Kovacevich went on to say, "It's definitely politics. It has nothing to do with justice or restitution to the innocent victims. In fact, more of the money is going to the coffers of the states and various departments than the victims." He then concluded, "Why are we charging the stockholders instead of going after the people who did wrong? Corporations don't engage in criminal behavior. People do."
Kovacevich is right on target. These huge bank settlements are election-year ATMs for the Obama administration. It was $12 billion for JP Morgan, another $7 billion for Citigroup and on and on. It's a real shakedown.
In fact, no one even remotely knows how these penalty-payment numbers are calculated. And the federal government's disbursement of these funds is equally mysterious. As the Wall Street Journal editorial page has pointed out, a lot of money has gone to states run by Democratic governors. Yup.
And in the $7 billion Citibank settlement, there's a section explaining how $2.5 billion goes to "community reinvestment and neighborhood stabilization." What's that mean?
All this sounds suspiciously like the housing version of the ACORN electioneering operations. In other words, community organizers. In other words, left-wing groups who had absolutely nothing to do with the credit crisis.
But this shakedown isn't isolated to banks. In spirit, it extends to all businesses. It's the Team Obama way.
A few days before the BofA settlement, The Hill ran a story on how the White House's midterm strategy is going to revolve around "economic populism and so-called economic patriotism." That's interesting. Democratic strategist Jamal Simmons said, "There is still a great amount of discomfort in the American electorate around the economy, and particularly anger with Wall Street and corporate chieftains."
Out campaigning in Texas last month, Obama said, "Let's rally around an economic patriotism, which says, instead of giving more tax breaks to millionaires, let's give tax breaks to working families to help pay for child care or college."
He went on to add, "Instead of protecting tax loopholes that let corporations keep their profits overseas, let's put some of that money to work right here in the United States rebuilding America."
Today, at 11:20 AM PT: Get the Market Movements in Advance: William's Edge Webinar for October 24th, 2014 | John Ransom
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Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for October 22nd, 2014 | John Ransom
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