The Real Housewives of
Why is the Federal Reserve forking over $220 million in bailout money to the wives of two Morgan Stanley bigwigs?
The Fed sent billions in bailout aid to banks in places like Mexico, Bahrain and Bavaria, billions more to a spate of Japanese car companies, more
than $2 trillion in loans each to Citigroup and Morgan Stanley, and billions more to a string of lesser millionaires and billionaires with Cayman
Islands addresses. "Our jaws are literally dropping as we're reading this," says Warren Gunnels, an aide to Sen. Bernie Sanders of Vermont. "Every one
of these transactions is outrageous."
Billionaires in the Cayman Islands uh? Bailouts for Japanese car companies uh? Money for banks in Mexico, Bahrain and Bavaria? I bet lots of that was
money laundering from the drug operations the CIA is running, not to mention corrupting officials for various reasons in various countries.
And money was given to wives of Morgan Stanley's CEOs...
But if you want to get a true sense of what the "shadow budget" is all about, all you have to do is look closely at the taxpayer money handed
over to a single company that goes by a seemingly innocuous name: Waterfall TALF Opportunity. At first glance, Waterfall's haul doesn't seem all that
huge — just nine loans totaling some $220 million, made through a Fed bailout program. But upon closer inspection, Waterfall TALF Opportunity boasts
a couple of interesting names among its chief investors: Christy Mack and Susan Karches.
Christy is the wife of John Mack, the chairman of Morgan Stanley. Susan is the widow of Peter Karches, a close friend of the Macks who served as
president of Morgan Stanley's investment-banking division. Neither woman appears to have any serious history in business, apart from a few
philanthropic experiences. Yet the Federal Reserve handed them both low-interest loans of nearly a quarter of a billion dollars through a complicated
bailout program that virtually guaranteed them millions in risk-free income.
More on the wives ..
In August 2009, John Mack, at the time still the CEO of Morgan Stanley, made an interesting life decision. Despite the fact that he was earning
the comparatively low salary of just $800,000, and had refused to give himself a bonus in the midst of the financial crisis, Mack decided to buy
himself a gorgeous piece of property — a 107-year-old limestone carriage house on the Upper East Side of New York, complete with an indoor 12-car
garage, that had just been sold by the prestigious Mellon family for $13.5 million. Either Mack had plenty of cash on hand to close the deal, or he
got some help from his wife, Christy, who apparently bought the house with him.
And if she loses money, it's 90% the taxpayer's loss. And if she makes money, it's all theirs.
Just two months before the Macks bought their fancy carriage house in Manhattan, Christy and her pal Susan launched their investment initiative
called Waterfall TALF. Neither seems to have any experience whatsoever in finance, beyond Susan's penchant for dabbling in thoroughbred racehorses.
But with an upfront investment of $15 million, they quickly received $220 million in cash from the Fed, most of which they used to purchase student
loans and commercial mortgages. The loans were set up so that Christy and Susan would keep 100 percent of any gains on the deals, while the Fed and
the Treasury (read: the taxpayer) would eat 90 percent of the losses.
I just cannot continue reading the article, I'm too pissed. Read the whole thing, it's insane. America needs LOTS AND LOTS AND LOTS OF ROPE... to hang
We don't need anything else to charge all those involved with high treason, we've already got the documents, from the FED itself through the audit.
Congress will probably not act on this since I'm sure a bunch of them knew about this and said nothing and it would make them accomplice to the
crimes... not to mention those accounts in the Cayman, wouldn't surprise me if a few of them were owned by some in congress.
We don't need much to get all those SOBs in jail forever, WE GOT THE DOCUMENTED PROOF.
All we need is ENFORCEMENT.
And if no judge will do it, then maybe it's time for the citizen to make the scum in power respect the law. Citizen arrest. And if that doesn't work,
you have three choices.
Let it go
Run for office/run a judge that is honest at the federal level to get those SOBs
The bank bailout was never about a ``bank bailout``, it was about paying their goons to continue the corruption. On September 10, 2001, they announced
2.3 trillion $ was missing from the Pentagon... they used that money to pay their goons. And now trillions have been used again to pay their goons...
and this time the excuse was a bank bailout.
edit on 13-4-2011 by Vitchilo because: (no reason given)