Screwing You is Job One

Oh, hey. More bankster criminality:

A telephone call between a financial adviser in Beverly Hills and a trader in New York was all it took to fleece taxpayers on a water-and-sewer financing deal in West Virginia. The secret conversation was part of a conspiracy stretching across the U.S. by Wall Street banks in the $2.8 trillion municipal bond market.

The call came less than two hours before bids were due for contracts to manage $90 million raised with the sale of West Virginia bonds. On one end of the line was Steven Goldberg, a trader with Financial Security Assurance Holdings Ltd. On the other was Zevi Wolmark, of advisory firm CDR Financial Products Inc. Goldberg arranged to pay a kickback to CDR to land the deal, according to government records filed in connection with a U.S. Justice Department indictment of CDR and Wolmark.

West Virginia was just one stop in a nationwide conspiracy in which financial advisers to municipalities colluded with Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., Lehman Brothers Holdings Inc., Wachovia Corp. and 11 other banks.

They rigged bids on auctions for so-called guaranteed investment contracts, known as GICs, according to a Justice Department list that was filed in U.S. District Court in Manhattan on March 24 and then put under seal. Those contracts hold tens of billions of taxpayer money.

And yet our dysfunctional Senate still can not pass meaningful financial regulation. At least the Bloomberg piece says they are ready to name names and there will be prison terms.

I eagerly await the Reason magazine treatise on how this is the fault of too much regulation.








Conflicting Goals, My Ass

The NY Times:

Clients Worried About Goldman’s Dueling Goals

…While no one has accused Goldman of anything illegal involving WaMu, National City, A.I.G. or the other clients it bet against, potential conflicts inherent in Wall Street’s business model are at the core of many of the investigations that state and federal authorities are conducting. Transactions entered into as the mortgage market fizzled may turn out to have been perfectly legal. Nevertheless, they have raised concerns among investors and analysts about the extent to which a variety of Wall Street firms put their own interests ahead of their clients’.

“Now it’s all about the score. Just make the score, do the deal. Move on to the next one. That’s the trader culture,” said Cornelius Hurley, director of the Morin Center for Banking and Financial Law at Boston University and former counsel to the Federal Reserve Board. “Their business model has completely blurred the difference between executing trades on behalf of customers versus executing trades for themselves. It’s a huge problem.”

Goldman Sachs does not have dueling goals. Period. They have one goal, and one goal only.

Bonuses.

That is all they want. Bonuses. And they will do, or say anything to keep the bonuses rolling in. Bankrupting the country? No problem. Destroying Greece and the international economy. Cash money.

They don’t care about their clients, they don’t care about their community, they don’t care about their country. Their only goal is to make the deal and cash the bonus check.








Your donations are tax deductible

No one could have predicted:

In most recent IRS report that the Foundation filed for 2008, it shows the foundation took in $91,568 and paid Terri’s dad Robert Schindler Sr., her brother Robert Jr. and her sister Suzanne Vitadamo $59,275, or 64% of the money they raised.

Charity Navigator a respected Charity Rating organization says any charity spending more than 30 percent on salaries gets a zero rating. The foundation doesn’t come close.

In the meantime, since the report was filed, the salaries have increased to $80,000 a year, but the Foundation says one salary is in arrears causing some family members to work without pay.

You know what? If it keeps them from running for elected office, it’s charitable money well spent.