Cross posted from The Stars Hollow Gazette

Bloomberg News is reporting that a NY Federal Judge has rejected the $285 million settlement that Citibank had negotiated with the SEC over $1 billion in mortgage securities fraud that would also have exonerated the bank of guilt. Citibank Citibank had led investors to believe that the mortgage investments were safer than they actually were, leading to a financial loss of around $700 million.

U.S. District Judge Jed Rakoff rejected the settlement in an opinion released today. The judge has criticized the agreement for permitting New York-based Citigroup to settle without admitting or denying liability in the matter. [..]

“In any case like this that touches on the transparency of financial markets whose gyrations have so depressed our economy and debilitated our lives, there is an overriding public interest in knowing the truth,” Rakoff wrote in the opinion.

Rakoff consolidated the case with another SEC suit involving former Citigroup employee Brian Stoker and scheduled the combined case for trial on July 16, 2012. The parties may try to reach a revised settlement, which must be approved by Rakoff to take effect.

From Think Progress:

The “judge wrote that there is an overriding public interest in knowing the truth about the financial markets. He set a July 16 trial date for the case.”

The SEC should have fined them twice the losses, not that it would have deterred Citibank from doing it again.  

Cross posted from The Stars Hollow Gazette

As if we didn’t know that they were all lying through their teeth on the extent of the bank bail out in late 2008, we’ve just never been sure of the price tag of all those lies. Now due to the dogged diligence of Bloomberg News, we have a better picture if what was handed out to the banks with no strings, $7.77 TRILLION. TARP, a mere $750 billion, was just 2% of that and who could forget the squawking from Congress that went on about that paltry sum.

Meantime the Federal Reserve has been fighting to keep the details of the largest bank bailout in US history buried from the public:

The Fed didn’t tell anyone which banks were in trouble so deep they required a combined $1.2 trillion on Dec. 5, 2008, their single neediest day. Bankers didn’t mention that they took tens of billions of dollars in emergency loans at the same time they were assuring investors their firms were healthy. And no one calculated until now that banks reaped an estimated $13 billion of income by taking advantage of the Fed’s below-market rates, Bloomberg Markets magazine reports in its January issue.

Saved by the bailout, bankers lobbied against government regulations, a job made easier by the Fed, which never disclosed the details of the rescue to lawmakers even as Congress doled out more money and debated new rules aimed at preventing the next collapse. [..]

The amount of money the central bank parceled out was surprising even to Gary H. Stern, president of the Federal Reserve Bank of Minneapolis from 1985 to 2009, who says he “wasn’t aware of the magnitude.” It dwarfed the Treasury Department’s better-known $700 billion Troubled Asset Relief Program, or TARP. Add up guarantees and lending limits, and the Fed had committed $7.77 trillion as of March 2009 to rescuing the financial system, more than half the value of everything produced in the U.S. that year.

“TARP at least had some strings attached,” says Brad Miller, a North Carolina Democrat on the House Financial Services Committee, referring to the program’s executive-pay ceiling. “With the Fed programs, there was nothing.”

Bankers didn’t disclose the extent of their borrowing. On Nov. 26, 2008, then-Bank of America (BAC) Corp. Chief Executive Officer Kenneth D. Lewis wrote to shareholders that he headed “one of the strongest and most stable major banks in the world.” He didn’t say that his Charlotte, North Carolina-based firm owed the central bank $86 billion that day.

As expected, Obama’s Treasury Secretary, Timothy Geithner, one of the chief architects of this hand out, fought limiting the size of banks. David Dayen at FDL points this out from the article:

   On May 4, 2010, Geithner visited (former Sen. Ted) Kaufman in his Capitol Hill office. As president of the New York Fed in 2007 and 2008, Geithner helped design and run the central bank’s lending programs. The New York Fed supervised four of the six biggest U.S. banks and, during the credit crunch, put together a daily confidential report on Wall Street’s financial condition. Geithner was copied on these reports, based on a sampling of e- mails released by the Financial Crisis Inquiry Commission.

   At the meeting with Kaufman, Geithner argued that the issue of limiting bank size (Kaufman and Brown were working on a simple bill to cap bank size) was too complex for Congress and that people who know the markets should handle these decisions, Kaufman says. According to Kaufman, Geithner said he preferred that bank supervisors from around the world, meeting in Basel, Switzerland, make rules increasing the amount of money banks need to hold in reserve. Passing laws in the U.S. would undercut his efforts in Basel, Geithner said, according to Kaufman.

Not only have the banks and the regulators lied, they continue to lie. From Yves Smith at naked capitalism:

I get really offended by the bogus accounting, such as the “banks paid back the TARP” or “the Fed lost no money on its lending facilities,” which this story annoyingly has to repeat out of adherence to journalistic convention. This is all three card Monte. So what if the banks paid back loans when the central bank has goosed asset prices vis super low interest rates? That’s a massive tax on savers. And we have the hidden subsidy of underpriced bank rescue insurance. Ed Kane estimates that’s worth $300 billion a year for US banks; Andrew Haldane of the Bank of England has pencilled the annual cost as exceeding the market cap of big banks (and that was in 2010, when their stock prices were higher than now).

The Fed is most assuredly going to have losses. It hoovered up a ton of Treasuries and MBS to shore up asset prices at time when interest rates were already low. The central bank intends to sell them when interest rates rise, to soak up liquidity. Buying when interest rates are low and selling when rates are high guarantees losses. As an old Wall Street saying goes, it’s easy to manipulate markets, but hard to make money from it.

This would not have happened if Glass-Steagall had still been in place. If these details had been known, they would have gone a long way into reinstitution of that law which, for most of the last century, separated customer deposits from the riskier practices of investment banking.

It is long past time that both Ben Bernanke and Timothy Geithner resign. If they don’t do so voluntarily, President Obama should demand they do. I won’t hold my breath.

BTW, so far this morning, not a peep from the traditional MSM about this revelation.

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

November 29 is the 333rd day of the year (334th in leap years) in the Gregorian calendar. There are 32 days remaining until the end of the year.

On this day in 1963, one week after President John F. Kennedy was fatally shot while riding in a motorcade in Dallas, Texas, President Lyndon Johnson establishes a special commission, headed by Supreme Court Chief Justice Earl Warren, to investigate the assassination.

After 10 months of gathering evidence and questioning witnesses in public hearings, the Warren Commission report was released, concluding that there was no conspiracy, either domestic or international, in the assassination and that Lee Harvey Oswald, the alleged assassin, acted alone. The presidential commission also found that Jack Ruby, the nightclub owner who murdered Oswald on live national television, had no prior contact with Oswald.

According to the report, the bullets that killed President Kennedy and injured Texas Governor John Connally were fired by Oswald in three shots from a rifle pointed out of a sixth-floor window in the Texas School Book Depository. Oswald’s life, including his visit to the Soviet Union, was described in detail, but the report made no attempt to analyze his motives.

Cross posted from The Stars Hollow Gazette

While Iowa Attorney General Tom Miller and his merry band of AG sell outs push for an agreement to settle the mortgage fraud, it looks like California Attorney General, Kamala Harris, is sticking to her plan to hold the worst of the abusers feet to the fire.

The Miller agreement, which is also being backed by US Attorney General Eric Holder, could result in an even smaller settlement than the $25 million and would still leave the banks open to legal claims in the states that do not sign on to the agreement. While California is the state with the largest number of foreclosures, not signing onto the agreement would mean that homeowners would have to wait longer for relief but, as AG Harris has stated, it “would allow too few California homeowners to stay in their homes…. After much consideration, I have concluded that this is not the deal California homeowners have been looking for.”

Ms. Harris has been under considerable pressure from the Obama administration, who has considered her a replacement for Eric Holder should Obama be reelected. However. many community organizations, unions and liberal groups have urged to her not to sign on to the Miller agreement unless there is a larger monetary settlement or, that failing, the states are allowed to prosecute the banks for crimes they may have committed. Neither of those two stipulations appears to have happened, nor are they likely.

Along with New York’s Eric Schneiderman, Delaware’s Beau Biden, Nevada’s Catherine Cortez Masto and a couple of other state attorney generals, Ms. Harris’s position is good policy for the state, as well as, good politics for her. She has stood by the people who put her in office, the people she will need to support her should she run for governor or the US Senate. We could use a few like her in that body.

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future

Find the past “On This Day in History” here.

November 28 is the 332nd day of the year (333rd in leap years) in the Gregorian calendar. There are 33 days remaining until the end of the year.

On this day in 1970, George Harrison’s “My Sweet Lord” is released.

Cross posted from The Stars Hollow Gazette

Color me shocked. After the sexual harassment allegations and aggressive proselytizing toward non-Christians, the US Air Force Academy has decided that part of its duty in educating future officers is the teach them to defend the Constitution and that includes the First Amendment clause guaranteeing freedom of religion.

Cadets gather for the dedication ceremony of the Air Force Academy’s Cadet Chapel Falcon Circle worship center this spring. The center serves cadets whose religions fall under the broad category of “Earth-based.” (Jerilee Bennett / The Gazette / May 3, 2011)

Officials say an $80,000 Stonehenge-like worship center underscores a commitment to embrace all religions.

Reporting from Colorado Springs, Colo.-

In the still of a cold November evening, a small gathering of pagans, led by two witches, begins preparations for the coming winter solstice. But these are not just any pagans, and this is not just any setting. They are future officers of the United States Air Force practicing their faith in the basement of the Air Force Academy’s cadet chapel.

Their ranks are slim. According to the academy’s enrollment records, only three of 4,300 cadets identified themselves as pagans, followers of an ancient religion that generally does not worship a single god and considers all things in nature interconnected. [..]

Witches in the Air Force? Chaplain Maj. Darren Duncan, branch chief of cadet faith communities at the academy, sighs. A punch line waiting to happen, and he’s heard all the broom jokes. [..]

“We’re here to accommodate all religions, period,” Duncan says. The building of the Cadet Chapel Falcon Circle on the hilltop, he says, is no different from the past conversion of chapel rooms into worship spaces that serve this year’s 11 Muslim, 16 Buddhist and 10 Hindu cadets. There are also 43 self-identified atheist cadets whose beliefs, or lack of them, Duncan says are also to be respected.

“It is very nice to have our own space,” says Cadet 1st Class Nicole Johnson, a 21-year-old senior from Florida who became a pagan after entering the academy. [..]

In addition to providing worship space, new policy dictates that all cadets take courses in understanding the religions of those who may someday fall under their command. Recently he’s fielded calls from West Point and Annapolis about replicating the Air Force’s efforts. [..]

Back at the solstice preparations, with glue guns drawn and takeout pizza within easy reach, the pagan cadets decorated yule logs with bits of ribbon and glitter. Yule logs, whose ritual burning symbolizes faith in the reappearance of the sun, will be displayed alongside the Christmas trees and menorahs in next month’s crowded religious calendar at the academy.

And though Johnson acknowledges that her beliefs are often misunderstood, she says she has taken no serious grief from other cadets, save occasional questions about whether pagans dance naked (she doesn’t) or whether she can cast a spell on commanding officers (she wouldn’t even if she could).

Do as you will, but harm no one. Wiccan Rede

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future

Find the past “On This Day in History” here.

November 27 is the 331st day of the year (332nd in leap years) in the Gregorian calendar. There are 34 days remaining until the end of the year.

On this day in 1703, a freak storm over England, that had begun around November 14, peaks.

The unusual weather began on November 14 as strong winds from the Atlantic Ocean battered the south of Britain and Wales. Many homes and other buildings were damaged by the pounding winds, but the hurricane-like storm only began doing serious damage on November 26. With winds estimated at over 80 miles per hour, bricks were blown from some buildings and embedded in others. Wood beams, separated from buildings, flew through the air and killed hundreds across the south of the country. Towns such as Plymouth, Hull, Cowes, Portsmouth and Bristol were devastated.

However, the death toll really mounted when 300 Royal Navy ships anchored off the country’s southern coast-with 8,000 sailors on board-were lost. The Eddystone Lighthouse, built on a rock outcropping 14 miles from Plymouth, was felled by the storm. All of its residents, including its designer, Henry Winstanley, were killed. Huge waves on the Thames River sent water six feet higher than ever before recorded near London. More than 5,000 homes along the river were destroyed.

Eddystone Lighthouse is on the treacherous Eddystone Rocks, 9 statute miles (14 kilometres) south west of Rame Head, United Kingdom. While Rame Head is in Cornwall, the rocks are in Devon.

The current structure is the fourth lighthouse to be built on the site. The first and second were destroyed. The third, also known as Smeaton’s Tower, is the best known because of its influence on lighthouse design and its importance in the development of concrete for building. Its upper portions have been re-erected in Plymouth as a monument.

The first lighthouse on Eddystone Rocks (first picture above) was an octagonal wooden structure built by Henry Winstanley. Construction started in 1696 and the light was lit on 14 November 1698. During construction, a French privateer took Winstanley prisoner, causing Louis XIV to order his release with the words “France is at war with England, not with humanity”.

The lighthouse survived its first winter but was in need of repair, and was subsequently changed to a dodecagonal (12 sided) stone clad exterior on a timber framed construction with an Octagonal top section as can be clearly seen in the later drawings or paintings, one of which is to the left. This gives rise to the claims that there have been five lighthouses on Eddystone Rock. Winstanley’s tower lasted until the Great Storm of 1703 erased almost all trace on 27 November. Winstanley was on the lighthouse, completing additions to the structure. No trace was found of him.

Welcome to the Health and Fitness weekly diary which is cross-posted from The Stars Hollow Gazette. It is open for discussion about health related issues including diet, exercise, health and health care issues, as well as, tips on what you can do when there is a medical emergency. Also an opportunity to share and exchange your favorite healthy recipes.

Questions are encouraged and I will answer to the best of my ability. If I can’t, I will try to steer you in the right direction. Naturally, I cannot give individual medical advice for personal health issues. I can give you information about medical conditions and the current treatments available.

You can now find past Health and Fitness News diaries here and on the right hand side of the Front Page.

The HIV virus may be about to become a new weapon in the fight against cancer as initial tests have shown it can drastically minimize and even help cure the most common form of leukemia.

A research team, led by Dr. Carl June working out of the Abramson Cancer Center at the University of Pennsylvania, has been experimenting with using a harmless version of the HIV virus combined with genetically modified white blood cells as a new way to fight cancer. The cells are taken from patients and modified with new genes that make them target cancer cells, but just as importantly, they can also multiply once injected allowing them to scale up as a small army inside the body.

The results have surprised everyone. These modified cells have acted like serial killers, multiplying and killing all of the cancer cells in two patients, while reducing them by 70% in a third. The equivalent of five pounds of cancer cells has disappeared from each patient. More good news stems from the fact that the modified cells remain in the body and have been seen to reactivate and kill new cancer cells as long as 12 months after they were first injected.

h/t digby and she notes:

Amazing. And it’s even more of a miracle that this research was done at all:

   It’s important to note that this small trial involving just three patients was lucky to go ahead at all. The study was rejected by pharamceutical companies and the National Cancer Institute. It was only through a grant awarded by the Alliance for Cancer Gene Therapy that these patients received the treatment. We suspect the next trial will have more than enough interest, and therefore money, to go ahead.

If there’s enough money in it.

From the depths of the deepest hell comes some hope.

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future

Find the past “On This Day in History” here.

November 26 is the 330th day of the year (331st in leap years) in the Gregorian calendar. There are 35 days remaining until the end of the year.

On this day in 1942, Casablanca, a World War II-era drama starring Humphrey Bogart and Ingrid Bergman, premieres in New York City; it will go on to become one of the most beloved Hollywood movies in history.

n the film, Bogart played Rick Blaine, a former freedom fighter and the owner of a swanky North African nightclub, who is reunited with the beautiful, enigmatic Ilsa Lund (Bergman), the woman who loved and left him. Directed by Michael Curtiz, Casablanca opened in theaters across America on January 23, 1943, and was nominated for eight Academy Awards, including Best Actor for Bogart. It took home three Oscars, for Best Picture, Best Director and Best Adapted Screenplay. The film featured a number of now-iconic quotes, including Rick’s line to Ilsa: “Here’s looking at you, kid,” as well as “Round up the usual suspects,” “Louis, I think this is the beginning of a beautiful friendship” and “Of all the gin joints in all the towns in all the world, she walks into mine.”