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                            TigerSoft Freedom News Service   12/25/2008     www.tigersoft.com  

Dickens' Scrooge Has Nothing on
                   Greedy American Bankers.

                          Remember The Christmas Spirit - Read Dicken's Christmas Carol Again.

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                            NO MORE MONEY FOR BIG BANKS


                  AMERICA's GREEDIEST CEOs.





                            HOW DOES THAT HELP INVESTORS? 

                            PUBLIC COMMENTS                          
                                               Comments and Ideas from The American People that
                                          you will not hear from Finance-Industry Dominated Congress.
                              Email me. Your comments will be posted here.  william_schmidt@hotmail.com

by William Schmidt, Ph.D. (Columbia University)
                                             (C) 2008 All rights reserved.  Reproducing any part of this page without
                                                             giving full acknowledgement is a copyright infringement.


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                                 NO MORE MONEY FOR BANKS!!!!                    

by William Schmidt, Ph.D

                  Months ago I said flatly that Paulson was a crook, that his emergency bank bailout plan
            was designed to give his crony-bankers all the money still left in the US Treasury and that
            this scheme was nothing more than a ruse to get at that money.  That was the primary reason
            he was in such a hurry and wanted "immunity" with no judicial or administrative second-guessing
            about how he would give the money away.  I also warned that the so-called "bailout" would not stop
            the stock market from declining, because there were no guarantees that banks would even loan
            the money.  I warned that Fear Tactics like those used in getting the bailout were also used to
            start the Iraq war blunder and they should not be trusted now.  I noted that Paulson's nervous
            blinking 2-3 times a second showed how nervous and unsure he was that he was being honest
            and this bailout money would save the economy.   I warned it might even be the ruin of
            American credit. 

                  Only a banker could trust another banker.  Why give the money to the same corrupt
            "no-goods" who made the current financial mess.  These over-paid banking clods (How hard is it to
             run a bank?   How much incentive do they need?  Where else could they get a job, given
             their incompetence?  All these bankers know how to really do is schmooze with politicians
            to get zero regulations and government handouts.
Too harsh?  Hardly.  These top bankers at
            Citigroup, Bank of America and Goldman Sachs should be tried for insider trading, embezzlement
            and abrogation of their responsibilities to shareholders.  Paulson and the Fed's trillion dollar
            giveaways should be stopped cold until the whole mess is investigated.  If they refuse, put them
            in jail for contempt of Congress and throw the key away!   What I a saying here, millions of
            Americans re also saying.  

                 My earlier writing on this subject.
                         TigerSoft Blog - September 20, 2008 - Paulson Takes Corruption To New Highs...
TigerSoft News Service - 9/26/2008 - TigerSoft Warned Investors about Inside Selling by Bankers ...
TigerSoft Blog and News Service - 10/20/2008 - Goldman Sachs Foxes Robbing US Treasury Bare...
TigerSoft Blog - November 14, 2008 - The US Is Doomed with Paulson ...
TigerSoft Blog and News Service - Massive Insider Selling at Citigroup...

Do I hate bankers?  Not the honest ones that play by the rules. But then that eliminates the
            Federal Reserve and 90% of all United States based banks." Source.
  I don't hate the ones that
               are now serving French fries.  None that I know are serving time.  I am not alone here in
               condemning Paulson and his thieving friends.   Google altogether
                           "Paulson", "Corruption", "Bribes",  "Cronyism" and "Scare tactics".

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                                                 You would be dancing, too, if you were given $300 billion
                                                 with no strings attached.  The game is MONOPOLY! 


                         Look at the pay and bonuses grabbed by CEOs at some of the banks getting billions
                 in public bailout money. 

                            Richard D. Fairbank, the chairman of Capital One Financial Corp., took a $1 million hit in
                      compensation after his company had a disappointing year, but still got $17 million in stock options.
                      Capital One got $3.56 billion in bailout money on Nov. 14.

_                           John A. Thain, chief executive of Merrill Lynch, topped all corporate bank bosses with $83 million
                      in earnings last year. Thain, a former chief operating officer for
Goldman Sachs, came to Merrill Lynch
                      in December 2007, avoiding the blame for a year in which Merrill lost $7.8 billion. Since he began
                      work late in the year, he earned $57,692 in salary, a $15 million signing bonus and an additional $68 "
                      million in stock options.  Like Goldman, Merrill tapped taxpayers for $10 billion on Oct. 28.

                            At Bank of New York
Mellon Corp., chief executive Robert P. Kelly's stipend for financial planning
                      services came to $66,748, on top of his $975,000 salary and $7.5 million bonus. His car and driver
                      cost $178,879. Kelly also received $846,000 in relocation expenses, including help selling his home
                      in Pittsburgh and purchasing one in Manhattan, the company said.

                          Goldman Sachs, paying as much as $233,000 for an executive's car and driver, told its shareholders
                       that financial counseling and chauffeurs were needed so executives would have more time to focus
                      on their jobs.
If they can't focus on their jobs for a fraction of what they are paid, fire them!
(Source. )

                         Banking Crooks, Like Insane Dictators, Must Be Stopped Early
                                         or They Will Take Everything!

              With the nerve of an arrogant and manic pig, Paulson declared on December 19th
                    that he wants to give a new $350 Billion more to banks.  Congress had previously voted to let
                    the second half of the TARP $700 bailout be under the control of the new Administration. 
                    He seems not to have noticed that not one American consumer or homeowner has benefited
                    from the $330 given to bankers, so far.  They are hoarding the money or giving to themselves
                    as higher pay!  The economy would be a lot stronger if the US Government had just given
                    the $700 billion bailout, or $2300 to each American citizen on condition that they spend the money
                    within 3 months! 

                             Paulson says he's already given "his" share of the bailout away and now wants control
                    of the second half now!   "Financial market stability requires it", he declares.    Otherwise,
                     there may be a "significant disruption to our economy".  More FEAR TACTICS.  Just
                     what the economy does not need.  No wonder the DJI has lost nearly 10% since he made
                     these remarks.    He is holding the US Economy ransom.  Give me the money or I will
                     continue to scare the daylight out of it.

He is saying, in effect, that the first $350 billion of taxpayer money, was ineffective and now
                    the banks should be given more money.  But why should we think this additional money
                     will make any difference?  Like Bush, he always wrong.  The first gift to the bankers did not
                    work.  They did not lend the money.  Why should we think they will now!

                           Is he crazy?  Or does he know that Congress has been bought out by Big Banks and
                      this is a mere formality?    Did you note that the Democrats got most of Madoff's campaign
                     contributions.   Goldman Sachs executives gave a million to Hillary Clinton and Obama
                     in 2008.    However crazy or arrogant Paulson is.  either way, he is giving taxpayer money
                     to the very crooks that have caused the crisis.  He is giving it to them when they have
                     squandered the first $350 billion on executive bonuses, private air planes and buy-outs,
                     NOT extending much needed credit!   These are the very banks and CEOs that put their
                      own greed ahead of the interests of shareholders and made foolish home loans without
                      bothering to consider what would happen when the housing bubble broke!

  Where Things Stand?  The Deck Is Stacked in Favor of The Banks/
                                                    What A Surprise!?

      The US Treasury under Paulson is obliged under terms of the $700 billion rescue fund that
              Congress approved on Oct 3, to submit a report to Congress detailing how it plans to use the
               additional funds.  Congress will likely cave in.  After all, it is led by the spineless Nancy
               Pelosi ( "impeachment is off the table") and Harry, the weak, Reid (pronounced like "reed", an
               easily bent and twisted form of vegetation.).  The money automatically will become available
               unless both houses of Congress pass legislation blocking the funds within 15 days of receiving the
               administration's report.  And even then, the White Hoyse will cwerainly veto any Cingressional
               "no" vote on the second part of the bailout, thereby making it available.  Who created this round-about
               way of gettign around the opposition to the bailout?  Nancy Pelosi and Harry Reed run the two
               houses of Congress/  So devious!  No wonder Americans also hate Congress!

                   House Financial Services Committee Chairman Barney Frank, D-Mass., says the administration
                must allocate some of the new money for borrowers facing foreclosure, and impose more conditions
                to make sure banks actually use their rescue funds to increase lending.  He promises   "They're not going
                to get the (money) unless they get very serious about the foreclosure modifications and showing us
                how we're going to get some lending out of the banks." 

                                         MAKE THE BANKS GIVE THE MONEY BACK!

                        Paulson's and his cronies from Goldman Sachs, who now run the government's TARP program,
                have given the bailout money away with no strings.  Worse, the banks were not even obliged
                to extend more credit.  And still worse, they are not even required to declare what they have
                spent their money on!  Instead, the receiving banks have given much of the TARP money away
                to their top executives as bonuses!  For what?  To show an unbridled arrogance!   And to show
                that they run the show, not Congress!

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Goldman Sachs Tower in Jersey City

                  Trading on Inside Information Is An Old Tradition at Goldman Sachs'

                      Trading on inside information, which is illegal, has made Goldman Sachs many hundreds
                 of millions over the years.  No exaggeration. They distribute most of it to their top executives. 
                 That way, the illegal activities of Goldman Sachs are kept silent.  Even so, every now and then, one
                 of them gets caught.  As a primary dealer in US Treasury securities, they frequently facilitate US
                 Government's financing.  As such, they are in a privileged position.  Their investment banking
                 division makes deals and has privileged information in the area of mergers and acquisitions.
                 They launch public offering and they offer investment advise to wealthy individuals,
                 universities and other institutions.  The opportunities to trade for their own account
                on inside information are enormous.  How can they not make billions?  They are also
                market makers in many of the securities of firms that come to them to buy another company
                out, or that seek them to make a public offering, or to raise other forms of financing. 
                And if these were not enough, they put out buy and sell recommendations for big clients
                and have set up the industries' largest Hedge Funds to profit from falling markets.

                       Should they be trusted? Are you kidding?  There are potential conflicts of interest
                 everywhere you look in these activities.  And, showing how greedy they are, with all these
                 existing advantages, rheir employees have frequently been found guilty of insider trading. 
                 And their own stock frequently shows key, well-informed insider buying (2006) and insider
                 selling (end of 2007 and early 2008)

Insider Buying at GS                Goldman Sachs 2006-2007
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Insider Selling of GS stock     Gold Man Sachs 2008
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                      Treasury Secretary Paulson, an ex CEO of Goldman Sachs, says that the bank is too
                 big to fail!  If anything, they are too big to safely be allowed to continue. 

                     Goldman Sachs was not to be trusted in 1970, when  the Penn Central Railroad
                 went bankrupt. Goldman Sachs had sold over $80 million in its commercial paper and
                 was sued because it had not been sufficiently forthright regarding the risks. (Source. )

                    In 1986, 
"David Brown was convicted of passing inside information to Ivan Boesky on a takeover
                   deal.[35] Robert Freeman, who was a senior Partner, the (GS) Head of Risk Arbitrage, and a protégé of
                   Robert Rubin and was also convicted of insider trading, with his own account and with the firms.[36
                          (Source. )

                   In 2007, two Goldman traders, Michael Swenson and Josh Birnbaum,  part of Goldman's
                   structured products group in New York, made a profit of $4bn by "betting" on a collapse in the
                   sub-prime market, and shorting mortgage-related securities.   Paulson, as Treasury Secretary,
                   claimed until 2008 that the economy was basically sound!
  (Source. )

In November 11, 2008, the Los Angeles Times reported that Goldman Sachs, which earned
                    $25 M from underwriting California bonds, had advised other clients to "short" those bonds. (Source. )

                      A US Treasury official in 2001, Peter Davis, pled guilty to giving a Goldman
                 Sachs employee, John Youngdahl, a lucrative heads-up, minutes before key news that
                 the US Treasury was going to stop selling 30-year bonds.  (Source. )  

                     In 2007, Eugene Plotkin, a bond analyst at Goldman, pled guilty to insider trading.
                 He recruited two workers at the plant where Business Week is printed to get advance
                 knowledge about the companies to be discussed each week.  (Source.

                     Another Goldman Sachs employee, David Pajcin who was sentenced to 5 years
                 in prison in 2007 for insider trading, but then fled the country.  For 3 years he was fed tips
                 illegally from a man who served on a New Jersey Grand jury in Bristol Myers securities. ( Source. )
                 These last two Goldman Sachs employees are alleged to have made
                 $6.7 million from their illegal sales. (Source. ) One can only imagine how much money has made
                 because of its inside knowledge gained via its underwriting and institutional business.

                     The Paulson Credit Opportunities Find, a Goldman Sachs mortgage trading
                 firm. was up 410% as of August 2007.  The people who ran this firm had been appointed by the
                 Treasury Secretary.  How much did their inside track with Paulson, the Treasury Secretary
                 help.   "
Paulson has been among the most aggressive hedge funds betting against the subprime
                 mortgage business, which caters to poorer borrowers with blemished credit records. As
                 delinquencies have increased and turmoil has spread across other parts of the credit market,
                 some hedge funds have done well, while others have collapsed.
" ( Source.

                                           BILLIONS IN BONUSES FOR THE GREEDIEST CEOs!

                      Wall Street CEOs put pigs to shame.  Their bonuses are obscenely, contemptuously high.
                The regal world they live in is profoundly in conflict with a democratic society.  They are
                indirectly stealing money from those that cannot afford food, medicine or shelter.  On this
                Christmas day, they should be put in prison and made to listen to Dickens' A Christmas Carol. 
                They are the Scrooges of our age.  Dickens wrote:

                          "He was a tight-fisted hand at the grindstone, Scrooge! a squeezing, wrenching, grasping,
                         scraping, clutching, covetous, old sinner! Hard and sharp as flint, from which no steel has
                         ever struck out generous fire; secret, and self-contained, and solitary as an oyster."

                      Regarding bonuses, in 2005, an observer wrote "
Starting sometime after Labor Day and
                ending before Christmas, everybody in the financial industry is on their best, most obsequious
                behavior, hoping to curry the favor of those who divvy up the spoils. And what spoils there are
                this year—the 2005 bonus season looks to be Wall Street’s biggest haul in five years. Last year,
                the New York State Comptroller’s office estimated the average bonus on Wall Street to be a
                clean $100,600 (or $15.9 billion split among 158,000 employees). Early estimates of the 2005
                bonus pool reach as high as $19 billion.
"  In 2005, Goldman Sachs set aside $9.25 BILLION for
                bonuses, or if distributed equally (which they definitely not) that would be $420,000 per employee.  
                (Source )

                        In 2007, Goldman Sachs recorded its highest ever revenue and earnings.  It paid its CEO
                  Lloyd C. Blankfein, $68.7 million - the most ever for a Wall Street C.E.O.  ( Source. )
                  In 2006, he received $53.4 million, including a clash bonus of $27.3 million. (Blankfein has
                  contributed at least $7000 to Democratic Party candidate Hillary Rodham Clinton in 2008.[4] )

                 In 2007, the top five executives at Goldman received a total of $242 million. This year, Goldman's
                 seven top-paid executives will work for their base salaries of $600,000, with no stock or cash bonuses.


   Look at the expensive Hollywood teeth!
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CEO Lloyd C. Blankfein gave $7000 to Hillary Clinton.  Don't expect the Democrats to regulate CEO pay or limit bonuses.


"Some New York City politicians are outraged by these stupendous bonus payments
at Goldman. “In a town where there is 42% poverty in the South Bronx, 30 % poverty
in Harlem, 29% in Central Brooklyn; in a town where you still have homelessness and
you have thousands of hungry children; for these greedy and profiteering businessmen
to give themselves these kinds of unimaginable and unearned bonuses is a sin before
God,?? said New York City Councilman Charles Barron.
Rev. Herbert Daughtry, pastor of The House of Lords church in Brooklyn, who often
works on campaigns with Barron declared that the payments “borders on criminality
in light of the pervasive poverty in New York City.??

Separately, another councilmember from Brooklyn, Letitia James, said: “These $54
million bonuses are excessive. They greatly exceed the amounts  paid to the lowest
paid worker. It represents corporate greed at its worst. Compensation should be
determined by an independent board. There must be a nexus between the highest paid worker and the lowest paid worker.




                                                         Disillusionment with Wall Street

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As I was taught in junior high school, Wall Street is America’s capital source: the money raised
              on Wall Street helps for companies and fuels their growth and expansion while they provide goods and
              services to the people of the world. I was also taught that the markets were self-regulating and that supply
              and demand was the operative principle. If nobody purchased your products or services, you went out of
              business, innovated other solutions, penetrated other markets – and moved forward in a positive manner.

                        "The reality … At the time, I did not even consider that the markets could be rigged or that the
              market could be manipulated with disastrous consequences....  But what makes me really mad is …
             Wall Street’s attitude that decent companies who (sic) are associated with problematical industries
              can be artificially manipulated (and sold short) to the point where their survival is questionable...
              (Consider the harm to a ) "company struggling to survive amid a catastrophe not of its making.
              Employees dependent upon their paychecks, insurance and retirement benefits. All placed at risk so the
              Wall Street Wizards who produce nothing can line their pockets. And I am not talking about the individual
              investor … I am speaking about the middleman: the person who takes a chunk of change for buying and
              selling stocks, bonds and commodities. Chaos and confusion are their friends as it maximizes both
              buying and selling opportunities....These are the slimeballs that caused the current crisis with their
              artificially engineered financial products which they assured everybody were of investment grade with
              iron-clad risk management built in. They kept talking and collecting their bonuses right through the crash. "

                    Source.   More comments.

                    The man is correct.  Short selling is very destructive to Main Street.  And derivative vehicles
               channels investment money into the biggest companies, encouraging monopolies.  And it causes
               the tail to wag the dog.  Derivatives caused the crash in 1987. And leveraged short sale vehicles
               are destroying the US economy now.  When I started TigerSoft in 1981, there were none of these
               derivative vehicles and short selling was strictly limited.  Stock has to first be borrowed and all
               short sales had to be done on up ticks or zero-plus ticks.  The distance Wall Street has fallen in
               public esteem is directly related to its power over government.  De-regulation is wrong.   "Freedom
               for the pike is death for the minnows"


                           THE USE OF THE MONEY THAT BEEN GIVEN AWAY!

           It's easy to see on the internet or talking to people, just how hostile they are to Paulson
           and the bailout so far.   These are quotes from the Huffington Post.

We can mainly blame the members of Congress (on both sides) who gave Paulson and pals the absolute powers he now
has, but who now lamely complain and wag their fingers meekly, saying "Whillikers, Mr. Paulson--I'm miffed! (but I'm
not going to do anything about it)."

Since there's practically no accounting for the money Paulson is getting, maybe we should get a look inside his wallet
and see if any of it is winding up there?    JohnSawyer

He might get it even though it is pure looting. Pelosi and friends have an opportunity to show they are different than
the GOP but here is the problem... they are all bought and paid for. Even Chelsea Clinton got $400K from the
Hedge fund managers (guess was it because her vast financial expertise or her connections?).   bikerdude

I'm with you bikerdude, he can't account for the first 350 billion and he should get more? I hold my son
       more accountable than          that with his video games.   dollbaby

Yes indeed! He's scrambling to get his hands on the money before Bush leaves office. This guy needs to go now
and until we know where the first $350 mill went the purse strings must remain firmly closed.   Cchayefsky

What am I reading they're going to bail out HEDGE FUNDS? These are guys who work with multimillionaires.

This is ridiculous. We will wind up with a worthless currency at the mercy of the Chinese, who will buy us up.
No, no, NO! (okay that was more than one word.)   Clem2

What happens when a bank robber gets arrested with the money in hand? He goes to jail and the money is returned
to the bank. Why does this not apply to the bankrobbers such as Bernanke and friends. Can't we freeze their assets
until we find out who made off with what?    treebu

What a lame excuse: "to support financial market stability." He's telling us right there where the 2nd installment would go -
down the tubes like the first installment. He should be given NOT one red cent. The first installment has been used to pay
bonuses and buy banks...and where is the improvement?  Forecasts are even MORE dire since Paulson was handed
the first, unaccounted for, installment, with Biden and others warning the economy WILL tank. This is mass insanity.

Hell NO don't give that fascist pig any more money. How stupid are these people.
We're going to need it when this Republican recession turns in to a full blown depression.
In fact I think all of the bank bail out money should come from Republicans. They caused it let them clean it up.
Maybe if a few of them go broke they'll learn their lesson.     nineteen_and_eighty_four

There are a lot more opinions like this at:

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