Archive for Citigroup

New World Order : The Collapse of the US Dollar? Secret meetings to bring in new currency !

Posted in Constitution, New World Order, Obama, US Dollar with tags , , , , , , , , , , , , , , , , , , , on October 7, 2009 by saynsumthn

From The Independent

The demise of the dollar

In a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading

By Robert Fisk

In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.

The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years. ..

These plans will change the face of international financial transactions,” one Chinese banker said. “America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate.”

Read Rest here

US Treasury ‘overstated’ health of America’s biggest banks

UN calls for new reserve currency

The United Nations called on Tuesday for a new global reserve currency to end dollar supremacy which has allowed the United States the “privilege” of building a huge trade deficit.

Important progress in managing imbalances can be made by reducing the reserve currency country?s ‘privilege’ to run external deficits in order to provide international liquidity,” UN undersecretary-general for economic and social affairs, Sha Zukang, said.

Speaking at the annual meetings of the International Monetary Fund and World Bank in Istanbul, he said: “It is timely to emphasise that such a system also creates a more equitable method of sharing the seigniorage derived from providing global liquidity.

He said: “Greater use of a truly global reserve currency, such as the IMF?s special drawing rights (SDRs), enables the seigniorage gained to be deployed for development purposes,” he said.

The SDRs are the asset used in IMF transactions and are based on a basket of four currencies — the dollar, euro, yen and pound — which is calculated daily.

China had called in March for a new dominant world reserve currency instead of the dollar, in a system within the framework of the Washington-based IMF.

From The Telegraph(UK)
By James Quinn, US Business Editor
Published: 8:35PM BST 05 Oct 2009

The US Treasury overstated the financial health of America’s nine largest banks last year when it invested $125bn into them, an internal investigation has found.

The nine banks forced to take part in the capital injection scheme included Citigroup and Bank of America, who, in spite of both receiving $25bn of TARP funds last October, both required a further injection of $20bn plus loan-loss guarantees to cover losses on toxic assets.

The October injections were however forced on to the banks in question by Treasury Secretary Hank Paulson, telling reluctant chief executives including Goldman Sachs’ Lloyd Blankfein and JP Morgan Chase’s Jamie Dimon that not taking the money was not an option.

In his new report, Mr Barofsky highlights a number of public comments made by both Treasury and Fed officials last October about the health of the nine banks, saying that such “inaccurate statements” only serve to make the TARP more controversial than it has already proven to be.

Mr Barofsky said last month he thought it “highly unlikely” the Treasury will ever be able to recoup its full investment.

Obama’s ‘pay czar’ no stranger to big paychecks

Posted in Constitution, Holdren, Obama, Uncategorized with tags , , , , , , , , , , on September 16, 2009 by saynsumthn

By Karey Wutkowski and Steve Eder, Reuters August 28, 2009


WASHINGTON — The “pay czar” tasked by the U.S. government with ruling on the eye-popping compensation of some of Wall Street’s top earners is far from a stranger to big paychecks and the trappings of wealth.

Kenneth Feinberg made $5.76-million last year as a partner in his Washington law firm, Feinberg Rozen LLP, according to a government ethics filing obtained by Reuters.

And his assets, which include a stake in his law firm, two homes and dozens of investments, are worth anywhere from $11-million to $37-million, according to the filing, which places assets in broad value categories.

His homes are a $1.66-million house in Bethesda, Maryland, near Washington, and a $1.96-million vacation home in West Tisbury, Massachusetts, on Martha’s Vineyard. And he has investments in a series of public companies, including eBay, Wal-Mart Stores Inc, Pepsico Inc, Bed Bath & Beyond Inc and Berkshire Hathaway Inc — though none in the banking and auto companies bailed out with government money, Mr. Feinberg’s ethics filing shows.

In addition to income from his law firm last year, Mr. Feinberg also reported gains on his investments, including dividends, and $53,624 received from eight law schools, including New York University, Georgetown University and University of California, Los Angeles.

He also reported $32,200 in income from his interest in Strategic Settlement Advisors Inc, a Washington claims settlement company. And he sold his stake in a real estate development on Jekyll Island in Georgia last year, making up to $1-million on the sale.

Seven companies still locked in the U.S. Treasury’s Troubled Asset Relief Program, including Citigroup Inc, American International Group Inc and Bank of America Corp, have had to submit proposed compensation plans for their 25 highest-paid employees to Mr. Feinberg. He also has oversight over compensation for the best paid at Chrysler Financial, Chrysler Group LLC, General Motors Co and GMAC Inc.

While Mr. Feinberg, who was appointed in June, is working for free as the “pay czar,” the fact that he is wealthy could bring some solace to critics on Wall Street who believe his lack of experience in the realm of executive compensation could color his decisions on how the top executives at major firms are compensated.

If he is successful and he is compensated as a successful person, it certainly gives him a different view on the evaluation of other successful people,” said Charles Elson, the director of the Weinberg Center for Corporate Governance at the University of Delaware. He said Mr. Feinberg’s salary would make him more sympathetic to other high-earners and more likely to enjoy a similar lifestyle.

After all, Mr. Elson said, “He’s being paid like a Wall Street lawyer.

Still, Mr. Feinberg’s mission is not to judge the number of zeros.

If you asked a citizen who earned considerably less than that to opine on whether payment was excessive or not, they might have a different answer from Kenneth Feinberg,” said Paul Hodgson, a compensation expert at independent research firm Corporate Library. “On the other hand, I think what he’s supposed to be looking at is not whether payments are excessive in size, but whether they are correctly structured and could encourage excessive risk taking.”

There may also be some questions about whether Mr. Feinberg, who remains a partner at his law firm, has any conflicts of interest, though the disclosures in his ethics filing are far from damning.

According to his law firm’s web site, three of the institutions whose compensation he is supervising are clients of the firm or have participated in mediation with it: Citigroup’s Citibank, AIG and Merrill Lynch, now part of Bank of America.

But the ethics filing, which lists four dozen firms as sources of income, shows Mr. Feinberg was a court-appointed ”neutral” mediator and did not represent the companies.

Mr. Hodgson said Mr. Feinberg’s legal work with firms that have received billions of taxpayer dollars — such as AIG and Citigroup — could be an asset.

I guess he’s occupying a similar kind of position now, being a mediator between Treasury and the banks themselves,” Mr. Hodgson said, adding that Feinberg’s prior work should have been made public at the time of his appointment.

A one-time chief of staff to Senator Edward Kennedy, Mr. Feinberg is also active politically, making more than $300,000 in campaign contributions since 1990, mostly to Democrats, according to the Center for Responsive Politics. The recipients include Barack Obama, Hillary Clinton and Christopher Dodd, chairman of the Senate Banking Committee.

He also serves on the boards of a series of non-profits, including the John F. Kennedy Library Foundation, Human Rights First, the Washington National Opera, and RAND Institute for Civil Justice.

He spreads his own banking across three institutions — Bank of America, Wells Fargo & Co’s Wachovia, and Swiss bank UBS.