Today’s Brief’s: November 16, 2012 UK vs. US on Bank Bailouts, BP Criminal Plea Reveals Fox Faux's Lies and Wall Street Banker's Go after Elizabeth Warren

  1. A report is out this morning saying that United Kingdom tax payers could lose $107 billion (66 billion pounds) used to bailout the Royal Bank of Scotland and Lloyds during the height of the financial crisis of 2008. Margaret Hodge, chair of the Committee of Public Accounts, said “There is a risk that the 66 billion pounds invested in RBS and Lloyds may never be recovered.” So what, if anything, does this have to do with us taxpayers here in the US? Probably not much. But here’s the interesting part. Banks in America were treated differently than European banks during the crisis. Our government took a two-prong approach. First was the $700 billion TARP fund which was the only thing promoted by the government and news media. Had we stopped there, we most likely would have been in the same shoes as the UK. But as it turns out, TARP was just a drop in the bucket. The second approach was nothing more than a blank check to the financial industry. Trillions of additional dollars went out the back door. After a reasonable mourning period, bankers began using some of that to pay back TARP, which was repeatedly hailed as a “success” by our government and Wall Street’s PR groups (news media). And we’re still bailing them out by buying up their bad debt via our Federal Reserve under the fancy and misleading term “Quantitative Easing”. So, yeah! It’s easy to understand why the UK is going to lose their “TARP”; they didn’t open their vaults to the industry. In the end, UK taxpayers will be much better off than the US — except, of course, our wealthy bankers.
  2. Yesterday Reuters reported that BP has agreed to plead guilty to criminal misconduct and pay $4.5 billion (with a “b”) to settle charges against them for the 2010 blowout and oil spill in the Gulf of Mexico. In addition, several staff employees will face criminal charges. So why have I included this in today’s brief’s? Well, it’s because of Fox Faux (and others): “Media Matters has identified numerous instances of media conservatives defending BP on Fox News Channel, Fox Business, the Fox Nation, or the radio shows of Fox News hosts. [They] led the effort with at least 38 defenses of BP [such as] BP was victim of a ‘shakedown’; Investigations of BP are McCarthyist ‘witch trials’; Obama administration has ‘demonized’ BP; Conspiracy theories about the oil spill.” (Addition details here.) The world will never, never EVER recover from the ruination caused by Fox Faux. Well, the world may, but the human race won’t.
  3. Wall Street bankers, using their bought and paid-for Republicans, were successful earlier this year in thwarting President Obama from nominating Elizabeth Warren to head the newly created Consumer Finance Protection Bureau (CFPB). So Warren said okay, and decided to approach her dedication to commoners in a different way: She returned to her home in Massachusetts and ran for the US Senate where she handedly defeated her half-term Republican incumbent opponent Scott Brown. Now the bankers are going after her again, but this time using those with the majority in the Senate: Democrats! Bankers DO NOT want Warren on the Senate Banking Committee. The reason is that she is unquestionably serious about her unwavering 110 percent dedication to the consumer — maybe the first politician in decades whose allegiance is wholly to the commoner. And that, my friend, is the last thing Wall Street wants.


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