RANDOMLetters Thoughts About Frankenbanking
June 15 - 28, 2012
Serving the Seven Cities of the Harbor Area
Oops…! J.P. Morgan made a bad bet and it’s looking like it will cost $5 billion…(at least). That’s what happens when a bank decides to take all of its investments and offset them in a one-time-put-allyour-money-on-black-roll-thewheel-Vanna-package deal—a task undertaken (badly) by the official fall guy—aka the “London Whale.” Had he succeeded, we the schleppers of the earth wouldn’t have heard squat. Meanwhile, whale man would have received
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a tidy bonus indeed (read: zillions of pounds). I bet he was peeing his pants as he bought up his massive positions, at last able to afford that portable pool for his summer cottage. Oops. He failed. Bad bet, and suddenly J.P. Morgan CEO Jamie Dimon is saying “Oh crap!” (with a knowing, insider grin). Not because a $5 billion loss really matters to J. Dimon. Ya win some, ya lose some, right? What’s really bothering them is that normal people (the 99% who don’t have direct access to God), find it repulsive and worse—completely freaky—to lose $5 billion. Call me naïve, but
I tend to think the same. To J.P. Morgan the peons (i.e. you and me) don’t get it. It’s mathematics… It’s logic… Sure, a $5 billion loss sounds impressive, but that’s because we don’t all share the inner wisdom of world class, übersmart bankers!!! We’re stuck in our ridiculous world where $1,500 is the difference between paying our kid’s preschool tuition or not. It reminds me…About ten years ago some very smart men working for Bush decided to create a trading desk for terrorist event futures. Brilliant! Capture the wisdom of markets to establish the probability of More Letters/ to p. 21
from p. 7
Bank Regulations Needed
to see the video of the Long Beach City Council proceeding and skip to the 1:25:00 mark.) In reply to Walker’s outburst: It is established case law that, “The most elementary conceptions of justice and public policy require that the wrongdoer shall bear the risk of the uncertainty which his own wrong has created.” The U.S. Treasury’s Office of Thrift Supervision noted in 2010 that, “The FBI estimates that 80 percent of all mortgage fraud involves collaboration or collusion by industry insiders.” This confirms what one of the country’s top fraud experts, William K. Black, professor of economics and law and senior regulator during the Savings and Loan crisis in 1980s, has said for years. Black said that it was fraud by the big banks—more than anything done by the little guy—that caused the financial crisis. The lenders have proven time and again that they cannot be simply left to their own devices. Do I even need to mention the $2 billion-plus lost by J. P. Morgan with no accountability? Foreclosures and bankruptcies have always been with us, but never in the epidemic proportions that we are finding today. The bankers cannot possibly expect us to believe that millions of families responsible enough to want to own their own home to care for their families were simply being “irresponsible deadbeats.” Walker stated that the homeowners had rights when they signed the note and deed of trust. Can I see a show of hands for those who were allowed to negotiate the terms? Now, can I see a show of hands of those who are homeless now? Often the argument by our officials and bankers has been that the home buyer has legal recourse. We filed a lawsuit in 2007 and we have yet to have our day in court. We are out-financed by the banks who have unlimited resources. Thus far, we have invested more than $300,000 trying to save our home over and above our principle mortgage payments. Let me outline one of the reasons why lenders need regulations: In 2009, Time magazine named Angelo Mozillo one of the “25 people to blame for the financial crisis.” CNN
named Mozilo as one of the “Ten Most Wanted Culprits” of the 2008 financial collapse in the United States. Countrywide has made many settlements within the past five years due to their fraud. Following is a list of settlements that not only acknowledge illegal behavior, but serve as evidence that the home buyers were not the perpetrators of this fraud: 10/6/2008: $8.68 billion dollar settlement with Countrywide for the State of California—relief for home buyers—$0 to $100; 8/3/2010: $600 million dollar settlement with Countrywide Financial with the New York City Pension Funds—relief for home buyers—0; 10/15/2010: $67.5 million settlement with the SEC— relief for homebuyers—0; 2/2/2011: Former Countrywide executives make a $6.5 million settlement with California—relief for homebuyers—0; 6/29/2011: BofA settles with 22 institutional investors for $14 billion—relief for homebuyers—0; 12/21/2011 – Countrywide settles bias suit for $335 million dollars for discrimination—relief for homebuyers—to be determined. Now we have a new settlement on the books. The $25 billion 48-state settlement! You know, the one where those who had been wrongly foreclosed upon were going to get as much as $2,000 each? Well, it seems our governor has budget problems… so the relief to the home buyers looks like it’s going to be (you guessed it) ZERO! With all the settlements and court cases regarding bank fraud still pending, the lenders are still allowed to foreclose and remove families from their homes. This is making countless families homeless and destroying the moral of millions of American citizens. Former California treasurer and Democrat, Phil Angelides was quoted in the May 14 edition of Newsweek saying, “It is perplexing at best, and it’s deeply troubling at worst” in regards to the lack of investigations and prosecutions in this housing debacle. The public needs to stand up before it is too late and have lost our rights completely.
Community Alerts
Draft Port Master Plan Amendment No. 27 A public hearing on draft amendment No. 27 will be held at 8:30 a.m. June 21, during the regularly scheduled meeting of the Los Angeles Board of Harbor Commissioners. Written comments may be submitted to the Port of Los Angeles Planning and Economic Development Division 425 S. Palos Verdes St., San Pedro, CA 90731 or emailed to mcham@portla.org. Deadline for comments is 5 p.m., Thursday, June 21. The Draft Port Master Plan Amendment No.21 is available on the Port of Los Angeles website, www.portoflosangeles.org and available for public inspection at the Port of Los Angeles Planning and Economic Division. Venue: Harbor Administration Building Location: 425 S. Palos Verdes St., San Pedro NOAA Eelgrass Public Meetings The National Oceanic and Atmospheric Administration will hold its Southern California public meeting on eelgrass preservation at 10 a.m. June 26 in Long Beach. Eelgrass warrants a strong protection strategy because of the important biological, physical, and economic values it provides. NOAA Fisheries Services developed this policy to establish and achieve a goal of protecting this resource and its functions, including spatial coverage and density of eelgrass beds. Details: (562) 980-4006 Venue: City of Long Beach Council Chambers Location: 545 Ocean Blvd., Long Beach
Public Safety Hearing on Rancho LPG
City Councilman Joe Buscaino has scheduled a hearing on the safety of Rancho San Pedro’s LPG facility and other liquid bulk facilities in the harbor on June 27 at Taper Ave. school from 6-9 p.m. More information about the agenda is not yet available, but as the time draws near, more information should be available by calling the Council office at 310-732-4515. Venue: Taper Ave. School Location: 1824 North Taper Ave., San Pedro Community activists who have been organizing to close down the existing facility will hold a ‘Prep’ Rally in advance at Holy Trinity Parish Center on June 21, 7 p.m., to inform the public about the dangers and urge them to attend the hearing. Sponsored by: San Pedro Peninsula Homeowners United, San Pedro & Peninsula Homeowners Coalition, HT Peace & Justice, Citizens for Responsible & Equal Environmental Protections Venue: Holy Trinity Parish Center Location: 209 North Hanford St. San Pedro Details: (310) 251-7075 and www. hazardsbegone.com