Monday, December 3, 2012

BONDS 101

In the contemporary global business environment, suretyship is a dynamic financial management tool. Surety bonds offer all types and sizes of businesses increased financial flexibility and greater potential for business growth by providing off balance sheet credit with more favorable terms and conditions than other financial instruments like letters of credit. Today’s innovative risk and financial managers know that surety bonds are an important tool in meeting strategic business goals and improving competitive positions, not merely an indemnified assurance of performance.

Corporate Suretyship is closely associated with insurance as most sureties are property and casualty insurance companies. However, a Surety's method of operation involves principles, which more closely resemble banking than insurance. Insurance is a contract between two parties, the insured and the insurer. Suretyship is an obligation between three parties: the Principal, Surety and Obligee. The Surety agrees to be jointly bound with the Principal for the obligation of the Principal to the Obligee. Simply stated, a surety bond is an instrument under which one party guarantees to another that a third party will perform its obligation.
Surety Bonds once written are very broad documents. The bond guarantees that promises made will be kept. If the principal defaults, the Surety must meet the guarantee and then subrogate against the principal through the indemnity agreement. Unlike insurance where losses are anticipated, in theory there should be no losses under surety bonds.
The majority of Surety bonds are required by law or regulations of any of the political divisions of the government system, The other bonds often encountered arise out of the need to secure or guarantee contractual obligations from one private entity to another. There are a number of broad classifications of surety bonds with the major groups being:
  •   Contract 
  •   License 
  •   Judicial 
  •   Public Official 
  •   U.S. Government 
  •   Miscellaneous 
  •   Guarantees of Financial Performance

Contract Bonds

Contract Bonds make up the largest group of surety bond writings. They guarantee that the Principal will carry out the terms and conditions of a contract, generally of a construction nature. Contract bonds can be required on public works or private projects. The role of the Surety in this process is provide assurance that the project will be completed according to the specifications, time and cost provisions contained in the underlying contract. Bid, Performance and Payment, Subdivision, Completion, Design & Build, Supply, and Maintenance bonds are the primary types of contract bonds encountered.

License and Permit Bonds

License and Permit Bonds generally are required to protect the public welfare; Government organizations of many types and levels require these bonds either by law or regulation. These license bonds generally guarantee that the Principal will comply with the rules governing their activities. They can protect the public from fraud, incompetence, bodily or property damage or credit losses. Examples of these bonds are:
  •   Contractors License bonds - Incompetence 
  •   Insurance Agents Bond - Fraudulent policy or promises 
  •   Easement or Blasting Permit bonds - Bodily or property damage
  •   Mortgage broker bonds - credit losses

Judicial Bonds

Judicial bonds provide a guarantee on the part of a Principal that is involved in a court action. All court bonds are non-cancelable in nature. They can guarantee costs, damages, actions or faithful performance of an obligation overseen or directed by the court. Some common court bonds are:
  • Attachment Bonds - guarantee that the Principal will pay damages if property is later determined to have been wrongfully attached on their behalf through a court action. 
  • Replevin Bonds - guarantee that property that was in the possession of the Obligee and has been taken by the Principal pursuant to a court order, will be returned to the Obligee should it later be instructed to do so. It also guarantees that the Principal will pay any costs and damages that accrue as a result of having replevied the property. 
  • Injunction or Restraining Order Bonds - guarantee that if it is later adjudged that an injunction or restraining order had wrongfully been place on the Obligee, that the Principal will pay for and costs or damages that result from these actions having occurred. 
  • Appeal, Supersedeas or Stay of Execution Bonds - guarantee that the Principal will pay to the Obligee the amount of any Judgment plus costs and interest owed by the Principal as a result of a verdict from a lower court while the Principal pursues an appeal of the verdict through the judicial system. Should the verdict be overturned and vacated the bonds is exonerated. In addition to securing the judgment the bond also effectively stays the Obligee’s ability to pursue other legal remedies such as attachment or replevin of the Principal assets, in order to realize the proceeds of the judgment.
  • Fiduciary Bonds - guarantee the faithful performance of an individual appointed by the court to administer the affairs of another individual or firm. Such as the administrator of a deceased's estate that is lacking a will, a guardian or conservator, or a trustee appointed to oversee the reorganization or and administration of a business or individual subject to bankruptcy proceedings. These bonds are filed court as the named Obligee, but generally run for the benefit of anyone with an interest in the assets of the entities being administered.

U.S. Government Bonds

U.S. Government bonds as the name implies guarantee the obligations to the federal government with the two main types being:
  • Customs Bonds - guarantee the payment of custom duties on goods by the responsible parties.
  • Excise Tax Bonds - guarantee that the dealers and manufacturers of products such as alcohol, and cigarette will pay the federal taxes that accrue on these items.

Miscellaneous Bonds

Miscellaneous Bonds generally are described as any private or public bond not readily classified under the other bond types. These bonds are vast in their scope and are often broad coverages whose risk factors and obligations are only defined and ascertained within the underlying obligation being bonded. Quite often, the real obligation being bonded is the compliance to the underlying agreement and in the event of failure to comply, the payment of money to compensate for recouping of losses, or as a penalty for default. These financial guarantee obligations often contain some of the most onerous hazardous and long-term risk factors within the surety industry. Some common Miscellaneous bonds are:
  • Utility Payment Bonds - guarantee the payment of charges owed by the Principal to a Gas, Electric or Water Utility.
  • Lost Instrument Bonds - In exchange for re-issuance of a duplicate replacement of a lost or destroyed financial security, document or check, the Principal and Surety guaranty that the Obligee as the re-issuer and/or any other potential injured third party, such as a holder in due course, will be held harmless as a result of the re-issuance of this replacement security. Many of these types of bonds are open penalty obligations, structured in that manner to account for the potential increases in the value of missing instrument.
  • Workers Compensation Self Insurance Bonds - required by the various state Insurance departments for business that have a self insured portion of their Workers Compensation Insurance programs. These bonds are generally large in size and are subject to strict regulation as to their scope and structure. The risk factors contained in these exposures vary from state to state dependent on the regulations imposed. Many state regulations are structured in such a manner that the Surety exposure under the bond can remain for decades after the termination of the actual bond, due to long term benefit exposures or the states aggregation of any and all security posted under a firms self insurance program.

Public Official Bonds

These bonds are required in many of the public offices held and state county and local levels. If the position is one in which handling of public funds is involved a bond of this type is normally required. These bonds generally guarantee the faithful performance of the duties of the position. These bonds for tax collectors, supervisors and treasurers can be very large in size and may according to the governing regulation require various standards and aspects of performance for similar positions in different jurisdictions. A key aspect to undertaking these risks is the understanding of the financial controls in place for these positions.
http://www.aon.com/usa/products-services/risk-services/bonds-101.jsp

Sunday, December 2, 2012

FOREIGN INVESTMENT COSTING MILLIONS

Thursday, November 29, 2012
Taxpayers are losing up to hundreds of millions of dollars of tax revenue from foreign investment in domestic agriculture, a senate committee says.
The Rural and Regional Affairs and Transport References Committee published its interim report on the tax arrangements for foreign investment in agriculture and the limitations of the Foreign Acquisitions and Takeovers Act 1975.
Committee chair NSW Liberal senator Bill Heffernan said the report into the Foreign Investment Review Board (FIRB) national interest test raised serious concerns of potential huge revenue loss under the current legislation.
'The evidence heard by the inquiry points to hundreds of millions of dollars of Commonwealth revenue being potentially lost through the current vagaries of present tax laws, coupled with the inadequacy of an out of date Foreign Acquisitions and Takeovers Act 1975,' Senator Heffernan said in a statement on Wednesday.
'This report touches on a much bigger issue which governments across the world must tackle the redefining of sovereignty and the impact on our national interest.'
The committee made six recommendations.
These included the government undertake a review of tax arrangements for foreign investors in agriculture to prevent tax revenue leakage.
Other recommendations included a review of local tax laws which provide exemptions for not-for-profit' activities for foreign entities and taxation laws to be reviewed to boost incentives for Australian investment in agriculture so local companies were not at a disadvantage to foreign entities.
Also, a review of the Foreign Acquisitions Takeovers Act 1975 to include a definition of rural land' and urban land' and for FIRB to effectively review foreign investment in Australia.
Concerns about foreign investment were raised following the sale of Queensland cotton farm, Cubbie Station, to a joint Chinese-Japanese consortium in late August.
http://wap.news.bigpond.com/articles/Finance/2012/11/28/Foreign_investment_costs_Aust_millions_821286.html

Saturday, September 29, 2012

US STOCKS TUMBLE AFTER COMMENTS BY FED

AAP September 26, 2012
A FEDERAL Reserve official's doubts about the impact of the QE3 stimulus have pulled the rug from under US stock markets, sending them lower after strong early gains.
The Nasdaq tumbled as major tech stocks sank, with Apple falling 2.5 per cent, Oracle 2.8 per cent, Facebook 2.4 per cent and eBay 2.6 per cent.
At the closing bell the Dow Jones Industrial Average was down 64.87 points (0.48 per cent) at 13,494.05.
The S&P 500 lost 15.12 (1.04 per cent) at 1441.77.
The Nasdaq Composite shed 43.05 points (1.36 per cent) at 3117.73.
Markets opened higher on encouraging data on housing prices and consumer confidence.
But in afternoon trade, comments by Charles Plosser, head of the Fed's Philadelphia branch, appeared to spark a selloff.
Plosser said he was doubtful the QE3 bond-buying program announced earlier this month would have great impact on charging up the US economy, and warned that the Fed could lose credibility.

Tuesday, September 18, 2012

ECONOMIC RATIONALISM HAS NOT FAILED.

Ted Trainer
I am increasingly annoyed at people concluding that economic rationalist policies, or the World Bank's Structural Adjustment policies, or the free market or financial deregulation have failed. If that's what you think then you fail to understand the economic world. You must be assuming a) that the policies were intended and designed to meet the needs of people and the environment, b) that those framing and implementing them are bungling idiots because their strategies somehow always end up devastating the lives of most people and the ecosystems of the planet.
The patently obvious fact is that these policies have been stunningly and astronomically successful. The world economy is run by and for the benefit of a tiny group of extraordinarily rich and powerful people. They determine what will be done primarily through their capacity to invest in those ventures that will be most profitable to themselves. They have no interest whatsoever in the welfare of the people in general or of the planet . (Indeed as David Korten explains in When Corporations Rule the World, any corporation that devotes resources to good causes risks a lower rate of return and therefore opens itself to hostile takeover.) In the past 20 years they have been able to grab unprecedented power and freedom to go anywhere and do anything they wish, greatly assisted by governments whose advisers have had their minds warped by the study of conventional economic theory which takes it for granted that increasing business turnover and the GDP is all that matters.
Structural Adjustment Packages, the rules of the World Trade Organisation, the Multilateral Agreement on Investment proposals, and the economic rationalist philosophy in general are simply the arrangements which suit the big corporations and banks (and their well paid lackeys who do the technical, legal and managerial work). SAPs for example dismantle an economy, junk the unprofitable bits, and enable foreign investors to come in and take over the juicy bits at bargain basement prices, while ensuring the banks get their reckless loans repaid, and that there is increased freedom to get at cheaper labour and forests etc now freed from protection. The corporations can buy Third World resources at devalued prices and more productive capacity can be taken from the poor majority.
Even without SAPs conventional development is little more than an elaborate, legitimised and automatic form of plunder. When development is driven by what will maximise profits and business turnover the inevitable result is that local land, labour and capital are put into producing for the benefit of local elites, transnational corporations and rich world supermarket shoppers. Conventional development is almost totally inappropriate to the basic needs of most people and their ecosystems. We should therefore not be surprised that the UN's Human Development Report for 1966 states that now 1.6 billion people are actually getting poorer each year.
Were you thinking that all this is some kind of unfortunate mistake, that those responsible were really trying to do what benefits people and the environment, but somehow they just keep innocently getting it wrong? The fact is that conventional economic strategies are designed to and succeed brilliantly in delivering most of and an increasing proportion of the world's wealth to the rich few. Globalisation is a process of restructuring the system to give them far greater access to the world's wealth than they had before. The failure is not in economic rationalism; we are the ones who have failed, because we have let them get away with it!
http://socialsciences.arts.unsw.edu.au/tsw/D03EcRatHsNtFaild.html

THE EVIL PRINCES OF MARTIN PLACE - END THE RESERVE BANK

Friday, September 14, 2012

FIRST AUDIT RESULTS IN THE FEDERAL RESERVE’S NEARLY ONE HUNDRED YEAR HISTORY WERE POSTED TODAY, THEY ARE STARTLING!

Saturday, September 1, 2012
Rep. Ron Paul (R-Tex.) wins (again) the most significant victory of his congressional career. He has taken his pet issue since the 1970s–the unwarranted power and secrecy of the Federal Reserve–from something pretty much no one but him cared about six years ago, through a bestselling book and mass movement by 2009, the second time he’s gotten the House of Representatives to vote to widen the government’s powers to audit the Fed’s activities.
Huffington Post with details about the vote  , and on Paul’s Democratic ally equally upset with the Fed’s lack of transparency, Rep. Dennis Kucinich (D-Ohio):
In a rare moment of bipartisanship, the House overwhelmingly passed a bill by Rep. Ron Paul (R-Texas) to audit the Federal Reserve.
The first ever GAO (Government Accountability Office) audit of the Federal Reserve was carried out in the past few months due to the Ron Paul, Alan Grayson Amendment to the Dodd-Frank bill, which passed last year. Jim DeMint, a Republican Senator, and Bernie Sanders, an independent Senator, led the charge for a Federal Reserve audit in the Senate, but watered down the original language of the house bill(HR1207), so that a complete audit would not be carried out.

Bernanke
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Ben Bernanke (pictured to the LEFT), Alan Greenspan, and various other bankers vehemently opposed the audit and lied to Congress about the effects an audit would have on markets. Nevertheless, the results of the first audit in the Federal Reserve’s nearly 100 year history were posted on Senator Sander’s webpage earlier this morning.
What was revealed in the audit was startling:
$16,000,000,000,000.00 had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest. Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious – the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs.
To place $16 trillion into perspective, remember that GDP of the United States is only $14.12 trillion. The entire national debt of the United States government spanning its 200+ year history is “only” $14.5 trillion. The budget that is being debated so heavily in Congress and the Senate is “only” $3.5 trillion. Take all of the outrage and debate over the $1.5 trillion deficit into consideration, and swallow this Red pill: There was no debate about whether $16,000,000,000,000 would be given to failing banks and failing corporations around the world.
In late 2008, the TARP Bailout bill was passed and loans of $800 billion were given to failing banks and companies. That was a blatant lie considering the fact that Goldman Sachs alone received 814 billion dollars. As is turns out, the Federal Reserve donated $2.5 trillion to Citigroup, while Morgan Stanley received $2.04 trillion. The Royal Bank of Scotland and Deutsche Bank, a German bank, split about a trillion and numerous other banks received hefty chunks of the $16 trillion.
“This is a clear case of socialism for the rich and rugged, you’re-on-your-own individualism for everyone else.”- Bernie Sanders (I-VT)
When you have conservative Republican stalwarts like Jim DeMint(R-SC) and Ron Paul(R-TX) as well as self identified Democratic socialists like Bernie Sanders all fighting against the Federal Reserve, you know that it is no longer an issue of Right versus Left. When you have every single member of the Republican Party in Congress and progressive Congressmen like Dennis Kucinich sponsoring a bill to audit the Federal Reserve, you realize that the Federal Reserve is an entity onto itself, which has no oversight and no accountability.
Americans should be swelled with anger and outrage at the abysmal state of affairs when an unelected group of bankers can create money out of thin air and give it out to megabanks and supercorporations like Halloween candy. If the Federal Reserve and the bankers who control it believe that they can continue to devalue the savings of Americans and continue to destroy the US economy, they will have to face the realization that their trillion dollar printing presses will eventually plunder the world economy.
The list of institutions that received the most money from the Federal Reserve can be found on page 131of the GAO Audit and are as follows..
Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)
and many many more including banks in Belgium of all places
View the 266-page GAO audit of the Federal Reserve (July 21st, 2011):
Federal Reserve Chairman Ben S. Bernanke participated in a live webcast of a town hall meeting with educators on Thursday, September 30, 2010 from 2:30-3:30 p.m. EDT. During this session, Chairman Bernanke answered teachers’ questions about the Federal Reserve and the economy.

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Monday, August 20, 2012

ROTHSCHILD AND ROCKEFELLER FAMILIES TEAM UP FOR SOME EXTRA WEALTH CREATION

The Rothschild and Rockefeller families have teamed up to buy assets from banks and other distressed sellers in a union between two of the best-known names in financial history.


RIT Capital Partners, which is chaired by Lord Rothschild, has taken a 37pc stake in Rockefeller Financial Services, the family’s wealth advisory and asset management wing. It has snapped up the holding from French bank Société Générale for less than £100m.
The transatlantic alliance cements a five-decade acquaintance between the now ennobled Jacob Rothschild, 76, and David Rockefeller, 96, the grandson of the ruthlessly acquisitive American oilman and philanthropist John D Rockefeller.
The two patricians now plan to capitalise on their family names to buy other asset managers or their portfolios, using their networks of top-notch contacts to ensure they get a seat at the table for any deal.
“We’ve known each other for a long time, they have a good business,” said Lord Rothschild yesterday. “We haven’t got a presence in the US and this brings together two formidable names in finance.”
He said the two firms planned to capitalise on current market conditions where banks, like SocGen in this instance, are selling non-core assets to rebuild capital ratios. “At a time when big banks are destabilised, there may well be opportunities,” he said. “We could buy an asset management company or grow one. Rockefeller already has $34bn (£21.9bn) assets under administration.”
He said David Rockefeller was still “very involved” in the business, though it is run day to day by chief executive Reuben Jeffery.
The Rockefeller group goes back to 1882, set up to invest the family money made by John D Rockefeller’s Standard Oil, the forerunner for today’s Exxon Corporation, which he built with a Darwinian aggression. “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in,” he once said.
The Rothschild banking dynasty has its roots in the 18th century when Mayer Amschel Rothschild set up a business in Frankfurt.
Lord Rothschild fell out three decades ago with his cousin Sir Evelyn de Rothschild, who then ran the UK branch of the family bank NM Rothschild. That sprang to fame in 1815 when it bought government bonds in anticipation of Napoleon’s defeat at Waterloo.
Lord Rothschild’s relations with the French side of the family have been better though and he likened the Rockefeller deal to RIT’s tie-up earlier this year with the Edmond de Rothschild Group, which has €150bn (£120bn) under management.
“We think that having that span of interests in Europe and America – as well as China – will give us a better chance of finding exceptional investment opportunities,” he said.
RIT, which has net assets £1.9bn, has had a tricky few months with the shares down about 14pc in the past year. They fell 6 today to £11.25.
Lord Rothschild said: “Everyone has been marked down. We didn’t have a brilliant year on the quoted side but we did do very well on the private side,” realising investments in North Sea operator Agora Oil and Gas and credit manager Harbourmaster.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9300784/Rothschild-and-Rockefeller-families-team-up-for-some-extra-wealth-creation.html

GEORGE SOROS SAYS GERMANY HAS THREE MONTHS TO SAVE THE EUROZONE

George Soros, the billionaire investor, has warned Germany it has three months to save the eurozone or risk the destruction of the European Union and a “lost decade”.

George Soros says Germany has three months to save the eurozone
George Soros, the billionaire investor, said Germany would do the least required to save the euro Photo: AP
Speaking at a conference in Italy Mr Soros said the eurozone’s fate lay firmly with Germany, which he urged to agree to measures which would help the region’s ailing banking system and ease borrowing costs among the most troubled member states.
“In my judgment the authorities have a three months’ window during which they could still correct their mistakes and reverse the current trends,” he said.
“By the authorities I mean mainly the German government and the Bundesbank because in a crisis the creditors are in the driver’s seat and nothing can be done without German support.
“In the 1980’s Latin America suffered a lost decade; a similar fate now awaits Europe. That is the responsibility that Germany and the other creditor countries need to acknowledge.”
Mr Soros, who famously made $1bn betting against the pound in 1992, said the Greek crisis would come to a head this autumn.
He argued that although Greek voters were likely on June 17 to elect a government prepared to abide by the austerity terms required to qualify for future bailout funds, the terms would ultimately prove impossible to meet.
“No government can meet the conditions so the Greek crisis is liable to come to a climax in the fall. By that time the German economy will also be weakening so that Chancellor Merkel will find it even more difficult than today to persuade the German public to accept any additional European responsibilities. That is what creates a three months’ window.”
Arguing that the eurozone crisis “threatens to destroy the European Union”, he said the region’s banks would need a European deposit scheme in order to stem the capital flight already evident.
He also supported Spain’s call for the banks to be able to access direct financing from the European Stability Mechanism, the bailout fund, and said heavily indebted countries would need relief on their financing costs.
There are various ways to provide it but they all need the active support of the Bundesbank and the German government.”
Spanish borrowing costs have spiked to unsustainable highs during the crisis while German borrowing costs are at record lows as investors rush to place their money in the safest place.
France, Italy and Spain are in favour of the introduction of so-called eurobonds, which would essentially pool the debt of all eurozone members, spreading risk, but Germany is strongly opposed to the idea.
Mr Soros said that while an orderly break-up of the euro could be possible “in a few years’ time”, the likelihood was that it would survive because a collapse would come at too high a price for Germany.
He said Germany would be left with large unenforceable claims against the periphery countries, with the Bundesbank alone having over a trillion euros of claims against other central banks by the end of this year.
“So Germany is likely to do what is necessary to preserve the euro – but nothing more.” He said Europe would ultimately become “a German empire with the periphery as the hinterland.”
http://www.telegraph.co.uk/finance/financialcrisis/9308964/George-Soros-says-Germany-has-three-months-to-save-the-eurozone.html

LORD ROTHSCHILD TAKES £130M BET AGAINST THE EURO

Lord Rothschild has taken a near-£130m bet against the euro as fears continue to grow that the single currency will break up.

Chairman of RIT Capital Partners, Lord Jacob Rothschild arrives for a reception, hosted by Britain's Prince Charles, at Clarence House in London for the delegates of the Global Investment Conference, Thursday, July 26, 2012.
Lord Rothschild has led RIT since 1988 Photo: AP
The member of the banking dynasty has taken the position through RIT Capital Partners, the £1.9bn investment trust of which he is executive chairman.
The fact that the former investment banker, a senior member of the Rothschild family, has taken such a view will be seen as a further negative for the currency.
The latest omen follows news in The Daily Telegraph late last week that the government of Finland is already preparing for the euro’s break-up.
RIT, which Lord Rothschild has led since 1988, had a -7pc net short position in terms of principal currency exposures on the euro at the end of July, up from -3pc at the end of January. Given a net asset value of £1.836bn at the end of July, the position is worth £128m.
Sources close to RIT suggested that the position was not a dogmatic negative view on the euro as a currency, but rather a realistic approach on a currency that remains relatively weak.
It is not the first time Lord Rothschild has used currency positions as a form of hedge. RIT significantly increased its exposure in sterling after the currency’s decline in 2008, but then scaled back on both the sterling and the euro, anticipating the ensuing recessions in both regions.
Some 53pc of RIT’s assets were in US dollars at the end of July, in part a reflection of its deal to buy a 37pc stake in Rockefeller Financial Services at the end of May.
Lord Rothschild is not alone in seeing value in shorting – or selling down – the euro. At a conference organised by business news channel CNBC in July, Mary Callahan Erdoes, head of JPMorgan Asset Management, said “shorting the euro” when asked for her single best investment idea.
In June, George Soros – the billionaire investor best known in the UK for helping to force sterling out of the European Exchange Rate Mechanism in 1992 by betting against the British currency – said that European leaders at that point had a “three-month window” to save the euro.
http://www.telegraph.co.uk/finance/financialcrisis/9484435/Lord-Rothschild-takes-130m-bet-against-the-euro.html

Saturday, August 18, 2012

MOST WANTED:THE 20 TAX FUGITIVES WHO HAVE CONNED THE GOVERNMENT OUT OF £765MILLION

  • HMRC releases mugshots of Britain's most prolific tax dodgers
  • Some are hiding in Britain while others have fled abroad
By Gerri Peev

Britain's 20 most wanted tax fugitives who have conned the exchequer out of a staggering £765million been named and shamed in an FBI-style government campaign.
HM Revenue & Customs has unmasked the tax cheats in a bid to help hunt them down, issuing photographs and profiles on a new website from this morning.
The most wanted are all tax criminals who have absconded after being charged with a crime or during trial.
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Some are hiding in Britain while others have fled abroad to countries including Switzerland, South Africa and Pakistan.
It is the first time the Revenue has published photos of tax dodgers who are on the run in this way.
Ministers are unapologetic about the crack-down, saying that tax evasion and fraud has cost taxpayers around £10 billion a year.
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Gordon Arthur, 60, left, believed to be in the US since 2000, suspected of illegally importing cigarettes and alcohol and failing to pay around £15 million in duty. Hussain Asad Chohan, 44, right, believed to be in Dubai. Convicted in his absence and sentenced to 11 years for his part in fraud worth around £200 million, which included importing 2.25 tonnes of tobacco

Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Zafar Baidar Chisthi, 33, left, thought to be in Pakistan,  found guilty for his part in VAT fraud worth around £150 million. Cesare Selvini, 52, right, thought to be in Switzerland, is wanted for smuggling platinum bars worth around £600,000.
David Gauke, the Exchequer Secretary, said: ‘The Government is absolutely committed to tackling tax evasion and fraud.
‘These criminals have collectively cost the taxpayer over £765m and HMRC will pursue them relentlessly.
‘We hope that publishing their pictures in this way will enable members of the public to contribute to the effort to catch them.’ 
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Nasser Ahmed, 40, left, believed to be in Pakistan or Dubai, was convicted in 2005 for his role in VAT fraud worth around £156 million. He fled before verdicts were given. Olutayo Owolabi, 40, right, believed to be in the UK, was convicted in January 2010 for 27 charges linked to tax credits and money laundering. The estimated cost to the taxpayer was £1 million.

Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Malcolm McGregor McGowan, 60, left, believed to be in Spain, was found guilty of illegally importing cigarettes worth around £16 million into the UK. Leigang Liang, 38, right, believed to be in the UK, was convictedfor illegally importing tobacco from China, costing taxpayers £2.6 million.

The government has spent £900 million to the Revenue’s enforcement team to try and recover an additional £7 billion in lost tax revenue each year.
Criminals include tobacco smuggling gang leader Leigang Liang, whose shadowy network illegally imported 650 kg of harmful counterfeit tobacco, 300,000 cigarettes and five tonnes of hand-rolling tobacco from China.
His actions are estimated to have cost the taxpayer £2.6 million. He has been sentenced in absence to seven years prison 
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Mohamed Sami Kaak, 45, left, thought to be in Tunisia, is wanted for smuggling millions of cigarettes into the UK between March 2005 and September 2006 and evading around £822,000 in duty. Yehuda Cohen, 35, right, thought to be in Israel, is wanted over VAT fraud worth around £800,000.

Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
John Nugent, 53, left, thought to be in the United States, was accused of putting in fraudulent claims for duty and VAT worth more than £22 million. Vladimir Jeriomin, 34, right, thought to be in Russia or Lithuania, was part of a gang that made false claims for tax repayments costing the taxpayer £4.8 million.
Tax fraudster Darsim Abdullah was part of a 12 man crime group that laundered up to £4million a month from crime. He absconded before he could be convicted and is believed to have fled to Iraq.
His fraud is estimated to be worth £24 million.
Nasser Ahmed has been missing since 2005. He is believed to have fled to Pakistan or Dubai after ripping off taxpayers to the tune of £156 million for a large-scale VAT fraud.
Cesare Selvini is wanted for smuggling platinum bars worth around £600,000. He failed to turn up court when his case came up in Dover eight years ago and is believed to be in Switzerland.
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Wayne Joseph Hardy, 49, left, now believed to be in South Africa, was convicted of manufacturing tobacco products and not paying duty worth £1.9 million. : Dimitri Gaskov, 27, right, thought to be in Estonia, allegedly smuggled three million cigarettes into the UK using computers. He fled before trial at Ipswich Crown Court.

Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Adam Umerji - aka Shafiq Patel, 34, left, thought to be in Dubai, was jailed for 12 years for VAT fraud and money laundering that cost the taxpayer £64 million. Darsim Abdullah, 42, right, believed to be in Iraq, was convicted for being part of a money laundering gang that processed £1 million to £4 million per month.
Olutayo Owolabi is still believed to be at large in Britain after being convicted for 27 offences relating to tax credits and money laundering.
Sixteen tonnes of raw leaf tobacco were smuggled into Britain by Wayne Joseph Hardy.
The fugitive and others sourced a tobacco manufacturing and rolling machine.They have dodged tax worth around £2 million.
Hardy is believed to have fled to South Africa.
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Timur Mehmet, 39, left, believed to be in Cyprus, is wanted over a £25 million VAT fraud. Emma Elizabeth Tazey, 38, right, is believed to be in America, wanted for illegally importing cigarettes worth £15 million

Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Wall of shame: Her Majesty's Revenue and Customs (HMRC) most-wanted list of 20 alleged tax-dodgers
Sahil Jain, 30, left, believed to be in the UK, was arrested over alleged VAT fraud worth around £328,000 but failed to appear at the Old Bailey. Rory Martin McGann, 43, right, believed to be in Northern Ireland or the Republic of Ireland, is wanted for alleged VAT fraud worth more than £902,000.
Emma Elizabeth Tazey and Gordon Arthur are both wanted for a £15 million rip-off involving cigarettes and alcohol. They are believed to be in America.
Large-scale VAT fraudster Zafar Baidar Chisthi is thought to have absconded to Pakistan after ripping of taxpayers to the tune of £150 million.
He was sentenced to 11 years imprisonment for conspiracy to defraud the public purse and one year for perverting the course of justice in his absence.
The pictures are available on HMRC’s Flickr page at www.flickr.com/hmrcgovuk.
http://www.dailymail.co.uk/news/article-2188991/Most-wanted-The-20-tax-fugitives-conned-government-765million.html?ICO=most_read_module

Wednesday, July 25, 2012

SECRET SUMMIT OF TOP BANKERS

THE world's top central bankers began arriving in Australia yesterday as renewed fears about the strength of the global economic recovery gripped world share markets. Representatives from 24 central banks and monetary authorities including the US Federal Reserve and European Central Bank landed in Sydney to meet tomorrow at a secret location, the Herald Sun reports.
Organised by the Bank for International Settlements last year, the two-day talks are shrouded in secrecy with high-level security believed to have been invoked by law enforcement agencies.
Speculation that the chairman of the US Federal Reserve, Dr Ben Bernanke, would make an appearance could not be confirmed last night.
The event will be dominated by Asian delegations and is expected to include governors of the Peoples Bank of China, the Bank of Japan and the Reserve Bank of India.
The arrival of the high-powered gathering coincided with a fresh meltdown on world sharemarkets, sparked by renewed concerns about global growth and sovereign debt.
Fears countries including Greece, Portugal, Spain and Dubai could default on debt repayments combined with disappointing US jobs data to spook investors.
Australia's ASX 200 slumped 2.4 per cent, to a its lowest close since November 5, echoing a sharp fall on Wall Street.
Asian share markets were also pummelled, with Japan's Nikkei 225 down almost 3 per cent and Hong Kong's Hang Seng slumping 3.3 per cent.
The damage was also being felt by European markets last night with London's FTSE 100 down sagging 1 per cent in early trade.
Sovereign debt fears rippled through to the Australian dollar which was hammered to a four-month low of US86.43 and was trading at US86.77 cents last night.
"This does feel like '08 and '07 all over again whereby we had these sort of little fires pop up and they are supposedly contained but in reality they are not quite contained,'' said H3 Global Advisors chief executive Andrew Kaleel.
"Dubai should have been an isolated incident and now we are seeing issues with Greece, Portugal and Spain.''
It wasn't all bad news with the RBA yesterday upping its Australian growth forecasts and flagging more interest rate rises this year.
The central bank estimates the economy grew 2 per cent in 2009, and will expand by 3.25 per cent in 2010, and by 3.5 per cent in 2011.
The outlook for global growth is likely to be a key theme of the high level central bank talks.
The gathering also comes at an important time for the BIS as it initiates an overhaul of the global banking system which will include new capital rules applying to banks and more stringent standards regulating executive pay.
A key part of the two-day talkfest will be a special meeting of Asian central bankers chaired by the governor of the Central Bank of Malaysia, Dr Zeti Akhtar Aziz.
Influential BIS general manager Jaime Caruana is also expected to take a prominent role in the talks.
Federal Treasurer Wayne Swan will address the central bank officials at a dinner on Monday night.

Wednesday, July 11, 2012

SHIVER ME TIMBERS! THE BANKERS ARE BOARDING


Mon Jun 25, 2012 5:48am EDT
* Banks seizing ships from defaulting owners
* Banks putting in ship operators to avoid selling at loss
* Shipping market in fourth year of turmoil
* Ship values hit by overcapacity
LONDON, June 25 (Reuters) - With the crisis in the shipping market now in its fourth year, bankers are putting to sea and seizing ships to protect the value of their loans to struggling shipowners.
Lenders to the shipping trade, themselves lashed by the euro zone crisis, are recruiting management companies to take over and operate defaulting owners' ships rather than sell them at a heavy loss or take a writedown on their loan books.
Earlier this month, Credit Suisse and a group of Chinese banks seized seven tankers from Singapore's Dongfang Shipbuilding to pay outstanding debts of around $250 million after the Singapore Supreme Court ruled in favour of the creditors.
"The banks have so many problem loans today - at a time of extreme political, social and regulatory pressure - that they don't know which way to turn," said Nigel Prentis, head of research, consulting and advisory with HSBC Shipping Services Ltd.
UK-headquartered Bibby Ship Management is among companies aiming to capitalise on the slump by offering to run vessels for a fee, including chartering out a ship on behalf of a bank. The group said it was in talks with a number of European banks.
"What we do is come in and provide technical management of the vessel and provide a full crew to run the vessel and get it to a standard where it is fit for resale by the bank or whatever they want to do," said Bibby's business development manager Brian Williams.
Bibby has teamed up with asset recovery specialist Marine Risk Management (MRM), whose staff includes former special forces personnel, which can arrest a vessel from its owner on behalf of a bank and sail it to another jurisdiction with a letter of authority from an admiralty court.
"The biggest difference to the 1980s, which was the last major crisis, is the value of the assets could be up to 10 times higher (than then), which is why banks have been reluctant up to now to force anything in the hope that the market was going to recover. Clearly that's not going to happen, and banks are looking at taking other action now," MRM's chief executive John Dalby said.
"We are providing them with an option to technically and commercially manage a vessel and then sell it as a going concern subsequently. The alternative is writing off massive loans, which is not something anyone wants to do in this climate."
OVERCAPACITY
Surplus capacity due to brisk ordering during the boom years has pushed the nominal resale value of a supertanker, used to transport crude oil, has fallen to around the $90 million level from $162 million in 2008.
The value of a capesize ship, one of the largest carriers of dry bulk commodities such as iron and coal, has also slumped to $44 million from just under $100 million in 2008.
"Many banks are thought to have contingency plans to take over ships and run them through the cycle rather than further undermine values with an auction process," said HSBC's Prentis said.
"The correction in values has been enough to wipe out equity in many cases, meaning that many ships will be worth less than the outstanding loan: negative equity. Hence, this is a problem for many European banks. Faced with big writedowns, on top of haircuts on peripheral euro zone bonds, they have generally chosen forbearance."
European lenders in particular are under growing pressure to cut their exposure to risky and dollar-denominated assets such as ship and trade finance to meet tougher capital rules and shore up reserves.
Global syndicated lending to the shipping sector slumped to $245 million in the second quarter of this year, down from over $1.6 billion in the first quarter and over $3.9 billion in the second quarter of 2011, Thomson Reuters LPC data showed.
"There is still pain on the horizon because of the deliveries and because of the slowing economy," said Harris Antoniou, managing director, energy, commodities & transportation with ABN AMRO Bank.
German ship operator Oldendorff Carriers is another group in talks with banks over providing them with options.
"These days we are offering banks to 'park' the ships with us ... where we effectively take care of the technical and commercial management," said its chairman Henning Oldendorff.
"It is very straightforward and transparent. If the banks want to sell the ship, we can terminate the charter."
A number of European banks, including France's two biggest listed banks Societe Generale and BNP Paribas , are looking to wind down their shipping books.
Industry officials say short-term asset plays such as hiring managers buys more time for banks.
"Banks are not ship owners, and therefore do not want to own lots of ships," said Keith McRae with DVB Bank's restructuring and asset management unit. "You may have to warehouse a ship for a period of time, but that's not a business plan for a bank - it's an expedient measure."
One of Germany's biggest lenders Commerzbank has already acted, mandating shipping firms to run vessels for the bank.
"We have seen a few ships which have been transferred to special purpose vehicles with the purpose of getting them into service again so that they can earn money and pay down loans," a spokeswoman with its shipping arm Deutsche Schiffsbank said.
"Naturally, we would like to see external shipping companies in such a company as they have the best knowledge of how to run these ships."
SHIP ARRESTS TO RISE
While banks have aimed to avoid ship seizures, the worsening conditions and growing frustration will lead to more vessel arrests, industry sources say.
An arrest occurs when a ship is detained by a court order to secure a maritime claim. The arrest may ultimately result in a judicial sale of the ship to pay the claim.
"Arresting vessels is an action of last resort for banks," said Basil Karatzas, chief executive of Karatzas Marine Advisors & Co, which is active on the bank advisory side.
In another sign of worsening conditions, Newlead Holdings Ltd said in May four vessels in its fleet were seized by lenders to pay for debt as part of restructuring efforts by the struggling Greek shipping group.
"Banks are starting to realise that it's going to get worse and they must change their game plan," MRM's Dalby said.
'All hands on deck' is the lenders' new rallying cry.

Sunday, July 8, 2012

FED MEMBERS GAVE THEIR OWN BANKS FOUR TRILLION DURING BAILOUT


A report just released by the US Government Accountability Office explains how the Federal Reserve divvied up more than $4 trillion in low-interest loans after the fiscal crisis of 2008, and the news shouldn’t be all that surprising.
When the Federal Reserve looked towards bailing out some of the biggest banks in the country, more than one dozen of the financial institutions that benefited from the Fed’s Hail Mary were members of the central bank’s own board, reports the GAO. At least 18 current and former directors of the Fed’s regional branches saw to it that their own banks were awarded loans with often next-to-no interest by the country’s central bank during the height of the financial crisis that crippled the American economy and spurred rampant unemployment and home foreclosures for those unable to receive assistance.
Although the crisis continues to have an effect on Americans that were devastated by the recession, the banks that survived the near meltdown were largely able to do so because some of their CEOs sat on the same Federal Reserve board the decided on how to dish out trillions of dollars.
“This report reveals the inherent conflicts of interest that exist at the Federal Reserve,” Sen. Bernie Sanders (I-Vermont) says in a statement about the report. “At a time when small businesses could not get affordable loans to create jobs, the Fed was providing trillions in secret loans to some of the largest banks and corporations in America that were well represented on the boards of the Federal Reserve Banks,” adds Mr. Sanders. “These conflicts must end.”
The GAO’s report is believed to mark the first time that the Fed’s records about their major bailout identifying the parties involved to the public.
In a press release published on the official US Senate website for Mr. Sanders, the lawmakers singles out JPMorgan Chase CEO Jamie Dimon over an alleged conflict of interest that could have contributed to the bailout his bank received through the Fed. Sanders also calls out General Electric CEO Jefferey Immelt for sitting on the same Federal Reserve board that approved massive funding to GE during a time of financial insecurity in the United States.
Sen. Sanders’ office has released a report summarizing the information published by the GAO in a four page document hosted on his website titled “Jamie Dimon Is Not Alone.”
“Jamie Dimon, the Chairman a CEO of JPMorgan Chase, has served on the Board of Directors at the Federal Reserve Bank of New York since 2007,” the report mentions. “During the financial crisis, the Fed provided JPMorgan Chase with $391 billion in total financial assistance. JPMorgan Chase was also used by the Fed as a clearinghouse for the Fed’s emergency lending programs.”
One year later, the report notes, the Fed handed Dimon’s bank $29 billion to help acquire Bear Stearns. In the case of General Electric’s Immelt, Sanders recalls that the Fed handed over $16 billion in low-interest financing to GE during the five-year span that the company’s CEO sat on the Federal Reserve’s board of directors.
Other Fed members that benefited by the bailout include officials at the top of Citigroup, Lehman Brothers, SunTrust Banks and PNC, among others.
Testifying before the US Senate Banking Committee this week, Dimon apologized for a recent JP Morgan Chase in-trading gaffe that cost the institute billions.
FirmBailout amount
Citigroup$2.5 Trillion
Goldman Sachs$814 Billion
JP Morgan$391 Billion
Lehman Brothers$183 Billion
State Street Corporation$42 Billion
KeyCorp$40 Billion
Marshall & Ilsley$21 Billion
Citibank$21 Billion
General Electric (GE)$16 Billion
Sun Trust$7.5 Billion
PNC$6.5 Billion
Texas Capital Bank$2.3 Billion
Webster Bank$2.2 Billion
Popular Inc$1.2 Billion
Wilmington Trust$550 Million
LegacyTexas$5 Million
Here’s the text of the PDF summary released by Senator Sanders highlighting the culprits identified in the GAO audit on the Federal Reserve’s conflicts of interest.
Jamie Dimon Is Not Alone
During the financial crisis, at least 18 former and current directors from Federal Reserve Banks worked in banks and corporations that collectively received over $4 trillion in low-interest loans from the Federal Reserve.
U.S. Senator Bernard Sanders (I-Vt.) Washington, D.C. June 12, 2012
1. Jamie Dimon, the Chairman and CEO of JP Morgan Chase, has served on the Board of Directors at the Federal Reserve Bank of New York since 2007. During the financial crisis, the Fed provided JP Morgan Chase with $391 billion in total financial assistance. JP Morgan Chase was also used by the Fed as a clearinghouse for the Fed’s emergency lending programs.
In March of 2008, the Fed provided JP Morgan Chase with $29 billion in financing to acquire Bear Stearns. During the financial crisis, the Fed provided JP Morgan Chase with an 18-month exemption from risk-based leverage and capital requirements. The Fed also agreed to take risky mortgage-related assets off of Bear Stearns balance sheet before JP Morgan Chase acquired this troubled investment bank.
2. Jeffrey Immelt, the CEO of General Electric, served on the New York Fed’s Board of Directors from 2006-2011. General Electric received $16 billion in low- interest financing from the Federal Reserve’s Commercial Paper Funding Facility during this time period.
3. Stephen Friedman. In 2008, the New York Fed approved an application from Goldman Sachs to become a bank holding company giving it access to cheap Fed loans. During the same period, Friedman, who was chairman of the New York Fed at the time, sat on the Goldman Sachs board of directors and owned Goldman stock, something the Fed’s rules prohibited. He received a waiver in late 2008 that was not made public. After Friedman received the waiver, he continued to purchase stock in Goldman from November 2008 through January of 2009 unbeknownst to the Fed, according to the GAO. During the financial crisis, Goldman Sachs received $814 billion in total financial assistance from the Fed.
4. Sanford Weill, the former CEO of Citigroup, served on the Fed’s Board of Directors in New York in 2006. During the financial crisis, Citigroup received over $2.5 trillion in total financial assistance from the Fed.
5. Richard Fuld, Jr, the former CEO of Lehman Brothers, served on the Fed’s Board of Directors in New York from 2006 to 2008. During the financial crisis, the Fed provided $183 billion in total financial assistance to Lehman before it collapsed.
 
6. James M. Wells, the Chairman and CEO of SunTrust Banks, has served on the Board of Directors at the Federal Reserve Bank in Atlanta since 2008. During the financial crisis, SunTrust received$7.5 billion in total financial assistance from the Feds 
7. Richard Carrion, the head of Popular Inc. in Puerto Rico, has served on the Board of Directors of the Federal Reserve Bank of New York since 2008. Popular received $1.2 billion in total financing from the Fed’s Term Auction Facility during the financial crisis.
8. James Smith, the Chairman and CEO of Webster Bank, served on the Federal Reserve’s Board of Directors in Boston from 2008-2010. Webster Bank received $550 million in total financing from the Federal Reserve’s Term Auction Facility during the financial crisis.
 
9. Ted Cecala, the former Chairman and CEO of Wilmington Trust, served on the Fed’s Board of Directors in Philadelphia from 2008-2010. Wilmington Trust received $3.2 billion in total financial assistance from the Federal Reserve during the financial crisis.
10. Robert Jones, the President and CEO of Old National Bancorp, has served on the Fed’s Board of Directors in St. Louis since 2008. Old National Bancorp received a total of $550 millionin low-interest loans from the Federal Reserve’s Term Auction Facility during the financial crisis.
11. James Rohr, the Chairman and CEO of PNC Financial Services Group, served on the Fed’s Board of Directors in Cleveland from 2008-2010. PNC received $6.5 billion in low-interest loans from the Federal Reserve during the financial crisis. 
12. George Fisk, the CEO of LegacyTexas Group, was a director at the Dallas Federal Reserve in 2009. During the financial crisis, his firm received a $5 million low-interest loan from the Federal Reserve’s Term Auction Facility. 
13. Dennis Kuester, the former CEO of Marshall & Ilsley, served as a board director on the Chicago Federal Reserve from 2007-2008. During the financial crisis, his bank received over $21 billionin low-interest loans from the Fed. 
14. George Jones, Jr., the CEO of Texas Capital Bank, has served as a board director at the Dallas Federal Reserve since 2009. During the financial crisis, his bank received $2.3 billion in total financing from the Fed’s Term Auction Facility.
15. Douglas Morrison, was the Chief Financial Officer at CitiBank in Sioux Falls, South Dakota, while he served as a board director at the Minneapolis Federal Reserve Bank in 2006. During the financial crisis, CitiBank in Sioux Falls, South Dakota received over$21 billion in total financing from the Federal Reserve.
16. L. Phillip Humann, the former CEO of SunTrust Banks, served on the Board of Directors at the Federal Reserve Bank in Atlanta from 2006-2008. During the financial crisis, SunTrust received$7.5 billion in total financial assistance from the Fed. 
17. Henry Meyer, III, the former CEO of KeyCorp, served on the Board of Directors at the Federal Reserve Bank in Cleveland from 2006-2007. During the financial crisis, KeyBank (owned by KeyCorp) received over $40 billion in total financing from the Federal Reserve. 
18. Ronald Logue, the former CEO of State Street Corporation, served as a board member of the Boston Federal Reserve Bank from 2006-2007. During the financial crisis, State Street Corporation received a total of $42 billion in financing from the Federal Reserve.

http://worldtruth.tv/fed-members-gave-their-own-banks-4-trillion-during-bailout/