Welcome to The Breakfast Club! We’re a disorganized group of rebel lefties who hang out and chat if and when we’re not too hungover we’ve been bailed out we’re not too exhausted from last night’s (CENSORED) the caffeine kicks in. Join us every weekday morning at 9am (ET) and weekend morning at 10:30am (ET) to talk about current news and our boring lives and to make fun of LaEscapee! If we are ever running late, it’s PhilJD’s fault.
July 2014 archive
Jul 17 2014
The Breakfast Club (Summer Nights Edition)
Jul 17 2014
Who says we didn’t lose?
“Iraq Has Already Disintegrated”: ISIS Expands Stronghold as Leaks Expose US Doubts on Iraqi Forces
Democracy Now
July 16, 2014
Iraq remains on the verge of splintering into three separate states as Sunni militants expand their stronghold in the north and west of Iraq. The Islamic State of Iraq and Syria (ISIS) declared itself a caliphate last month and now controls large parts of northern and western Iraq and much of eastern Syria. Recent advances by ISIS, including in the city of Tikrit, come amidst leaks revealing extensive Pentagon concerns over its effort to advise the Iraqi military. Iraqi politicians, meanwhile, are scrambling to form a power-sharing government in an effort to save Iraq from splintering into separate Shiite, Sunni and Kurdish states. We are joined by two guests: Reporting live from Baghdad is Hannah Allam, foreign affairs correspondent for McClatchy Newspapers, and joining us from London is Patrick Cockburn, Middle East correspondent for The Independent and author of the forthcoming book, “The Jihadis Return: ISIS and the New Sunni Uprising.”
U.S. Sees Risks in Assisting a Compromised Iraqi Force
By ERIC SCHMITT and MICHAEL R. GORDON, The New York Times
JULY 13, 2014
The report concludes that only about half of Iraq’s operational units are capable enough for American commandos to advise them if the White House decides to help roll back the advances made by Sunni militants in northern and western Iraq over the past month.
Adding to the administration’s dilemma is the assessment’s conclusion that Iraqi forces loyal to Prime Minister Nuri Kamal al-Maliki are now heavily dependent on Shiite militias – many of which were trained in Iran – as well as on advisers from Iran’s paramilitary Quds Force.
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The Pentagon’s decision this month to rush 200 troops, plus six Apache helicopter gunships and Shadow surveillance drones, to the Baghdad airport was prompted by a classified intelligence assessment that the sprawling complex, the main hub for sending and withdrawing American troops and diplomats, was vulnerable to attack by ISIS fighters, American officials have now disclosed.“It’s a mess,” said one senior Obama administration official who has been briefed on the draft assessment and who, like two other American officials briefed, spoke on the condition of anonymity because of the continuing review and the delicate nature of the assessment.
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One of the assessment’s conclusions was that Iraqi forces had the ability to defend Baghdad, but not necessary hold all of it, especially against a major attack. Already, the capital has been targeted by ISIS car bombs.
Jul 17 2014
Le Tour 2014: Stage 12, Bourg-en-Bresse / Saint-Étienne
Le. Tour. De. France.
Yesterday all the action took place at the back of the race as Andrew Talansky (team leader of Garmin from the USA), the very last rider, struggled against back injuries caused by 2 crashes, one in Nancy and one on the Gérardmer descent Saturday, to avoid the broom car, so called because it picks up riders unable to continue, and time disqualification, on this day 37 minutes from the stage winner, Tony Gallopin.
After a a solid 4 minutes on the side of the road talking with the team manager and unkinking his back, he remounted and struggled to the finish a mere 32:05 behind. It was, as the French say, an outstanding example of cran, guts, and whether he starts today or not he did not quit and that is a quality so admired that about half the (French) TV coverage was devoted to his effort and they stayed with it long past the normal post stage wrap up.
Otherwise it was a breakaway day with a pack of about 36 riders including most of the top contenders slipping away into the hills at the end and Tony Gallopin, the maillot jaune on La Fête Nationale, capturing the finishing sprint for the stage victory.
So the the results for Stage 11 look something like this. On the stage it was Tony Gallopin with John Degenkolb in 2nd and Matteo Trentin in 3rd. In all 35 riders scored the lead time including most of the usual suspects, an additional 10 riders were within a minute of the lead. Nothing much changed in the General Classification with Vincenzo Nibali leading, Riche Porte closest (2:23), Alejandro Valverde BelMonte (2:47), Romain Bardet (3:01), Tony Gallopin (3:12), Thibaut Pinot (3:47), Tejay Van Garderen (3:56), and Jean-Christophe Péraud (3:57). Bauke Mollema (4:08) leads a group of 4 riders at under 5 minutes behind, Gerant Thomas 2 at under 6, and Mikel Nieve Iturralde 2 at under 7. Everyone else is farther back than that. In Points Peter Sagan has a commanding lead (301), Bryan Coquard (164), Marcel Kittel (157), Alexander Kristoff (127), André Greipel (111), Mark Renshaw (110), Greg Van Avermaet (100), Vincenzo Nibali (95), and Tony Gallopin (87). Everyone else is over 11 points behind. In the Climbing contest Joaquim Rodriguez (51), Thomas Voeckler (34), Tony Martin (26), Vincenzo Nibali (20), Alessandro De Marchi (18), Blel Kadri (17) and Thibaut Pinaut (16). Everyone else is at least 4 points behind. In Team competition it is AG2R, Astana (3:19), Belkin (4:25), and Sky (4:56). Everyone else is ove 21 minutes behind. For the Youth contest it is Romain Bardet, Thibaut Pinot (:46), and Michal Kwiatkowski (1:38). Tom Dumoulin is 12:42 back, Peter Sagan (your prohibitive Points leader) is 38:07 behind. Everybody else is about an hour or more off the pace.
I hesitate to stick a fork in it with both the Alps and the Pyrenees to come, but with over 50% of Le Tour complete were I a betting man I’d start putting my money on stage wins, place, and show. It’s starting to look very America’s Cup/Formula One.
Today’s stage is about 115 and a quarter miles and is another one of those ‘hilly’ sections that encourages breakaways instead of bunch sprints. The Sprint Checkpoint is early (40 km) and uphill after a little dip and there are 2 Category 4s and 2 Category 3s with the finish on the flat after a descent.
Distance | Name | Length | Category |
Km 58.5 | Col de Brouilly | 1.7 km @ 5.1% | 4 |
Km 83.0 | Côte du Saule-d’Oingt | 3.8 km @ 4.5% | 3 |
Km 138.0 | Col des Brosses | 15.3 km @ 3.3% | 3 |
Km 164.0 | Côte de Grammond | 9.8 km @ 2.9% | 4 |
Now tomorrow there are only 2 climbs, but we are in the Alps for sure. One is Category 1 and the other is Beyond Category. Things could still change so stay tuned.
Jul 17 2014
On This Day In History July 17
This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.
Find the past “On This Day in History” here.
Click on images to enlarge
July 17 is the 198th day of the year (199th in leap years) in the Gregorian calendar. There are 167 days remaining until the end of the year.
On this day in 1998, a diplomatic conference adopts the Rome Statute of the International Criminal Court, establishing a permanent international court to prosecute individuals for genocide, crime against humanity, war crimes, and the crime of aggression.
The Rome Statute of the International Criminal Court (often referred to as the International Criminal Court Statute or the Rome Statute) is the treaty that established the International Criminal Court (ICC). It was adopted at a diplomatic conference in Rome on 17 July 1998 and it entered into force on 1 July 2002. As of March 2011, 114 states are party to the statute. Grenada will become the 115th state party on 1 August 2011. A further 34 states have signed but not ratified the treaty. Among other things, the statute establishes the court’s functions, jurisdiction and structure.
Under the Rome Statue, the ICC can only investigate and prosecute in situations where states are unable or unwilling to do so themselves. Thus, the majority of international crimes continue to go unpunished unless and until domestic systems can properly deal with them. Therefore, permanent solutions to impunity must be found at the domestic level.
Following years of negotiations aimed at establishing a permanent international tribunal to prosecute individuals accused of genocide and other serious international crimes, such as crimes against humanity, war crimes and the recently defined crimes of aggression, the United Nations General Assembly convened a five-week diplomatic conference in Rome in June 1998 “to finalize and adopt a convention on the establishment of an international criminal court”. On 17 July 1998, the Rome Statute was adopted by a vote of 120 to 7, with 21 countries abstaining.[5] The seven countries that voted against the treaty were Iraq, Israel, Libya, the People’s Republic of China, Qatar, the United States, and Yemen.
On 11 April 2002, ten countries ratified the statute at the same time at a special ceremony held at the United Nations headquarters in New York City, bringing the total number of signatories to sixty, which was the minimum number required to bring the statue into force, as defined in Article 126. The treaty entered into force on 1 July 2002; the ICC can only prosecute crimes committed on or after that date. The statute was modified in 2010 after the Review Conference in Kampala, Uganda, but the amendments to the statute that were adopted at that time are not effective yet.
The Rome Statute is the result of multiple attempts for the creation of a supranational and international tribunal. At the end of 19th century, the international community took the first steps towards the institution of permanent courts with supranational jurisdiction. With the Hague International Peace Conferences, representatives of the most powerful nations made an attempt to harmonize laws of war and to limit the use of technologically advanced weapons. After World War I and even more after the heinous crimes committed during World War II, it became a priority to prosecute individuals responsible for crimes so serious that needed to be called “against humanity”. In order to re-affirm basic principles of democratic civilisation, the alleged criminals were not executed in public squares or sent to torture camps, but instead treated as criminals: with a regular trial, the right to defense and the presumption of innocence. The Nuremberg trials marked a crucial moment in legal history, and after that, some treaties that led to the drafting of the Rome Statute were signed.
UN General Assembly Resolution n. 260 9 December 1948, the Convention on the Prevention and Punishment of the Crime of Genocide, was the first step towards the establishment of an international permanent criminal tribunal with jurisdiction on crimes yet to be defined in international treaties. In the resolution there was a hope for an effort from the Legal UN commission in that direction. The General Assembly, after the considerations expressed from the commission, established a committee to draft a statute and study the related legal issues. In 1951 a first draft was presented; a second followed in 195] but there were a number of delays, officially due to the difficulties in the definition of the crime of aggression, that were only solved with diplomatic assemblies in the years following the statute’s coming into force. The geopolitical tensions of the Cold War also contributed to the delays.
Trinidad and Tobago asked the General Assembly in December 1989 to re-open the talks for the establishment of an international criminal court and in 1994 presented a draft Statute. The General Assembly created an ad hoc committee for the International Criminal Court and, after hearing the conclusions, a Preparatory Committee that worked for two years (1996-1998) on the draft. Meanwhile, the United Nations created the ad hoc tribunals for the former Yugoslavia (ICTY) and for Rwanda (ICTR) using statutes-and amendments due to issues raised during pre-trial or trial stages of the proceedings-that are quite similar to the Rome Statute.
During its 52nd session the UN General Assembly decided to convene a diplomatic conference for the establishment of the International Criminal Court, held in Rome 15 June-17 July 1998 to define the treaty, entered into force on 1 July 2002.
Jul 17 2014
TDS/TCR (No Hugging, No Learning)
All Bear Report-
Jon used up all 4 of the segments of his 3 segment show on Hillary Clinton which you can find extended and web exclusively along with the rest of the real news below.
Jul 16 2014
This Is My Answer & I’m Sticking With It
The main challenge for reporters when they ask a question is to get a response that actually responds to the question being asked. The tactic of responding with totally unrelated talking point over and over seems to have been ingrained in politicians, although they are not the only ones who engage in this method of not answering uncomfortable or unexpected questions. “No comment” just doesn’t cut it anymore. The “canned response” has been raised to a new level of ridiculous by the GOP, to the point it sounds robotic, as if someone was pushing the “repeat button” the remote control.
Substituting for the vacationing Rachel Maddow, MSNBC’s Steve Kornacki handed out the first ribbon for the newly established Canned Response Repetition Hall of Fame for repeating the most ludicrous talking point. There were several nominees, including House Speaker John Boehner (R-OH) but the winner was Gov. Rick “Voldemort” Scott (R-FL) who gave the exact same response four times in under a minute. The man is truly creepy.
Can the voters in Florida elect a human the next time.
Jul 16 2014
Punting the Pundits
“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.
Wednesday is Ladies’ Day.
Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.
Follow us on Twitter @StarsHollowGzt
Katrina vanden Heuvel: The Distorting Reality of ‘False Balance’ in the Media
False equivalence in the media-giving equal weight to unsupported or even discredited claims for the sake of appearing impartial-is not unusual. But a major media organization taking meaningful steps to do something about it is.
Earlier this month, the BBC’s governing body issued a report assessing the BBC’s impartiality in covering scientific topics. When it comes to an issue like climate change, the report concluded, not all viewpoints share the same amount of scientific substance. Giving equal time and weight to a wide range of arguments without regard to their credibility risks creating a “false balance” in the public debate.
This is a lesson for all media on both sides of the Atlantic-and not just when it comes to science coverage. There are many sides to almost every story, but that doesn’t mean they are automatically equal.
Ana Marie Cox: The GOP self-destruction is complete: millennials officially hate conservatives
The backlash machine has finally backfired with a generation that cringes at old people yelling at gay clouds
Conservatives are stuck in a perpetual outrage loop. The reappearance of Todd Akin, the horror-movie villain immortality of Sarah Palin, the unseemly celebration of the Hobby Lobby decision – these all speak to a chorus of “la-la-la-can’t-hear-you” loud enough to drown out the voice of an entire generation. Late last week, the Reason Foundation released the results of a poll about that generation, the millennials; its signature finding was the confirmation of a mass abandonment of social conservatism and the GOP. This comes at a time when the conservative movement is increasingly synonymous with mean-spirited, prank-like and combative activism and self-important grand gestures. The millennial generation has repeatedly defined itself as the most socially tolerant of the modern era, but one thing it really can’t stand is drama.
Republicans were already destined for piecemeal decimation due to the declining numbers of their core constituency. But they don’t just have a demographic problem anymore; they have stylistic one. The conservative strategy of outrage upon outrage upon outrage bumps up against the policy preferences and the attitudes of millennials in perfect discord.
Teens – whether you like the idea of them having sex or not – deserve information that can keep them healthy. Anything else is criminal
When you send your child off to school, you expect her to learn math, literature and science. Maybe some athletics thrown in for good measure. What most parents don’t count on, however, is for their kids to be told that condoms cause cancer and that women get cervical cancer because of “promiscuity”. Or that “each time a sexually active person gives that most personal part of himself or herself away, that person can lose a sense of personal value and worth.” Yet this is exactly the kind of nonsense taught to students every day thanks to religiously-based, abstinence-only sex education programs.
These false, ideologically-driven programs are turning out sexually illiterate young people whose lives and health are put in literal danger by “educators” handing out false information. All this, just so your teenager might be scared straight enough to forgo sex for a few extra months.
Joan Walsh: Wingnuts’ anti-child disgrace: From Murrieta to Oracle, America’s worst at it again
The GOP sheriff accused of threatening an ex with deportation foments protest — to scare away immigrant children
Waving yellow Gadsden flags and looking like refugees from Cliven Bundy’s Nevada ranch, dozens of immigration opponents have amassed on a local road in Oracle, Arizona, to block the expected transfer of 40 undocumented children from Central America to a nearby juvenile detention facility. So far the group, which includes members of the “patriot”/wingnut Arizona State Militia, has only blocked a bus carrying kids from a local YMCA. Like their friends in Murrieta, California, the Oracle heroes think the proper way to protest U.S. immigration policy is to threaten young children. [..]
Leadership is also coming from Pinal County Sheriff Paul Babeu, who is trying to rival Maricosa County’s Joe Arpaio when it comes to macho intimidation of undocumented immigrants. Babeu, you may recall, had to abort a 2012 GOP congressional campaign when a gay ex-lover, who was Mexican, said Babeu threatened him with deportation if they broke up. (Babeu denied the charge.) Rather surreally, he’s become a national leader in the anti-immigration movement, and now he’s crusading against relocating 40 immigrant children to his county.
Michelle Chen: Hobby Lobby Is Now Discriminating Against a Transgender Employee
The Supreme Court’s decision in Burwell v. Hobby Lobby Storesre revealed just how far the law now allows corporations to reach into women’s private lives. Now, another case against the same craft store chain is reaching into the ladies’ room as well.
Meggan Sommerville, a Hobby Lobby frameshop manager in Aurora, Illinois, has for years been shut out of the store’s bathroom because her boss insists that, as a trans woman, she cannot use the facilities. She is pressing a discrimination case with the Illinois Human Rights Commission, contending that the ban is both insulting and illegal under state laws barring discrimination in both employment and in public accommodations. The lockout has become a full-fledged civil rights battle-and perhaps the next legal showdown in the debate around corporate personhood, religion and civil rights at work. [..]
Although Sommerville brought her case under Illinois state law, advocates hope a ruling in her favor could set a precedent for other states’ treatment of transgender people under the rubric of civil rights and labor law.
But whatever Hobby Lobby does in the political arena, Sommerville is primarily anxious about how she’s treated when she shows up at work each day-to do a job that she still loves. She’s just waiting for her employer to recognize what her coworkers and her community have already accepted.
Jessica Grove: Parents Are Now Getting Arrested for Letting Their Kids Go to the Park Alone
Debra Harrell, 46, let her 9-year-old daughter play outside alone at the park. The South Carolina child had a cellphone she could use to call her mother in case of emergency. On the girl’s third day alone at the park, someone asked her where her mother was. The girl said her mom was at work. (Harrell works at McDonald’s and didn’t want her daughter to have to sit inside the restaurant for hours on a beautiful summer day.) The result? Harrell was arrested for “unlawful conduct towards a child” and put in jail; her daughter is now in the custody of the department of social services.
Most commentators – save for a few busybodies interviewed by the local news who nattered on about the possibility of the child being abducted by a strange man, something that’s extremely rare – think that authorities went way too far in arresting Harrell. It angers me, as a citizen, to see the police overreach this way. How is it benefiting this child to be put in the custody of social services? And since I’m a parent, Harrell’s arrest scares me: How can I appropriately parent my child when doing something that seems relatively safe, if out of fashion, can get you arrested?
Jul 16 2014
The Breakfast Club 7-16-2014
Welcome to The Breakfast Club! We’re a disorganized group of rebel lefties who hang out and chat if and when we’re not too hungover we’ve been bailed out we’re not too exhausted from last night’s (CENSORED) the caffeine kicks in. Everyone’s welcome here, no special handshake required. Just check your meta at the door.
Join us every weekday morning at 9am (ET) and weekend morning at 10:30am (ET) to talk about current news and our boring lives and to make fun of LaEscapee! If we are ever running late, it’s PhilJD’s fault.
This Day in History
Jul 16 2014
Bomb Trains
Oil Train Blast Zone Website Lets You See Your Proximity to Bomb Trains
Justin Mikulka, DeSmogBlog
Thu, 2014-07-10 11:31
ForestEthics has launched a new Oil Train Blast Zone website that allows people to search their address and determine if they are within the estimated blast zones for the trains carrying highly flammable crude oil, known as “bomb trains.”
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Due to the explosive nature of the oil and the continued use of unsafe DOT-111 tanker cars, even in accidents only involving a few cars rupturing and burning, like the one in Lynchburg, Virginia, first responders have taken the approach of just letting the tank cars and oil burn itself out instead of trying to put the fire out.
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In Albany, NY, which has become one of the top destinations for oil trains filled with Bakken crude oil, an event was held at the Ezra Prentice apartments which are located directly along tracks that regularly have the oil tank cars parked on them or moving along them.While the event was a vigil for the 47 people who died in Lac-Megantic (link added) a year ago, there was plenty of talk about the fact that these apartments and many others in Albany were located within the blast zone.
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This past week in Lac-Megantic, it was still very clear where the blast zone was from that accident a year ago. While the train company has been purchased by the massive New York hedge fund Fortress Investment Group and the tracks have been rebuilt, downtown is still fenced off so that the work of continuing to remove the contaminated soil can continue.The trains have returned but Lac-Megantic is a long way from being rebuilt.
Jul 16 2014
Another Slap On The Wrist
Who Is the Unsung Hero of the $7 Billion Citigroup Settlement?
William K. Black, The Real News Network
7/15/14
This is the latest in the way of embarrassing settlements by the Department of Justice that they’re trying to bill as if they were holding Citicorp accountable. So it’s $7 billion. As you say, the $4 billion is a larger number than has previously gone to the United States, but it’s not the biggest settlement. The JPMorgan settlement is larger in overall terms. And it really doesn’t matter how much goes to the federal government versus state governments in these terms.
Let me give you two words that you’re not going to hear in the coverage of this, and those words are Richard Bowen. Richard Bowen was the whistleblower that made all of this possible, that gave this case on a platinum platter to the Department of Justice. And today the attorney general of the United States, Eric Holder, has given a press conference in which he has never mentioned Richard Bowen’s name and has never used it as an opportunity to praise him and to ask other people to come forward and blow the whistle so that we can prevent these kind of crimes.
In addition you’ll note that there are no criminal charges in this case against the individuals or against Citicorp. And as a result of all of this, all of the individuals who became wealthy through what the Department of Justice describes as an egregious fraud that was followed by a coverup–in other words, multiple felonies–have not been charged at this point, and, frankly, there’s no indication that they’re about to be charged as well. So the people that committed the frauds get to keep all of the bonuses that were created as a result of those frauds, and it’s another disgraceful moment in the chapter of the Department of Justice.
Citigroup Is Said to Be Close to Settling Inquiry Into Mortgage Securities
By MICHAEL CORKERY and BEN PROTESS, Yhe New York Yimes
July 8, 2014 9:07 pm
At one point in the talks, the government demanded that Citigroup pay $10 billion. While the settlement will fall short of that demand, the bank will still pay more than once expected.
The two sides are still working out some details. Citi is expected to pay roughly $4 billion in cash, according to a person briefed on the matter. The remainder of the $7 billion would include so-called soft dollar penalties, including mortgage modifications and other forms of relief to homeowners, and possibly payments to state attorneys general involved in the case.
The total amount will almost certainly exceed the $2 billion that some Wall Street analysts initially estimated that Citigroup would be liable to pay, though more recent estimates have put the number closer to $6 billion.
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Citigroup was not nearly as big a player in this business as JPMorgan Chase, which agreed to a $13 billion settlement with the Justice Department last year.Lawyers for the big banks say privately that federal prosecutors appear to have scrapped the model used in that case and are demanding penalties that are far more punitive than what JPMorgan paid.
The Citigroup deal raises the stakes for Bank of America, which is expected to be the next large bank to settle its mortgage case with the Justice Department. Talks between the bank and federal prosecutors have largely gone dormant in recent weeks as the Justice Department focused on resolving its case with Citigroup, people briefed on the matter said.
Citigroup Settles Mortgage Inquiry for $7 Billion
By MICHAEL CORKERY
July 14, 2014 8:29 p.m.
The unusual arrangement, which was outlined in the deal on Monday, underscores how difficult it remains for Citigroup to shed its rocky past and how federal prosecutors are getting creative in holding the nation’s big banks accountable for losses that crippled the global financial system in 2008.
Like other settlements the federal government has signed with Wall Street, Citigroup’s deal also requires the bank to modify mortgages of struggling homeowners. But Citigroup’s mortgage business has shrunk appreciably since the financial crisis, and the bank doesn’t service enough troubled mortgages to satisfy the monetary settlement terms for homeowner relief. So the bank agreed to finance affordable rental housing in unspecified “high cost of living areas.”
Wall Street watchdog groups and housing advocates said the terms of the $7 billion settlement highlight how the federal government has fallen short in its effort to hold banks accountable, noting that neither Citigroup nor any of its executives have been criminally charged for the bank’s mortgage problems.
In announcing the deal on Monday, Attorney General Eric H. Holder Jr. said the hard-fought settlement did not absolve the bank or its employees from facing criminal charges. “The bank’s misconduct was egregious,” he said. “As a result of their assurances that toxic financial products were sound, Citigroup was able to expand its market share and increase profits.”
The Justice Department said Citigroup routinely ignored warnings that a significant portion of the mortgages it was packaging and selling to investors in 2006 and 2007 had underwriting defects. In one internal email cited by prosecutors, a Citigroup trader wrote “went thru Diligence Reports and think that we should start praying … I would not be surprised if half of these loans went down.” But the bank securitized the loans anyway.
The Justice Department said it was this type of evidence that enabled prosecutors to extract a $4 billion cash penalty from Citigroup – the largest payment of its kind. That money will go into the United States Treasury’s general fund and is not earmarked for any particular use.
The deal also includes $2.5 billion in so-called soft dollars designated for the financing of rental housing, mortgage modifications, down payment assistance and donations to legal aid groups, among other measures intended to provide relief to consumers.
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In a boon for Citigroup, the deal with the Justice Department forgoes any potential cases against the bank related to collateralized debt obligations, or C.D.O.s, which were often tied to mortgages. While Citi was a relatively small player in the mortgage securities market, it was a leader on Wall Street in C.D.O.s.
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But for many borrowers who have already gone through foreclosures, the settlement comes too late, consumer advocates say.“Seven billion sounds like a lot. But compared to the number of families that lost their homes, it is not very much at all,” said Isaac Simon Hodes, a community organizer with Lynn United for Change, a group that advocates on behalf of Boston-area residents facing foreclosure.
Citigroup Pays Just $7 Billion For Causing Financial Crisis
By: DSWright, Firedog Lake
Monday July 14, 2014 7:22 am
Attorney General Eric Holder, once a Wall Street lawyer who represented clients involved in mortgage fraud that led to the 2008 crisis, said “The bank’s misconduct was egregious,” while promoting the inconsequential settlement.
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The Justice Department declined an earlier offer from Citigroup noting it had emails and other evidence that, according to AG Holder, showed “[W]idespread defects among the increasingly risky loans they were securitizing, the bank and its employees concealed these defects.” Kind of sounds like criminal fraud doesn’t it?Citigroup itself was formed under dishonest circumstances through the merger of Citibank and Travelers Group when Federal Reserve Chair Alan Greenspan approved the merger despite it being illegal at the time. Congress, who had taken millions of dollars from owners and investors in Citigroup, then approved the merger. One of those lobbying for the merger to be retroactively legalized was Clinton Treasury Secretary Robert Rubin who would go on to serve as chairman of Citigroup and make over $100 million.
Citigroup has been bailed out at least four times by the federal government and continues to be implicated in illegality regarding money laundering for terrorists and drug cartels as well as other crimes in the foreign exchange market. The former CEO of Citigroup and architect of the merger in the 90s, Sandy Weill, has said the merger no longer makes sense and Citigroup should be broken up.
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