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Some of the healthier banks want to pay back their bailout loans to avoid executive pay and other restrictions that come with the money. But the banks are balking at the hefty premium they agreed to pay when they took the money....there is increasing anxiety in the industry that the administration could use the stress tests of the 19 biggest banks, due to be completed in the next three weeks, to insist on management changes...Both large and small banks have pressed the Obama administration to make it less costly for them to exit the bailout program by waiving the right to exercise stock warrants the banks had to grant the government in exchange for the loans.
Assessing Treasury’s Strategy: Six Months of TARP
The April oversight report for COP is entitled Assessing Treasury’s Strategy: Six Months of TARP. In this report, COP offers a preliminary look at Treasury’s strategy and offers a comparative analysis of previous efforts to combat banking crises in the past. Over the last six months, Treasury has spent or committed $590.4 billion of the TARP funds. Treasury has also relied heavily on the use of the Federal Reserve’s balance sheet which has expanded by more than $1.5 trillion (not including expected TALF loans) in conjunction with the financial stabilization activities it has undertaken beyond its monetary policy operations. This has allowed Treasury to leverage TARP funds well beyond the funds appropriated by Congress.
The total value of all direct spending, loans and guarantees provided to date in conjunction with the financial stability efforts (including those of the FDIC as well as the Treasury and the Federal Reserve) now exceeds $4 trillion. This report reviews in considerable detail specific criteria for evaluating the impact of these programs on financial markets. (Bolding mine).
The New Yorker's Jane Mayer discusses the fallout from the Red Cross' shocking report on CIA torture and its serious legal implications.
On the night of April 6, a long-secret document was published -- in its entirety for the first time -- that provided a clear, stark look at the CIA torture program carried out by the Bush administration.
A stunning story about 26-year-old reporter David Schultz of local NPR station WAMU-FM and a graduate of the University of Arizona.
Schultz was working on a story about a veteran alleging bad treatment at the hands of the U.S. Department of Veterans Affairs. Tommie Canady, a 56-year-old veteran with a terminal pancreatic disease, says he gets horrible care.
MORE men at the expense of machines; more drones rather than top-end fighter jets and future bombers; more helicopters for combat troops rather than a replacement for the presidential chopper; more coastal vessels and fewer aircraft-carriers; better cyberdefences, but scaled-back missile defences and laser weapons. In short, the new American defence budget would spend more on today’s wars in Iraq and Afghanistan and less to stave off future threats from China or Russia.
Obama's New World Order
by Stephen Lendman
This article addresses Washington's financial coup d'etat in the context of discussing Michael Hudson's important, very lengthy and detailed April 5 Global Research.ca one titled: "The Financial War Against Iceland - Being defeated by debt is as deadly as outright military warfare." It reviews its key information in advance of Hudson's April 14 scheduled appearance on The Global Research News Hour to discuss.
What's true for Iceland holds everywhere, including the developed world, the idea being to enrich finance capitalism through state-sponsored debt bondage and neo-feudal impoverishment. The global economic crisis was no accident. It was long ago hatched, and has been brewing for years, gestating, percolating, then bubbling into the 2000 tech crash, a mere prelude for today's greater one spreading everywhere like a cancer but hitting the developing world and most indebted nations hardest.
By Dave Lindorff
When I was a 17-year-old kid in my senior year of high school, I didn’t think much about Vietnam. It was 1967, the war was raging, but I didn’t personally know anyone who was over there, Tet hadn’t happened yet. If anything, the excitement of jungle warfare attracted my interest more than anything (I had a .22 cal rifle, and liked to go off in the woods and shoot at things, often, I’ll admit, imagining it was an armed enemy.)
But then I had to do a major project in my humanities program and I chose the Vietnam War. As I started researching this paper, which was supposed to be a multi-media presentation, I ran across a series of photos of civilian victims of American napalm bombing. These victims, often, were women and children—even babies.
Obama Administration Embraces Bush Position on Warrantless Wiretapping and Secrecy
Says Court Must Dismiss Jewel v. NSA to Protect 'State Secrets'
San Francisco - The Obama administration formally adopted the Bush administration's position that the courts cannot judge the legality of the National Security Agency's (NSA's) warrantless wiretapping program, filing a motion to dismiss Jewel v. NSA late Friday.
We had hoped this would go differently.
Friday evening, in a motion to dismiss Jewel v. NSA, EFF's litigation against the National Security Agency for the warrantless wiretapping of countless Americans, the Obama Administration's made two deeply troubling arguments.
Let me first say this picture is not quite right for what I want to say here but after spending alot of time looking for just the right image it is all I could find that came close to fitting my message. Bear with me please.
Obama's proposed military budget for 2010 is getting lots of copy and most of it is headlined as "cut backs in military spending." Of course this is not at all correct as he is really seeking at least a 4% increase in Pentagon spending for next year. Some Democrats in Congress want to make it even more.
What Obama is doing is shifting some monies around. Delay or cut one program and move those funds into things like $2 billion more for Afghanistan war intelligence and surveillance and $500 million more for helicopters in that war zone. He also wants more special operations troops (trained killer teams) for Afghanistan and more unmanned aerial vehicle (UAV) drones.
Just one local example is Bath Iron Works here in Maine. They presently are building Navy Aegis destroyers called the DDG-51 which cost $1.2 billion each. The politicians (Republican and Democrat alike) are pushing a new generation destroyer called the DDG-1000 which would cost $3 billion each. Secretary of War Robert Gates didn't want them because of the increased cost and their vulnerability to cruise missiles but they are now in Obama's new Pentagon budget. It should be remembered that Bath Iron Works is owned by General Dynamics and one of the major owners of this weapons corporation is the Crown family out of Chicago who were early big time funders of the Obama campaign. Is there a connection there? You decide.
Those who hoped that the change promised by candidate Barack Obama would include repeal of the various acts that have stripped Americans of their constitutional rights should be disappointed. Benjamin Franklin supposedly wrote, "Those who would give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety." The citation is likely apocryphal, at least in terms of its attribution to Franklin, but it is useful shorthand for the unfortunate abandonment of many of the liberties guaranteed by the U.S. Constitution as a consequence of 9/11. The trauma of 9/11 created an opportunity for those seeking to centralize executive power, an objective of recent presidents from both political parties. Many Americans initially accepted that there had to be some abridgment of fundamental liberties while fighting a multi-faceted and unconventional war against terrorism, but few realize just how much the constitutional rights that all citizens take for granted have been eroded. History also teaches us that once a right is suspended, in all likelihood it is gone forever.
By Dave Lindorff
The accounting profession might seem like the last place that you’d find serious political hanky-panky going on, and it’s probably not on very many people’s A-list of fun subjects to read about, but the Financial Accounting Standards Board, a quasi-governmental body that has statutory authority to regulate and establish the rules by which public companies, including banks, do their books, has just caved in to pressure from those banks and from the large number of members of Congress who pocket huge piles of campaign swag and perks from those banks and other public companies, and gravely undermined the integrity of corporate balance sheets.
Sometimes I feel like I am reliving the era of President Lyndon B. Johnson. The era of “guns and butter,” as they called it. At the same time that Johnson was launching his “War on Poverty” he was escalating the US war against the people of Vietnam and Laos, as well as carrying out the criminal invasion of the Dominican Republic (1965). Not only did these interventions (and others!) isolate the USA and set back the efforts of these various countries at self-determination, but they wrecked the US economy, siphoning off badly needed resources.
Red Cross Report: Medical Officers 'Participated in Torture'
By Diane Sweet | Raw Story
A confidential report by the International Committee of the Red Cross has revealed that medical officers and health personnel supervised, and in some cases assisted as detainees were deprived of food, exposed to extreme temperatures, and subjected to waterboarding. A copy of the 2007 report was posted on a magazine web site Monday night. The report quotes one medical official telling a detainee: "I look after your body only because we need you for information."
The new details of alleged CIA interrogation practices are contained in a 43-page volume written by ICRC officials who were given unprecedented access to the CIA's'high-value detainees' in 2006.
What to make of Spitzer's public re-emergence? As he appears on the Today show this morning, Justin Frank, psychiatrist and author of Bush on the Couch, asks who could know better about the failure of self-regulation than someone with a sexual addiction?
“All the cops are criminals and all the sinners saints.” -Mick Jagger
Five years after Time magazine declared him “The Crusader of the Year,” Eliot Spitzer was known simply and infamously as “Client #9.” The man dedicated to public service was equally dedicated to private servicing – and the link between these two parts provided him with a leg up, as it were, on being able to spot others’ delinquent behavior far more successfully than public servants less delinquent than himself.
Spitzer was felled by his own arrogance and sexual hunger, yet it may have been precisely the qualities that drove his private life that enabled him to recognize more than anyone the damage that arrogant, greedy financial institutions were doing to our nation.
Obama's War on Labor
by Stephen Lendman
Voters expecting change keep getting rude reminders of what kind, none they can believe in reiterated again on March 30 in Obama's remarks to the auto giants. While stating "We cannot....must not (and) will not let (this) industry vanish," he laid down a clear marker. Labor, not business, is targeted. More on that below.
"We (won't) excuse poor decisions," he said. "We cannot make the survival of our auto industry dependent on an unending flow of taxpayer dollars." In rejecting their aid request, he added: "These companies - and this industry - must ultimately stand on their own, not as wards of the state....What we are asking is difficult. It will require hard choices by the companies. (Their plan doesn't go) far enough to warrant the substantial new investments these companies are requesting."
Americans elected President Obama in part based on his promise to put diplomacy and international cooperation, rather than the use and threat of military force, at the center of his foreign policy. With respect to Afghanistan and Pakistan, while there have been some encouraging signals, in terms of actually implemented policies the folks who voted for Obama are not yet getting the "diplomacy first" that they were promised. Last week the Washington Post reported that 55% of Democrats support negotiations with the Afghan Taliban, and that 56% of Democrats think the U.S. should focus more on economic development in Afghanistan than on defeating the Taliban militarily.
Holder and Powell Ain’t Misbehavin’
By Ray McGovern
I used to take a certain pride by association with prominent Bronxites who have “made it.” Cancel that for Attorney General Eric Holder and former secretary of state Colin Powell.
Why would they want to whitewash torture, given what blacks have suffered at the hands of torturers in this country and abroad?
And why is it that they seem to value more their entrée into a privileged white-dominated ruling class than doing the right thing? How else to explain their stunning reluctance to hold torturers accountable and thus remove the stain of torture from our nation’s soul and reputation?
What’s Holding Holder?
The Obama administration is engineering its new bailout initiatives in a way that it believes will allow firms benefiting from the programs to avoid restrictions imposed by Congress, including limits on lavish executive pay, according to government officials.
Administration officials have concluded that this approach is vital for persuading firms to participate in programs funded by the $700 billion financial rescue package.
Bank bailout cost nearly doubles, agency says | MSNBC
Congressional Budget Office: Taxpayers will pay $1.67 billion more
Bailing out the financial sector will cost taxpayers $167 billion more than originally anticipated, according to a Congressional Budget Office estimate.
The original figure in January was $189 billion, but it is now $356 billion — $152 billion more for 2009 and $15 billion more next year, the CBO says in its March report updating the budget and economic outlook.
The CBO raised its projection because yields have increased on securities issued by the bailed-out financial institutions under the $700 billion Troubled Asset Relief Program.
That means there will be an increase in the cost of the subsidy from the U.S. Treasury's purchase of preferred stock, asset guarantees and loans to automakers, the CBO said.
The Smooth Criminal Transition from Bush/Cheney to Obama
Corrupt new administration deepens and expands systemic criminalization and war agenda
by Larry Chin | Global Researcher.CA
To sober, clear-eyed observers of history and political deception, the ascension of Barack Obama held the promise for unprecedented new dangers: a revitalized New World Order, led by the Anglo-American empire’s neoliberal criminal faction and an iconic, deceptive new facilitator; and a continuation of Bush/Cheney criminality and war, under smarter and much more effective management.
Now, just months into their tenure, the Barack Obama administration has more than fulfilled the promises he made to his elite constituency, deepening the mass destruction of Bush/Cheney, while charming its victims all over the world into enjoying their own demise.
On Thursday, House Judiciary Committee Chairman John Conyers quietly released the final draft of an extensive report he first unveiled in January documenting the Bush administration’s “unreviewable war powers” and the possible crimes committed in implementing those policies.
In order to determine whether Bush officials broke laws, Conyers has recommended that Attorney General Eric Holder appoint a special prosecutor to launch a criminal inquiry to investigate, among other things, whether “enhanced interrogation techniques” used against alleged terrorist detainees violated international and federal laws against torture.
“The Attorney General should appoint a Special Counsel to determine whether there were criminal violations committed pursuant to Bush Administration policies that were undertaken under unreviewable war powers, including enhanced interrogation, extraordinary rendition, and warrantless domestic surveillance,” Conyers’s report says. “In this regard, the report firmly rejects the notion that we should move on from these matters.”
Two days after being sworn in as the forty-fourth president of the United States, Barack Obama signed three executive orders, banning torture, requiring the CIA to use the same methods as the military in interrogating terror suspects, shutting down the network of secret CIA prisons and shuttering the prison at Guantánamo Bay, Cuba, within a year. "What the cynics fail to understand," the president proclaimed in his inaugural address, "is that the ground has shifted beneath them."
But where exactly has the ground shifted? The places of focus--and much of the furor against Bush's terror politics over the past few years--are outside our nation's borders, in distant lands and faraway prisons. The problem of torture and other human rights violations in America's "war on terror" has been framed as a problem that happens largely beyond our shores. The underlying assumption is that if Guantánamo detainees were to be tried on United States soil and in federal courts (as many groups demand), such egregious abuses would not occur.
The Council on Foreign Relations, often described as the "real state department", has launched an initiative to promote and implement a system of effective world governance.
Henry Kissinger, a CFR member, anticipates that President Obama will, "…give new impetus to American foreign policy partly because the reception of him is so extraordinary around the world. I think his task will be to develop an overall strategy for America in this period when, really, a new world order can be created. It’s a great opportunity, it isn’t just a crisis."
The "dirty little secret" that Geithner is going to great degrees to obscure from the public is very simple. There are only at most perhaps five US banks that are the source of the toxic poison causing such dislocation in the world financial system. What Geithner is desperately trying to protect is that reality. The heart of the present problem, and the reason ordinary loan losses are not the problem as in prior bank crises, is a variety of exotic financial derivatives, most especially credit default swaps....This is what must be put into bankruptcy receivership, or nationalization. Every hour the Obama administration delays that, and refuses to demand a full independent government audit of the true solvency or insolvency of these five or so banks, costs to the US and to the world economy will inevitably snowball as derivatives losses explode.