Tag: Jon Stewart

The former special inspector-general of the troubled asset relief program (TARP), Neil Barofsky says that it is time for a “post mortem” analysis former Treasury Secretary Timothy Geithner’s doctrine, the preservation of large banks, the largesse of Wall St. and the perversion of of the US criminal justice system. In this article posted at naked capitalism, Mr. Barofsky looks at the effect of the “Geithner Doctrine” and the weak response to the LIBOR scandal:

The recent parade of banking scandals, such as the manipulation of Libor rates by Barclays, Royal Bank of Scotland and other major banks, can be traced back to the lax system of regulation before the financial crisis – and the weak response once disaster struck.

Take the response of the New York Federal Reserve to Barclays’ admission in 2008 that it was submitting false Libor rates and was not alone in doing so. Mr Geithner’s response was to in effect bury the tip. He sent a memo to the Bank of England suggesting some changes to the rate-setting process and then convened a meeting of regulators where he reportedly described only the risk but not the actual manipulation of the rate. He then put the government imprimatur on the rate via bailout programmes. His inaction helped permit a global crime to continue for another year.

When it was UBS’s turn to settle its Libor charges, even though a significant amount of the illegal activity took place at the parent company level, only a Japanese subsidiary was required to take a plea. Eric Holder, US attorney-general, demonstrated his embrace of the Geithner doctrine (a phrase coined by blogger Yves Smith) in explaining the UBS decision. He said that a more aggressive stance against the parent company could have a negative “impact on the stability of the financial markets around the world”.

This week we saw the latest instalment of the saga. In fining RBS £390m, the DoJ only indicted one of the bank’s Asian subsidiaries, avoiding the more damaging result that would have stemmed from charging the parent company.

Instead of seeking deterrence and justice, the US government increasingly appears to have fully absorbed the Geithner doctrine into its charging decisions by seeking a result that has a minimal impact on the target bank but will generate the best-looking press release. Some banks today are still too big to fail – and they are still too big to jail.

There are no meaningful consequences for this criminality. The fines with a promise not to do this again are just a game to allow the banks to continue the fraudulent conduct and find better ways to cover it up. Mr. Barofsky concludes that we must ditch the “Geithner Doctrine” to end “the game of incentives gone wild, and the lack of accountability in the aftermath of the crisis has only reinforced those bad incentives.”

o reclaim our system of justice, the global threat posed by the failure of any of our largest financial institutions must be neutralised once and for all. They must be reduced in size, their safety nets must be dramatically constricted and their capital requirements enhanced far beyond the current standards. Then, and only then, can the same set of rules apply to all.

In an extended interview with “The Daily Show“ host Jon Stewart, Mr. Barofsky discussed the double standards of the TARP program and the alien culture of Washington DC and explains why the banks will never face true justice..

Citing everything from home schooling to abortion, 38 Republican senators block the ratification of the United Nations Convention on the Rights of Persons With Disabilities. The negotiations for the convention were completed by the administration of Pres. George W. Bush in 2006 and it was signed by Pres. Barack Obama in 2009. But somehow, according to these right wing conspiracy theorists, the disabilities convention, which is entirely based on the Americans with Disabilities Act of 1990, would even threaten the “sovereignty of the United States.”

The treaty, already signed by 155 nations and ratified by 126 countries, including Britain, France, Germany, China and Russia, states that nations should strive to assure that the disabled enjoy the same rights and fundamental freedoms as their fellow citizens. Republicans objected to taking up a treaty during the lame-duck session of the Congress and warned that the treaty could pose a threat to U.S. national sovereignty.

“I do not support the cumbersome regulations and potentially overzealous international organizations with anti-American biases that infringe upon American society,” said Sen. Jim Inhofe, R-Okla.

Say what!? Protecting the rights of disabled Americans abroad is now “anti-American?” The irrational hatred of the United Nations by the radical Republicans has twisted their minds. Sen. Inhofe has allies in Tea Party favorites freshman Sen. Mike Lee (R-UT) and former Sen. Rick Santorum (R-PA), along with anti-feminist conservative activist Phyllis Schlafly:

At an event with former Sen. Rick Santorum (R-PA) late last month, Sen. Mike Lee (R-UT) announced that 36 Republicans had signed a letter pledging to vote against the treaty.

Lee told Senators on Tuesday that the treaty “threatens the right of parents to raise their children with the constant looming threat of state interference.” [..]

Writing for World Net Daily on Monday, Santorum said the treaty had “darker and more troubling implications” and suggested that it would have meant the forced abortion his daughter because she has a rare genetic disorder. [..]

Conservative activist Phyllis Schlafly also warned in November that proponents were “using this treaty as an opportunity to promote their abortion agenda.”

Even with the support of former Republican presidential candidates and disable veterans, Sen. John McCain (R-AZ) and former Senate Majority Leader Bob Dole (R-KS), present and looking frail and in a wheelchair, the convention failed to garner the necessary two third vote.

The Daily Show host Jon Stewart put it quite succinctly, “It’s official. Republicans hate the United Nations more than they like helping people in wheelchairs.” I just wish I could tell him that this is rock bottom for the Republicans:

Indiana Senate candidate Richard Mourdock draws widespread criticism for rape comments but retains Mitt Romney’s endorsement.

Thousands turn out to support the First Amendment rights of Chik-fil-A president and gay marriage opponent Dan Cathy by contracting Type II diabetes

Economist and former Clinton Labor Secretary Robert Reich was a guest on Jon Stewart’s The Daily Show to discuss the economy, taxes, and that state of our political system. In a three part extended interview , Sec. Reich discusses taking back of our democracy from the special interests and “the conditions that he believes will lead to the formation of a legitimate third party in the United States.”

One of the most pernicious falsehoods you’ll hear during the next seven months of political campaigning is there’s a necessary tradeoff between fairness and economic growth. By this view, if we raise taxes on the wealthy the economy can’t grow as fast.

Wrong. Taxes were far higher on top incomes in the three decades after World War II than they’ve been since. And the distribution of income was far more equal. Yet the American economy grew faster in those years than it’s grown since tax rates on the top were slashed in 1981. [..]

What we should have learned over the last half century is that growth doesn’t trickle down from the top. It percolates upward from working people who are adequately educated, healthy, sufficiently rewarded, and who feel they have a fair chance to make it in America.

Fairness isn’t incompatible with growth. It’s necessary for it.

President Obama’s electoral strategy can best be summed up as: “We’re on the right track, my economic policies are working, we still have a long way to go but stick with me and you’ll be fine.”

That’s not good enough. This recovery is too anemic, and the chance of an economic stall between now and Election Day far too high. [..]

The President has to offer the nation a clear, bold strategy for boosting the economy. It should be the economic mandate for his second term.

It should consist of four points:  

First, Obama should demand that the nation’s banks modify mortgages of homeowners still struggling in the wake of Wall Street’s housing bubble – threatening that if the banks fail to do so he’ll fight to resurrect the Glass-Steagall Act and break up Wall Street’s biggest banks (as the Dallas Fed recently recommended).

Second, he should condemn oil speculators for keeping gas prices high – demanding that the oil companies allow the Commodity Futures Trading Corporation to set limits on such speculation and instructing the Justice Department to investigate and prosecute oil price manipulation.

Third, he should stand ready to make further job-creating investments in the nation’s crumbling infrastructure, and renew his call for an infastructure bank. And while he understands the need to reduce the nation’s long-term budget deficit, he won’t allow austerity economics to take precedence over job creation. He’ll veto budget cuts until unemployment is down to 5 percent.

Finally, he should make clear the underlying problem is widening inequality. With so much of the nation’s disposable income and wealth going to the top, the vast middle class doesn’t have the purchasing power it needs to fire up the economy. That’s why the Buffett rule, setting a minimum tax rate for millionaires, is just a first step for ensuring that the gains from growth are widely shared.

But even before any of what Sec. Reich has put forth, President Obama needs to fire Treasury Secretary Timothy Geithner and appoint Sec. Reich, Prof. Bill Black and Paul Krugman to his Economic Advisory Council.

When is a war not war? According to Fox News, it’s when it involves women. Comedy Central’s Jon Stewart did a pithy take down of the Fox Faux pout-rage that has attracted the ire of Catholic League president Bill Donohue, who has his rosary in a knot, declaring a war on Jon Stewart. If it’s as successful as The National Organization for Marriage’s boycott of Starbuck’s for its support of marriage equality, it will probably result in a ratings spike for The Daily Show.

Warning: Video contains Adult Material that some may fond offensive.  

Democratic challenger for the US Senate seat from Massachusetts and Harvard Law professor, Elizabeth Warren has been a popular guest this week on the cable networks. She appeared on MSNBC Thursday following the Republican debate and assessed Republicans as favoring a policy to “invest in those who already made it”. She specifically addressed wealthy businessman Mitt Romney’s income and his preferred tax rate:

“Mitt Romney pays 14 percent of his income in taxes, and people who get out there and work for a living pay 25, 28, 30, 33 percent. I get it, Mitt Romney gets a better deal than any of the rest of us because he manages to earn his income in a way that has been specially protected for rich folks,” said Ms. Warren.

Her assessment of former House Speaker Newt Gingrich was equally critical on his proposed tax policy of reducing everyone’s tax rate to 15% and expressed her support of “Warren Buffett rule” that would raise taxes on the wealthiest Americans.

Earlier on Tuesday night with Jon Stewart on Comedy Central’s “The Daily Show“, she informed Jon that “The Pats are gonna spank the Giants” and addressed tax policy, lobbying, and investment, her signature issues. She opposes cuts in education research as detrimental and the need to invest in the middle class. In Part 2, she goes on to describe the role that government should play in regulating America’s private sector.  This is the unedited interview that is only available on line

There are those who are concerned that Warren, a political novice, will compromise her principles to the pressure of Wall St. hawks like Sen. Charles Schumer (D-NY). After watching her dress down Treasury Secretary Tim Geithner during hearings as chair of the five-member Congressional Oversight Panel created to oversee the implementation of TARP, I think she’ll be able to stand her ground. I’ll forgive her for her support of the Patriots. Nobody’s perfect.

Jon Stewart gives his critique of President Obama’s State of the Union.

He doesn’t spare the Republican response for Indiana Gov. Mitch Daniels or the GOP candidates.