Jan 27

- Geithner’s Legacy: The “0.2%” Hold $7.8 Trillion, Or 69% Of All Assets; And $212 Trillion Of Derivative Liabilities (ZeroHedge, Jan 26, 2013):

As of this morning Tim Geithner is no longer Treasury Secretary. And while Tim Geithner’s reign of clueless pandering to the banks has left the US will absolutely disastrous consequences, an outcome that will become clear in time, the most ruinous of his policies is making the banks which were too big to fail to begin with, so big they can neither fail nor be sued, as the recent fiasco surrounding the exit of Assistant attorney general Lanny Breuer showed. Just how big are these banks? Dallas Fed’s Disk Fisher explains.

It is important to have an accurate view of the landscape of banking today in order to understand the impact of this proposal.

As of third quarter 2012, there were approximately 5,600 commercial banking organizations in the U.S. The bulk of these—roughly 5,500—were community banks with assets of less than $10 billion. These community-focused organizations accounted for 98.6 percent of all banks but only 12 percent of total industry assets. Another group numbering nearly 70 banking organizations—with assets of between $10 billion and $250 billion—accounted for 1.2 percent of banks, while controlling 19 percent of industry assets. The remaining group, the megabanks—with assets of between $250 billion and $2.3 trillion—was made up of a mere 12 institutions. These dozen behemoths accounted for roughly 0.2 percent of all banks, but they held 69 percent of industry assets.

What does this mean numerically? Continue reading »

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Jan 24

- Assistant Attorney General Admits On TV That In The US Justice Does Not Apply To The Banks (ZeroHedge, Jan 23, 2013):

Those who watched Frontline’s special on why nobody has been prosecuted on Wall Street titled appropriately “The Untouchables” didn’t learn much new. The rehash of ideas presented is what has been well known for years – namely that when it comes to prosecuting Wall Street criminals nothing will ever happen, because as Bill Gross tweeted Its not Republican in politics. Its not Dem in politics. Its money in politics” and all the money in politics comes from Wall Street, which happens to be the ultimate ruler of the United States of America, pushing levers here and pulling stringer there to give the impression the constitutional republic is still alive. It isn’t – this country has become an unchecked despotism of those in charge of money creation and who control capital – just the thing Andrew Jackson warned against. One thing we did learn, was courtesy of Assistant Attorney General Lenny Breuer who made it very clear that when it comes to the concept of justice the banks are and always have been “more equal” than others. He does so in such shocking clarity and enthusiasm that it is a miracle that this person is still employed by the US Department of Justice.

To wit from the transcript: Continue reading »

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Jan 24

- Assistant Attorney General Breuer Gets DOJ Boot In “Untouchables” Aftermath (ZeroHedge, Jan 23, 2013):

Earlier today, we reported that “Assistant Attorney General Admits On TV That In The US Justice Does Not Apply To The Banks” when we commented on last night’s PBS special “The Untouchables.” Explicitly, we said that it was “Lenny Breuer who made it very clear that when it comes to the concept of justice the banks are and always have been “more equal” than others. He does so in such shocking clarity and enthusiasm that it is a miracle that this person is still employed by the US Department of Justice.” As of minutes ago that is no longer the case as his employment contract has been torn up. The WaPo reports, that Lanny A. Breuer is leaving the Justice Department “after leading the agency’s efforts to clamp down on public corruption and financial fraud at the nation’s largest banks, according to several people familiar with the matter….It is not clear when Breuer intends to leave, nor what he plans to do once he departs, but it is certain that the prosecutor’s days in office are winding down, according to people who were not authorized to speak publicly about the matter.”

From WaPo:

Breuer is widely credited with aggressively going after white-collar crime in the aftermath of the crisis. He also stepped up the division’s involvement in money laundering cases, launching a series of criminal investigations that have resulted in multimillion-dollar settlements. Continue reading »

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