Year: 2013

It’s Bank Failure Friday!!! (on Saturday)

And here they are, ordered, and numbered for the year so far.

  1. Central Arizona Bank, Scottsdale, AZ

Full FDIC list

This closing was odd, because it occurred on Tuesday, May 14. The last time we had a bank closing not on a Friday, it was Park Avenue bank in 2010, and it was closed because of fraud.

In this case, it appears that there may be some issues with the bank holding company, Capitol Bankcorp, which has been shedding subsidiaries for the past few years and this might be an issue of cross guaranty issues:

After controlling more than 50 banks at its peak, Capitol Bancorp has reduced its subsidiary count to 12 banks through intra-company mergers and divestitures to outside parties. Primarily, the mergers and sales are designed to raise capital or avert a failure. A failure of any one bank subsidiary could trigger the failure of all banking subsidiaries. Through statute referred to as Cross-Guaranty, the FDIC can demand reimbursement for the cost of a failure against any of Capitol Bancorp’s still open banking subsidiaries. To facilitate the divestitures, the FDIC has issued at least 16 Cross-Guaranty waivers. Some observers may question the cost effectiveness of issuing the waivers.

And here are the credit union closings:

  1. First Kingdom Community Federal Credit Union, Selma, AL

Full NCUA list

The 2nd quarter is showing a lot more activity than the 1st quarter did.

So, here is the graph pr0n with last years numbers for comparison (FDIC only):

This is a Feature, Not a Bug

At Salon, David Dayen observes that it, “Turns out much-hyped settlement still allows banks to steal homes,’ even after the much hyped mortgage settlement.

This is not an oversight.  The Obama administration has aggressively allowed banks to cheat customers an investors since day one.

Basically, they see this as a way of making sure that the banks appear solvent.

See my writings on HAMP. Here is one quote:

Warren asked Geithner repeatedly about HAMP. After several evasions, Geithner said about the banks, “We estimate that they can handle ten million foreclosures, over time… this program will help foam the runway for them.”

By “them”, he means the banks.

By foaming the runway, he means that it allows them to delay writing down bad loans, and continue to extract payments and fees by cheating the public.

The suggestion that this is anything but deliberate policy is simply naive.

This is a Shanda Before the Goyim


A tool to run comparisons

Israel has the highest proportion of its population living in poverty of any OECD nation:

Israel has the highest rate of poverty of all developed countries, according to a report released by the 33-nation Organization for Economic Cooperation and Development (OECD) on Wednesday.

The OECD found that Israel’s poverty rate stands as almost 21%.

It also put Israel at fifth place among countries with the widest gaps between rich and poor, after Chile, Mexico, Turkey and the United States, while Iceland, Slovenia, Norway and Denmark were the most egalitarian societies.

Israel has been practicing Thatcher style economics, even the Labour Party, for the past few decades, which could explain this.

I’m also wondering how much of this number is driven by the growing number of Heridi Jews in Israel. They are about 10% of the population, and are disproportionately: Over half the Heridim live in poverty, and are on government assistance, as versus about 15% of the general population.

Much of this differential is actually an artifact of poverty by choice. Many in this community prefer to remain on the dole, so that they can study Torah.

Of course, there is no requirement for someone not to work in order to study Torah.

Maimonides was a noted doctor, Rashi was a vintner, and the Baal Shem Tov was an inn keeper.

I do not know of anyone of this generation with the chops of those folks. Get a f%$#ing job.

It’s Jobless Thursday!

And the numbers are not great:

The number of people who applied last week for new unemployment benefits surged to the highest level in a month and a half, indicating the U.S. labor market is still not healing fast enough to rapidly bring down the nation’s jobless rate.

Initial jobless claims climbed by 32,000 to a seasonally adjusted 360,000 in the week ended May 11, the Labor Department said Thursday. Economists polled by MarketWatch had expected claims to rise to 330,000 from a revised 328,000 in the prior week.

It should be noted that the 4-week moving average only rose by 1250, and continuing claims fell 4,000.

The Only People Having a Worse Week than the Obama Administration

The Pentagon.

Where they have yet another soldier in charge of a sexual assault prevention office accused of sexual assault, and this time, we have an super-sized the accusations of rape with an accusation of pimping!

An Army sergeant who served as a sexual assault prevention and response coordinator at Fort Hood, Tex., is under investigation for allegations of pandering, abusive sexual contact, assault and maltreatment of subordinates, Pentagon officials said late Tuesday.

………

The noncommissioned officer under investigation had been working as an “equal opportunity adviser and sexual harassment/assault response and prevention program coordinator” with a battalion of troops — about 2,000 soldiers — assigned to the Army’s III Corps at Fort Hood when the allegations surfaced, the Pentagon said in a statement.

The suspect was not identified by name. One official, speaking on the condition of anonymity because no charges have been filed, said the portion of the inquiry related to pandering refers to allegations that the soldier was involved in managing a prostitution operation, perhaps involving a subordinate.

Un-dirty-word believable.

I’m beginning to think the whole  “Convening Authority” structure of military justice, where the commanding officer has unlimited authority to decide whether or not to file charges, and can over the ruling of a court martial, needs to be rethought, and not just for cases of sexual assault.

More Evidence of German Self-Mythologizing

A couple of weeks ago I mentioned that the recent stories about the Germans being poorer than the rest of Europe, and how it was largely bullsh%$?

Well, it appears that it was even more bogus than I had previously thought. You see the difference in household wealth is almost entirely due to difference in household sizes:

Media hype had been generated by the ranking of the countries’ median household wealth results, especially by the fact that:

• Germany was in last place with €51,400.

• Italy and Spain were significantly above France with wealth equal to €173,500 and €182,700 respectively, compared to the French households’ €115,800.

The mean household wealth averages paint a very different picture to current narratives about the relatively wealth of nations in the Eurozone. The relative dispersion in the estimates is much smaller: the German household mean is €195,200, while for France, Italy and Spain it is €233,400, €275,200 and €291,400 respectively. Moreover, Germany climbs six places in the wealth ranking.

As already noted by De Grauwe and Ji (2013), Germany’s position at the bottom of the median ranking is simply due to its large wealth inequality compared with the others. This is confirmed by observing that the concentration of wealth, measured by a Gini index of 0.76, is much higher in Germany, while for France, Italy and Spain the estimate is smaller (0.68, 0.61 and 0.58 respectively).

Household Size Matters

This analysis does not take account of household composition in the various countries. The distribution of household wealth across countries is affected by differences in the demographic characteristics of households (age, education, household size):

• In northern countries, households are generally small, often composed of a single member.

• In the south it is not unusual to find many people, even from different generations (grandparents, parents and children), living together.

The splitting up of household members produces a sort of partition of wealth among the households they generate, as happens when young members exit the household to form a new family.

A simple way to sterilise for household size is to consider per capita averages:

• The per capita wealth figure for Italy and Spain is €108,700, slightly higher than for France (€104,100) and Germany (€95,500).

BTW, do you know one of the reasons that there are more multigenerational households in the Mediterranean Euro nations?

Because the generous social welfare system in Germany allows for generations not to live together. (Things like high quality government subsidized elder care and strong pensions).

So, Now That We Have a Week of “Scandals”………

The Obama administration has come out in favor of a media shield law that they had previously tried to delay and kill:

Under fire over the Justice Department’s use of a broad subpoena to obtain calling records of Associated Press reporters in connection with a leak investigation, the Obama administration sought on Wednesday to revive legislation that would provide greater protections to reporters in keeping their sources and communications confidential.

President Obama’s Senate liaison, Ed Pagano, on Wednesday morning called the office of Senator Charles E. Schumer, Democrat of New York, and asked him to reintroduce a version of a bill that he had pushed in 2009 called the Free Flow of Information Act, a White House official said.

The bill would create a federal media shield law, akin to ones most states already have, giving journalists some protections from penalties for refusing to identify confidential sources in federal law enforcement proceedings, and generally enabling journalists to ask a federal judge to quash subpoenas for their phone records.

………

The top Democrat on the committee, Representative John Conyers of Michigan, noted that he had sponsored a version of the Free Flow of Information Act that passed the House twice when it was under Democratic control. He said he would reintroduce his version, too, and he said he hoped that Republicans — who until recently had called for more aggressive investigations of leaks — would support it.

The version the Obama administration is seeking to revive, however, is the one that was chiefly sponsored by Mr. Schumer, which was negotiated between the newspaper industry and the White House. It was approved by the Senate Judiciary Committee in a bipartisan 15-to-4 vote in December 2009. But while it was awaiting a floor vote in 2010, a furor over leaking arose after WikiLeaks began publishing archives of secret government documents, and the bill never received a vote.

In a statement confirming that he would reintroduce the legislation, Mr. Schumer referred to the controversy over the subpoena of A.P. calling records, saying: “This kind of law would balance national security needs against the public’s right to the free flow of information. At minimum, our bill would have ensured a fairer, more deliberate process in this case.”

So, they are supporting the fake bill that they and Chuck Schumer drew up a while ago in an attempt to kill Conyer’s real reform.

Same sh%$, different day.

Yes, We Have to Get Deeply Involved in the Syrian Civil War

One of the putative “good guys” in Syria has been caught on tape eating a dead soldier’s heart:

A video which appears to show a Syrian rebel taking a bite from the heart of a dead soldier has been widely condemned.

US-based Human Rights Watch identified the rebel as Abu Sakkar, a well-known insurgent from the city of Homs, and said his actions were a war crime.

The main Syrian opposition coalition said he would be put on trial.

The video, which cannot be independently authenticated, seems to show him cutting out the heart.


“I swear to God we will eat your hearts and your livers, you soldiers of Bashar the dog,” the man says, referring to President Bashar al-Assad as he stands over the soldier’s corpse.

Human Rights Watch (HRW) says Abu Sakkar is the leader of a group called the Independent Omar al-Farouq Brigade, an offshoot of the Free Syrian Army (FSA) Al-Farouq Brigades. He insults Alawites, the minority offshoot of Shia Islam to which Mr Assad belongs.

“The desecration and mutilation of a killed person is definitely a war crime,” Peter Bouckaert, emergencies director of Human Rights Watch, told the BBC. “This one particularly disturbing because of the sectarian nature of the language used by Abu Sakkar.

Seriously, does anyone now think that it’s a good idea to choose sides in this clusterf%$#?

Well,. anyone without a history of insanity, or members of the Senate with the last name of McCain, anyway? (But I repeat myself)

Cowardice From Almost Everyone in Washington, DC

John Judis was one of the few people among the punmditocracy who opposed the Iraq war.

On the 10th anniversary of the war he reveals that dozens of people in the military and defense establishment opposed it too, but were afraid to say so:

In the six months before the American invasion of Iraq in March 2003 and the six weeks after the invasion (culminating in George W. Bush’s “Mission Accomplished” speech), I often compared my situation in Washington to that of Jeannette Rankin, the Montana congresswoman and pacifist who voted against entry into both World War I and II.  Not that I would have voted against declaring war in 1941; the comparison was to her isolation, not with her isolationism.

There were, of course, people who opposed invading Iraq—Illinois State Senator Barack Obama among them—but within political Washington, it was difficult to find like-minded foes. When The New Republic’s editor-in-chief and editor proclaimed the need for a “muscular” foreign policy, I was usually the only vocal dissenter, and the only people who agreed with me were the women on staff: Michelle Cottle, Laura Obolensky and Sarah Wildman. Both of the major national dailies—The Washington Post and The New York Times (featuring Judith Miller’s reporting)—were beating the drums for war. Except for Jessica Mathews at the Carnegie Endowment for International Peace, Washington’s thinktank honchos were also lined up behind the war.

………

I found fellow dissenters to the war in two curious places: the CIA and the military intelligentsia. That fall, I got an invitation to participate in a seminar at the Central Intelligence Agency on what the world would be like in fifteen or twenty years. I went out of curiosity—I don’t like this kind of speculation—but as it turned out, much of the discussion was about the pending invasion of Iraq. Except for me and the chairman, who was a thinktank person, the participants were professors of international relations. And almost all of them were opposed to invading Iraq.

In early 2003, I was invited to another CIA event: the annual conference on foreign policy in Wilmington. At that conference, one of the agency officials pulled me aside and explained that the purpose of the seminar was actually to try to convince the White House not to invade Iraq. They didn’t think they could do that directly, but hoped to convey their reservations by issuing a study based on our seminar. He said I had been invited because of my columns in The American Prospect, which was where, at the time, I made known my views opposing an invasion. When Spencer Ackerman and I later did an article on the CIA’s role in justifying the invasion, we discovered that there was a kind of pro-invasion “B Team” that CIA Director George Tenet encouraged, but what I discovered from my brief experience at the CIA was that most of the analysts were opposed to an invasion. (After Spencer’s and my article appeared, I received no more invitations for seminars or conferences.)

I had a similar experience when I talked to Jon Sumida, a historian at the University of Maryland, who specializes in naval history and frequently lectures at the military’s colleges. Sumida told me that most of the military people he talked to—and he had wide contacts—were opposed to an invasion. I confirmed what Sumida told me a year or so later when I was invited to give a talk on the Iraq war at a conference on U.S. foreign policy at Maryland. A professor from the Naval War College was to comment on my presentation. I feared a stinging rebuttal to my argument that the United States had erred in invading Iraq, but to my astonishment, the professor rebuked me for not being tough enough on the Bush administration.

John Judis was right about the war, of course, and so were the people that he talked to.

The difference is that Judis got a whole sh%$ sandwich for telling the truth, and they did not.

On a matter like this, this makes them cowardly punks, and if someone were to call them traitors, I would not object.

H/t Brad Delong.

What Took You So Long?

The guy in charge of Hispanic outreach for the Republican National Committee in Florida has quit and joined the Democratic party, saying that the bigotry is too much to bear:

Friend,

Yes, I have changed my political affiliation to the Democratic Party.

It doesn’t take much to see the culture of intolerance surrounding the Republican Party today. I have wondered before about the seemingly harsh undertones about immigrants and others. Look no further; a well-known organization recently confirms the intolerance of that which seems different or strange to them.

Studies geared towards making – human beings – viewed as less because of their immigrant status to outright unacceptable claims, are at the center of the immigration debate. Without going too deep on everything surrounding immigration today, the more resounding example this past week was reported by several media outlets.

A researcher included as part of a past dissertation his theory that “the totality of the evidence suggests a genetic component to group differences in IQ.” The researcher reinforces these views by saying “No one knows whether Hispanics will ever reach IQ parity with whites, but the prediction that new Hispanic immigrants will have low-IQ children and grandchildren is difficult to argue against.”

I will repeat my question, “What took you so long?”

H/t C&L.

Not Enough Bullets………

It turns out that there is a scam going on at Disney World, wealthy mothers are hiring handicapped people to masquerade as family members to allow their kids to cut in line:

They are 1 percenters who are 100 percent despicable.

Some wealthy Manhattan moms have figured out a way to cut the long lines at Disney World — by hiring disabled people to pose as family members so they and their kids can jump to the front, The Post has learned.

The “black-market Disney guides” run $130 an hour, or $1,040 for an eight-hour day.

“My daughter waited one minute to get on ‘It’s a Small World’ — the other kids had to wait 2 1/2 hours,” crowed one mom, who hired a disabled guide through Dream Tours Florida.

“You can’t go to Disney without a tour concierge,’’ she sniffed. “This is how the 1 percent does Disney.”

The woman said she hired a Dream Tours guide to escort her, her husband and their 1-year-old son and 5-year-old daughter through the park in a motorized scooter with a “handicapped” sign on it. The group was sent straight to an auxiliary entrance at the front of each attraction.

I wonder if moral turpitude is a reason to call in child protective services, because these kids are going to grow up to completely f%$#ed up sociopaths if they stay with those parents.

So Not a Surprise

CNN’s Jake Tapper has discovered that the emails leaked to the press on Benghazi were altered to make the State Department (Hillary Clinton) look worse:

CNN has obtained an e-mail sent by a top aide to President Barack Obama about White House reaction to the deadly attack last September 11 on the U.S. diplomatic compound in Benghazi, Libya, that apparently differs from how sources characterized it to two different media organizations.

The actual e-mail from then-Deputy National Security Adviser for Strategic Communications Ben Rhodes appears to show that whomever leaked it did so in a way that made it appear that the White House was primarily concerned with the State Department’s desire to remove references and warnings about specific terrorist groups so as to not bring criticism to the department.

………

Whoever provided those accounts seemingly invented the notion that Rhodes wanted the concerns of the State Department specifically addressed. While Nuland, particularly, had expressed a desire to remove mentions of specific terrorist groups and CIA warnings about the increasingly dangerous assignment, Rhodes put no emphasis at all in his e-mail on the State Department’s concerns.

The context of the e-mail chain is important.

Different officials from different agencies were going through iterations of talking points for Congress.

As the inestimable Marcy Wheeler notes, this has David Petreaus’ finger prints all over it:

It has taken three days for the bleating press corps in DC to wade through the roll-out of Benghazi talking point emails and realize that the tension behind the emails — as has been clear from just days after the attack — is that Benghazi was really a CIA, not a State, Mission, and therefore CIA bears responsibility for many of the security lapses. So State, in making changes to the emails, was making sure it didn’t get all the blame for CIA’s failures.

………

They might have also said, “since February, people tied to CIA’s mission have twice been harassed by militia members, suggesting our OpSec was so bad they knew we were in Benghazi.”

………


They might also have said that the “trusted” militia, February 17 Brigade, trained by David Petraeus’ CIA, whose career legacy is based on false claims of successfully training locals, appears to have allowed the attack to happen (and, critically, delayed CIA guards from heading to the State mission to help).

Note that Congressman Frank Wolf is just now showing some interest in why CIA’s vetting of the militia central to the mission’s defense was so bad. Maybe if CIA had included that detail in their self-serving initial talking points, Congress would have turned to this issue more quickly, particularly since we’re currently training more potentially suspect militias in Syria.

In other words, the story CIA — which had f%$#ed up in big ways — wanted to tell was that it had warned State and State had done nothing in response (which, perhaps unsurprisingly, is precisely the story Darrell Issa and Jason Chaffetz are trying to tell). The truthful story would have been (in part) that CIA had botched the militia scene in Benghazi, and that had gotten the Ambassador killed.

………

David Petraeus, who tried and failed to get his preferred spin of the attack in Benghazi accepted by the Obama Administration, who subsequently got fired, purportedly for f%$#ing and possibly sharing classified information with his mistress, went to Dick Cheney’s propagandist to try to get his preferred spin adopted after the fact.

This is a classic example of why we should not give too much power and influence to our intelligence agencies: When they are the master, rather than the servant, their primary mission is covering up their own f%$#-ups, not providing good intelligence.

The Cat Has a Name!

Remember when I asked for help naming our new kitten?

Well, it turns out that I did not need to.

Yesterday, I discovered his name.

We were packing to go to an SCA (medieval recreation) event, and the kitten was sitting on our comfy chair.

My daughter Natalie put down a quiver of arrows on the chair, and the kitten promptly began chew on the leather case.

I scowled at the cat, and barked the following instruction to my Daughter:

Natalie, get the arrows away from DESTRUCTO!

There was a brief stunned paused from the assembled family, and then we all looked at each other, and we realized that we had named the cat.

There was much rejoicing.

Matt Taibbi Gets Owned by Thomas Friedman

We live in a strange world.

There are very few things that I depend on, but brilliantly crafted takedowns of Thomas “The Mustache of Stupidith” Friedman by Matt Taibbi is one of them.

Recently, he held a reader to, “Come Up With the Ultimate Thomas Friedman Porn Title, ” and notwithstanding some fine entries by his readers, Thomas Friedman won the contest with his recent column, “This Ain’t Yogurt.”

I can only conclude the Friedman was aware of Taibbi’s effort, and he took appropriate action:

The winner, of course, is Thomas Friedman himself, whose very next column after this contest was announced was entitled, “This Ain’t Yogurt.”

“Jesus F%$#ing Christ,” noted a friend, impressed. “This Aint Yogurt is more obscene than anything a mere commentator could think of.”

“He took your contest,” noted another “friend” of mine, “and shoved it right up your poop-chamber.”

“Friedman’s revenge,” chirped a reader.

“Tom Friedman – human masterpiece machine,” commented a fourth. “Matt Taibbi, Suck On This. Grab some bench, rook.”

(%$# mine)

Tom Friedman, just this once, I take my hat off to you.

What a Repulsive Exercise in Truth Telling

In the UK, an adviser for the (Conservative Party, what a surprise) Prime Minister has said that the recession is a good thing because it pushes wages of ordinary people down:

The prime minister’s adviser on enterprise has told the cabinet that the economic downturn is an excellent time for new businesses to boost profits and grow because labour is cheap, the Observer can reveal.

Lord Young, a cabinet minister under the late Baroness Thatcher, who is the only aide with his own office in Downing Street, told ministers that the low wage levels in a recession made larger financial returns easier to achieve. His comments are contained in a report to be published this week, on which the cabinet was briefed last Tuesday.

Young, who has already been forced to resign from his position once before for downplaying the impact of the recession on people, writes: “The rise in the number of businesses in recent years shows that a recession can be an excellent time to start a business.

“Competitors who fall by the wayside enable well-run firms to expand and increase market share. Factors of production such as premises and labour can be cheaper and higher quality, meaning that return on investment can be greater.”

A Downing Street spokesman said Young was merely stating a “factual point and nothing else”. But the comments were described as “appalling and ill-timed” by union leaders, with job-market figures due out next week expected to show that the initial resilience of employment has faded while wages are being severely tightened.

If they said this in public, they would never serve in public office in ever again.

It’s nice though that someone was willing to leak this to the press.

He’s already been let go once by David Cameron for saying that ordinary folks “never had it so good” during the recession because of low rates, but they let him back in.

My guess is that this troll will be back again.

It’s Bank Failure Friday!!!

And here they are, ordered, and numbered for the year so far.

  1. Pisgah Community Bank, Ashville, NC
  2. Sunrise Bank,Valdosta, GA

Full FDIC list

And here are the credit union closings:

  1. Lynrocten Federal Credit Union, Lynchburg, VA

Full NCUA list

Something odd is going on.  In the past 3 weeks, the number of banks failures have more than doubled. 

So, here is the graph pr0n with last years numbers for comparison (FDIC only):