Reasons No. 13, 14, 15 and 16 for #OWS: More Bailouts, Election Buying, Attitudes and Super Congress

October 19, 2011

What #OccupyWallStreet stands for can be summed up in two areas: Wall Street / corporate corruption and Government corruption.

Bank of America has positioned it self to hand off a 75 trillion-dollar loss to the American tax payers if it becomes necessary. That’s right; $75 trillion with a capital “T”! They are “shifting derivatives in its Merrill investment banking unit to its depository arm, which has access to the Fed discount window and is protected by the FDIC.”

“This means that the investment bank’s European derivatives exposure is now backstopped by U.S. taxpayers.  Bank of America didn’t get regulatory approval to do this; they just did it at the request of frightened counterparties.  Now the Fed and the FDIC are fighting as to whether this was sound.  The Fed wants to “give relief” to the bank holding company, which is under heavy pressure.

This is a direct transfer of risk to the taxpayer done by the bank without approval by regulators and without public input.  You will also read below that JP Morgan is apparently doing the same thing with $79 trillion of notional derivatives guaranteed by the FDIC and Federal Reserve.

What this means for you is that when Europe finally implodes and banks fail, U.S. taxpayers will hold the bag for trillions in CDS insurance contracts sold by Bank of America and JP Morgan.  Even worse, the total exposure is unknown because Wall Street successfully lobbied during Dodd-Frank passage so that no central exchange would exist keeping track of net derivative exposure.”

And the banks know they will get away with it. As they have done so efficiently in the past, they are already buying the 2012 election.

“In 2008, Barack Obama raised almost twice as much money as John McCain did. 3 of the top 7 donors to Obama’s campaign were big Wall Street banks (Goldman Sachs, JPMorgan Chase and Citigroup). Now Wall Street is doing it again. The big Wall Street banks are already trying to buy the 2012 election. So who do they want to win in 2012? Based on contribution patterns so far, the overwhelming favorite of the Wall Street banks to win in 2012 is Mitt Romney. The big Wall Street banks have given to Romney as pile of money that is more than 4 times larger than they have given to anyone else. Even though most Republicans really don’t want him, if history is any indication this means that Mitt Romney is going to be the Republican nominee for president in 2012.”

And that confidence of buying our elections is summed up in the arrogant attitude of a “longtime money manager”, who is not identified; for obvious reasons. Speaking about Congressional members, he said “They need to understand who their constituency is”; meaning himself and other Wall Streeters who pay to get them elected.

Finally, to further strengthen their position, “money is flowing into the deficit panel”; the so-called super congress. “Members of the deficit-reduction supercommittee have raised hundreds of thousands of dollars from special-interest groups”, all since they’ve been selected for the super committee. Therefore we know exactly who is going to win and whose going to loose when the committee has finalized their recommendations.


lemming



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