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Obama's Wall Street problem

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posted on May, 14 2012 @ 07:51 AM
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Obama's Wall Street problem
Politico -- By BEN WHITE | 5/14/12 4:37 AM EDT

Obama has a problem with the recent trading losses by JP Morgan.

The general belief is that Obama and the Democrats are dead set against banks and in many people's minds, the Dodd-Frank bill was supposed to help stop the banking corruptions.

But hold the phone a minute !

There is evidence to the contrary.

Everything may not look like what it appears to look like.

JP Morgan gave over $800,000 to the Obama 2008 campaign.

The fact that JPM is quick to "admit" mistakes raises suspicions.
(normally, we would not "hear" about these things until much later after the fact)



The giant $2 billion trading loss at JPMorgan Chase highlights a central problem in President Barack Obama’s case for a second term: Four years after the financial crisis nearly brought the nation to its knees, very little appears to have changed.

No high-profile bank executives are in jail. Special multi-agency task forces to go after financial fraud and mortgage market abuses appeared in State of the Union addresses, only to issue a few news releases and mostly vanish from public view.

And now one of the largest banks in the United States, headed by a Democrat and operating with government guarantees, has turned in the kind of headline-grabbing, casino-style style loss that drives voters crazy and that Obama’s financial reform bill was supposed to stop.



Some conspiracy theorists think this latest financial boondoggle was planned to further the Democrat agenda of extreme regulation. Since the general public isn't really hurt, what's the difference right ?

It seems the "Congressional Culprit" is the famous 1999 Gramm-Leach-Bliley Act that allowed banks to engage in securities trading.

The question is:

Do the big banking regulations Really help the majority of Americans ?

If so, then HOW exactly ?



Related Thread:
Obama's DOJ And Wall Street: Too Big For Jail?


What WILL #Occupy say ?


(Hint: "We told ya so" !)




posted on May, 14 2012 @ 08:10 AM
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No matter what side of the political aisle a politician sits, Wall Street has their hand in them.

Anyone who thinks that the Obama administration or the Democrats in Congress were ever against banks in this country has absolutely no clue about politics and should probably just hang their heads in shame and never post in a political thread again.

It's obvious that anyone who would have bought such malarkey only listens to one side of the news and didn't bother to fact check ANYTHING that side of the news had to say.

These kinds of people only believe what a certain bias tells them to believe and won't for the life of them look into the information themselves.

If a person believes anything any politician says, and then are shocked to learn that they lied, that person shouldn't follow politics, because to them, it's just a spectator sport. This country has a problem with too many political spectator sport fans and not enough people finding out what is really going on in our nations capital.

Both "teams" are on the same team, and their rhetoric is just an act.



posted on May, 14 2012 @ 08:42 AM
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I would call Wall Street America's problem before i would call it Obama's. As far as extreme far left regulations i have'nt seen any extreme regulations yet. As far as fixing the problem we need Glass-Steagall reinstated, untill then were just pissing in the wind.



posted on May, 14 2012 @ 09:38 AM
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reply to post by xuenchen
 




What WILL #Occupy say ?
(Hint: "We told ya so" !)


Seriously? As I stated in one of your other several threads on this topic. We already knew, we've been talking about Obama's cronyism for a while now. It's more like we've been telling you.
edit on 14-5-2012 by Kali74 because: (no reason given)



posted on May, 14 2012 @ 10:54 AM
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reply to post by xuenchen
 


By now we all know that is nothing but talk and BS with many billions if not trillions attached to it walk.

The JP morgan scandal is bigger that many even can dream about it.

JP Morgan are the investors and resposible for the criminal scan call Swaps they hold under their belt about 70 trillion of that crap

So is natural that the crap will hit the fan eventually even with all the propganda that has been financed to keep theMarkets and JP Morgan and side Partners GoldMan Sach look like they are the winners.

JP Morgan are one of the olders groups that stand behind the founders of Federal Reserve so you all know from where their support comes and where the money goes.

The biggest story this year so far and the one that rather be buried under the sand by Wall Street crooks.

JP Morgan the inventor of swap is in deep trouble.

Their swap scam is bigger than what many can even dream,

Former Long Term Capital Management (LTCM) Terrorist Matt Zames Assumes the Reigns of $70 Trillion in JP Morgan’s Exploding FinCrap

maxkeiser.com... g-fincrap/

Deja Vu: JP Morgan Credit Default Swaps Put Markets on Brink

silvervigilante.com...

Do not let the corporate media obfuscate the realities of JP Morgan scandal, it is going to be "Majestic" if is not sugar coated first.

J.P. Morgan Malinvests Free Federal Reserve Money: Market Crash, Bailout & Printing Incoming

silvervigilante.com...

Will the printing presses will start humming again to save whatever big criminal scandal is going on with JP Morgan?

Be the judge because the money protection team will be making sure we the populace do not learn how bad is going to be.










edit on 14-5-2012 by marg6043 because: (no reason given)



posted on May, 14 2012 @ 11:53 AM
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Originally posted by xuenchen
Obama's Wall Street problem
Politico -- By BEN WHITE | 5/14/12 4:37 AM EDT

Obama has a problem with the recent trading losses by JP Morgan.


We should all have a problem with the recent, potentially illegal, 2 Billion dollar trading and losses ...in only a 6 week period, by JP Morgan. It was preisely those types of gambles with investor money that nearly caused our economic collapse.


Originally posted by xuenchen
The general belief is that Obama and the Democrats are dead set against banks and in many people's minds, the Dodd-Frank bill was supposed to help stop the banking corruptions.


"General belief"?..."In many peoples mind's"?
this article seems to be hedging it's accuracy like a wall street trader


Pres. Obama and Dems are not "against" Banks. Even in the most cynical of evaluations the Dems need a healthy economy and campaign contributions to retain office.

What the Dems and the Obama administration are against are banks using investor money to secretly bet on failure of those same investors...which is what this 2 Billion dollar trade was...and what is not getting any air BTW is the fact that the trade lost...which speaks to a healthier economy than JP Morgan expected.


Originally posted by xuenchen

JP Morgan gave over $800,000 to the Obama 2008 campaign.


Pleeease!..JP Morgan Is one of Romney's largest contributors. Deregulation!!!



Romney's six largest campaign contribution sources in 2011 were executives, family members and affiliated political action committees of Goldman Sachs, JPMorgan Chase, Morgan Stanley, Credit Suisse, Citigroup and Bank of America, according to the Center for Responsive Politics, a Washington, D.C.-based group that monitors campaign finances.

www.csmonitor.com...

Romney promised to repeal the already watered down (by GOP Demands) Dodd-Frank bill.

Exactly what happened with JP Morgan Chase..They used investors money to bet that those investors would fail.

JPMorgan's $2 Billion Loss, Explained
www.npr.org...


Originally posted by xuenchen
The fact that JPM is quick to "admit" mistakes raises suspicions.
(normally, we would not "hear" about these things until much later after the fact)


No it doesn't. they were outed by other investment banks months ago and the CEO of JP Morgan tried to dismiss the rumors, but when JP Morgan tried to quitely back out of the trades the house of cards collapsed.


The trade came to light earlier this year, when reports surfaced of a "London Whale" — a trader at JPMorgan who had accumulated a position so big it was affecting the whole market.

The trade involved an index of corporate credit default swaps. These are essentially insurance policies that pay off if a company can't make payments on its debts. (Credit default swaps became a household name during the financial crisis, when they were central to the blowup of AIG, a giant insurance company.)

JPMorgan took the big hit when it tried to back off from the trade and had to sell at a loss.

www.npr.org...

Here is the comedy of this...
(1) GOP fights toothe and nail to prevent any financial regulation after Wall street loses all our money and then takes taxpayer bailouts. The financial reform bill was watered down to pass.
(2) Still not happy with any regulation...even if watered down...the GOP rail for the REPEAL of Dodd-Frank.
(3) Mitt Romney calls for the repeal of Dodd-Frank and campaigns on it...while House GOP defund it at every turn.
(4) SH*& hits the fan when JP Morgan is exposed as still making risky and unethical gambles with other peoples money. Using investors own money to bet that those same investors will fail. JP Morgan loses 2 Billion., cuz those investors did not fail.

**(5) Now the GOP are looking to shout about Obama didn't do enough to regulate the Banks???????????

Just insane...

God help me, the GOP bet every day that Americans are dumber than cattle.

edit on 14-5-2012 by Indigo5 because: (no reason given)

edit on 14-5-2012 by Indigo5 because: (no reason given)



posted on May, 14 2012 @ 01:17 PM
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Fact is most of the Frank-Dodd reforms won't kick in until 2013, and in phases. Even then, the real teeth of the reform act were pulled by Republicans;

Republicans To Introduce Bills That Would Weaken Dodd-Frank Financial Reform Legislation


Congressional Republicans on Wednesday will stage their first outright challenge to 2010's Dodd-Frank financial regulation reforms with a fistful of bills favoring private equity firms, derivatives end-users and corporate CEOs.

After months of trying to defund and defang Dodd-Frank at the administrative level, Republicans are finally unveiling draft legislation that would repeal or amend parts of the laws approved after the severe 2007-2009 financial crisis.


Republicans Continue Efforts To Delay, Weaken Dodd-Frank Rules


WASHINGTON (Sarah N. Lynch and Christopher Doering) - Two congressional committees led by Republicans approved measures on Wednesday to delay and weaken key provisions of last year's Dodd-Frank Wall Street reforms, but they were expected to fizzle in the Senate.

With Democrats in control of the upper chamber of Congress and President Barack Obama able to defend Dodd-Frank with his veto pen, efforts by Republicans to water down and postpone the reforms seemed unlikely to succeed, analysts said.

That is not stopping Republicans from pressing their rollback agenda, however, especially in the U.S. House of Representatives.

Just a sampling of the level of Wall Street influence in Washington:
Massive J.P. Morgan loss weakens Mitt Romney’s argument


The Wall Street reform bill that Obama signed into law after the worst financial crisis in decades has had a relatively low profile in the presidential race. Obama frequently argues that Mitt Romney would deregulate Wall Street and leave it to its own devices, but Dodd Frank hasn’t been as central a topic as, say, Obamacare has been.

The news of J.P. Morgan’s $2 billion trading loss could change that very quickly.

It’s already been widely pointed out that the J.P. Morgan debacle badly weakens the position of people who want to limit further oversight of Wall Street or roll back the 2010 financial reform law and its attempt to limit risk taking by banks with guarantees from government. What’s noted less often is that one of those people is the Republican candidate for president, who has pledged to repeal Dodd Frank entirely if elected.


 


About those Wall Street campaign contributions: In 2008 Wall Street banks contributed $311 MILLION dollars to politicians. And we wonder why Wall Street regulations are constantly under attack? Obama was the major recipient in 2008 (total combined was closer to $6 million) but then he dropped the Dodd-Frank act on them. Now the Wall Street darling is Mitt Rolmney - who has taken in closer to $30 million - so far - in 2012.

Wall Street Money in Politics

  • Wall Street contributions increased five-fold from $60 million in 1990 to $311 million in 2008
  • Wall Street donors consistently favored the political party in power with higher contributions in eight out of ten elections between 1990-2008
  • Republicans received 55% of total Wall Street funds from 1990-2008, compared with 44% for Democrats

Obviously with the Dodd-Frank act Wall Street is feeling severe "buyer's remorse" for their contributions to Obama in 2008, as this election cycle (2012) shows:




The sheer amount of cash Wall Street has sent Romney represents an extremely lopsided giving pattern. No other presidential candidate, including President Barack Obama, comes close to tapping the motherlode of industry riches.



posted on May, 14 2012 @ 01:20 PM
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Wow Wall Street has been a liberal/progressive talking point since the days of Teddy Roosevelt the only thing regulations do is kill competition and wealth creation.

Regulation are laws that have not stopped anything still have the Madofffs,the Lieman Brothers,Enrons and the subprime "crisis" in 2008.

The problem here is what it has always been for over 100 years destroy Wall Street Obama and the left are the problems.

Create a crisis so they can offer the solution same old song and dance JP Mogran fired 3 for that 2 billion loss the timing was indeed suspicious but it also brings up Corzine another Obama money bundler.

The Obama campaign is in dire need of cash and suddenly we have anther mf global look for a sudden cash infusion in to the Democrat campaign cash fund.


edit on 14-5-2012 by neo96 because: (no reason given)



posted on May, 14 2012 @ 01:38 PM
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Originally posted by neo96
Wow Wall Street has been a liberal/progressive talking point since the days of Teddy Roosevelt the only thing regulations do is kill competition and wealth creation.

Regulation are laws that have not stopped anything still have the Madofffs,the Lieman Brothers,Enrons and the subprime "crisis" in 2008.



Following one of the greatest runs of financial deregulation by a single President in history. What is the commonality of "Madofffs,the Lieman Brothers,Enrons and the subprime "crisis" in 2008"...I'll give you a hint, when did those folks engage in that activity and who was President.

As for the stupid idea that this was a conspiracy to support President Obama....
(1) Never has Wall Street favored one candidate (Romney) over another (Obama) in funding to the degree they favor Romney.
(2) JP Morgan is one of the top backers of Romney
(3) And they sure as sh&* are not going to contribute 2 Billion and forfiet thier reputation and stock price to offer him support in regulating thier own industry.

Again...it is offensive how stupid the GOP think the average American is...these types of attempted spin just reflect how dumb the GOP think people are.
edit on 14-5-2012 by Indigo5 because: (no reason given)

edit on 14-5-2012 by Indigo5 because: (no reason given)



posted on May, 14 2012 @ 02:18 PM
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Nothing is going to be done, no the Republic-rats or the Demo-craps, because Wall Street runs Washington, it has been like that for many decades

Anybody thinks Obama is the Champion he is not, he is just another politician in the pockets of big private interest.


So, it is important to stress that what really took place was the same exact thing which led to the financial crisis of 2008. The premise is effectively the same. No, Barack Obama, the champion of state intervention in the economy, has not done a thing to rectify the parasitical System as he celebrates with his supporters. The failed hedging strategy by JPMorgan involved credit default swaps, a financial derivative that was key in the 2008 crisis. Originally, the swaps were used in order to hedge the bank’s exposure to other investments. Their hedging was international in scope, as it included “junk” contracts out of North America, Europe and Asia.


From my source.

So do not expect anything, from the crooks that runs Wall Street as they also command the government.

That is what is happening and that is what is going to happen, no a darn thing.

What is going to be very interesting to see is how the crooks will try to fix this mess tsunami that is going to hit us again so soon after 2008 after all it comes from the same sources behind the scenes the creators and financiers of swaps


edit on 14-5-2012 by marg6043 because: (no reason given)



posted on May, 14 2012 @ 03:29 PM
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reply to post by marg6043
 


To try to lamy blame on the party that introduced and fought fiercley to strengthen Dodd-Frank against exactly these types of trades, while not "remebering" that the GOP fought loudly and publicly to allow banks like JP Morgan to make these trades...even refused to pass the legislation unless it was watered down in exactly this manner...it just seems an insane amount of delusion is required to spin it.

For the love of god, Romney ahs been promising Wall Street he would repeal the watered down Dodd-Frank bill...now he is silent......Romney Vowing Dodd-Frank Repeal Hits JPMorgan Risky Trades
www.bloomberg.com...

And you forgot to provide a link to that "Source". here you go..
silvervigilante.com...
edit on 14-5-2012 by Indigo5 because: (no reason given)



posted on May, 14 2012 @ 03:39 PM
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reply to post by Blackmarketeer
 


I would add to that this.....Boehner having drinks with the CEO of JP Morgan back in 2010...asking for Money and promising to water down/defund/block all new financial regulations. That is when the money started to flow to the GOP and Wall Street once again felt comfortable that they had Congress in thier pocket...back to old tricks.



Last week, House Minority Leader John Boehner of Ohio made a pitch to Democratic contributor James Dimon, the chairman and chief executive of J.P. Morgan, over drinks at a Capitol Hill restaurant, according to people familiar with the matter.

online.wsj.com...



posted on May, 14 2012 @ 04:16 PM
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reply to post by Indigo5
 


Yes, I forgot to quote the source and the article, thanks for posting the link again.

Still I blame all the whores working in Washington for the mess our nation is today, our corporate dictatorship is screwing the nation and they know it.

What can we the people do? just blame the parties and complain, but at the end the crooks still hold the power and we are nothing but their collateral.



posted on May, 14 2012 @ 05:14 PM
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Originally posted by marg6043

What can we the people do? just blame the parties and complain, but at the end the crooks still hold the power and we are nothing but their collateral.



McCain-Fiengold was supposed to be the launching pad for stemming the flow of money, but the GOP have challenged it in several courts and won, most famously Citizens Untied.

Many of our ills stem from the Insane amount of money in DC. We do need to do something..

Between 2009 and 2010 The Energy Industry spent 75 Million on politicians, the Healthcare Industry spent 145m on DC pols, and the Financial industry spent 318 Million...just a year and it should come as no suprise to anyone that we didn't get a public option, we still haven't got a single energy bill and financial regulation was watered down.

Campaign Finance Reform should be our first priority, because that is the root of our ills.



posted on May, 14 2012 @ 06:58 PM
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The first serious erosion of Wall Street regulations, which helped pave the way for the financial meltdown of 2007/8 was the Gramm–Leach–Bliley Act, which repealed the Glass-Steagall Act. It was the Gramm–Leach–Bliley Act that allowed Citicorp to buy Traveler's Group to become Citigroup. The sponsors of Gramm–Leach–Bliley Act were all Republicans; Sen. Phil Gramm (R, Texas), Rep. Jim Leach (R, Iowa), and Rep. Thomas J. Bliley, Jr. (R, Virginia)



posted on May, 14 2012 @ 10:49 PM
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Originally posted by Blackmarketeer
The first serious erosion of Wall Street regulations, which helped pave the way for the financial meltdown of 2007/8 was the Gramm–Leach–Bliley Act, which repealed the Glass-Steagall Act. It was the Gramm–Leach–Bliley Act that allowed Citicorp to buy Traveler's Group to become Citigroup. The sponsors of Gramm–Leach–Bliley Act were all Republicans; Sen. Phil Gramm (R, Texas), Rep. Jim Leach (R, Iowa), and Rep. Thomas J. Bliley, Jr. (R, Virginia)


Yes, 3 Republicans.

Gramm was a Democrat and converted.

The other two are pretty good examples of Liberals.

And Clinton signed the bill without much shouting.
And there was huge Democrat support in Congress.
Only 7 Dem Senators voted "NO" and 38 voted "YES" !!
51 Dem Reps voted "NO", 155 voted "YES" !!

I wonder why the 111th Congress didn't change the Gramm–Leach–Bliley Act ?????

We never heard much of anything about that.














edit on May-14-2012 by xuenchen because: (no reason given)

edit on May-14-2012 by xuenchen because: (no reason given)



posted on May, 15 2012 @ 01:26 AM
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reply to post by xuenchen
 


The 106th Congress was:

Senate Pres. pro tem:Srom Thurmond (R)
House Speaker: Dennis Hastert (R)
Members: 100 Senators
435 Representatives
5 Non-voting members
Senate Majority: Republican Party
House Majority: Republican Party

On the Gramm–Leach–Bliley Act the majority votes came from both House and Senate Republicans.

If you want to blame the democrats for going along, that's one thing, but I wonder why you fail to even mention the Republicans in any of your posts.

You say Wall Street is Obama's problem? Well it is, and he obviously has recognized it as a problem, and pushed through financial reform - fighting the Republicans EVERY SINGLE step of the way.

JPMorgan loss proves Obama 'right' to push financial reform


White House press secretary Jay Carney said that in the wake of JPMorgan Chase's $2 billion trading loss, it's "amazing" that some — including presumptive GOP nominee Mitt Romney — are still looking to repeal the president's Wall Street reform law.

Speaking to reporters Monday, Carney said the staggering loss reinforces the need for the Dodd-Frank financial reform law and the president's call for tougher financial regulations.

"The president fought very hard against Republicans and Wall Street lobbyists to get Wall Street reform passed," he said, according to a pool report.

Congressional Democrats have used the trading loss to renew their push for tough implementation of Dodd-Frank, as regulators are still writing the rules making the overhaul a reality. In particular, lawmakers said the multibillion-dollar drop proved the need for a strict "Volcker Rule," which is aimed at preventing banks from making risky trades for profit.


Romney Vowing Dodd-Frank Repeal Hits JPMorgan Risky Trades (Update 1)


"Mitt Romney has been clear that he would repeal Wall Street reform, an engraved invitation for Wall Street to return to the biggest, riskiest bets that crashed the economy, destroyed trillions of dollars of wealth, and cost millions of workers their jobs," said campaign spokesman Ben LaBolt, according to Bloomberg.


JPMorgan CIO retires, Obama says proves reform case


LONDON/NEW YORK (Reuters) - The leader of JPMorgan Chase & Co's hedging unit is retiring after trading losses that could end up exceeding $3 billion, a shortfall that President Barack Obama said might have led the government to step in had such losses struck a smaller bank.

"This is the best, or one of the best managed banks. You could have a bank that isn't as strong, isn't as profitable making those same bets and we might have had to step in. That's exactly why Wall Street reform's so important," President Obama told ABC's "The View" in an interview taped to air Tuesday.


 


You can either agree with the Democrats that Wall Street banks must be regulated and in need of financial reform, OR you can agree with Republicans that "nah, let's let them do their own thing and we'll just keep picking up the pieces." If obstructionist Republicans had not blocked every attempt to reform Wall Street some of those curbs on excesses and abuses could have already been in place. Instead we have Republicans engaged in a record-setting number of filibusters and effectively bringing the government to a stand-still.



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