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Fed loans to Real Housewives of Wall Street

There's a very interesting new piece in Rolling Stone on some of what has come out from the info released to Congress about the Fed.


From the article:
But if you want to get a true sense of what the "shadow budget" is all about, all you have to do is look closely at the taxpayer money handed over to a single company that goes by a seemingly innocuous name: Waterfall TALF Opportunity. At first glance, Waterfall's haul doesn't seem all that huge — just nine loans totaling some $220 million, made through a Fed bailout program. That doesn't seem like a whole lot, considering that Goldman Sachs alone received roughly $800 billion in loans from the Fed. But upon closer inspection, Waterfall TALF Opportunity boasts a couple of interesting names among its chief investors: Christy Mack and Susan Karches.

Christy is the wife of John Mack, the chairman of Morgan Stanley. Susan is the widow of Peter Karches, a close friend of the Macks who served as president of Morgan Stanley's investment-banking division. Neither woman appears to have any serious history in business, apart from a few philanthropic experiences. Yet the Federal Reserve handed them both low-interest loans of nearly a quarter of a billion dollars through a complicated bailout program that virtually guaranteed them millions in risk-free income.

The technical name of the program that Mack and Karches took advantage of is TALF, short for Term Asset-Backed Securities Loan Facility. But the federal aid they received actually falls under a broader category of bailout initiatives, designed and perfected by Federal Reserve chief Ben Bernanke and Treasury Secretary Timothy Geithner, called "giving already stinking rich people gobs of money for no fucking reason at all." If you want to learn how the shadow budget works, follow along. This is what welfare for the rich looks like.

In August 2009, John Mack, at the time still the CEO of Morgan Stanley, made an interesting life decision. Despite the fact that he was earning the comparatively low salary of just $800,000, and had refused to give himself a bonus in the midst of the financial crisis, Mack decided to buy himself a gorgeous piece of property — a 107-year-old limestone carriage house on the Upper East Side of New York, complete with an indoor 12-car garage, that had just been sold by the prestigious Mellon family for $13.5 million. Either Mack had plenty of cash on hand to close the deal, or he got some help from his wife, Christy, who apparently bought the house with him.

The Macks make for an interesting couple. John, a Lebanese-American nicknamed "Mack the Knife" for his legendary passion for firing people, has one of the most recognizable faces on Wall Street, physically resembling a crumpled, half-burned baked potato with a pair of overturned furry horseshoes for eyebrows. Christy is thin, blond and rich — a sort of still-awake Sunny von Bulow with hobbies. Her major philanthropic passion is endowments for alternative medicine, and she has attained the level of master at Reiki, the Japanese practice of "palm healing." The only other notable fact on her public résumé is that her sister was married to Charlie Rose.

It's hard to imagine a pair of people you would less want to hand a giant welfare check to — yet that's exactly what the Fed did. Just two months before the Macks bought their fancy carriage house in Manhattan, Christy and her pal Susan launched their investment initiative called Waterfall TALF. Neither seems to have any experience whatsoever in finance, beyond Susan's penchant for dabbling in thoroughbred racehorses. But with an upfront investment of $15 million, they quickly received $220 million in cash from the Fed, most of which they used to purchase student loans and commercial mortgages. The loans were set up so that Christy and Susan would keep 100 percent of any gains on the deals, while the Fed and the Treasury (read: the taxpayer) would eat 90 percent of the losses. Given out as part of a bailout program ostensibly designed to help ordinary people by kick-starting consumer lending, the deals were a classic heads-I-win, tails-you-lose investment.

Read the whole thing HERE.

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The biggest problem with TARP is giving mass amounts of $$

to entire families of sociopathic, severley detached from nature CIA families.
It was the "left over" nazi's that continued the curse of fascism in South America, in preparation for the weaponization of immigrants in america, you know, Obama's distracting race baiting and entitlement bull shit.
More women without knowlege of yarn and thread thinking they know how to make a quilt.

"The circus is in town
but they intend to stay;
Treason is in season
what the lobby signs say;
The garden party sycophant
ignorance on display,
Severely detached from nature,
there are no bees today."
- RawfoodLiberty
Intuitive to most humans, the earth is living, breathing entity.

And never forget, “Humans, despite our artistic pretensions, our sophistication and many accomplishments, owe the fact of our existence to a six-inch layer of topsoil and the fact that it rains.”

ya oooooooooooooh ok

so the fed is not a part of the government. oops, no. fed and government pass bailout, but no, blame the market. head 1-government wins, tails market loses

and why are you writing this instead of bashing the pauls as usual. i thot thats your real job.

Very Sad

Why is Rolling Stone....a Rock n Roll magazine leading the way in investigative journalism in the way of government corruption? Is it because they are not governed or controlled by the CFR or the Pentagon?


Rolling Stone is liberal but not establishment

It has pretty much always been such since the beginning. I think it helps a great deal that Rolling Stone has been owned by the same guy the entire time (Jann Wenner)and never got sucked into the big corporate media conglomerates like Time Warner. It also helps that it's not a daily operation like a newspaper so it can draw out investigations.

Also, when it comes to the Fed, it's worth noting that there is a lot of history there in terms of RS reporters looking into it.
William Greider was an investigative journalist with RS when he wrote "Secrets of the Temple" about the Fed back in the 80s.

good liberal/bad liberal

is like good cop/bad cop belonging to one and the same corrupt police station.. there is no difference. everyone else would be better off without either or both.