Rolling Stone magazine writer Matt Taibbi unveils unfair investment practices by wives business bigs

[naaman fletcher]

Source: NY Daily News

n a revealing article in the new issue of Rolling Stone magazine, Matt Taibbi reports that Christy Mack, the wife of Morgan Stanley Chairman John Mack, and Susan Karches, the widow of the company's former investment-banking division president, Peter Karches, are among the chief investors in a company that received $220 million in low-interest loans. The funds came from a federal bailout program that "virtually guaranteed them millions in risk-free income," according to the article.

...

Taibbi writes that in 2009, Christy Mack and Susan Karches launched Waterfall TALF Opportunity, a company with a Cayman Islands address, although the two women did not seem "to have any experience whatsoever in finance."

...

Taibbi reports that with an initial upfront investment of $15 million, Waterfall TALF received $220 million in cash from the Fed, most of which it used to purchase "student loans and commercial mortgages." He further explains that the loans were set up so that the investors "would keep 100% of any gains on the deal while the Fed and the Treasury (read: the taxpayer) would eat 90% of the losses."

As of last fall, he continues, $150 million of the total the women borrowed had yet to be paid back. He also observes that the public has "no way of knowing how much" the investors earned on these transactions, because the Fed has "repeatedly declined" to provide information on how it priced the student loans and commercial mortgages Waterfall TALF purchased.

Read more: http://www.nydailynews.com/gossip/2011/04/12/2011-04-12_rolling_stone_magazine_writer_matt_taibbi_unveils_unfair_investment_practices_by.html

---

And nothing will happen... the bankers simply steal whatever they want and nobody cares.

[Angry Dragon]

1. Who ever set that up should be in jail

I am really getting sick of this fraud from all corners..........

[Frustratedlady]

4. Amen! I can't believe so many scams are being funded by the taxpayers.

Good grief, anyone with a Cayman Island address would be suspect. That means this is another scam that isn't paying taxes, I suppose?

[PatSeg]

24. The American people

are their unlimited bank account. They are probably chuckling at how easy it is.

[66 dmhlt]

79. Well, I'm taking my share as a Bed & Breakfast visit ...

Since they were able to buy that $13.5 MILLION carriage townhouse on the Upper East Side with OUR money, I thought I'd just drop in for a nice stay. Looks to me like they got room:





Hell, it's got a TWELVE-CAR GARAGE - so feel free to join me. According to "The New York Observer Magazine" it's located at 165 - E. 70th St.

PAR-TAY! PAR-TAY! PAR-TAY! PAR-TAY! PAR-TAY! PAR-TAY!

[PatSeg]

84. Holy Crap!

I'll meet you there this weekend. Should I call and let them know we're coming? (Twelve-car garage?)

[blunderbuss]

10. getting?

[Angry Dragon]

11. I have been there a long time

just trying to control the anger

[Moostache]

29. I have given up controlling the anger...

FREE-FLOWING HOSTILITY is far more soothing these days...

I don't want jail for them, I want a "Trading Places" style bankruptcy and ruin for them.

How much is enough?
Mack has already stolen billions in undeserved compensation throughout his worthless career and he needs MORE?
By setting up dummy corporations in his wife's name and pretending nothing is amiss?

Human toxic waste....truly representative of the worst our pathetic species is capable of becoming.

[wordpix]

68. here's a smile for you: "The Real Housewives of Wall Street Go to Jail": a show we'd love to watch

:rofl:

It'll never happen. Their lawyers will get them off and if they're found guilty, they'll pay a little hush money with a small fine.

[Enthusiast]

73. Trading Places would

really be a popular movie if it had been released more recently. One of my all time favorites.

[robinlynne]

55. and every other person involved.

[wordpix]

64. +1 where is our "Justice" Dept? Calling Eric Holder, calling Barack Obama...

WTF are you?

[TBF]

80. They are busy putting anti-war (leftist) activists in jail. nt

[txlibdem]

85. ++1, you mean Holder and Obama, the two multi-millionaires???

"Eric Holder is a Bronx-born judge with an estimated net worth of $5.7 million dollars."
... from: http://www.celebritynetworth.com/richest-politicians/eric-holder-net-worth/

"Barack Obama is the former Senator from Illinois and the 44th President of the United States with an estimated net worth of $10.5 million dollars."
... from: http://www.celebritynetworth.com/richest-politicians/presidents/barack-obama-net-worth/

Do you honestly think the multi-millionaires in power give a flying fig about you or your opinion???

[Enthusiast]

72. Fraud everywhere but no tax revenues.

Just a tad suspicious? And no DOJ.

[Steerpike]

2. It don't matter if you or I care!

Someone with power and influence has to care...And apparently the person at the top does not care enough about to sic his Justice Department on them...at least not in a serious manner. oh well...

[closeupready]

3. And as spouses, they don't have to testify against each other in court,

so that's an added method of obscuring what such arrangements are all about.

[wordpix]

65. that's fine, husbands and wives can go down together pleading the 5th

If this is what a Rolling Stone reporter found out, think want the DOJ could do---IF it had the backbone.

[Enthusiast]

76. Get real.

IT IS NOT BACKBONE! It is blatant fucking dereliction of duty.

[AlbertCat]

83. It is blatant fucking dereliction of duty.

Hey, baby! It's, like, the new attitude!

It's like the filibuster.

If it looks like there is the slimmest chance things might get difficult/uncertain/EXPENSIVE... then just drop it without even trying/working/solving.

The mere threat of a filibuster makes the Senate throw up its hands and forget it. (We all know it Senators were actually made to stand up and read from the phone book for days, the filibuster would not happen, most likely)

The DOJ won't investigate anything it might, probably, perhaps have a slim chance in hell of losing. Just drop the whole thing.

[valerief]

5. It's not stealing when bankers' wives do it. It's business. nt

[mahatmakanejeeves]

6. It's easy to see why teabaggers are angry, but

they are directing their anger at the wrong people. They would do themselves a favor to look up to see who is pulling their strings.

[valerief]

7. But all the media they're exposed to tells them to hate liberals. nt

[Steerpike]

8. You are absolutley correct!

But it only makes us look bad when our people fail to ride herd on these financial buzzards! If some poor liberal makes a slight slip of the tongue he's either fired or asked to resign or put on trial! But these captains of financial crime just skate away on the thin ice of a new day. If this were a Republican administration there would already be a bevy of Independant Prosecuters and a wide variety of trials going on of Liberals and Liberal Operatives...with or without evidence or guilt...

[valerief]

12. There's no us and them when it comes to finance except the 1% and the rest of us.

The top 1% of dems are the same as the top 1% of reps. They're all walleteers.

[JDPriestly]

38. I like that walleteers. That says it all.

Where do the walleteers keep their wallets? In their back pockets right next to their politicians.

[valerief]

50. Badda bing! nt

[freshwest]

26. By their logic, liberals=regulation=bad for business=source of their financial woes. You can't win.

[Enthusiast]

74. "It's all that spending by liberals. and

Liberals are turning the country commie." You can actually read this kind of ignorance all over the internet.

[Plucketeer]

16. There ARE some lesser animals that reason can have an influence on

Tea Baggers aren't amongst those creatures. That they're "challenged" makes them angry at those that DO have skills of comprehension.

[Warren DeMontague]

19. That's not by accident.

Look! Over there! Not over here!

'Course, it's easy when a certain low-information segment of the populace has been programmed to hate minorities, gays, 'welfare queens', Atheists, and the like.

[Dokkie]

37. The "independent" FED is to blame here

This is why some tea baggers like Ron Paul and strong prgressives like Sanders are fighting these monsters. The Sarah Palin tea parties would like to give those guys a tax break as opposed to the Paultards who would want nothing more than handing those 2 broads.

[swilton]

9. Nepotism at its finest!

[Loge23]

13. It makes the gossip page of "The News"!!

Like much of Matt's excellent work, this stuff goes nowhere. It's a wonder to me that Matt is still alive at this point.
The Daily News, per the link, relegates this to the gossip page - lest they actually have to do some journalism!!
At least in a still somewhat open society, we get to see the carnage as it happens. The banks have essentially made the crimes mainstream now.

[patrice]

14. The Fed is privately owned money that controls us by fractional reserve lending to finance our debt.

We NEED publicly owned money to compete with the Fed.

[dotymed]

43. Man, the Fed IS a great racket too.

They print U.S. currency and then loan it to the government at the prevailing rate. How do you "OWN" a Federal Reserve? They absolutely cannot fail unless America folds. Which, if things stay the same, will not be long. Just long enough to make the little guy really suffer... bleed every last cent...
HEY...UNCONTROLLED CAPITALISM DOESN'T WORK!

Todays America is exactly like the U.S.S.R. was before it became a failed state.

If Americans would DEMAND real change, through a revolt, we might be able to save a lot of our country. Instead we are letting the wealthiest pick it clean.

[raouldukelives]

15. Hey, we need to tighten our belts and quit complaining

Someone has to pay for this you know.

[Democracydiva]

17. Do you remember

when Bush "joked " that his base is the "haves and the have mores"? Well the joke is on us ..It is Obama's base as well..As a mater of fact it is the "base" of 90% of the jokers serving in DC whether they have a D or an R next to their name.

[KansDem]

18. "...used to purchase 'student loans and commercial mortgages.'"

And, or course, students loan cannot be discharged in bankruptcy! You're in hock to these "investors" until you either pay off the loan or die...which ever comes first.

What a sweeeeeet deal!

[wordpix]

66. & isn't it nice that we the people are financing commercial mortgages

so the fat cats can reap their rents while we pay out if things go bad.

[femrap]

20. All protests and demonstrations

should occur at the Federal Reserve Building in DC.

[RedCloud]

21. Time to waterboard them?

[CanonRay]

22. One set of laws for the rich thieves, another set for the poor thief

Rob a 7-11 and you'll find out what I mean. Yet these two get away with a couple of hundred million our of our pockets. All while paying no taxes, I'm sure.

[ashleyforachange]

23. These people keep stealing money...

but are not in jail. WTF.

[roxiejules]

25. Rolling Stone link

http://www.rollingstone.com/politics/news/the-real-housewives-of-wall-street-look-whos-cashing-in-on-the-bailout-20110411?page=3

There is no belt-tightening on the other side of the tracks. Just a free lunch that never ends.

[blackspade]

27. Whole families of crooks.

As informative as they are, Taibbi's articles are painfully infuriating to read.
When will this rampant theft stop?

[BobbyBoring]

87. When will it stop??

I hate to say this, but when a few "fat cats" are found floating in the East River, it might begin to subside.

[fasttense]

28. With the help of Bernanke, Geithner and Obama another scam is set up for the rich to skim.

"TALF stands for "Term Asset-Backed Securities Loan Facility," which, Taibbi writes, is also the sleep-inducing technical name of the federal bailout "program that Mack and Karches took advantage of." He explains that the federal aid they received "falls under a broader category of bailout initiatives designed" by Federal Reserve chief Ben Bernanke and Treasury Secretary Timothy Geithner."

And why did Obama re-appoint Bernanke? And why did Obama appoint Geithner?

Another 100 million for the immoral, greedy, soulless uber rich while grandmother gets her Medicare and Social Security cut.

Wake up America. Your national wealth is walking out of the treasury and the powers that be are helping it disappear.

[ooglymoogly]

33. "I am not who you think I am" 0 assured the oligarchs.

Meaning I am not who my base thinks I am. Meaning watch what I do, not what I say to keep my grassroots in line. I want to be just like you....Please accept me, on my knees I beg you, please let me in. Poverty and the middle class just ain't my thang. I loath them just as much as you. Here I'll show you.

[BobbyBoring]

34. The Ben Bernanke and Geithner should be tarred and feathered

and water boarded too!

[LaPera]

30. Rolling Stone mag - The best progressive investigating journal out there!

Thanks again, RS

[tosh]

32. +1.

[Raster]

35. +10

Crazy world!

[mod mom]

81. +1 Taibbi made me a subscriber!

[Corruption Winz]

31. So, since I'm paying for this illegal act.... am I going to jail, too? n/t

[brewens]

36. People that will raise hell about any public assistance, because

we're giving them money they didn't have to work for, don't realize this kind of thing is worse. It's worse because of the huge advantage we pile on people that already have it made.
It's a huge economy but everyone still gets paid out of the same pot. If you give huge chunks away to people like this for nothing, somewhere you won't be able to afford to pay for something worthwhile.

[girl gone mad]

41. Even a lot of public assistance is specifically designed to further enrich the wealthy.

For instance, food stamps often can't be used to purchase fresh produce at farmer's markets. JP Morgan makes a killing processing food stamp benefits. Wal-Mart gets to pay its employees below market wages because of public assistance subsidies. If you investigate many of our programs designed to fight poverty, you find that they disproportionately benefit big corporations and entrenched interests.

[wordpix]

67. and public assistance keeps the poor from demonstrating angrily in the streets

b/c they're fed and housed---poorly---but their bellies are full.

[Octafish]

39. This is something even a Teabagger's brain can wrap around.

Millions and Billions and Trillions for the friends of the BFEE.

[xchrom]

40. Some how I don't think these women are as I'll informed

About financials as it makes them sound.

And not to put too fine a point on it: Michael Moore was right.
America is not broke and we should all be very, very angry that this pie isn't being served up differently.

[Raksha]

42. It's like American taxpayers are their goddamn ATM!

I am SOOOO sick of these people...fucking parasites!

[SHRED]

45. nice call

Can I steal that ATM phrase?

---

[MichiganVote]

59. +1

[walerosco]

44. TARP

the gift that keeps on giving :)
K & R

[trumad]

49. Yeah way to go Bush

[walerosco]

51. Dictator Bush

Passed TARP without any of the other branches of govt. Too bad it was only the spineless liberal that had majority of both houses. Phew

[newspeak]

52. yeah, and some of us here were calling the financial

fiasco that Little Boots and his "base" were pulling on the rest of us. Some of us knew we were going down economically because of his further deregulation, privatizing and war profiteering with little or no accountability. Nothing like before you leave office informing everyone that the whole country is going to financially go down unless you do what me and my corrupt friends want.

[Enthusiast]

78. You can call them liberals

but that would be inaccurate. I'm a liberal, I know liberals. It isn't "spineless", it is "bought and paid for".

[Blue_Tires]

46. Why does anyone bother to invest in Wall Street when it's rigged worse than a casino?

[thelordofhell]

47. Makes cattle futures look like chicken feed

[Citizen Worker]

48. Socialism and welfare for the rich, free market capitalism for the working class.

[Bozvotros]

53. The 9 F's of American Finance

Fraud, fees, fines, foreclosures, fantasies, fast food and film fuels American finance. Any other F words come to mind?

[Odin2005]

54. And we have the gall to complain about corruption in 3rd world countries?

[underpants]

56. Taibbi walked into covering this racket as an almost complete novice

which he readily admits in the early articles.

He had no pre-conceived notions or, more importantly, any alliances.

His reporting on this has been complete and almaniac. It will go down as THE history of the heist.

[KoKo]

63. Exactly ...he is now finding that walking through the Filth/Sludge is getting so dirty

as he goes on...but he Keeps Reporting...and that's a GOOD THING!

Somebody has to wade through that filth and NYT's and WaPo and whats left on the Cables ...ain't gonna wade through that filth and get their skirts or pants legs dirty! They'd rather Rake in the Dough from Koch Brothers and Lobbyists ..so they can hit the DC/NYC Bars at night with the Babes and the Coke and the Perks...and consider themselves.."TRUTH TELLERS." :rofl:

[2banon]

57. Always Recommend Matt Taibbi & Jeremy Scahill Reading.. n/t

:thumbsup: :thumbsup: :thumbsup: :thumbsup: :thumbsup: :thumbsup: :thumbsup: :thumbsup: :thumbsup: :thumbsup: :thumbsup:

[Badsam]

58. Somebody please send me a memo

when the New American Revolution starts. Im all in!!!

[Glimmer of Hope]

60. Damn! Does Obama know about this? AG Spitzer would have been all over this BS.

Too bad those days are over.

[jillan]

61. I am so sick of this shit - how many social programs were cut because of lack of funds?

Enough!

[KoKo]

62. Oh S**T! When will ANYONE be HELD ACCOUNTABLE for Wall Street CRIMES?

Eric Holder..."Please Pick Up the Courtesy Phone in Booth #2 in the Lounge!

:wtf: is Going on Here? :shrug:

[TransitJohn]

69. Obviously those women

need some tax cuts to create jobs.



:sarcasm:

[Iwillnevergiveup]

70. This is downright terrifying

Matt Taibbi doing all this work and nothing comes of it?

K&R

And

:wtf:

[Enthusiast]

71. Where is Obama's DOJ?

And we shouldn't say bad stuff about Obama, whaaaaa.

[naaman fletcher]

75. in the banks pockets. nt

[Hubert Flottz]

77. The difference between this depression and the one in the 30s

Back then it was the gangsters robbing people. This time it's the bankers doing the stealing.

[hifiguy]

82. The people responsible for this should be taken dancing

at the end of ropes. Every last one of them.

[howaboutme]

86. Just curious why this was moved from Latest News to Editorials?

Isn't the theft of billions from American taxpayers by the financial elite and thieves of Wall Street news anymore? It is rarely covered on the media. Is there a concerted effort to keep all but the most vigilant news junkies uninformed on this travesty.

I was just watching Matt Taibbi and Christine Romans on CNN discussing the "Wives of Wall Street" and how it was that they got all this money from taxpayers when they were part of the fraud that originated the problem. A search for DU coverage turned up this thread that was originally on Latest Breaking News.

[midnight]

88. To whine ,would be such a liberal vice, to allow a crime to occur, and do nothing is a comprimse-

I'm guessing?

[KoKo]

89. K&R! An excellent article!

[OwnedByFerrets]

90. Wouldnt it be great if the President did a community meeting and

someone asked him about this "WITH" details. I would love to see/hear his answer.