is produced. 

This bill will also result in significant job losses as energy companies struggle to become compliant with new government regulations and businesses struggle with the higher price of energy. Some analysts are saying job losses will average 2.5 million per year for two to three years. 

Another thing that should worry us all… after a draft of the bill had been made easily accessible to the public for over a month, just hours before the bill was voted on 350 pages of amendments were tacked on containing God knows what! Another bill passed that nobody read completely after the last minute additions – I’m scared, are you? 

However, while the government holds U.S. businesses to these ridiculous standards. Meanwhile, the Chinese are polluting the hell out of the planet and kicking our ass at manufacturing. Good thing global warming is a myth! 

Ask yourself why as an American, your standard of living should be lowered and your way of life changed to finance this nonsense while the rest of the world is free to continue on their merry way, doing what they want and kicking our butts in the process?

We need to focus on our Senators and send them a clear message that we do not want this bill to pass. There is no time to waste it needs your immediate attention. To learn more about The Waxman Markey Climate Change Bill or Cap & Trade check my blog category under Global Warming for several very specific posts.

Remember these famous words from Emma Brindal, a climate justice campaigner coordinator for Friends of the Earth: “A climate change response must have at its heart a redistribution of wealth and resources.” 

Employees Free Choice Act/ Card Check 

The Employee Free Choice Act, or “card check,” has been introduced in the past three Congresses, but it always failed to win the 60 votes needed to pass controversial legislation in the Senate.

Now there is real trouble on the horizon – his name is Al Franken. Today the Minnesota Supreme Court confirmed the results of the controversial Senate race declaring Al Franken the winner. With his certification complete, the democrats might finally have enough votes to push this bill through as he becomes the 60^th member of the democratic Senate caucus.

The proposed law gives workers a choice of forming a union through majority sign-up (“card check”) or an election by secret ballot. Critics warn that this will lead to employee intimidation to sign cards and will deny individuals the right to a secret ballot. The secret ballot has been the safety valve in the organizing process. Employees could go along with process to allow a vote by signing the organizing petition but had the safety of the secret ballot to protect their individual vote. As a manufacturing manager for 30 years I have had a front row seat to union organizing efforts twice. In both cases, employees were under tremendous peer pressure to sign the petition. However, both times the union was defeated by the secret ballot. It sure seemed like the process worked as it was supposed to each time. The other major criticism is that it will kill jobs because small to medium size employers will not be able to afford unionized shops, in many this will drive them out of business. The business community is geared up to fight the bill.

Supporters say the legislation will improve wages, benefits, and working conditions by helping workers form unions.

“Voting is the most precious right of every citizen, and we have a moral obligation to ensure the integrity of our voting process.” – Hillary Clinton

Shouldn’t this apply towards something as important as a union election too? After all the signing the card means that you want to hear more. After both sides present their case you go cast your vote in private.

So why do we need this law? First, it will help the unions get easier victories and build their dwindling membership. Oh, yeah and the labor unions strongly support the democrats. This is as much about politics as it is about employee’s rights.

There is one more aspect to the bill that is equally as troubling as the secret ballot issue. That is the method by which negotiations would be handled under the bill. If the employer and the union did not reach a deal in 120 days, a government arbitration panel could intervene and take over the negotiations.

For many, the government arbitration clause looks to be a deal breaker. As long as that provision is in the bill, said Sen. Orrin Hatch of Utah, “I don’t know how anybody can talk compromise.” He added, “If it wasn’t for the political power of the national unions, this wouldn’t have a chance. But they are powerful.”

Ironically, during the 2008 elections anti card check ads featured the head liberal of his time – former S.D. Sen. George McGovern as their spokesman. Even George could not get behind elimination of the secret ballot to protect the privacy of each employee. We must fight this legislation. With unemployment already tracking at 9.4% nationally, we can not afford more job loss. It’s bad for business, it is un-American and since when are we against a secret ballot? Write your Senator and tell them –just say no!

Unfortunately, Congress is currently littered with a variety of proposed legislation that supports the administration’s social reengineering agenda. We must be vigilant in identifying these bills and fighting them. After all, the only thing at stake is the American Dream!

“I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it.

Most bad government has grown out of too much government”. – Thomas Jefferson