Thursday, July 23, 2009

Taipan Daily: How They Roll in Washington, Part Deux

Taipan Daily - a Service of Taipan Publishing Group
Print Edition Whitelist us About Us Archives Investment Marketplace
Thursday, July 23, 2009
Taipan Daily: How They Roll in Washington, Part Deux
by Adam Lass, Senior Editor, WaveStrength Options Weekly

Like so many other major financial players, Bank of America (BAC:NYSE) has an office in Washington D.C. I don’t mean a branch office, but rather a shop full of sharp guys and gals dedicated to assuaging various regulating agencies and occasionally promoting the bank’s agenda to the White House and on Capitol Hill.

We are told that this was a sleepy little outfit a few years back – mostly just accountants and out-of-favor MBA types sentenced to a relative hinterland. The real action, the place to be for any up-and-comer looking to cut a swath back then, would have been the main headquarters in Charlotte or on Wall Street.

Back then, the Washington office would receive maybe two calls a day from legislators or their staff interested in the fine details of finance.

Revealed: Million-Dollar Secrets of a Currency Master!

Is it really possible for an ordinary investor to become a multimillionaire in the foreign currency (Forex) market? The answer is YES! Ensure your chance to become a "currency millionaire"…

That Was Then…

But that was before the great crash of 2007/2008, wherein our banks discovered that their vaults were full of the same crap they had been peddling to the masses... and the great coup attempt that followed it, wherein a triumvirate of those same Wall Street bankers tried to take over the country.

Now that Washington owns a big chunk of some 600 American banks, the phones at Bank of America’s Washington office – and most every other major finance outfit to boot – are ringing off the hook with calls from pushy little Pooh-Bahs, apparatchiks with axes to grind, and ward heelers looking to score debating points in the next election.

From our friends at Bloomberg, we hear that Sen. Charles Schumer (D-N.Y.) personally called to excoriate Citigroup for withdrawing credit from a New York mall developer. Rep. Elijah Cummings (D-Md.) called to object to American International Group (AIG:NYSE)’s contractually obligatory bonuses.

And then, of course, there are all the peremptory summons Government Motors CEO Fritz Henderson gets these days about unjustly closed dealerships in various home districts.

Don’t like the interest payments on your passbook account? Figure that the 2010 Chevy Farrago ought to have fins and a chrome spotlight on the roof? Need $18 million for a new Facebook page? Just call your man in Washington – he’ll be glad to hook you up.

This is how we roll in America, now that America itself owns and operates a big chunk of industry and finance.

And how is it all working out for us, this grand experiment of operation by PTA committee? About as well as could be expected, really.

Case in point: Morgan Stanley (MS:NYSE) is trying desperately to wiggle out from under the Commissat’s rusty iron thumb by paying $10 billion in TRAP [sic] funds back to Washington.

$60 Million is Buried Underneath Port Barre, Louisiana... Want to Know Where?

All it takes is for you to be among the first 500 people to claim your FREE report containing all the details. But you must move quickly. Both Washington and Wall Street are looking to beat you to the punch. Take this early warning and run... it could hand you to $21,750 in just a matter of months.

Access your free report here…

…This Is Now

Problem is, amid that whopping big check to Washington, payouts on its private bond financing, ongoing real estate losses, and a massive set aside (72% of quarterly revenue) for employee pay, benefits and bonuses, the investment bank is declaring a loss of $1.26 billion, a slide of some 219% from the same quarter in 2008.

Morgan Stanley CFO Colm Kelleher whines that if one would only be so kind as to completely discount all that overhead and miscellaneous charge-downs, “core earnings swing quite significantly into the positive.” But with practically the very same breath, Kelleher conceded that such losses were likely to continue on into the indefinite future.

In the end, I suspect that MS will be forced back to Washington’s poisonous teat again and again – either by blatant need or by royal fiat – as this story continues to unravel. I’m sure Kelleher et al. wonder in the late hours of the long, dark night as to how they lost control of their destinies like this.


Yours truly,


Refer to a friend

Latest Taipan Daily Issues

Market News Articles

Taipan Publishing Group

Taipan Daily - a free e-service of Taipan Publishing Group - is easily the most profitable 5 minutes of your day. To become a Taipan Daily member sign up here.

For more information, about Taipan Daily and Taipan Publishing Group, visit our home page.

TPG Resources

To advertise in our e-letters or on our Web site, contact us.

Republish Taipan Daily on your Web site, blog, or e-mail w/o charge. Learn how.

Have a question for our editorial team? E-mail us.

Interested in our team covering a topic in Taipan Daily? Send us an e-mail.

Copyright 2009 Taipan Publishing Group LLC and Taipan Daily, 16 W. Madison St., Baltimore, MD 21201. All rights reserved. No part of this report may be reproduced or placed on any electronic medium without written permission from the publisher. Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. Taipan Publishing Group or its editors and publications do not advocate the purchase or sale of any security or investment. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. Taipan Publishing Group expressly forbids its writers from having a financial interest in any security that they recommend to their readers. Furthermore, all other employees and agents of Taipan Publishing Group and its affiliate companies must wait 24 hours before following an initial recommendation published on the Internet, or 72 hours after a printed publication is mailed.

This email was sent to because you subscribed to this service.

Having trouble getting your emails? Add us to your address book. Get Instructions here...

Please note: It's not our intention to send e-mail to anyone who doesn't want it. If you would like to remove yourself from this mailing list, please see the instructions at the bottom of this message.

To unsubscribe: Unsubscribe here.

To cancel by mail or for any other subscription issues, write us at:
Order Processing Center Attn: Customer Service P.O. Box 925 Frederick, MD 21705 USA

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.