This is INCREDIBLE stuff on its face, even more incredible is the fact that there is no national outrage over this! Where are the people’s representatives?
All you pin heads who were screaming about AIG executives getting bonus money after bailout funds were distributed need to wake up! That meaningless menagerie was just that – smoke and mirrors.
You want a real reason to be outraged – this is it!
I was at a dinner last night (3/31/09) in Washington, D.C.. sitting next to me was a banker who was the Chair and CEO of one of the ten largest banking holding companies in the United States. They have $250 billion in assets, no bad debt of which they are aware, did not engage in credit default swaps, they have no sub-prime mortgages, and they don’t need any government assistance.
He informed me that the FDIC and The Treasury came to him and said ‘if you don’t issue a special class of stock just for us, which we can borrow, we will audit you publicly – it will cost you millions in employee time and bad publicity and in lost business. That’s your choice.’
Isn’t that extortion?
This successful banker begged the federal government to let him run his bank. Begged his board of directors to let him tell the FDIC to ‘go take a hike.’
The board caved, they issued a special class of stock, Hank Paulson bought the special class of stock (2% of the company’s stock). That was September…
Come March (knock, knock) Sheila Bair comes knocking: ‘we own 2% of your stock, and here’s how you are going to structure your corporation’
So, A, if this story is true, and I have no reason to believe it is not true, this is extortion. Which is, B, a crime, and C, we have a 2% share owner of non-voting stock now trying to control management.
Stossel: Is this the banker that gives out copies of Atlas Shrugged ? The charity that does that?
Napolitano: John, you would have been very comfortable at this dinner party…
Stossel: Yes, I would have.
FF to 9:20 of the first video segment to see a replay of this incredible discussion..