A HISTORY OF BANK OF AMERICA, HOW IT LOANED BILLIONS OF DOLLARS TO OUTFITS LIKE COUNTRYWIDE WHICH MADE LOANS TO HOME BUYERS WHO THEY KNEW COULD NOT REPAY THEM. BUT THE *REAL* FRAUD BEGAN WHEN THE BANK WENT TO A UNION AND SAID "HERE'S A BUNCH OF MORTGAGES WE WANT YOU TO BUY. THEY'RE AAA-RATED." IN THIS WAY, THE BANKERS WERE STEALING FROM THE POCKETS OF OLD PEOPLE AND RETIREES, WHO ARE NOW "LOOKING AT 30, 40, 50 PERCENT LOSSES." THE SETTLEMENTS WON BY NEW YORK AND NYC AMOUNT TO ONLY A FEW PENNIES ON THE DOLLAR.

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MARCH 22, 2012                                                                                                         Permalink

"Too Crooked to Fail": Matt Taibbi Says Bailouts, Fraud are the Secrets to Bank of America’s Success

In his new article, "Bank of America: Too Crooked to Fail," Rolling Stone reporter Matt Taibbi chronicles the remarkable history of the rise of Bank of America, an institution he says has defrauded "everyone from investors and insurers to homeowners and the unemployed." Taibbi describes how the Bush and Obama administrations have repeatedly propped up the financial institution, which received a $45 billion taxpayer bailout in 2008. Bank of America has also received billions in what could be described as shadow bailouts. The bank now owns more than 12 percent of the nation’s bank deposits and 17 percent of all home mortgages. Taibbi also recounts how fraudulent practices by Bank of America and other companies ravaged pension funds. "Most people think of [the mortgage crisis] as some airy abstraction — you know, bankers ripping off bankers," Taibbi says. "That’s not what it is. It’s bankers stealing from old ladies and retirees." [original includes rush transcript]

Guest:

Matt Taibbi, contributing editor for Rolling Stone. He is the author of five books, most recently, Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America. His latest article in Rolling Stone is titled "Bank of America: Too Crooked to Fail."

MARCH 22, 2012                                                                                                          Permalink

Matt Taibbi on the Explosive Resignation of Goldman Sachs Executive Greg Smith

Financial reporter Matt Taibbi talks about Goldman Sach’s history of denigrating its own clients, as recently highlighted by former Goldman executive Greg Smith’s explosive resignation letter in the New York Times. Decrying what he called Goldman’s "toxic" culture, Smith said bosses at the firm called their clients "muppets" and strove to maximize profits at the expense of client interests, adding: "It makes me ill how callously people talk about ripping their clients off." Goldman Sachs is now reportedly scanning internal emails for the term "muppet" and other evidence that employees referred to clients in derogatory ways. "This gives ... people in the industry, institutional investors, tremendous pause: why would I want to do business with this company if this is their attitude towards me?" says Taibbi. "They’re thinking how much can they get out of me, and not how much money they can make for me." [original includes rush transcript]

Guest:

Matt Taibbi, contributing editor for Rolling Stone. He is the author of five books, most recently, Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America. His latest article in Rolling Stone is titled "Bank of America: Too Crooked to Fail."