Excerpt:
Bank of America Settles for $69 Million With Enron Shareholders
Bank of America(BAC_) is the first of Enron's many bankers to reach a financial settlement with the fallen energy company's shareholders.
"The bank believes it is in the best interests of the company to resolve these claims and put this litigation behind it,'' the bank said in a statement.
The lead plaintiff in the Enron litigation, the University of California, issued a statement hailing the first settlement with a bank. "We are very pleased with this settlement which, given the limited potential liability of the Bank of America, represents a substantial recovery and sets a benchmark for the ratio between potential liability and recovery for the other financial institution defendants," said James E. Holst, the university's general counsel.
The federal judge presiding over the Enron litigation ordered lawyers for the shareholders and the banks to enter into mediation more than a year ago. Up until now, it had been widely believed the talks were making little progress.
But the settlement with BofA may not herald a quick deal with Enron's other financiers. That's because BofA's role in financing Enron's shady and deceptive off-balance-sheet accounting shenanigans was small compared with institutions such as Citigroup(C_), J.P. Morgan Chase(JPM_), Merrill Lynch(MER), Canadian Imperial Bank of Commerce(BCM_) and Credit Suisse First Boston(CSR_).
Legal experts have predicted that the final price tag for all the banks in the Enron litigation may be between $5 billion and $10 billion.
http://www.sec.gov/news/press/2003-87.htm
Excerpt:
FOR IMMEDIATE RELEASE
"The bank believes it is in the best interests of the company to resolve these claims and put this litigation behind it,'' the bank said in a statement.
The lead plaintiff in the Enron litigation, the University of California, issued a statement hailing the first settlement with a bank. "We are very pleased with this settlement which, given the limited potential liability of the Bank of America, represents a substantial recovery and sets a benchmark for the ratio between potential liability and recovery for the other financial institution defendants," said James E. Holst, the university's general counsel.
The federal judge presiding over the Enron litigation ordered lawyers for the shareholders and the banks to enter into mediation more than a year ago. Up until now, it had been widely believed the talks were making little progress.
But the settlement with BofA may not herald a quick deal with Enron's other financiers. That's because BofA's role in financing Enron's shady and deceptive off-balance-sheet accounting shenanigans was small compared with institutions such as Citigroup(C_), J.P. Morgan Chase(JPM_), Merrill Lynch(MER), Canadian Imperial Bank of Commerce(BCM_) and Credit Suisse First Boston(CSR_).
Legal experts have predicted that the final price tag for all the banks in the Enron litigation may be between $5 billion and $10 billion.
http://www.sec.gov/news/press/2003-87.htm
Excerpt:
SEC Settles Enforcement Proceedings against J.P. Morgan Chase and Citigroup
FOR IMMEDIATE RELEASE
2003-87
J.P. Morgan Chase Agrees to Pay $135 Million to Settle SEC Allegations that It Helped Enron Commit Fraud
Citigroup Agrees to Pay $120 Million to Settle SEC Allegations that It Helped Enron and Dynegy Commit Fraud
Washington, D.C., July 28, 2003 -- The Securities and Exchange Commission today instituted and settled enforcement proceedings against two major financial institutions, J.P. Morgan Chase & Co. and Citigroup, Inc., for their roles in Enron Corp.'s manipulation of its financial statements. Each institution helped Enron mislead its investors by characterizing what were essentially loan proceeds as cash from operating activities. The proceeding against Citigroup also resolves the Commission's charges stemming from the assistance Citigroup provided Dynegy Inc. in manipulating that company's financial statements through similar conduct.
As to J.P. Morgan Chase, the Commission filed a civil injunctive action in U.S.
http://www.sec.gov/news/press/2003-32.htm
Excerpt:
FOR IMMEDIATE RELEASE
Washington, D.C., March 17, 2003 -- The Securities and Exchange Commission today charged Merrill Lynch & Co. Inc. and four of its former senior executives with aiding and abetting Enron Corp.'s securities fraud. The Commission's complaint, filed in U.S. District Court in Houston, alleges that Merrill Lynch and its former executives aided and abetted Enron Corp.'s earnings manipulation by engaging in two fraudulent year-end transactions in 1999. The transactions had the purpose and effect of overstating Enron's reported financial results. Specifically, Enron used these transactions to add approximately $60 million to its fourth quarter of 1999 income (improving net income from $199 million to $259 million or 33 percent) and to increase its full year 1999 earnings per share from $1.09 to $1.17.
http://www.nytimes.com/2006/10/02/business/businessspecial3/02enron.html?ref=canadianimperialbankofcommerce
Excerpt:
Lawyers have already won settlements for $7.3 billion of the $40 billion investors claim they lost in Enron’s collapse. Most of that money has come from banks, like J. P. Morgan Chase, Bank of America, Citigroup and Canadian Imperial Bank of Commerce. Seven other banks have not settled.
http://www.bnet.com/blog/advertising-business/hill-knowlton-voice-of-the-bad-guy-thrives-amid-misfortune/3801
Excerpt:
Hill & Knowlton, which previously worked with energy trader Enron Corp. and phone company WorldCom Inc., said risk- protection business is growing in the economic slowdown as affected companies must account to the government and taxpayers and rebuild their reputations.
AIG? Enron? Worldcom? Turns out that those three are merely the tip of the iceberg when it comes to corporate wrong-doers on H&K’s current and former client lists.
The agency was once retained by BCCI, according to pro-transparency group FAS, after the crooked bank was indicted for allegedly conspiring with the Medellin Cartel to launder $32 million in drug money.
Its clients also include the Church of Scientology and Big Tobacco, in addition to some less than democratic foreign regimes such as Indonesia, China, Kuwait, Israel, Egypt, and Peru, according to the U.K.’s Corporate Watch.
It’s dirty work, but someone has to do it.
http://www.chron.com/business/enron/article/Credit-Suisse-puts-Enron-case-in-the-past-1600006.php
Excerpt:
http://www.sec.gov/news/press/2003-32.htm
Excerpt:
SEC Charges Merrill Lynch, Four Merrill Lynch Executives with Aiding and Abetting Enron Accounting Fraud
FOR IMMEDIATE RELEASE
2003-32
Merrill Lynch Simultaneously Settles Charges for Permanent Anti-Fraud Injunction and Payment of $80 Million in Disgorgement, Penalties and Interest
Washington, D.C., March 17, 2003 -- The Securities and Exchange Commission today charged Merrill Lynch & Co. Inc. and four of its former senior executives with aiding and abetting Enron Corp.'s securities fraud. The Commission's complaint, filed in U.S. District Court in Houston, alleges that Merrill Lynch and its former executives aided and abetted Enron Corp.'s earnings manipulation by engaging in two fraudulent year-end transactions in 1999. The transactions had the purpose and effect of overstating Enron's reported financial results. Specifically, Enron used these transactions to add approximately $60 million to its fourth quarter of 1999 income (improving net income from $199 million to $259 million or 33 percent) and to increase its full year 1999 earnings per share from $1.09 to $1.17.
http://www.nytimes.com/2006/10/02/business/businessspecial3/02enron.html?ref=canadianimperialbankofcommerce
Excerpt:
Lawyers have already won settlements for $7.3 billion of the $40 billion investors claim they lost in Enron’s collapse. Most of that money has come from banks, like J. P. Morgan Chase, Bank of America, Citigroup and Canadian Imperial Bank of Commerce. Seven other banks have not settled.
http://www.bnet.com/blog/advertising-business/hill-knowlton-voice-of-the-bad-guy-thrives-amid-misfortune/3801
Excerpt:
Hill & Knowlton, which previously worked with energy trader Enron Corp. and phone company WorldCom Inc., said risk- protection business is growing in the economic slowdown as affected companies must account to the government and taxpayers and rebuild their reputations.
AIG? Enron? Worldcom? Turns out that those three are merely the tip of the iceberg when it comes to corporate wrong-doers on H&K’s current and former client lists.
The agency was once retained by BCCI, according to pro-transparency group FAS, after the crooked bank was indicted for allegedly conspiring with the Medellin Cartel to launder $32 million in drug money.
Its clients also include the Church of Scientology and Big Tobacco, in addition to some less than democratic foreign regimes such as Indonesia, China, Kuwait, Israel, Egypt, and Peru, according to the U.K.’s Corporate Watch.
It’s dirty work, but someone has to do it.
http://www.chron.com/business/enron/article/Credit-Suisse-puts-Enron-case-in-the-past-1600006.php
Excerpt:
Credit Suisse puts Enron case in the past
Settlement of $61.5 million wraps up its case
KRISTEN HAYS, Copyright 2007 Houston Chronicle
Published 05:30 a.m., Saturday, June 2, 2007
Page 1 of 1The former Enron has settled bankruptcy-related litigation with two arms of Credit Suisse First Boston.
The failed energy company announced Friday that Credit Suisse International and Credit Suisse Securities have agreed to pay $61.5 million to settle a case involving equity transactions conducted just before Enron went bankrupt in December 2001.
Those transactions involved notes repaid to the banks before they were mature, which Enron now claims amounted to preferential treatment and fraudulent transfers at the expense of other Enron creditors.
Credit Suisse denied any wrongdoing.
Similar cases are still pending against UBS and Bear Stearns, Enron said. Lehman Brothers Holdings settled a similar claim for $70 million last year.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3677438
Excerpt:
Learn the name UBS . This company does not just act like Enron. It really is Enron. For one thing, as I will show, UBS Warburg bought the main money making operation of Enron, the Energy Trading Unit that Ken Lay used to price gouge California. And it bought Enron's senator, Phil "Nation of Whiners" Gramm the on again off again on again John McCain financial adviser----though he was an ex-senator by the time UBS acquired him. About the only difference is this round of scandals involves the banking/mortgage industry rather than energy price fixing. All the other ingredients are here. Investors have been defrauded. Insiders have dumped their own securities as prices have fallen. And Republican lawmakers in the administration are engaged in a cover up.
Today, UBS is back in the headlines, because NY state has filed a $37 billion lawsuit on behalf of defrauded investors. This, despite the Bush administration’s vendetta against Eliot Spitzer which was probably designed to discourage states from seeking to punish bank fraud where the feds refused to do so.
I. With So Many Enrons Just Waiting to Happen, Former Senator Phil Gramm Would Not Be Out of Work Long
In 2002, just months after leaving the U.S. Senate in disgrace over the roles which he and his wife played in helping Enron construct its house of cards ( for details and links see my recent journal McCain Economic Adviser Phil "Nation of Whiners" Gramm and Wife Wendy Brought Us Enron
http://journals.democraticunderground.com/McCamy%20Taylor/258 )
Phil Gramm was hired by USB Warburg.
http://www.ubs.com/1/e/media_overview/media_americas/search1/search10?newsId=58925
Excerpt:
http://dealbook.nytimes.com/2011/08/02/out-of-the-ruins-where-directors-landed/
Excerpt:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3677438
Excerpt:
Learn the name UBS . This company does not just act like Enron. It really is Enron. For one thing, as I will show, UBS Warburg bought the main money making operation of Enron, the Energy Trading Unit that Ken Lay used to price gouge California. And it bought Enron's senator, Phil "Nation of Whiners" Gramm the on again off again on again John McCain financial adviser----though he was an ex-senator by the time UBS acquired him. About the only difference is this round of scandals involves the banking/mortgage industry rather than energy price fixing. All the other ingredients are here. Investors have been defrauded. Insiders have dumped their own securities as prices have fallen. And Republican lawmakers in the administration are engaged in a cover up.
Today, UBS is back in the headlines, because NY state has filed a $37 billion lawsuit on behalf of defrauded investors. This, despite the Bush administration’s vendetta against Eliot Spitzer which was probably designed to discourage states from seeking to punish bank fraud where the feds refused to do so.
I. With So Many Enrons Just Waiting to Happen, Former Senator Phil Gramm Would Not Be Out of Work Long
In 2002, just months after leaving the U.S. Senate in disgrace over the roles which he and his wife played in helping Enron construct its house of cards ( for details and links see my recent journal McCain Economic Adviser Phil "Nation of Whiners" Gramm and Wife Wendy Brought Us Enron
http://journals.democraticunderground.com/McCamy%20Taylor/258 )
Phil Gramm was hired by USB Warburg.
http://www.ubs.com/1/e/media_overview/media_americas/search1/search10?newsId=58925
Excerpt:
October 7, 2002
Senator Phil Gramm to join UBS Warburg
UBS Warburg today announced that Texas Senator Phil Gramm will join the firm as vice chairman. In this role, he will advise clients on corporate finance issues and strategy. Senator Gramm plans to join the firm at the end of his term. In his new role, he will work closely with Vice Chairmen Lord Brittan and Ken Costa, who are based in London.
Senator Gramm is retiring after serving 24 years in Congress, including the last 18 years as Senator from Texas.
„Senator Gramm’s experience gained from more than 35 years in academia and government make him uniquely suited to assist our clients to meet the challenges presented by today’s business environment,” said John P. Costas, chairman and chief executive officer of UBS Warburg.
Senator Gramm is retiring after serving 24 years in Congress, including the last 18 years as Senator from Texas.
„Senator Gramm’s experience gained from more than 35 years in academia and government make him uniquely suited to assist our clients to meet the challenges presented by today’s business environment,” said John P. Costas, chairman and chief executive officer of UBS Warburg.
http://dealbook.nytimes.com/2011/08/02/out-of-the-ruins-where-directors-landed/
Excerpt:
Out of the Ruins: Where Directors Landed
By STEVEN M. DAVIDOFFThe career paths of the Enron directors provide anecdotal evidence that the former board members of Bear Stearns and Lehman Brothers will continue their prominent careers. Here is a look at former Enron, Bear Stearns and Lehman Brothers directors and their current occupations and public directorships.
Robert A. Belfer
Then: Chairman and chief executive of Belco Oil and Gas.
Now: Chairman of Belfer Management. Serves on the advisory boards of universities.
Norman P. Blake Jr.
Then: Chairman and chief executive of Comdisco. A director of Owens Corning.
Now: Retired. A director of Owens Corning and chairman of the audit committee.
Ronnie C. Chan
Then: Chairman of the Hang Lung Group. A director of Standard Chartered and Motorola.
Now: Chairman of the Hang Lung Group. Serves on the advisory boards of policy institutes and universities.
John H. Duncan
Then: Co-founder of Gulf and Western. Founder of Gulf Consolidated Services. A director at EOTT Energy and Group 1 Automotive.
Now: Retired.
Dr. Wendy L. Gramm
Then: Director of the regulatory studies program of the Mercatus Center at George Mason University. Former chairman of the Commodity Futures Trading Commission. Also a director of IBP, State Farm Insurance and Invesco Funds
Now: Mercatus Center distinguished senior scholar at George Mason University.
Paulo Ferraz Pereira
Then: Executive vice president of Grupo Bozano.
Now: Unknown.
Robert K. Jaedicke
Then: Chairman of Enron board’s audit committee. Former dean of Stanford Business School. Also a director of the California Water Service Company and Boise Cascade.
Now: Philip H. Knight professor and dean emeritus of the Stanford Graduate School of Business. A director of several private companies.
Kenneth L. Lay
Then: Chairman and chief executive of Enron (reassuming the latter position after the resignation of Jeffrey K. Skilling).
Now: He died on July 5, 2006, about six weeks after being convicted of 10 charges including conspiracy and fraud but before his sentencing.
Charles A Lemaistre
Then: President emeritus at the University of Texas MD Andersen Cancer Center.
Now: Retired.
John Mendelsohn
Then: President of the University of Texas MD Anderson Cancer Center. A director of ImClone Systems.
Now: President of the University of Texas MD Anderson Cancer Center, although he is scheduled to step down on Sept. 1.
William C. Powers Jr.
Then: Dean of the University of Texas School of Law.
Now: President of the University of Texas at Austin. A director of the Forestar Real Estate Group and several academic organizations and other nonprofit organizations.................................................................................................................................
http://wellyouneednot.blogspot.com/2006/01/enron-mba-witchhunt.html
Excerpt:
Who is Robert K Jaedicke (besides Enron's director and chair of its audit committe)? He has been named one of the five best academic accountants in theUS Stanford University American Academy of Collegiate Schools of Business, which is the national accrediting agency for U.S.
http://wallstreetpit.com/24736-enron-law-firm-sues-goldman-sachs-for-alleged-deception
Excerpt:
Enron board members
Enron board members at the time of its bankruptcy.Robert A. Belfer
Then: Chairman and chief executive of Belco Oil and Gas.
Now: Chairman of Belfer Management. Serves on the advisory boards of universities.
Norman P. Blake Jr.
Then: Chairman and chief executive of Comdisco. A director of Owens Corning.
Now: Retired. A director of Owens Corning and chairman of the audit committee.
Ronnie C. Chan
Then: Chairman of the Hang Lung Group. A director of Standard Chartered and Motorola.
Now: Chairman of the Hang Lung Group. Serves on the advisory boards of policy institutes and universities.
John H. Duncan
Then: Co-founder of Gulf and Western. Founder of Gulf Consolidated Services. A director at EOTT Energy and Group 1 Automotive.
Now: Retired.
Then: Director of the regulatory studies program of the Mercatus Center at George Mason University. Former chairman of the Commodity Futures Trading Commission. Also a director of IBP, State Farm Insurance and Invesco Funds
Now: Mercatus Center distinguished senior scholar at George Mason University.
Paulo Ferraz Pereira
Then: Executive vice president of Grupo Bozano.
Now: Unknown.
Robert K. Jaedicke
Then: Chairman of Enron board’s audit committee. Former dean of Stanford Business School. Also a director of the California Water Service Company and Boise Cascade.
Now: Philip H. Knight professor and dean emeritus of the Stanford Graduate School of Business. A director of several private companies.
Kenneth L. Lay
Then: Chairman and chief executive of Enron (reassuming the latter position after the resignation of Jeffrey K. Skilling).
Now: He died on July 5, 2006, about six weeks after being convicted of 10 charges including conspiracy and fraud but before his sentencing.
Charles A Lemaistre
Then: President emeritus at the University of Texas MD Andersen Cancer Center.
Now: Retired.
John Mendelsohn
Then: President of the University of Texas MD Anderson Cancer Center. A director of ImClone Systems.
Now: President of the University of Texas MD Anderson Cancer Center, although he is scheduled to step down on Sept. 1.
William C. Powers Jr.
Then: Dean of the University of Texas School of Law.
Now: President of the University of Texas at Austin. A director of the Forestar Real Estate Group and several academic organizations and other nonprofit organizations.................................................................................................................................
http://wellyouneednot.blogspot.com/2006/01/enron-mba-witchhunt.html
Excerpt:
Who is Robert K Jaedicke (besides Enron's director and chair of its audit committe)? He has been named one of the five best academic accountants in the
http://wallstreetpit.com/24736-enron-law-firm-sues-goldman-sachs-for-alleged-deception
Excerpt:
Enron Law Firm Sues Goldman Sachs For Alleged Deception
CNNMoney reports that Robbins Geller Rudman and Dowd, the law firm that won $7.2 billion in a class-action suit against energy trade Enron, has sued Goldman Sachs (GS) for deceiving investors about the bank’s financial conditions.
The complaint asserts that Goldman, not only totally failed to exercise its obligations as a firm to disclose to investors vital information in the sale of Abacus 2007-AC1, a synthetic CDO that hinged on the performance of subprime residential mortgage-backed securities, but also “chose not to issue a Form 8-K alerting investors to this event and later even omitted this information from its Form 10-Qs. As a result, investors were unaware the SEC was even investigating ABACUS 2007-AC1.”
The lawsuit seeks to represent investors who bought shares between Oct. 15, 2009, and April 16 of this year at artificially inflated prices, a time which coincides with Goldman’s hesitation to reveal that it had received a Wells notice from the SEC, indicating the federal regulator intended to enforce charges against the Abacus deal.
The suit names CEO Lloyd Blankfein, CFO David Viniar and President Gary Cohn among the defendants.
The Robbins Geller case is the third complaint filed against Goldman Sachs since the SEC filed its fraud charges against the firm. Suits also were filed last week by investors Robert Rosinek and Morton Spiegel.
http://www.nytimes.com/2006/06/02/business/businessspecial3/02enron.html
Excerpt:
Ex-Enron Law Firm to Pay $30 Million
HOUSTON, June 1 — Enron's former law firm, Vinson & Elkins, has agreed to pay the company $30 million to settle claims of contributing to its collapse in 2001 by signing off on questionable deals.
The firm, which once earned up to $40 million a year from Enron, admitted no liability in the settlement.
http://www.optigas.com/management.php
Excerpt:
Prior to joining Duke Energy, Sherrill served in various executive positions with Dynegy Marketing and Trade from December 1992 to June 1999. His last position at Dynegy was Managing Director of power trading. Before joining Dynegy, Sherrill served as Vice President of energy lending for First Interstate Bank of Texas, now Wells Fargo.
http://www.usatoday.com/news/world/2010-12-11-vatican-bank_N.htm
Excerpt:
Vatican Bank mired in laundering scandal
Updated 12/12/2010 4:01 PM | Comments 31 | Recommend 4 E-mail |
In this Sept. 21 file photo, a nun walks past a branch of Credito Artigiano's bank in Rome. Italian prosecutors contest claims by the Vatican bank that it is trying to comply with international rules to fight money laundering.
VATICAN CITY (AP) — This is no ordinary bank: The ATMs are in Latin. Priests use a private entrance. A life-size portrait of Pope Benedict XVI hangs on the wall.
Nevertheless, the Institute for Religious Works is a bank, and it is under harsh new scrutiny in a case involving money-laundering allegations that led police to seize $30 million in Vatican assets in September. Critics say the case shows that the "Vatican Bank" has never shed its penchant for secrecy and scandal.
The Vatican calls the seizure of assets a "misunderstanding" and expresses optimism it will be quickly cleared up. But court documents show that prosecutors say the Vatican Bank deliberately flouted anti-laundering laws "with the aim of hiding the ownership, destination and origin of the capital." The documents also reveal investigators' suspicions that clergy may have acted as fronts for corrupt businessmen and Mafia.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x1720694
Excerpt:
Sen. Lieberman has long been known to cultivate the insurance and pharmaceutical industries, which provide jobs in his home state and contributions to his campaign fund. But he has literally been sleeping with one of their Washington representatives ever since his wife, Hadassah, joined Hill & Knowlton last year. The legendary lobbying and PR firm hired her as a “senior counselor” in its “health and pharmaceuticals practice.”This news marked Hadassah Lieberman’s return to consulting after more than a decade of retirement. “I have had a life-long commitment to helping people gain better health care,” she said in the press release announcing her new job. “I am excited about the opportunity to work with the talented team at Hill & Knowlton to counsel a terrific stable of clients toward that same goal.”
It would be uplifting to imagine that Hill & Knowlton—after spending the past decade as a defendant in tobacco class-action lawsuits because of its role in propaganda disputing the deadly effects of smoking—is now devoted to improving everybody’s health. More likely, the firm remains devoted to improving the profits of its clientele, which has historically included Enron, the Bank of Credit and Commerce International, Saudis, Kuwaitis, American International Group and Boeing.
http://www.american-buddha.com/bcci.affair.18.htm
Excerpt:
THE BCCI AFFAIR
HILL AND KNOWLTON AND BCCI'S PR CAMPAIGN
Introduction
Two days following its indictment in Tampa in October, 1988 as a result of the Operation C-Chase sting, BCCI did what many businesses in trouble do under such circumstances -- it hired a public relations firm to help it reduce the bad publicity surrounding the indictment. The firm selected by BCCI was, consistent with BCCI's usual strategy, unusually well-connected politically: Hill and Knowlton, home to Republican Robert Gray and Democrat Frank Mankiewicz, and generally considered the most politically prominent public relations firm in Washington.(1) During the following two years, Hill and Knowlton provided various services to BCCI and to its secretly-held affiliate, First American.(2)
On August 1, 1991, former Customs Service Commissioner William von Raab, in testimony before the Subcommittee, criticized the public relations firm, implicating its activities as a factor in BCCI's success in staying open following its indictment, and suggesting that the January, 1990 plea agreement between BCCI and the U.S. Attorney in Tampa was "a tribute to the influence team that was marching up and down the Eastern seaboard helping BCCI keep its neck off the block."(3)
In response to the Von Raab testimony, Hill and Knowlton's Vice Chairman, Frank Mankiewicz, immediately issued the following statement on the PR Newswire, which is set forth in full:
Mr. Von Raab's testimony as to Hill and Knowlton is incredibly irresponsible and totally false. Neither I, nor Robert Gray, nor anyone else from Hill and Knowlton ever contacted, on behalf of BCCI, anyone in the Department of Justice or anywhere else in the Executive Branch, or for that matter, on Capitol Hill.(4)
The import of Hill and Knowlton's release was that whatever it did for BCCI, its work had not involved lobbying.
But Mankiewicz's strong statements concerning what Hill and Knowlton did not do for BCCI failed to explain exactly what Hill and Knowlton did do.
In fact, Hill and Knowlton had represented BCCI at a critical time in its history, following the Tampa drug-money laundering indictment.(5) Moreover, according to statements made by former Hill and Knowlton partners to the press, Hill and Knowlton partners did know BCCI was "sleazy," and at least one partner did leave the firm in part as a result of disagreements over the BCCI account.(6)
http://www.sourcewatch.org/index.php?title=JPMorgan_Chase
Excerpt:
“They thought they were the smartest guys on the planet. They had found this brilliant way to get around the rules, to play around with all this risk. And they were just so proud of what they had done.” [4]
Bill Winters, CEO of JP Morgan Chase’s investment bank until 2009 and a leader in the drive to innovate; denies that credit derivatives had anything to do with the 2008 financial crisis. He points instead to “bad mortgage lending, bad risk management practices, how the innovation was used”.[5] Winters also has blamed the crisis on “greedy bankers, investors and borrowers”, as well as “inept risk managers who relied on the rating agencies”. [6]
However, Frank Partnoy, a former trader with Morgan Stanley, has argued that the crisis would have been much less extreme without derivatives:
The complaint asserts that Goldman, not only totally failed to exercise its obligations as a firm to disclose to investors vital information in the sale of Abacus 2007-AC1, a synthetic CDO that hinged on the performance of subprime residential mortgage-backed securities, but also “chose not to issue a Form 8-K alerting investors to this event and later even omitted this information from its Form 10-Qs. As a result, investors were unaware the SEC was even investigating ABACUS 2007-AC1.”
The lawsuit seeks to represent investors who bought shares between Oct. 15, 2009, and April 16 of this year at artificially inflated prices, a time which coincides with Goldman’s hesitation to reveal that it had received a Wells notice from the SEC, indicating the federal regulator intended to enforce charges against the Abacus deal.
The suit names CEO Lloyd Blankfein, CFO David Viniar and President Gary Cohn among the defendants.
The Robbins Geller case is the third complaint filed against Goldman Sachs since the SEC filed its fraud charges against the firm. Suits also were filed last week by investors Robert Rosinek and Morton Spiegel.
http://www.nytimes.com/2006/06/02/business/businessspecial3/02enron.html
Excerpt:
Ex-Enron Law Firm to Pay $30 Million
The firm, which once earned up to $40 million a year from Enron, admitted no liability in the settlement.
http://www.optigas.com/management.php
Excerpt:
Prior to joining Duke Energy, Sherrill served in various executive positions with Dynegy Marketing and Trade from December 1992 to June 1999. His last position at Dynegy was Managing Director of power trading. Before joining Dynegy, Sherrill served as Vice President of energy lending for First Interstate Bank of Texas, now Wells Fargo.
http://www.usatoday.com/news/world/2010-12-11-vatican-bank_N.htm
Excerpt:
Vatican Bank mired in laundering scandal
Updated 12/12/2010 4:01 PM | Comments 31 | Recommend 4 E-mail |
In this Sept. 21 file photo, a nun walks past a branch of Credito Artigiano's bank in Rome. Italian prosecutors contest claims by the Vatican bank that it is trying to comply with international rules to fight money laundering.
VATICAN CITY (AP) — This is no ordinary bank: The ATMs are in Latin. Priests use a private entrance. A life-size portrait of Pope Benedict XVI hangs on the wall.
Nevertheless, the Institute for Religious Works is a bank, and it is under harsh new scrutiny in a case involving money-laundering allegations that led police to seize $30 million in Vatican assets in September. Critics say the case shows that the "Vatican Bank" has never shed its penchant for secrecy and scandal.
The Vatican calls the seizure of assets a "misunderstanding" and expresses optimism it will be quickly cleared up. But court documents show that prosecutors say the Vatican Bank deliberately flouted anti-laundering laws "with the aim of hiding the ownership, destination and origin of the capital." The documents also reveal investigators' suspicions that clergy may have acted as fronts for corrupt businessmen and Mafia.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x1720694
Excerpt:
Sen. Lieberman has long been known to cultivate the insurance and pharmaceutical industries, which provide jobs in his home state and contributions to his campaign fund. But he has literally been sleeping with one of their Washington representatives ever since his wife, Hadassah, joined Hill & Knowlton last year. The legendary lobbying and PR firm hired her as a “senior counselor” in its “health and pharmaceuticals practice.”This news marked Hadassah Lieberman’s return to consulting after more than a decade of retirement. “I have had a life-long commitment to helping people gain better health care,” she said in the press release announcing her new job. “I am excited about the opportunity to work with the talented team at Hill & Knowlton to counsel a terrific stable of clients toward that same goal.”
It would be uplifting to imagine that Hill & Knowlton—after spending the past decade as a defendant in tobacco class-action lawsuits because of its role in propaganda disputing the deadly effects of smoking—is now devoted to improving everybody’s health. More likely, the firm remains devoted to improving the profits of its clientele, which has historically included Enron, the Bank of Credit and Commerce International, Saudis, Kuwaitis, American International Group and Boeing.
http://www.american-buddha.com/bcci.affair.18.htm
Excerpt:
THE BCCI AFFAIR
HILL AND KNOWLTON AND BCCI'S PR CAMPAIGN
Introduction
Two days following its indictment in Tampa in October, 1988 as a result of the Operation C-Chase sting, BCCI did what many businesses in trouble do under such circumstances -- it hired a public relations firm to help it reduce the bad publicity surrounding the indictment. The firm selected by BCCI was, consistent with BCCI's usual strategy, unusually well-connected politically: Hill and Knowlton, home to Republican Robert Gray and Democrat Frank Mankiewicz, and generally considered the most politically prominent public relations firm in Washington.(1) During the following two years, Hill and Knowlton provided various services to BCCI and to its secretly-held affiliate, First American.(2)
On August 1, 1991, former Customs Service Commissioner William von Raab, in testimony before the Subcommittee, criticized the public relations firm, implicating its activities as a factor in BCCI's success in staying open following its indictment, and suggesting that the January, 1990 plea agreement between BCCI and the U.S. Attorney in Tampa was "a tribute to the influence team that was marching up and down the Eastern seaboard helping BCCI keep its neck off the block."(3)
In response to the Von Raab testimony, Hill and Knowlton's Vice Chairman, Frank Mankiewicz, immediately issued the following statement on the PR Newswire, which is set forth in full:
Mr. Von Raab's testimony as to Hill and Knowlton is incredibly irresponsible and totally false. Neither I, nor Robert Gray, nor anyone else from Hill and Knowlton ever contacted, on behalf of BCCI, anyone in the Department of Justice or anywhere else in the Executive Branch, or for that matter, on Capitol Hill.(4)
The import of Hill and Knowlton's release was that whatever it did for BCCI, its work had not involved lobbying.
But Mankiewicz's strong statements concerning what Hill and Knowlton did not do for BCCI failed to explain exactly what Hill and Knowlton did do.
In fact, Hill and Knowlton had represented BCCI at a critical time in its history, following the Tampa drug-money laundering indictment.(5) Moreover, according to statements made by former Hill and Knowlton partners to the press, Hill and Knowlton partners did know BCCI was "sleazy," and at least one partner did leave the firm in part as a result of disagreements over the BCCI account.(6)
http://www.sourcewatch.org/index.php?title=JPMorgan_Chase
Excerpt:
“They thought they were the smartest guys on the planet. They had found this brilliant way to get around the rules, to play around with all this risk. And they were just so proud of what they had done.” [4]
Bill Winters, CEO of JP Morgan Chase’s investment bank until 2009 and a leader in the drive to innovate; denies that credit derivatives had anything to do with the 2008 financial crisis. He points instead to “bad mortgage lending, bad risk management practices, how the innovation was used”.[5] Winters also has blamed the crisis on “greedy bankers, investors and borrowers”, as well as “inept risk managers who relied on the rating agencies”. [6]
However, Frank Partnoy, a former trader with Morgan Stanley, has argued that the crisis would have been much less extreme without derivatives:
No comments:
Post a Comment