IMPORTANT NEWS REPORTED YESTERDAY, May 21, 2012
From The Blaze:
By Becket Adams
China no longer needs to go through Wall Street when it wants to purchase copious amounts of U.S. debt — they can go right to the source: the U.S. Treasury.
This is the Treasury’s “first-ever direct relationship with a foreign government,” according to a recent report from Reuters.
But what does this mean? It means that unlike every other central bank in the world, the People’s Bank of China won’t have to place orders for U.S. debt through the Wall Street banks appointed by the feds as “primary dealers” to bid on Treasury auctions.
“China, which holds $1.17 trillion in U.S. Treasuries, still buys some Treasuries through primary dealers, but since June 2011, that route hasn’t been necessary,” Emily Flitter writes for Reuters.
So how does China bid on U.S. debt? Simple: through a “direct computer link” to the U.S. Treasury’s auction system. China has been bidding on U.S. debt without working through the aforementioned Wall Street banks as “primary dealers” — although every other bank is required to.
Surprisingly (unsurprisingly?), the deal between the Treasury and China wasn’t publicly announced.
“Direct bidding is open to a wide range of investors, but as a matter of general policy we do not comment on individual bidders,” Matt Anderson, a Treasury Department spokesman, told Reuters.
Why keep it on the down low? Reuters posits that by keeping Wall Street’s knowledge of the debt purchases to a minimum, and therefore containing what is already a politically contentious debate, it’ll keep the prices down for China’s bank.
Considering the fact that China is America’s greatest creditor, as well as the fact that they are becoming increasingly antagonistic in cyber security attacks, maybe – just maybe – granting the Communist country a direct computer link to the treasury auction system isn’t the wisest decision.
Of IMPORTANT NOTE: Zhou Xiaochuan, the Governor of the People’s Bank of China is a member. Is this why Geithner spoke so fondly of Zhou talking about a World Currency in place of the US dollar?
Democrat or Republican…..it does not matter to the Bildeberg Group or the Trilateral Commission. The Federal Reserve and the IMF are working for a One World Governance…..the groundwork has been laid and we are speeding toward their planned “end”…….
Obama connected to George Soros……Soros and his Open Society dreams…..Soros’ Open Society Institute is a Contributor and Supporter of the Group of 30; will we see Soros’ dreams come to fruition?
Group of Thirty:
Established in 1978
The Group of Thirty is a private, nonprofit, international body composed of very senior representatives of the private and public sectors and academia.
The Group of Thirty aims to deepen understanding of international economic and financial issues, to explore the international repercussions of decisions taken in the public and private sectors, and to examine the choices available to market practitioners and policymakers.
The work of the Group of Thirty impacts the current and future structure of the global financial system by delivering actionable recommendations directly to the private and public policymaking communities.
Would it bother YOU to discover this supposed non-for-profit Institution had connections to the IMF, the Federal Reserve and the World Bank?
The Group of Thirty hosts an International Banking Seminar every year. Look here to see who attended in 2011.
International Banking Seminar 2010
Would it bother YOU to discover this group is lead by connections to the Obama Administration, the Washington Post, etc.? Ever hear of the Volcker rule?
Trouble viewing video? Click Here.
President Obama calls for new restrictions on the size and scope of financial institutions to rein in excessive risk-taking and protect taxpayers. The proposed legislation is called the Volcker Rule in recognition of the efforts of former Federal Reserve Chairman and current Presidents Economic Recovery Advisory Board Chairman Paul Volcker. January 21, 2010.
Timothy Geithner, the U.S. Secretary of the Treasury is a former member of this group. Supposedly stepped down after Obama won the election.
|Josef Ackermann||Montek Ahluwalia|
|Pedro Aspe||Abdul Aziz Al Quraishi|
|Roberto Campos*||Sir Roderick Carnegie|
|Max Corden||Andrew D. Crockett|
|Dick de Bruyne||Jose Martinez de Hoz|
|Andre de Lattre||Otmar Emminger*|
|Janos Fekete*||Victor K. Fung|
|Timothy Geithner||Alan Greenspan|
|Wilfried Guth*||Armin Gutowski*|
|Jawad Hashim||Thomas Johnson|
|Yoh Kurosawa*||Alexandre Lamfalussy|
|Anthony Loehnis||Fritz Machlup*|
|Jacques Maisonrouge||Stephen Marris|
|Michiya Matsukawa*||Jose Antonio Mayobre*|
|C.W. McMahon||Soburo Okita*|
|Suliman Olayan*||Tommaso Padoa-Schioppa*|
|I. G. Patel||Rupert Pennant-Rea|
|Claude Pierre-Brossolette||Karl Otto Pohl|
|Jacques Polak||Gordon Richardson*|
|Robert Roosa||William Ryrie|
|Anthony Solomon*||Robert Solomon|
|Herbert Stein*||Tasuku Takagaki|
|Cesar Virata||Rod Wagner*|
|Henry Wallich*||Sir Peter Waiters|
|Dennis Weatherstone*||Johannes Witteveen|
|The Honorable Janet L. Yellen|
Group of 30
The Group of Thirty, often abbreviated to G30, is an international body of leading financiers and academics which aims to deepen understanding of economic and financial issues, and to examine consequences of decisions made in the public and private sectors related to these issues.
The group consists of thirty members and includes the heads of major private banks and central banks, as well as members from academia and international institutions. It holds two full meetings each year and also organises seminars, symposia, and study groups. It is based in Washington, D.C.
The Group of Thirty was founded in 1978 by Geoffrey Bell at the initiative of the Rockefeller Foundation, which also provided initial funding for the body. Its first chairman was Johannes Witteveen, the former managing director of the International Monetary Fund.
The Bellagio Group, formed by Austrian economist Fritz Machlup, was the immediate predecessor to the Group of Thirty. It first met in 1963, to investigate international currency problems, particularly the balance of payments crisis which faced America throughout the early 60s.
From the Federal Reserve Bank’s own website:
Timothy F. Geithner became the ninth president and chief executive officer of the Federal Reserve Bank of New York on November 17, 2003. In that capacity, he serves as the vice chairman and a permanent member of the Federal Open Market Committee, the group responsible for formulating the nation’s monetary policy. President Obama nominated Mr. Geithner to be the 75th Secretary of the Treasury and the U.S. Senate confirmed him to the position on January 26, 2009.
Mr. Geithner joined the Department of Treasury in 1988 and worked in three administrations for five Secretaries of the Treasury in a variety of positions. He served as Under Secretary of the Treasury for International Affairs from 1999 to 2001 under Secretaries Robert Rubin and Lawrence Summers.
He was director of the Policy Development and Review Department at the International Monetary Fund from 2001 until 2003. Before joining the Treasury, Mr. Geithner worked for Kissinger Associates, Inc.
Mr. Geithner graduated from Dartmouth College with a bachelor’s degree in government and Asian studies in 1983 and from the Johns Hopkins School of Advanced International Studies with a master’s in International Economics and East Asian Studies in 1985. He has studied Japanese and Chinese and has lived in East Africa, India, Thailand, China, and Japan.
Mr. Geithner serves as chairman of the G-10’s Committee on Payment and Settlement Systems of the Bank for International Settlements. He is a member of the Council on Foreign Relations and the Group of Thirty.<<<<
Group of Thirty Events
The events hosted by the Group of Thirty are invitation-only forums in which very senior members of the banking, financial and regulatory community come together to discuss issues of common concern in off-the-record settings conducive to frank exchanges of views and positions.
The Group meets in plenary session twice a year. For your information we have included a list of the speakers at recent plenary sessions.
60th Plenary Session
December 4-6, 2008 <<<Note date: One month after Obama victory.
Hosted by Timothy Geithner<<<<<<<<<<<<<<<<<<
Federal Reserve Bank of New York
Jacob A. Frenkel, Chairman, Group of Thirty, Vice Chairman, AIG Inc.
Timothy Geithner, President, Federal Reserve Bank of New York
William J. Brodsky, Chairman & CEO, Chicago Board Options Exchange
Jaime Caruana, Financial Counsellor, International Monetary Fund
The AGENDA of the Plenary meeting:
Contributors and Supporters
The Group of Thirty is a 501c3 non-for-profit institution. Donations in support of our program and activities are tax deductible. If your institution would like to become active in and support our work, please contact the Group of Thirty staff for more information on (202) 331-2472 or via email on firstname.lastname@example.org. We look forward to hearing from you.
Absa Group Ltd
Arab Fund for Economic and Social Development
Asociacion Española de Banca (AEB)
Austrian National Bank
Banco Central de Chile
Banco de Galacia
Banco de Portugal
Bank Leumi le Israel BM
Bank of East Asia, Ltd.
Bank of Nova Scotia
Bank of Tokyo Mitsubishi UFJ
Banque Centrale du Luxembourg
Banque de France
Brown Brothers Harriman & Co.
Central Bank and Financial Services Authority of Ireland
Central Bank of Barbados
Central Bank of Jordan
Central Bank of Malta
CIB Bank Ltd
Commonwealth Bank of Australia
Danmarks National Bank
Deutsche Bank AG
Dubai Financial Services Authority
Goldman Sachs and Co.
Gulf International Bank
Hong Kong Monetary Authority
HSBC Holdings Plc.
Indian Banks’ Association
Japan Credit Rating Agency
LCH Clearnet Group Limited
Mizuho Financial Group Inc
Monetary Authority of Singapore
Moore Capital Management
Morgan Stanley & Co., Int’l
National Bank of Hungary
People’s Bank of China
Reserve Bank of Australia
Reserve Bank of India
Sella Holding Banca
Singapore Government Investment Corporation
Soros Fund Management/Open Society Institute
Sullivan and Cromwell
The Challenger Foundation
The connector in this story is Timothy Geithner, under Bush the president of the Federal Reserve Bank of New York and now Obama’s Treasury Secretary. Geithner in June 2008 convened closed door meetings with 17 banks, essentially allowing them to propose and draft their own rules for the derivatives market.
This led to advocacy by the Fair Finance Watch that Geithner’s meetings were in fact rule making that excluded the public in violation of the Administrative Procedure Act, and by Inner City Press, as media, to get the meetings opened to journalists and the public.
The Administrative Procedures Act (5 U.S.C. Section 553) and related laws require that when the government engaged in rule-making, it must provide notice to the public, and allow and weigh public comments. The New York Fed under Geithner tried to rule-make without any involvement by the public, even the public most impacted by the subprime lending that underlies these processes. The New York Fed on June 9, 2008 met with a group of the largest banks to discuss, according to the Geithner himself
“Regulatory policy. These are the incentives and constraints designed to affect the level and concentration of risk-taking across the financial system. You can think of these as a financial analog to imposing speed limits and requiring air bags and antilock brakes in cars, or establishing building codes in earthquake zones. Regulatory structure. This is about who is responsible for setting and enforcing those rules. Crisis management. This is about when and how we intervene and about the expectations we create for official intervention in crises.”
Press accounts made clear that the financial instruments and regulatory issues discussed behind closed doors are related to issues of public interest, which in fact are disproportionately impacting low- and moderate- income people and communities of color — subprime and predatory mortgages.
The financial institutions invited, in mid 2008, were:
Bank of America, N.A. – Barclays Capital – BNP Paribas – Citigroup – Credit Suisse – Deutsche Bank AG – Dresdner Kleinwort – Goldman, Sachs & Co. – HSBC Group – JPMorgan Chase – Lehman Brothers – Merrill Lynch & Co. – Morgan Stanley – The Royal Bank of Scotland Group – Societe Generale – UBS AG – Wachovia Bank, N.A.
Buy-Side Firms: AllianceBernstein – BlueMountain Capital Management LLC – Citadel Investment Group, L.L.C.
Fast forward to March 2009, with Geithner despite tax evasion installed as Obama’s Secretary of the Treasury, and with Lehman having failed and Wachovia been swallowed by Wells Fargo. Now he is promoting monopoly powers in the market for an even smaller group of banks, just seven: Citigroup, JPMorgan Chase, Goldman Sachs, Morgan Stanley, Barclays, Credit Suisse and Deutsche Bank — which despite European headquarters received billions of dollars in U.S. Troubled Assets Relief Program bailout funds through AIG.
Now the idea is to formalize the monopoly through legislation, not rule making. Industry friendly Congress people like Connecticut’s Chris Dodd are supporting the monopoly for the privileged. The fig leaf policy argument is that derivatives should runs through regulated banks. The push is made now, before it is formalized that non-banks, too, are regulated. It is a pure power grab, with Timothy Geithner as the connector. And who is fighting this monopoly of the morally if not financially bankrupt? To be continued.
March 23, 2009
Citigroup‘s Pandit put out this spin last week, “The work we have all done to try to stabilize the financial system and to get this economy moving again would be significantly set back if we lose our talented people because Congress imposes a special tax on financial services employees,” Mr. Pandit wrote in a memo distributed to Citi’s 300,000 employees.
Bank of America‘s Ken Lewis claims that B of A is “part of the solution for the financial crisis” through its subsidized acquisitions of Countrywide Financial and Merrill Lynch. Most say, part of the problem…
March 16, 2009<<<<Note date!
In DC, “Inevitable” Fraud as Obama Jokes with JPM Chase, Meets Citi and ExxonMobil
Byline: Matthew Russell Lee of Inner City Press
WASHINGTON, March 12 — As President Barack Obama promises to find and “call out” misuses of the stimulus package, and to review the over 7,000 earmarks in the budget bill he signed this week, the chairman of his Recovery Act’s Transparency and Accountability Board, Earl Devaney, told the Press of a “naive impression that given the amount of transparency and accountability called for by this Act, no or little fraud will occur… some level of waste and fraud is unfortunately inevitable.”
Accordingly, the same is true not only at the United Nations — despite Obama not mentioning the need for UN reform in his comments Tuesday after meeting Secretary General Ban Ki-moon — but also with the bank bailout funds of the Troubled Assets Relief Program. Nevertheless, Obama joked with JPMorgan Chase‘s Jaime Dimon at the Business Roundtable’s gabfest Thursday in Washington. As a smaller banker asked the final question of Obama — no questions were taken after his meeting with the UN’s Ban —Obama said that banking has of late become complex, and that he could ask “Jaime” about it.
Also on the White House’s list of Roundtable attendees was Citigroup’s longtime board member and now chairman Richard Parsons. Citigroup veered into predatory lending, JPM Chase at a minimum securitized it, while lending to payday lenders and pawnshops. What then is so funny?
Obama’s successor as Senator from Illinois Roland Burris is said to have a brother who is going through foreclosure. A well-known Representative from the state of Illinois, sponsoring a pro-industry payday lending bill, has taken over $10,000 from the lender QC Holdings. If this is how politics will be in the current Washington, predatory lending can be expected to continue.