At this point, there is absolutely nothing that our so called Treasurer, Timothy Geithner and Chairman of the Federal Reserve, Ben Bernanke and the Obama Administration are doing that surprises me anymore, when it comes to ensuring that Wall St./the Banks will be allowed to continue on their nefarious raping and pillaging of our nation and its taxpayers.
Last week, The Bernanke informed the peasants of the USA that he and his pals had decided in an official report that there were no wrongful foreclosures by the Banks, despite the fact that there is mountains of evidence to the contrary.
This week, Geithner has decided that he will be the first to make certain there will be no transparency whatsoever, for the continuing to exempt the $4 trillion-a-day foreign-currency market from key provisions of the Dodd-Frank Act requiring greater transparency in the trading of derivatives. This is huge people, and it is the continued dangerous dictatorship, that Robert Kuttner has spoken about to make it clear 'who they are working for,' and who in fact they represent.
Geithner and Bernanke represent and work for the Banking cartel, that has destroyed out national and international markets and economies, and have caused worldwide revolution and mayhem. Make no mistake about that.
This move by Geithner, is yet another signal that the exclusive coup d'etat Oligarchy Club, is not going anywhere because 'they' don't give a rat's ass. They are getting away with the crime of the century, as sanctioned by AG Holder, his boss, President Obama, our Congress, and the rest of the paid off ne'er-do-wells in both parties. This move by Geithner is truly an outrageous, 'in your face' move and to think as one Kossack recently stated regarding 'who' we put into office as a Democrat to supposedly right the ship, to supposedly lift up the Middle Class and poor, to supposedly at least pretend that he wasn't favoring Wall St./the Banks whose criminal behavior simply continues:
A million people show up for his inauguration and he's apparently the only one that didn't understand why they were there. by Comanchegyrl
Now it is starting to make sense as to how both Geithner and financial-industry lobbied so extensively in order to give the Treasury secretary the right to create this loophole. And just so we are clear on what this means, this will be the first major decision to signal whether regulators will act to strengthen or weakens the reforms, of Dodd-Frank as defined by the executive branch.
This decision by Geithner will not only weaken what little reforms we were able to obtain, but it will also enable Wall St./the Banks and the Federal Reserve to act in secrecy, with no transparency, and we all know how well that worked out, don't we?
Sen. Maria Cantwell, one of the most effective advocates for strong derivatives regulation during the Dodd-Frank debates, says, "I can't believe the first decision the administration would make to carry out Dodd-Frank would be an anti-transparency decision. The idea that the foreign-exchange markets are not at risk is preposterous -- we now know that they required multitrillion-dollar bailouts. Anytime you have a lack of transparency, there is potential for abuse."
Maria Cantwell, can't believe it, well I sure as hell can. The lies coming out of Bernanke regarding his recent rubber stamp from covered up fraud in the mortgage industry last week? That there were no illegal foreclosures?
Abuse of derivatives was at the absolute center of the financial meltdown. The collateralized debt obligations that were built on pyramids of sketchy mortgages whose value collapsed were, of course, derivatives. The mortgages themselves had been converted into highly leveraged, artificial securities -- the essence of a derivative. So were the credit-default swaps that took down American International Group. With a derivative, a tiny amount of capital can control a much larger financial bet, and until the Dodd-Frank reforms, the derivatives were constructed and traded privately, with no regulator scrutiny. If such bets go wrong, massive losses ensue. And in a generalized loss of confidence, even well-capitalized institutions fail to accept each other's credits. Lehman Brothers collapsed when other large institutions refused to lend it money. The bankruptcy proceeding of Lehman -- the one large financial institution that the Treasury refused to rescue in the carnage of September 2008 -- reveals that when Lehman went bust, it was the "counterparty" or guarantor of some 930,000 derivative contracts, including credit-default swaps, interest rate, foreign exchange, and energy swaps. When Lehman went down, the party on the other side of the transaction was left holding the bag, hence the need for massive Fed intervention.
Previously confidential information recently made public by the Federal Reserve Board reveals that in the aftermath of the collapse of Lehman Brothers in September 2008, the Fed pumped in $5.4 trillion over a three-month period to keep the foreign-currency market from collapsing. The Fed's peak injection of dollars on any one day occurred on Oct. 22, 2008, when it reached $823 billion, according to a Wall Street watchdog group's, Better Markets, analysis of the Fed data release. The extent of the massive intervention by the Federal Reserve is now public information only because the Sanders Amendment to Dodd-Frank, which passed the Senate 96-0 in 2010, required the Fed to disclose more details of its financial operations. The extent of the intervention is buried in a massive data dump released by the Fed last December and was recently analyzed by Better Markets. This finding was contained in a letter sent by Better Markets President Dennis Kelleher to Geithner on Feb. 25. In his letter, Kelleher wrote, "The data refute the claim that the foreign-exchange markets performed well during the financial crisis and thus should be exempt from regulation." "It would be an absolute disaster to allow Wall Street to continue to gamble with trillions of dollars in foreign-exchange derivatives without strong regulations and oversight," says Bernie Sanders, whose amendment forced the disclosure of the Fed's unprecedented intervention to rescue currency trades. "The Fed and the Treasury Department gave 'too big to fail' banks and large corporations a multitrillion-dollar bailout because of the unbridled and unregulated greed and recklessness on Wall Street. Creating another loophole for Wall Street could lead to an even bigger bailout in the future and could cause serious damage to the economy."
http://prospect.org/...
This article was written by Robert Kuttner, and I would suggest you read the full article to understand the implications.
Apparently Mr. Geithner doesn't really believe that Wall St./the Banks need any regulations, but then neither did Alan Greenspan, or apparently Ben Bernanke, who all were charged as duly appointed 'Regulators,' to ensure that the Banks were adhering to regulations, and ensuring the markets would not blow up in our faces.
Geithner who reports directly to President Obama is simply letting all his pals know who's side he is on, and proceeding to let them all know:
'Back to the gambling tables boys, the drinks are on the house.'
That would be your house, my house, the crashed housing market, the crashed economy, and that would be you and I paying once again, for the 'houses' of those Wall St./Bankstas, as they continue to be allowed to 'hide their wheeling and dealing,' under the table, so that when the next crash comes, no one will be none the wiser.
I feel so confident knowing that we have such trustworthy 'Democrats,' working for us in our house, The White House.
Thanks as always, thought you might want to know about this story, before it slips under the radar. For some reason, these people, like Geithner actually believe we don't know what they hell they are doing. They are wrong.
Ms. B.