Obama likely to pick third Asian-American for cabinet

That's nice. Everyone knows you can't really appoint any gays to the cabinet until you have at least 5 or 6 of every other minority.

Read More......

Former Merrill CEO refuses to answer Cuomo's questions

This is not going to work out well for John Thain. He's alienated Bank of America CEO (who is also facing his own challenges) and now he's not cooperating with Andrew Cuomo. Maybe Thain is too much in the Rick Santelli world of Wall Street big shots and doesn't grasp the seriousness or the hostility around the country to free rides in this environment. Talk about the American oligarchs may not be such so far off after all.

New York State Attorney General Andrew Cuomo filed a motion Monday asking former Merrill Lynch Chief Executive John Thain to provide more information about bonuses paid out on the eve of the bank's merger with Bank of America last year.

Cuomo's office alleges that Thain is not answering the questions under instructions from Bank of America , and as a result, the bank is interfering with its investigation of the bonus payments.

In a deposition last week, Thain refused to answer questions about how the bonuses were determined for certain individuals, citing instructions from Bank of America attorneys.

Read More......

Did the SEC overlook Lehman insider trading?

But remember, self-regulation is the cure for all problems as the Republicans always like to tell us. If you figure out what the heck that means in a case like this, please let me know. Maybe Senator Grassley, who is now hot on the trail of failed regulation, can brief us on how his party has helped address problems such as this over the years.

The insider trading allegations, and more than 4,000 e-mail messages relating to them, were presented to Linda Thomsen, the former director of enforcement at the S.E.C. last April by Ted Parmigiani, a former analyst at Lehman who followed the semiconductor industry. According to Mr. Grassley’s letter, Mr. Parmigiani spoke with high-level enforcement officials several times both on the phone and in person. An in-person meeting on April 30, 2008, lasted for six hours, the letter said.

Mr. Parmigiani, who was dismissed by the firm in June 2005 for what it said were performance issues, declined to comment. John Nester, a spokesman for the S.E.C., said he would not discuss whether Ms. Schapiro had responded to Mr. Grassley’s letter or the allegations made by the former analyst. But he said in a statement: “We certainly share the senator’s interest in vigorous enforcement against illegal insider trading.”

Mr. Grassley noted in his letter that his staff had examined the materials given to S.E.C. enforcement lawyers by Mr. Parmigiani and that “there are many documents that raise suspicions of insider trading.” The e-mail messages and other documents appeared to provide “ample detail to assist in launching an investigation,” Mr. Grassley wrote.

Read More......

Gays, bad. Hitler, not so much.

Marry another man? It's a Mormon jihad. Kill another human being - or 6 million? They welcome you with open arms.

Many tyrants, mass murderers, pirates, gangsters and other notorious criminals have been subjected to proxy rites by The Church of Jesus Christ of Latter-day Saints. The names of these infamous ones have ended up in the in the LDS Church’s database of posthumous ordinances, the International Genealogical Index (IGI): Adolf Hitler, Martin Bormann, Benito Mussolini, Josef Stalin, Mao Tse-Tung, Vlad the Impaler, Blackbeard the Pirate, Jean and Pierre Lafitte, Al Capone, Bonnie and Clyde, and Bugsy Siegel.

And not to overlook Ted Bundy, one of the most prolific serial killers in U.S. history. Ted Bundy was born as Theodore Robert Cowell, on Nov. 24, 1946, in Burlington, Vt. Bundy killed an untold number of women across the country between 1974 and 1978. He bludgeoned his victims, then strangled them to death.

Bundy also engaged in rape and necrophilia. Authorities believe his victims numbered over 100. Some of Bundy’s victims were from Utah. On Jan. 24, 1989, Ted Bundy was executed in the electric chair at Florida State Prison in Starke, Fla. In the fall of 1974, during the time he was murdering innocent women, Bundy moved to Salt Lake City and began attending law school at the University of Utah. The following year, he joined the LDS Church.

Was Ted Bundy’s name removed from Mormon rolls because of his brutal crimes? Even if Bundy was excommunicated from the LDS Church, he was listed as Theodore Robert Cowell in the online IGI of the posthumously baptized, until Feb. 11, 2009. After leaving a blood-soaked trail of bodies and wounded families, can Ted Bundy, the poster boy of serial killers, now accept or reject the offer of celestial glory? Is this Mormon justice?

Read More......

Breaking - CNBC reports AIG in talks for more federal bailout money - loss of $60B

Remember when the Republicans insisted this was going to be a money making venture? They were laughing and counting the profits. Money making in terms of bonuses, perhaps, but in terms of capitalism and customer revenue, not so much. Those Republicans are the same ones hiding from their responsibilities today and offering nothing other than obstruction. Don't worry though because CNBC's Rick Santelli is surely preparing a massive online protest where he will try and do better than the dozens of new fans he rallied to protest rewarding bad behavior. If anyone would understand the value of providing billions more in addition to the $150 billion already handed over to AIG - a single company - it will be Santelli. The report from CNBC is that they will announce an additional $60 billion in write-downs. Yes, $60 BILLION!

The Obama homeowner bailout plan is a $50 billion dollar plan, or $10 billion less than AIG is about to announce is gone. For those in the GOP and at CNBC struggling with math, that would be one third of the value of what the US government has already paid to AIG to keep them afloat with shiny offices, "retention bonuses" and other bonuses plus well paying jobs and benefits. None of this even touches the numerous rate cuts that the Fed delivered to help out the traders that so adore Santelli. That free money should also be considered a bonus to traders not to mention a violation of capitalism. Let's face it, Santelli and his trader friends are a bunch of good-for-nothing pinko commies, but we already knew that.

This AIG loss might be the ugliest loss so far in this crisis but remember, as Roubini says we are only in the third or fourth inning of this game.

American Insurance Group, the insurance giant that is 80-percent owned by the US government, is in discussions with the government to secure additional funds so it can keep operating after next Monday, when it will report the largest loss in U.S. corporate history, CNBC has learned.

Sources close to the company said the loss will be near $60 billion due to writedowns on a variety of assets including commercial real estate.

That massive loss is likely to spur downgrades in its insurance and credit ratings that will force AIG to raise collateral that it doesn't have.

In addition, if AIG's book value falls below a certain level, as it seems certain to do, it will trigger default in certain of its debt instruments, say people familiar with the situation.

All of this adds up to a huge headache for the Federal Reserve and Treasury, which have already provided over $150 billion of assistance to AIG.

Read More......

CBS News senior exec won't back off his earlier claim that obama is "incredibly dangerous"

While the country moves to the left with a Democratic House, Senate and White House, CBS moves to the right.

Read More......

McDonald's denies workers comp for shot employee

This represents what is wrong with corporate America and McDonald's in particular. This kid risked his life while working at McDonald's to help a customer and was shot multiple times. McDonald's then decides that the shooting did not occur while he was performning his McDonald's duties so denies him workers comp - he was not asking for more - and hospital costs.

Right, so I hear beating up customers and shoot outs inside restaurants are great for business. This young man deserves some help from McDonald's, at a minimum, but if they were smart they would find some common sense and reward him as well. When insurance companies and corporate America wonder why there are so many crazy lawsuits, they can look at their ignorance on no-brainers like this. (hat tip DM) Read More......

Norm Coleman can't win. Now, he's just doing the GOP's dirty work to keep Franken out of the Senate for as long as possible

I always thought Minnesota's Norm Coleman was one of the smarmiest Republicans in Congress. He's proving the extent of it now.

The Minnesota Senate recount has looked bad for former GOP Senator Norm Coleman for awhile, but it keeps getting worse for him. Coleman lost the election, but is continuing his legal suit. And, he's losing ground in court by the day.

It's becoming more and more clear that this is just an effort to keep Democrat Al Franken out of the Senate. Coleman is doing the national GOP's dirty work. He's even got George Bush' election lawyer, Ben Ginsburg, working the case. This is now all about preventing the Democrats from getting their 59th vote in the Senate.

Coleman is putting his partisan interests ahead of the interests of Minnesotans. While the nation is in an economic crisis, Minnesota is missing a vote in the Senate. From the Star-Tribunue:

The Senate election trial is a month old, enough time to ask: Does Norm Coleman have a chance of winning?

A series of court rulings have dealt the Republican long odds for overturning DFLer Al Franken's 225-vote lead. The three judges hearing the case have been only partly receptive to Coleman's bid to expand the field of ballots as he seeks more votes, and they brushed aside his claim of systemic problems with Minnesota elections.

Coleman once wanted to examine up to 11,000 rejected absentee ballots in hope that enough might eventually be opened and counted to help him overtake Franken. Now he's looking at opening perhaps a couple of thousand ballots. And the number could turn out to be even smaller.

"It's very hard, the way it's set up right now, for him to be able to win," said David Schultz, a Hamline University law professor specializing in elections.

"Very slim," was how Duke University law Prof. Guy-Uriel Charles characterized Coleman's current chances.

"Coleman is in a bubble running out of oxygen," said Lawrence Jacobs, a University of Minnesota political science professor.

Coleman cannot win. He's going to pursue his frivolous lawsuit anyway.

The GOP will do everything and anything to block Barack Obama's agenda. We know that. Another Democrat in the Senate means one vote closer to cloture. That's what this is about now. Read More......

Dustin Lance Black's very powerful speech after winning an Oscar for "Milk"

Dustin Lance Black won the Academy Award for writing the screenplay for "Milk." He gave a very powerful and poignant speech with a message for gay and lesbian kids.
Read More......

Republican Senator seems to wish that Justice Ruth Bader Ginsburg dies in 9 months

Very weird, morbid, and inappropriate comments from yet another Republican Senator. Two Trent Lott moments for two different Republicans in just one weekend?

U.S. Sen. Jim Bunning predicted over the weekend that U.S. Supreme Court Justice Ruth Bader Ginsburg would likely be dead from pancreatic cancer within nine months.

During a wide-ranging 30-minute speech on Saturday at the Hardin County Republican Party's Lincoln Day Dinner, Bunning said he supports conservative judges "and that's going to be in place very shortly because Ruth Bader Ginsburg … has cancer."

"Bad cancer. The kind that you don't get better from," he told a crowd of about 100 at the old State Theater.

"Even though she was operated on, usually, nine months is the longest that anybody would live after (being diagnosed) with pancreatic cancer," he said.

It's rather clear that Bunning is thrilled at the prospect of Ginsburg's imminent death. Read More......

Monday Morning Open Thread

Good morning.

A new week begins. Congress returns after its recess. Tomorrow, the President goes to Capitol Hill to give the first year equivalent of the State of the Union. After eight years of George Bush, the country is in a crisis. I guess Obama will be a little more politic about how he says that, but he should remind the country of that fact. Also, a lot of the Republicans who will be in the House chamber for his speech helped create the mess we're in. And, they're not doing anything to fix it.

On the Oscars, I did see and did love "Slumdog Millionaire." Also, was very happy to see Sean Penn win Best Actor for "Milk." So, to get us started on this last Monday in February, the song that won Best Song, Jai Ho:
Read More......

The United States of Citibank

Rarely have we witnessed so many enormous failures be rewarded so richly. Do we really need even more Citibank executives to be in positions of power and influence in the Obama administration? It's bad enough Obama crammed his economic team with them but now this? Haven't they done enough damage to the country already? This is hardly the type of hope and change I was expecting. In fact, it's specifically the kind behavior that many of us voted against in November.

President Barack Obama is considering appointing his biggest Wall Street fundraiser to become ambassador to the UK, according to rumours circulating in Washington.

The job, traditionally seen as the most prestigious in American diplomacy, is likely to go to Louis Susman, a former executive at Citigroup, nicknamed “the vacuum cleaner” for his ability to suck up money from donors.

The new President, elected on a wave of popular revulsion against cronyism in Washington, warned earlier this month that at least some ambassadorial positions would be “political” appointments, although he had raised hopes that he would to break with the past and make more senior appointments from the diplomatic service.

Mr Susman would be replacing Robert Tuttle, who was sent to London by George Bush, for whom he raised $200,000 (£140,000). As one of Mr Obama’s most important fundraisers, Mr Susman has amassed more than $800,000. If appointed, the 71-year-old Wall Street veteran, who retired as vice-chairman of Citigroup Capital Markets on 1 February, would be handed the keys to the ambassador’s grace and favour mansion on 12 acres of Regent’s Park in London. The Washington Post first reported Mr Susman’s name, citing a source with knowledge of the negotiations. The appointment is “likely to happen” but is “not final”, the source said. Officials at the British Foreign Office and at Buckingham Palace will be consulted on the nomination, but it is understood that they have not yet been contacted.

What the hell happened to the Obama that we liked so much last year? Now more than ever, we do not need gangs of banksters in the halls of power. Read More......

SEC somehow overlooked red flags with Stanford

Anyone can make a mistake, but you have to wonder what the SEC was thinking. The new management better start showing an interest in oversight and regulation or else there's not going to be much left.

For years, there were red flags — so many they could have massed into a crimson blanket.

As with the Bernard Madoff case, the scandal surrounding billionaire R. Allen Stanford now seems clear and obvious in hindsight. Yet Stanford managed to run his alleged scheme even while the Securities and Exchange Commission and other regulators had him on their radar screens and investigated his businesses. Stanford wasn't charged until last week.

From his tiny accounting firm's office near a North London fish-and-chips shop to certificates of deposit promising outsized returns sold by a bank in Antigua, ample warning signs over the years suggested Stanford's business wasn't what it seemed.

Among them:

_A finding by regulators in June 2007 that Stanford's company lacked enough capital to function properly as a securities brokerage firm. The company paid $20,000 to settle charges by the National Association of Securities Dealers without admitting or denying them.

_Stanford's businesses were inspected and investigated several times, starting in 2006 by the SEC and in 2004 by the NASD, the brokerage industry's self-policing group, now called the Financial Industry Regulatory Authority, or FINRA. NASD's scrutiny resulted in several disciplinary actions: the regulator fined his brokerage company four times, with penalties totaling $70,000, for violations that included misleading investors in sales materials about the risks of the CDs.

_A 2006 lawsuit by a former employee alleging that Stanford's company ran a Ponzi scheme. Two other ex-employees asserted in a suit in January 2008 that Stanford's Antigua bank, Stanford International Bank Ltd., sold CDs based on inflated returns and had destroyed documents.

The list continues. Let's just say the "three strikes rule" doesn't appear to be the case the SEC. Read More......

Citibank asks government to invest more cash into bank

But Citi says everything is fine. Not a care in the world, really. Uh huh. What bank out there doesn't want even more government investment, knowing full well this looks and smells like another step towards full nationalization? And to think Obama can't hire enough of this idiots.

Citigroup Inc. is in discussions with regulators about a plan for the federal government to take a larger ownership stake in the bank, according to a report Sunday.

The Wall Street Journal, citing sources familiar with the matter, reported that the government would convert a large portion of its preferred Citigroup shares to common shares.

The government received the preferred shares in return for investing $45 billion in Citi as part of the $700 billion bailout of the financial system.

According to the Journal, the talks involve Citi executives and regulators at the Federal Reserve and Office of the Comptroller of the Currency. Officials in the Obama administration have not said whether they support the plan, the Journal reported.

Citigroup spokesman Michael Hanretta declined to comment on the Journal report. On Friday, the bank issued a statement saying that its capital base is "very strong" and capital reserves were among the highest in the industry at the end of the fourth quarter.

Define "very strong" because it looks as though our interpretations may be way off. Read More......

China trains police to quell social unrest

Without a quick turnaround in the global and Chinese economy, this situation could become ugly very quickly. Time is not the friend of the Beijing government these days. It's disappointing that Hillary turned her back on the human rights issue so quickly during this critical period of change, though she never was expected to be very progressive.

The Chinese authorities are training police forces around the country to deal with potential labour unrest as unemployment rises at its fastest rate for decades. President Hu Jintao has called on the army to remain loyal in the face of growing discontent at the first downturn many Chinese have ever experienced.

The global economic slump has already led to 26 million migrant workers, out of an estimated 130 million in China, losing their jobs. Collapsing export markets for Chinese toys, shoes and electronics have caused the closure of 670,000 small and medium-sized companies in the country, many of them based in the manufacturing areas of the south.

Workers have protested in the one-time boom towns of southern China’s industrial belt as foreign companies pull out. Outlook magazine, published by the official Xinhua News Agency, has warned that slowing economic growth may provoke anger, in particular among migrant workers and university graduates, and senior security officials have held conferences on how to stop instability taking hold.

Read More......