Welfare for corporate criminals while real people starve

Tue Feb 26 00:54:25 GMT 2013

The new US Secretary of State, John Kerry, is an 
extremely dangerous Bushite firestarter
Both 2004 presidential candidates, George W. Bush 
and John Kerry, are members of Skull and Bones, a 
satanic secret society based on sexual deviance 
and organized crime. Bush and Kerry each, during 
their induction to Skull and Bones, laid naked in 
a coffin in front of the older Bonesmen, enjoying 
themselves while recounting their entire sexual histories.
The US military, too, hosts a similar crime ring. 
Kay Griggs, ex-wife of a Marine Colonel, has 
described the horrors she endured at the hands of 
a homosexual/rapist/pedophile ring that was just 
as untouchable as the Vatican sex mafia that brought down the Pope.
http://www.presstv.ir/detail/2013/02/23/290392/decadent-west-and-rise-of-sexual-deviancy/ 

KPMG, Deloitte, Ernst & Young and 
PricewaterhouseCoopers hit back as probe attacks audit closed club
Mark Leftly - Friday 22 February 2013
http://www.independent.co.uk/news/business/news/kpmg-deloitte-ernst--young-and-pricewaterhousecoopers-hit-back-as-probe-attacks-audit-closed-club-8507238.html 

The Competition Commission has found that the 
audit market has systemic issues that have led 
to a closed club of the Big Four accountants dominating the sector.
Senior figures at KPMG, Deloitte, Ernst & Young 
and PricewaterhouseCoopers have reacted angrily 
to the findings of Laura Carstensen, the 
commissions inquiry chairman, that the market is 
suffering from a lack of competition. Between 
them, the Big Four run the numbers of more than 
95% of the FTSE 350, a market worth almost £800 million in fees.

Why Should Taxpayers Give Big Banks $83 Billion a Year?
Welfare for corporate criminals while real people starve
By the Editors Feb 20, 2013 11:30 PM GMT+0000
http://www.bloomberg.com/news/2013-02-20/why-should-taxpayers-give-big-banks-83-billion-a-year-.html 

On television, in interviews and in meetings with 
investors, executives of the biggest U.S. banks 
-- notably JPMorgan Chase & Co. Chief Executive 
Jamie Dimon -- make the case that size is a 
competitive advantage. It helps them lower costs 
and vie for customers on an international scale. 
Limiting it, they warn, would impair 
profitability and weaken the countrys position in global finance.
So what if we told you that, by our calculations, 
the largest U.S. banks arent really profitable 
at all? What if the billions of dollars they 
allegedly earn for their shareholders were almost 
entirely a gift from U.S. taxpayers?
Granted, its a hard concept to swallow. Its 
also crucial to understanding why the big banks 
present such a threat to the global economy.
Lets start with a bit of background. Banks have 
a powerful incentive to get big and unwieldy. The 
larger they are, the more disastrous their 
failure would be and the more certain they can be 
of a government bailout in an emergency. The 
result is an implicit subsidy: The banks that are 
potentially the most dangerous can borrow at 
lower rates, because creditors perceive them as too big to fail.
Lately, economists have tried to pin down exactly 
how much the subsidy lowers big banks borrowing 
costs. In one relatively thorough effort, two 
researchers -- Kenichi Ueda of the International 
Monetary Fund and Beatrice Weder di Mauro of the 
University of Mainz -- put the number at about 
0.8 percentage point. The discount applies to all 
their liabilities, including bonds and customer deposits.
Big Difference
Small as it might sound, 0.8 percentage point 
makes a big difference. Multiplied by the total 
liabilities of the 10 largest U.S. banks by 
assets, it amounts to a taxpayer subsidy of $83 
billion a year. To put the figure in perspective, 
its tantamount to the government giving the 
banks about 3 cents of every tax dollar collected.
The top five banks -- JPMorgan, Bank of America 
Corp., Citigroup Inc., Wells Fargo & Co. and 
Goldman Sachs Group Inc. - - account for $64 
billion of the total subsidy, an amount roughly 
equal to their typical annual profits (see tables 
for data on individual banks). In other words, 
the banks occupying the commanding heights of the 
U.S. financial industry -- with almost $9 
trillion in assets, more than half the size of 
the U.S. economy -- would just about break even 
in the absence of corporate welfare. In large 
part, the profits they report are essentially 
transfers from taxpayers to their shareholders.
Neither bank executives nor shareholders have 
much incentive to change the situation. On the 
contrary, the financial industry spends hundreds 
of millions of dollars every election cycle on 
campaign donations and lobbying, much of which is 
aimed at maintaining the subsidy. The result is a 
bloated financial sector and recurring credit 
gluts. Left unchecked, the superbanks could 
ultimately require bailouts that exceed the 
governments resources. Picture a meltdown in 
which the Treasury is helpless to step in as it did in 2008 and 2009.
Regulators can change the game by paring down the 
subsidy. One option is to make banks fund their 
activities with more equity from shareholders, a 
measure that would make them less likely to need 
bailouts (we recommend $1 of equity for each $5 
of assets, far more than the 1-to-33 ratio that 
new global rules require). Another idea is to 
shock creditors out of complacency by making some 
of them take losses when banks run into trouble. 
A third is to prevent banks from using the 
subsidy to finance speculative trading, the aim 
of the Volcker rule in the U.S. and financial ring-fencing in the U.K.
Once shareholders fully recognized how poorly the 
biggest banks perform without government support, 
they would be motivated to demand better. This 
could entail anything from cutting pay packages 
to breaking down financial juggernauts into more 
manageable units. The market discipline might not 
please executives, but it would certainly be an 
improvement over paying banks to put us in danger.
--
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"Capitalism is institutionalised bribery."
_________________
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"The maintenance of secrets acts like a psychic 
poison which alienates the possessor from the community" Carl Jung
<https://217.72.179.7/members/www.bilderberg.org/phpBB2/>https://217.72.179.7/members/www.bilderberg.org/phpBB2/

Fear not therefore: for there is nothing covered 
that shall not be revealed; and nothing hid that 
shall not be made known. What I tell you in 
darkness, that speak ye in the light and what ye 
hear in the ear, that preach ye upon the housetops. Matthew 10:26-27

Die Pride and Envie; Flesh, take the poor's advice.
Covetousnesse be gon: Come, Truth and Love arise.
Patience take the Crown; throw Anger out of dores:
Cast out Hypocrisie and Lust, which follows whores:
Then England sit in rest; Thy sorrows will have end;
Thy Sons will live in peace, and each will be a friend.
http://tinyurl.com/6ct7zh6  
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