Imagine That: Members of Congress Receive Surprisingly Lucrative Big Bank Loans

Source: UndergroundReporter.org
Deirdre Fulton
August 19, 2016

A new study identifies “a direct channel through which financial institutions contribute to the net worth of members of the U.S. Congress”—especially those ostensibly tasked with overseeing those very Wall Street entities.

The paper from London Business School professors Ahmed Tahoun and Florin Vasvari, which is based on a “unique dataset” provided by the Center for Responsive Politics (CRP), finds that members of Congress sitting on the finance committees in the Senate and the House of Representatives “report greater levels of leverage and new liabilities as a proportion of their total net worth, relative to when they are not part of the finance committee or relative to other congressional members.”

The authors write that their analysis was “motivated in part by anecdotal evidence suggesting that some U.S. politicians, who are in a position to potentially affect the future performance of financial institutions that lend to them, have allegedly received preferential treatments from lenders.”

In other words, as International Business Times reporter David Sirota wrote Friday: “It is good to be king.”

Sirota explained:

In evaluating lawmakers from 2004 to 2011, the researchers found that finance committee members’ personal borrowing tended to jump in the first year they were appointed to the panels—a trend not seen for other lawmakers who were given seats on other powerful committees. Similarly, the data show that upon joining the finance panels, lawmakers tended to be given 32 percent more time—or on average four and a half years more—to pay back those new debts than loans they previously had and that other members of Congress have.

[…] The study, which was supported by the Institute for New Economic Thinking, did not evaluate whether the loans and interest rates constitute a systemic violation of congressional rules designed to prevent financial institutions from using loans to deliver special gifts to lawmakers. The restrictions are explicit: the U.S. House’s ethics manual declares that “there can also be an improper gift when a Member or staff person is given a loan at a below-market interest rate.”

The researchers conclude by confirming that indeed, data indicates that “finance committee members may use their oversight and legislative power to potentially extract benefits from financial institutions.”

They add: “We hope that additional research in this area will provide further insights into the personal borrowing activities of members of the U.S. Congress and how this borrowing influences their committee activities on legislative matters and their positions with respect to various pieces of legislation that affect the financial sector.”

Look here to see the members of the Senate Finance Committee, the Senate Banking Committee, and the House Financial Services Committee, all cited in the paper.

Read More At: UndergroundReporter.org


This article (Imagine That: Members of Congress Receive Surprisingly Lucrative Big Bank Loans) by Deirdre Fulton originally appeared on CommonDreams.org and is licensed Creative Commons. Image credit: Wikimedia Commons/Martin Falbisoner.

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Protect Yourself Against Those Running the World’s Economy for Your ‘Benefit’

big-buildings
Source: TheDailyBell.com
April 6, 2016

IMF warns of emerging market risk to U.S. stock markets  … Major emerging markets, led by China, are increasingly likely to spread fear to financial markets, leading to poor stock performance in the U.S. and other developed countries, the International Monetary Fund said. -MarketWatch

The IMF is back at work spreading fear. That’s not what we are supposed to think of course. We’re supposed to believe that the IMF has our best interests at heart and that its ranks are filled with caring, decent people.

But in this article we want to review important financial facilities along with the banking elite itself to reemphasize that they are not what they seem.

We’ll remind you of why they are not to be trusted and how the current economic system worldwide has been rigged to collapse, and to take you  down with it.

The IMF, the World Bank, the Bank for International Settlements, the larger central banks and top banking elites are all complicit.

In the world of high finance, nothing is as it seems. Each element in engaged in subtle interplay with the others. The goal is always destabilization along with the ruin of the middle classes and the enrichment of just a few, worldwide.

This has been going on since the Great Depression and then again since the end of World War II.

Let’s examine main players.

The IMF is part of a financial tag-team that smashes whole countries on the shoals of sovereign debt. First the World Bank lends to irresponsible government leaders and then the IMF offers additional funds.

But those funds come at a price. The IMF insists on imposing high taxes on already impoverished people. And it often forces countries to sell off valuable national enterprises to Western multinationals.

The IMF and the World Bank deal with political leaders and business tycoons. Central banks have a different role to play and the largest ones are directly involved in fine-tuning the world’s monetary system.

Secret deals are a constant occurrence when it comes to the world’s central-banks. That’s because central banking is a legalized monopoly and central bankers are supposed to conspire together. The Bank for International Settlements acts like a Mafioso Kingpin, supervising the secret arrangements.

The most recent secret deal was negotiated in February at the G20 meeting. Here, top central bank officials agreed to boost the Chinese economy via interest rate manipulation.

It was hoped this would help the doomed Chinese economy while not further damaging Western economies. In fact, the damage from decades of massive credit flows has so injured the world’s economy that no matter what central bankers do, it’s not going to be any good.

Ideally, they would step out of the way. But they won’t. They’ll just make things worse.

Their remedies are laughably simplistic anyway. They either print money or they don’t.

If they print money by creating more credit, then they will contribute to asset bubbles. If they tighten, they will puncture those bubbles prematurely and add trillions in further debt to a world already catastrophically overleveraged.  [Bold Emphasis Added]

Continue Reading At: TheDailyBell.com

In Spain, They’re Going After The Banksters

Source:GizaDeathStar.com
Dr. Joseph P. Farrell
February 2, 2016

Not all the stories I’ve been getting have concerned mind manipulation efforts, and certainly 2016 has also started out with some interesting news in the financial sectors as well. Consider what’s happening in Spain.

This story is intriguing from any number of levels, not the least of which because some of the regular readers of this website live in Spain, and from time to time have updated us about the dire straits not only of the Spanish economy, but the cultural assault that country – home to Cervantes, Soler, Velasquez – has been under. This article was shared by Mr. L.B., and it concerns a series of court actions against the corrupt financial oligarchs that have been responsible for so much of the country’s current economic crisis:

To Put Bankers Behind Bars, Spanish Citizens Take the 1% to Court

Consider just the first five paragraphs here, and one tidbit of information that I find highly significant in terms of its implications for the type of financial analysis of the situation that one encounters in the analyses of former Assistant Secretary of Housing and Urban Development, Catherine Austin Fitts:

The case of Rodrigo Rato is perhaps the most interesting among some 150 high-level corruption cases scheduled to take place this year in Spain – involving over 2,000 elite figures in Spanish society. Rato was the country’s Minister of Economics from 1996 to 2004, and a leading political force in the conservative Popular Party (PP) as well as managing director of the IMF (2004-2007) and chairman of Bankia, Spain’s largest bank (2010-12).

These institutions’ combined actions spurred Spain’s economic crash and intensifying poverty crisis, as Bankia’s massive debts were nationalized by the PP-controlled government and Rato’s bank became the main recipient of the bailout deal with the EU and IMF. From these business-government arrangements, Rato and the rest of Spain’s 1% profited while imposing austerity on the majority.

Continue Reading At: GizaDeathStar.com