Tag Archives: Ben Bernanke

The Ben Bernank, Explained

Information on who exactly has viewed this video available at The Daily Beast. An excerpt:

I should point out that I was told to download the YouTube video not by some dopey trader during a slow day in the markets, but by a CEO in New York City who runs one of the biggest financial firms in the world. Bernanke’s senior staff has seen it too, I’m told, though a spokesman wouldn’t say whether the chairman has.

The Cover-Up, not the Crime

Interesting pieces, on how Federal Reserve Chairman Ben Bernanke and Goldman Sachs CEO / Treasuury Secretary Henry Paulson threatened to fire the board and manage of Bank of America, unless the Bank agreed to spend money on projects that were politically popular with the right people.

No surprise, except

Congressional hearings into these allegations were conducted on June 25, 2009, with Bernanke testifying that he did not bully Ken Lewis. Under intense questioning by members of Congress, Bernanke said, “I never said anything about firing the board and the management [of Bank of America].”

Will Eric Holder prosecute Tim Geithner if he covers up “Stress Test” Results?

After initially being very critical of Eric Holder (Obama’s Attorney General), I praised Mr. Holder for setting aside the ill-gotten verdict against former Senator Ted Stevens.

While I realize that public declarations of this would be premature, I hope Eric Holder would criminally prosecute Treasury Secretary Tim Geithner if Geithner attempts to squash the reporting the results of the Treasury’s “stress tests”

One more point worth making – Results of the stress tests, especially if they show potential capital shortage, surely constitute a reportable material event and therefore must be publicly disclosed to the SEC to protect the shareholders, who are likely to be diluted.

It is not just the matter of public trust and fairness, it is the SEC law.

More from Calculated Risk:

And on transparency:

“I think serious efforts will be made to respect the confidential nature of the test and its results,” [Ludwig] said, but added that “there is a real danger that the results of the stress test are uncovered and this roils the markets.”

The results of the stress test should be made public – at least for any bank taking TARP money. This would build confidence in the process, otherwise serious doubts will remain.

The “stress tests” are part of the Treasury’s efforts to launder money from the US government to bankers and Wall Street speculators. However, as the “stress tests” themselves will be conducted by career civil servants, the raw analysis (if not the Treasury’s final spin) may well be objective.

I expect Treasury Secretary Tim Geithner to attempt to lean on banks to prohibit them from fulfilling their lawful duties of publicly reporting the details of these material events. I hope Attoreny General Eric Holder will make that right.

Update: The Federal Reserve prohibits banks from publishing their stress-test results. Will Eric Holder prosecute Ben Bernanke?