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Non-Tech : The Enron Scandal - Unmoderated -- Ignore unavailable to you. Want to Upgrade?

To: LPS5 who wrote (3024)	5/14/2004 6:11:24 PM
From: The Duke of URL©	Read Replies (1) \| Respond to of 3602

[not spellchecked] "And I absolutely do not think that the repeal of Glass Steagal is either negative or has any sort of bearing on this issue. In fact, I see the government's erstwhile prohibition on the lines of business that a private company can engage in equally encroaching on private property rights as that which evidently entitles them to the email messages (financial statements, employment records...) of such an entity. I see the fundamental problem as one whereby people in this country have increasingly chosen a growing, paternal state over the Constitutionally-outlined notions of freedom and responsibility." You get partial credit. This is how the repeal of Glass Steagall got Qauttrone convicted: 1-Banks have been prohibited from owning Brokerage companies since the Great depression for when they do they destroy the economy. As you know, this is or rather was, the Glass steagall act. 2-Clinton knew this that is why he had to be blow job nuetralized. (he vetoed EVERYTHING that touched Glass Steagall) 3-Once the banks started making HUGE campaign contributions to the Congress, Glass Steagall was repealed and Citicorp could buy smith barney and enter into a pool with Credit Suise to loan money to World com, who owned First Boston. 4-Now citi loans World Com (and Enron) a shtload to wit, 45 Billion dollars securred by stock. 5-First Boston and smith barney pump the stock, sell it to the banks depositors. 6- Six things happen all at once citicorp gets paid their loans interest and points, their own depositors buy the stock both of citi corp and of the company in new issues (bonds or stock). Citicorp no longer has to pay fdic insurance on the depositors money, because it was withdrawn to invest in Citicorp funds that own the Enron and World com stock and bonds. The bank is not the crdeitor bank any more, AND WHAT IS WORSE, REAL NEEDY COMPANIES WHO COULD USE THE MONEY TO KEEP OUR ECONOMY GOING, DON'T GET IT. Because the last depression proved that Banks would rather lend gov insured money to their own deals, rather than customers. 7- Now people are pissed so someone has to be thrown in the coliseum: Enter that DEMOCRAT!!!! "Franky The Q". The problem is crime wise, he is not guilty, BUT HE IS GOING DOWN, congress can't admit it made a mistake, or worse, took money to vote what they knew was the wrong way. WHAT THEY DEPEND ON, is people like you waxing all philosophic so that every one can all moan together how bad things are and they get to keep the Swiss Bank account. THIS ain't rocket science, but it does rather depend on people not figuring it out and blaming some obtuse philosophy. Meanwhile, the BK court put pressure on CITI to make a token settlement. Bravo. Curtain, Act One. (and PLEASE, this is how it conceptually works, some of the details might be wrong, but it would take years to unwind and dissect some of these transactions.)