Economy News

Secret Banking Cabal Emerges From AIG Shadows: David Reilly

David Reilly |  The idea of secret banking cabals that control the country and global economy are a given among conspiracy theorists who stockpile ammo, bottled water and peanut butter. After this week’s congressional hearing into the bailout of American International Group Inc., you have to wonder if those folks are crazy after all. Wednesday’s hearing [...]

Pentagon backtracks after Gates ‘admits’ Blackwater operating in Pakistan

Daniel Tencer | The Pentagon has gone into damage control mode after Defense Secretary Robert Gates appeared to confirm that security contractor Blackwater is operating in Pakistan. The admission, quickly denied by Defense Department officials, has set fire to long-simmering rumors inside Pakistan about the involvement of for-profit contractors in the war against the Taliban. [...]

Geithner’s Fed Told AIG to Limit Swaps Disclosure

Hush Son |  The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show. AIG said in a draft of a regulatory filing that the [...]

Mark Pittman, Reporter Who Foresaw Subprime Crisis, Dies at 52

Bob Ivry | Nov. 28 (Bloomberg) – Mark Pittman, the award-winning investigative reporter whose fight to open the Federal Reserve to more scrutiny led Bloomberg News to sue the central bank and win, died Nov. 25 in Yonkers, New York. He was 52. Pittman suffered from heart-related illnesses. The precise cause of his death wasn’t known, [...]

Fed Beaten: Bill To Audit Federal Reserve Passes Key Hurdle

Ryan Grim |  In an unprecedented defeat for the Federal Reserve, an amendment to audit the multi-trillion dollar institution was approved by the House Finance Committee with an overwhelming and bipartisan 43-26 vote on Thursday afternoon despite harried last-minute lobbying from top Fed officials and the surprise opposition of Chairman Barney Frank (D-Mass.), who had [...]

UN climate chief: Deal must be legally enforceable

Arthur Max | AP Developing countries don’t trust wealthy nations’ promises that they will help them meet the challenges of climate change, the U.N.’s top climate official said Monday, adding that means any new global warming deal must have legal force. The legal status of an agreement and whether nations will be sanctioned for failing to [...]

Dollar loses reserve status to yen & euro

Paul Tharp | Ben Bernanke‘s dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency. Over the last three months, banks put 63 percent of [...]

UPDATE 1-PIMCO CEO sees no return to pre-crisis system

* Weaker U.S. dollar is part of global rebalancing * Certain global currencies will overappreciate (Updates with comments on currencies, emerging markets) Pav Jordan and Wojtek Dabrowski | TORONTO, Oct 9 (Reuters) – Mohamed El-Erian, the chief executive of bond giant PIMCO, said on Friday the global economic system will not likely reset to [...]

Federal Reserve Admits Hiding Gold Swap Arrangements, GATA Says The Federal Reserve System has disclosed to the Gold Anti-Trust Action Committee Inc. that it has gold swap arrangements with foreign banks that it does not want the public to know about. The disclosure, GATA says, contradicts denials provided by the Fed to GATA in 2001 and suggests that the Fed is indeed very [...]

Four Apparent Suicides/Deaths in 48 Hours – CEO-Financiers-Fundraiser

Rockefeller & Co’s CEO committed suicide: report (Reuters) – James McDonald, chief executive officer of investment management firm Rockefeller & Co, committed suicide on Sunday in Massachusetts, the Wall Street Journal said, citing people familiar with the matter. – Read More Newport Beach financier Danny Pang dies at 42 (LATimes) – Newport Beach financier Danny [...]

UN Says New Currency Is Needed to Fix Broken ‘Confidence Game’

Jonathan Tirone |  The dollar’s role in international trade should be reduced by establishing a new currency to protect emerging markets from the “confidence game” of financial speculation, the United Nations said. UN countries should agree on the creation of a global reserve bank to issue the currency and to monitor the national exchange rates [...]

As Obama Golfs with UBS CEO Days After Firm Avoids Criminal Prosecution, UBS Whistleblower Given 40-Month Jail Term  Video link from Democracy Now On the first day of his vacation in Martha’s Vineyard, President Obama spent five hours golfing with UBS executive Robert Wolf, an early financial backer of Obama’s presidential campaign. As the pair teed off, another UBS banker, Bradley Birkenfeld, had just been handed a forty-month prison sentence after pleading [...]

Central Bankers Symposium this weekend in Jackson Hole, Wyoming

James Quinn | Federal Reserve chairman Ben Bernanke is set to meet with central bank governors from Italy, France and Japan at the annual gathering of at the Kansas City’s Federal Reserve’s annual symposium. The key question to be addressed at the weekend meeting is how the US will be able to bring an [...]

China’s CIC set to invest in U.S. mortgages

George Chen | China’s $200 billion sovereign wealth fund, which lost big on its ill-timed 2007 Morgan Stanley and Blackstone bets, plans to invest up to $2 billion in U.S. mortgages as it eyes a property market rebound, two people with direct knowledge of the matter said Monday. China Investment Corp plans to soon [...]

AIG Posts $1.82 Billion Profit, First Since 2007

Hush Son and Andrew Frye | American International Group Inc., the insurer rescued by the U.S. government, reported its first profit in seven quarters on narrowing investment losses and a rebound in the value of some derivatives. The stock gained 20 percent in New York trading. Second-quarter net income of $1.82 billion, or $2.30 [...]

Government by Goldman Sachs

Rolling Stone: The Great American Bubble Machine 1 of 5

Another New Study Challenges Climate Change ‘Orthodoxy’

Patrick Goodenough | Virtually all changes in global atmospheric temperatures in the late 20th century were the result of nature rather than human activity, according to a new peer-reviewed study, one of whose authors predicted Friday was “sure to cause a stir.” “It goes against the orthodoxy,” said climate scientist Chris de Freitas of [...]