Aug 5, 2014
Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) | Press Release - August 5, 2014: Kansas Business Executive Pleads Guilty to Defrauding TARP Bank
Timothy Fitzgerald, former chief financial officer for a Kansas-based construction holding company, pleaded guilty to conspiring to defraud TARP recipient Bank of Blue Valley in a scheme that cost the bank more than $877,000, announced the Special Inspector General for the Troubled Asset Relief Program.
Read the news release here.
Follow SIGTARP on Twitter @SIGTARP, here.
To report allegations of fraud, waste, abuse, mismanagement, or misrepresentations involving the taxpayer-funded Troubled Asset Relief Program, call (877) SIG-2009 or send confidential information to SIGTARP via an online Hotline form.
Audit reports and quarterly reports to Congress about the management and transparency of TARP programs are posted here.
SIGTARP welcomes comments and suggestions. You may reach us at the phone number and mailing address below:
Phone: (202) 927-8940
Mail: Office of the Special Inspector General for the Troubled Asset Relief Program
1801 L Street NW
Washington, DC 20220
YouTube | Al Jazeera English - August 5, 2014: Ukraine's civilians fleeing rebel-held Donetsk and one other video | Expert discusses experimental Ebola treatment.
|Ukraine's civilians fleeing rebel-held Donetsk|
One goal of the African leaders' summit in Washington is to build on a strategic relationship that the United States has established in Africa as the continent faces a range of security threats. VOA White House correspondent Luis Ramirez reports.
GATA | THE GATA DISPATCHES - August 5, 2014: Another FT reader got nowhere asking why the gold manipulation story was deleted | Economic data doesn't match declining living conditions, Sprott says.
Another FT reader got nowhere asking why the gold manipulation story was deleted
Our friend and consultant R.M. in the United Kingdom, noting GATA's exchange today with the Financial Times --
-- relates an experience similar to that of our friend R.B. in the U.K., an FT subscriber who for five months prodded the newspaper for an explanation of the newspaper's quick deletion from its Internet site of itsreport about concerns about gold market manipulation. While R.B. eventually got an explanation from the newspaper's customer service office -- that the report was deleted from the FT's Internet site because it was "sensitive" -- that explanation was repudiated today by another newspaper official, who said the FT's customer service office had been "misinformed."
Today's dispatch prompted GATA's friend and consultant R.M., also in the U.K., to relate his own experience trying to get an explanation from the Financial Times. R.M. writes tonight:
"I asked FT customer service onabout the deleted article. On a customer service person responded, saying, 'Our editorial team have confirmed that it was their decision to remove the story.'
"I was assigned a case number: 1152785.
"The customer service person also advised me to email the editors at firstname.lastname@example.org.
"I emailed the editors at email@example.com on and they did not respond.
"I emailed firstname.lastname@example.org again on as a follow-up but they still didn't respond.
"So it looks like the editors ignored my emails. This is disgraceful since my case number was still an outstanding query.
"I have been an FT subscriber in the past but this treatment by the editors, ignoring my emails after I was specifically advised to email them by their customer service representative, indicates that they have contempt for their readers and subscribers and that they serve other, unknown interests."
Well, R.M., treasure that FT case number anyway. It's more than those of us on this side of the ocean can ever get out of the Federal Reserve and Treasury Department.
Economic data doesn't match declining living conditions, Sprott says
Submitted by cpowell on Tuesday, August 5, 2014.
Reviewing last week's markets with Sprott Money News' Jeff Rutherford, Sprott Asset Management CEO Eric Sprott wonders about the disparity between the U.S. government's economic performance data and the country's declining living standards. With continued weakness in incomes and housing and good demand for gold, Sprott says, the days of paper assets are numbered. The interview is 7 1/2 minutes long and it can be heard at the Sprott Money Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
FDIC | Press Joint Release - August 5, 2014: Agencies Provide Feedback on Second Round Resolution Plans of "First-Wave" Filers.
Agencies Provide Feedback on Second Round Resolution Plans of "First-Wave" Filers
Firms Required to Address Shortcomings in 2015 Submissions
The Board of Governors of the Federal Reserve System and the Board of Directors of the Federal Deposit Insurance Corporation announced the completion of reviews of the second round of resolution plans submitted by 11 large, complex banking organizations in 2013. The agencies have issued letters to each of these banking organizations.
In their review of the resolution plans, the agencies noted some improvements from the original plans submitted by these "first-wave filers" in 2012. Among the improvements were the narratives and the attempts to address the five obstacles identified in guidance issued by the agencies in April 2013. These improvements notwithstanding, the agencies have jointly identified specific shortcomings with the 2013 resolution plans that will need to be addressed in the 2015 submissions. The letters to each first-wave filer detail the specific shortcomings of each firm's plan and the expectations of the agencies for the 2015 submission.
The Dodd-Frank Wall Street Reform and Consumer Protection Act requires that certain banking organizations with total consolidated assets of $50 billion or more and nonbank financial companies designated by the Financial Stability Oversight Council for supervision by the Federal Reserve periodically submit resolution plans to the Federal Reserve and the Federal Deposit Insurance Corporation. Each plan, commonly known as a living will, must describe the company's strategy for rapid and orderly resolution in the event of material financial distress or failure of the company. The 11 firms in the first group of filers include Bank of America, Bank of New York Mellon, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street Corp., and UBS.
Overview of Plan Shortcomings
While the shortcomings of the plans varied across the first-wave firms, the agencies have identified several common features of the plans' shortcomings. These common features include: (i) assumptions that the agencies regard as unrealistic or inadequately supported, such as assumptions about the likely behavior of customers, counterparties, investors, central clearing facilities, and regulators, and (ii) the failure to make, or even to identify, the kinds of changes in firm structure and practices that would be necessary to enhance the prospects for orderly resolution. The agencies will require that the annual plans submitted by the first-wave filers on or before, demonstrate that the firms are making significant progress to address all the shortcomings identified in the letters, and are taking actions to improve their resolvability under the U.S. Bankruptcy Code. These actions include:
- establishing a rational and less complex legal structure that would take into account the best alignment of legal entities and business lines to improve the firm's resolvability;
- developing a holding company structure that supports resolvability;
- amending, on an industry-wide and firm-specific basis, financial contracts to provide for a stay of certain early termination rights of external counterparties triggered by insolvency proceedings;
- ensuring the continuity of shared services that support critical operations and core business lines throughout the resolution process; and
- demonstrating operational capabilities for resolution preparedness, such as the ability to produce reliable information in a timely manner.
The agencies are also committed to finding an appropriate balance between transparency and confidentiality of proprietary and supervisory information in the resolution plans. As such, the agencies will be working with these firms to explore ways to enhance public transparency of future plan submissions.
As noted earlier, the agencies will require that the annual plans submitted by the first-wave filers on or before, demonstrate that the firms are making significant progress to address all the shortcomings identified in the letters. Agency staff will work with each of these firms to discuss expected improvements in the resolution plans and the efforts, both proposed and already in progress, to facilitate each firm's preferred resolution strategy.
Based on the review of the 2013 plans, the FDIC Board of Directors determined pursuant to section 165(d) of the Dodd-Frank Act that the plans submitted by the first-wave filers are not credible and do not facilitate an orderly resolution under the U.S. Bankruptcy Code. The Federal Reserve Board determined that the 11 banking organizations must take immediate action to improve their resolvability and reflect those improvements in their 2015 plans. The agencies agreed that in the event that the first-wave filers have not, on or before, submitted plans responsive to the identified shortcomings, the agencies expect to use their authority under section 165(d) to determine that a resolution plan does not meet the requirements of the Dodd-Frank Act.
|Major World Indexes|
Indexes may be real-time or delayed based on exchange requirements.
Sources: SIX Financial Information; WSJ Market Data Group