Fed Pumps Further $630 Billion Into Financial System

Sept. 29 (Bloomberg) — The Federal Reserve will pump an additional $630 billion into the global financial system, flooding banks with cash to alleviate the worst banking crisis since the Great Depression.

The Fed increased its existing currency swaps with foreign central banks to $620 billion from $290 billion to make more dollars available worldwide. The Term Auction Facility, the Fed’s emergency loan program, will expand to $450 billion from $150 billion. The European Central Bank, the Bank of England and the Bank of Japan are among the participating authorities.

The Fed’s expansion of liquidity, the biggest since credit markets seized up last year, comes as Congress prepares to vote on a $700 billion bailout for the financial industry. The crisis is reverberating through the global economy, forcing European governments to rescue four banks over the past two days alone.

Read moreFed Pumps Further $630 Billion Into Financial System

World War III

FIGHTER jets, infantry troops, destroyers and submarines will converge on Wales next month for one of the largest military exercises of all time.

The two-week exercise – codenamed Joint Warrior – is designed to recreate a scenario in which Britain and other sovereign nations go to war against a “state-sponsored terrorist movement” – using a vast array of lethal modern weapons.

Taking place between October 6 and October 16, it will provide coordinated training for all three UK Armed Services, plus forces from EIGHT allied nations.

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FDIC Announces Citigroup to Buy Wachovia

Citigroup has agreed to buy Wachovia bank in a deal brokered by the Federal Deposit Insurance Corporation to avoid another major corporate failure in the midst of the ongoing financial crisis.

The FDIC announced the deal on its Web site this morning. No price for the transaction was included in the announcement. But the FDIC said that the deal hinged on a loss sharing arrangement between Citigroup and the FDIC, the agency responsible for insuring bank deposits.

Wachovia has been saddled by mortgage-related losses. Under the terms of the deal, Citigroup will absorb up to $42 billion of losses on a $312 billion pool of loans. The FDIC will be responsible for any losses beyond that, but was given $12 billion in Citigroup preferred stock and warrants in return for that guaranty.

The Wachovia purchase is the second major bank buyout orchestrated by the FDIC in the last week. The agency also helped arrange the sale of the failed Washington Mutual to J.P. Morgan Chase.

Read moreFDIC Announces Citigroup to Buy Wachovia

Fortis Gets EU11.2 Billion Rescue From Governments

Sept. 29 (Bloomberg) — Fortis, the largest Belgian financial-services firm, received an 11.2 billion-euro ($16.3 billion) rescue from Belgium, the Netherlands and Luxembourg after investor confidence in the bank evaporated last week.

Belgium will buy 49 percent of Fortis’s Belgian banking unit for 4.7 billion euros, while the Netherlands will pay 4 billion euros for a similar stake in the Dutch banking business, the governments said in a statement late yesterday. Luxembourg will provide a 2.5 billion-euro loan convertible into 49 percent of Fortis’s banking division in that country.

Fortis is the largest European firm so far caught up in the global financial crisis that drove Lehman Brothers Holdings Inc. into bankruptcy two weeks ago and prompted U.S. President George W. Bush to seek a $700 billion bank rescue package. Fortis dropped 35 percent last week in Brussels trading on concern the company would struggle to replenish capital depleted by the 24.2 billion- euro takeover of ABN Amro Holding NV units and credit writedowns.

Read moreFortis Gets EU11.2 Billion Rescue From Governments

Rep. Marcy Kaptur warns: There are domestic enemies to the Republic


Photo:
Perpetrators of the greatest financial crime in history celebrating their fraud against the American people.

Rep. Marcy Kaptur (D-OH) warns the American people about Constitutional enemies of the Republic and the fraudulent trillion(s) dollar bailout:

“My message to the American people don’t let Congress seal this deal. High financial crimes have been committed.”

“The normal legislative process has been shelved. Only a few insiders are doing the dealing, sounds like insider trading to me. These criminals have so much political power than can shut down the normal legislative process of the highest law making body of this land.”

“We are Constitutionally sworn to protect and defend this Republic against all enemies foreign and domestic. And my friends there are enemies.”

“The people pushing this deal are the very ones who are responsible for the implosion on Wall Street. They were fraudulent then and they are fraudulent now.”

Read moreRep. Marcy Kaptur warns: There are domestic enemies to the Republic

Bailout failure will cause US crash

The bailout has already failed, because it cannot not fail. Now nobody will laugh anymore at Ron Paul who predicted all of this chaos a long time ago.

Do you remember this article? Fortis Bank Predicts US Financial Market Meltdown Within Weeks
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The US stock market could suffer a devastating crash with shares losing a third of their value this week if Hank Paulson’s financial bailout plan fails, US Treasury officials have warned.

The financial system could face a meltdown of 1929 proportions unless US politicians succeed in their efforts for a $700bn rescue scheme, experts added.

The warning came as Republicans and Democrats met in Washington for a rare weekend debating session to attempt to seal agreement on the contentious plan, aimed at preventing a long-lasting recession in the US.

Officials close to Paulson are privately painting a far bleaker portrait of the fragility of the global economy than that advanced by President George W Bush in his televised address last week.

One Republican said that the message from government officials is that “the economy is dropping into the john.” He added: “We could see falls of 3,000 or 4,000 points on the Dow [the New York market that currently trades at around 11,000]. That could happen in just a couple of days.

“What’s being put around behind the scenes is that we’re looking at 1930s stuff. We’re looking at catastrophe, huge, amazing catastrophe. Everybody is extraordinarily scared. It’s going to be really, really nasty.”

Read moreBailout failure will cause US crash

September 15, 2008 – Bush: Economy strong enough to handle turmoil

How can anyone trust Bush and Paulson with a $ 700.000.000.000 bailout?
They either lie every time they open their mouth or they have set a new world record for unlimited ignorance.

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WASHINGTON -The Bush administration signaled strongly today that troubled Wall Street should not expect more rescues from Washington.

Treasury Secretary Henry Paulson declared that the current turmoil in markets and financial institutions ultimately will “make things better.”

By Associated Press
Monday, September 15, 2008

Source: Boston Herald

Rep. Michael Burgess: “We Are Under Martial Law”

Rep. Michael Burgess (R-TX) reports from the floor of the House that the Republicans have been cut out of the process and called unpatriotic for not blindly supporting the fraudulent bailout. He says the only debate has been about what talking points to use on the American people. The most ominous revelation is when he claims the Speaker has declared martial law.

“I have been thrown out of more meetings in this capital in the last 24 hours than I ever thought possible, as a duly elected representative of 825,000 citizens of north Texas.” Said Congressman Burgess.

Burgess asks the Speaker of the House to post the bailout bill on the internet for at least 24 hours instead of passing the largest piece of legislation in US financial history in the “dark of night.”

The most frightening part of Rep. Burgess’ one-minute floor speech is when he says, “Mr. Speaker I understand we are under Martial Law as declared by the speaker last night.”

By: D. H. Williams @ 4:20 PM – EST
September 28th, 2008

Source: Daily Newscaster

Belgian, Dutch Central Banks Seek Solution for Fortis

Sept. 28 (Bloomberg) — Discussions between European, Dutch and Belgian officials on the future of Fortis, Belgium’s largest financial-services firm, carried into the evening as they sought a “solution” for the beleaguered bank.

Dutch central bank chief Nout Wellink and Finance Minister Wouter Bos went to Brussels for talks with the Belgian government and regulators. European Central Bank President Jean-Claude Trichet met with Belgian Prime Minister Yves Leterme and Finance Minister Didier Reynders today.

Fortis fell a record 20 percent in Brussels trading two days ago on concern the firm would struggle to raise the 8.3 billion euros ($12.1 billion) it’s seeking to bolster reserves. The bank said Sept. 26 its financial position is “solid,” and replaced interim Chief Executive Officer Herman Verwilst with Filip Dierckx, who heads the banking unit. Managers and government officials are considering a possible sale of part or all of the bank, the Wall Street Journal reported, citing unidentified people familiar with the situation.

“Fortis failed to restore confidence on its own and that can only be done now with the help of the regulatory institutions or rivals,” said Corne van Zeijl, a senior portfolio manager at SNS Asset Management in Den Bosch, the Netherlands, who oversees about $1.1 billion, including Fortis shares.

Fortis has fallen 71 percent this year in Brussels, the second-worst performance among the 69 companies on the Bloomberg Europe Banks and Financial Services Index, cutting the lender’s market capitalization to 12.2 billion euros ($17.8 billion).

Read moreBelgian, Dutch Central Banks Seek Solution for Fortis

U.K. to Protect Bradford & Bingley; BBC Reports Nationalization

Sept. 28 (Bloomberg) — The U.K. government will act to protect Bradford & Bingley Plc customers, Chief Whip Geoff Hoon said after the British Broadcasting Corp. reported the country’s biggest lender to landlords will be taken over by the state.

Prime Minister Gordon Brown and Chancellor of the Exchequer Alistair Darling “have worked right through this weekend to sort out the problems we’re facing,” Hoon, a parliamentary officer, told Sky News today. “I’m confident that in due course there will be a statement from the Treasury about Bradford & Bingley. We will act to ensure that the interests of depositors are properly protected.”

The government will take control of Bradford & Bingley, whose shares have tumbled 93 percent this year, the BBC reported on its Web site, without saying where it got the information. The Treasury and Financial Services Authority will negotiate with banks interested in buying parts of the Bingley, England-based bank, the BBC said. Possible buyers include Banco Santander SA, HSBC Holdings Plc and Barclays Plc, the report said.

Read moreU.K. to Protect Bradford & Bingley; BBC Reports Nationalization