Failing Institutions, Part II

Two more institutions that are failing us (besides the Catholic Church): Goldman Sachs and Citibank (also known as "Shittybank", pardon the crudeness). As for Goldman Sachs, you may have heard that a high-ranking executive just left the organization, then wrote and published a letter in The New York Times, describing the ugly, greedy culture within: Why I Am Leaving Goldman Sachs It's a good and important read, I think. Help yourself, if you haven't already. (link below). The second failed--really failed--institution is, as I said earlier, Citibank. It seems the Federal Reserve tested 19 of the biggest banks in the nation recently and 15 of the 19 passed this "stress test." One that didn't? The third largest bank in the US? You got it. Citibank: Four US banks fail Federal Reserve stress test So here we are, yet again. Two more big institutions, failing the people they should be serving, along with failing the nation. It seems true, that what we need is a mix of free market Capitalism that works but that government that keeps these organizations honest and from over-reaching. (See 3rd link, below). We seem to be victims of huge success that is otherwise now, bringing us down. I say it again, we must get the big, ugly, corrosive, corrupting money from the wealthy and corporations out of our political and election process and system. They mustn't be able to buy our legislators, their legislation, our laws and so, finally, our government. If we don't do that, if we don't kill "campaign contributions" with true reform, nothing will ever change. Links: http://www.nytimes.com/2012/03/14/opinion/why-i-am-leaving-goldman-sachs.html; http://www.bbc.co.uk/news/business-17361899

A simple change we need from Washington

I've said repeatedly here that one of the easiest, simplest and smartest things we need to do is have one enterprising representative in Congress in Washington introduce a bill that would take away incentives to take any manufacturing or business offshore.  Here's proof of what I'm saying from an article yesterday on Alternet:

According to the non-partisan Government Accountability Office (GAO), eighty-three of the 100 largest publicly traded U.S. corporations utilize such tax havens to reduce their U.S. tax liability. Ironically, these accounting tricks aren’t available for companies that only do business in the United States, so Congress in effect is providing tax incentives to ship jobs overseas and dismantle the middle class.


It would be so easy.


And smart.


Some bright--even demagoguic--representative or senator should sponsor a bill taking away tax benefits to offshore business and first, they'd be a huge media darling, overnight.  Second, they'd be hugely popular with the people, just as quick.  Third, they would gain a great name for themselves locally, in their own districts but also nationally, in case they wanted to run for some other, higher office later.


This would be perfect for ANYONE in any political party--Democrat, Republican, Libertarian, Independent but especially a Tea Party member.


I don't understand why this isn't happening.


Well, other than the fact that some corporations might not want to give them more campaign money.  Other than that.


Link:   http://www.alternet.org/economy/150598/how_12_multinational_corporations_avoid_paying_taxes

On corporate tax dodgers (read: cheats)

From Alternet and Rainforest Action Network (RAN):

...12 of the dirtiest corporate tax dodgers: Bank of America, Citi, JPMorgan, Wells Fargo, Chevron, BP, Shell, Exxon, Massey Energy, Alpha Natural Resources, Peabody Energy and Arch Coal. These 12 banks, oil and coal companies are largely responsible for foreclosing on millions of people’s homes and polluting our air, water and climate. At the same time, we found that they pay next to nothing into a tax system that provides the very services that protect the homeless, the sick and our environment.   

Our new infographic, Dirty Corporate Tax Dodgers, shows that banks, oil and coal companies made billions in profits last year and paid much less than their fair share in taxes. In fact, we found that if these 12 banks, oil and coal companies actually paid the IRS corporate tax rate of 35% they would be giving back $62 billion this tax season. That is almost double the $38 billion in federal budget cuts. 

To add insult to injury, while these multi-billion dollar industries we raking in the profits and evading their taxes they were also paying millions in CEO compensation and lobby dollars. These corporations are happy to pay large sums to manipulate our democracy but aren’t so interested in paying to support it.   

We were shocked to find that:

• Chevron, Exxon, BP and Shell together made $1.26 trillion in gross revenues, but paid a paltry 2.04% average tax rate;
• Bank of America, Citi, JPMorgan and Wells Fargo collectively dished out $83.4 million in CEO compensation;  and, while the top 4 banks made $454.4 billion in gross revenue, the top 4 oil companies made $1.26 trillion (yes that’s a ‘t'), and the top coal corporations made $17 billion, they collectively only paid $8.74 billion in federal taxes.

...let’s get one thing straight. America is not broke, and these dirty corporations don’t need any more handouts, bailouts, or subsidies. We don’t have a money problem we have a priorities problem. We’re slashing billions from our budget, much of which will come out of social services and environmental protections, while allowing corporate giants to slip ever-increasing profits into offshore accounts.  

By reversing years of tax giveaways to the largest corporations, Congress could raise trillions in revenue not only covering our budget deficit but also enhancing education, health and environmental programs that safeguard our families and our future. 

Like the now old saying goes, "If you're not angry, you're not paying attention."

Link:  http://www.alternet.org/economy/150617/corporate_tax_dodgers%3A_the_dirtiest_dozen

Heads up on your bank account information

An article out just now warns that millions of email addresses were stolen :

Banks, credit-card issuers warn of email breach

By PETER SVENSSON, AP Technology Writer

NEW YORK – With the possible theft of millions of email addresses from an advertising company, several large companies have started warning customers to expect fraudulent emails that try to coax account login information from them.

Companies behind such brands as Chase, Citi and Best Buy said over the weekend that hackers may have learned their email addresses because of a security breach at a Dallas-based company called Epsilon that manages email communications.

The email addresses could be used to target spam. It's also a standard tactic among online fraudsters to send emails to random people, purporting to be from a large bank and asking them to login in at a site that looks like the bank's site. Instead, the fraudulent site captures their login information and uses it to access the real account.

The data breach could make these so-called "phishing" attacks more efficient, by allowing the fraudsters to target people who actually have an account with the bank.

Keep in mind, usually these banks keep any thefts very quiet so they reassure their clients and prospective clients so this must concern them a great deal.

Just so you know.  Keep an eye out on your accounts and your email in-box.

Link to original story:  http://news.yahoo.com/s/ap/20110404/ap_on_hi_te/us_data_breach

No one burns through money like Americans, Part Two

Okay, here's another story you may or may not have seen.

While all the big banks were in big trouble and needing millions and yes, billions of dollars of our government, tax dollars to save their collective butts, these same banks--Goldman Sachs, AIG, Citibank (as Bill Maher refers to them--and that they've earned--"Shittybank"), Morgan Stanley, Bank of America, etc.--they were also handing out many, many million dollar bonuses to their employees.

Check this out:

"At Goldman Sachs, for example, bonuses of more than $1 million went to 953 traders and bankers..."

Do the math.

One million dollars times 953 traders is perilously close to one trillion dollars, folks.

For one company.

One company.

953 employees.

One million dollars each.

Can you even imagine?

One million dollars as a bonus?

On top of your salary?

Where is the perspective?

To continue:

"Even at weaker banks like Citigroup and Bank of America, million dollar awards were distributed to hundreds of workers."

How nice.

"...Morgan Stanley awarded seven-figure bonuses to 428 employees."

Let's see. 953--million--plus 428--million--and pretty soon you're very near one and a half billion dollars in bonuses.

Even though you're company is going to heck in a handbasket, largely due to how the company was handled and choices made in the organization.

This is insane.

This is insanity.

The banks screwed up, big time, by screwing their clients, largely in mortgages and other really ugly vehicles, then they were going down and losing money but they then handed out million dollar bonuses to hundreds and hundreds of employess--after receiving government money to save their butts.

Oh, yeah.

Americans burn through money like no one else.

We've given billions, maybe trillions of dollars, to these banks, to save their collective butts and they turned around and gave million dollar bonuses to hundreds and hundreds of their employees.

As though they'd done a good job.

Link to story:
http://www.nytimes.com/2009/07/31/business/31pay.html?_r=1&th&emc=th

Who's zoomin' who?

Okay, word today of a couple of things.

One, we keep hearing how the Republicans in the Senate are going to keep pushing for "concessions" on the bill to bail out the car companies.

The first thing that comes to mind is that this is what those pussy Democrats in both houses of Congress should have done when Hank Paulson and the White House came screaming out for 700 billion dollars, of all things, to help save the banks.

What hooey.

If ever we could have had concessions, it was then.

How about lose the company jets, Citigroup?

How about put in a maximum still-obscene multi-million dollar salary range for the executives?

How about losing the "credit swap" tool?

How about jettisoning "hedge funds", eventually but absolutely, since they just weaken our financial system and are, as I've said, a virtual "bet on a bet", since they're conjecturing on the position of where stocks are headed in the future?

There were all kinds of things that Congress could--and should--have demanded, since they supposedly wanted and badly needed tax money--and lots of it--to save their hides?

Pussies.

As I quoted my friend Bryce, "Republicans are evil; Democrats are retarded."

(No offense to the retarded).

Anyway, who's kidding whom here or, as Aretha Franklin so aptly put it: "Who's zoomin' who?"

Does ANYONE really think the Repugs are going to let the auto industry go bankrupt?

They'd better not.

There would be between 2 to 3+ million additional people AUTOMATICALLY out of work and on the street.

You don't think there wouldn't be some "revolution goin' on"?

Besides, they don't want that on their tombstone.

They're already so far down on the US public's popularity list, it'd be curtains, for sure.

It kills me that they're pushing so far and so hard on this.

It also gets me that people like Richard Shelby, a Southerner who has some foreign auto manufacturers in his backyard, ladies and gentlemen, would be allowed to weigh in on this.

He should absolutely recuse himself from this.

As hard as it is to believe, even though he's an American, and a representative of at least some Americans here in the States, that he'd tempt the fate of ruining both this industry and, possibly, the country, by letting this whole industry fail.

I'm no big fan of the American auto industry but hey, jobs are jobs, and we need 'em all right now.

Just now, even the White House has come out, pushing the Repug Party to accept this 14 billion dollar "loan"--or whatever you want to call it--for the Big 3 car makers.

Hey, what's a few more billion dollars to this President, right? He hasn't met money he hasn't wanted to spend yet.

Anyway, let's get over this whole "you gotta' give more concessions", crap, Senators.

The country's in a heck of a mess and, regrettably, this is something that needs to happen.

Day 2

It never ends.

So now friend of the Bushies and ex-Attorney General John Ashcroft's firm got--no huge surprise--a 27 to 52 MILLION dollar contract from his palzy's government (that would be yours and mine). Let's watch and see if it was competed or just handed to him.

Any bets?


Oh, and did you see where the acting chairperson of what is jokingly known as the "Consumer Product Safety Commission" "lashed out at the toy industry for a lack of safety controls that led to a string of highly publicized recalls"? Ain't dat a hoot? Yeah, she's upset they put out toys that can at least screw up our kids. Yeah. Right. Her solution? This is rich: "She warned that the industry has an obligation to regulate itself." "IF YOU KIDS DON'T QUIET DOWN, I'M GOING TO COME UP THERE!"

Why does this administration even pretend to care?

Why isn't the press--all the media--and the American public outraged?

Oh, that's right. We have our NASCAR, beer and cigs. What the hell.


As for Castro--a McGlaughlin-like prediction: he'll be buried before we celebrate the New Year. Understand, I'm not wishing it on him, certainly. It's just that he wouldn't bow out now if he weren't extremely ill.

And a final, rather ominous financial note: before last August, our own, United States-based Citibank was the largest bank in the world. Now, due, of course, to the subprime disaster and collapses, it is not only not number one but the top three are from--guess where? China, folks.

"Hang on to your seats. It's gonna be a bumpy ride."