US Treasury And Federal Reserve said last spring that there would be a little “sluggishness” in the economy even while admitting to the structural cracks in the foundation of the economy – did they not understand the principles of “growth” and substance? or what?

Cavuto on FoxNews is busily talking about the Republican’s plan to pursue the “underground economy” in order to close the budget gap. It doesn’t matter that their friends are stealing millions of dollars in taxpayer money every day and have been doing that for thirty years, apparently they think the poor people have caused the problems – as usual.

- my note

***

April 15th, 2008

Fourth largest US bank posts losses, seeks $7-bn infusion

April 15th, 2008 – 12:57 am ICT by admin

DPA
New York, April 14 (DPA) Wachovia Corp, the fourth largest US bank, Monday reported unexpected losses due to bad California home loans and said it was seeking a $7-billion infusion from stock sales. Shares will be sold at $24 each, 14 percent less than last week’s closing price.

First quarter losses were $393 million compared with earnings of $2.3 billion in the same period last year, the North Carolina-based company said in a statement.

The drastic drop is just the latest in the roiling sub-prime mortgage credit crisis in the US that has spread through the US and abroad. The International Monetary Fund last week estimated that the total world loss from the crisis could be near $1 trillion when all is said and done.

Wachovia plans to cut 500 investment-banking jobs, and will cut dividends to preserve $2 billion in capital, according to an analyst’s report from Goldman Sachs Group Inc.

Washington Mutual Inc, the largest US savings and loan, got $7 billion last week from investors led by David Bonderman’s TPG Inc.

In all, banks and securities firms, including Citigroup Inc and Lehman Brothers Holdings Inc, have raised about $140 billion since last year after more than $245 billion of losses tied to the collapse of the sub-prime mortgage market, according to data compiled by Bloomberg financial news.
DPA

http://www.thaindian.com/newsportal/business/fourth-largest-us-bank-posts-losses-seeks-7-bn-infusion_10037982.html

***

Testimony

Chairman Ben S. Bernanke

The economic outlook

Before the Committee on the Budget, U.S. House of Representatives

** January 17, 2008 **

Chairman Spratt, Representative Ryan, and other members of the Committee, I am pleased to be here to offer my views on the near-term economic outlook and related issues.

Developments in Financial Markets
Since late last summer, financial markets in the United States and in a number of other industrialized countries have been under considerable strain.  Heightened investor concerns about the credit quality of mortgages, especially subprime mortgages with adjustable interest rates, triggered the financial turmoil.

Notably, as the rising rate of delinquencies of subprime mortgages threatened to impose losses on holders of even highly rated securities, investors were led to question the reliability of the credit ratings for a range of financial products, including structured credit products and various special-purpose vehicles.  As investors lost confidence in their ability to value complex financial products, they became increasingly unwilling to hold such instruments.  As a result, flows of credit through these vehicles have contracted significantly.

As these problems multiplied, money center banks and other large financial institutions, which in many cases had served as sponsors of these financial products, came under increasing pressure to take the assets of the off-balance-sheet vehicles onto their own balance sheets.  Bank balance sheets were swelled further by holdings of nonconforming mortgages, leveraged loans, and other credits that the banks had extended but for which well-functioning secondary markets no longer existed.

Even as their balance sheets expanded, banks began to report large losses, reflecting marked declines in the market prices of mortgages and other assets.  Thus, banks too became subject to valuation uncertainty, as could be seen in the sharp movements in their share prices and in other market indicators such as quotes on credit default swaps.

The combination of larger balance sheets and unexpected losses prompted banks to become protective of their liquidity and balance sheet capacity and thus to become less willing to provide funding to other market participants, including other banks.  Banks have also evidently become more restrictive in their lending to firms and households.  More-expensive and less-available credit seems likely to impose a measure of restraint on economic growth.

The Outlook for the Real Economy
To date, the largest effects of the financial turmoil appear to have been on the housing market, which, as you know, has deteriorated significantly over the past two years or so.  The virtual shutdown of the subprime mortgage market and a widening of spreads on jumbo mortgage loans have further reduced the demand for housing, while foreclosures are adding to the already-elevated inventory of unsold homes.

New home sales and housing starts have both fallen by about half from their respective peaks.  The number of homes in inventory has begun to edge down, but at the current sales pace the months’ supply of new homes has continued to climb, and home prices are falling in many parts of the country.  The slowing in residential construction, which subtracted about 1 percentage point from the growth rate of real gross domestic product in the third quarter of 2007, likely curtailed growth even more in the fourth quarter, and it may continue to be a drag on growth for a good part of this year as well.

Recently, incoming information has suggested that the baseline outlook for real activity in 2008 has worsened and that the downside risks to growth have become more pronounced.  In particular, a number of factors, including continuing increases in energy prices, lower equity prices, and softening home values, seem likely to weigh on consumer spending as we move into 2008.

Consumer spending also depends importantly on the state of the labor market, as wages and salaries are the primary source of income for most households. Labor market conditions in December were disappointing; the unemployment rate increased 0.3 percentage point, to 5.0 percent from 4.7 percent in November, and private payroll employment declined. Employment in residential construction posted another substantial reduction, and employment in manufacturing and retail trade also decreased significantly.  Employment in services continued to grow, but at a slower pace in December than in earlier months.  It would be a mistake to read too much into one month’s data.  However, developments in the labor market will bear close attention.

In the business sector, investment in equipment and software appears to have been sluggish in the fourth quarter, while nonresidential construction grew briskly.  In light of the softening in economic activity and the adverse developments in credit markets, growth in both types of investment spending seems likely to slow in coming months.  Outside the United States, however, economic activity in our major trading partners has continued to expand vigorously.  U.S. exports will likely continue to grow at a healthy pace in coming quarters, providing some impetus to the domestic economy.

Financial conditions continue to pose a downside risk to the outlook.  Market participants still express considerable uncertainty about the appropriate valuation of complex financial assets and about the extent of additional losses that may be disclosed in the future.  On the whole, despite improvements in some areas, the financial situation remains fragile, and many funding markets remain impaired.  Adverse economic or financial news thus has the potential to increase financial strains and to lead to further constraints on the supply of credit to households and businesses.

Even as the outlook for real activity has weakened, some important developments have occurred on the inflation front.  Most notably, the same increase in oil prices that may be a negative influence on growth is also lifting overall consumer prices.

Last year, food prices also increased exceptionally rapidly by recent standards, further boosting overall consumer price inflation. The most recent reading on overall personal consumption expenditure inflation showed that prices in November were 3.6 percent higher than they were a year earlier.  Core price inflation (which excludes prices of food and energy) has stepped up recently as well, with November prices up almost 2-1/4 percent from a year earlier.  Part of this rise may reflect pass-through of energy costs to the prices of core consumer goods and services, as well as the effects of the depreciation of the dollar on import prices, although some other prices–such as those for some medical and financial services–have also accelerated lately.¹

Thus far, the public’s expectations of future inflation appear to have remained reasonably well anchored, and pressures on resource utilization have diminished a bit.  Further, futures markets suggest that food and energy prices will decelerate over the coming year.  Given these factors, overall and core inflation should moderate this year and next, so long as the public’s confidence in the Federal Reserve’s commitment to price stability is unshaken.

However, any tendency of inflation expectations to become unmoored or for the Fed’s inflation-fighting credibility to be eroded could greatly complicate the task of sustaining price stability and reduce the central bank’s policy flexibility to counter shortfalls in growth in the future.  Accordingly, in the months ahead we will be closely monitoring the inflation situation, particularly inflation expectations.

Monetary Policy Response
The Federal Reserve has taken a number of steps to help markets return to more orderly functioning and to foster its economic objectives of maximum sustainable employment and price stability.  Broadly, the Federal Reserve’s response has followed two tracks:  efforts to improve market liquidity and functioning and the pursuit of our macroeconomic objectives through monetary policy.

To help address the significant strains in short-term money markets, the Federal Reserve has taken a range of steps.  Notably, on August 17, the Federal Reserve Board cut the discount rate–the rate at which it lends directly to banks–by 50 basis points, or 1/2 percentage point, and it has since maintained the spread between the federal funds rate and the discount rate at 50 basis points, rather than the customary 100 basis points.

In addition, the Federal Reserve recently unveiled a term auction facility, or TAF, through which prespecified amounts of discount window credit can be auctioned to eligible borrowers.  The goal of the TAF is to reduce the incentive for banks to hoard cash and increase their willingness to provide credit to households and firms. In December, the Fed successfully auctioned $40 billion through this facility.  And, as part of a coordinated operation, the European Central Bank and the Swiss National Bank lent an additional $24 billion to banks in their respective jurisdictions. 

This month, the Federal Reserve is auctioning $60 billion in twenty-eight-day credit through the TAF, to be spread across two auctions.  TAF auctions will continue as long as necessary to address elevated pressures in short-term funding markets, and we will continue to work closely and cooperatively with other central banks to address market strains that could hamper the achievement of our broader economic objectives.

Although the TAF and other liquidity-related actions appear to have had some positive effects, such measures alone cannot fully address fundamental concerns about credit quality and valuation, nor do these actions relax the balance sheet constraints on financial institutions.  Hence, they alone cannot eliminate the financial restraints affecting the broader economy.  Monetary policy (that is, the management of the short-term interest rate) is the Fed’s best tool for pursuing our macroeconomic objectives, namely to promote maximum sustainable employment and price stability.

Monetary policy has responded proactively to evolving conditions.  As you know, the Federal Open Market Committee (FOMC) cut its target for the federal funds rate by 50 basis points at its September meeting and by 25 basis points each at the October and December meetings.  In total, therefore, we have brought the federal funds rate down by 1 percentage point from its level just before the financial strains emerged.

The Federal Reserve took these actions to help offset the restraint imposed by the tightening of credit conditions and the weakening of the housing market.  However, in light of recent changes in the outlook for and the risks to growth, additional policy easing may well be necessary.  The FOMC will, of course, be carefully evaluating incoming information bearing on the economic outlook.  Based on that evaluation, and consistent with our dual mandate, we stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks.

Financial and economic conditions can change quickly.  Consequently, the FOMC must remain exceptionally alert and flexible, prepared to act in a decisive and timely manner and, in particular, to counter any adverse dynamics that might threaten economic or financial stability.

A number of analysts have raised the possibility that fiscal policy actions might usefully complement monetary policy in supporting economic growth over the next year or so.  I agree that fiscal action could be helpful in principle, as fiscal and monetary stimulus together may provide broader support for the economy than monetary policy actions alone.  But the design and implementation of the fiscal program are critically important.  A fiscal initiative at this juncture could prove quite counterproductive, if (for example) it provided economic stimulus at the wrong time or compromised fiscal discipline in the longer term.

To be useful, a fiscal stimulus package should be implemented quickly and structured so that its effects on aggregate spending are felt as much as possible within the next twelve months or so.  Stimulus that comes too late will not help support economic activity in the near term, and it could be actively destabilizing if it comes at a time when growth is already improving.  Thus, fiscal measures that involve long lead times or result in additional economic activity only over a protracted period, whatever their intrinsic merits might be, will not provide stimulus when it is most needed.

Any fiscal package should also be efficient, in the sense of maximizing the amount of near-term stimulus per dollar of increased federal expenditure or lost revenue. Finally, any program should be explicitly temporary, both to avoid unwanted stimulus beyond the near-term horizon and, importantly, to preclude an increase in the federal government’s structural budget deficit.  As I have discussed on other occasions, the nation faces daunting long-run budget challenges associated with an aging population, rising health-care costs, and other factors.  A fiscal program that increased the structural budget deficit would only make confronting those challenges more difficult.

Thank you.  I would be pleased to take your questions.

---

Footnotes

1. Prices for some financial services are implicit; for example, depositors may pay for “free” checking services only indirectly, by accepting a lower interest rate on their deposits.  The Bureau of Labor Statistics uses estimates of such prices, as well as other nonmarket prices, in calculating the inflation rate.

http://www.federalreserve.gov/newsevents/testimony/bernanke20080117a.htm

January 17, 2008 – Testimony from Ben Bernanke – Congress

***

Testimony

Chairman Ben S. Bernanke

Semiannual Monetary Policy Report to the Congress

Before the Committee on Financial Services, U.S. House of Representatives

February 27, 2008

Chairman Bernanke presented identical testimony before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate, on February 28, 2008

Chairman Frank, Ranking Member Bachus, and other members of the Committee, I am pleased to present the Federal Reserve’s Monetary Policy Report to the Congress.  In my testimony this morning I will briefly review the economic situation and outlook, beginning with developments in real activity and inflation, then turn to monetary policy.  I will conclude with a quick update on the Federal Reserve’s recent actions to help protect consumers in their financial dealings.

The economic situation has become distinctly less favorable since the time of our July report.  Strains in financial markets, which first became evident late last summer, have persisted; and pressures on bank capital and the continued poor functioning of markets for securitized credit have led to tighter credit conditions for many households and businesses.  The growth of real gross domestic product (GDP) held up well through the third quarter despite the financial turmoil, but it has since slowed sharply.  Labor market conditions have similarly softened, as job creation has slowed and the unemployment rate–at 4.9 percent in January–has moved up somewhat.

Many of the challenges now facing our economy stem from the continuing contraction of the U.S. housing market.  In 2006, after a multiyear boom in residential construction and house prices, the housing market reversed course.  Housing starts and sales of new homes are now less than half of their respective peaks, and house prices have flattened or declined in most areas.  Changes in the availability of mortgage credit amplified the swings in the housing market.  During the housing sector’s expansion phase, increasingly lax lending standards, particularly in the subprime market, raised the effective demand for housing, pushing up prices and stimulating construction activity.  As the housing market began to turn down, however, the slump in subprime mortgage originations, together with a more general tightening of credit conditions, has served to increase the severity of the downturn.  Weaker house prices in turn have contributed to the deterioration in the performance of mortgage-related securities and reduced the availability of mortgage credit.

The housing market is expected to continue to weigh on economic activity in coming quarters.  Homebuilders, still faced with abnormally high inventories of unsold homes, are likely to cut the pace of their building activity further, which will subtract from overall growth and reduce employment in residential construction and closely related industries.

Consumer spending continued to increase at a solid pace through much of the second half of 2007, despite the problems in the housing market, but it appears to have slowed significantly toward the end of the year.  The jump in the price of imported energy, which eroded real incomes and wages, likely contributed to the slowdown in spending, as did the declines in household wealth associated with the weakness in house prices and equity prices.  Slowing job creation is yet another potential drag on household spending, as gains in payroll employment averaged little more than 40,000 per month during the three months ending in January, compared with an average increase of almost 100,000 per month over the previous three months.  However, the recently enacted fiscal stimulus package should provide some support for household spending during the second half of this year and into next year.

The business sector has also displayed signs of being affected by the difficulties in the housing and credit markets.  Reflecting a downshift in the growth of final demand and tighter credit conditions for some firms, available indicators suggest that investment in equipment and software will be subdued during the first half of 2008.  Likewise, after growing robustly through much of 2007, nonresidential construction is likely to decelerate sharply in coming quarters as business activity slows and funding becomes harder to obtain, especially for more speculative projects.  On a more encouraging note, we see few signs of any serious imbalances in business inventories aside from the overhang of unsold homes.  And, as a whole, the nonfinancial business sector remains in good financial condition, with strong profits, liquid balance sheets, and corporate leverage near historical lows.

In addition, the vigor of the global economy has offset some of the weakening of domestic demand.  U.S. real exports of goods and services increased at an annual rate of about 11 percent in the second half of last year, boosted by continuing economic growth abroad and the lower foreign exchange value of the dollar.  Strengthening exports, together with moderating imports, have in turn led to some improvement in the U.S. current account deficit, which likely narrowed in 2007 (on an annual basis) for the first time since 2001.  Although recent indicators point to some slowing of foreign economic growth, U.S. exports should continue to expand at a healthy pace in coming quarters, providing some impetus to domestic economic activity and employment.

As I have mentioned, financial markets continue to be under considerable stress.  Heightened investor concerns about the credit quality of mortgages, especially subprime mortgages with adjustable interest rates, triggered the financial turmoil.  However, other factors, including a broader retrenchment in the willingness of investors to bear risk, difficulties in valuing complex or illiquid financial products, uncertainties about the exposures of major financial institutions to credit losses, and concerns about the weaker outlook for economic growth, have also roiled the financial markets in recent months.

To help relieve the pressures in the market for interbank lending, the Federal Reserve–among other actions–recently introduced a term auction facility (TAF), through which prespecified amounts of discount window credit are auctioned to eligible borrowers, and we have been working with other central banks to address market strains that could hamper the achievement of our broader economic objectives.  These efforts appear to have contributed to some improvement in short-term funding markets. We will continue to monitor financial developments closely.

As part of its ongoing commitment to improving the accountability and public understanding of monetary policy making, the Federal Open Market Committee (FOMC) recently increased the frequency and expanded the content of the economic projections made by Federal Reserve Board members and Reserve Bank presidents and released to the public.

The latest economic projections, which were submitted in conjunction with the FOMC meeting at the end of January and which are based on each participant’s assessment of appropriate monetary policy, show that real GDP was expected to grow only sluggishly in the next few quarters and that the unemployment rate was seen as likely to increase somewhat.  In particular, the central tendency of the projections was for real GDP to grow between 1.3 percent and 2.0 percent in 2008, down from 2-1/2 percent to 2-3/4 percent projected in our report last July.

FOMC participants’ projections for the unemployment rate in the fourth quarter of 2008 have a central tendency of 5.2 percent to 5.3 percent, up from the level of about 4-3/4 percent projected last July for the same period. The downgrade in our projections for economic activity in 2008 since our report last July reflects the effects of the financial turmoil on real activity and a housing contraction that has been more severe than previously expected.

By 2010, our most recent projections show output growth picking up to rates close to or a little above its longer-term trend and the unemployment rate edging lower; the improvement reflects the effects of policy stimulus and an anticipated moderation of the contraction in housing and the strains in financial and credit markets.  The incoming information since our January meeting continues to suggest sluggish economic activity in the near term.

The risks to this outlook remain to the downside.  The risks include the possibilities that the housing market or labor market may deteriorate more than is currently anticipated and that credit conditions may tighten substantially further.

Consumer price inflation has increased since our previous report, in substantial part because of the steep run-up in the price of oil.  Last year, food prices also increased significantly, and the dollar depreciated.  Reflecting these influences, the price index for personal consumption expenditures (PCE) increased 3.4 percent over the four quarters of 2007, up from 1.9 percent in 2006.

Core price inflation–that is, inflation excluding food and energy prices–also firmed toward the end of the year.  The higher recent readings likely reflected some pass-through of energy costs to the prices of core consumer goods and services as well as the effect of the depreciation of the dollar on import prices.  Moreover, core inflation in the first half of 2007 was damped by a number of transitory factors–notably, unusually soft prices for apparel and for financial services–which subsequently reversed.  For the year as a whole, however, core PCE prices increased 2.1 percent, down slightly from 2006.

The projections recently submitted by FOMC participants indicate that overall PCE inflation was expected to moderate significantly in 2008, to between 2.1 percent and 2.4 percent (the central tendency of the projections).  A key assumption underlying those projections was that energy and food prices would begin to flatten out, as was implied by quotes on futures markets.  In addition, diminishing pressure on resources is also consistent with the projected slowing in inflation.

The central tendency of the projections for core PCE inflation in 2008, at 2.0 percent to 2.2 percent, was a bit higher than in our July report, largely because of some higher-than-expected recent readings on prices.  Beyond 2008, both overall and core inflation were projected to edge lower, as participants expected inflation expectations to remain reasonably well-anchored and pressures on resource utilization to be muted.  The inflation projections submitted by FOMC participants for 2010–which ranged from 1.5 percent to 2.0 percent for overall PCE inflation–were importantly influenced by participants’ judgments about the measured rates of inflation consistent with the Federal Reserve’s dual mandate and about the time frame over which policy should aim to attain those rates.

The rate of inflation that is actually realized will of course depend on a variety of factors.  Inflation could be lower than we anticipate if slower-than-expected global growth moderates the pressure on the prices of energy and other commodities or if rates of domestic resource utilization fall more than we currently expect.  Upside risks to the inflation projection are also present, however, including the possibilities that energy and food prices do not flatten out or that the pass-through to core prices from higher commodity prices and from the weaker dollar may be greater than we anticipate.

Indeed, the further increases in the prices of energy and other commodities in recent weeks, together with the latest data on consumer prices, suggest slightly greater upside risks to the projections of both overall and core inflation than we saw last month.  Should high rates of overall inflation persist, the possibility also exists that inflation expectations could become less well anchored.  Any tendency of inflation expectations to become unmoored or for the Fed’s inflation-fighting credibility to be eroded could greatly complicate the task of sustaining price stability and could reduce the flexibility of the FOMC to counter shortfalls in growth in the future.  Accordingly, in the months ahead, the Federal Reserve will continue to monitor closely inflation and inflation expectations.

Let me turn now to the implications of these developments for monetary policy.  The FOMC has responded aggressively to the weaker outlook for economic activity, having reduced its target for the federal funds rate by 225 basis points since last summer.  As the Committee noted in its most recent post-meeting statement, the intent of those actions has been to help promote moderate growth over time and to mitigate the risks to economic activity.

A critical task for the Federal Reserve over the course of this year will be to assess whether the stance of monetary policy is properly calibrated to foster our mandated objectives of maximum employment and price stability in an environment of downside risks to growth, stressed financial conditions, and inflation pressures.

In particular, the FOMC will need to judge whether the policy actions taken thus far are having their intended effects.  Monetary policy works with a lag.  Therefore, our policy stance must be determined in light of the medium-term forecast for real activity and inflation as well as the risks to that forecast.  Although the FOMC participants’ economic projections envision an improving economic picture, it is important to recognize that downside risks to growth remain. The FOMC will be carefully evaluating incoming information bearing on the economic outlook and will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks.

Finally, I would like to say a few words about the Federal Reserve’s recent actions to protect consumers in their financial transactions.  In December, following up on a commitment I made at the time of our report last July, the Board issued for public comment a comprehensive set of new regulations to prohibit unfair or deceptive practices in the mortgage market, under the authority granted us by the Home Ownership and Equity Protection Act of 1994.  The proposed rules would apply to all mortgage lenders and would establish lending standards to help ensure that consumers who seek mortgage credit receive loans whose terms are clearly disclosed and that can reasonably be expected to be repaid.

Accordingly, the rules would prohibit lenders from engaging in a pattern or practice of making higher-priced mortgage loans without due regard to consumers’ ability to make the scheduled payments.  In each case, a lender making a higher-priced loan would have to use third-party documents to verify the income relied on to make the credit decision.  For higher-priced loans, the proposed rules would require the lender to establish an escrow account for the payment of property taxes and homeowners’ insurance and would prevent the use of prepayment penalties in circumstances where they might trap borrowers in unaffordable loans.

In addition, for all mortgage loans, our proposal addresses misleading and deceptive advertising practices, requires borrowers and brokers to agree in advance on the maximum fee that the broker may receive, bans certain practices by servicers that harm borrowers, and prohibits coercion of appraisers by lenders. We expect substantial public comment on our proposal, and we will carefully consider all information and viewpoints while moving expeditiously to adopt final rules.

The effectiveness of the new regulations, however, will depend critically on strong enforcement.  To that end, in conjunction with other federal and state agencies, we are conducting compliance reviews of a range of mortgage lenders, including nondepository lenders.  The agencies will collaborate in determining the lessons learned and in seeking ways to better cooperate in ensuring effective and consistent examinations of, and improved enforcement for, all categories of mortgage lenders.

The Federal Reserve continues to work with financial institutions, public officials, and community groups around the country to help homeowners avoid foreclosures. We have called on mortgage lenders and servicers to pursue prudent loan workouts and have supported the development of streamlined, systematic approaches to expedite the loan modification process.

We also have been providing community groups, counseling agencies, regulators, and others with detailed analyses to help identify neighborhoods at high risk from foreclosures so that local outreach efforts to help troubled borrowers can be as focused and effective as possible.  We are actively pursuing other ways to leverage the Federal Reserve’s analytical resources, regional presence, and community connections to address this critical issue.

In addition to our consumer protection efforts in the mortgage area, we are working toward finalizing rules under the Truth in Lending Act that will require new, more informative, and consumer-tested disclosures by credit card issuers.  Separately, we are actively reviewing potentially unfair and deceptive practices by issuers of credit cards.  Using the Board’s authority under the Federal Trade Commission Act, we expect to issue proposed rules regarding these practices this spring.

Thank you.  I would be pleased to take your questions.

February 2008 Monetary Policy Report

2008 Testimony

http://www.federalreserve.gov/newsevents/testimony/bernanke20080227a.htm

***

Although the FOMC participants’ economic projections envision an improving economic picture, it is important to recognize that downside risks to growth remain.

The latest economic projections, which were submitted in conjunction with the FOMC meeting at the end of January and which are based on each participant’s assessment of appropriate monetary policy, show that real GDP was expected to grow only sluggishly in the next few quarters and that the unemployment rate was seen as likely to increase somewhat.  In particular, the central tendency of the projections was for real GDP to grow between 1.3 percent and 2.0 percent in 2008, down from 2-1/2 percent to 2-3/4 percent projected in our report last July.

FOMC participants’ projections for the unemployment rate in the fourth quarter of 2008 have a central tendency of 5.2 percent to 5.3 percent, up from the level of about 4-3/4 percent projected last July for the same period.  The downgrade in our projections for economic activity in 2008 since our report last July reflects the effects of the financial turmoil on real activity and a housing contraction that has been more severe than previously expected.

By 2010, our most recent projections show output growth picking up to rates close to or a little above its longer-term trend and the unemployment rate edging lower; the improvement reflects the effects of policy stimulus and an anticipated moderation of the contraction in housing and the strains in financial and credit markets.  The incoming information since our January meeting continues to suggest sluggish economic activity in the near term.

To help relieve the pressures in the market for interbank lending, the Federal Reserve–among other actions–recently introduced a term auction facility (TAF), through which prespecified amounts of discount window credit are auctioned to eligible borrowers, and we have been working with other central banks to address market strains that could hamper the achievement of our broader economic objectives.  These efforts appear to have contributed to some improvement in short-term funding markets.

[Excerpts from Ben Bernanke Economic Outlook Congressional Testimony - February 2008 ]

http://www.federalreserve.gov/newsevents/testimony/bernanke20080227a.htm

***

https://treas.gov/offices/international-affairs/economic-exchange-rates/052008_report.pdf

However, where pertinent and when available, data through mid-April 2008 are included and discussed in this report.

Exports and imports of goods and services to and from the countries whose economies and currencies are discussed in this report accounted for about 85 percent of total U.S. trade in 2007.

U.S. Macroeconomic Trends

The economy slowed toward the end of 2007, buffeted by the decline in residential building and related financial market turmoil, as well as significant increases in energy prices. Job growth moderated, and the unemployment rate moved higher.

Headline inflation picked up as energy prices surged but core inflation remained contained. Financial markets became increasingly unsettled during the late summer of 2007, reflecting concerns about the quality of debt instruments backed by subprime mortgages. The Federal Reserve cut the federal funds interest rate target by 50 basis points in September. Additional rate cuts followed in October, December, January, March and April 2008. Yields on long-term securities fell in the second half of 2007 and continued to trend down in early 2008. The economy is expected to remain weak through the first half of 2008 but improve in the second half when measures enacted under the Economic Stimulus Act of 2008 take effect.

Slowing Economy

Real GDP growth slipped to a 0.6 percent annual rate in the fourth quarter of 2007 from the rapid 4.4 percent pace averaged in the second and third quarters. Growth moderated across all spending categories, but a large part of the slowdown was due to a drop in private inventory investment, which subtracted 1.8 percentage points from fourth-quarter real growth after adding 0.8 percentage points in the third quarter.

Consumer spending – which accounts for 70 percent of economic activity – eased to a 2.3 percent annual rate of growth in the fourth quarter from 2.8 percent in the third quarter. Business investment activity also cooled at the end of 2007, with real outlays for equipment and software up by just 3.1 percent at an annual rate, half the pace recorded in the third quarter. On the plus side, growth of business spending on structures remained solid, while exports continued to post strong gains.

The ongoing contraction in residential construction remained a drag on the economy in the fourth quarter. Real residential investment plunged by 25 percent at an annual rate, shaving 1.3 percentage points from real GDP growth. That followed a 21 percent drop in the third quarter that subtracted 1.1 percentage points from real growth. Over the four quarters of 2007, declining residential investment reduced real GDP growth by nearly a full percentage point, about the same as in 2006.

Recent data indicate that housing activity continued to contract in early 2008. Housing starts fell to a 17-year low in March, with starts of single-family homes down a steep 63 percent from their January 2006 peak. Sales of new single-family homes also fell to a 17-year low in March and resales of existing single-family homes remained near their lowest point in the past 10 years. Home prices continued to fall below year-earlier levels in February. Forward-looking indicators suggest that housing will weigh on growth throughout 2008.

Inventories of unsold homes are at historically high levels, building permits remain well below starts, and homebuilder optimism is close to an all-time low. Mortgage delinquencies and foreclosures have risen sharply over the past year and are projected to climb further in 2008, adding to the inventory overhang and putting additional downward pressure on home prices.

Labor market conditions also weakened in the second half of 2007. Job growth moderated to 76,000 per month on average, down from an average monthly gain of 107,000 in the first half of the year. The unemployment rate rose to 5.0 percent in December, up from a recent low of 4.4 percent in March 2007. Real wages began to fall in late 2007 as consumer price inflation accelerated. Over the twelve months of the year, real hourly earnings for production workers declined by 0.7 percent. Real earnings rose by 1.8 percent during 2006 after falling in 2004 and 2005. The labor market deteriorated further in early 2008. Nonfarm payroll employment fell by 260,000 in the first four months of the year – the first decline since August 2003. The unemployment rate was 5.0 percent in April 2008.

[ Excerpts from - ]

https://treas.gov/offices/international-affairs/economic-exchange-rates/052008_report.pdf

US Treasury Department – 2008

***

The MSCI developed country stock index fell by 1 percent in the second half of 2007, whereas the emerging market index rose by 17 percent. Credit spreads in emerging markets increased, however, as the crisis unfolded in August, and have continued to rise. The EMBI+ spread ended the year up 70 bps, the first increase since 2002. Most of this increase occurred in the second half of the year.
Strong economic fundamentals, better institutional foundations, and stockpiles of international reserves make many emerging markets less vulnerable than during previous periods of global financial turbulence.
Capital Flows of Emerging Market and Developing Economies 2006 2007 2008f Net Private Capital Inflows ($ Bil) 231.9 605.0 330.7 Current Account ($ Bil) 698.0 738.1 814.7 Increase in Reserves ($ Bil) 752.8 1,236.2 1,004.1 Note: “f” indicates forecast. Source: IMF, World Economic Outlook, April 2008
Private net capital inflows are expected to slow this year, but remain well above the $177 billion average for 2001-06. In addition, the aggregate current account surplus in emerging markets and developing economies, which rose to $738 billion in 2007, is expected to increase to $815 billion in 2008. This would mark the seventh consecutive annual increase in the current account surplus for this group of countries.

[ Etc. ]

In the second half of 2007, U.S. exports (BOP basis) totaled $601.4 billion. Of this, exports of capital goods accounted for 38.5 percent, exports of industrial supplies 27.6 percent and exports of consumer goods 12.5 percent. Imports (BOP basis) in the second half of 2007 totaled $1,010 billion, of which 33 percent were industrial supplies (including petroleum and petroleum products), 23.7 percent were consumer goods and 22.4 percent were capital goods. Imports of petroleum and petroleum products totaled $181.9 billion in the second half of 2007 compared to $149.2 billion in the first half, an increase of 21.9 percent.
Capital and Financial Accounts
By balance of payments accounting definition, the counterpart to the balance on the current account is the balance on the capital and financial account. Since by definition the current account balance is the difference between domestic capital formation and domestic saving, the net of flows in the capital and financial account are equal to the excess of net capital formation over domestic saving.
Data for 2007 show that U.S. residents invested more abroad in the form of direct investment than foreign residents invested in the United States.

[ . . . ]

The U.S. Treasury’s International Capital Reporting System (TIC), which records cross-border transactions data, shows continued strong demand for U.S. financial assets, even if the negative months of August and September 2007 are included (those months saw significant outflows during the onset of the financial turmoil). Total net foreign demand for U.S. long-term securities was $1,006 billion in 2007 compared to $1,143 billion in 2006 and $1,012 billion in 2005.

[Etc. - great charts, too - so completely out of touch with the unfolding disaster which is evident throughout the text, graphs and projections

- my note]

https://treas.gov/offices/international-affairs/economic-exchange-rates/052008_report.pdf

The Treasury Department’s Report to Congress on International Economic and Exchange Rate Policies outlines the currency practices of America’s major trading partners.

May 2008
Report

(Information excerpts included above – came from page contents below – )

***

---

Semiannual Report on International Economic and Exchange Rate Policies

< BACK

To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®.
To view or print the Microsoft Word content on this page, download the free Microsoft Word Viewer. The Treasury Department’s Report to Congress on International Economic and Exchange Rate Policies outlines the currency practices of America’s major trading partners.

Authorizing Statute

April 2009
Report
Appendix I: Strengthening the Financial System and Restoring Global Growth
Appendix II: Past U.S. Treasury Determinations with Respect to Economies Considered to have Manipulated their Exchange Rate

December 2008
Report
Appendix I: Currency Composition of Foreign Currency Reserves
Appendix II: Sovereign Wealth Funds

May 2008
Report
Appendix: Sovereign Wealth Funds

***

https://treas.gov/offices/economic-policy/

US Treasury Department Office of Economic Policy

Mission To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®. The Office of Economic Policy is responsible for analyzing and reporting on current and prospective economic developments in the U.S. and world economies and assisting in the determination of appropriate economic policies. The Assistant Secretary for Economic Policy reports directly to the Secretary of the Treasury and is responsible to him for the review and analysis of both domestic and international economic issues and developments in the financial markets. The Office participates, along with the Council of Economic Advisers and the Office of Management and Budget, in the preparation of the Administration’s budget. Economic Policy supports the Secretary of the Treasury in his roles as Chairman and Managing Trustee of the Social Security and Medicare Boards of Trustees. The Office conducts research to assist in the formulation and articulation of public policies and positions of the Treasury Department on a wide range of microeconomic issues. Recent examples include terror risk insurance, financial disclosure and auditing, stock options, parallel imports, health insurance, retirement income security, and long-term care. Contents Speeches, Reports, Testimony and Conferences Monitoring the Economy The Corporate Bond Yield Curve Social Security and Medicare Reports Total Taxable Resources Economic Policy Research Paper Series Treasury Social Security Issue Briefs Treasury Working Paper Series: The Impact of Post-9/11 Visa Policies on Travel to the United States History of the Office of Economic Policy Employment and Internship Opportunities Last Updated: November 7, 2008

<!– Key Personnel Contacts Speeches, Testimony, Refund Remarks Social Security Reports Monitoring the Macro Economy Total Taxable Resources Issue Briefs Working Paper Series –> Organization Personnel

Lehman Brothers could have been made into a bank holding company according to a CNBC on-air expert today – I suppose they are right – so why couldn’t the Bank of Japan be allowed to buy them? Why didn’t the US Treasury Department Harvard economists and Federal Reserve Bernanke and Harvard economists know as of January 22, 2008 that there was a serious problem in the economy? How could they not know?

http://oversight.house.gov/

The Oversight Committee is currently conducting an investigation into the financial crisis and is interested in any information that may help further the investigation.

The Oversight Committee has the highest respect for confidentiality. As such, we respect your need to remain confidential and will use your contact information only to follow up with you regarding your submission. If you do not wish to provide contact information, you may leave the contact fields blank.

http://oversight.house.gov/contact/tiplines/financial.asp

***

Japan Banks, Insurers Have $2.4 Billion Lehman Risk (Update3)

By Takahiko Hyuga, Shingo Kawamoto and Komaki Ito

Sept. 17 (Bloomberg) — Japan’s banks and insurers, including Mitsubishi UFJ Financial Group Inc., announced a combined 249 billion yen ($2.4 billion) of potential losses tied to the collapse of Lehman Brothers Holdings Inc.

Banks from Tokyo-based Mitsubishi UFJ, Japan’s largest, to Bank of the Ryukyus Ltd., a lender based in Okinawa, disclosed assets that might become worthless following Lehman’s filing for bankruptcy protection. Mizuho Trust & Banking Co. cut its profit forecast by more than half, citing 11.8 billion yen of losses on bonds and loans linked to Lehman.

Japanese bank stocks had their worst drop in four years yesterday in Tokyo. The upheaval on Wall Street that saw Lehman fail, Merrill Lynch & Co. sell itself to Bank of America Corp., and American International Group Inc. agree to a government takeover prompted at least one Japanese bank executive to rule out U.S. acquisitions.

“We won’t be investing in U.S. banks under current circumstances,” Mitsubishi UFJ Chairman Ryosuke Tamakoshi said yesterday in an interview in Tokyo.

Mitsubishi UFJ has about $235 million at risk related to Lehman’s collapse, the company said. The total for 40 banks was 202.5 billion yen, compared with a combined 46.8 billion yen at seven Japanese insurers, according to data compiled by Bloomberg based on announcements made yesterday and today.

“Most lending to Lehman Brothers was made by major Japanese banks, and their possible losses seem to be within the levels that can be covered by their profits,” Bank of Japan Governor Masaaki Shirakawa told reporters in Tokyo today. “There is no concern that the latest events will threaten the stability of Japan’s financial system.”

Biggest Creditors

The 84-stock Topix Banks Index shed 8.1 percent yesterday to 222.70, close to a five-year low. It fell 0.2 percent today.

Mizuho Financial Group Inc., Japan’s second-largest bank by revenue, may book as much as 20 billion yen of losses related to Lehman, spokeswoman Masako Shiono said in an interview. The bank isn’t planning to reduce earnings forecasts, she said.

Most of the announced assets tied to Lehman are in the form of bonds or loans. Lehman’s bankruptcy filing listed Japanese banks as some of its biggest creditors with a combined $1.6 billion, led by Aozora Bank Ltd. at $463 million. Aozora later said it has the equivalent of $575 million in loans to Lehman.

The Tokyo-based lender, controlled by Cerberus Capital Management LP, said its actual losses may total $25 million.

“We expect the net loss to be about $25 million after hedge transactions, collateral and recoveries on loans,” Richard Layton, Aozora’s chief financial officer, said in a phone interview.

`Plenty of Skepticism’

Aozora fell 5.3 percent in Tokyo trading, after tumbling 16 percent to a record yesterday.

“There is plenty of skepticism about the level of disclosure by affected banks,” said Eiichiro Kuwana, president of Greenwich, Connecticut-based Cook Pine Capital LLC. “Aozora’s assertion that it had hedged out a good portion of the Lehman exposure was not taken at face value by the market.”

Lehman’s implosion caps a turbulent year for Japanese banks, which have stumbled as losses on subprime mortgage investments mounted and the domestic economy edged closer to a recession. The Topix Banks Index has lost 25 percent during the past 12 months.

Some bank executives downplayed the risks posed by Lehman’s bankruptcy.

“There may be some impact, but it should be limited,” said Resona Holdings Inc. Chairman Eiji Hosoya. Resona, Japan’s fourth-largest bank, holds 20 billion yen of Lehman debt. The stock rose 3.1 percent, after slumping 13 percent yesterday.

Largest Failure

New York-based Lehman has operated a Tokyo office since 1974 and employs about 1,300 people in Japan. The firm’s main units in Japan filed for bankruptcy yesterday in the country’s biggest corporate collapse.

Lehman Brothers Japan Inc. and three other affiliates sought bankruptcy protection in Tokyo District Court with about 4.7 trillion yen in combined liabilities, according to Teikoku Databank Ltd.

Japan’s seven largest banks have 252.7 billion yen of combined “exposure” to Lehman, compared with 60.5 billion yen for regional lenders, Credit Suisse Group analyst Shinichi Ina said in a note to clients yesterday. The former group mainly holds loans to Lehman, while the regional banks primarily own its bonds, according to Ina.

“Major banks have considerable protection in the form of collateral and hedging, so the actual impact is likely to be less significant than the stated amounts,” Ina wrote. Lehman’s collapse “could be rubbing salt into the wounds for the regional banking sector.”

Japanese Banks, Insurers' Possible Loss on Lehman Brothers

                                                 POTENTIAL LOSS
                                                 (Billion Yen)
BANKS
Shinsei Bank Ltd.                                 38.0
Mitsubishi UFJ Financial Group Inc.               25.0
Mizuho Financial Group Inc.                       20.0
Resona Holdings Inc.                              20.0
Chuo Mitsui Trust Holdings Inc.                   15.0
Sumitomo Mitsui Financial Group Inc.              10.0
Kiyo Holdings Inc.                                 7.1
Sumitomo Trust & Banking Co.                       6.0
Sapporo Hokuyo Holdings Inc.                       5.1
Chiba Bank Ltd.                                    5.0
Joyo Bank Ltd.                                     4.2
Fukuoka Financial Group Inc.                       4.0
Hyakugo Bank Ltd.                                  4.0
Iyo Bank Ltd.                                      3.5
Shiga Bank Ltd.                                    3.5
Bank of Iwate Ltd.                                 3.0
Yamagata Bank Ltd.                                 3.0
Aozora Bank Ltd.                                   2.7
Chiba Kogyo Bank Ltd.                              2.0
Hokkoku Bank Ltd.                                  2.0
Hokuetsu Bank Ltd.                                 2.0
77 Bank Ltd.                                       2.0
Toho Bank Ltd.                                     1.5
Hokuhoku Financial Group Inc.                      1.4
Minami-Nippon Bank Ltd.                            1.3
Awa Bank Ltd.                                      1.2
Aichi Bank Ltd.                                    1.0
Bank of the Ryukyus Ltd.                           1.0
Daisan Bank Ltd.                                   1.0
Fukushima Bank Ltd.                                1.0
Hachijuni Bank Ltd.                                1.0
Juroku Bank Ltd.                                   1.0
Tokushima Bank Ltd.                                0.8
Bank of Kyoto Ltd.                                 0.5
Daito Bank Ltd.                                    0.5
Hyakujushi Bank Ltd.                               0.5
Shikoku Bank Ltd.                                  0.5
Shonai Bank Ltd.                                   0.5
Yachiyo Bank Ltd.                                  0.5
Kita-Nippon Bank Ltd.                              0.2
*****************************************************************
40 BANKS                                         202.5
*****************************************************************

LIFE/CASUALTY INSURERS
Mitsui Sumitomo Insurance Group Holdings Inc.     14.7
Asahi Mutual Life Insurance Co.                   10.0
Nippon Life Insurance Co.                         10.0
Dai-ichi Mutual Life Insurance Co.                 8.1
Meiji Yasuda Life Insurance Co.                    2.0
Mitsui Life Insurance Co.                          2.0
*****************************************************************
6 INSURERS                                        46.8
*****************************************************************
TOTAL (BANKS AND INSURERS)                       249.3
*****************************************************************
SOURCES: Company Disclosures

To contact the reporters on this story: Takahiko Hyuga in Tokyo at thyuga@bloomberg.net; Shingo Kawamoto in Tokyo at skawamoto2@bloomberg.net; Komaki Ito in Tokyo at kito@bloomberg.net

Last Updated: September 17, 2008 04:33 EDT

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=agzEgU4VxL9U

***

SEC-FINRA Investor Alert on Old GM Stock SEC Seeks Public Comments on Measures to Improve Corporate Governance SEC Seeks Public Comments on Money Market Fund Measures SEC Seeks Public Comments on Proposal to Facilitate Rights of Shareholders to Nominate Directors Information for Reserve Primary Fund Investors

more…

<!– PAUSE –> Spotlight on Fair Value Accounting Standards Interactive Data (XBRL) Credit Rating Agency Examination Report SEC Roundtable on Short Selling

from SEC sidebar – look for public comments being sought -

http://www.sec.gov/

***

SEC Enforcement Conference earlier this year – March 2009

http://www.sec.gov/divisions/enforce/enfcoordconf.htm
Home | Previous Page
Modified: 11/26/2008

http://www.sec.gov/divisions/enforce/enforcementmanual.pdf

Securities and Exchange Commission – Enforcement Manual

***

http://www.sec.gov/divisions/enforce/enfcoordconf.htm

U.S. Securities and Exchange Commission
March 23-24, 2009, Washington D.C.

Securities Enforcement Coordination Conference

United States
Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549
Division of Enforcement
Securities Enforcement Coordination Conference
March 23-24, 2009, Washington D.C.

The Division of Enforcement of the Securities and Exchange Commission is sponsoring a two-day conference on coordinating civil and criminal securities enforcement actions. I am pleased to invite your agency to send delegates who work in this area to the conference.

As you know, prosecutions of securities violations have become an increasingly visible and important part of maintaining and restoring investor confidence in the securities markets. This program will review major types of securities violations, analyze current trends, and discuss legal, policy and practical issues related to the coordination of securities cases. We believe the opportunity to meet and discuss these topics with all of you who work in this area will benefit us all.

Enclosed is a list of proposed topics for the conference, along with instructions for registration. If there is a topic or an issue of particular interest to your agency that you would like covered at the conference, please note it on your registration. We will make every effort to make the conference meaningful and useful to everyone. I look forward to seeing your delegates in Washington in March.

The deadline for registration is February 27, 2009.
Proposed Topics
Overview of the Commission

* Organization of the Commission
* The Roles of the SEC’s various Divisions and Offices
* Enforcement Contacts in the SEC’s Regional and District offices

Review of major securities violations and recent cases and schemes

* Investment Adviser Violations
* Financial Fraud
* Insider Trading
* Broker-Dealer Violations
* Offering Fraud
* Market Manipulation

Coordinating civil and criminal cases

* Civil v. Criminal Cases: What makes a good criminal case
* Parallel Civil and Criminal Cases
* The SEC as a Resource
* Working Together: Now and in the Future

[etc.]

***

http://www.sec.gov/divisions/enforce/enforcementmanual.pdf

Enforcement Manual – SEC

3.3.5.3.4. Communications With Employees of Broker-Dealers

Basics:
While the Exchange Act requires brokerage firms to produce certain information upon request from the SEC and without an investigative subpoena, the Exchange Act does not require employees of brokerage firms to cooperate with inquiries into the employee’s individual conduct.

Therefore, an employee of a brokerage firm may or may not cooperate voluntarily with the Division’s inquiries into the employee’s individual
conduct. When the scope of an investigation touches upon an employee’s duties at his orher current brokerage firm, the staff typically should communicate with the employee through the firm’s general counsel or compliance officer.

***

My Note -

It means they can’t get the information they need nor confirm it directly according to the guidelines from the enforcement manual above – SEC.

**

http://cop.senate.gov/

Congressional Oversight Panel

***

http://oversight.house.gov/

The Oversight Committee is currently conducting an investigation into the financial crisis and is interested in any information that may help further the investigation.

The Oversight Committee has the highest respect for confidentiality. As such, we respect your need to remain confidential and will use your contact information only to follow up with you regarding your submission. If you do not wish to provide contact information, you may leave the contact fields blank.

http://oversight.house.gov/contact/tiplines/financial.asp

***

[from SEC Enforcement Manual concerning international witnesses -]

Memoranda of Understanding (“MOUs”)
MOUs are regulator-to-regulator arrangements regarding information sharing and cooperation in securities matters. The SEC has entered into over 30 such sharing arrangements with its foreign counterparts. The SEC is also a signatory to the 88 International Organization of Securities Commissions Multilateral MOU. This MOU is the first global information sharing arrangement among securities regulators.
The scope of information that the SEC can obtain pursuant to an MOU varies
depending on the legal abilities of the particular foreign authority. Some, but not all, MOUs allow for the SEC to obtain witness statements.
• Mutual Legal Assistance Treaties (“MLATs”) (Criminal Matters)
Generally, MLATs are designed for the exchange of information in criminal
matters and are administered by the Department of Justice (“DOJ”).

Despite the fact that MLATs are primarily arrangements to facilitate cross-border criminal investigations and prosecutions, the SEC may be able to use this mechanism in certain cases. Some jurisdictions permit the SEC to obtain information, including sworn testimony, through MLATs. U.S. criminal interest in the matter may be a prerequisite to the ability of the SEC to obtain information through MLATs.

DOJ has signed numerous MLATs through foreign criminal authorities. MLATs may be an effective mechanism to obtain assistance when an MOU with a particular country either does not exist or does not permit the type of information sought from a witness residing overseas.
• Letters Rogatory
A Letter Rogatory is a formal request from a court in one country to the
appropriate judicial authority in another county. Generally, a Letter Rogatory is used in litigation to request compulsion of testimony or other evidence, or to serve process on a person located abroad.

The execution of a request for judicial assistance by the foreign court is based on comity between nations, absent a specific treaty such as the Hague Convention on the Taking of Evidence Abroad in Civil or Commercial Matters. Because a Letter Rogatory generally can only be used to gather evidence in litigation, a Letter Rogatory may have limited utility where a case is in the investigative stage.
• Ad Hoc Arrangements
Even if no formal information sharing mechanism exists with respect to a
particular jurisdiction, the SEC nevertheless may be able to secure assistance in contacting a witness overseas by working on an ad hoc basis with foreign authorities. Such ad hoc arrangements often prove particularly helpful with emerging markets, whose securities legislation continues to develop.

(pp. 88)

http://www.sec.gov/divisions/enforce/enforcementmanual.pdf

***

Thursday, July 16, 2009 |

Opening Statement, Witness Testimony and Webcast of the Joint Oversight Hearing titled: “Bank of America and Merrill Lynch: How Did a Private Deal Turn Into a Federal Bailout? Part III”

On Thursday, July 16, 2009, at 10:00 a.m., The House Oversight and Government Reform Committee and Subcommittee on Domestic Policy continued its joint investigation of the Bank of America – Merrill Lynch merger with a hearing titled: “Bank of America and Merrill Lynch: How Did a Private Deal Turn Into a Federal Bailout? Part III.”

Wednesday, July 15, 2009 |

Towns Calls on BofA CEO to Compensate Government for Providing Protection Against Toxic Assets

Chairman Edolphus “Ed” Towns (D-NY) sent a letter to Bank of America (BofA) CEO Kenneth D. Lewis regarding recent reports that BofA is not planning to pay the Federal government for financial protection it provided BofA against the bank’s toxic assets.

http://oversight.house.gov/

***

2/5/08 – February 5, 2008 High 12631.85 Low 12234.97 Close 12265.13
2/4/08 – February 4, 2008 High 12810.34 Low 12557.61 Close 12635.16
2/1/08 – February 1, 2008 High 12767.74 Low 12602.32 Close 12743.19

http://www.dowjonesclose.com/2008.html

***

***

1/22/08 – January 22, 2008 High 12092.72 Low 11634.82 Close 11971.19

1/3/08 – January 3, 2008 High 13197.43 Low 12968.44 Close 13056.72

http://www.dowjonesclose.com/2008.html

***

Lehman Brothers – agreement to abide by protocols established for swaps by ISDA 2008

14 February 2008

see letter – (send to)

Dear Sirs -

ISDA European Variance Swap Protocol – Adherence

The purpose of this letter is to confirm our adherence to the ISDA European Variance Swap Protocol as published by the International Swaps and Derivatives Association, Inc. On February 5, 2008 (the “Protocol”). This letter constitutes an Adherence Letter as referred to in the Protocol. The definitions and provisions contained in the Protocol are incorporated into this Adherence Letter, which will supplement and form part of any ISDA Master Agreement entered into prior to the Implementation Date between us and each other Adhering Party.

(Etc. – see letter pdf)

http://www.isda.org/evsprot/evspdf/LBintl0214.pdf

***

The ISDA European Variance Swap Protocol (the “Protocol”) is a tool to upgrade either the Interdealer European Variance Swap Master Confirmation Agreement as developed in 2005 (the “Interdealer MCA”) or the 2007 ISDA European Variance Swap Master Confirmation Agreement (the “March 2007 MCA”) to the terms of the Revised 2007 ISDA European Variance Swap Master Confirmation Agreement (“Revised 2007 MCA”). Adhering to the Protocol will provide that all future variance swap transactions will be documented under the terms of the Revised 2007 MCA as well as upgrading existing transactions under the Interdealer MCA or the March 2007 MCA to the new standards. For parties using the standard Interdealer MCA or March 2007 MCA, there is no need to execute a Side Letter – only submission of an adherence letter is necessary. Existing Calculation Agent and Determining Party designations under the Interdealer MCA or the March 2007 MCA will be migrated over to the Revised 2007 MCA and be in place going forward. In the case of parties using long-form confirmations (“Non ISDA Documentation”), the Protocol provides a mechanism, via the use of a Side Agreement, for parties to specify how the terms of Outstanding Transactions done under Non-ISDA Documentation would be amended and restated as Transaction Supplements under the Revised 2007 MCA. THE CUT-OFF DATE FOR ADHERENCE TO THIS PROTOCOL HAS BEEN EXTENDED from February 29, 2008 to March 21, 2008.

List of Adhering Parties ISDA European Variance Swap Protocol Text Form of Adherence Letter Adherence Letter Submission Process Side Agreement in relation to Annex 3 Frequently Asked Questions

http://www.isda.org/evsprot/evsprot.html

***

http://www.isda.org/

International Swaps and Derivatives Association

Notice of Re-Opening of the 2009 ISDA AEJ Derivatives Protocol ISDA Submits Report on CCP Buy-Side Access to Centralized CDS Clearing ISDA Response to HMT Consultation on Developing a New Insolvency Regime for UK Investment Banks ISDA Presents Webcast on ‘Small Bang Protocol’ and Restructuring Supplement ISDA to Publish Auction Terms for Bradford & Bingley ISDA to Publish Auction Terms for Lear ISDA Welcomes European Commission Communication on Derivatives Markets ISDA responds to Commission consultation on the review of the EU Brussels 1 Regulation ISDA Responds to Turner Review (Press Release) (ISDA Response) [ More News ]

ISDA Symposium – Credit Derivative Market Practice Changes – New York (July 16, 2009) ISDA Symposium – Credit Derivative Market Practice Changes – New York (July 22, 2009) ISDA Symposium – Credit Derivative Market Practice Changes – London (July 23, 2009) Credit Derivatives Conference – Tokyo (July 28, 2009)

[And]

http://www.isda.org/

(click tab on sidebar titled ISDA Protocols)

The purpose of the LCDS Protocol (the “Protocol”) is to facilitate the amendment of documentation for loan CDS transactions that reference the Syndicated Secured Loan Credit Default Swap Standard Terms Supplement published by ISDA on June 8, 2006 (the “Old LCDS Terms”). The Old LCDS Terms were replaced by the Syndicated Secured Loan Credit Default Swap Standard Terms Supplement published on May 22, 2007 (the “New LCDS Terms”). The amendments effected by the Protocol will update loan CDS transactions documented under the Old LCDS Terms by migrating them to the New LCDS Terms. The update is in two parts: (1) incorporating the New LCDS Terms in place of the Old LCDS Terms; and (2) adopting the new form of Syndicated Secured Loan Credit Default Swap Physical Settlement Rider published by The Loan Syndications and Trading Association, Inc. as of June 18, 2007. The Protocol will apply to all transactions that incorporate the Old LCDS Terms, regardless of the date such transaction is entered into (unless the relevant Confirmation contains sufficient language to exclude the effect of the Protocol in accordance with Section 5(b) of the Protocol). The Protocol will also apply to any when-issued loan CDS transaction having a Trade Date prior to May 22, 2007. These transactions are separately included to ensure that if the parties did not expressly state which version of the standard terms would apply, then the New LCDS Terms will apply to that transaction. Some of the substantive changes between the Old LCDS Terms and the New LCDS Terms that will be effected by the Protocol are as follows: If the LCDX members of CDS IndexCo LLC vote to hold an auction under the LCDS Auction Rules in relation to a Reference Entity and Designated Priority, all single name LCDS transactions governed by the New LCDS Terms that are triggered within a specified time frame will be cash-settled based on a price determined by an auction similar to recent unsecured CDS protocols (an “Auction”). Parties must independently declare a Credit Event and provide Publicly Available Information to be eligible for settlement under the Auction. If an Auction fails or is abandoned, Physical Settlement will apply to LCDS transactions under the revised LSTA Physical Settlement Rider, with an extended period to deliver a Notice of Physical Settlement. Buyer is prohibited from delivering a Notice of Physical Settlement for 21 calendar days after the Event Determination Date. This standstill is intended to ensure that as many transactions as possible are captured by any Auction, since transactions for which a NOPS Fixing Date has occurred prior to the announcement that an Auction will occur are not included in the Auction. If there is a Relevant Secured List with respect to a Reference Entity that is withdrawn by the Secured List Publisher, the Calculation Agent will automatically commence a search for a Substitute Reference Obligation. Under the Old LCDS Terms, such a search began only upon request from either party or the delivery of a Credit Event Notice. This change is expected to streamline the operation of the optional termination provisions (applicable when there is no Relevant Secured List of the Reference Entity for 30 Business Days). The Secured List Publisher is the Polling Agent if there was a Relevant Secured List within the 30 Business Day period prior to the date being tested under the poll. It should be noted that there is no adherence fee required for ISDA members or non-ISDA members submitting Adherence Letters in connection with the LCDS Protocol. The LCDS Protocol is open to ISDA members and non-members. The Protocol was originally open between July 24, 2007 and August 24, 2007. This period has been extended until September 14, 2007, in order to maximize the number of adherents to the Protocol.

List of Adhering Parties LCDS Protocol Text Form of Adherence Letter Adherence Letter Submission Process Frequently Asked Questions

The US Treasury sent Secretary Paulson as part of the Presidents’ Financial Working Group to Financial Stability Forum meetings who told them even as early as 2000, that changes had to be made for credit default swaps, subprime and commercial mortgage backed securities, credit derivatives and leverage to liquidity ratios – the US Republican run administration chose to not do anything – if they had, we wouldn’t have this situation today or last year – they had time to fix it and chose not to do it – here’s proof –

Presidents’ Financial Working Group -

Working Group on Financial Markets
From Wikipedia, the free encyclopedia

The Working Group on Financial Markets (also, President’s Working Group on Financial Markets, the Working Group, and colloquially the Plunge Protection Team) was created by Executive Order 12631,[1] signed on March 18, 1988 by United States President Ronald Reagan.

The Group was established explicitly in response to events in the financial markets surrounding October 19, 1987 (“Black Monday”) to give recommendations for legislative and private sector solutions for “enhancing the integrity, efficiency, orderliness, and competitiveness of [United States] financial markets and maintaining investor confidence”.[1]

As established by Executive Order 12631, the Working Group consists of:

* The Secretary of the Treasury, or his designee (as Chairman of the Working Group);

* The Chairman of the Board of Governors of the Federal Reserve System, or his designee;

* The Chairman of the Securities and Exchange Commission, or his designee; and

* The Chairman of the Commodity Futures Trading Commission, or her designee.

[etc.]

http://en.wikipedia.org/wiki/Working_Group_on_Financial_Markets

***

Working Group on Highly Leveraged Institutions (HLIs)

5 April 2000

This working group was asked to:

• assess the challenges posed by highly leveraged institutions (HLIs) to financial stability (in international markets and in smaller economies); and

• achieve consensus on supervisory/regulatory measures to minimize their destabilising potential.

This first report sets out 10 recommendations to address systemic risk and market dynamics issues.

http://www.financialstabilityboard.org/publications/r_0004a.htm

(Read this – they were told to resolve this mess that created the Bear Stearns, Lehman Brothers, Merrill Lynch economic foundation impacts at this meeting in 2000 with the Presidents’ Financial Working Group and then that information was continuously covered and insistence made about changes that needed to be put in place “or else” – and what the “or else” would be. – But they did nothing.)

PDF 162 pages, 829 kb

• FSB home
• Publications

Working Group on Highly Leveraged Institutions (HLIs)

5 April 2000

3. The key issues arising from the LTCM episode are twofold. First, how best to address the systemic risks arising from the accumulation of high levels of leverage in financial markets. Second, how to reduce the potential market and economic impact of the sudden and disorderly collapse of an unregulated HLI. In the market conditions of late 1998, the disorderly liquidation of a hedge fund as large and as leveraged as LTCM could also have imposed substantial direct losses on its counterparties. Significant
secondary losses could have been imposed on other firms, through the rapid liquidation and closing out of LTCM’s positions and the collateral supporting its funding. The potential widespread disruption in financial markets and possible collapse of some major firms would have posed grave dangers to the stability of the financial system and the health of the global economy.

The Report stresses the importance of leverage, particularly in the context of large players with complex market and credit exposures.
Although leverage itself is neither strictly synonymous with risk nor straightforward to define, high leverage – and its interaction with other elements of risk – can nevertheless produce significant concerns from the perspective of the financial system as a whole.
4. The market dynamics issues relating to HLI activities in small and medium-sized open economies are: the potential for large and concentrated positions seriously to amplify market pressures, and the risk that market integrity may be compromised by aggressive trading practices. The Working Group examined the experiences of six economies in whose markets HLIs were active during 1998.

(pp. 1 – summary points)

[etc.]

6. The Working Group also considered, but did not recommend, a further range of
potential policy options including an international credit register specifically directed at
HLIs and direct regulation of currently unregulated HLIs. However, it notes that
reconsideration of these proposals may be appropriate in the future. While it is difficult
to be precise about the circumstances that might lead to this, the failure to carry through
properly the recommended measures within this Report is likely to prompt such a
reconsideration.
7. In many of the above areas, considerable work has already been done, or is under way, by private and public sector organisations. In particular, the reports of the Basel Committee’s Working Group on HLIs2, the US President’s Working Group (PWG)3, the International Swaps and Derivatives Association (ISDA) 1999 Collateral Review4, the CRMPG5, the IOSCO Hedge Fund Task Force6 and a group of five large hedge fund managers7 (together with a separate report by Tiger LLC) contain useful analysis and recommendations on issues relating to HLIs.
8. Taking forward the full range of these initiatives, and in particular ensuring that the changes required to strengthen market discipline are sustained, will require considerable effort. It is critical that these measures are carried forward with high priority by all the agents identified in this Report. This work becomes more pressing given the pace of financial market development, the degree of financial market inter-relationships and the
complexity inherent in many new products.

2 Banks Interactions with Highly Leveraged Institutions and the accompanying Sound Practices for Banks Interactions
with Highly Leveraged Institutions (both January 1999). See also the follow up report on the Implementation of the Committee’s Sound Practice Guidelines relating to Banks’ Interactions with Highly Leveraged Institutions (January 2000).
3 Hedge Funds, Leverage, and the Lessons of Long-Term Capital Management (April 1999).
4 ISDA 1999 Collateral Review.
5 Improving Counterparty Risk Management Practices (June 1999).
6 Hedge Funds and Other Highly Leveraged Institutions (November 1999).
7 Sound Practices for Hedge Fund Managers (February 2000).

(pp. 4)

(from the Financial Stability Forum – which the Presidents’ Working Financial Group participated with over all of the years during the Republican administrations – 2000 onward, especially – )

http://www.financialstabilityboard.org/publications/r_0004a.pdf?noframes=1

***

March 22, 2008 – Treasury and Federal Reserve already knew there was a serious problem and yet they testified to Congress at the time that there was no more than a “slight contraction” expected in the US economy – too many lies, too many backroom deals, too much blue ball bull from Republican administration officials and Hannity who has become a news story all by himself on FoxNews today interviewing himself for the news – Secretary Paulson testimony in Congress today – and Lehman Brothers, Merrill Lynch and bailouts giving our money away to their friends -

On November 20, 2006, Lehman announced its Neuberger Berman subsidiary would acquire H.A. Schupf & Co., a money-management firm targeted at wealthy individuals. Its $2.5 billion of assets would join Neuberger’s $50 billion in high-net-worth client assets under management.^[40]

An article in the The Wall Street Journal on September 15, 2008, announcing that Lehman Brothers Holdings filed for Chapter 11 bankruptcy protection, quoted Lehman officials regarding Neuberger Berman: “Neuberger Berman LLC and Lehman Brothers Asset Management will continue to conduct business as usual and will not be subject to the bankruptcy case of the parent company, and its portfolio management, research and operating functions remain intact. In addition, fully paid securities of customers of Neuberger Berman are segregated from the assets of Lehman Brothers and aren’t subject to the claims of Lehman Brothers Holdings’ creditors, Lehman said.“[1]

Just before the collapse of Lehman Brothers, executives at Neuberger Berman sent e-mail memos suggesting, among other things, that the Lehman Brothers’ top people forgo multi-million dollar bonuses to “send a strong message to both employees and investors that management is not shirking accountability for recent performance.”

**

Lehman Brothers Investment Management Director George Herbert Walker IV, second cousin to U. S. President George Walker Bush, dismissed the proposal, going so far as to actually apologize to other members of the Lehman Brothers executive committee for the idea of bonus reduction having been suggested. He wrote, “Sorry team. I am not sure what’s in the water at Neuberger Berman. I’m embarrassed and I apologize.”[2]

**

Controversy of executive pay during crisis

Richard Fuld, head of Lehman Brothers faced angry questioning from the committee’s members. Henry Waxman, a Democrat, asked: “Your company is now bankrupt, our economy is in crisis, but you get to keep $480 million (£276 million). I have a very basic question for you, is this fair?”^[41] Mr Fuld said that he had in fact taken about $300 million (£173 million) in pay and bonuses over the past eight years.^[41] Despite Mr Fuld’s defense on his high pay, Lehman Brothers executive pay was reported to have increased significantly before filing for bankruptcy.^[42] On October 17, 2008, CNBC reported that several Lehman executives, including Richard Fuld, have been subpoenaed in a case relating to securities fraud.

http://en.wikipedia.org/wiki/Bankruptcy_of_Lehman_Brothers

***

March 22, 2008

Goldman Sachs and Lehman Brothers face downgrading

Tom Bawden in New York

//

Recommend?

<!–

–>

Profits at Goldman Sachs and Lehman Brothers could deteriorate significantly this year if the turmoil sweeping the capital markets persists, a leading research agency said yesterday.

Standard & Poor’s (S&P) gave warning that it might cut the credit ratings on both investment banks, lowering the outlook on Goldman and Lehman from “stable” to “negative”. That comment, which coincided with reports of looming job losses at Goldman, could result in higher borrowing costs and a fall in the banks’ shares.

[ . . . ]

S&P said that it expected independent securities firms, such as Goldman and Lehman, to report profit declines of between 20 per cent and 30 per cent for the year. “Nonetheless, we see some possibility, were there to be persisting capital markets turmoil and sharply weakening economic conditions, that financial performance could deteriorate significantly more than we now assume, which would call the current ratings into question,” the S&P report read.

//

Related Links

• Fed’s new credit facility entices two banks

• Lehman Brothers stays above the Wall St fray

Goldman Sachs has a rating of AA- on its long-term senior debt, the fourth-highest level, and Lehman is one notch below, at A+. The S&P report comes in a week in which Goldman and Lehman reported significant first-quarter profit declines that, nonetheless, were considerably ahead of consensus analyst forecasts.

This week Goldman reported a 53 per cent decline in first-quarter profits to $1.51 billion (£762 million), as the group announced about $2.5billion of writedowns relating to so-called leveraged loans that finance private equity deals, mortgages and direct investments. Meanwhile, Lehman recorded a 57 per cent decline, to $489 million, after taking a $2 billion hit from the credit crunch.

S&P’s potential ratings downgrade emerged only hours after reports that Goldman Sachs would impose significant job cuts in its investment banking, debt and equity underwriting and merger advisory units. It is understood that Goldman, which employs about 32,000 worldwide and typically cuts the bottom 5 per cent of its workforce annually, will eliminate additional jobs in its worst-performing departments this year. However, David Viniar, the chief financial officer, said that the group’s headcount for the year would grow slightly, and it is understood that this is still the plan, even with the extra job cuts. Goldman declined to comment on the possible additional redundancies.

The cuts would follow the elimination of a further 1,800 jobs at Citigroup worldwide, which is expected to result in hundreds of positions disappearing in the City. The cuts, which will affect investment banking and trading as well as hedge fund and private equity services, come on top of about 21,200 redundancies in the past year.

Wall Street and the City face huge redundancies as the credit crunch continues to spread. This week the Centre for Economic Business Research increased its estimate for the number of job losses in the City this year from 6,500 three months ago to 10,000.

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article3599207.ece

***

Uncle Henry “Hank” Paulson Continues Congressional Testimony – but what did he mean, “The Fed could loan money to Lehman in bankruptcy” – he said that today in testimony – why did taxpayers give Lehman free money during bankruptcy? who did it go to, Goldman Sachs to pay off counterparty risks? What kind of backroom money finagling is that?

My Note -

Did the Feds and Treasury as the Bank of Japan if they would purchase Lehman? Something is way wrong with this picture and they certainly knew that Merrill Lynch was a problem long before September 17, 2008 – because there were already efforts to rescue them . . .

Uncle Henry “Hank” Paulson Continues Congressional Testimony – but what did he mean, “The Fed could loan money to Lehman in bankruptcy” – he said that today in testimony – why did taxpayers give Lehman free money during bankruptcy? who did it go to, Goldman Sachs to pay off counterparty risks? What kind of backroom money finagling is that?

- cricketdiane

***

Lehman Brothers – beneficiaries ikikkk

Board of Directors

• Richard S. Fuld, Jr., Chairman and Chief Executive Officer^[82]
• Michael L. Ainslie^[82]
• John F. Akers^[82]
• Roger S. Berlind^[82]
• Thomas Cruikshank^[82]
• Marsha Johnson Evans^[82]
• Sir Christopher Gent^[82]
• Roland A. Hernandez^[82]
• Dr. Henry Kaufman^[82]
• John D. Macomber^[82]

Former Officers

• Richard S. Fuld, Jr.
• Tom Russo
• Scott J. Freidheim
• Bart McDade
• Joe Gregory
• Ion Lowitt
• Jessie Bhattal
• Jeremy Isaacs
• Skip McGee
• George Walker
• Michael Gelband

See also

• Bankruptcy of Lehman Brothers

Scott J. Freidheim, former Chief Administrative Officer subsequently took a job for Sears Holding Corporation

http://en.wikipedia.org/wiki/Lehman_Brothers

**

JPMorgan Gave Lehman $138 Billion After Bankruptcy (Update3)
By Tiffany Kary and Chris Scinta

Sept. 16 (Bloomberg) — JPMorgan Chase & Co. gave $138 billion this week in Federal Reserve-backed advances to the broker dealer unit of Lehman Brothers Holdings Inc. to settle Lehman trades and keep financial markets stable amid the biggest bankruptcy in history, according to a court filing.

One advance of $87 billion was made on Sept. 15 after the pre-dawn bankruptcy filing, and another of $51 billion was made today, Lehman said in court documents. Both advances were made to settle securities transactions with customers of Lehman and its clearance parties, according to the filing.

The advances were necessary “to avoid a disruption of the financial markets,” Lehman said in the filing.

The first advance was repaid by the Federal Reserve Bank of New York on the night of Sept. 15, Lehman said. JPMorgan said in a statement that the $51 billion advance was also repaid and the process will zero out the advances at the end of each day.

U.S. Bankruptcy Judge James Peck in Manhattan approved an order confirming that advances JPMorgan is providing are covered by existing collateral agreements with Lehman and its affiliates. JPMorgan holds about $17 billion in collateral to secure the money it advances to clear the trades, Lehman attorney Richard Krasnow said.

[ . . . ]

Requests to obtain a bankruptcy loan and schedule the sale of Lehman assets were postponed until tomorrow.

JPMorgan said in a statement before the hearing that it would “be unable to continue” making future advances needed to settle trades unless the court granted its claims special status.

Both advances were “guaranteed by Lehman” through collateral of the firm’s holding company under an agreement reached in August, according to the filing. The advances were made at the request of Lehman and the Federal Reserve, according to the filing.

Lehman disclosed the advances in a motion seeking court permission to give JPMorgan’s claims special status in its bankruptcy and to certify they are guaranteed by Lehman’s collateral.

[ etc. ]

Investment banks have been aiding or buying peers since the U.S. Treasury Department and the Federal Reserve established that its rescue of Bear Stearns Cos. in March hadn’t set a precedent and declined to save Lehman before it filed for bankruptcy with debt of more than $613 billion.

To contact the reporter on this story: Christopher Scinta in New York bankruptcy court at csinta@bloomberg.net and; Tiffany Kary in New York bankruptcy court at tkary@bloomberg.net.
Last Updated: September 16, 2008 18:36 EDT

http://www.bloomberg.com/apps/news?pid=20601110&sid=aiZ4hbo2tr44

***

Lehman Brothers Sale Seems Unlikely

06/12/08 – 04:59 PM EDT

While the rapid deterioration at Lehman Brothers(LEH Quote), evidenced Thursday with the ouster of two top executives, has reminded many of Bear Stearns’ downfall, few expect the firm to meet the same fate.

Many investors fear that Lehman, which on Thursday ousted CFO Erin Callan and COO Joseph Gregory three days after it warned of massive loss for the second quarter, has some speculators floating names of potential buyers. Bear, on the verge of bankruptcy, in March agreed to sell itself to JPMorgan Chase(JPM Quote) after the firm’s stock was relentlessly hammered by rumors about its liquidity position. Bear shareholders approved the deal last month.

But several industry observers say Lehman can survive, because the firm’s situation is different in a lot of ways to the one Bear faced.

[etc.]

RealMoney.com contributor Doug Kass on Thursday speculated private equity firms Blackstone Group(BX Quote) or J.C. Flowers could take a minority stake in Lehman. Other sources told TheStreet.com private equity investor Citadel or money manager BlackRock (BLK Quote) also could be in the mix.

http://www.thestreet.com/story/10421130/lehman-brothers-sale-seems-unlikely.html

***

http://chattahbox.com/business/2009/07/14/goldman-executives-unloaded-700m-of-stock-after-lehman-brothers-collapse/

(ChattahBox)—A Recent filing with the SEC revealed that Goldman Sachs executives sold stock worth nearly $700 million, soon after Lehman Brothers collapsed and during the time the firm received a $10 billion federal bailout.

These stock sales are sure to raise the ire of Congressional lawmakers, as Goldman is poised to announce one of its strongest ever second-quarter earnings, after paying back TARP funds to the U.S. government.

During an eight-month period, Goldman partners sold more than $691 million in company stock. A comparable period from September 2007 to April 2008, when stock prices were higher, shows Goldman executives sold only $438 million in stock.

Goldman officials say the unusually high stock sales by partners could have been in response to margin calls, because of the company stock put up as collateral for loans.

Stock sales by Goldman partners have always raised eyebrows, but certainly more so, when such a large volume of company stock was unloaded immediately after Lehman brothers went under.

In related news Goldman Sachs reported earnings profit surge of 65 per cent to $3.44 billion in the quarter ending June 26, this morning, Goldman Sachs, which recently returned bailout funds worth $10 billion to the Federal government, recorded second-quarter revenues to the tune of $13.76 billion.

Source

***

Lehman’s bankruptcy is expected to cause some depreciation in the price of commercial real estate. The prospect for Lehman’s $4.3 billion in mortgage securities getting liquidated sparked a selloff in the commercial mortgage-backed securities (CMBS) market. Additional pressure to sell securities in commercial real estate is feared as Lehman gets closer to liquidating its assets. Apartment-building investors are also expected to feel pressure to sell as Lehman unloads its debt and equity pieces of the $22 billion purchase of Archstone, the third-largest United States Real Estate Investment Trust (REIT). Archstone’s core business is the ownership and management of residential apartment buildings in major metropolitan areas of the United States. Jeffrey Spector, a real-estate analyst at UBS said that in markets with apartment buildings that compete with Archstone, “there is no question that if you need to sell assets, you will try to get ahead” of the Lehman selloff, adding “Every day that goes by there will be more pressure on pricing.”^[24]

Several money funds and institutional cash funds had significant exposure to Lehman with the institutional cash fund run by The Bank of New York Mellon and the Primary Reserve Fund, a money-market fund, both falling below $1 per share, called “breaking the buck“, following losses on their holdings of Lehman assets. In a statement The Bank of New York Mellon said its fund had isolated the Lehman assets in a separate structure. It said the assets accounted for 1.13% of its fund. The drop in the Primary Reserve Fund was the first time since 1994 that a money-market fund had dropped below the $1-per-share level.

Putnam Investments, a unit of Canada’s Great-West Lifeco, shut a $12.3 billion money-market fund as it faced “significant redemption pressure” on September 17, 2008. Evergreen Investments said its parent Wachovia Corporation would “support” three Evergreen money-market funds to prevent their shares from falling.^[25] This move to cover $494 million of Lehman assets in the funds also raised fears about Wachovia’s ability to raise capital.^[26]

About 100 hedge funds used Lehman as their prime broker and relied largely on the firm for financing. As administrators took charge of the London business and the U.S. holding company filed for bankruptcy, positions held by those hedge funds at Lehman were frozen. As a result the hedge funds are being forced to de-lever and sit on large cash balances inhibiting chances at further growth.^[27]

In Japan, banks and insurers announced a combined 249 billion yen ($2.4 billion) in potential losses tied to the collapse of Lehman. Mizuho Trust & Banking Co. cut its profit forecast by more than half, citing 11.8 billion yen in losses on bonds and loans linked to Lehman. The Bank of Japan Governor Masaaki Shirakawa said “Most lending to Lehman Brothers was made by major Japanese banks, and their possible losses seem to be within the levels that can be covered by their profits,” adding “There is no concern that the latest events will threaten the stability of Japan’s financial system.”^[28] During bankruptcy proceedings a lawyer from The Royal Bank of Scotland Group said the company is facing between $1.5 billion and $1.8 billion in claims against Lehman partially based on an unsecured guarantee from Lehman and connected to trading losses with Lehman subsidiaries, Martin Bienenstock.^[29]

Lehman was a counterparty to mortgage financier Freddie Mac in unsecured lending transactions that matured on September 15, 2008. Freddie said it had not received principal payments of $1.2 billion plus accrued interest. Freddie said it had further potential exposure to Lehman of about $400 million related to the servicing of single-family home loans, including repurchasing obligations. Freddie also said it “does not know whether and to what extent it will sustain a loss relating to the transactions” and warned that “actual losses could materially exceed current estimates.” Freddie was still in the process of evaluating its exposure to Lehman and its affiliates under other business relationships.^[30]

After Constellation Energy was reported to have exposure to Lehman, its stock went down 56% in the first day of trading having started at $67.87. The massive drop in stocks led to the New York Stock Exchange halting trade of Constellation. The next day, as the stock plummeted as low as $13 per share, Constellation announced it was hiring Morgan Stanley and UBS to advise it on “strategic alternatives” suggesting a buyout. While rumors suggested French power company Électricité de France would buy the company or increase its stake, Constellation ultimately agreed to a buyout by MidAmerican Energy, part of Berkshire Hathaway (headed by billionaire Warren Buffett).^[31][32][33]

The Federal Agricultural Mortgage Corporation or Farmer Mac said it would have to write off $48 million in Lehman debt it owned as a result of the bankruptcy. Farmer Mac said it may not be in compliance with its minimum capital requirements at the end of September.^[34]

In Hong Kong more than 43,700 individuals in the city have invested in HK$15.7 billion of “guaranteed mini-bonds” (迷你債券) from Lehman.^[35][36][37] Many claim that banks and brokers mis-sold them as low-risk. Conversely, bankers note that minibonds are indeed low-risk instruments since they were backed by Lehman Brothers, which until just months before its collapse was a venerable member of Wall Street with high credit and investment ratings. The default of Lehman Brothers was a low probability event, which was totally unexpected. Indeed, many banks accepted minibonds as collateral for loans and credit facilities. Another HK$3 billion has been invested in similar like derivatives.

The Hong Kong government proposed a plan to buy back the investments at their current estimated value, which will allow investors to partially recover some of their loss by the end of the year.^[38] HK Chief executive Donald Tsang insisted the local banks respond swiftly to the government buy-back proposal as the Monetary Authority received more than 16,000 complaints.^[35][37][38] On October 17 He Guangbe, chairman of the Hong Kong Association of Banks, agreed to buy back the bonds, which will be priced using an agreed upon methodology based on its estimated current value.^[39] This episode has deep repercussions on the banking industry, where misguided investor sentiments have become hostile to both wealth management products as well as the banking industry as a whole. Under intense pressure from the public, all political parties have come out in support of the investors, further fanning distrust towards the banking industry.

http://en.wikipedia.org/wiki/Bankruptcy_of_Lehman_Brothers

***

Legislators and Analysts – What Recession?

BANKS AFFECTED BY THE GLOBAL CRISIS – 2008

Giants of the business world, such as Lehman Brothers and Merrill Lynch, have crumbled or been bought out.

Bank	Date	Status	Website
Fannie Mae	07 Sep	Nationalised	Fannie Mae
Freddie Mac	07 Sep	Nationalised	Freddie Mac
Lehman Bros	15 Sep	Collapsed	Lehman Bros
Merrill Lynch	15 Sep	Taken over	Merrill Lynch
AIG	16 Sep	Part-nationalised	AIG
HBOS	17 Sep	Taken over	HBOS
WaMu	25 Sep	Collapsed and sold	WaMu
Fortis	28 Sep	Nationalised	Fortis
Bradford & Bingley	29 Sep	Nationalised	Bradford & Bingley
Wachovia	29 Sep	Taken over	Wachovia
Glitnir	29 Sep	Nationalised	Glitnir
Hypo Real Estate	06 Oct	Rescue package	Hypo Real Estate
RBS	13 Oct	Part-nationalised	RBS
Lloyds TSB	13 Oct	Part-nationalised	Lloyds TSB

http://news.bbc.co.uk/nol/ukfs_news/hi/newsid_7640000/newsid_7644200/7644238.stm

Page last updated at 08:39 GMT, Monday, 3 November 2008

BBC

Finance crisis: In graphics

***

London shares slip early on; BoE rate caution, miners weigh; …

Forbes – May 10, 2007
The Dow Jones industrials rose to another record close. The Dow Jones closed up 53.8 points at 13362.9, while the Nasdaq Composite took on 4.59 at 2576.34 and the S&P 500 index added 4.9 at 1,512.6.

Meanwhile, in Asia this morning, Tokyo’s Nikkei 225 index closed down 11.16 points at 17,736.961, while Hong Kong’s Hang Seng was 72.51 points lower at 20,772.27 by midday.

***

February 5 2008: 11:35 AM EST

Selloff accelerates on recession fears
Investors are spooked by a report that feeds into worries that the economic downturn may be intensifying.

NEW YORK (CNNMoney.com) — The stock selloff quickened Tuesday morning, after a surprisingly weak service sector reading exacerbated bets that the economy is in a recession.

The Dow Jones industrial average (INDU) lost 1.9% nearly 2 hours into the session, the broader Standard & Poor’s 500 (SPX) index lost 2% and the Nasdaq composite (COMP) fell 1.7%.

Market breadth was negative. On the New York Stock Exchange, losers trounced winners three to one on volume of 480 million shares. On the Nasdaq, losers beat winners two to one on volume of 770 million shares.

Stocks retreated Monday as well, following last week’s big rally, as investors continued to worry that the credit and housing market crises will send the economy into recession, if it isn’t there already. Tuesday’s news added to such worries.

Economic doom and gloom. The ISM services index, a survey of services sector executives, showed business activity falling in January for the first time in five years. The report was released nearly an hour ahead of schedule, unnerving investors at the start of trade. The report countered last week’s reading on the manufacturing sector, which showed expansion. (Full Story).

“This is the most unequivocal sign we’ve had that the economy is weakening,” said Stephen Stanley, chief economist at RBS Greenwich Capital. “We’ve had data pointing in that direction, but they’ve been all over the map and it always seemed like there was a silver lining in the weak reports.”

[etc.]

http://money.cnn.com/2008/02/05/markets/markets_morning/?postversion=2008020511

***

Compensation

• • Congressional Quarterly’s Guide to Congress, 5th edition (Doc. Cen. JK 1021 .C75 2000)
    • Carries a history of Congressional salaries in vol. 2, p. 776
    • 2000 salary was $141,300 for both Senators and Representatives
  • Legistorm
    • Database of trips made by Members of Congress with price, destination, and who paid for it
    • Salaries for Senators and Representatives in 2008 were $169,300
  • Power Trips (American Radioworks)
    • Travel expenses, 2000-2005, by individual Congressmen and Senators
    • Travel money spent by the political parties
    • Most expensive trips and groups contributing the most to Congressional travel
  • Senate Ledger, 1790-1881
    • Digitized record of compensation and mileage reimbursements paid to Senators

Congressional Districts

District Maps

• • Congressional District Maps: 111th Congress (Chris Chubb)
    • Choose name of state; then either pan or choose city or district number to view
    • Map displays county and city names in a district as well as the representative
    • Coloring is by political party of current office holder

http://www.lib.umich.edu/govdocs/fedlegis.html#compensation

***

• Congressional Staff Employment Surveys (Congressional Management Organization)
  • Typical salaries of Congressional staff members by position, average age, and years of experience
  • Taken biennially for the House and Senate
  • Only the Senate Study, 1991-2001 is still free on the web
• Legistorm
  • Salaries of Congressional staff members, including interns
  • Searchable by name, Member of Congress, and committee

Legislative Histories

• • Detailed guide to tracing legislation
  • Includes committee, member, and political information

Policy Agendas Project (University of Washington)

• • Determine the amount of attention government gave to 19 major topics, 220 subtopics, or a section of the budget, 1946-2002
  • Filters allow you to choose topics and the type of material (budget, Congressional hearings, Presidential executive orders, laws, New York Times articles, CQ Almanac articles, and the Gallup Most Important Problem Index
  • Results yield data and graphs
  • Additional dataset tools available

***

http://www.legistorm.com/trip.html

The congressional trips in our database were funded by private organizations. By searching our data you can learn details of each trip taken by a member of Congress or their staff, and who paid for the travel. Read more about Congressional Travel.

Senate expected to post expense records online

Posted by LegiStorm on Monday, July 06, 2009

The Senate is expected to follow the House of Representative’s lead and post all member expenses online, the Associated Press reports.

Sen. Tom Coburn (R-Okla.) proposed the measure, which was approved and added to an appropriations bill allocating funds for the congressional budget. A final compromise version of the appropriations bill will need to be approved by the House and Senate before the measure will go into effect.

This follows last month’s announcement by the House that it would post the House’s Statement of Disbursements “at the earliest date.” Originally, that was expected to be the end of August. But The Hill reported last week that the House was going to delay the release until October to plan for the expected increase in online traffic.

The Associated Press quoted LegiStorm founder Jock Friedly to show the possible positive effect of adding transparency to the legislative expenses.

“There’s no question about it that any time you make records more accessible it’s much harder to get away with abuses,” said Friedly. “A little bit of embarrassment will go a long way to fixing some of the problems.”

Previously, the expense reports have only been released as printed volumes, running to thousands of pages covered in small type each quarter. The volumes are now made available to the public in basement offices House and Senate office buildings.

Until now, LegiStorm’s database of congressional salaries was the only online source for any of this data. But the salaries in our database represent only a fraction of the total disbursements made by Congress. The full disbursements also include everything from taxi cab fares to television purchases and rent payments. Members of Congress are required to spend taxpayer funds only on official business and not to pay for personal expenses.

LegiStorm hopes to add the full expense records to our database once the House and Senate post the information online.

posted in disbursements, House, Member’s Representational Allowance, Senate, The Hill, Associated Press

http://www.legistorm.com/blog/senate-expected-to-post-expense-records-online.html

***

Congressional Travel by Approver

http://www.legistorm.com/trip_browse_by_approver/index/sort/number/type/desc.html

Most Traveled Members of Congress and who paid for it – chart across several pages

*click on name of legislator to see specific info on trips and sponsors for it – & top traveling staffer, as well.

***

• Congressional Trip Statistics by Year
• Most-Traveled Members
• Most-Traveled Staffers
• Most-Active Sponsors
• Most-Expensive Trips
• Most-Popular Countries
• 2008 Presidential Candidates
• Trip Cost Over Time
• Scandal Sheet
• Trips Coinciding with Events

Info

• About Congressional Travel
• Trips FAQs

http://www.legistorm.com/trip.html

***

RL30240
Congressional Oversight Manual
May 01, 2007

Download Locations:

	Federation of American Scientists
	WikiLeaks

Summary:

The Congressional Oversight Manual was developed about 30 years ago following a three-day December 1978 Workshop on Congressional Oversight and Investigations. The workshop was organized by a group of House and Senate committee aides from both parties and the Congressional Research Service (CRS) at the request of the bipartisan House leadership. The Manual was produced by CRS with the assistance of a number of House committee staffers. In subsequent years, CRS sponsored and conducted various oversight seminars for House and Senate staff and updated the Manual as circumstances warranted. The last revision occurred in 2004. Worth noting is the bipartisan recommendation of the House members of the 1993 Joint Committee on the Organization of Congress (Rept. No. 103-413, Vol. I):

XML

Available Versions:

May 01, 2007
January 03, 2007
October 21, 2004

<!—->

Share this report

http://opencrs.com/document/RL30240

***

American taxpayers spend over $100 million a year to fund the Congressional Research Service, a “think tank” that provides reports to members of Congress on a variety of topics relevant to current political events. Yet, these reports are not made available to the public in a way that they can be easily obtained. A project of the Center for Democracy & Technology through the cooperation of several organizations and collectors of CRS Reports, Open CRS provides citizens access to CRS Reports already in the public domain and encourages Congress to provide public access to all CRS Reports. (More)

Featured Report Collections

	National Council for Science and the Environment (1661)
	Federation of American Scientists (1444)
	Thurgood Marshall Law Library/University of Maryland School of Law (598)
	National Memorial Institute for the Prevention of Terrorism (135)
	Center for Democracy & Technology (42)

[from-]

http://opencrs.com/

***

Featured Collections

Listed below are some of the largest collections of CRS reports available on the web. Inclusion on this list does not imply that the organization responsible for the collection is joining CDT in calling for Congress to make all reports directly available to the public.

	National Council for Science and the Environmen/National Library for the EnvironmentThe National Library for the Environment currently posts over 1000 CRS Reports on environmental and related topics. NCSE is committed to expanding, maintaining and updating its database of reports, making them available and searchable for the public. NCSE Collection NCSE Web Site Recent NCSE Reports [RSS] Recently Added NCSE Reports [RSS]
	Thurgood Marshall Law Library/University of Maryland School of LawThe CRS Reports collection of the Thurgood Marshall Law Library of the University of Maryland School of Law has been developed with an emphasis on the areas of Health Law and Policy and Terrorism and Homeland Security. TMLL Collection TMLL Web Site Recent TMLL Reports [RSS] Recently Added TMLL Reports [RSS] Web Site
	Federation of American ScientistsThe Federation of American Scientists Project on Government Secrecy works to promote public access to government information. The FAS CRS collection focuses on national security, intelligence, foreign policy and homeland security. FAS Collection Web Site Recent FAS Reports [RSS] Recently Added FAS Reports [RSS]
	IP Mall at Franklin Pierce Law CenterThe collection reports from the IP Mall at Franklin Pierce Law Center is focused on topics concerning intellectual property, telecommunications and technology. IP Mall Collection IP Mall Web Site Recent IP Mall Reports [RSS] Recently Added IP Mall Reports [RSS]
	National Memorial Institute for the Prevention of TerrorismThe National Memorial Institute for the Prevention of Terrorism (MIPT) is a federally funded, non-profit, non-partisan organization located in Oklahoma City. MIPT is the third component of the Oklahoma City National Memorial and is dedicated to preventing terrorism or mitigating its effects. MIPT focuses on first responders and strives to be a one-stop shop for information by providing a broad spectrum of resources on terrorism and homeland security, including Congressional Research Service reports. MIPT Collection MIPT Web Site Recent MIPT Reports [RSS] Recently Added MIPT Reports [RSS]
	Center for Democracy & TechnologyThe Center for Democracy & Technology is a non-profit, non-partisan public interest organization dedicated to developing and implementing public policies to protect and advance civil liberties and democratic values on the Internet. Among the issues found in reports housed by CDT are speech, privacy, copyright, and open government. CDT Collection CDT Web Site Recent CDT Reports [RSS] Recently Added CDT Reports [RSS]

http://opencrs.com/collections/

***

Agriculture Air Biodiversity Climate Change CRS Briefing Books Economics & Trade Energy Federal Agencies Forests General General Interest Government Information International International Finance Legislative Marine Mining Natural Resources Pesticides Pollution Population Public Lands Risk & Reform Science & Technology Stratospheric Ozone Transportation Waste Management Water Wetlands New & Updated

The NLE currently posts 2137 CRS Reports on environmental and related topics. New & Updated Reports The Congressional Research Service (CRS), part of the Library of Congress, prepares its reports for the U.S. Congress. CRS products undergo review for accuracy and objectivity and contain nontechnical information that can be very useful to people interested in environmental policy. CRS does not itself provide these documents to the general public. Although CRS documents are prepared specifically for Congress and not widely distributed, their distribution is not protected by law or copyright. NCSE is committed to expanding, maintaining and updating its database of reports, making them available and searchable for the public. To browse report titles and abstracts for a specific topic, choose one from from the list to the left. Alternatively, search with a keyword using the quick search above the topic list or try a more selective search with the following advancd search form.

[from-]

http://ncseonline.org/NLE/CRS/

***

The Plum Book (United States Government Policy and Supporting Positions): Main Page

Every four years, just after the Presidential election, the United States Government Policy and Supporting Positions, commonly known as the Plum Book, is published, alternately, by the Senate Committee on Governmental Affairs and the House Committee on Government Reform. The Plum Book is used to identify presidentially appointed positions within the Federal Government. More.

Browse the Plum Book

• November 2008 Plum Book

http://www.gpoaccess.gov/plumbook/

***

The Plum Book (United States Government Policy and Supporting Positions): 2008 Edition

The United States Government Policy and Supporting Positions (Plum Book) (1.26 MB, 210 pages) has been made available in its entirety, as a single PDF file. GPO has refined the 2008 Plum Book by adding bookmarks to it and optimizing it for the web. In addition, the entire report is also available in TEXT format (1.91 MB).

The report is also available as a collection of smaller PDFs arranged in the browse table below based on the Plum Book’s table of contents. You can download entire chapters (such as the Legislative Branch or Executive Branch Departments), or just information on individual commissions, councils,corporations, departments, offices, etc… The majority of the PDF files in the browse table are between 30 KB and 90 KB; the PDFs of the whole chapters range from 40 KB to 900 KB.

You can purchase an official print copy of the 2008 Plum Book through the U.S. Government Online Bookstore.

United States Government Policy and Supporting Positions (2008 Edition)
Committee on Governmental Reform, U.S. House of Representatives
110th Congress, 2d Session
Legislative Branch | Executive Branch | Departments
Independent Agencies and Government Corporations | Appendices

Document Title	File Format
COVER	PDF
COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS	PDF
FOREWORD	PDF
LEGEND	PDF
CONTENTS	PDF
LEGISLATIVE BRANCH	PDF
Architect of the Capitol	PDF
Government Accountability Office	PDF
Government Printing Office	PDF
Library of Congress	PDF
United States Tax Court	PDF
EXECUTIVE BRANCH – EXECUTIVE OFFICE OF THE PRESIDENT	PDF
White House Office	PDF
Office of Policy Development	PDF
Office of Administration	PDF
Office of Management and Budget	PDF
Council of Economic Advisors	PDF
Council on Environmental Quality	PDF
Office of the U.S. Trade Representative	PDF
Office of Science and Technology Policy	PDF
Office of National Drug Control Policy	PDF
National Security Council	PDF
EXECUTIVE BRANCH – DEPARTMENTS	PDF
Department of Agriculture	PDF
Department of Commerce	PDF
Department of Defense	PDF
Office of the Secretary	PDF
Air Force	PDF
Army	PDF
Navy	PDF
Department of Education	PDF
Department of Energy	PDF
Department of Health and Human Services	PDF
Department of Homeland Security	PDF
Department of Housing and Urban Development	PDF
Department of the Interior	PDF
Department of Justice	PDF
Department of Labor	PDF
Department of State	PDF
Department of Transportation	PDF
Department of Treasury	PDF
Department of Veterans Affairs	PDF
INDEPENDENT AGENCIES AND GOVERNMENT CORPORATIONS	PDF
Advisory Council on Historic Preservation	PDF
American Battle Monuments Commission	PDF
Appalachian Regional Commission	PDF
Architectural and Transportation Barriers Compliance Board (United States Access Board)	PDF
Arctic Research Commission	PDF
Barry Goldwater Scholarship and Excellence in Education Foundation	PDF
Broadcasting Board of Governors	PDF
Central Intelligence Agency	PDF
Chemical Safety and Hazard Investigation Board	PDF
Christopher Columbus Fellowship Foundation	PDF
Commission on Civil Rights	PDF
Commission of Fine Arts	PDF
Committee for Purchase from People Who are Blind or Severely Disabled	PDF
Commodity Futures Trading Commission	PDF
Consumer Product Safety Commission	PDF
Corporation for National and Community Service	PDF
Court Services and Offender Supervision Agency for the District of Columbia	PDF
Defense Nuclear Facilities Safety Board	PDF
Delta Regional Authority	PDF
Environmental Protection Agency	PDF
Equal Employment Opportunity Commission	PDF
Export-Import Bank of the United States	PDF
Farm Credit Administration	PDF
Federal Communications Commission	PDF
Federal Deposit Insurance Corporation	PDF
Federal Election Commission	PDF
Federal Energy Regulatory Commission	PDF
Federal Housing Finance Board	PDF
Federal Labor Relations Authorities	PDF
Federal Maritime Commission	PDF
Federal Mediation and Conciliation Service	PDF
Federal Mine Safety and Health Review Commission	PDF
Federal Reserve System	PDF
Federal Retirement Thrift Investment Board	PDF
Federal Trade Commission	PDF
General Services Administration	PDF
Harry S Truman Scholarship Foundation	PDF
Interagency Council on the Homeless	PDF
Inter-American Foundation	PDF
International Boundary and Water Commission	PDF
Interstate Commission on the Potomac River Basin	PDF
James Madison Memorial Fellowship Foundation	PDF
Japan-United States Friendship Commission	PDF
Marine Mammal Commission	PDF
Medicare Payment Advisory Commission	PDF
Merit Systems Protection Board	PDF
Millennium Challenge Corporation	PDF
National Aeronautics and Space Administration	PDF
National Archives and Records Administration	PDF
National Capital Planning Commission	PDF
National Council on Disability	PDF
National Credit Union Administration	PDF
National Foundation on the Arts and the Humanities	PDF
National Labor Relations Board	PDF
National Mediation Board	PDF
National Science Foundation	PDF
National Transportation Safety Board	PDF
Nuclear Regulatory Commission	PDF
Nuclear Waste Technical Review Board	PDF
Occupational Safety and Health Review Commission	PDF
Office of Government Ethics	PDF
Office of the Federal Coordinator Alaska Natural Gas Transportation Projects	PDF
Office of Navajo and Hopi Indian Relocation	PDF
Office of Personnel Management	PDF
Office of Special Counsel	PDF
Overseas Private Investment Corporation	PDF
Peace Corps	PDF
Pension Benefit Guaranty Corporation	PDF
Postal Regulatory Commission	PDF
President’s Commission on White House Fellowships	PDF
Presidio Trust	PDF
Railroad Retirement Board	PDF
Securities and Exchange Commission	PDF
Selective Service System	PDF
Small Business Administration	PDF
Smithsonian Institution	PDF
Social Security Administration	PDF
Tennessee Valley Authority	PDF
Trade and Development Agency	PDF
United States Agency for International Development	PDF
United States-China Economic and Security Review Commission	PDF
United States Commission on International Religious Freedom	PDF
United States Election Assistance Commission	PDF
United States Holocaust Memorial Council	PDF
United States Institute of Peace	PDF
United States International Trade Commission	PDF
United States Postal Service	PDF
Utah Reclamation Mitigation and Conservation Commission	PDF
Vietnam Education Foundation	PDF
APPENDICES	PDF
1.  Summary of Positions Subject to Noncompetitive Appointment	PDF
2.  Senior Executive Service	PDF
3.  Schedule C Positions	PDF
4.  Federal Salary Schedules for 2008	PDF
5. Office of the Vice President	PDF
ONLINE ADDENDUM – February 13, 2009
U.S. Commission of Fine Arts Office of the Director of National Intelligence	PDF

---

A service of the U.S. Government Printing Office.

Last updated: April 1, 2009
Page Name: http://www.gpoaccess.gov/plumbook/2008/index.html

[from - ]

http://www.gpoaccess.gov/plumbook/2008/index.html

***

APPENDIX NO. 4
FEDERAL SALARY SCHEDULES FOR 2008
The information in the body of this report reflects grades or salaries in effect on the first pay
period on or after January 1, 2008.
EXECUTIVE SCHEDULE (EX)
Level I ……………………………………………………………………………………………………………. $191,300
Level II …………………………………………………………………………………………………………… 172,200
Level III …………………………………………………………………………………………………………. 158,500
Level IV ………………………………………………………………………………………………………….. 149,000
Level V …………………………………………………………………………………………………………… 139,600
SENIOR EXECUTIVE SERVICE SCHEDULE (ES)
Pay ranges for the Senior Executive Service (SES) are established by law. The minimum is 120
percent of the rate of basic pay for GS–15, step 1. For agencies without a certified SES performance
appraisal system, SES members’ pay may not exceed the rate payable for level III of the Executive
Schedule. For agencies with a certified SES performance appraisal system, SES members’ pay may
not exceed the rate payable for level II of the Executive Schedule. SES members are not entitled
to locality-based comparability payments.
Structure of the SES Pay System Minimum Maximum
Agencies with a Certified SES Performance Appraisal System ……………………………………………………………. $114,468 $172,200
Agencies without a Certified SES Performance Appraisal System ……………………………………………………….. 114,468 158,500

[Etc.]

http://www.gpoaccess.gov/plumbook/2008/p203-209_appendix4.pdf

***

My Note -

Between what the states are paying legislators and their staff members, their teams of lawyers to write laws and to cover their asses in various departments, along with the salaries of the staffs and agency heads, legislators and executive branch leadership, it is no wonder that there are economic problems. And it is no wonder that they don’t know there is a problem with the rest of America’s economy. They don’t have a problem . . .

They’re all making money without showing up the entire year, among other things from cab rides to trips around the world, per diems and every other little thing they might need.

- cricketdiane, 07-16-09

****

Petroleum industry profit-making is funded by US taxpayers – the gas companies profit by 300% and we pay to underwrite their research and development, overhead and expansion costs – then we pay at the gas pumps and we pay again, as diesel trucks fill up to transport goods then pass that cost along to us, too

Texas A&M University Centers and Institutes

The Texas A&M University Centers and Institutes listed below are not located within the Research Park, and this is not an all-inclusive list of all A&M Centers and Institutes.

[from - ]

http://researchpark.tamu.edu/centers

***

***
Department of the Interior – Federal Government -

http://www.doi.gov/

Department of Energy – Federal Government -

http://www.energy.gov/

***

Departments of Natural Resources – State Governments -

http://www.google.com/search?ie=UTF-8&oe=UTF-8&sourceid=navclient&gfns=1&q=dept+of+natural+resources

***

Crisman Institute – Petroleum Research (Texas A&M)

http://www.pe.tamu.edu/crisman/index.html

***

My Note-

For those many that do not want to read all those names or do not quite understand who are running those groups we are going to do a quick break down of who’s, what, and the omg that is involved in this one institute.

Petroleum based

Ocean Drilling Program
http://www-odp.tamu.edu/

Global Petroleum Research Institute
http://www.pe.tamu.edu/gpri-new/home/

The Crisman Institute
http://www.pe.tamu.edu/crisman/index.html

Rail Research Center and AAR Affiliated Laboratory
http://tti.tamu.edu/inside/centers/rail/

Texas Transportation Institute
http://tti.tamu.edu/

Electric Power & Power Electronics Institute
http://eppe.tamu.edu/

Center for Dredging Studies
http://edge.tamu.edu/dredging/

Offshore Technology Research Center
http://otrc.tamu.edu/

Polymer Technology Center
http://ptc.tamu.edu/

Center for Infrastructure Engineering
http://tees.tamu.edu/portal/page?_pageid=37,3197&_dad=portal&_schema=PORTAL

Public Policy Research Institute (PPRI)
http://ppriweb.tamu.edu/

Geochemical and Environmental Research Group
http://www.gerg.tamu.edu/

***

Medical Based

Center for Advanced Biomolecular Research
http://cabr.tamu.edu/

Center for Chemical Characterization and Analysis
http://www.chem.tamu.edu/CCCA/

Center for Environmental and Rural Health
http://cerh.tamu.edu/

Center for Executive Development
http://maysbschool.tamu.edu/ced/

Center for Extracellular Matrix Biology
http://www.labs.ibt.tamhsc.edu/hook/

Center for Health System and Design
http://archone.tamu.edu/chsd/

Institute for Nutrition and Food Science
http://nfs.tamu.edu/

The Sydney and J.L. Huffines Institute for Sports Medicine & Human Performance
http://huffines.tamu.edu/

Cardiovascular Research Institute
http://cvri.tamu.edu/

**

Now all these are a part of one university, however each of these programs receive government funding. They are using both federal and state funding as well as receiving profits from the research they present to their respective industries. These programs or institutions are called Quasi-funded Institutions/programs, in the fact that they have multiple streams of income coming in every year from federal, state and private sources. Millions of dollars, not just from the Federal government but the state government as well.

This is just ONE of many places that get Government funding for research and development for their businesses, products, services, and ideas that underwrite three major interests in the U.S. Those three profit-makers or big business interests are Medical / Pharmaceutical, Petroleum / Petrochemical and Food / Agricultural based corporate entities.

These are three big industries that gain millions upon millions of taxpayers’ money each year to fund their research and development costs, overhead and operations expansion costs despite making over 300% profit. To fund these corporate interests, our government steals from the much needed programs such as the welfare and foodstamps programs, Medicare and Medcaid, SSI/SSDI, the SBA and from a variety of other community programs, including every dollar meant for alternative energy and alternative fuels research and development opportunities.

- Ms. K and cricketdiane, (it was a team effort, and there’s more . . . )

*It is no wonder that we don’t have alternative forms of energy or fuels and most of our social safety nets, workforce development programs, etc. are underfunded or commonly cut to the bone. All those tax dollars have to help the poor over-burdened petroleum industry pay for its research and development, as well as covering all its other costs of doing business.

***

[From the Department of Energy - describes through 1975 only - why?]

Origins of the U.S. Government’s
First Petroleum Research Laboratory

By 1916 the Bureau of Mines, which had been established six years earlier in the U.S. Department of the Interior, recognized the transforming role that petroleum was playing in American society. Across the country, the Bureau had begun establishing experiment stations, each specializing in a different extraction industry – coal, metals, clay, and other minerals – and each located close to the major centers of each resource. Now, the Bureau announced its intent to establish a petroleum experiment station somewhere in the United States.

MORE INFO For a more complete history, go to the: Bartlesville Energy Research Center, Birthplace of Petroleum Technology

Choosing a suitable location, however, was not easy. John D. Rockefeller’s mega-monopoly, the Standard Oil Trust, broken up five years earlier in a landmark Supreme Court decision, had based its operations on Pennsylvania and Ohio oil. Refineries had been built in New Jersey and New York. But the nation’s surging demand for gasoline had led petroleum companies to widen their search for new oil resources. New discoveries in Oklahoma and Texas had begun to shift the U.S. oil industry westward.

Local oil men in Bartlesville, Oklahoma, were determined to convince the Bureau that their community was the logical choice as the center of the domestic oil universe. Already fiercely independent, the executives believed the new station would provide an endorsement of their intensively competitive brand of business, in stark contrast to the monopolistic era of Standard Oil.

Through the Chamber of Commerce, the oil men pledged $50,000 to assist the government in construction. One of the town fathers, George Keeler, promised to donate a plot of land for the station. The next year, 1917, oil discoveries in the Osage Indian Nation directly to the west of Bartlesville catapulted Oklahoma to the forefront of the burgeoning mid-continent oil industry. The Bureau of Mines accepted the city’s offer and made Bartlesville the site of the nation’s first petroleum experiment station.

In 1918, the Bartlesville Experiment Station was created. Headed by J.O. Lewis, appointed as the station’s first Superintendent, headed a staff of six. The station’s initial operations paralleled an upswing in oil research throughout the industry. A handful of engineering graduates from Stanford University began to concentrate on methods to improve drilling equipment; the University of Pennsylvania began a program in petroleum chemistry.

As the 1920s unfolded, oil exploration moved further westward. Wyoming soon became another industry hotspot, and in 1922, the Bureau of Mines established another petroleum field station at Laramie, Wyoming. For the next 60 years, the sister stations at Bartlesville and Laramie would collaborate on petroleum research problems, often exchanging personnel (in fact, the longest serving director of the Bartlesville center, John S. Ball — who served from 1963 to 1978 — had been a former employee of the Laramie center).

The 1930s created new issues about the role of Federal petroleum research. Huge discoveries of crude oil in Texas, plus reduced demand brought about by the Great Depression, created an oil glut and drove prices to as low as 10 cents per barrel. Federal oil research budgets were cut (in 1931, the federal budget for the Bartlesville station was reduced from $101,000 to $94,000 while the state appropriation was cut from $62,500 to $57,500).

To many, the oil glut had rendered research into improving recovery meaningless. But it also increased industry’s interest in new technologies for detecting rates of production and the overall size of underground reserves. With oil prices plummeting and all but the largest producers facing an economic crisis, many producers had petitioned the courts for legal means to set production limits as a way of creating a floor price for crude oil. But the courts refused, citing production limits as illegal restraints of trade. Many in the oil industry hoped that better information on the size of underground reservoirs and the rates at which they were declining would give them a better case to argue that production limits were in the best interest of national resource conservation.

Petroleum research survived during the 1930s primarily by concentrating on studies of reservoir pressures, the behavior of fluids under different conditions in a reservoir, measurements of oil saturations in reservoir sands, and several other areas which could help resolve the problems of overproduction.

With the United States on the brink of war, the availability of petroleum again became a major concern. Speaking to the annual API meeting in San Francisco on November 5, 1941, Interior Secretary Harold Ickes said:
“Do not forget that petroleum is an exhaustible and irreplaceable natural resource. Not only does our commerce and our industry and our husbandry and our pleasure depend upon it, this war demonstrates that the possession of an abundance of petroleum and its products is a matter of life and death to a nation. And our own nation would be negligent of its duty, recreant to its trust, if it permitted any industry to waste such a valuable natural resource.”

To a nation now seeking to boost its domestic oil supplies, the research sustained at the Bureau of Mines experimental stations at Bartlesville and Laramie throughout the “oil glut” of the 1930s now proved its worth. Studies of oil field waterflooding would allow some fields to maintain or increase production. Research into drilling muds which would lubricate and protect drill bits would save much steel for the war effort. Studies of fire hazards, evaporation losses, and the corrosive effects of water would improve petroleum transportation and storage.

War time would add two new efforts to the Federal petroleum research, primarily at the Bartlesville station – the study of high octane aviation gasoline and a means for converting hydrocarbons into synthetic rubber. In 1942, the Bureau established a thermodynamics research section at Bartlesville to develop basic data on converting butane and butene gases to butadiene, the basic component of general purpose synthetic rubber. Although by war’s end this thermodynamics group had barely gotten underway, it symbolized a new direction for the station in the post-war era.

By the mid-1950s, the Bartlesville thermodynamics laboratory had become a major center for the generation of basic data on hydrocarbons and sulfur and nitrogen compounds, and was known throughout the world. Coupled with the chemistry and refining work related to the aviation fuel program, this petroleum thermodynamics activity helped to move Bartlesville in the direction of a research center rather than an experiment station.

The postwar oil industry in America faced a new set of challenges. The war had caused a major upsurge in petroleum demand, and the nation’s new found prosperity continued to increase oil consumption. In 1947-48, for the first time, the nation imported more petroleum than it exported. At the same time, production from the once-prolific fields of Oklahoma and Kansas was peaking and beginning to decline. Producers and state commissions in these states began to look for ways to halt the declining production. Interest developed in “secondary recovery” – ways to sustain production as the effectiveness of primary recovery means, i.e., field pressures or artificial lifts, began to decline.

For more than a decade after the war, the Bureau of Mines at Bartlesville hosted “waterflood tours” to give small independent producers, and some specialists from larger companies, a first-hand look at a promising new approach for keeping oil fields in production. As many as 125 cars, carrying 400 to 500 participants and escorted by the Oklahoma Highway Patrol, would visit several waterflood projects – a traveling technology transfer convention.

At Bartlesville, research into secondary recovery in the 1950s included: locating abandoned wells through use of metal detectors, study of water-conditioning plants, analyses of the effects of dissolved gases on corrosion of metal, studies of rates and pressures of water injection, core and water analysis, and uses of radioactive isotopes as tracers in secondary recovery projects.

Users of tracers to study the flow characteristics and patterns of crude oil and brines through reservoir rock extended in the 1960s under joint funding from the Bureau and the Atomic Energy Commission. By the mid-1960s, the use of radioactive tracers in petroleum secondary recovery operations had become generally routine and much of Bartlesville’s pioneering work was widely accepted.

For much of the Government’s mainline petroleum research, however, the 1960s proved to be a struggle. The Nation’s major oil companies had seen the benefits of research into new oil production and refining technologies, and most had established major research capabilities. In Bartlesville, for example, work at the federal center was largely overshadowed by research at the much larger Phillips Research Center, run by the Bartlesville-based Phillips Petroleum Company.

The 1970s were to dramatically reshape America’s views about energy. But even before the 1973-74 Arab oil embargo shocked the American economy, oil and energy were rapidly on their way to becoming, as Daniel Yergin put it in The Prize, “the hottest cauldron in national politics.” In 1971, in line with the Nixon Administration’s growing emphasis on national energy issues, the Bureau of Mines changed the designation of the Bartlesville and Laramie centers again – this time renaming them from “petroleum” to “energy” research centers. Yet, the Bartlesville center largely remained focused on petroleum matters, and in fact, the name change caused considerable internal uncertainty as to how diversified the center’s research portfolio should become.

The Federal Government, however, was changing its posture on research with the private sector. Rather than the primary activity being experiments at federal laboratories, the bulk of the funding was to “pass through” the sites to industry partners working in the Nation’s oil fields. In 1974, the Bartlesville center opened major contracts in chemical flooding of oil fields already exhausted by waterflood techniques. From 1974 to 1982, more than $96 million in government funding for advanced oil recovery projects was more than matched by private sector outlays of $130 million. In addition, new projects studying aspects of chemical and thermal enhanced oil recovery were added, sending federal funds to a wide range of universities and private companies across the Nation.

In 1975, when the Energy Research and Development Administration began operations, both the Bartlesville and Laramie Energy Research Centers were transferred from the Bureau of Mines into the new agency.

http://fossil.energy.gov/aboutus/history/bartlesville_history.html

***

Fossil Energy Project Data
International Activities
R&D Commercial Successes
Fossil Energy Video Gallery
Fossil Energy Site Map

***

OFFICE OF FOSSIL ENERGY Ensuring that we can continue to rely on clean, affordable energy from our traditional fuel resources is the primary mission of DOE’s Office of Fossil Energy. Fossil fuels supply 85% of the nation’s energy, and we are working on such priority projects as pollution-free coal plants, more productive oil and gas fields, and the continuing readiness of federal emergency oil stockpiles. Read more about: Fossil Energy Organization Business & Funding Opportunities Fossil Energy Employment Opportunities Upcoming Fossil Energy Events Topics/Opportunities for Students & Teachers

AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 Learn how the Office of Fossil Energy is helping to implement the Act. More >

****

Texas A&M University Centers and Institutes

The Texas A&M University Centers and Institutes listed below are not located within the Research Park, and this is not an all-inclusive list of all A&M Centers and Institutes. The following links have been placed on this site as a courtesy, and for reference purposes only. Please contact the Office of the Executive Vice President and Provost for a complete list of Centers and Institutes.

Centers

Center for Academic Enhancement
http://www.tamu.edu/cae/

Center for Advanced Biomolecular Research
http://cabr.tamu.edu/

Center for Advancement of Literacy & Learning
http://www-tcall.tamu.edu/

Center for Agricultural Air Quality Engineering and Science
http://caaqes.tamu.edu/

Center for Agricultural and Food Policy (AFPC)
http://www.afpc.tamu.edu/

Center for Approximation Theory
http://www.math.tamu.edu/research/groups/CAT/

Center for Chemical Characterization and Analysis
http://www.chem.tamu.edu/CCCA/

Center for Community Support
http://ccs.tamu.edu/

Center for Consumer and Food Marketing Issues
http://ifse.tamu.edu/centers/ccfmi.html

Center for Distance Learning Research
http://www.cdlr.tamu.edu/

Center for Dredging Studies
http://edge.tamu.edu/dredging/

Center for Electrochemical Systems and Hydrogen Research
http://engineer.tamu.edu/tees/ceshr/

Center for Electronic Materials, Devices and Systems

http://www.ece.tamu.edu/programs/cemdas/

Center for Environmental and Rural Health

http://cerh.tamu.edu/

Center for Executive Development

http://maysbschool.tamu.edu/ced/

Center for Extracellular Matrix Biology

http://www.labs.ibt.tamhsc.edu/hook/

Center for Food Safety

http://ifse.tamu.edu/centers/cfs.html

Center for Grazinglands and Ranch Management

http://cnrit.tamu.edu/cgrm/

Center for Hazard Reduction and Recovery

http://archone.tamu.edu/hrrc/

Center for Health System and Design

http://archone.tamu.edu/chsd/

Center for Housing and Urban Development

http://chud.tamu.edu/

Center for Human Resource Management

http://business.tamu.edu/chrm/

Center for Infrastructure Engineering

http://tees.tamu.edu/portal/page?_pageid=37,3197&_dad=portal&_schema=PORTAL

Center for Integrated Microchemical Systems

http://www.chem.tamu.edu/cims/

Center for International Business Studies

http://cibs.tamu.edu/

Center for Marine Training and Safety

http://www.teex.com/cmts/

Center for Mathematics and Science Education

http://www.science.tamu.edu/cmse/

Center for Natural Resource Information Technology

http://cnrit.tamu.edu/cnrit/

Center for North American Studies

http://cnas.tamu.edu/

Center for Obesity & Program Evaluation (CORPE)

http://corpe.tamu.edu/Index.cfm

Center for Ports and Waterways

http://tti.tamu.edu/cpw/

Center for Professional Development

http://tti.tamu.edu/cpd/

Center for Retailing Studies

http://www.crstamu.org/

Center for Space Power

http://engineer.tamu.edu/tees/csp/

Center for Teaching Excellence

http://cte.tamu.edu/

Center for Tectonophysics

http://geoweb.tamu.edu/tectono/

Center for the Management of Information Systems

http://cmis.tamu.edu/web/

Center for the Study of Digital Libraries

http://www.csdl.tamu.edu/

Commercial Space Center for Engineering

http://engineer.tamu.edu/tees/csce/

Food Protein Research and Development Center

http://foodprotein.tamu.edu/

Geochemical and Environmental Research Group

http://www.gerg.tamu.edu/

George W. & Cynthia P. Mitchell Institute for Fundamental Physics

http://mitchell.physics.tamu.edu/

Information Technology in Science Center for Teaching and Learning

http://its.tamu.edu/

Irrigation Technology Center

http://itc.tamu.edu/

Mary Kay O’Connor Process Safety Center

http://process-safety.tamu.edu/

Melbern G. Glasscock Center for Humanities Research

http://www.tamu.edu/chr/

Microscopy and Imaging Center

http://www.tamu.edu/mic/

Mid-Continent Technology Transfer Center

http://www.mcttc.com/

Nuclear Science Center

http://nsc.tamu.edu/

Offshore Technology Research Center

http://otrc.tamu.edu/

Polymer Technology Center

http://ptc.tamu.edu/

Private Enterprise Research Center

http://www.tamu.edu/perc/

Rail Research Center and AAR Affiliated Laboratory

http://tti.tamu.edu/inside/centers/rail/

South Central Superpave Center

http://tti.tamu.edu/inside/centers/scsc/

Southwest Region University Transportation Center

http://swutc.tamu.edu/

Stevenson Companion Animal Life Care Center

http://www.cvm.tamu.edu/petcare/center.htm

Texas Agribusiness Market Research Center

http://agrinet.tamu.edu/tamrc/

Texas Center for Applied Technology

http://tcat.tamu.edu/index.html

Texas Manufacturing Assistance Center

http://www.tmac.org/

Texas Real Estate Center

http://recenter.tamu.edu/

The CRS Center

http://archone.tamu.edu/crs/

The Principal’s Center

http://www.coe.tamu.edu/~princtr/

The Thomas A. Read Center for Distribution Research & Education

http://readcenter.tamu.edu/

TransLink Research Center

http://translink.tamu.edu/

Vegetable and Fruit Improvement Center

http://vic.tamu.edu/

Institutes

Academy for Advanced Telecommunications and Learning Technologies
http://academy.tamu.edu/

Aerospace Vehicle Systems Insititute

http://avsi-tees.tamu.edu/

Cardiovascular Research Institute

http://cvri.tamu.edu/

Cooperative Institute for Applied Meteorological Studies

http://www.met.tamu.edu/ciams/

Cyclotron Institute
http://cyclotron.tamu.edu/

Electric Power & Power Electronics Institute
http://eppe.tamu.edu/

English Language Institute
http://www.tamu.edu/eli

Global Petroleum Research Institute
http://www.pe.tamu.edu/gpri-new/home/

Institute of Food Science & Engineering
http://nfs.tamu.edu/

Institute for Applied Creativity
http://creativity.tamu.edu/

Institute for Countermeasures Against Agricultural Bioterrorism
http://icab.tamu.edu/

Institute for Manufacturing Systems
http://ie.tamu.edu/People/faculty/Klutke/IMS/default.html

Institute for Nautical Archaeology (INA)
http://ina.tamu.edu/

Institute for Nutrition and Food Science
http://nfs.tamu.edu/

Institute for Pacific Asia
http://international.tamu.edu/ipa/

Institute for Plant Genomics and Biotechnology
http://ipgb.tamu.edu/

Institute for Renewable Natural Resources
http://irnr.tamu.edu/

Institute for Science, Technology and Public Policy
http://bush.tamu.edu/Research/ISTPP/

Institute for Scientific Computation
http://www.isc.tamu.edu/

Institute for Telecommunications & Information Technologies
http://it2.tamu.edu/

Institute of Biosciences and Technology (IBT)
http://www.ibt.tamhsc.edu/

Institute of Developmental & Molecular Biology
http://www.idmb.tamu.edu/

L.T. Jordan Institute for International Awareness
http://ltjordan.tamu.edu/

Michael E. DeBakey Institute
http://debakeyinstitute.tamu.edu/

Ocean Drilling Program
http://www-odp.tamu.edu/

Public Policy Research Institute (PPRI)
http://ppriweb.tamu.edu/

Race & Ethnic Studies Insitute
http://resi.tamu.edu/

Sea Grant Program
http://texas-sea-grant.tamu.edu/

Texas Institute for the Advancement of Chemical Technology
http://cheweb.tamu.edu/tiact/

Texas Institute of Oceanography
http://www-ocean.tamu.edu/Quarterdeck/QD2.2/TIO/tio.html

Texas Occupational Health & Safety Institute
http://engineering.tamu.edu/safety/tohsi/tohsi.html

Texas Transportation Institute
http://tti.tamu.edu/

Texas Water Resources Institute
http://twri.tamu.edu/

The Crisman Institute
http://www.pe.tamu.edu/crisman/index.html

The MSC L.T. Jordan Institute of International Awareness
http://ltjordan.tamu.edu/

The Sydney and J.L. Huffines Institute for Sports Medicine & Human Performance
http://huffines.tamu.edu/

V.G. Young Institute for County Government
by johnh — last modified 2008-03-17 08:43
http://vgyoung.tamu.edu/

[from - ]

http://researchpark.tamu.edu/centers

***

My Note -

This is one university among hundreds and in every state. So, if the state of California is broke – how much you wanna bet they are still feeding money to the oil industry and their petroleum research grants / drilling research and other incentive programs like tax breaks and business grants?

I could understand it during the time just after the turn of the twentieth century – 1917 or even during the 1930′s, although that is an incredible amount of money the government gave to it at the time considering it was already a profit-making privately held set of companies harvesting petroleum reserves.

Also – in the news this week – Exxon claiming to be moving into algae based biofuels research. According to the show on the Science Channel and other articles, that research is already done and been done over the last five years. So, are they buying into it to slow it down since it is the most viable competitor to their gasoline / diesel / petroleum businesses?

[ Excerpt from article on CNN Money - ]

In the past, Exxon has been skeptical about green energy such as wind, biofuels and solar power and has supported research that questioned the scientific basis of man-made climate change.

The company also fended off proposals that it invest in renewable fuels at an investors’ meeting in May.

Shares of Exxon rose 25 cents, or less than one percent, to $65.95 in afternoon trading on the New York Stock Exchange.
First Published: July 14, 2009: 3:17 PM ET

http://money.cnn.com/2009/07/14/news/companies/exxon_algae.reut/index.htm?iref=werecommend

Exxon to develop biofuel from algae

LONDON/HOUSTON (Reuters) — Exxon Mobil Corp will invest $600 million over the next five to six years on trying to developing biofuel from algae, even though the oil major has said renewables will be only a small part of global energy supply.

Exxon (XOM, Fortune 500), placing its largest financial bet on renewable fuels, is forming a research and development alliance with Synthetic Genomics Inc, a privately held company that focuses on gene-based research, the company said Tuesday.

The project, which would cost billions to fully develop, is in its initial stages, so commercially viable biofuel made from algae would be many years away, Exxon told reporters on a conference call.

[etc.]

***

Aquatic Energy to Open Demo-Scale Algae Biofuel Facility in Louisiana

by Matthew McDermott, New York, NY on 04.24.09

Science & Technology (alternative energy)

// Buzz up!

Algae paste, photo: Biofuels Digest

Lake Charles, Louisiana-based Aquatic Energy has announced that it is ready to move beyond its initial pilot-scale algae biofuel facility, and will be expanding to an 30-acre demonstration project using the company’s open pond system, which is achieving yields on 2500 gallons per acre without an external CO2 source:

Biofuels Digest reports that 70% of the CO2 required is coming the atmosphere, with 30% coming from natural gas burned in the drying stage of production.

The expansion is expected to produce about 1.5 tons per day of algae biomass, which is targeted at the animal feed market.

Provided the required $32 million in funds can be raised, the next step past this demonstration expansion would be a full scale commercial project. This would occupy some 617 acres, and produce 1.5 million gallons per year of fuel, and 24,500 tons of algae meal.

via: Biofuels Digest

This article originally ran with different statistics regarding Aquatic Energy’s expansion plans and expected yields, which upon clarification from Aquatic Energy have been revised.

Algae Biofuel
Algae, Jatropha Tapped to Power Continental Airlines’ First Biofuel Test Flight
New Algae Biofuel from Sapphire Energy “Chemically Identical to Gasoline
A Behind the Scenes Look at MITs Algae Photobioreactor (Video)

http://www.treehugger.com/files/2009/04/aquatic-energy-to-open-demo-algae-biofuel-facility-louisiana.php

***

About this Entry

Valcent on Discovery’s Science Channel called “Brinks” was posted on December 8th, 2008 at 7.12pm and is filed under Newsletter.

Valcent on Discovery’s Science Channel called “Brinks”

by Caroline Keddy

This past Friday evening, we were pleased to be included in a new series called “Brink”.

“Brink,” is a series from Discovery Communications’ Science Channel. The show is about cutting-edge breakthroughs in inventions, technology, research and discoveries from the scientific world. It was designed as to be the source of interactive science information on television and on the web for the next generation.

We watched our video piece and really enjoyed watching the host, an Australian called Josh Zepps. I think he did a great job of presenting impact and relevance of science in our lives today. Valcent’s advances in algae biofuel and vertical farming were well presented. (pssst… I have not tried the algae brownies yet. I will be sure to let you know what they really taste like!) . To learn more about Josh Zepps visit his site: http://www.imdb.com/name/nm2339309/

If you missed the series you can catch a repeat on Dec 6^th@ 1:00 am, Dec 7th @5:00 and Dec 8th @5:00 pm. If you could not get the channel, please visit our media page and watch our segment titled “Algae is an Energy Solution”.

Cheers,

Caroline Keddy

growing algae vertically at Valcent

[from -]

http://blog.valcent.net/?p=198

About this Entry

Valcent on Discovery’s Science Channel called “Brinks” was posted on December 8th, 2008 at 7.12pm and is filed under Newsletter. This entry has one comment. You can follow any responses through the RSS 2.0 Feed.

New Entries

• Vertical Farming Helps to ease a £200,000 per year Food Bill
• The Need for Less Water Intensive Agriculture Practices
• Skyscraper Farms and Other Architecture of the Future
• California Kicks Corn-based Ethanol to the Curb !
• Valcent’s Verticrop Installation To Be First Of Its Kind In Europe
• CRFA & RFA Highlight Biofuels Consensus
• Could Biodiesel Power Future Rockets?
• Can algae save the world – again?
• Biomass Alternative Energy Options
• ALGAE VS. BACTERIA

Categories

• alternative energy
• alternative food & energy sources
• Biodiesel
• CO2
• Newsletter
• Pollution
• Urban agriculture
• Vertical Farming
• vertical growing

<!–

Monthly Archives

• July 2009
• June 2009
• April 2009
• February 2009
• January 2009
• December 2008

–>

Sign Up For A Weekly Newsletter

//

Syndication (RSS)

• RSS 2.0 Entries
• RSS 2.0 Comments

Tags

Add new tag Algae algae for biofuel alternative energy alternative food & energy sources alternative fuel biodeisel Biodiesel Biofuel biomass carbon footprint Carbon Offsets Climate Change climate policy Disclaimer eat local food electricity emission energy food independence food safety food security food source Green Green IT Local Food local g local growing Newsletter Pollution renewables sustainable food sustainable food alternatives transport Urban agriculture urban argiculture urban farming Valcent vertical crops Vertical Farming vertical growing vertical grown foods verticrop vertigro Welcome

Valcent on Discovery’s Science Channel called “Brinks”

by Caroline Keddy

This past Friday evening, we were pleased to be included in a new series called “Brink”.

“Brink,” is a series from Discovery Communications’ Science Channel. The show is about cutting-edge breakthroughs in inventions, technology, research and discoveries from the scientific world. It was designed as to be the source of interactive science information on television and on the web for the next generation.

We watched our video piece and really enjoyed watching the host, an Australian called Josh Zepps. I think he did a great job of presenting impact and relevance of science in our lives today. Valcent’s advances in algae biofuel and vertical farming were well presented. (pssst… I have not tried the algae brownies yet. I will be sure to let you know what they really taste like!) . To learn more about Josh Zepps visit his site: http://www.imdb.com/name/nm2339309/

If you missed the series you can catch a repeat on Dec 6^th@ 1:00 am, Dec 7th @5:00 and Dec 8th @5:00 pm. If you could not get the channel, please visit our media page and watch our segment titled “Algae is an Energy Solution”.

Cheers,

Caroline Keddy

growing algae vertically at Valcent

http://www.cnn.com/2009/US/07/15/us.exchange.students/index.html

SCRANTON, Pennsylvania (CNN) — They came from around the world hoping to spend a high school year immersed in the culture and joys of America.

Exchange student Carlos Villareal of Colombia says he was underfed and kept in “an unsafe environment.”

Instead, five young foreign exchange students found themselves caught in a nightmare of neglect, malnourishment and abandonment by those supposed to protect them.

[...]

What happened in Scranton, according to Lackawanna County, Pennsylvania, District Attorney Andrew Jarbola, is a crime. He has convened a grand jury to look into the families where some of the 12 students who came to Scranton were placed, as well as the company who placed them there and its officials.

“Well, in my opinion they were treated kind of crudely,” Jarbola said. “Not provided the proper food, hygiene and things of that nature. And the areas they were placed? I know one of the students was placed in a home with a convicted felon — convicted of drug trafficking or drug offenses — and that is very disturbing to me.”

[...]

***

my note-

The story goes on to state that the State Department in charge of the foreign exchange  program  did nothing or very little. The most they did was ask the group responsible for the foul placing of the children  to investigate complaints  and report back to them.  They ignored complaints from watchdog groups, parents and the children because of their hands-off policy that is currently in effect.

Something in this story talks about the care and treatment of children just not the ones that pay to come over here to experince the U.S but the children that are here waiting for ‘good homes’.  Sounds like an ad for ASPCA, need good homes for children. It seems to me that the adults responsible for the placment of these children forgien or not tend to get rich by half-ass doing their jobs, and cutting corners to save a few more pennies.

Then the state agencies that are responsible for insuring the safety of all these children turn a deaf ear and a blind eye  to these complaints no matter the valiadity in them. Then, they turn around and tell the  people responsible for the actions to investigate themselves and see if there is a problem.  Almost 70 percent of abuse whether its lack of food, physical, rape, dangerous situatious, lack of basic needs goes unreportedd by many because of the very real belief that nothing will change and no one will listen.

Why is that children, even from other countries, have the same belief  as many of the foster children and abused children of america. Why is it that the people, agencies, groups, state departments are doing nothing while getting rich off of tax payer’s money.

Seems to me and a few others that the government, agencies licensed by the government or government affiliates have a zero accountability in protecting the people outside their immediate interests, mainly themselves.  When did it becomes ok for places to police themselves , ignore or do little when presented with very real problems and complaints and continue to make money, use tax-payers money with no real substantial consequences to those in charge of not only investigations but policies that allowed such horrid, greedy, un-American things to continue to go on.  How many children have to die before things are changed? How many companies will continue to run the American dream into the ground while getting fat off of our hard work and dreams? How many officials lobbing in ‘our best interest’ continue to play while destroying people in the process with poor greedy choices will it take before things are stopped and changed?

Ms.K

Bullet Proof Fashion Clothing – and other Specialized Fashions for UV protection, safety from pickpockets while traveling and coats to carry stuff – Amazing – Specialized Clothing for Real World Lifestyles

Bullet Proof Fashion Clothing – and other Specialized Fashions for UV protection, safety from pickpockets while traveling and coats to carry stuff -

Embedded video from &amp;amp;amp;amp;lt;a href=”http://www.cnn.com/video” mce_href=”http://www.cnn.com/video”&amp;amp;amp;amp;gt;CNN Video&amp;amp;amp;amp;lt;/a&amp;amp;amp;amp;gt;

http://edition.cnn.com/video/#/video/international/2009/03/13/biz.trav.caballero.range.cnn

The Armani of Bullet-proof 3:11
We take a look at a range of high-security fashion by the “Armani of Bullet-proof Apparel,” Colombian designer Miguel Caballero.
• Business Traveller
Source: CNN
Added On March 13, 2009

***

Cobber^®

<!–Cobber^® Neck Wrap–>Neck Wrap Made in Australia, this innovative cooling system will help keep your body temperature in check in hot climates.

Made with non-toxic crystals, you soak your Cobber^® in cold water for about 30 minutes. The crystals expand to a gel and will stay that way for three days. Once back to its original form, soak it again. Place it around your neck, the Cobber^® will cool the carotid arteries in the neck, keeping you cool and comfortable.

The fabric is a poly/cotton blend. Available in multiple patterns, suitable for men and women.

<!––>

http://www.tilley.com/detail.asp?gender=&extractBy=featured&catId=4&productNo=TA35

***

http://www.sunprecautions.com/shop_all.asp?CAT=sh&SUBCAT=0s

Solumbra – UV Protection Clothing

“You already know that our Solumbra hats, shirts, pants and accessories are designed and made from scratch as an effective medical solution for all day sun protection. You’ve come to rely on our Solumbra fabrics providing greater than 30 SPF and blocking more than 97% of both UVA and UVB rays. And you take comfort in the fact that our Solumbra products are engineered to be a safe and effective sun protection solution so doctors can recommend them to even their most sun sensitive patients.”

http://www.sunprecautions.com/about_us.asp?pg=5

Our most active styles are designed with mesh-ventilated panels—strategically located on the front, back, under the arms, and even sides—to promote airflow, wick away moisture and keep out unwanted UV rays.

[ . . . ] – the above link shows how the clothing works -

Other shirts may leave you sunburned.
A typical summer shirt, by comparison, only provides an SPF of 5 to 9, far below the minimum SPF of 15 recommended by dermatologists. Not to mention it’s usually short sleeved and has little or no collar, leaving your arms and neck dangerously exposed.

[etc.]

must also pass a rigorous 27-point quality assurance check and a 15-point quality control check.

https://www.sunprecautions.com/account.asp?pg=catreq

Request a free catalog – (at link above)

(one of their UV protection unisex shirts – )

Ultra Athlete^® Shirt
Style #1530W09
Item Price: $94.95

***

http://www.tilley.com/catalog.asp

Free Tilley Endurables Travel Wear Catalog – they have hidden pockets, etc.

(for men and women, but the men’s clothing have more secure and secret travel pockets for credit cards than the women’s wear, whatever reasons.)

<!––>

Different Drummer Legends Men’s Field Commander Zip-Off Pants

From the rugged trails of the Rockies to the plains of the Serengeti, these lightweight convertible pants/shorts help keep you comfortable. They withstand abuse and abrasion wherever your travels take you. Engineered with 8 pockets including security pockets and a hidden secret pocket. Elastic side waistband for comfort.

Features:

Pants become shorts for varied climates and activities Shorts inseam 7″ 2 front slant pockets Zippered security pocket on right hip Velcro®-sealed expansion pockets Features Secret and Stop-Loss pockets The Classic Fit, usually seated at the waist, with straighter seats and thighs All pants are unhemmed – 37″ long Fabric certified “EXCELLENT” UV protection – UPF 50+, the maximum rating given

Fabric Story:

Made from 100% wind resistant nylon and treated for water and stain repellency, Different Drummer Legends jackets, pants, vests, shorts and skirt are Guaranteed For Life not to wear out. The lifetime guarantee against wearing out means rubbing a hole through an item of clothing, through abrasion. Different Drummer Legends will virtually never wear out, and if they do we’ll replace them free. Can you rip on a nail or such? You may, but they are very strong. And if you do, we’ll patch them as economically for you as possible. This fabric has been tested and certified as providing ultraviolet protection. For more information on sun protection and the fabric testing please see: A Fashionable Defense- Sun Protection from Head to Toe.

http://www.tilley.com/detail.asp?gender=m&extractBy=CategoryId&id=7&productNo=MA31

***
Tilley Tips to protect against pickpockets

Above all else: carry your valuables in your Tilley secret pocket.

1. Pickpockets come in all guises and disguises; many are very well dressed and groomed.

2. Trust your instincts. Pickpockets usually survey their targets. If someone is following you, move to a more secure location.

3. Be aware of loud arguments, bumps and other incidents. Pickpockets usually work in teams and will often create a commotion to distract the victim so a partner can pick a pocket or two.

4. Pickpockets frequent bus and train stations, airports, hotel lobbies, outdoor festivals, subways and other crowded places. If you see a sign, ‘Beware of Pickpockets’, don’t reveal your wallet’s location by touching it.

5. Wear clothing with pockets that offer peace of mind… ones that are closed with ‘noisy’ Velcro or zippers, or best of all are completely hidden. Tilley offers secure, secret and stop-loss pockets on most garments, including our relaxed beach pants/shirts, and dressier clothing.

6. Be unassuming in your choice of clothing, luggage and camera case. Leave the expensive jewelry and watch at home.

7. Swarmed by a group of children? Run and shout!

8. Carry hotel key and car keys separately from your bag or purse.

9. Travel as lightly as possible. Being overburdened with luggage makes you more of a target.

10. Walk with a purpose. Never look vulnerable or lost.

11. Photocopy your passport, credit cards and driver’s license. Leave one copy with a friend; carry another in your secret pocket.

12. During your trip, do not give out information about your destinations, valuables or itinerary to people who do not need it – desk clerks, doormen or taxi drivers.

13. Do not carry all your cash, traveller’s cheques and credit cards in one pocket. Carry only enough money for the day’s adventures, divided up in secure pockets.

14. Avoid putting your wallet or passport in a back pocket.

15. Do not leave purses, handbags or backpacks unattended.

16. For a small fee, many airports will shrink-wrap your luggage or bag in plastic. This helps prevent tampering and theft at the airport or even in taxis, and saves wear and tear on your luggage.

17. If victimized, report the incident to the appropriate officials. In the case of a stolen passport or visa, contact your embassy.

http://www.tilley.com/stories/pickpockets.asp

from – Tilley Endurables Website – very nifty helpful information

***

www.scottevest.com - with 28 pockets, travel clothing that works

Quantum Jacket

Also available as a System with the Fleece 5.0 – Order together and save $50 over buying individually!

This may be our very best jacket ever! Everyone knows that layering is key to staying warm, and that is why we developed the SeV Quantum Jacket. It handles double duty, both as a water resistant, breathable, wind-stopping winter shell and as the most convenient way to access all your gadgets on a brisk day. 28 purposeful pockets and compartments keep your essentials with you, while our wire management system lets you listen to your iPod® without getting tangled. Read More…

http://www.scottevest.com/v3_store/Quantum_Jacket.shtml

www.scottevest.com/

Request a SCOTTEVEST/SeV® Catalog.

Please enter your information below to receive our print catalog. Note we do not share, sell, or lease any personal information.
Sorry, we do not mail catalogs overseas.
Call Toll Free 1-866-909-8378

Request Catalog

View the Interactive Catalog

***

MIT_flex_cam_SEM_sm.jpg
This cross section shows two rings of light-sensitive semiconductor material in the fiber. The eight thicker parts are electrodes to carry signals.
(Credit: Massachusetts Institute of Technology)

July 7, 2009 12:51 PM PDT
MIT develops camera-like fabric
by Stephen Shankland

And you thought it was a problem when folks went into the locker room toting cell phones with cameras.

Researchers at the Massachusetts Institute of Technology have developed a fabric made of a mesh of light-sensitive fibers that collectively act like a rudimentary camera. The fibers, which each can detect two frequencies of light, produced signals that when amplified and processed by a computer reproduced an image of a smiley face near the mesh.

This is the first time that anybody has demonstrated that a single plane of fibers, or ‘fabric,’ can collect images just like a camera but without a lens,  said Yoel Fink, an associate professor of materials science, who along with colleagues described the approach in a the journal Nano Letters.

MIT suggested that the technology, if developed further, could give a soldier a uniform that would help him see threats in all directions. Optical fiber webs, by distributing the chore across a large area, would be less susceptible to damage in one area.

The technology uses fibers less than a millimeter in diameter, stretched into thin form from a thicker cylinder. Within the fibers are two cylindrical shells of semiconductor material, each connected to the outside world with four built-in metal electrodes.
Stephen Shankland writes about a wide range of technology and products, but has a particular focus on browsers and digital photography. He joined CNET News in 1998 and since then also has covered Google, Yahoo, servers, supercomputing, Linux and open-source software, and science. E-mail Stephen, or follow him on Twitter at http://www.twitter.com/stshank.

http://news.cnet.com/8301-13580_3-10281376-39.html?tag=rtcol;pop

***

My Note –

There’s more, but I’ll have to put it later . . . very nifty stuff. These are some of my favorite ones, but there are also Outback coats and skiwear that is thin, flexible and warm – other stuff, here and there. I might have to add it tomorrow after I look for the links to them. They are very, very useful.

- cricketdiane, 07-14-09

***

CIA stuff – is it really a civilian agency?

Central Intelligence Agency

The Central Intelligence Agency (CIA) is a civilian intelligence agency of the United States government. It is the successor of the Office of Strategic Services (OSS) formed, during World War II, to coordinate espionage activities between the branches of the US military services. The National Security Act of 1947 established the CIA, affording it “no police or law enforcement functions, either at home or abroad.” One year later his mandate was expanded to include “sabotage, anti-sabotage, demolition and evacuation measures…. Subversion (and) assistance to underground resistance movements, guerrillas and refugee liberation movements, and support of indigenous anti-communist elements in threatened countries of the free world” ^[6]

Today, the CIA’s primary function is collecting, and analyzing information about foreign governments, corporations, and individuals which it uses to advise public policymakers. The agency conducts covert operations, paramilitary actions and exerts foreign political influence through its Special Activities Division. Prior to December 2004, the CIA was literally the central intelligence organization for the US government, charged with coordinating and overseeing not only its own activities, but also the activities of the intelligence community as a whole.

[Etc.]

http://en.wikipedia.org/wiki/Central_Intelligence_Agency

***

My Note -

I found this part interesting because I didn’t know it was a “civilian” agency -

The Central Intelligence Agency (CIA) is a civilian intelligence agency of the United States government.

What does that mean today? Are they a subcontractor of the US government who is not required to abide by the laws the rest of us must obey? Are they actually accountable to anyone? If they are not required to keep closed door acknowledgment of their activities with specific Intelligence Oversight Committees in the Senate and House – then, does it mean they are either running themselves and their activities, or answering only to whatever king’s advisors of the day are in charge within the executive branch or what?

Why is it commonly thought that the CIA has no domestic authority when many of their operations follow leads and information across the domestic landscape in the United States? Does anyone really believe that the only emails, internet searches information, phone taps, cellphone records and physical tracking of people done by the CIA and its authority over other agencies, was done exclusively concerning Al Qaeda or other known terrorist groups? That isn’t even possible without covering just about everybody else in the process.

But to hear it be “news” that the CIA lied and that they excluded mentioning their domestic activities to Congressional committees specific to them, doesn’t seem to be any real surprise making it worthy of the news as if it is somehow “new” information or “outlandish behavior for them.” To read their wall in entryway about the truth will set you free, etc. – seems ironic considering their stock in trade is to pretense, misleading, lying, pretending to be something other than who they are (in the James Bond sense) and generally, spying to get the information they sell to the federal government.

The real news would be to discover that any of them know how to tell the truth, or what that is, or how to not conceal the truth, or to accurately convey the truth to Congress, to the President and to the American people.

That would be news.

- cricketdiane, 07-13-09

***

***