If you remember in the last financial crisis, there was bailout money set aside for borrowers who had underwater mortgages. The money for the borrowers was not used up and it was always a small percentage of the bailout funds for the banks.
The banks and the Treasury just did not care about bailing out underwater Americans. It was simply there to sell the larger bailouts. Foreclosing was more profitable for the banks.
Not to beat a dead horse (its not dead) but our Treasury Secretary made his billion on foreclosing on mortgages.
Well here we are again. The Bailout program for main street businesses has only lent out 0.3% of the $600 billion made available… Unlike the programs for the large companies that have had credit flowing along with some straight bailouts.
The latest Bloomberg article on this provides this explanation:
Boston Fed President Eric Rosengren, in separate remarks Wednesday, pointed his finger at the nation’s largest banks to explain the relative lack of activity in Main Street. The reserve bank administers the program. Rosengren said that big banks have largely avoided participation. Banks making at least six Main Street loans all had assets under $20 billion, he said.
Word has it the Treasury Secretary told the banks to take NO credit risk. Well, they didn’t. What good is a banking system that does not work when you need it to?
In the here we go again, and again, and again file Pam and Russ Martens inform us that once again the 3-Count Felon, JPMorgan Chase, was Caught Laundering More Dirty Money. With the same CEO as when the first three felonies occurred – Jamie Dimon. JP Morgan always seems to come out on top of the bailouts. I wonder why?
Could it be that Jamie Dimon and JP Morgan’s PAC are financially supporting Mitch McConnell’s Reelection Bid. I guess old Mitch is really beholden to the kindness of Jamie Dimon.
But if you are going to read any links today, read this one: There’s a Pattern of Corporate Media Censoring News About Wall Street Banks’ Crimes
So the $0.2 trillion of the $8.2 trillion in bailouts was to cover their puny fines and settlements.
Interesting part of the story is when 60 minutes asked Michael Lewis how the stock market was rigged and he replied, ““By a combination of these stock exchanges, the big Wall Street banks and high-frequency traders.” (Read the full transcript here.)
The outpouring from that 60 minutes episode led to the Senate Banking Subcommittee hearing which highlighted the media’s blackout of Wall Street crimes. The Martens wrote:
The outpouring of interest in the very credible Michael Lewis allegation, backed up with solid details in his book, resulted in a Senate Banking Subcommittee hearing two and one-half months after Lewis appeared on 60 Minutes. Given the explosive nature of the allegation that the most iconic names on Wall Street were conspiring with the most iconic stock exchange in the world to rig the markets, one would have expected the hearing to have been packed with top media outlets. Instead, there was a complete big media blackout of the hearing. (You can read our report on the hearing and news blackout here.)
The blackout story is the most important to understand. Because without coverage they continue to get away with it. And the blackout includes the The New York Times as well as all the other major outlets. Read the Martens’ articles to understand what average investors are up against during the present financial crisis.
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