Regulators close Riverview bank in Twin Cities

Kind of like calling H1N1 "Swine Flu"...Isn't this just consolidation of an industry? And to the extent that banks "fail" we see the marketplace in action. Five banks get consolidated this year in Minnesota, not much news. It would be interesting to learn what Central Bank is doing (or had done) to be in the position to capitalize on these other banks "failings".

Total AIG Bailout Disbursements
Counterparties that were secretly bailed out via the AIG bailout

The following info was found at Business Insider

Goldman Sachs $12.90 billion
Soc Gen $11.90 billion
Deutsche Bank $11.80 billion
Barclays $8.50 billion
Merrill Lynch $6.80 billion
Bank of America $5.20 billion
UBS $5.00 billion
BNP Paribas $4.90 billion
HSBC $3.50 billion
Calyon $2.30 billion
Citigroup $2.30 billion
Dresdner $2.20 billion
DZ Bank $1.70 billion
Wachovia $1.50 billion
ING $1.50 billion
Morgan Stanley $1.20 billion
Bank of Montreal $1.10 billion
Rabobank $0.80 billion
Royal Bank of Scotland $0.70 billion
AIG Int'l $0.60 billion
KFW $0.50 billion
JP Morgan $0.40 billion
Credit Suisse $0.40 billion
Santander $0.30 billion
Paloma $0.20 billion
Citadel $0.20 billion
Danske $0.20 billion
Reconstruction Finance Corp $0.20 billion
Other $4.60 billion

TOTAL $93.40 billion

After BoA and Citigroup received their TARP funds, both declared that they had a profit.

Now if I was an auditor, or an investigative reporter (do those still exist?), I would want to know who bought the stock at the bargain basement price and what political party did they contribute to.

So what's easier? starting a bank in the 2000's or winning a Nobel Peace prize ~ appears neither required any substance!

First the FDIC talked about collecting advance payments from member banks to keep FDIC solvent. Then they said they would attempt to get loans from big healthy banks. Now they talk about borrowing from the US treasury. As a US taxpayer I don’t want to be put at risk on another government project (experiment). I’ll bet the top dog (Sheila) at the FDIC has “the list” of banks that provide major campaign contributions. Our elected officials know the 2010 elections are arriving and coming up and don’t want an interruption in bank campaign contributions. So, the best way to get re-elected might be to not put any strain on the banks because they provide campaign funds, but put the risk on the taxpayer instead.

Sheila Bair was appointed by Bush.

Odumbo CzaR wrote:

Total AIG Bailout Disbursements
Counterparties that were secretly bailed out via the AIG bailout
The following info was found at Business Insider
Goldman Sachs $12.90 billion
Soc Gen $11.90 billion
Deutsche Bank $11.80 billion
Barclays $8.50 billion
Merrill Lynch $6.80 billion
Bank of America $5.20 billion
UBS $5.00 billion
BNP Paribas $4.90 billion
HSBC $3.50 billion
Calyon $2.30 billion
Citigroup $2.30 billion
Dresdner $2.20 billion
DZ Bank $1.70 billion
Wachovia $1.50 billion
ING $1.50 billion
Morgan Stanley $1.20 billion
Bank of Montreal $1.10 billion
Rabobank $0.80 billion
Royal Bank of Scotland $0.70 billion
AIG Int'l $0.60 billion
KFW $0.50 billion
JP Morgan $0.40 billion
Credit Suisse $0.40 billion
Santander $0.30 billion
Paloma $0.20 billion
Citadel $0.20 billion
Danske $0.20 billion
Reconstruction Finance Corp $0.20 billion
Other $4.60 billion
TOTAL $93.40 billion
After BoA and Citigroup received their TARP funds, both declared that they had a profit.
Now if I was an auditor, or an investigative reporter (do those still exist?), I would want to know who bought the stock at the bargain basement price and what political party did they contribute to.

Not much of a secret when you can easily find the information. It also shows how interdependent they all were and how easily one failure leads to more. It's amazing to me that your implying Democratic guilt when your men Bush/Cheney/Greenspan were the in-charges during years leading to the mess, which started before Obama was elected. BTW, great quote from your Republican buddy about God telling him to start a bank.

Goldman Sachs exec named first COO of SEC enforcement


WASHINGTON – A Goldman Sachs executive has been named the first chief operating officer of the Securities and Exchange Commission's enforcement division.

The market watchdog says Adam Storch, vice president in Goldman Sachs' Business Intelligence Group, is assuming the new position of managing executive of the SEC division.

http://news.yahoo.com/s/ap/20091016/ap_on_bi_...

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Adam Storch Named Managing Executive of SEC’s Enforcement Division
FOR IMMEDIATE RELEASE
2009-220

Washington, D.C., Oct. 16, 2009 — The Securities and Exchange Commission today announced that Adam Storch has been named to the newly-created position of Managing Executive of the SEC’s Division of Enforcement.

http://www.sec.gov/news/press/2009/2009-220.h...

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The fox guarding the hen house-Corruption at it’s finest. The government in this country is revolting.

The Pay Czar's Power Grab


http://townhall.com/columnists/MichelleMalkin...
Pay czar Kenneth Feinberg's official government title is "Special Master for Compensation." You'll be happy to know that he's really getting into the confiscatory spirit of his role. Asked by Reuters whether his powers include reaching back and revoking bonuses awarded to financial industry executives before his office was created earlier this year, Feinberg asserted broad and binding authorities -- including the ability to "claw back" money already paid out.

Regulations governing his office explicitly limit his jurisdiction over contracts signed before Feb. 11, 2009. But the fine print is no obstacle to Obama's czars. "The statute provides these guideposts, but the statute ultimately says I have discretion to decide what it is that these people should make and that my determination will be final," Feinberg claims. "Anything is possible under the law."

Yes, he said "anything." It's not just senior executive officers who fall under Feinberg's purview. "These people" also includes "the next 100 most highly paid employees" of all bank bailout recipients, who must file compensation proposals with their pay overlord by Friday.

But why stop there? The Troubled Asset Relief Program has morphed from a toxic asset buy-up to a capital injection plan and back to a toxic asset buy-up. The money has been doled out to auto supply companies and life insurance companies. Congress wants to siphon off more of it to bail out bankrupt California and create a "national housing trust fund" to bail out low-income renters. Grabby-handed politicians have used TARP as a crowbar to pry open new areas for command-and-control meddling under the guise of saving the economy.

How much longer until the pay czar is determining all corporate pay he wishes to deem "inappropriate, unsound or excessive"? House Financial Services Committee Chairman Barney Frank has yapped all year long about extending pay curbs to all financial institutions and perhaps to all U.S. companies.

Let's remember that the Beltway hysteria over bonuses served as a convenient distraction from the responsibility of subprime meltdown-enabling lawmakers like Frank and Obama's crony economic team. Treasury Secretary Tim Geithner landed his previous job as head of the Federal Reserve Bank of New York thanks to heavy lobbying by his Wall Street mentors Robert Rubin and Larry Summers, both of whom sat on the New York Fed's selection committee. Their cronyism had multi-billion-dollar consequences for taxpayers.

Rubin was also an executive at New York-based Citigroup, which Geithner regulated. Or was supposed to regulate. Instead, he helped foster Citi's spending binge and engineered the teetering company's $52 billion federal bailout. This makes the Obama administration's recent protestations about one Citi employee's $100 million compensation package look like the very kind of manufactured outrage of which it incessantly accuses its political opponents.

Geithner also had a hand in the $30 billion Bear Stearns bailout and the multilevel AIG bailouts ($85 billion and $38 billion under President Bush and another $30 billion in March 2009 under Obama). Massive sums of that taxpayer money went to major financial institutions that had employed Obama's moneymen and their closest confidants. Goldman Sachs, for example, raked in nearly $13 billion in December 2009 from AIG in federal TARP funds -- and reported record profits this quarter with a bonus pool of more than $11 billion.

The "solution" isn't to empower a pay czar to curb bonus payouts ex post facto. The solution is to stop dumping billions into failing companies in the first place.

Raines, Federal Regulators Reach Settlement (Raines:$24.7 Million) 9/19/08

http://voices.washingtonpost.com/washbizblog/...

Former Fannie Mae chairman and chief executive Franklin D. Raines has agreed to a multimillion settlement with a federal regulator over his alleged responsibility for improper accounting at the mortgage finance giant.

The regulator, the Office of Federal Housing Enterprise Oversight, said Raines had agreed to forgo stock, cash and other benefits worth $24.7 million in exchange for dismissing the charges against him. However, the regulator's estimate wasn't the only way of looking at the value of the settlement.



Flashback 2005: THE WORST MANAGERS OF 2004: Franklin Raines [CEO] Fannie Mae



http://www.businessweek.com/magazine/content/...



Jan 2005...
On Labor Day, he was a favorite to be Treasury Secretary should John Kerry win the White House. At yearend, he had left under a cloud. The charmed career of Franklin D. Raines -- a poor kid from Seattle who climbed through Harvard and a Rhodes Scholarship to become White House budget director and CEO of Fannie Mae (FNM )-- crashed to a halt on Dec. 21. That was six days after the Securities & Exchange Commission's top accountant declared that mortgage giant Fannie misstated earnings for 3 1/2 years, leading to an estimated $9 billion restatement that will wipe out 40% of profits from 2001 to mid-2004.

Supporters of Raines, 55, insisted that he wasn't culpable for Fannie's misuse of obscure accounting standards. But that argument didn't wash. Raines was in charge in 2001, when Fannie chose to create what the SEC dryly called "its own unique methodology" to calculate the earnings impact of its trillion-dollar portfolio of derivatives. Raines gave Chief Financial Officer J. Timothy Howard free rein and tolerated "weak or nonexistent" financial controls, according to a scathing report issued in September by the Office of Federal Housing Enterprise Oversight, Fannie's regulator.

Worse, the CEO failed to manage the scandal. When sibling Freddie Mac's accounting first came under fire in mid-2003, Raines's arrogant insistence that Fannie was above reproach spurred OFHEO to do a white-glove examination. And when that uncovered the improper bookkeeping, Raines insisted on an SEC review, which he maintained would vindicate Fannie. "Frank was supposed to be the great political risk manager," says independent banking analyst Bert Ely in Alexandria, Va. "Instead, he compounded the problems."

...Raines didn’t manage Fannie Mae...he looted it.

Prominent Republican and former Secretary of State for MN Mary Kiffmeyer was on the BOARD OF DIRECTORS!
Why has the Star Trib and Pi Press deleted this information from their stories???

Mary Kiffmeyer was NOT on the board of directors of the Riverview bank. Maybe that is why your false post was NOT printed by the Star and Tribune.

On the other hand a prominent Demoncrat watched a foorball game and was awarded the Heisman trophy
A grand idea came into his head and he was awarded the Nobel prize.. Stranger things have happened.