Footnotes
Notes
1 see Gold Warriors: America’s Secret Recovery of Yamashita’s Gold, Sterling and Peggy Seagrave, Verso, 2005, p.196
2 see Gold Warriors: America’s Secret Recovery of Yamashita’s Gold, Sterling and Peggy Seagrave, Verso, 2005, p. 358. Most cursory reviews of this amount forget that 280,000 tonnes is less than 140
years of annual production. When one considers that treasuries and personal fortunes of South East Asia and China were plundered over 50 years by the Japanese army, this number should not be inconceivable.
3 [V.K. Durham presents substantial photographic evidence of these crimes on her website, and it can also be located at Tom Flocco’s website as well. see ](<http://www.theantechamber.net/%3B>)[http://www.theantechamber.net/](<http://www.theantechamber.net/%3B>); also conduct a
search engine query on “VK Durham”
4 Brigadier General Erle Cocke’s deposition in US District Court, Southern District of New York, April 13, 2000, April 13, 2000, (as provided in photostat version in Guyatt’s Project Hammer Files)
5 see Collateral Damage: U.S. Covert Operations and the Terrorist Attacks on September 11, 2001, E.P. Heidner, 2008.
6 The S&L; Crisis: The Solution is Worse than the Crime, by christic , cdp:christic.news, February 25,
7 [Subprime: Let the finger-pointing begin!, Peter Eavis, Fortune , ](<http://money.cnn.com/galleries/2007/fortune/0709/gallery.subprime_blame.fortune/index.html>)<http://money.cnn.com/galleries/2007/fortune/0709/gallery.subprime_blame.fortune/index.html>
8 Was Spitzer scandal and bailout of rich Wall Street bank linked? Greg Palast, Reporting for Air America Radio’s Clout, March 14th, 2008
9 Is the Fed Culpable in the Subprime Meltdown?, March 24, 2007,
<http://www.nakedcapitalism.com/2007/03/is-fed-culpable-in-subprime-meltdown.htm>
10 Remarks by Chairman Alan Greenspan, At the Federal Reserve System’s Fourth Annual Community Affairs Research Conference, Washington, D.C., April 8, 2005
11 [Is the Fed Culpable in the Subprime Meltdown?, March 24, 2007, ](<http://www.nakedcapitalism.com/2007/03/is-fed-culpable-in-subprime-meltdown.html>)<http://www.nakedcapitalism.com/2007/03/is-fed-culpable-in-subprime-meltdown.html>
12 Testimony of Lynn E Turner, United States Congress House of Representatives Committee on
Oversight and Government Reform, 2154 Rayburn House Office Building, October 7, 2008
13 “Subprime giant Ameriquest spent more than $20 million on political donations from 2002 to 2006 to successfully lobby against lending restrictions meant to protect borrowers, reports the Wall Street
[Journal. Though the company spent millions at the national level, its focus was local, where regulators were cracking down on predatory lending. Countrywide, Citigroup, and Wells Fargo also joined the quest for softer rules.” See Subprime Lender Lobbying Foiled Safeguards, Dec 31, 2007, ](<http://www.newser.com/story/15293/subprime-lender-lobbying-foiled-safeguards.html>)<http://www.newser.com/story/15293/subprime-lender-lobbying-foiled-safeguards.html>
14 “Two U.S. senators, two former Cabinet members, and a former ambassador to the United Nations received loans from Countrywide Financial through a little-known program that waived points, lender
[fees, and company borrowing rules for prominent people.” From Countrywide's Many 'Friends', Daniel Golden, June 12, 2008, ](<http://www.portfolio.com/news-markets/top->)http://www.portfolio.com/news-markets/top- 5/2008/06/12/Countrywide-Loan-Scandal
15 This would have allowed the Goldman Sachs team in Treasury to exploit these institutions for their own ends.
16 see Infectious Greed: How Deceit and Risk Corrupted the Financial Markets, Frank Partnoy, Times Books, April 14, 2003.
17 “The riskier mortgages generally command higher broker commissions. …one subprime mortgage,
[which typically costs 2 to 3 percentage points more than a standard loan because it goes to borrowers with bad or limited credit, pays him the same as five mortgages for borrowers with good credit.” Subprime `Liar Loans' Fuel Housing Bust With $1 Billion Fraud , Bob Ivry, April 25, 2007, Bloomberg, https://](<http://www.nachi.org/forum/f13/subprime-liar-loans-fuel-housing-bust-1-billion-fraud->)www.nachi.org/forum/f13/subprime-liar-loans-fuel-housing-bust-1-billion-fraud- 16287/
18 “Speaking in 2001 as a correspondent for ABC’s "Good Morning America," Stephanopoulos also
revealed that at the time of the Long Term Capital Management crisis in 1998, the Federal Reserve directed large banks to prop up the currency markets. This was apparently done to diffuse a global
currency crisis.” See Move Over Adam Smith: The Visible Hand of Uncle Sam, by John Embry and Andrew Hepburn, August 2005.
19 Rubin Defends Asian Bailout and Asks Funds for I.M.F., Richard W. Stevenson, New York Times, January 22, 1998
20 “Then came a $30 billion dollar IMF bailout of Brazil. Now, the World Bank and Inter-American Development Bank are offering Brazil another $7 billion. "American banks have about $25.6 billion in
outstanding loans to Brazilian borrowers. Citigroup, the biggest lender to Brazil, has $9.7 billion in Brazilian loans." That's right. Forty percent of the U.S. bank exposure in Brazil is the fault of America's biggest and dumbest bank. And who is the resident financial wizard at Citigroup? "Robert
[H. Rubin” ](<http://www.theamericancause.org/patbailingout.htm>)<http://www.theamericancause.org/patbailingout.htm>
21 “We believe the stability of domestic stock markets is considered by the U.S. government to be a matter of national security. Interventions are likely justified on the grounds that the health of the U.S.
financial markets is integral to American preeminence and world stability. This conclusion flows from an extraordinary financial war game exercise conducted by the Council on Foreign Relations in 2000 and attended by key policy-makers. In this vein, an article in Euromoney magazine disclosed that simulation participants displayed a willingness to consider government intervention in the stock market in the event of a financial crisis.” Move Over Adam Smith: The Visible Hand of Uncle Sam, by John Embry and Andrew Hepburn, August 2005.
22 [Swapping Lies: Fed and Treasury Officials Hanging Themselves,'' GATA's Howe Says". Business Wire. . 04 Oct. 2008. ](<http://findarticles.com/p/articles/mi_m0EIN/is_2001_August_1/ai_76894527>)<http://findarticles.com/p/articles/mi_m0EIN/is_2001_August_1/ai_76894527>
23 UNITED STATES DISTRICT COURT, District of Massachusetts, Civil Action No.00-CV-12485-
RCL, Reginald H. Howe, Plaintiff, v. Bank for International Settlements,, Alan Greenspan, William J. McDonough, J.P. Morgan & Co. Inc., Chase Manhattan Corp., Citigroup, Inc., Goldman Sachs Group, Inc., Deutsche Bank AG and Lawrence H. Summers, Secretary of the Treasury, Defendants.
24 UNITED STATES DISTRICT COURT, District of Massachusetts, Civil Action No.00-CV-12485- RCL, Reginald H. Howe, Plaintiff, v. Bank for International Settlements,, Alan Greenspan, William J.
McDonough, J.P. Morgan & Co. Inc., Chase Manhattan Corp., Citigroup, Inc., Goldman Sachs Group, Inc., Deutsche Bank AG and Lawrence H. Summers, Secretary of the Treasury, Defendants.
25
26
27 “Barrick also announced plans to reduce its forward sales position to a target of 12 million ounces by the end of 2003, primarily through scheduled deliveries from production.” FORM 6-K, Barrick Gold Corporation, September 23, 2002.
28 [LTCM & BOE Fiascoes Revisited, Bill Murphy, Chairman Gold Anti-Trust Action Committee, Le Patron, ](<http://www.LeMetropoleCafe.com/>)www.LeMetropoleCafe.com, September 7, 1999
29 While the known evidence points to use of these funds for covert operations, it could very well be that since 1994, Clinton tried to use these funds – covertly – for economic policy. The Mexican bailout
serves as an example. However, the funds are still illegal, and thus their use remains covert.
30 Banks are not allowed to hold these financial products as deposits against which loans can be created, (although their affiliates can hold structured paper as an investment). Some banks found themselves
in financial difficulty because of bad mortgages and, and holding mortgage backed securities, and because they made loans to companies that used high risk paper for collateral, but not because of any holding of sophisticated paper. Bank affiliates and their holding companies would find themselves troubled, and imply to the public that the banks were troubled a well.
31 Brigadier General Erle Cocke’s deposition in US District Court, Southern District of New York, April 13, 2000, April 13, 2000, (as provided in photostat version in Guyatt’s Project Hammer Files), is a
critical starting point for understanding the fund. In page 10 of the deposition, Cocke testifies he has reported to every President since Truman.
32 Infectious Greed: How Deceit and Risk Corrupted the Financial Markets, by Frank Partnoy, MacMillan, 2003, p207.
33 Infectious Greed: How Deceit and Risk Corrupted the Financial Markets, by Frank Partnoy,
MacMillan, 2004, p161.
34 International Capital Flows and U.S. Interest Rates, by Francis E. Warnock and Veronica Cacdac Warnock, Board of Governors of the Federal Reserve System, International Finance Discussion
Papers, Number 840, September 2005.
35 International Capital Flows and U.S. Interest Rates, by Francis E. Warnock and Veronica Cacdac Warnock, Board of Governors of the Federal Reserve System, International Finance Discussion
Papers, Number 840, September 2005. Page 20.
36 Howes lawsuit references gold sales Jul-94; Jan-96; Jul-96; Jan-99; Sep-99; Jan-00. These periods are marked by lines on the following chart, showing rate increases following gold sales.
37 see Gold Warriors: America’s Secret Recovery of Yamashita’s Gold, Sterling and Peggy Seagrave, Verso, 2005,
38 Collateral Damage: U.S. Covert Operations and the Terrorist Attacks on September 11, 2001, E.P. Heidner, 2008
39 This report concludes that Clinton was advised of the 1991 actions of Bush to fund activities in the
[cold war with this covert fund, and got his first taste of the power of the ESF (Exchange Stabilization Fund – which has sourced covert ops for decades because it’ books fall outside of Congressional oversight) during his use of those funds to “bail out” the Mexican economy. There are rumors that Hillary Clinton withdrew $250million from the fund, a withdrawal linked to the reported murder of Vince Foster. See: Following the money backwards leads to President Reagan, Russian rubles and Ambassador Leo Wanta, by Don Nicoloff, Idaho Observer, January 2007, ](<http://www.proliberty.com/observer/20070119.htm>)[http://www.proliberty.com/observer/20070119.htm.](<http://www.proliberty.com/observer/20070119.htm>)
40 “[George Stephanopoulos] Well, what I just want to talk about for a few minutes is the various efforts that are going on in public and behind the scenes by the Fed and other government officials to guard
against a free-fall in the markets. You reported just a while ago that the Fed has lowered the overnight interest rates, will put about $80 billion into the market. In addition, the SEC, the Securities and Exchange Commission, has relaxed the rules for companies on whether or not they can buy back their stock in case they start to fall.” see Transcript of ABC News “Good Morning America.” “Newscast: SEC relaxing rules to help stock exchanges; Banks agreeing to help if market gets in trouble.” September 17, 2001.
41 Collateral Damage: U.S. Covert Operations and the Terrorist Attacks on September 11, 2001, E.P. Heidner,
42 [Information taken from HUD and the Mortgage Bankers Association, attributed to ](<http://www.brokerfundingsource.com/pdf/SFSG%20Investor%20Report.pdf>)http://www.brokerfundingsource.com/pdf/SFSG%20Investor%20Report.pdf is shown in the following
chart.
43 [“Loans that require little or no documentation of income soared to $276 billion, or 46 percent, of all subprime mortgages last year from $30 billion in 2001, according to estimates from New York-based analysts at Credit Suisse Group.” [Subprime `Liar Loans' Fuel Housing Bust With $1 Billion Fraud , Bob Ivry, April 25, 2007, Bloomberg, https://](<http://www.nachi.org/forum/f13/subprime-liar-loans-fuel->)www.nachi.org/forum/f13/subprime-liar-loans-fuel- housing-bust-1-billion-fraud-16287/]
44 “Suspicious activity reports pertaining to mortgage fraud increased 14-fold from 1997 to 2005, according to the organization.” Ibid.,
45 “Mortgage companies, with Alan Greenspan's endorsement, began to offer more Adjustable Rate
[Mortgages (ARMs), loans that would reset at much higher rates in future years.” U.S. Housing Market Boom and Crash Engineered by the Government, Richard_C_Cook, October 23, 2008,](<http://www.marketoracle.co.uk/Article6936.html>)<http://www.marketoracle.co.uk/Article6936.html>
46 “The figure shows that foreclosures on prime loans declined slightly from 1998 through the third
quarter of 2004. In contrast, both measures of subprime loan performance showed substantial increases. …after the 2001 recession it took nearly two years for foreclosure rates to start declining in the subprime market.” See Evolution of the subprime mortgage market, Chomsisengphet, Souphala, Review - Federal Reserve Bank of St. Louis, January 1, 2006
47 “As the subprime market has evolved over the past decade, it has experienced two distinct periods. The first period, from the mid-1990s through 1998-99, is characterized by rapid growth, with much of the
growth in the most-risky segments of the market (B and lower grades). In the second period, 2000 through 2004, volume again grew rapidly as the market became increasingly dominated by the least- risky loan classification (A- grade loans)” See Evolution of the subprime mortgage market, Chomsisengphet, Souphala, Review - Federal Reserve Bank of St. Louis, January 1, 2006
48 [Former Fed analyst questions M1 currency component spike prior to 9/11, Ed Haas, March 22, 2007, ](<http://www.muckrakerreport.com/id427.html>)<http://www.muckrakerreport.com/id427.html>
49 “October 31, 2001, the undersecretary of the Treasury Peter Fisher announced a scheme that would involve suspending the issuance of the 30-year government long bond.” Ed Bugos, The GoldenBar
Report, March 18, 2002, www.goldenbar.com ; “Treasury officials said that their decision to halt the issuance of 30-year bonds was intended to save the government money. But traders scoffed at that explanation, viewing the move as an almost desperate effort to push down long-term interest rates, which had remained stubbornly high, and prod both corporate and individual borrowers to spend again.” See Gretchen Morgenson, November 1, 2001, The New York Times
50 Many investors have bought Fannie Mae Benchmark NotesSM as replacements of core U.S. Treasury holdings, achieving a significant yield pickup with a minimal sacrifice of credit quality. From: Fannie
Mae Funding Note, May 1998, Vol.3, Issue 5.
51 “…the yield on 30-year Treasury bonds was lower than on its 10-year notes. (The yield is a security's interest payment divided by its market price.) Thirties yielding less than 10s? Not supposed to happen.
Longer-term securities generally yield more than shorter ones because the more years a bond is outstanding, the more damage inflation does to the value of the security holders' original investment. In fact, the reason offered by the Treasury for killing the 30-year bond was that the interest on 10-year notes was significantly lower.” From ‘A (Very) Long Bond,’ Allan Sloan, Newsweek, March 20, 2006.
52 “Plenty of bond mavens disagree with the Treasury's approach. "This is a very good time for the government to be issuing 50-year bonds," said Joseph Rosenberg, one of the nation's premier bond
[investors. Rosenberg, chief investment strategist for Loews Corp., is a former member of the Treasury Borrowing Advisory Committee. He said there's no evidence that the Treasury's bond-selling approach has saved any money.” From: Treasury Shouldn't Duck Longer Bonds, Allan Sloan, March 14, 2006, ](<http://www.washingtonpost.com/wp-dyn/content/article/2006/03/13/AR2006031301772_pf.html>)<http://www.washingtonpost.com/wp-dyn/content/article/2006/03/13/AR2006031301772_pf.html>
53 Collateral Damage: U.S. Covert Operations and the Terrorist Attacks on September 11, 2001, EP Heidner, June 28, 2008, pp. 20-21.
54 Federal Register, Vol. 68, No. 150, August 5, 2003, p46119, DEPARTMENT OF THE TREASURY, Office of the Comptroller of the Currency
55 [BCCI AND Kissinger Associates, ](<http://www.fas.org/irp/congress/1992_rpt/bcci/20kiss.htm>)<http://www.fas.org/irp/congress/1992_rpt/bcci/20kiss.htm>
56 Peru's Ex-Leader Enmeshed In Scandal Over Failed Bank, Nathaniel C. Nash, New York Times, July 25, 1991.
57 “In a July 21, 1999, letter from Behan to Rich and Fink, Quinn and Arnold & Porter are formally
retained. The firm's fees are big, and it reserves the right to work against Rich in other matters. PRIVILEGED & CONFIDENTIAL
July 21, 1999
...Dear Mr. Rich:
[We are very pleased that Marc Rich has engaged Arnold & Porter (the "Firm") to provide legal services and in connection with Mr. Rich's potential negotiations and/or communications with the Department of Justice...” ](<http://archive.salon.com/politics/feature/2001/02/13/email/index1.html>)<http://archive.salon.com/politics/feature/2001/02/13/email/index1.html>
58 “The Government Contracts group is headed by Mr. Smith, who served as General Counsel of the Senate Armed Services Committee and as the General Counsel of the CIA.”
[http://www.arnoldporter.com/press_releases.cfm?u=ArnoldPorterLLPExpandsItsGovernmentContracts Group&action;=view&id;=8; “In addition to serving as CIA chief of staff, (Ron) Lee is a former associate deputy U.S. attorney general and a former general counsel to the National Security Agency. He is currently a partner at the law firm Arnold & Porter LLP in Washington, D.C., which he joined in 1987.” Former CIA administrator talks technology, Paolo Esquivel, September 19th, 2008, ](<http://www.dailyprincetonian.com/2008/09/19/21452/>)<http://www.dailyprincetonian.com/2008/09/19/21452/>
59 “Approaching the headquarters of In-Q-Tel on 12th Street downtown, there's no sense that you're entering the shadowy netherworld of spies and soldiers. The building has a shiny, brand-new feel, and
[houses one of Washington's most prestigious law firms: Arnold & Porter. But one floor above the firm's law library is a paper sign taped to the wall leading visitors to In-Q-Tel, a new Washington venture capital fund. It's an office like any other, but with one difference: this fund is backed by the Central Intelligence Agency and financed by the United States Congress.” From Spy Tech Gilman Louie is Recruiting Local Companies to Build Technology with the Cloak-and-Dagger Set at the CIA, Eamon Javers, ](<http://www.bizforward.com/archives/2000-06/bestpractices/>)[http://www.bizforward.com/archives/2000-06/bestpractices/.](<http://www.bizforward.com/archives/2000-06/bestpractices/>)
60 [Predatory Lenders' Partner in Crime: How the Bush Administration Stopped the States From Stepping In to Help Consumers, Eliot Spitzer, February 14, 2008; Also: “State attorneys-general moved to investigate mortgage fraud but were blocked from doing so by orders of the Treasury Department's Comptroller of the Currency. There was no federal agency that was charged with regulating mortgage fraud.” U.S. Housing Market Boom and Crash Engineered by the Government, Richard_C_Cook, October 23, 2008, ](<http://www.marketoracle.co.uk/Article6936.html>)<http://www.marketoracle.co.uk/Article6936.html>
61 Predatory Scapegoating Diary of a Mad Law Professor, Patricia J. Williams, The Nation, November 3, 2008.
62 Is the Fed Culpable in the Subprime Meltdown?, March 24, 2007,
<http://www.nakedcapitalism.com/2007/03/is-fed-culpable-in-subprime-meltdown.html>
63 [Remarks by FDIC Vice Chairman Reich - June 3, 2003 , ](<http://www.egrpra.gov/Speech-Reich->)http://www.egrpra.gov/Speech-Reich- 20030603.html
64 FEDERAL DEPOSIT INSURANCE; CORPORATION; Notice of Agency Meeting; Pursuant to the provisions of the ‘‘Government in the Sunshine Act’’ (5U.S.C. 552b), notice is hereby given that at
9:35 a.m. on Tuesday, June 3, 2003,the Board of Directors of the Federal Deposit Insurance Corporation met in closed session to consider matters relating to the Corporation’s corporate and enforcement activities. In calling the meeting, the Board determined, on motion of Director James E. Gilleran (Director, Office of Thrift Supervision), seconded by Vice Chairman John M. Reich, concurred in by John M. Hawke, Jr. (Comptroller of the Currency), and Chairman Donald E. Powell, that Corporation business required its consideration of the matters on less than seven days’ notice to the public; that no notice earlier than May 29, 2003, of the meeting was practicable; that the public interest did not require consideration of the matters in a meeting open to public observation; and that the matters could be considered in a closed …” 33950 Federal Register / Vol. 68, No. 109 / Friday, June 6, 2003 / Notices
65 “Dugan served at the Department of the Treasury from 1989 to 1993 and was appointed Assistant Secretary for Domestic Finance in 1992. While at Treasury, Mr. Dugan had extensive responsibility
[for policy initiatives involving banks and financial institutions, including the savings and loan cleanup, Glass-Seagall and banking reform, and regulation of government-sponsored enterprises. In 1991, he oversaw a comprehensive study of the banking industry that formed the basis for the financial modernization legislation proposed by the administration of the first President Bush” ](<http://www.occ.treas.gov/dugan.htm>)<http://www.occ.treas.gov/dugan.htm>
66 Looking for Lessons From Agency That Mopped Up 1980s Thrift Mess, John M. Broder, New York
Times, September 19, 2008. “Mr. Ludwig, who served on the board of the Federal Deposit Insurance Corporation, …oversaw the operation of the R.T.C….”
67 See Sherman Skolnick, Conspiracy Nation, Vol. 4 Num. 73, regarding the CIA use of Clyde Savings
[& Loan, ](<http://www.theconspiracy.us/9504/0026.html>)http://www.theconspiracy.us/9504/0026.html. See also “On February 4, 1990, Brewton wrote "During an eight-month investigation into the role of fraud in the nation's savings and loan crisis, The Post has found evidence suggesting a possible link between the Central Intelligence Agency and organized crime in the failure of at least 22 thrifts, including 16 in Texas." From THE CIA ROLE IN THE SAVINGS AND LOAN CRISIS, Feb 25, 1991 by christic.
68 “Ludwig's move to BT,” Article from: US Banker, May 1, 1998,Gale Group, Farmington Hills,
Michigan. “Former Comptroller of the Currency Eugene A. Ludwig's decision to join Bankers Trust New York Corp. was surprising in several ways, including the timing-it was announced just two weeks after his five-year term officially ended in early April. Some might see that haste as a bit unseemly, and yet one more example of the revolving door between regulators and the regulated, though Ludwig told The Wall Street Journal that he saw "no reason to be defensive about this."
69 Collateral Damage: U.S. Covert Operations and the Terrorist Attacks on September 11, 2001, EP Heidner, June 2008, p17.
70 The Department of Justice's Handling of the RTC Criminal Referrals and the Contacts Between the
White House and the Department of the Treasury Chapter 1: DOJ Handling of the RTC Referrals, p 156.
71 “Meanwhile, in the world of investment securities, the Securities and Exchange Commission greatly
reduced the amount of their own capital investors were required to bring to the table, resulting in a huge increase in bank leveraging of speculative trading.” U.S. Housing Market Boom and Crash
[Engineered by the Government, Richard_C_Cook, October 23, 2008, ](<http://www.marketoracle.co.uk/Article6936.html>)<http://www.marketoracle.co.uk/Article6936.html>
“In 2004, the SEC reduced the capital requirements for the largest Wall Street investment banks.” From Testimony of Lynn E Turner, United States Congress House of Representatives Committee on Oversight and Government Reform, 2154 Rayburn House Office Building, October 7, 2008.
72 “In another regulatory failure, the Securities and Exchange Commission in 2004 allowed exactly five firms – Lehman Brothers, Bear Stearns, Merrill Lynch, Goldman Sachs and Morgan Stanley – to take
[on excessive debt relative to their total assets. Thee Wall Street Journal reports that the ratio of debt to assets for these companies was an astounding 30-40:1. Not surprisingly, two out of the five – Lehman and Bear – recently failed, and Bank of America recently acquired a faltering Merrill Lynch.” Not a Market Failure, Zach Dexter, Carolina Review, October 2008, ](<http://www.unc.edu/cr/archive/2008_10.pdf>)<http://www.unc.edu/cr/archive/2008_10.pdf>
[see also: “Meanwhile, in the world of investment securities, the Securities and Exchange Commission greatly reduced the amount of their own capital investors were required to bring to the table, resulting in a huge increase in bank leveraging of speculative trading.” from U.S. Housing Market Boom and Crash Engineered by the Government, Richard_C_Cook, October 23, 2008, ](<http://www.marketoracle.co.uk/Article6936.html>)<http://www.marketoracle.co.uk/Article6936.html>
73 “the FRC participants as a group are in a better position than anyone else to know whether the
historical failure and loss rates may be inappropriate for the coming year. However, as described above, the robustness derived from this discretion comes at the expense of accuracy, since subjective deviations from historical failure and loss rates have usually enlarged CLR errors.” From Strengthening Financial Risk Management at the FDIC FEDERAL INSURANCE DEPOSIT CORPORATION, Final report, July 16, 2003, p.15
“the FDIC published a study suggesting that over time and on average, risk-based capital requirements under the new Accord would probably decline substantially relative to the 1988 Accord. In 2004, the FDIC will seek to ensure that any reductions in capital requirements reflect bank risk profiles rather than specific statistical modeling assumptions.” From FDIC 2003 Annual Report
74 “Yet time and time again AIG has failed to provide the requisite transparency to its investors.” From Testimony of Lynn E Turner, United States Congress House of Representatives Committee on
Oversight and Government Reform, 2154 Rayburn House Office Building, October 7, 2008; “The restatement was in the wake of settlements with the SEC regarding Brightpoint, inc. and PNC Financial Services (“PNC”) and investigations by the SEC, Department of Justice (“DOJ”), and New York Attorney General. The SEC alleged that AIG had failed to produce large quantities of requested documents and failed to provide key documents when requested. AIG also was charged by the SEC and DOJ for its part in assisting PNC allegedly improper shift of $762 million of under-performing loans and volatile venture capital investments to three off-balance sheet structures that had been arranged with the help of AIG Financial Products Group (“AIGFP”)…. AIG’s 2005 Form 10-K was troubling for investors, as it disclosed “In many cases these transactions or entries appear to have had the purpose of achieving an accounting result that would enhance measures believed to be important to the financial community and may have involved documentation that did not accurately reflect the true nature of the arrangements.” This is hardly a situation or disclosure that instills confidence or trust.
Subsequent to such serious shortcomings in financial reporting, one would expect the company to “clean up” its act and become more transparent. But in 2006 and 2007, the company continued to report “out of period adjustments” – another way of saying it continued to have errors in its financial statements. It also reported a material weakness in its internal controls in 2006. Then in its 2007 annual report on Form 10-K, AIG reported that internal “…controls over the AIGFP super senior credit default swap portfolio valuation process and oversight thereof were not effective. AIG had dedicated insufficient resources to design and carry out effective controls to prevent or detect errors and to determine appropriate disclosures on a timely basis with respect to the processes and models introduced in the fourth quarter of 2007.” From Testimony of Lynn E Turner, United States Congress House of Representatives Committee on Oversight and Government Reform, 2154 Rayburn House Office Building, October 7, 2008.
75 “The SEC's chief administrative law judge, Brenda Murray, also declined to order the disciplining of the agency's enforcement director and another official in the handling of a separate insider-trading
probe touching on a big hedge fund and a prominent Wall Street executive. In both cases, Murray
turned aside recent recommendations by SEC Inspector General H. David Kotz for action against the employees based on his findings in the Bear Stearns and Pequot investigation cases. Murray's decisions are final. Kotz's report last month found that David Nelson, the head of the SEC's Miami office, failed to properly enforce securities laws in the investigation of Bear Stearns' pricing of about $63 million in collateralized debt obligations it sold, and that he should not have closed the inquiry in the summer of 2007 without enforcement action.” Judge won't take action against SEC officials, Marcy Gordon, November 8, 2007, Associated Press
76 “An unpublished SEC staff report stemming from a recent examination accuses Big Board regulators of inadequately monitoring their member specialist firms and punishing significant trading-rule
violations with a slap on the wrist.´ How Grasso's Rule Kept NYSE On Top but Hid Deep Troubles , GREG IP, KATE KELLY, SUSANNE CRAIG and IANTHE JEANNE DUGAN, Wall Street Journal
December 30, 2003
77 Cooking the Insurance Books: A Decade of Lax Regulation Lays Groundwork for Scandal, Lucy Komisar, CorpWatch, Nov 17, 2004
78 “Mr Lynn Turner, Chief Accountant of the Securities & Exchange Commission (SEC) testified that the
SEC Office of Risk Management which had oversight responsibility for the Credit Default Swap market, an exotic market worth nominally some $62 trillions, was cut in Administration ‘budget cuts’ from a staff of one hundred down to one person.” Behind the Panic: Financial Warfare and the Future of Global Bank Power , F. William Engdahl, Global Research, October 9, 2008
79 “For seven years, US President George W. Bush refused to allow the IMF to conduct its assessment. Even now, he has only given the IMF board his consent under one important condition. The review can
[begin in Bush's last year in office, but it may not be completed until he has left the White House.” Fed facing IMF investigation, Gabor Steingart, 06/26/2008, ](<http://goldismoney.info/forums/showthread.php?t=277983>)<http://goldismoney.info/forums/showthread.php?t=277983>
80 “U.S. regulators responsible for supervising American International Group now acknowledge that they failed to grasp the impact of provisions in the complex derivative contracts that pushed the world's
largest insurance company to the brink of collapse…. Because AIG bought a small savings and loan nine years ago, the Office of Thrift Supervision (OTS) became responsible for supervising AIG's parent company.” Was AIG Watchdog Not Up To The Job? Jeff Gerth, MSN Money. November 10, 2008
81 “Freddie Mac secretly paid a Republican consulting firm $2 million to kill legislation that would have regulated and trimmed the mortgage finance giant and its sister company, Fannie Mae, three years
[before the government took control to prevent their collapse…. DCI was undermining support for the bill in a campaign targeting 17 Republican senators in 13 states, according to documents obtained by The Associated Press…. Freddie Mac executive Hollis McLoughlin oversaw DCI's drive, according to the three people.” Mortgage firm arranged stealth campaign, Pete Yost, Associated Press, Oct 19, 2008“. “(Hollis)McLoughlin is a member of Freddie Mac's leadership team and reports directly to CEO David M. Moffett. McLoughlin served from 1989 through 1992 as assistant secretary of the Treasury under President George Bush, where he was responsible for the coordination of all policy and management of several key internal functions. He served as chief of staff to Sen. Nicholas Brady, R- N.J., in 1982 ….”](<http://www.freddiemac.com/bios/exec/mcloughlin.html>)<http://www.freddiemac.com/bios/exec/mcloughlin.html>
82 Much is made of the ‘revolving door’ at Fannie and Freddie, and columnists often note the political patronage linked to hiring at Fannie and Freddie. If one scrutinizes these appointments, one finds a
very heavy influence of intelligence and foreign policy backgrounds, and very little ‘patronage’ for other backgrounds such a Health, Housing, Transportation, Justice and other government officials. It would be inappropriate to write these appointments off as pure patronage, as there is a deeper pattern in their backgrounds.
83 There is plenty of ad hoc information and testimony on the internet to suggest that the Oklahoma City Bombing was a cover-up operation, not unlike the destruction of the World Trade Center. This report
does not seek to demonstrate the connection, and encourages readers to explore this matter on their own. “About three weeks after the bombing I received a telephone call at the Tulsa Police Department from a man who stated that he would not give me his name, but that he worked for a federal investigative agency and was based in Little Rock. He said that the key to the bombing was the records that had been taken out of the building on Day One by the mysterious team who removed them from the basement. He said that they were the investigative records from his agency (who he would not
identify) during the Iran/Contra affair on the drug connections revolving around Rich Mountain Aviation at the Mena Airport, and of the involvement of the Clintons and others in the affair, which included the lack of investigation from the Arkansas law enforcement agencies. He stated that the investigatory records were removed from Little Rock and moved to Oklahoma City (Murrah Building) for safe keeping while Clinton was president (Obviously there was fear they would disappear or be destroyed). THE BOMBING OF THE ALFRED P. MURRAH FEDERAL BUILDING, Oklahoma
City, April 19th, 1995,By Craig Roberts, Tulsa Police Department (Ret.),September 4th, 1996
84 Collateral Damage: U.S. Covert Operations and the Terrorist Attacks on September 11, 2001, EP Heidner, pp 24-26.
85 “Tom Donilon is a partner at the law firm of O’Melveny & Myers and serves on the firm’s global governing committee. Tom served as Assistant Secretary of State for Public Affairs and Chief of Staff
at the U.S. Department of State during the Clinton Administration. Since leaving the Department he _has remained deeply involved in the national security arena. _[He is a member of the Council on Foreign Relations, the Aspen Strategy Group, the National Security Advisory Group to the Congressional Leadership, the Brookings Institution Board of Trustees, the Miller Center of Public Affairs Governing Council, and the Trilateral Commission.” ](<http://change.gov/learn/national_security_team_leads>)<http://change.gov/learn/national_security_team_leads>
86 “Jim Johnson: A former aid to Walter Mondale, a former executive at Goldman Sachs and Lehman Brothers and who was later forced from his position as Fannie Mae CEO, was hired as a Senior Obama
[Finance Advisor. Johnson is so senior that he was selected to run Obama’s Vice Presidential Search Committee, the Committee that selected Joe Biden.”](<http://www.associatedcontent.com/article/781141/barack_obama_taps_former_fannie>)<http://www.associatedcontent.com/article/781141/barack_obama_taps_former_fannie>
87 “Yet time and time again AIG has failed to provide the requisite transparency to its investors….AIG’s 2005 Form 10-K was troubling for investors, as it disclosed “In many cases these transactions or
entries appear to have had the purpose of achieving an accounting result that would enhance measures believed to be important to the financial community and may have involved documentation that did not accurately reflect the true nature of the arrangements.” This is hardly a situation or disclosure that instills confidence or trust. Subsequent to such serious shortcomings in financial reporting, one would expect the company to “clean up” its act and become more transparent. But in 2006 and 2007, the company continued to report “out of period adjustments” – another way of saying it continued to have errors in its financial statements. It also reported a material weakness in its internal controls in 2006. Then in its 2007 annual report on Form 10-K, AIG reported that internal “…controls over the AIGFP super senior credit default swap portfolio valuation process and oversight thereof were not effective.” From Testimony of Lynn E Turner, United States Congress House of Representatives Committee on Oversight and Government Reform, 2154 Rayburn House Office Building, October 7, 2008.
88 AIG has been, since WWII, a major CIA intelligence operation. History records that the OSS learned
that in the 1940’s that the Nazis owned 45% of the world’s insurance companies, and used the background files from these companies to plan their espionage and bombing raids. With this lesson, when William ‘Wild Bill’ Dovovan created the CIA, part of his legacy was an extensive partnership with AIG. [see "The Secret (Insurance) Agent Men," Mark Fritz. The Los Angeles Times 2000 September 22, 200] Frank G Wisner was head of Office of Strategic Services operations in southeastern Europe at the end of World War II, and the head of the Directorate of Plans of the Central Intelligence Agency during the 1950s. Wisner later became US Ambassador to a number of countries, including the Philippines from 1991-1992, and later Vice Chairman of American International Group. The prior Chairman of AIG was Maurice ‘Hank’ Greenberg. He is a past Chairman (1994-1995), Deputy Chairman (1992-1993) and Director of the Federal Reserve Bank of New York (1988-1995), and was offered the position of Director of the CIA by the Reagan administration. See Target: AIG Fraud probe of Maurice "Hank" Greenberg intensifies, Larry Chin, From the Wilderness, July 1, 2005.
89 Generally referred to as the ‘New World Order,’ this group represents the political core of the NWO. Other groups with high concentrations of NWO participants on their membership rolls include the
Bilderburg Group, Trilateral Commission, Council on Foreign Relations, Aspen Institute; but these latter serve as little more than social clubs.
90 “The value of a banks loan and investment portfolio changes quarterly based upon a variety of factors,
including credit risk and the maturity of the loans and deposits. These changes in value must be recognized quarterly per FASB 115 guidelines, guidelines put forth by George Bush Sr. to restore confidence during the S&L; crisis, and therein lies the crux for Citigroup. What they had done is an
[Enron like shell game by creating derivatives and pushing them off their balance sheet, similar to how Enron did the same thing with debt and related interest payments. Now Citigroup is trying to create a market for these derivatives via a special SIV fund when to any honest banker this is nothing but a joke.” See Citigroup Bankruptcy Implications: SEC, Fannie Mae, Freddie Mac, Etrade November 28, 2007, Bill Parish,](<http://billparish.wordpress.com/2007/11/28/citigroup-bankruptcy-implications->)http://billparish.wordpress.com/2007/11/28/citigroup-bankruptcy-implications- secfannie-mae-freddie-mac-etrade/
91 Explained in Collateral Damage: U.S. Covert Operations and the Terrorist Attacks on September 11, 2001, E.P. Heidner, 2008.
92 Household Bank is linked to the CIA via the ex-Nugan Hand Bank crowd, and then absorbed by the
British HSBC in 2003. HSBC is controlled by the Keswick family which was closely involved in the OSS covert activities in the Asian theatre during WWII and in the post-WWII era.
93 This operation received most of its funding from Greenwich Capital Markets, in turn an outlet for the
Royal Bank of Scotland, in turn a pass-through bank for Carlyle Investments. Carlyle had many primary Directors who engaged in covert gold dealings. It is noteworthy that the only affiliate to suffer was Carlyle Capital Corp. – the publicly held affiliate. The partners and private equity affiliates seemed to be held harmless. See Lou Gerstner-Led Carlyle Capital on Brink of Collapse, Michele Masterson, ChannelWeb, March 13, 2008.
94 “A retail operation acquired by CitiGroup in 2000. Citigroup also paid $240 million to settle predatory
[lending practices suit filed by the Federal Trade Commission against Associated First Capital Corp., a subsidiary. “Citigroup purchased Associated First Capital, what was known as the “icon of predatory lending” and then proceeded to slice and dice these portfolios of predatory loans into derivatives. Clearly, it just got too aggressive and fleeced many of these vulnerable consumers right into default on their mortgages. This is the same problem HSBC has, resulting from its purchase of another leading predatory lending firm, Household Finance.” See Citigroup Bankruptcy Implications: SEC, Fannie Mae, Freddie Mac, Etrade, November 28, 2007 by Bill Parish, ](<http://billparish.wordpress.com/2007/11/28/citigroup-bankruptcy-implications-secfannie-mae-freddie->)http://billparish.wordpress.com/2007/11/28/citigroup-bankruptcy-implications-secfannie-mae-freddie- mac-etrade/
95 Was Spitzer scandal and bailout of rich Wall Street bank linked? Greg Palast, Reporting for Air America Radio’s Clout, March 14th, 2008
96 Fortress Investment Group LLC was founded as a private equity firm in 1998 by Wesley R. Edens, a former partner at BlackRock Financial Management, Inc.; Robert Kauffman, a managing director of
UBS; and Randal A. Nardone, also a managing director of UBS. Fortress quickly expanded into hedge funds, real estate-related investments and debt securities, run by Michael Novogratz and Pete Briger, both former partners at Goldman Sachs. Fortress Investment Group, From Wikipedia, the free encyclopedia
97 “ Credit Suisse First Boston(which served as underwriter and sold and serviced the loans), Triad Guaranty Insurance Corporation (which issued the mortgage guaranty insurance policy), and the Bank
[of New York (which served as trustee for the bondholders)’´from ](<http://www.hugheshubbard.com/files/tbl_s20NewsPring%5CPDFUpload103%5C1726%5Cswerdloff>)http://www.hugheshubbard.com/files/tbl_s20NewsPring%5CPDFUpload103%5C1726%5Cswerdloff will_the_subprime_affect_may2007.pdf
98 UBS restricts its purchases of home mortgage loans, Jed Horowitz, Dow Jones Newswires, August 7, 2007
99 The Financial Tsunami: Sub-Prime Mortgage Debt is but the Tip of the Iceberg, F. William Engdahl,
Global Research, November 23, 2007; Sub-prime losses at Deutsche Bank - It plans to write off about
$3.1 billion in the third quarter, but it still expects to post a profit, Los Angeles Times, October 04, 2007
100 “Rubin was also the primary architect of the deregulation of financial services in 1998, of which
[Citigroup was the biggest beneficiary.” Citigroup Bankruptcy Implications: SEC, Fannie Mae, Freddie Mac, Etrade,. Bill Parish, November 28, 2007 ](<http://billparish.wordpress.com/2007/11/28/citigroup->)http://billparish.wordpress.com/2007/11/28/citigroup- bankruptcy-implications-secfannie-mae-freddie-mac-etrade/
101 [Stephen Friedman '59 named Bush's chief economic adviser, Linda Myers, ](<http://www.news.cornell.edu/Chronicle/03/1.16.03/Friedman.html>)<http://www.news.cornell.edu/Chronicle/03/1.16.03/Friedman.html>
102 George W. Bush is not listed as ‘involved.’ As President, he was clearly accountable, but the research suggests he did not have financial ability to understand the operation, much less manage it. Like David
Rubenstein, co-founder of the Carlyle Group, this report finds that he did not bring value to the
[operation. “We put him on the board and [he] spent three years. Came to all the meetings. Told a lot of jokes. Not that many clean ones. And after a while I kind of said to him, after about three years - you know, I'm not sure this is really for you. Maybe you should do something else. Because I don't think you're adding that much value to the board. You don't know that much about the company.” How Bush Got Bounced from Carlyle Board, Suzan Mazur, ](<http://www.prorev.com/bushcarlyle.htm>)<http://www.prorev.com/bushcarlyle.htm>
103 “Peter Fisher, former under secretary of the U.S. Treasury, was also named to BlackRock's management committee, the firm said. BlackRock, which has $294 billion in assets under management, is majority owned by The PNC Financial Services Group Inc., of Pittsburgh. “
[Former Treasury official joins BlackRock, Pittsburgh Business Times, January 7, 2004, ](<http://www.bizjournals.com/pittsburgh/stories/2004/01/05/daily23.html>)<http://www.bizjournals.com/pittsburgh/stories/2004/01/05/daily23.html>
104 The CIA and the Marshall Plan, Sallie Pisani, the University Press of Kansas, 1991, pp 72, 134-35, and 168. Roger Fisher testified before the The Pike Committee Investigations of the CIA’s covert
[activities: Looking for a Rogue Elephant, Gerald K. Haines, https://](<http://www.cia.gov/library/center-for->)www.cia.gov/library/center-for- the-study-of-intelligence/csi-publications/csi-studies/studies/winter98_99/art07.html
105 Drawing the Line: The American Decision to Divide Germany, 1944-1949, Carolyn Woods Eisenberg, Cambridge University Press, 1998, p 121.
106 see Gold Warriors: America’s Secret Recovery of Yamashita’s Gold, Sterling and Peggy Seagrave,
Verso, 2005, p96.
107 BCCI THE BIG PICTURE: A system out of control, not just one bank, George Winslow: “BCCI was quick to establish a relationship with many of the U.S. banks that had expanded overseas in the '70s. A
confidential internal BCCI study, obtained by "In These Times," illustrates just how many U.S. banks had close financial relationships with BCCI. The 1985 study notes that for all of 1984, BCCI transferred foreign currencies worth $37.5 billion through American banks. Most of these foreign currency transfers, $19 billion, involved five major American banks: Bank of America, Security Pacific, American Express Bank Ltd., the Bank of New York and First Chicago.”
108 “Mr. Moffett, age 56, was a Senior Advisor at The Carlyle Group since August 2007 until his resignation on September 7, 2008. From February 2001 until February 2007, Mr. Moffett was Vice
[Chairman and Chief Financial Officer of U.S. Bancorp. … On September 7, 2008, the Director of FHFA, acting as conservator for Freddie Mac, appointed David M. Moffett as Chief Executive Officer of Freddie Mac, effective immediately.”ht](<http://people.forbes.com/profile/david-m-moffett/14116>)[tp://people.forbes.com/profile/david-m-moffett/14116 “(David Moffett) joined Security Pacific National Bank in 1989 as a Senior Vice President responsible for the lead bank’s domestic and international treasury group.” ](<http://www.carlyle.com/Team/item9812.html>)<http://www.carlyle.com/Team/item9812.html>
109 “Freddie Mac secretly paid a Republican consulting firm $2 million to kill legislation that would have regulated and trimmed the mortgage finance giant and its sister company, Fannie Mae, three years
before the government took control to prevent their collapse…. DCI was undermining support for the bill in a campaign targeting 17 Republican senators in 13 states, according to documents obtained by The Associated Press…. Freddie Mac executive Hollis McLoughlin oversaw DCI's drive, according to the three people.” Mortgage firm arranged stealth campaign, Pete Yost, Associated Press, Oct 19, 2008 “(Hollis)McLoughlin is a member of Freddie Mac's leadership team and reports directly to CEO David
[M. Moffett. McLoughlin served from 1989 through 1992 as assistant secretary of the Treasury under President George Bush, where he was responsible for the coordination of all policy and management of several key internal functions. He served as chief of staff to Sen. Nicholas Brady, R-N.J., in 1982 ….” ](<http://www.freddiemac.com/bios/exec/mcloughlin.html>)<http://www.freddiemac.com/bios/exec/mcloughlin.html>
110 “The accounting board, which is to become the principal regulator of the accounting industry, was created by the Sarbanes-Oxley bill passed by Congress after the Enron and WorldCom accounting
scandals last year. Its job is not to set accounting rules, which are determined by the Financial Accounting Standards Board, but to set auditing standards and to discipline accountants. The board got off to a rocky start when the S.E.C., then under the leadership of Harvey L. Pitt, selected as its head William H. Webster, a former head of the Federal Bureau of Investigation and of the Central Intelligence Agency. Mr. Webster was chosen even though he had served as chairman of the audit committee of a company that faced questions about the accuracy of its accounts.” S.E.C. Picks A Fed Banker To Lead Panel, Floyd Norris, New York Times, April 16, 2003.
111 Collateral Damage: U.S. Covert Operations and the Terrorist Attacks on September 11, 2001, EP Heidner, p. 31.
112 The Secrete Gold Treaty, Part 2.4, The Bormann–Peron-Krupp-Marcos Connection, David Guyart. “(Bob Curtis)Curtis told me, regards a letter (in the possession of Curtis) that was sent to President Marcos on Trilateral notepaper – on the authority of Dr. Henry Kissinger – demanding that Marcos sell “63, 321 tons of gold to 2000 US and European banks admittedly controlled by the Trilateral.” This letter was dated 21 February 1986. Curtis adds that the last sentence of the 12 page letter states: “Release the 62,321 metric tons of gold now, while your are in a solid possession and right and you alone can do it and alone can claim immortal glory as the greatest man in Asia."
113 The Blood Bankers: Tales from the Global Underground Economy, James S Henry, Four Walls Eight Windows, 2003, pp.348-352. To verify the CIA ownership of this operation, see Judge Marvin Shoob,
“Judicial Order in the BNL Case,” October 5, 1992, U.S. District Court, Northern District of Georgia, US v. Christopher P. Drogoul. Criminal Action 1:91-CR-078-MHS..
114 Kissinger Fingerprints All Over Suspicious Pre-911 Money Movements, Wayne Madsen Report, December 15, 2006
115 “Counterparty Risk Management Policy Group, headed by former New York Fed president E. Gerald
Corrigan, whose studies were instrumental in raising awareness of CDS risks and prompting action in the private sector, held a symposium on the subject March 1. On Feb. 28, the current New York Fed chief, Timothy F. Geithner, put all these efforts in perspective in remarks, excerpted here, to the Global Association of Risk Professionals' seventh annual convention and exhibition in New York.” The Risk Beat Goes On, Charles Marston, Securities Industry News, March 15, 2006 Financial Times Ltd
116 David Guyatt, in his Hammer Files note that tranactions at Citibank are starting in 1989. This writer contends that Reed started consolidating CIA accounts in various national and international banks in 1989 a a preparatory tep in the 1991 war.
117 SunStar Cebu, Wednesday, May 2, 2007, p A13.
<http://www.sunstar.com.ph/specials/anniversary/PDF/special_3.a6.pdf>
118 The Blood Bankers, James S. Henry, p77
119 Leo Wanta used Citibank (New York, Los Angeles, and Milan) for his Russian ruble destabilization program. Thieves World: the Threat of the New Global Network of Organized Crime; Claire Sterling, Simon and Schuster, 1994, pp. 190-191.
120 The Blood Bankers, James S Henry, Four Walls Eight Windows, 2003, p334.
121 The Blood Bankers, James S Henry, Four Walls Eight Windows, 2003, p335.
122 The Blood Bankers, James S Henry, Four Walls Eight Windows, 2003, p348.
123 “BCCI was quick to establish a relationship with many of the U.S. banks that had expanded overseas
[in the '70s. A confidential internal BCCI study, obtained by "In These Times," illustrates just how many U.S. banks had close financial relationships with BCCI. The 1985 study notes that for all of 1984, BCCI transferred foreign currencies worth $37.5 billion through American banks. Most of these foreign currency transfers, $19 billion, involved five major American banks: Bank of America, Security Pacific, American Express Bank Ltd., the Bank of New York and First Chicago.” BCCI THE BIG PICTURE: A system out of control, not just one bank, George Winslow ; see also Allegations Regarding Vince Foster, the NSA, and Banking Transactions Spying, Part X, J. Orlin Grabbe, ](<http://web.textfiles.com/politics/og010.txt%3B>)[http://web.textfiles.com/politics/og010.txt;](<http://web.textfiles.com/politics/og010.txt%3B>)
124 The Blood Bankers, James S Henry, Four Walls Eight Windows, 2003, p72.
125 “In 2004, at the request of the major Wall Street investment houses, including Goldman Sachs, then headed by Paulson, the U.S. Securities and Exchange Commission agreed unanimously to release the
[major investment houses from the net capital rule, the requirement that their brokerages hold reserve capital that limited their leverage and risk exposure.” ](<http://en.wikipedia.org/wiki/Henry_Paulson>)<http://en.wikipedia.org/wiki/Henry_Paulson>
126 see Collateral Damage: U.S. Covert Operations and the Terrorist Attacks on September 11, 2001, E.P. Heidner, 2008.
127 “At this point Yeltsin hired Goldman Sachs to bring in new investment from outside and establish a system that would ensure reasonable returns for foreign investors. The Russian assignment was
[considered a plum in investment banking circles according to a 1992 article in the New York Times.” From The hawk, Garth Turner , ](<http://www.garth.ca/weblog/2007/10/07/the-hawk/>)<http://www.garth.ca/weblog/2007/10/07/the-hawk/>
128 “Robert Rubin, US Treasury Secretary from 1996 to early 1999, had previously been head of the
[Russian department at Goldman Sachs, the bank that played a major role in opening up Russia’s finance markets .” West’s autistic view of Russia, By Jacques Sapir, Le Monde Diplomatique, December 1999,](<http://mondediplo.com/1999/12/07sapir>)<http://mondediplo.com/1999/12/07sapir>
129 American Foreign Policy Since the Vietnam War: The Search for Consensus from Nixon to Clinton, Richard A. Melanson, M.E. Sharpe, 2000 p.208
130 [Robert Zoellick, Bush's State Department & the German Marshall Fund, a Nazi Industrial Front, Alex Constantine, Alex Constantine's Blacklist, June 11, 2008, ](<http://aconstantineblacklist.blogspot.com/2008/06/path-to-911-parts-9-16.html>)<http://aconstantineblacklist.blogspot.com/2008/06/path-to-911-parts-9-16.html>
131 The Fate of the Union: America's Rocky Road to Political Stalemate , Robert Shogan, Westview Press,
2004 , p 135.
132 “In '89, when I left, they had a ‘rash’ [of bond issues]. I mean they'd only made 5 bond issues from '85 to '88 when I was there and up until after I left. Then in '89 they made a whole bunch of legitimate
bond issues. Because they knew it [an investigation(?)] was coming.” From Transcript of the Larry Nichols Interview, which took place on the May 5, 1994 "America's Town Forum" radio show, hosted by Tom Donahue.
133 Cooking the Insurance Books: A Decade of Lax Regulation Lays Groundwork for Scandal, Lucy Komisar, Special to CorpWatch, November 17, 2004; Dirty Gold in Goldman Sachs?, Kris Millegan,
May 15, 2001 From The Washington Weekly, Mar. 17, 1997.’ AIG's Offshore Strategies Hide a Scam, Lucy Komisar
134 “The link between the Arkansas Development Finance Authority (ADFA) and AIG goes beyond $5 million. An AIG affiliate has managed over one billion dollars worth of ADFA's bonds, according to
the Arkansas Democrat Gazette. An allegation that ADFA launders money for U.S. intelligence has repeatedly surfaced but without any direct documentary evidence to date .” American International Group - From The Washington Weekly, Mar. 17, 1997.
135 “To return to Goldman Sachs, the company's officers earlier helped pay for Clinton's presidential campaign. In the 1992 race, the firm's officers contributed more than $100,000 in so-called "bundled"
money and raised millions more. According to Federal Election Commission records, Robert Rubin, who is now assistant to the president for economic policy and then was cochairman of Goldman Sachs, made a $275,000 contribution along with his wife from their personal foundation to the New York Host Committee of the Democratic National Convention.” From Cascading cast of Whitewater characters… - Whitewater Development Co , by Rebecca Borders and Alejandro Benes, Column Insight on the News, November 28, 1994.
136 Transcript of the Larry Nichols Interview, which took place on the May 5, 1994 "America's Town Forum" radio show, hosted by Tom Donahue.
137 The Crimes of Mena: Gray Money, Staff of the OZARK GAZETTE, 1995 .
138 See Gold Warriors: America’s Secret Recovery of Yamashita’s Gold, Sterling and Peggy Seagrave, Verso, 2005, pp. 96-97. It is important to note the original ‘argument’ for keeping the gold ‘secret’ was
to prevent a collapse of the world’s currencies, which at that time were tied to gold. It was argued that if the amount of gold discovered became public, currency values would drop. See Seagraves, p4.
139 For Robert Anderson’s association with intelligence operations, see All is Clouded by Desire: Global Banking, Money Laundering, and International Organized Crime, Alan A. Block and Constance
Weaver, Praeger, 2004 p.28-32; Ex-Treasury Chief Gets 1-Month Term in Bank Fraud Case, Frank J. Prial, New York Times, June 26, 1987.
140 Nazi Gold: Part 10-A:The Black Eagle Trust, David Guyatt; see also Gold Warriors, p. 194.
141 “So what they did is, you had borrowed $1 million, ADFA would give you the $1 million, they would give the bonds to Lasater to sell. When he sold 'em, he would give the money back to ADFA. But you
can't find one person, one individual, that ever bought the bonds. I mean, you would think with all the bond issues, millions of people, for hundreds of millions of dollars, would've had to of bought ‘a bond’. One of 'em. DONAHUE: Uh, you would think so. NICHOLS: But you can't find it. Anywhere.”
142 “Dan Lasater, Bill Clinton's best friend, who went to jail with Roger Clinton for cocaine -- not selling
it, but giving it away -- had a bonding, a bonding house. And guess what? He did the bond underwriting for ADFA. We found out 2 weeks ago from a high-ranking, ex-CIA official, a person who is authentic and he is on the record, that Dan Lasater was indeed the man that [Barry] Seal used to launder the money. For Mena. Some of that laundered money went into the Arkansas Development Finance Authority…. And the other underwriter of bonds at ADFA at the time was none other than Stephens' investment firm. And the man that brought BCCI to America was Jackson Stephens.” From Transcript of the Larry Nichols Interview, which took place on the May 5, 1994 "America's Town Forum" radio show, hosted by Tom Donahue.
143 “The hundreds of millions of dollars per month from cocaine and such was reportedly funneled through Garfield Ridge Trust and Savings Bank of Chicago . The bank has been owned and operated by congressman Rostenkowski and his cronies, who have commented on the bank's reported criminality for some 20 years now.” Transcript of the Larry Nichols Interview, which took place on the May 5, 1994 "America's Town Forum" radio show, hosted by Tom Donahue.
144 What is Whitewater Really All About Sherman H. Skolnick, Conspiracy Nation, Vol. 5 Num. 10.
145 “Bill Clinton got $1.78 million of his campaign money from tentacles that are from ADFA. He got the
balance of his money from tentacles that are the Stephens investment firm.”( Transcript of the Larry Nichols Interview, which took place on the May 5, 1994 "America's Town Forum" radio show, hosted by Tom Donahue.
146 “These soon to be Russian oligarchs had been set-up as front men by KGB Generals Aleksey (a.k.a. Alexei) Kondaurov; and Fillipp (a.k.a. Phillip) Bobkov, who would also sponsor Anton Surikov, also
reported as an agent for Western Intelligence. Both Kondaurov and Bobkov previously reported to Victor Cherbrikov, who worked with Robert Maxwell. Both Bobkov and Kruchkov (the August coup leader) were ideologically aligned, and worked together on structuring the Communist Parties economic activities starting in October 1990. Cherbrikov and Bobkov would later work for Most. Later, Bobkov would be targeted for assassination as a “lackey of Western interests”, after he admitted in his memoirs that the KGB was riddled with CIA agents. Kondaurov and Alexandre Konanykhine would bring a here-to-fore unknown politician and construction foreman named Boris Yeltsin from the hinterlands of Russia to the forefront of Russian politics through generous campaign financing, providing 50% of Yeltsin’s campaign funding. From E.P Heidner, Collateral Damage: U.S. Covert Operations and the Terrorist Attacks on September 11, 2001, p.28.
147 Anne Williamson's testimony before the Committee on Banking and Financial Services of the U.S. House of Representatives, presented Sept. 21, 1999.
148 “…only around 24 percent of the issue went to Mexican banks. …this exchange … was managed by Goldman Sachs…. The deal represented a real coup for Goldman Sachs, never before a noted
emerging markets house.” The Brazilian bailout three years later was similarly managed by Goldman Sachs. From University of New South Wales, University of New South Wales Faculty of Law Research Series, Year 2007 Paper 17, A Force for Globalisation: Emerging Markets Debt Trading from 1994 to 1999, Ross P. Buckley.
149 [from ](<http://www.nasd.com/>)[www.nasd.com](<http://www.nasd.com/>)[.](<http://www.nasd.com/>)
150 'Supersized’ fines on the wane, study says – Oct. 3, 2007, issue of “Investment News”]
151 “Between 1993 and 1995 alone, Ex-Im Bank supported Enron deals in India, Turkey, the Philippines and China worth nearly $4 billion, making the Houston-based company one of the biggest
beneficiaries of the Clinton administration’s export policy. The head of the federal bank at the time, Kenneth Brody….” From Senate probes Clinton loans for Enron deals Finance committee finds 3 federal agencies gave 'hundreds of millions' to risky projects, Paul Sperry, WorldNetDaily.com, February 20, 2002
152 How Washington Failed to Rein In Fannie, Freddie: As Profits Grew, Firms Used Their Power to Mask Peril,Binyamin Appelbaum, Carol D. Leonnig and David S. Hilzenrath,Washington Post,
September 14, 2008)
153 Obama Regulatory Pick Blocked Influence of Agency He’ll Now Head, Jake Bernstein, ProPublica - December 19, 2008.
154 [Working Papers –CHRONOLOGY of Dillon Read & the Aristocracy of Stock Profits, ](<http://dunwalke.com/resources/documents/Chronology/DUNWALKE_Chronology_Fin_June2007.pdf)>)<http://dunwalke.com/resources/documents/Chronology/DUNWALKE_Chronology_Fin_June2007.pdf)>
155 Leo Strauss: Philosophical captain of sinking USS America, Hank Joerger, October 2008 Idaho
Observer),
156[ ](<http://www.whitehouse.gov/government/bolten-bio.html>)[http://www.whitehouse.gov/government/bolten-bio.html.](<http://www.whitehouse.gov/government/bolten-bio.html>)
157 Oct. 13 (EIRNS)—Treasury Secretary Henry Paulson, formerly of Goldman Sachs, and his sidekick, Treasury Undersecretary for Domestic Finance ("Plunge Protection"), Robert Steel, also from
Goldman Sachs, are trying to orchestrate a crazy $100 billion bailout scheme for their former firm, .. according to today's Wall Street Journal.” From EIR Online, Online Almanac,Volume 6, Issue 42, October 16, 2007.
158 SEC NEWS DIGEST, Issue 2003-87, May 7, 2003.
159 See The Oil and the Glory: The Pursuit of Empire and Fortune on the Caspian Sea, Steve Levine, Random House, 2007
160 [West’s autistic view of Russia, By Jacques Sapir, Le Monde Diplomatique, December 1999, ](<http://mondediplo.com/1999/12/07sapir)>)[http://mondediplo.com/1999/12/07sapir](<http://mondediplo.com/1999/12/07sapir)>)[).](<http://mondediplo.com/1999/12/07sapir)>)
161 By that time, Zoellick was testifying to Congress about what he and Hormats knew of Soviet industry: “Soviet industrialists told (Robert Hormats) that single factory monopolies tend to be the rule, not the
exception, and that they account for an estimated 30-40 percent of industrial output. The CIA has pointed out that "the Soviet Union's entire output of potato, corn and cotton harvesting equipment comes from single factories--all in different republics." Robert B. Zoellick, Under Secretary of State for Economic and Agricultural Affairs and Counselor, Statement before the Subcommittee on Europe and the Middle East of the House Foreign Affairs Committee, Washington, DC, Oct 2, 1991,10/2/91
162 “A note on George Bush's cameo: You may wish to get footage of Bush's speech at the Goldman
[Sachs' gala in early June (1997). … Goldman flew him in to open up their Moscow office.” ](<http://www.pbs.org/wgbh/pages/frontline/shows/crash/etc/russia.html>)<http://www.pbs.org/wgbh/pages/frontline/shows/crash/etc/russia.html>
163 “Banker fees in privatization sales have ranged from 1.5% to 7% of gross revenue. Goldman Sachs
received 4.5% for selling shares of the Mexican telephone company Telmex in 1991, and 3% in its underwriting of a further Telmex offering in 1992.” Privatization: The Global Attack on Democracy, Labor, and Public Values,Edward Herman, Z magazine, September 199
164 See two sources: Russian Honey Laundering, Serial No. 106-38, September 21, 22, 1999 Hearings BEFORE THE COMMITTEE ON BANKING AND FINANCIAL SERVICES ,U.S. HOUSE OF
REPRESENTATIVES , ONE HUNDRED SIXTH CONGRESS , FIRST SESSION, Serial No. 106-
[38. See also “The author clearly intends us to appreciate the characters she portrays as dynamic and progressive entrepreneurs. But she actually gives us a picture of a bunch of greedy criminals who have shamelessly looted and wrecked their country. The government sold off several huge oil companies including LUKoil, Russia's largest company, Yukos, Russia's second biggest oil company, and Sidanco. Mikhail Khodorovsky loaned the government $159 million for a 45% stake in Yukos in 1995. He sold it to himself in 1996, using a shell company, for $160 million. The state got $1 million profit; Khodorovsky got the company, valued at $15 billion in 2002. He bought oil cheap from the extractor companies, and pledged it, at high export prices, to secure the loans. This transfer pricing stripped the assets and values from the producers, who got only the debts and expenses. Goldman Sachs profited from the looting: they underwrote Khodorovsky's $500 million loan against future oil sales.” Review of Sale of the Century: Russia's Wild Ride from Communism to Capitalism, Crime of the century!, November 22, 2004, William Podmore (London United Kingdom) ](<http://www.amazon.com/review/product/0812932153?filterBy=addThreeStar>)<http://www.amazon.com/review/product/0812932153?filterBy=addThreeStar>
165 see E.P Heidner, Collateral Damage: U.S. Covert Operations and the Terrorist Attacks on September 11, 2001.
166 Privatization: The Global Attack on Democracy, Labor, and Public Values,Edward Herman, Z
magazine, September 1997
167 “According to Inside Mortgage Finance, that made GSAMP the 15th biggest issuer of subprime- backed bonds in 2006. According to the website ABAlert.com (Asset-backed Alert), Goldman Sachs
was one of the top 10 sellers of Collateralized Mortgage Obligations (CMO's) and may have sold about
$100 billion in CMO's over the last two and a half years.” [Finfacts Ireland, 'How Goldman Sachs made money from US subprime mortgages on the way up and down', December 4, 2007]
168 “… the start of the third quarter (2007), those securities were being downgraded by the credit ratings
agencies faster than any other subprime lender. According to a Reuters report, Citigroup's research (June 22, 2007), stated "portions of Goldman's GSAMP-issued bonds, which include subprime loans from a variety of lenders, have been downgraded a combined 69 times by Standard & Poor's and Moody's Investors Service in the year through June 15. Sixty of the GSAMP downgrades refer to classes from 2006 bonds," Citigroup added, and Allan Sloane in The Washington Post stated that one of Goldman's 2006 crop - the GSAMP Trust 2006- S3 - may actually be "the worst deal…floated by a top-tier firm." One in every six of the 8,274 mortgages bundled together in GSAMP Trust 2006-S3 was already in default 18 months later. Whoever bought the S3 bonds will have either taken a 100% loss, or are waiting to sell it on at a heavy discount.” [The Washington Post, An Unsavory Slice of Subprime, October 16, 2007]
169 “Despite the 2007 subprime mortgage crisis, Goldman was able to profit from the collapse in subprime mortgage bonds in the summer of 2007 by selling subprime mortgage-backed securities short.” Time Online, December 19, 2007.
170 “Goldman Sachs Group, the most profitable securities firm in Wall Street history, has awarded
[$US67.5 million ($A72.7 million) each to co-presidents Gary Cohen and John Winkelried, boosting their pay 27% from the previous year as the company evades the mortgage losses spreading through the US economy. Mr Cohen, 47, and Mr Winkelried, 48, received 40% of their compensation in cash and 60% in restricted stock and options. The payout amounts to $US185,000 a day, including weekends. The median annual income of US households was $48,2001 in 2006. The awards “are doing anything to take the focus off executive compensation,” Laura Thatcher, head of the executive pay practice at the Alston & Bird law firm. “Those numbers innately are high.” Goldman set a record for Wall Street in December when it granted chairman and chief executive Lloyd Blankfein $US68.5 million in salary and bonuses for 2007, topping the prior year’s $US54 million. Goldman’s 22% jump in profit and 7.9% share-price gain last year outpaced Citigroup and Merrill Lynch & Co, which ousted their chief executives after posting losses from the collapse of the subprime mortgage market. Former Citigroup chief Chuck Prince, and Stan O’Neal, who lost the top post at Merril, testified in Washington last week at a congressional hearing on executive pay. Law makers criticised the two executives for reaping hundreds of millions of dollars while shareholders bore the brunt of writedowns on mortgage assets and credit losses. “There seem to be two different economic realities,” said Henry Waxman, a California Democrat and chairman of the House Oversight and Government Reform Committee. “Most Americans live in a world where economic security is precarious. But our nation’s top executives seem to live by a separate set of rules.” Bloomberg, The Sunday Age, March 9, 2008 – ](<http://www.theage.com.au/>)[www.theage.com.au](<http://www.theage.com.au/>)
171 “At the time they make their commitments, the investors don’t know exactly where their money will
[go beyond broad categories” Big Deals, James K. Glassman, Washingtonian, June 2006, ](<http://www.carlyle.com/Media%20Room/Fact%20Sheet%20Files/item9959.pdf>)<http://www.carlyle.com/Media%20Room/Fact%20Sheet%20Files/item9959.pdf>
172 BC Gas may go to shadowy Carlyle Group, Kevin Potvin, The Republic, East Vancouver, June 8 to June 21, 2006, No 140.
173 “Six days after officially quitting the Pentagon, January 6, 1989, Frank Carlucci became Carlyle's
Director General. He brought trusted lieutenants from the CIA, the State Department, and the Defense Department with him.” Carlyle Empire, Eric Leser, Le Monde, April 29, 2004; “When Carlucci arrived there in 1989, he brought with him a phalanx of former subordinates from the CIA and the Pentagon” The ex-presidents' club, Oliver Burkeman and Julian Borger, The Guardian, October 31, 2001
174 Ari Ben-Menashe. Profits of War, Inside the Secret U.S.-Israeli Arms Network, Sheridan Square Press, 1992, p191.
175 The Iron Triangle, Dan Briody, 2003 P. 75.
176 The Iron Triangle, p.35.
177 A very key player in the success of BDM was Paisley, who managed Black Ops procurement with the Navy. She went to BDM from CSC pp60-62
178 See Collateral Damage: EP Heidner
179 Carlyle Empire, Eric Leser, Le Monde, April 29, 2004
180 [Carlyle To Launch Hedge Funds,Carla Johnson, Investors Offshore, London, 13 March 2002, ](<http://www.tax-news.com/archive/story/Carlyle_To_Launch_Hedge_Funds_xxxx7586.html>)[http://www.tax-news.com/archive/story/Carlyle_To_Launch_Hedge_Funds_xxxx7586.html.](<http://www.tax-news.com/archive/story/Carlyle_To_Launch_Hedge_Funds_xxxx7586.html>)
181 [US private equity firm Carlyle launches $400m secondaries fund, May 15, /2002, ](<http://www.altassets.com/news/arc/2002/nz867.php>)[http://www.altassets.com/news/arc/2002/nz867.php.](<http://www.altassets.com/news/arc/2002/nz867.php>)
182 Carlyle Group sells controlling stake to hedge funds management, June 23, 2003,
<http://www.hedgeweek.com/articles/detail.jsp?content_id=9438>
183 “At the time they make their commitments, the investors don’t know exactly where their money will go beyond broad categories” Big Deals, James K. Glassman, Washingtonian, June 2006,
<http://www.carlyle.com/Media%20Room/Fact%20Sheet%20Files/item9959.pdf>
184 [Carlyle Group Underestimates Credit Crisis, Dan Denning • August 30th, 2007, ](<http://www.dailyreckoning.com.au/carlyle-group/2007/08/30/>)<http://www.dailyreckoning.com.au/carlyle-group/2007/08/30/>
185 That group consists of at least 11 individuals: Robert Edward Rubin, Stephen Friedman, Benjamin S. Bernanke, Henry Merritt Paulson, Neel Kashkari, Faryar Shirzad, E. Gerald Corrigan, Jeffery Reuben,
Josh Bolten, Robert Zoellick and Bush family member George Herbert Walker IV . It should also
include Kissinger Group, which was started with a loan from Goldman-Sachs. “George Herbert Walker IV (born April 1969) is a Managing Director at Lehman Brothers and is a second cousin to
[U.S. President George W. Bush. Walker began his career on Wall Street when he joined Goldman Sachs in the Merger Department in 1992 and six years later, in 1998, became of one of the firm's youngest partners ever. He held several senior positions at Goldman, including co-head of the firm's Wealth Management business, and head of Alternative Investment strategies. In May 2006, Walker announced that he was resigning from Goldman Sachs to become global head of rival Lehman Brothers' Investment Management division.” ](<http://en.wikipedia.org/wiki/George_Herbert_Walker_IV>)http://en.wikipedia.org/wiki/George_Herbert_Walker_IV According to the book Kissinger, by Walter Isaacson, published in 1992 by Simon & Schuster, Kissinger started his consultancy in July 1982 with “$350,000 lent to him by Goldman Sachs and a consortium of three other banks.”
186 “As lead pony at Goldman Sachs, he (Rubin) led that investment bank into plunging billions into
[Mexican bonds. As head of the White House Economic Security Council, he failed to see the Mexican default barreling up the tracks. But as treasury secretary, he was able to shovel billions of U.S. dollars down Mexico way, thus saving the Goldman Sachs investments” Bailing Out Brazil -- Or Robert Rubin? Patrick J. Buchanan ,August 14 2002. See also “Then came a $30 billion dollar IMF bailout of Brazil. Now, the World Bank and Inter-American Development Bank are offering Brazil another $7 billion. "American banks have about $25.6 billion in outstanding loans to Brazilian borrowers. Citigroup, the biggest lender to Brazil, has $9.7 billion in Brazilian loans." That's right. Forty percent of the U.S. bank exposure in Brazil is the fault of America's biggest and dumbest bank. And who is the resident financial wizard at Citigroup? "Robert H. Rubin.”](<http://www.theamericancause.org/patbailingout.htm>)<http://www.theamericancause.org/patbailingout.htm>
187 There are multiple sources for this, starting with Chapter 15 of Gold Warriors. Separately, one can check the story of Jim Curtis. “We had been told in the early 1990's of an agreement signed in the early
[1980's between Marcos, President Ronald Reagan, James Baker on behalf of the U.S. Treasury, John Reed of Citibank, and even Margreat Thatcher for Great Britain, whereby they agreed to take and use the late Sta. Romana/ Diaz's assets for their unauthorized clandestine activities around the world.” C.E. "Jim" Brown, ](<http://www.rense.com/political/PRESSREL.htm>)<http://www.rense.com/political/PRESSREL.htm>
188 CEOs “cashed out” prior to economic crisis, Tom Eley, Global Research, December 1, 2008, World Socialist Web Site
189 “Alan Reynolds of the libertarian Cato Institute, writing for Forbes.com, says the ringing of alarm bells
[about a credit crisis has been unwarranted. Mr. Reynolds cites some of the warnings I mentioned above, such as the one from Congressional Budget Office Director Peter Orszag, who said "short-term lending was virtually shut down." And a Washington Post report that said "tightening [bank] credit conditions are already affecting some consumers and business," or the Fox News report saying that "McDonald's can't even get a loan." Then there's House Majority Leader Democrat Steny Hoyer, who said the bailout plan was designed to "unlock the credit," and a Wall Street Journal writer saying "Until we get the banks lending again, the economy will continue to contract." So why does Reynolds say the alarms are unwarranted. Because, he says, "Such alarming comments never mention any facts." Those facts, Reynolds says, are that data for August reveal "...bank loans to consumers were 9.5 percent higher than they were a year earlier - the fastest increase since 2004." And, he says, "Real estate loans were up 4.1 percent for the 12-month period ending this August...." from What Credit Crisis?, AC Writer, October 06, 2008, ](<http://www.associatedcontent.com/article/1087179/what_credit_crisis.html?page=2&cat=9%3B>)[http://www.associatedcontent.com/article/1087179/what_credit_crisis.html?page=2&cat;=9; ](<http://www.associatedcontent.com/article/1087179/what_credit_crisis.html?page=2&cat=9%3B>)see also “The financial press and policymakers have made the following four claims…
1.Bank lending to nonfinancial corporations and individuals ahs declined sharply.
2. Interbank lending is essentially nonexistent.
3. Commercial paper issuance by nonfinancial corporations has declined sharply, and rates have risen to unprecedented levels.
4. Banks play a large role in channeling funds from savers to borrowers.
Here we examine these claims using data from the Federal Reserve Board and Bloomberg, Our argument that all four claims are false is based on data up until October 15, 2008.” From
Facts and Myths about the Financial Crisis of 2008, V.V. Chari, Lawrence Christiano, Patrick J. Kehoe, Working Paper 666, October 2008, Federal Reserve Bank of Minnesota, Research Department
190 “By taking advantage of the Treasury’s capital injection program to help pay for its acquisition of National City, PNC averted the risk of securing financing from fickle private investors. PNC exploited a recent change to the tax code, made at the behest of Treasury this month, that will give it an estimated $6 billion tax benefit — possibly enough to cover the entire transaction, according to analysts.” Insurers Are Getting in Line for Piece of Federal Bailout, Edmund L. Andrews and Eric Dash, October 25, 2008
191 “At one point in the conference one participant asked whether the $25 billion (loan to JPMorgan
Chase) will “change our strategic lending policy.” The executive then proceeded to spill the beans: “What we do think, it will help us to be a little bit more active on the acquisition side or opportunistic side for some banks who are still struugling.” The Bailout Lie Exposed: Financial "Big Boys" Never Intended To Lend Out Their Windfall, Prof. Alan Nasser, Global Research, October 28, 2008
192 “USB did not want this money. The US Treasury strong armed well capitalized banks into taking the
money so that the poorly run banks who took it would not be stigmatized by accepting the money.” From U.S. Bancorp will receive $6.6 billion and TCF $361 million from the Treasury Department's capital investment program, Steve Alexander, Star Tribune, November 3, 2008
193 “the analysis concludes that the $10-billion bailout Treasury cut for Goldman Sachs with taxpayers' money is only half as good as the one Goldman gave Buffett - effectively a $5 billion "gift from the
[taxpayers of the United States to the shareholders of Goldman Sachs" in Gerard's words.” From: Paulson Cuts Goldman Sachs a Sweetheart Deal, Marco Trbovich, October 29, 2008,](<http://www.huffingtonpost.com/marco-trbovich/paulson-cuts-goldman-sach_b_138862.html>)<http://www.huffingtonpost.com/marco-trbovich/paulson-cuts-goldman-sach_b_138862.html>
194 “Financial workers at Wall Street's top banks are to receive pay deals worth more than $70bn (£40bn),
a substantial proportion of which is expected to be paid in discretionary bonuses, for their work so far this year - despite plunging the global financial system into its worst crisis since the 1929 stock market crash, the Guardian has learned Staff at six banks including Goldman Sachs and Citigroup are in line to pick up the payouts despite being the beneficiaries of a $700bn bail-out from the US government that has already prompted criticism. The government's cash has been poured in on the condition that excessive executive pay would be curbed.” Wall Street banks in $70bn staff payoutPay and bonus deals equivalent to 10% of US government bail-out package, Simon Bowers The Guardian, Saturday October 18 2008 .
195 The historical and psychological basis for this comparison is best found in the classics “The Origins of Totalitariansism,” by Hannah Arendent, see especially Chapters 11 and 12. See also “Political
Ponerology” by Andrew M. Lobaczewski, Red Pill Press, Canada, originally published in 1984 as Ponerologia Polityczna.
196 By example when Larry Nichols made public his case against the Arkansas Development Finance Authority and Bill Clinton, he notes receiving enormous pressure to drop the charges in the benefit of
“the national interest.” “NICHOLS: The incredible thing last week was, I got 5 calls from Wall Street, whatever you call 'em,brokerage firm people…They said, "Well you can't do that, basically, because the dollar versus the yen," (whatever that means), "is like at 100 and, one more scandal is going to destroy the dollar- … Yeah. I mean they didn't threaten me, but they said, you know, "You're destroying the economy." Transcript of the Larry Nichols Interview, which took place on the May 5, 1994 "America's Town Forum" radio show, hosted by Tom Donahue.
197 [(January 2002, interview by Matt Ehlingfor for Declassified Radio (which doesn't exist anymore). ](<http://sf.indymedia.org/print.php?id=113300%2C)>)http://sf.indymedia.org/print.php?id=113300,) [ Le Cercle and the struggle for the European
continent:Private bridge between Vatican-Paneuropean- and Anglo-American intelligence, Joël van der Reijden, November 18, 2006; See also Prelude to Terror: The Rogue CIA and the Legacy of America's Private Intelligence Network, Joseph J. Trento, Carroll & Graf Publishers, 2006 p. 124, for insight that corroborates Carlucci’s involvement with these rogue CIA agents.