Saturday, September 14, 2013

*Update* On Fifth Anniversary of Global Financial Terrorist Attack, Lead Terrorist to Head Central Bank

On the Fifth Anniversary of the bankruptcy of Lehman Brothers, President Barack Obama plans to name Larry Summers, one of the chief architects of the financial collapse of 2008, as Head of the Central Bank.  Wall Street laundered three-quarters of a billion dollars into the Obama Presidential Campaign and he owes them.  The financial collapse of 2008 was the biggest global financial terrorist attack since the 9-11 collapse of the world trade center.

The Federal Reserve Bank headed up by Ben Bernanke, printed up over $43 trillion dollars to bail out banks around the world headed for collapse in 2008.  The Fed has continued to bail out bad bank investments to the tune of 38 billion per month ever since. 

The genesis of the banking crisis began late in 1999. Under the tutelage of Larry Summers, Robert Rubin and Tim Geithner, the U.S. Senate repealed the Glass Steagall Act with only 8 Senators voting against the repeal making it veto proof.  It was signed into law by President Clinton. 

The Glass Steagall Act was a Depression Era Law designed to prevent bank defaults, regulate insurance companies and restore confidence of the American people in the banking system. 

On December 12, 2000 the US Supreme Court in a 5-4 decision changed the course of America forever when they handed down their decision in Bush vs. Gore gifting the presidency to George W. Bush.  It would only have taken one U.S. Senator to challenge the Supreme Court decision to nullify the decision.  Shamefully not one U.S. Senator challenged the unconstitutional decision and now we know why. 

Three days later on December 15th, 2000, the legislation known as Commodities Futures Modernization Act or Gramm Leach Bliley bill barely passed the Senate.  The Act was not veto proof and it was only after Treasury Secretary Robert Rubin (Goldman Sachs), Summers and Geithner convinced President Clinton that so few investors were involved in derivatives and credit default swaps that it really posed no risk to Americans.  The unregulated derivatives and credit default swaps market now totals over 700 trillion on any given day.

The World Trade Center was an absolute boondoggle.  The buildings were laden with asbestos and other carcinogens and needed $200 million in renovations and the owner of the World Trade Center, Larry Silverstein was unable to find any insurance company to underwrite the asbestos removal. That coupled with the low occupancy rate it was a real loser.   But the buildings were insured against terrorist attacks and voila lemons turned into lemonade.

Instead of renovation, Silverstein is rebuilding, funded by the insurance coverage on the property which 'fortuitously' covered acts of terrorism. Even better, Silverstein filed TWO insurance claims for the maximum amount of the policy, based on the two, in Silverstein's view, separate attacks. The total potential payout is $7.1 billion, more than enough to build a fabulous new complex and leave a hefty profit for the Silverstein Group, including Larry Silverstein himself.

As reported in The Washington Post, the insurance company, Swiss Re, has gone to court to argue that the 9/11 disaster was only one attack, not two and that therefore the insurance payout should be limited to $3.55 billion, still enough to rebuild the complex.
A federal jury on Monday ruled that the assault on the Twin Towers of the World Trade Center was in fact two occurrences for insurance purposes. The finding in U.S. District Court in Manhattan means leaseholder Larry Silverstein may collect up to $4.6 billion, according to reports. [ 12/06/04]

Fast forward to 2013, after deregulation of banking and the insurance industry by Summers et al, cities like Detroit are bankrupt due to Wall Street municipal bond fraud, student loans that have been privatized are now in the trillions of dollars, mortgages that were collateralized and sold on the derivatives market are now in the trillions in default, pension and retirement plans are bankrupt, and there are no jobs.

But Wall Street, well they were bailed out by Summers and pals like Hank Paulson and their bonuses were paid in full.  And the American people?  Well they are being medically treated in cattle stanchions in fair grounds by doctors without borders because they have no health insurance because they have no jobs.

Now, Wall Street’s guy, Obama is ensuring Summers will be at the Federal Reserve to make sure the ponzi scheme continues for as long as possible.  Bernanke has threatened to take away the punch bowl and stop printing 38 billion per month to keep the party going.  That made it all the more important that Summers take over at the privately owned Central Bank. 

But whoa, wait.  There seem to be clouds gathering on the horizon.  It seems some of the newer Senators, are not enamored of Summers. Senator Jon Tester of Montana, a centrist has teamed up with three other Democrats on the Senate Banking Committee to vote against Summers.   Guess Summers’ tentacles don’t reach Montana.

A spokeswoman for Mr. Tester said the lawmaker would oppose Mr. Summers in committee. "Sen. Tester believes we need a consensus-builder to lead the Federal Reserve," a spokeswoman for the lawmaker said Friday. "He's concerned about Mr. Summers's history of helping to deregulate financial markets."
Yes, well Tester’s not alone.  The Senate Banking Committee is comprised of 22 seats, 12 of which are held by Democrats.  In addition to Mr. Tester, Democratic Senators Jeff Merkley of Oregon, Sherrod Brown of Ohio and Elizabeth Warren of Massachusetts are also expected to oppose Summers. 

Oh, but Summer’s history is way more nasty than just deregulating.  It’s hard to turn over a rock without Larry Summers crawling out.  Today, Saturday September 14, the last guest on C-Span’s Washington Journal was George Mason University’s Janine Wedel.  She brought my attention to another Larry Summers episode when he was in the Clinton White House and as President of Harvard.

In 1993, Lawrence Summers began his work at the Treasury Department as undersecretary of the treasury for international affairs. Charged with formulating international economic policy, Summers took over the post at a key time, as Russia was struggling to establish an open system of Western capitalism.

Well, how fortuitous for Summers’ pals.  It seems Summers’ buddies, Harvard Professors, Andrei Shleifer and Jonathan Hay’s efforts to bring about free-market reform in Russia cost the U.S. government over 60 million dollars.   

In 2001, Summers became the 27th President of Harvard just when Harvard was being sued for $120 million by the U.S. government for Shleifer and Hay’s defrauding the government.

Shleifer and Hay were accused of misrepresenting their purpose in completing the work the government was paying Harvard to do.  They had used personal relationships for private gain.

Not only did Harvard professors working in Russia allegedly take advantage of the very privatization acts they were supposed to be coordinating and advising, but according to Janine Wedel, a professor at the University of Pittsburgh who has published on the subject, the very "collaboration" that Summers praised was actually closer to collusion. "The Harvard group was working with the Chubais group at the expense of the people they were supposed to be helping. They got together and maximized their own opportunities," Wedel said.

Ah, yes.  Every rock you turn over Larry Summers crawls out. Talk about failing up.

Let’s return the control of our government back to the people.  If you lost money in your retirement fund, if you are a victim of mortgage fraud,If you owe the banks more on your mortgage than the house is worth, if you have student loans that you cannot ever hope to repay, if you don’t have a job, if you care about your country, call your Senators and JUST SAY NO TO SUMMERS.  Your life, your country, your family, your community depend on it. 

By:  Patricia Baeten

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