In order to overcome massive US and world public opposition to new wars in the Middle East, Obama relied on the horrific internet broadcasts of ISIS slaughtering two American hostages, the journalists James Foley and Steve Sotloff, by decapitation. These brutal murders were Obama’s main propaganda tool to set a new Middle East war agenda – his own casus belli bonanza!
This explains the US Administration’s threats of criminal prosecution against the families of Foley and Sotloff when they sought to ransom their captive sons from ISIS.
With the American mass media repeatedly showing the severed heads of these two helpless men, public indignation and disgust were aroused with calls for US military involvement to stop the terror. US and EU political leaders presented the decapitations of Western hostages by the so-called Islamic State (ISIS) as a direct and mortal threat to the safety of civilians in the US and Europe. The imagery evoked was of black-clad faceless terrorists, armed to the teeth, invading Europe and the US and executing innocent families as they begged for rescue and mercy.
The problem with this propaganda ploy is not the villainy and brutal crimes celebrated by ISIS, but the fact that Obama’s closest ally in his seventh war in six years is Saudi Arabia, a repugnant kingdom which routinely decapitates its prisoners in public without any judicial process recognizable as fair by civilized standards – unless tortured ‘confessions’ are now a Western norm. During August 2014, when ISIS decapitated two American captives, Riyadh beheaded fourteen prisoners. Since the beginning of the year the Saudi monarchy has decapitated more than 46 prisoners and chopped off the arms and limbs of many more. During Obama and Kerry’s recent visit to Saudi Arabia, horrendous decapitations were displayed in public. These atrocities did not dim the bright smile on Barak Obama’s face as he strolled with his genial royal Saudi executioners, in stark contrast to the US President’s stern and angry countenance as he presented the ISIS killing of two Americans as his pretext for bombing Syria.
The Western mass media are silent in the face of the Saudi Kingdom’s common practice of public decapitation. Not one among the major news corporations, the BBC, the Financial Times, the New York Times, the Washington Post, NBC, CBS and NPR, have questioned the moral authority of a US President who engages in selective condemnation of ISIS while ignoring the official Saudi state beheadings and the amputations.
Decapitation and Dismemberment: By Dagger and Drones
The ISIS internet videos showing gaunt, orange-suited Western prisoners and their lopped-off heads have evoked widespread dismay and fear. We are repeatedly told: ‘ISIS is coming to get us!’ But ISIS is open and public about their criminal acts against helpless hostages. We cannot say the same about the decapitations and dismemberment of the hundreds of victims of US drone attacks. When a drone fires its missiles on a home, a school, wedding party or vehicle, the bodies of living people are dismembered, macerated, decapitated and burned beyond recognition – all by remote control. The carnage is not videoed or displayed for mass consumption by Obama’s high command. Indeed, civilian deaths, if even acknowledged, are brushed off as ‘collateral damage’ while the vaporized remnants of men, women and children have been described by US troops as ‘pink foam’.
If the brutal decapitation and dismemberment of innocent civilians is a capital crime that should be punished, as I believe it is, then both ISIS and the Obama regime with his allied leaders should face a people’s war crimes tribunal in the countries where the crimes occurred.
There are good reasons to view Washington’s close relation with the Saudi royal beheaders as part of a much broader alliance with terror-evoking brutality. For decades, the US drug agencies and banks have worked closely with criminal drug cartels in Mexico while glossing over their notorious practice of decapitating, dismembering and displaying their victims, be they local civilians, courageous journalists, captured police or migrants fleeing the terror of Central America. The notorious Zetas and the Knights Templar have penetrated the highest reaches of the Mexican federal and local governments, turning state officials and institutions into submissive and obedient clients. Over 100,000 Mexicans have lost their lives because of this ‘state within a state’, an ‘ISIS’ in Mexico – just ‘South of the Border’. And just like ISIS in the Middle East, the cartels get their weapons from the US imported right across the Texas and Arizona borders. Despite this gruesome terror on the US southern flank, the nation’s principle banks, including Bank of America, CitiBank, Wells Fargo and many others have laundered billions of dollars of drug profits for the cartels. For example, the discovery of 49 decapitated bodies in one mass in May 2014 did not prompt Washington to form a world-wide coalition to bomb Mexico, nor was it moved to arrest the Wall Street bankers laundering the ‘beheaders bloody booty’.
Obama’s hysterical and very selective presentation of ISIS crimes forms the pretext for launching another war against a predominantly Muslim country, Syria, while shielding his close ally, the royal Saudi decapitator from US public outrage. ISIS crimes have become another excuse to launch a campaign of ‘mass decapitation by drones and bombers’. The mass propaganda campaign over one crime against humanity becomes the basis for perpetrating even worse crimes against humanity. Many hundreds of innocent civilians in Syria and Iraq will be dismembered by ‘anti-terrorist’ bombs and drones unleashed by another of Obama’s ‘coalition’.
The localized savagery of ISIS will be multiplied, amplified and spread by the US-directed ‘coalition of the willing decapitators’. The terror of hooded beheaders on the ground will be answered and expanded by their faceless counterparts in the air, while delicately hiding the heads rolling through the public squares of Riyadh or the headless bodies displayed along the highways of Mexico … and especially ignoring the hidden victims of US-Saudi aggression in the towns and villages of Syria.
Having bungled the so-called independent review of foreclosure mistakes, the Obama administration has now decided that the best way to help homeowners is to have the banks—which were responsible for the foreclosure errors—examine the case files and decide how best to fix the situation.
In January, the Office of the Comptroller of the Currency (OCC) shut down the foreclosure review by independent consultants—which had already cost about $2 billion— after it was revealed that the banks had selected said consultants. The process also proved to be taking too long to resolve homeowner grievances, so the administration decided to reach a $3.6 billion settlement with the banks.
But before the money can be distributed to individuals wronged during the foreclosure crisis, more than four million cases need to be reviewed. Instead of federal regulators doing the work, they are trusting the financial institutions, including Bank of America and Wells Fargo, to do it properly this time.
Housing advocates, not surprisingly, are worried the banks will shortchange homeowners while they scrutinize their earlier mistakes. “The whole process has been a slap in the face to homeowners and a slap on the wrist to banks,” Isaac Simon Hodes, an organizer with Massachusetts-based Lynn United for Change, told The New York Times. “The latest development shows how there has been no accountability.”
The OCC has promised to check the bank’s work to ensure things go right this time.
- Big Banks Slither out of Mortgage Fraud Review with Minor Costs (alethonews.wordpress.com)
- Big Banks Put In Charge of (Their Own) Foreclosure Settlement Payout (reason.com)
After a year and a half of bungled work and plenty of criticism, the Obama administration decided to close down its review of mortgage fraud this week and order banks to pay a sum that consumer advocates say falls short of what’s fair.
The Independent Foreclosure Review was established 18 months ago to vet how banks handled home foreclosures and to compensate Americans for any wrongdoing.
In the end, federal regulators decided on an $8.5 billion settlement that banks must pay. But of this total, only $3.3 billion is actual cash, while another $5.2 billion represents “credits” that financial institutions will receive for avoiding future foreclosure.
The $3.3 billion in funds will be distributed to about 3.8 million borrowers who were eligible to have their foreclosures reviewed. That amounts to approximately $870 per homeowner.
The Office of the Comptroller of the Currency, one of the federal regulators that managed the review and negotiated the new settlement, would not reveal to the media how it decided on the $3.3 billion figure.
As for the review itself, the process was wrought with problems, starting with the fact that banks were allowed to hire “independent” consultants to review mortgage files—consultants who often turned out to have business relationships with the banks they were reviewing, thus creating potential conflicts of interest.
Why the Feds Won’t Prosecute the Big Wall Street Banks
Yesterday the Department of Justice and 49 state attorneys general announced the long anticipated $25 billion deal with 5 large Wall Street firms — Bank of America Corporation, JPMorgan Chase & Co., Wells Fargo & Company, Citigroup Inc. and Ally Financial Inc. — to settle foreclosure and mortgage servicing abuses. Unfortunately, the settlement is not yet 24 hours old and cracks are emerging.
Each major corruption settlement with Wall Street, and they are legion over the past 15 years, triggers a commemorative magazine cover. I keep some favorites handy.
The October 1996 cover of Registered Representative Magazine, the trade magazine for financial consultants and stock brokers, blared in 48 point bold red type: “How the NASD Was Corrupted.” That issue focused on the years of price fixing of stocks traded on the Nasdaq market by the biggest firms on Wall Street while the self regulatory body, the National Association of Securities Dealers, was dominated by the same firms and looked the other way. (Think SEC today.)
The Department of Justice, then under Janet Reno, had this to say about the settlement: “We have found substantial evidence of coercion and other misconduct in this industry. By providing for the random monitoring of traders’ telephone calls, we expect to deter future price fixing on Nasdaq.” At the time, Reno said the “law does not provide the Department with statutory authority to recover damages or monetary penalties in such cases.”
The next big corruption probe drew a giant green serpent wrapped around the street sign for Wall Street on the cover of BusinessWeek with the rhetorical question: “Wall Street: How Corrupt Is It?” That settlement collectively cost the big firms $1.4 billion for peddling fake stock research to the public to induce investors to buy bad companies while the same analysts called the firms “dogs” and “crap” in internal emails. The announcement of the deal came on April 28, 2003 from the SEC, the New York Attorney General of that day, Eliot Spitzer, the NASD, the New York Stock Exchange and state securities regulators — all gushing over how great this deal was for the public and how it was going to reform Wall Street.
New York Magazine has found an odd way of commemorating the crumbs available to illegally evicted and displaced children and families under the current settlement. The current magazine cover has a Wall Street guy clasping his… uh…private portfolio…with the headline: “The
Emasculation of Wall Street.” If Wall Street is being emasculated, you sure can’t tell it from yesterday’s settlement.
Not only did Wall Street settle its robo-signing, illegal foreclosures and servicing problems with the Department of Justice and 49 state attorneys general (Oklahoma settled independently) but lost in the headlines was that the two major regulators of national banks, the Office of the Comptroller of the Currency (OCC) and the Federal Reserve, also settled with the biggest Wall Street banks in a decidedly cozy deal that effectively lets them off without a monetary fine as long as they pay under the federal-state settlement agreement.
The OCC settled with Bank of America, Citibank, JPMorgan Chase, and Wells Fargo for a combined $394 million but here’s the cozy part: “the OCC agrees to hold in abeyance imposition of such penalties provided the servicers make payments and take other actions under the federal-state settlement with a value equal to at least the penalty amounts that each servicer acknowledges that the OCC could impose…”
The Federal Reserve issued monetary sanctions of $766.5 million against the parent holding companies: Bank of America Corp., Citigroup Inc., Ally Financial, Inc., JPMorgan Chase & Co., and Wells Fargo & Co. and two mortgage servicers GMAC Mortgage, LLC a subsidiary of Ally Financial, Inc., and EMC Mortgage Corporation, a subsidiary of JPMorgan Chase & Co. But again, the Wall Street firms can get off the hook for paying these sums by simply paying them under the $25 billion federal-state settlement.
The specifics of just what the state attorneys general agreed to is unknown, even to some of the attorneys general. According to the web site set up to inform the public about the settlement both the primary “Settlement Document” and the “Executive Summary” will be “coming soon.” Without those documents available for public perusal, there is the reasonable suspicion that the public has once again been feted to lipstick on a pig, as they like to say on Wall Street.
One striking problem is that California Attorney General Kamala D. Harris states on her web site and in this video that California is getting $18 billion. Florida Attorney General Pam Bondi
says on her web site that Florida is receiving $8.4 billion. Those two amounts would leave a negative figure for the other 47 states that agreed to the $25 billion deal.
There’s also something peculiar about the Federal Department of Justice and 49 states setting up an informational web site that ends in .com instead of .gov. Register.com shows the web site has used a privacy shield to block the name of the owner of the site.
Corporate media is reporting that the deal settles only foreclosure and servicing abuses. But this web site states: “The agreement settles only some aspects of the banks conduct related to the financial crisis (foreclosure practices, loan servicing, and origination of loans) in return for the second largest state attorneys general recovery in history and direct relief to distressed borrowers while they can still use it.” The Florida Attorney General concedes on her web site that the deal with the state includes loan origination issues. That may not sit well with residents of a state where massive loan origination frauds occurred.
I called the AG’s office in Massachusetts – historically a tough regulator when it comes to Wall Street. The spokesperson could not answer why loan origination is included on the settlement web site.
Why is mortgage loan origination a big deal? Because tens of thousands of consumers were victimized in a bait and switch racket, believing they were getting a fixed rate mortgage only to find out a few years down the road that they had an adjustable rate mortgage that reset and doubled or even tripled their monthly payment – making it impossible to stay in their home; an effective wealth stripping enterprise by Wall Street against decent, hardworking families across America.
Other abuses in loan origination abounded. The Federal Trade Commission took this testimony from Michele V. Handzel, a former Branch Manager for CitiFinancial, a unit of Citigroup. Ms. Handzel is comparing the practices of CitiFinancial after it acquired another firm, The Associates.
“CitiFinancial put much more pressure on employees than the Associates did to include as many credit insurance and ancillary products as possible on every loan….In fact, I feel that the credit insurance sales practices at CitiFinancial were worse than at The Associates. From January to June 2001, the policy was that no personal loan at CitiFinancial would be approved if it did not include some type of credit insurance, nor would a real estate loan be approved without some type of ancillary product…There were several internal measures in place to effectuate this policy. For instance, District Managers would frequently refuse to send a loan to underwriting if it did not include some type of insurance product. Moreover, loans that were closed and did not include any insurance would be identified by CitiFinancial’s internal insurance auditors, and the employee who closed the loan would be written up…Closings at CitiFinancial resembled those at The Associates – they were brief. Personal loan closings took approximately 10 minutes. Real estate loan closings took a little longer but also did not provide a lot of details about the loan. At CitiFinancial, I was instructed to do a ‘closed folder’ closing, meaning that information would be discussed orally first. Only after the borrower indicated that he wanted to sign would the employee open the folder and have the borrower sign the papers.”
In the past, Wall Street knew it could steal billions and settle with its easily maneuvered regulators for millions. It did this time and time again, never having to admit to any crime. Wall Street translated this to mean that crime was a lucrative profit center. This latest settlement raises the potential of this profit center. Wall Street now understands that it can steal trillions and settle for billions.
And just why is it that the Feds can’t or won’t prosecute the biggest of the Wall Street firms? Because they are the Federal Government’s bond brokers, the primary dealers who contractually agree to buy Treasury bills or notes or bonds at every U.S. Treasury auction. They may be serially corrupt, but Uncle Sam needs those contractual guarantees of its primary dealers to be sure it can pull off its debt auctions. And the U.S. government cannot engage in contracts with convicted financial felons.
And it won’t break up these bloated behemoths because big balance sheets are just what a government with $15 trillion in debt is looking for in a bond broker.
Pam Martens worked on Wall Street for 21 years. She spent the last decade of her career advocating against Wall Street’s private justice system, which keeps its crimes shielded from public courtrooms. She maintains, along with Russ Martens, an ongoing archive dedicated to this financial era at www.WallStreetOnParade.com. She has no security position, long or short, in any company mentioned in this article. She is a contributor to Hopeless: Barack Obama and the Politics of Illusion, forthcoming from AK Press. She can be reached at firstname.lastname@example.org
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