Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: SEC

Jon Corzine Proves Regulation is Rigged

Our Governor

After spending the entire weekend trying to sell his company, MF Global, Chairman Jon Corzine finally capitulated, and his board declared bankruptcy on Monday morning, October 31. It was during negotiations with a potential suitor for the business, Interactive Brokers (IB), that word leaked out that customers’ monies were missing, and IB left Corzine to fend for himself. A board meeting was hastily called and ended Corzine’s dream of building another Goldman Sachs with other peoples’ money.

It isn’t as if the regulators were asleep. According to the New York Times, alarm bells went off last June when regulators from the Financial Industry Regulatory Agency (FINRA) first discovered that

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Legal Fallout From Housing Collapse Continues

gavel

Image by s_falkow via Flickr

The announcement by the Federal Reserve of an “enforcement action” against Goldman Sachs for engaging in “a pattern of misconduct and negligence” in its handling of home mortgage loans was entirely predictable. Charges of such misconduct go back for months when it was first discovered that mortgages and other mortgage-related documents had been “robo-signed” and foreclosure documents hadn’t been properly reviewed and that Goldman’s Litton Loan Servicing unit took actions “without always confirming that documentation of ownership was in order.”

The ruling requires Goldman to

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Corzine to Replace Geithner as Treasury Secretary?

HOBOKEN, NJ - NOVEMBER 02:  New Jersey Gov. Jo...

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Despite protestations from Jon Corzine, former New Jersey governor, that he has no interest in taking Treasury Secretary Timothy Geithner’s place if Geithner decides to step down, Corzine did manage to have a clause put into his company’s bond offering prospectus that if he did accept the position, bond holders would be paid an extra one percent interest, just in case.

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County in Alabama is Bankrupt, Just Like the U.S.

Bribe

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At the very last minute, county commissioners in Jefferson County, home to the metropolis of Birmingham, Alabama, decided to postpone a final decision on whether or not to declare bankruptcy over their excessive indebtedness. The bonded indebtedness incurred to build a state-of-the-art sewage treatment plant exceeds $3 billion, far beyond what the county can afford to service. And raising sewer fees for a fourth time in ten years

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The Food Crisis Explained (Away)

Logo of the Food and Agriculture Organization

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Hysterics and Manipulation

When the UN’s Food and Agriculture Organization (FAO) announced its latest round of increases in the cost of food, analysts were nearly breathless in their recommendations for solutions that involved—what else?—more international “cooperation,” under the tender ministrations and control of the UN.

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Government Uses “Blunt Instrument” to Extract Taxes

Image representing U.S. Small Business Adminis...

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Rep. Rick Mulvaney (R-S.C.), chairman of the Small Business Subcommittee on Contracting and Workforce, told the Washington Business Journal last week that “instead of rewarding those small businesses that choose to compete and win contracts, the government essentially pre-accuses them of cheating on their taxes and withholds 3 percent of all payments. This is flat-out wrong and this burdensome requirement should be repealed.”

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The Economy Also Weakens Obama’s Reelection Hopes

Obama leaves the stage

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The trickle of bad news about the economy has turned into a torrent, and is now threatening Barack Obama’s chances at reelection. On Wednesday the Institute for Supply Management issued its manufacturing index, which was expected to rise. Instead, it fell, to 53.5, perilously close to the edge of recession in manufacturing. John Silva, an economist at Wells Fargo, was blunt:

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What’s Wrong with Insider Trading? Ask Raj Rajaratnam

NEW YORK, NY - APRIL 12:  Billionaire Galleon ...

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When Raj Rajaratnam, founder of Galleon Management, was convicted on all 14 counts of insider trading earlier this month, it made the phones ring in lawyers’ offices all across the country. Rajaratnam was only one of 47 people charged but he was by far the biggest fish caught in the net set by United States attorney for Manhattan, Preet Bharara. It took Bharara’s office 9 months of wire-tapping Rajaratnam’s phone, and 18 months of additional investigative work to get the convictions, and Bharara was ecstatic: “The message today is clear–there are rules and there are laws, and they apply to everyone, no matter who you are or how much money you have.”

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The Chicago Merry-Go-Round

William Daley

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When President Obama announced the appointment on January 6 of former Clinton administration Commerce Secretary William Daley as his new Chief of Staff, he had nothing but high praises for him, calling him a “patriot” who represented a position of moderation without histrionics. It also smacked of nepotism, continuing the circular flow of Obama insiders from the political machinery of Chicago to Washington and back again. The chorus of approval came from the usual sources, such as the U.S. Chamber of Commerce. Chief Executive Officer Thomas J. Donahue exulted:

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CNBC Takes Aim at Remington

Remington 700 LTR

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The CNBC “Remington Under Fire” documentary that premiered October 20 misfired in terms of substantiating allegations that the trigger mechanism on Remington’s highly popular 700 series is unsafe. Instead, the “10-month investigation” essentially rehashed charges, allegations and complaints stretching back into history for years. The timing for the recycling of unsubtantiated charges was curious, considering the proximity of the program’s release to the elections.

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“NFL” Means No Free Lunch for Taxpayers

View from an aircraft on approach to Newark-Li...

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When the 82,566 fans of the New York Giants cheer their team at the home opener of the season this Sunday at the New Meadowlands Stadium, they will likely enjoy the game more than the taxpayers of New Jersey who still owe $266 million on the old Giants Stadium which was demolished to make way for the new one. Those taxpayers may also be dismayed to learn that the revenue stream from the old stadium has now all but disappeared, putting them on the hook for $35 million in principal and interest payments each year to service the bonds that built the old stadium as part of the Meadowlands Sports Complex back in 1976.

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SEC Charges NJ With Cooking the Books

Jon Corzine, Governor and former Senator from ...

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Notable in the statement from the Securities and Exchange Commission (SEC) last week that it was charging the State of New Jersey with securities fraud was the lack of fines, punishment, or names of the guilty. The fraud began in 2001 and wasn’t uncovered until the New York Times exposed it in April of 2007.

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Free Markets, Deregulation, and Blame

Quarterly Journal of Austrian Economics

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Free markets, in the full sense of the phrase, exist only in the minds and imaginations of free-market economists from the Austrian School, such as Ludwig von Mises and Murray Rothbard.

The classic definition is simply a market without intervention or regulation by government. In truth, commerce in any developed country is always controlled to some extent by government. A free market requires the right to own property, which means that the wages, earnings, profits, and gains obtained by providing products and services to others belongs to the individual generating them. The assumption is that an individual with this kind of freedom would only make an exchange that gained him a benefit.

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Stock Rally Owing to Plunge Protection Team Conspiracy?

Polar Bear Plunge 2008

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The 60 percent gain in stocks since March was largely caused by secret government purchases of stock-index futures, the CEO of TrimTabs claims.

The Plunge Protection Team (PPT), otherwise known as the Working Group on Financial Markets, has been the target of conspiracy theorists ever since an article in the Washington Post in 1997 first shed light on the operation. The Working Group was created by Executive Order following Black Monday’s market crash on October 19, 1987, when the stock market declined more than 20 percent in a single session. Its purpose was to give recommendations for legislative and private sector solutions for “enhancing the integrity, efficiency, orderliness, and competitiveness of financial markets and maintaining investor confidence.”

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Is Social Security a Ponzi Scheme?

Mug shot of Charles Ponzi (March 3, 1882 – Jan...

More than $16 billion of investors’ money evaporated in Ponzi schemes in 2009, according to the Associated Press. Although the names Bernie Madoff and Allen Stanford were in the headlines in 2009, many other Ponzi schemes were uncovered as the economy declined, making continued payouts to investors impossible.

As Warren Buffet said, “Only when the tide goes out do you discover who’s been swimming naked.”

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Inside Goldman Sachs

Goldman Sachs Building

When the New York Times announced in their lead article on the front page of their Christmas Eve edition that the Securities and Exchange Commission was investigating Goldman Sachs for allegedly self-dealing, it was a moment of surprise for many and, for others, a moment of clarity and confirmation.

It was a simple announcement, really: The Securities and Exchange Commission was investigating some potential self-dealing by a large financial services company. But, like Toto pulling away the curtain to expose the imposter behind the Wizard of Oz, the world could see, however briefly, the inner workings of how business is really done at Goldman.

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.
Copyright © 2020 Bob Adelmann