Help - Search - Members - Calendar
Full Version: Was Spitzer targeted?/Eliot Spitzer or the Subprime CEOs
JREGrassroots > General Politics > The Economy
ncMindy
QUOTE
CAMPOS: Was Spitzer targeted?

By Paul Campos, Rocky Mountain News (Contact)
Wednesday, March 12, 2008

As Richard Nixon used to say, let me make something perfectly clear: Eliot Spitzer is a world-class hypocrite and fool, who more or less asked for the political and personal catastrophe that has befallen him.

That being said, the real Spitzer scandal has little to do with his apparent habit of paying young women for sex. Here's what really needs to be investigated:

Spitzer's fall was triggered not by his visits to prostitutes, but by banks reporting "suspicious" transactions of his to the IRS.

A deposit of $10,000 or more in cash automatically triggers a suspicious activity report. It's unlikely that someone as financially sophisticated as Spitzer would transfer $10,000 in cash at once to pay for illicit sex, given that he knew full well doing so would trigger an automatic report to the IRS.

It's a violation of the relevant statute to structure multiple cash transactions with the intent of avoiding the $10,000 automatic reporting requirement (by, for example, depositing $5,000 on the same day with two different banks), but it's quite unclear whether whatever Spitzer did would normally lead to the filing of a suspicious activity report, since such subterfuges are very difficult to detect unless one is already looking for them. This raises the possibility that Spitzer's financial activities were being closely monitored.

It's hardly a stretch to imagine that Spitzer, a man with countless enemies in the financial world, would be the target of such a vendetta.

Link


QUOTE
March 11, 2008 at 10:05:14

Spitzer Bust Provides a Warning Regarding NSA Spying

by Dave Lindorff

I have no sympathy for New York Gov. Eliot Spitzer, the hot-shot prosecutor of call-girl operations who was hoist on his own petard, as it were. I mean, what a jerk! And aside from the hypocrisy, what a fine message he was sending to his three teenage daughters about the role of women.

Having said that, Spitzer's bust should give pause to those in Congress who are ready to hand President Bush a free pass to continue his six-year campaign of warrantless spying on Americans.

We now know from yesterday's Wall Street Journal article that the spying Bush has been doing through the National Security Agency since early 2001 has included vast computer sweeps of not just internet and phone activity, but also bank and credit card transactions. These are sweeps of ordinary everyday people, with computers looking for odd transactions, or for codewords, or for transactions involving specific targeted organizations or addresses.
...
Now reportedly, this particular investigation was being conducted by the IRS, which allegedly was investigating the Emperor's Club. Once the IRS discovered it had caught the New York governor in its web, it forwarded the case to the US Attorney General's Office, where it was pursued by the FBI, apparently on the instructions of AG Michael Mukasey. The investigation moved from monitoring the bank to monitoring phones, and Spitzer was captured talking to the Emperor's Club dispatcher. Bingo. Promising Democratic political career ruined.

Link


QUOTE
Predatory Lenders' Partner in Crime

By Eliot Spitzer

The Washington Post
Thursday 14 February 2008

Editor's note: The following article was published in The Washington Post the day after New York Gov. Eliot Spitzer allegedly engaged the services of a call girl at the Mayflower Hotel in Washington, DC. ma/TO

How the Bush administration stopped the states from stepping in to help consumers.

Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders. Some were misrepresenting the terms of loans, making loans without regard to consumers' ability to repay, making loans with deceptive "teaser" rates that later ballooned astronomically, packing loans with undisclosed charges and fees, or even paying illegal kickbacks. These and other practices, we noticed, were having a devastating effect on home buyers. In addition, the widespread nature of these practices, if left unchecked, threatened our financial markets.

Even though predatory lending was becoming a national problem, the Bush administration looked the other way and did nothing to protect American homeowners. In fact, the government chose instead to align itself with the banks that were victimizing consumers.

Predatory lending was widely understood to present a looming national crisis. This threat was so clear that as New York attorney general, I joined with colleagues in the other 49 states in attempting to fill the void left by the federal government. Individually, and together, state attorneys general of both parties brought litigation or entered into settlements with many subprime lenders that were engaged in predatory lending practices. Several state legislatures, including New York's, enacted laws aimed at curbing such practices.

What did the Bush administration do in response? Did it reverse course and decide to take action to halt this burgeoning scourge? As Americans are now painfully aware, with hundreds of thousands of homeowners facing foreclosure and our markets reeling, the answer is a resounding no.

Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye.

Link


QUOTE
Robert Scheer's Columns

Spitzer’s Shame Is Wall Street’s Gain

Tell me again: Why should we get all worked up over the revelation that the New York governor paid for sex? Will it bring back to life the eight U.S. soldiers killed in Iraq that same day in a war that makes no sense and has cost this nation trillions in future debt? Will it save those millions of homes that hardworking folks all over the country are losing because of financial industry shenanigans that Eliot Spitzer, as much as anyone, attempted to halt? Perhaps it provides some insight into why oil has risen to $108 a barrel, benefiting most of all the oil sheiks whom our taxpayer-supported military has kept in power?
...
Frankly, I don’t care what any of these politicians do in their personal lives as long as the practice is consensual, and the thousands of dollars that exchanged hands in this case would provide a presumption that the lady in question was indeed a willing partner in this commercial transaction. True, Spitzer is an outrageous hypocrite for having prosecuted others caught in what should not be considered criminal behavior, but since when is hypocrisy on the part of a politician, particularly as to sex, so shocking?

I wouldn’t have written this column had I not read The Wall Street Journal’s Page 1 news story headlined “Wall Street Cheers as Its Nemesis Plunges Into Crisis.” The article begins with the crowing statement “It’s Schadenfreude time on Wall Street” and goes on to quote those whom Spitzer went after over what should be considered the criminal greed that has predominated on Wall Street. It was Spitzer, as much as anyone, who sounded the alarm on the subprime mortgage crisis, the obscene payouts to CEOs who defrauded their shareholders and the other financial scandals that have brought the U.S. economy to its knees.

The best rule of thumb these days is that ordinary Americans should be mightily depressed over any news that Wall Street hustlers cheer, for they have been exposed as a dangerous pack of scoundrels quite willing to rob decent, hardworking people of their homes. And of course no one on Wall Street ever paid for sex.

Link


ncMindy
This could also be fallout from the "DC Madam" and her "Little Red Book"
suswah
Excellent discoveries, Mindy. I did hear that awful Mark Levin conservative radio guy today screaming (as he does) about how Spitzer was a Democrat but that no Democrats had called for his resignation or were even talking about it.

He makes for a good "catch" for the GOP. That predatory lending article he wrote just about 3 weeks ago that "blames" Bush, hmmm....

Yup. Looks like he opened the door very wide for own his ultimate demise. Or just wide enough.

I'm just surprised when high-profile politicians do such high-risk behavior like this. They just make it so easy especially when the NSA looks to be ready to pounce at a moment's notice.

No wonder Bush has been so upset about Congress's non-renewal of FISA last month. Maybe, just maybe, he has some more fish to catch.

I see here that there's a new FISA bill that may be introduced tomorrow (Thursday). And the beat goes on...
suswah
And this final paragraph from your link to Spitzer's op ed about predatory lending in the Washington Post on February 14, 2008 (less than a month ago):

QUOTE
When history tells the story of the subprime lending crisis and recounts its devastating effects on the lives of so many innocent homeowners, the Bush administration will not be judged favorably. The tale is still unfolding, but when the dust settles, it will be judged as a willing accomplice to the lenders who went to any lengths in their quest for profits. So willing, in fact, that it used the power of the federal government in an unprecedented assault on state legislatures, as well as on state attorneys general and anyone else on the side of consumers.


Now it makes sense... dry.gif Anything to spare the legacy.
ncMindy
QUOTE (suswah @ Mar 13 2008, 01:07 AM) *
And this final paragraph from your link to Spitzer's op ed about predatory lending in the Washington Post on February 14, 2008 (less than a month ago):

Now it makes sense...
dry.gif Anything to spare the legacy.


Granted Spitzer was an obvious hypocritical fool and thought he was entitled to being 'special'...the worst side for me to watch is our media. The complicit media with shows all talking about Spitzer's sex life while ignoring predatory lending gripes me. And US citizens being glued to the TV...all because of sex. There have been scandals since the 80's, cast the first stone!?! IMO Spitzer would not have been taken down except for his op-ed. Remember the Larry Craig incident? Well, he was an *R* who went against the Patriot Act and was then outed. It's all blackmail!

QUOTE
This is the America we now live in. According to the Wall Street Journal, after a wave of national outrage forced the Bush administration to shut down its Total Information Awareness project at the Pentagon, Bush and Cheney simply moved their scheme to subject all telecommunications and bank transactions to computer monitoring over to the NSA.

Since none of this spying activity is subject to court supervision and warrant requirements, we are left having to trust the personnel at the NSA, the so-called Justice Department, and the president and his administration, not to abuse it.

Right. And think of the temptations!

Want to know what the House leadership strategy is regarding renewal of the NSA wiretap authorization? Want to know whether the Congress is serious about imposing a time limit on troops in Iraq? Just start monitoring their emails and phones.

Want to make sure Democratic members of Congress go along with a war on Iran? Just monitor their phones and emails and catch them in conversations that are suitable for a little blackmail.
...
We know that the prosecution and conviction of former Alabama Gov. Don Siegelman was an administration hit on a popular Democratic official. Siegelman is now in jail. Ditto Wisconsin state employee Georgia Thompson. These blatant political prosecutions certainly weigh on the minds of all Democratic elected officials.

Who, after all, is safe in this kind of environment, where the Bill of Rights has been set aside?
...
With that kind of power, unchecked in the hands of an intensely political administration, it's almost a certainty that it is being used and used inappropriately for political ends.


Meanwhile the Dems are still holding fast to telecom immunity, today. (Bush will veto, again.) I'm sure they all have some dirty laundry somewhere, most families do. In the Siegelman case a sex story could not be made up. Evidently he was a stand up guy who didn't partake of the escort service. They just made up some charges and all without his attorney being able to defend him because the gov. wouldn't turn over documents. We live in one sad country where sex is a sin but torture, extortion, money laundering, illegal wars and just boldface lies/criminal corruption...rule. sad.gif
ncMindy
QUOTE
Eliot Spitzer or the Subprime CEOs – Which Crime Should Really Call Up Outrage?

by Nomi Prins - USA - March 12, 2008 (Excerpts)

But they failed to heed a deeper truth, that “with great power comes great responsibility.” As Countrywide stock lost 85% of value, Merrill lost 40%, and Citigroup lost 45%, the CEOs argued that they were victims as well, not responsible participants. Mozilo referenced a housing market not seen this dire since the Great Depression. He recognized no liability, nor did he acknowledge that his company, the acts he lobbied for, and the greed of his industry might have caused the disastrous decline in that very market.

Besides which, Mozilo’s financial cushion is substantially more plush than that of the average borrower facing foreclosure. This insulated status appears to transcend culpability (though the timing of Mozilo’s stock sales may yet get him criminal charges). The issue of such extreme compensation should be examined not merely as a case study of personal avarice, but as a true problem which throws into question what is moral and what should be accepted as right or wrong in our society.

Most New Yorkers, average Americans and national pundits seemed certain that if Spitzer broke any law, he should forfeit his governorship, which he did this morning. On the other hand it’s unlikely that these CEOs will have to forfeit their gains, even if some have resigned from their positions.

Yet, shouldn’t the average American have the right to question the wildly extravagant pay these CEOs received when they refuse to bear any accountability in return? And why should they be allowed to protect themselves by exercising the power they enjoyed while busily stacking the decks in their favor at the expense of all the rest of us? If Spitzer has to pay the piper, surely the CEOs should be made to dance, or at least do community service.

(Emphasis added)


suswah
QUOTE (ncMindy @ Mar 14 2008, 02:27 PM) *
Granted Spitzer was an obvious hypocritical fool and thought he was entitled to being 'special'...the worst side for me to watch is our media. The complicit media with shows all talking about Spitzer's sex life while ignoring predatory lending gripes me. And US citizens being glued to the TV...all because of sex. There have been scandals since the 80's, cast the first stone!?! IMO Spitzer would not have been taken down except for his op-ed. Remember the Larry Craig incident? Well, he was an *R* who went against the Patriot Act and was then outed. It's all blackmail!

Meanwhile the Dems are still holding fast to telecom immunity, today. (Bush will veto, again.) I'm sure they all have some dirty laundry somewhere, most families do. In the Siegelman case a sex story could not be made up. Evidently he was a stand up guy who didn't partake of the escort service. They just made up some charges and all without his attorney being able to defend him because the gov. wouldn't turn over documents. We live in one sad country where sex is a sin but torture, extortion, money laundering, illegal wars and just boldface lies/criminal corruption...rule. sad.gif


QUOTE
The complicit media with shows all talking about Spitzer's sex life while ignoring predatory lending gripes me. And US citizens being glued to the TV...all because of sex. There have been scandals since the 80's, cast the first stone!?! IMO Spitzer would not have been taken down except for his op-ed. Remember the Larry Craig incident? Well, he was an *R* who went against the Patriot Act and was then outed. It's all blackmail!


I didn't know the Republican Senator Craig had voted against the Patriot Act. ohmy.gif Well, there it is. If they don't do what Bush/Cheney want, they're over and out. No wonder they're all so agreeable with the administration. And there's no telling how much information they've gathered.
ncMindy
QUOTE (suswah @ Mar 14 2008, 06:57 PM) *
I didn't know the Republican Senator Craig had voted against the Patriot Act. ohmy.gif Well, there it is. If they don't do what Bush/Cheney want, they're over and out. No wonder they're all so agreeable with the administration. And there's no telling how much information they've gathered.


Seems to be corporate rule. Speaking truth to power lately seems to kill a political career and the American Dream along with it. dry.gif

QUOTE
Spitzer may not escape the curse. The name “Mr. Clean” may never be applied to him again. But for those of us that track corporate fraud, who can forget his shining moments?

For example, in 2002 when ten Wall Street banks from Bear Sterns to UBS Warburg were forced to pay $1.4 billion to settle charges of “spinning” stock prices to make millions for wealthy investors? Or in 2003, when his office uncovered how mutual fund brokers allowed select clients privileges deprived to ordinary customers? Another billion dollars was paid back to the small investor. How about the $50 million in royalties that his office discovered that record companies hid from musicians in a 2004 investigation? And let’s not forget the $730 million in fines paid out in 2006 when his office discovered price-fixing among computer chip manufacturers.

When Spitzer offered his apologies for his private folly, he asked that the media remember that politics should not be about individuals but about ideas and the public good. That surely is also the role of libraries — ideas and the public good — not about celebrating the titans of greed and excess. Perhaps if Wall Street were to pay its fair share of tax dollars to spend on libraries, then there would be no need to name the Central Library after one of the men who robbed the public purse.

Will children who pass through those two stone lions to enter the library notice that their names are Patience and Fortitude? Or will they hope that one day they become as rich and famous as the man after whom the building is named?

I hope that when they look through the shelves of the New York public library, they will find books and magazines that remind generations of New Yorkers to come of Eliot Spitzer’s true legacy: of an honest man — human and fallible no doubt — who spoke truth to power.

Spitzer versus Schwarzman
ncMindy
Try as I might, this story just gets better and it has nothing to do with Spitzer's sex life. rolleyes.gif

QUOTE
The $200 billion bail-out for predator banks and Spitzer charges are intimately linked

By Greg Palast
Reporting for Air America Radio’s Clout

March 14th, 2008

[To hear it, click on the link below…]

While New York Governor Eliot Spitzer was paying an ‘escort’ $4,300 in a hotel room in Washington, just down the road, George Bush’s new Federal Reserve Board Chairman, Ben Bernanke, was secretly handing over $200 billion in a tryst with mortgage bank industry speculators.

Both acts were wanton, wicked and lewd. But there’s a BIG difference. The Governor was using his own checkbook. Bush’s man Bernanke was using ours.


This week, Bernanke’s Fed, for the first time in its history, loaned a selected coterie of banks one-fifth of a trillion dollars to guarantee these banks’ mortgage-backed junk bonds. The deluge of public loot was an eye-popping windfall to the very banking predators who have brought two million families to the brink of foreclosure.

Up until Wednesday, there was one single, lonely politician who stood in the way of this creepy little assignation at the bankers’ bordello: Eliot Spitzer.

Who are they kidding? Spitzer’s lynching and the bankers’ enriching are intimately tied.

How? Follow the money.
...
'Steering,’ sub-prime loans with usurious kickers, fake inducements to over-borrow, called ‘fraudulent conveyance’ or ‘predatory lending’ under US law, were almost completely forbidden in the olden days (Clinton Administration and earlier) by federal regulators and state laws as nothing more than fancy loan-sharking.

But when the Bush regime took over, Countrywide and its banking brethren were told to party hearty – it was OK now to steer’m, fake’m, charge’m and take’m.

But there was this annoying party-pooper. The Attorney General of New York, Eliot Spitzer, who sued these guys to a fare-thee-well. Or tried to.

Complete at link...


The Bear Sterns bailout seems odd to me, too.

QUOTE
For example, in 2002 when ten Wall Street banks from Bear Sterns to UBS Warburg were forced to pay $1.4 billion to settle charges of “spinning” stock prices to make millions for wealthy investors?
suswah
QUOTE (ncMindy @ Mar 14 2008, 07:43 PM) *
Try as I might, this story just gets better and it has nothing to do with Spitzer's sex life. rolleyes.gif

The Bear Sterns bailout seems odd to me, too.


Thanks, Mindy. Well, there it is. Greg Palast always knows how to sum it up. Sounds as if the timing has all been perfect for the bailout to be mostly downplayed. No wonder our wonderful president was so giddy yesterday during his "speech" about the economy. dry.gif
suswah
QUOTE (ncMindy @ Mar 14 2008, 07:43 PM) *
Try as I might, this story just gets better and it has nothing to do with Spitzer's sex life. rolleyes.gif

The Bear Sterns bailout seems odd to me, too.


From the link:

QUOTE
For Bear, the crisis started when market speculation grew that it might have to seize collateral -- mostly mortgage-backed securities worth next to nothing -- from the private equity firm Carlyle Group.Carlyle runs a bond fund and has come under intense pressure during the past week from creditors demanding collateral to back their investments.

As speculation swelled in the market, investors, customers and lenders raced to withdraw their money or rescind their credit lines. By Thursday night, Bear Stearns Chief Executive Alan Schwartz said, the bank realized the withdrawals might outpace the bank's resources -- so it reached out to JPMorgan for help.

JPMorgan, the nation's third-largest bank, has been hurt far less by the mortgage mess than other financial institutions. It will provide secured loans to Bear for four weeks -- insured, in essence, by the Fed.

Schwartz said it would buy Bear time and allow it to convince customers "that we have the ability to fund ourselves every day, to do business as usual." No one has disclosed how large the financing offered to Bear Stearns is.


The Carylyle Group has certainly been busy, lately. I haven't seen the media pointing out the connections with the Bush Family on any regular basis. Have you?

All about the "group" here, and here.
This is a "lo-fi" version of our main content. To view the full version with more information, formatting and images, please click here.
Invision Power Board © 2001-2009 Invision Power Services, Inc.