Wednesday, August 5, 2009
"Bank of America Corp. is operating under a secret regulatory sanction that requires it to overhaul its board and address perceived problems with risk and liquidity management, according to people familar with the situation. Rarely disclosed publicly, the so-called memorandum of understanding gives banks a chance to work out their problems without the glare of outside attention. Financial institutions that fail to address deficiencies can be slapped with harsher penalties that include a publicly announced cease and desist order. ... The MOU is the most serious procedural action taken against [BofA] by federal regulators since the financial crisis erupted. Citigroup has been operating since last year under a similar order with the Office of the Comptroller of the Currency, according to people familiar with the matter. ... These people say the pact with the FDIC, which relates to the company's plans to shed assets and improve its corporate governance, among other things, essentially reinforces a strategy already underway at the financial giant. ... In late January, the [Fed] and the [OCC] downgraded their overall ratings of the bank to 'fair' from 'satisfactory,' according to people familar with the matter", Dan Fitzpatrick at the WSJ, 16 July 2009, link: http://online.wsj.com/article/SB124771415436449393.html.
January, isn't that after the recent Henry Paulson-Zimbabwe Ben (ZB) Ken Lewis "armtwist"? What's going on here? This article was titled, "US Regulators to BofA: Obey or Else". ZB now reveals himself to be a Trotskyite, Leon said, "The old principle he who does not work shall not eat, has been replaced with a new one: who does not obey shall not eat". Does this apply to Goldman too? Perhaps the ZB-POTUS Obama combine is really Leninist, "The best way to destroy the capitalist system is to debauch the currency" and "The way to crush the bourgeoise is to grind them between the millstones of taxation and inflation". Thank you Lenin. What about proposal POTUS Obama's healthcare proposal? See also my 20 October 2008 post: http://skepticaltexascpa.blogspot.com/2008/10/agents-of-influence.html. Well Eric Holder, do you believe it inappropriate for a publicly-held company to fail to disclose a MOU? Will indictments follow? See also my 18 June 2008 post: http://skepticaltexascpa.blogspot.com/2008/06/occ-vs-sec.html.