Nemo me impune lacessit

No one provokes me with impunity


No Title of Nobility shall be granted by the United States: And no Person holding any Office of Profit or Trust under them, shall, without the Consent of the Congress, accept of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince, or foreign State.

Article 1, Section 9, Constitution of the United States

If this is the law of the land...why in a republic (little r) and as republicans, do we allow mere POLITICIANS to the right to use a "title of office" for the rest of their lives as if it were de facto a patent of nobility. Because, as republicans, this should NOT be the case...just saying...

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Tuesday, April 19, 2011

Fed Gives $220 Mil to the Housewives of Morgan Stanley Bankers

When a magazine like Rolling Stone has a story like this, there is something terribly wrong with how our medai operates.  According to the story, the wives of 2 Morgan Stanley bankers were given some $220 million dollars by the Federal Reserve.
Waterfall TALF Opportunity. At first glance, Waterfall's haul doesn't seem all that huge — just nine loans totaling some $220 million, made through a Fed bailout program. That doesn't seem like a whole lot, considering that Goldman Sachs alone received roughly $800 billion in loans from the Fed. But upon closer inspection, Waterfall TALF Opportunity boasts a couple of interesting names among its chief investors: Christy Mack and Susan Karches.   Christy is the wife of John Mack, the chairman of Morgan Stanley. Susan is the widow of Peter Karches, a close friend of the Macks who served as president of Morgan Stanley's investment-banking division. 
In the case of Waterfall TALF Opportunity, here's what we know: The company was founded in June 2009 with $14.87 million of investment capital, money that likely came from Christy Mack and Susan Karches. The two Wall Street wives then used the $220 million they got from the Fed to buy up a bunch of securities, including a large pool of commercial mortgages managed by Credit Suisse, a company John Mack once headed. Those securities were valued at $253.6 million, though the Fed refuses to explain how it arrived at that estimate. And here's the kicker: Of the $220 million the two wives got from the Fed, roughly $150 million had not been paid back as of last fall — meaning that you and I are still on the hook for most of whatever the Wall Street spouses bought on their government-funded shopping spree.
Most of the money hasn't been paid back...where is it and why hasn't a media outlet with a higher profile looked into this?  Seriously, this is nearly as much money as was saved in the budget "negotiations" last week.  If this is really happening, someone, a prosecutor, should be looking into just HOW the Fed spent our money.  More importantly, we need someone to look into why it hasn't been paid back.

HT, Thanks for pointing  me to this JP

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