Wall Street is through using the Greeks to loot government coffers and people's pockets moving all US wealth to the top. 1% Wall Street is changing the secret knocks, secret handshakes, and giving another funny hat to the global 2%.
Wall Street used two means to claw back the wealth of its old 5% for thousands of years. First it creates great economic crashes and Great Depressions that see most banks close, stock market assets disappear, banking accounts confiscated. They did this a century ago after the roaring 1890s-1920s----today's roaring 1990s-2010s. The second thing they do is create great societal instability bringing martial law and more wars confiscating real estate and any public assets left. Then the 1% Wall Street rebrand themselves to far-right Libertarian Marxist just so any real estate and wealth can be confiscated for 'communal ' status where it simply falls into the hands of the 1%. All of this is planned to be installed over the coming two decades with this coming decade setting the stage for this.
We will segue from talking about Development Corporations as a whole to looking at the banking and financial structures being installed. I pointed to Baltimore Development Corporation under a very, very, very, very neo-conservative Johns Hopkins as choosing the two worst offenders of massive fraud---Merrill Lynch and Bank of America. All Wall Street banks are bad---these were the worst.
Baltimore was staged with the most subprimed municipal bond debt in the nation because our Baltimore City Hall is totally captured to global Hopkins. No doubt all pensions, retirements, all public trusts are tied to US Treasury bond debt leverage all to be lost in this subprimed global US Treasury/municipal bond collapse created to bring down the US economy. Baltimore's Maryland Assembly and Baltimore City Hall pols brought citizens out to support all this bond debt selling it as usual as good for the poor. These same pols completely deregulated the banking and finance industry beyond what was done by Glass Steagall and the 1990s bank deregulation----these pols really want to sock it to Baltimore citizens. These are the establishment candidates in each election who come out promising housing, ending police brutality, jobs-----and Wall Street Baltimore Development 'labor and justice' organizations then promote those establishment candidates.
Slate Writer Is Dead Wrong to Root Against Community Banks
By Rob Blackwell
December 3, 2013WASHINGTON – Slate's economic and business blogger, Matthew Yglesias, published a provocative blog post on Tuesday, essentially arguing that community banks need to be euthanized.
Last time we discussed banking we focused on credit unions and how they will be taken down with this coming crash----their bank account insurance is not FDIC---it is a special Federal account that really does not exist with the $20 trillion in national debt from subprimed US Treasuries. Today we look at the FDIC insurance on community and Wall Street banks to see the same will happen to community and regional banks---leaving only the Wall Street banks as our financial system. This is the structure for most third world nations---it hand complete control of our economy and wealth to the 1%.
'The vast majority of the community bankers who neglected to "mind the store," as Yglesias puts it, disappeared when their banks failed'.
The 2008 crash exposed mortgage loan originators and Wall Street banks throwing aside centuries of banking and financial prudence and precedent in law to subprime the entire industry. Well, this time they are using community banks and credit unions as the ones subpriming the way they do business taking that entire industry down. Smaller banks will disappear and regional banks with be merged with Wall Street making them again EVEN MORE TOO BIG TO FAIL.
What If 99% of Banks Disappeared?
By Paul Davis
December 6, 2013I shudder to imagine a U.S. economic future where Slate's Matt Yglesias got his wish and 99% of existing banks were eliminated.
A system where only the top 1% of existing banks are deemed worthy to remain in business sounds like a grim sci-fi movie. Gone would be a ton of lending, along with people who have shown leadership in times of crisis. We'd also lose a significant number of innovators.
As my colleague Rob Blackwell has passionately stated already, most small banks are well-run, profitable and easier to regulate compared with the large banks that have complex financial instruments and nearly incomprehensible off-balance-sheet dealings.
But what the customer, and the economy, would lose must be considered, too. Data and personal experience demonstrate that it would be quite a lot – and not easily replaced.
Community banks provide a substantial amount of credit to startups that would otherwise go overlooked by larger institutions. A large part of this is because community bankers know the people in their communities and they are plugged into the markets that they serve. They also have more flexibility to lend based on so-called soft information, which can overcome the opaque nature of many applicants.
Data back this up. Smith Williams and Yan Lee, researchers at the Federal Deposit Insurance Corp., presented a white paper at the Federal Reserve Board's first community bank research conference that supports the notion that small banks are the primary source of startup funding.
Williams and Lee studied nearly 3,000 startup businesses, looking at their proximity to community banks and how they are financed. They found that startups become less likely to fund operations with bank loans as the distance between their office and a community bank increases.
Startups that do not borrow from banks usually resort to using credit cards to pay their initial bills. The researchers found that instances of using credit cards rose by 7% for every quarter mile of distance between the startup and the closest community bank.
"Proximity to the nearest community bank does affect the likelihood of new firms using bank credit," Williams said during her presentation at the Fed. "New firms that locate further away from community banks are more likely to use expensive, and impersonal, credit cards."
Credit cards have higher rates and less forgiving terms, which could cripple or destroy a startup before it even hits the ground running. The FDIC's researchers observed that firm deaths eliminate 40% of the jobs created by startups within the first five years.
That's not to say that community bankers are blindly rubber-stamping every application that crosses their desk. Some might take on excessive risk, but most are doing everything they can to secure terms and conditions to protect their investment – and they are willing to turn away business plans that exceed their risk tolerance.
That point was made recently by Frank Gavigan, chief executive at Premier Commercial Bank in Greensboro, N.C., during a presentation to local business leaders. He told attendees that the bank wants to lend to entrepreneurs, though it must be mindful of risk. "If you are a career nurse looking to, say, go out and open a beauty salon with no proven track record, we may not be the bank for you," he said.
Data aside, there are countless examples of small banks that are connecting with their communities. And, under the plan promoted by Yglesias, those connections would be snuffed out if the government put all of those banks out of business.
Premier Commercial, for instance, hosts monthly sessions with local businesses, bringing in outside professionals to discuss emerging topics ranging from succession planning to health care reform. Just last month, they hosted a local economist to give attendees a glimpse at the area's challenges and opportunities in 2014.
In St. Louis, Enterprise Financial (EFSC) offers "Enterprise University" -- free courses in areas such as marketing, social media, employee compensation and business valuation. These are half-day courses led by working professionals. Attendees do not have to be bank customers, though management certainly hopes they can change that.
Those opportunities would be limited, or gone, if Yglesias were in charge of bank regulation.
In terms of crisis management, look no further than Gulf Coast bankers during the vicious hurricanes of 2005.
Employees of Hancock Holding in Gulfport, Miss., washed, dried and ironed cash that was flooded by Hurricane Katrina, then set up tables in the community to make loans with little, to no, documentation from borrowers. Rusty Cloutier, CEO of MidSouth Bancorp in Metairie, La., drove $500,000 in cash to Beaumont, Texas, to pay city workers after Hurricane Rita.
Emergency funds like those might be harder to come by if all community banks disappeared.
And a number of community banks are innovators, even if they don't command big headlines in magazines like Slate.
In addition to being one of the nation's most-prolific SBA lenders, Live Oak Bank in Wilmington, N.C., built an app that transfers the bulk of the paper-intensive lending process online, making it more efficient, more accessible and easier to manage. Today, nCino helps other banks manage commercial and construction loans, and plans are under way to expand into retail and mortgage lending.
Just a few hundred miles inland, Independence Bancshares in Greenville, S.C., is developing an app that seeks to tie together mobile banking and real-time processing technology. Management, including former Citigroup execs, hope to hold a trial run next year.
Sure, a number of innovators may stumble but at least they are out there trying to develop new solutions to benefit bankers and their customers. Those efforts would cease to exist if Yglesias got his wish.
I agree that a number of banks are still limping along because of unresolved credit issues, regulatory costs, and so on. The vast majority of the community bankers who neglected to "mind the store," as Yglesias puts it, disappeared when their banks failed. And we have market conditions in place to start paring the ranks of the small banks that cannot stay competitive, though would-be buyers remain understandably cautious. That, too, will change.
I was talking to a community banker in North Carolina recently, who expressed that thought. Pressley Ridgill, CEO of NewBridge Bancorp in Greensboro, told me he believes that mergers among the state's biggest community banks make sense, though executives must set aside ego-driven obstacles, such as who gets to be the boss and whose brand name will survive.
Still, Ridgill is convinced that those types of deals will happen, pointing to a recent acquisition by the former SCBT in South Carolina and Union First Market's pending acquisition of StellarOne in Virginia as examples. Those types of transactions will take root in other states which, in turn, will shrink the number of community banks.
More importantly, they will preserve an integral subset of banking that will continue to make loans, educate customers and innovate.
Paul Davis is Community Banking Editor at American Banker
America's microbanks are community banks, pay-day lenders, and what would be the micro-loan structure that was captured to Wall Street when they started to allow venture capitalists be that micro-lender. They are the IT'S A WONDERFUL LIFE SAVINGS AND LOAN VS THE POTTERVILLE WALL STREET BANK.
Bernanke and Greenspan at the FED working with Wall Street and Congress have set the stage for the same Great Depression using Wall Street fraud as the vehicle. FDR and social Democrats reversed this crisis by placing regulatory restrictions keeping banks from becoming too big and to intertwined in the national and local economy. Where that crash took out large numbers of smaller banks----FDR funded the rebuilding of this competitive structure. CLINTON/BUSH/OBAMA and their 5% to the 1% spent this time dismantling all those protections under the guise of
THE NATURAL RIGHT OF AN INDIVIDUAL TO ACCUMULATE EXTREME WEALTH AND POWER.....TODAY'S CIVIL LIBERTIES FOR NEO-LIBERALS AND NEO-CONS.
Each economic crash Wall Street installs small bank leaders who drive fraud at that level then taking down all banks especially those not INVOLVED IN THE FRAUD. Those bad banks are often tied to our Congressional leaders, state, and local pols.
FDR created the FDIC and Glass Steagall----now global pols are going to use FDIC to bring banking wealth to only Wall Street banks.
We all know both SEC and FDIC have worked for Wall Street and not citizens as is the mission.
New Financial Laws
One of FDR's major accomplishments during his first 100 days in office was a program that revolutionized the financial industry. For the first time, the business of buying and selling shares in companies was regulated, and the bank accounts of ordinary people were insured. The SEC and FDIC were established by the New Deal. These two agencies – the Securities and Exchange Commission and the Federal Deposit Insurance Corporation – had a significant, indirect effect on the nation's farmers.
In his early career, FDR had worked for a Wall Street law firm. Perhaps because of what he saw there, his inaugural address in 1933 was filled with disdain for Wall Street.
"[The] rulers of the exchange of mankind's goods have failed through their own stubbornness and their own incompetence, have admitted their failure, and have abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the heart and minds of men… there must be strict supervision of all banking and credits: and investments, so that there will be an end to speculation with other people's money."
Congress hurriedly created the first Securities and Exchange Commission, and FDR named Wall Street regular Joseph P. Kennedy – the father of later President John F. Kennedy – to be the Commission's first chairman. Banks could no longer buy stocks with depositors' money. Companies that wanted to sell shares to the public to raise money had to disclose a host of financial information to potential investors. For the first time, investors could find out if a company was worth the stock price it was asking. The SEC also regulated the major stock exchanges, the brokers and dealers, mutual funds and investment advisors.
These new regulations helped farmers indirectly because, gradually, investors found new confidence, companies were able to expand again, and consumers were able to buy more food and other agricultural products.
The Federal Deposit Insurance Corporation (FDIC) also helped rural residents because for the first time they knew that their money in the bank was insured. If the bank went out of business, the FDIC would reimburse depositors up to certain limits.
The FDIC operates by imposing a small tax on the amount of money that a bank has in deposits. If a bank goes under, the FDIC will first try to sell the assets that were used to secure the loans and will then dip into the insurance fund to pay back depositors. The FDIC also regulates banking practices.
Ads for banks in the Great Plains prominently display the "Insured by the FDIC" logo – more so than in other regions of the country. The FDIC has become an important part of the confidence that people feel in the banking system.
Of course Wall Street wants us to think it is the smaller community banks that are mismanaged and lax making bad loan decisions when they are the ones opening the community banks that create the frauds. Most local banks are operating for the community good, they provide competition in the industry, and they are more likely to invest in communities in ways needed by the people living there. They do not get involved in high-risk finance for the most part.
State's like Maryland are central in all the banking structures for fraud----they were behind MERS; they allowed Maryland banks to launder all kinds of fraudulent transactions including offshoring of wealth. This is because we have no oversight and accountability of our financial industry----Maryland Assembly pols defund these agencies and appoint crony people to commissions tasked with protecting the public. When Baltimore citizens are shouting against the war on housing, jobs, community development---these are the policies by Baltimore's Maryland Assembly pols that create these injustices and extreme poverty. Extreme poverty causes the crime and violence---and that brings the over-policing.
THIS IS WHY AN ORGANIZATION OR PERSON CANNOT SHOUT OUT FOR JUSTICE WHILE HELPING TO RIG THESE PRIMARY ELECTIONS FOR ESTABLISHMENT CANDIDATES DOING ALL THIS.
America's Microbank Problem
By Matthew Yglesias
Roughly 99 percent of America's banks are ridiculously small.
The Bank of Bird-in-Hand is set to open its doors soon and will become the first new bank chartered in quite a few years. It's become slightly harder as a regulatory matter to launch a new bank since the crisis, but the biggest reason nobody's been opening new banks is that banks have been closing like crazy. About 1,640 banks have vanished since the end of 2007, either due to merger or failure, so if you want to get into the banking game, the best approach has been to simply take over a failing bank.
But did I mention that despite the huge reduction in the number of banks in this country there are still 6,891 banks in America? That's a lot of banks.
And indeed the flipside to the much-discussed problem of the American megabank is the less-discussed problem of America having far far far too many banks.
There are three basic problems with the microbanks:
- They are poorly managed: You know how the best and brightest of Wall Street royally screw up sometimes? This doesn't get better when you drill down to the less-bright and not-as-good guys. It gets worse. And since small banks finance themselves almost entirely with loans from FDIC-ensured depositors, nobody is watching the store. In effect, the well-managed banks are being taxed to subsidize the poorly managed ones. The dubious decision-making doesn't get as complicated as what you see on Wall Street—it's mostly just classic boom-and-bust pro-cyclical commercial real estate loans—but it creates all the same problems.
- They can't be regulated: Since these banks are so small, they could be easily driven out of business by high regulatory compliance costs. So since American public policy is perversely committed to preserving them, small banks regularly get various kinds of carve-outs from regulations. And once the carve-outs exist, they create pressure for extension further up the food chain. Other times the compliance issues of small firms become a reason to simply not do tight regulation.
- They can't compete: If you want the JPMorgan Chases and Bank of Americas of the world to be held to account, you need both regulation and competition. But a bank serving a handful of rural counties or a single midsized city doesn't offer any real competition. Having a large share of America's banking sector tied up in tiny firms only makes it easier for a handful of big boys to monopolize big-time finance.
The FDR-era banking policies worked well for several decades until the privatization and dismantling neo-liberals and neo-cons came into office. Handing our FHA loans to public private privatization gave us subprimed mortgages----handing our Federal student loan agency to a public private partnership with Wall Street banks gave us a trillion dollars in subprimed higher-education fraud-----of course the very fund meant to protect our bank accounts have been misappropriated to profiting Wall Street leaving almost no funding in FDIC to cover failing bank accounts. Since Wall Street banks are covered by FDIC as well as our community banks---guess who will get all of what FDIC funds in this account and which will get none? That's right---all the FDIC will go to Wall Street banks and then it will be directed to bank accounts for the wealthiest/corporations.
$20 trillion in national debt assures no Federal rescue as was the case a century ago before these banking regulations were in place.
THIS IS SARBANES, MIKULSKI, CARDIN, CUMMINGS IN BALTIMORE LEGACY----AS WITH ALL MARYLAND CONGRESSIONAL POLS. MARYLAND ASSEMBLY POLS SIMPLY FOLLOWED SUIT BREAKING DOWN STATE BANKING AND FINANCE LAWS. It is the duty of Congress to see the FDIC has funding to meet its obligations.
'The fact that the FDIC will be intimately involved in making non-recourse loans with the public-private investment program tells us this agency is where much of the money is going to be floating through'.
This is exactly why Wall Street global pols are creating these conditions------it is our last line of defense in losing all our wealth
'It is our last line of financial defense at this point'.
FDIC Insures $4.7 Trillion in Deposits with a $13.6 Billion Deposit Insurance Fund.
This is Like Going into a Hurricane with a 99 Cent Store Umbrella.On Friday, three banks failed and the FDIC took them over. Now this isn’t the big news necessarily. What it significant is that one of the banks taken over was Silverton Bank of Atlanta, Georgia. Silverton bank has $4.1 billion in assets and will cost the FDIC $1.3 billion from their dwindling insurance fund. This will be the costliest bank takeover since U.S. Bank took over Downey Savings and Loan in November of 2008 for a cost of $1.4 billion to the FDIC Insurance Fund. So how much is left in the fund? Not much. In fact, if we throw in Citigroup and Bank of America, two banks that have failed without government support and massive intervention, the fund would be broke. But let us set those two banks aside and start running the numbers.
As of December 31, 2008 the FDIC fund had $18.9 billion in it. Already in 2009 we have seen 32 bank failures, above the 25 bank failures for all of 2008. And with commercial real estate and residential real estate still facing record foreclosures, we can expect that more money will be drained from the fund. Now most of the times, you will get bank failures that cost a few million but every once in awhile you’ll get a moderate sized bank like Silverton that will cost the fund $1.3 billion.
Let us first take a tally of the 2009 bank failures:
Looking at the list above, you can see that only 2 of 32 bank failures of 2009 actually cost the fund more than $500 million. Silverton by itself took out the same amount from the FDIC fund as the first 11 bank failures of 2009. In the age of mega banks, we are no longer in a depression era local banking system where bank failures impacted the immediate community. Our banking system is now interconnected that a bank failure in Georgia with Silverton 1,400 client banks in 44 states and has six regional offices impacts a larger geographic area. Many people never heard anything about Silverton until this Friday.
Let us refer to the 32 bank failure list I put together from the FDIC again. So far in 2009, the total estimated cost to the FDIC’s fund is going to be $5.3 billion:
$18.9 billion in fund as of (Dec, 31) – $5.3 billion in 2009 bank failures = $13.6 billion left
And many of you may remember the failure of IndyMac bank back in July of 2008. When IndyMac was taken over by the FDIC it had $32 billion in total assets being managed. Initially the FDIC had an estimate that the cost to the fund would be anywhere from $4 to $8 billion. A sizeable number. Well after many months, this information was released on March 19, 2009:
“IndyMac Federal sustained losses of $2.6 billion in the fourth quarter 2008 due to deterioration in the real estate market. The total estimated loss to the Deposit Insurance Fund is $10.7 billion. No further payments on receivership claims for uninsured funds from former IndyMac Bank, F.S.B. will be distributed as a result of this transaction.”
Talk about missing on your estimate. It went from a lower end estimate of $4 billion to a finalized cost to the fund of $10.7 billion. Of course IndyMac was heavily reliant on one of the largest real estate bubble economies here in California. But with only $13.6 billion (estimate, could be lower) the fund would be virtually exhausted with one more IndyMac size failure. The FDIC already has its hands full trying to deal with the public-private investment program that will put them in the business of putting out non-recourse loans for the U.S. Treasury’s toxic asset program. The fund initially will have $500 billion in loans to make available. Of course, this program is still in the works and is a major rip off to taxpayers. If the majority of the public understood the details of the program, they would be out in the streets protesting right now.
With approximately $13.6 billion left in the Deposit Insurance Fund (DIF), the FDIC realizes that it will be emptied out in 2009. That is why they have been lobbying for more money to be allocated to the actual fund. They’ve won concessions such as raising the deposit limit to $250,000 per individual account. Much of this was probably spurred by the failure of IndyMac where many clients had over $100,000 in accounts. The government didn’t want anymore photo ops of people standing in lines outside of banks ala the Great Depression in 2008.
The FDIC with their 4th quarter report of 2008, stated that FDIC-insured institutions reported a net loss of $32.1 billion which was the first quarterly loss since 1990.
Even though we all know that most of the nation’s banking is in a monopoly with the 19 large banks, there is still trillions not owned by these big banks.
Here is the data:
-The FDIC insures more than $4.7 trillion in deposits
-8,300 U.S. Banks and thrifts
-In 75-year history, not one penny in insured deposits has been lost
-4,900 person staff (and growing)
Now of course, the operative word is with insured deposits. So if you put your money in a mutual fund with Bank of America, that money isn’t protected from the shellacking the market took in the last year so make sure you know what is covered and what isn’t. There is all the reason to believe that the 8,300 banks and thrifts are going to see continued pain in 2009. In fact, troubled loans keep on increasing:
And of course, the DIF is facing a declining amount which is putting pressure on the coverage ratio:
The bottom line with the FDIC is that the Deposit Insurance Fund will be exhausted in 2009. The fact that the FDIC will be intimately involved in making non-recourse loans with the public-private investment program tells us this agency is where much of the money is going to be floating through. It is time for the FDIC to gear up and make sure that one government agency does their due diligence and protects taxpayer’s money. It is our last line of financial defense at this point.
Our Congressional and Maryland Assembly pols have been busy passing laws to make sure the American people are forced to have their wealth directly deposited into banks at every turn so like immigrant workers not wanting banks accounts but to send their earnings home----many corporations hiring immigrant labor are getting these workers banked as a requirement for employment. Now, one may buy the sales pitch of this process being cheaper and safer---BUT THIS IS NOT WHY THEY ARE DOING THIS.
Congress passed laws that allow Wall Street to confiscate our bank accounts when TOO BIG TO FAIL is threatened ergo, this coming economic crash. Now, some people will take out their money and place it under a mattress----BUT NOT AMERICANS ATTACHED TO DIRECT DEPOSIT OR THESE PRE-PAID CARDS. These funds will continue to be deposited as the bank is saying it needs to confiscate accounts to SAVE THE WALL STREET BANKS FROM THEIR FRAUD AND COLLAPSE.
This will effect everyone as we see even STOCK AND DIVIDEND PAYMENTS are tied to direct deposit but it will hit the poor and seniors hardest as they are usually the ones on Social Security and/or Disability. When the economic crash comes we will hear Congress PRETENDING ANOTHER AUSTERITY IS NEEDED BECAUSE OF THE $20 TRILLION IN NATIONAL DEBT and be sure they have a MOCK BATTLE over closing the government and US Treasury to stop payment of our SOCIAL SECURITY AND DISABILITY CHECKS. So, first we won't be able to access SS and Disability and then they will place a hold on payment in response to this $20 trillion debt.
WHO WAS RESPONSIBLE FOR PREVENTING THIS SUBPRIMING OF OUR US TREASURY? OBAMA AND OUR CONGRESSIONAL POLS. WHO PASSED THE LAWS ALLOWING THE SUBPRIMING? OBAMA AND OUR CONGRESSIONAL POLS.
U.S. Treasury Requires Electronic Federal Benefit Payments
If you still receive a paper check for your Social Security or other federal benefit payments, you are out of compliance with the law. The Treasury Department requires federal benefit payments to be made electronically.
Do I Have to Sign Up for Direct Deposit to Receive Social Security Disability Benefits?
If you filed a claim for disability benefits on or after May 1, 2011, the Social Security Administration (SSA) requires that you receive your monthly disability payments electronically. This is true regardless of whether you are receiving payments through Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI).
Stockholders may have their dividend checks deposited directly into their bank accounts via electronic fund transfer. The funds will be available on the payment date.
Eliminating Paper Paychecks:
Best Practices for
Implementing a Successful, Compliant Electronic Payroll Distribution Program
While many employers are embracing electronic payroll distribution systems (EPDS), a poor implementation strategy can threaten the successful migration to electronic payroll. With good planning and adherence to best practices, you can ensure success in your move to electronic payroll.
Director, Product Management
Product Use and Compliance | Payor Practices
First Data Prepaid Solutions
© 2013 First Data Corporation. All trademarks, service marks and trade names referenced in this material are the property of their respective owners.
firstdata.com ©2013 First Data Corporation. All rights reserved. 2
Best Practices for Implementing an Electronic Payroll Distribution Program A First Data White Paper
Most employers today recognize the value of electronic payroll distribution.
Paper paychecks are costly to process and distribute, and a small percentage of paychecks
invariably have problems that require administrative resources to sort out. For instance, paper
paychecks can be easily lost or stolen. Sometimes, paychecks end up at the wrong location on
pay day. And occasionally, employees simply fail to pick them up. When an employee does not
pick up a paycheck—even a paycheck for a very small amount—employers are required to fulfill an
escheatment procedure, which is a cumbersome process that transfers unclaimed paycheck funds
to the state.
Companies today usually offer their employees Direct Deposit as an option. Employees who accept this method of payment will
see the money due to them each pay period electronically transferred to their bank account. This is a lower cost, more secure
way for employers to distribute payroll, and employees like it because it saves them from going to the bank to deposit or cash
a paycheck. Creating a “NACHA file” to process direct deposits through the ACH System is much easier and more efficient than
administering paper checks.
However, even companies that offer this payment option cannot entirely avoid dealing with paper paychecks. Some employees
do not opt for Direct Deposit. In some cases, they simply prefer paper checks, but in many cases—particularly in businesses that
rely on low-paid service workers, hourly workers or transient workers—many of these employees do not have bank accounts or
any formal banking relationship. In fact, according to the FDIC, 8.2 percent of U.S. households are “unbanked,” and another 20.1
percent of U.S. households are “underbanked.” As much as employers would like to get away from issuing paper paychecks, there
always seem to be some workers who receive their pay in this way.
There is, however, a widely available alternative to company-issued paper paychecks that works even for employees who do not
have bank accounts. Known as Electronic Payroll Distribution Systems, or EPDS, these systems involve the use of two innovations
in payroll distribution:
• the payroll debit card, or “paycard,” which works just like a bank debit card; and
• the “convenience check,” which is a paper paycheck that is self-issued by the employee, not the employer.
Underlying these innovations is a “Prepaid Access” (formerly known as “Stored Value”) account, with the paycard and/or the
convenience check as devices to access the funds in the account. Once the EPDS is implemented, paying employees becomes
as simple as Direct Deposit because the accounts that underlie these innovations have routing and account numbers, so they can
easily be added to the employer’s NACHA file.
Today, “paycard” programs are very popular within the U.S. payroll marketplace, and a proliferation of providers has developed to
satisfy market demand. However, in a legal and regulatory landscape as complex as that which they face, U.S. employers are wise to
remember three important tenets: “Buyer Beware,” “The Devil is in the Details” and “What Seems Too Good to be True Usually Is.”
'First-loss and Tranche-loss Credit Default Swaps
Similar to a first-to-default or an nth-to-default credit default swap, a first-loss credit default swap (FLCDS) protects its buyer from losses of a reference asset pool as a result of credit events'.
Below you see why FDR separated investment banking from deposit banking and you see why CLINTON/BUSH/OBAMA broke Glass Steagall-----
Wall Street banks will not only have their wealthy depositors it protect with that small amount of FDIC----it has to protect the wealthy investment firms and hedge funds tied to all that US Treasury and municipal bond debt covered by CREDIT DEFAULT SWAPS. This is what Baltimore's bonds are tied to---whether the school building bonds, the state center bonds, the public housing building bonds.....
Of course those private 'partners' in all these bond deals are covered with credit default swap insurance and of course our city, state, and Federal revenue and our public school buildings are NOT INSURED. The reason they leave the public totally uncovered is that they need all that public revenue to be sent to cover the CREDIT DEFAULT SWAPS----the first tranches are the wealthy investors.
This not only takes our government funding in partnerships---it will take our pensions and 401Ks because they are often not insured with credit default swaps unless they are tied to the affluent. Again, those losses to our pensions and 401Ks are what pay for the credit default swap insurance payment to the affluent to protect losses against their retirement trusts and 401Ks.
Community banks are not generally involved with all these COMPLEX FINANCIAL INSTRUMENTS ----the ones that are generally are the community banks that fail bringing the rest with them. No one knows better that all private and public pensions are being targeted then national labor union leaders, our state and local treasurers and comptrollers tasked with protecting them.
OBAMA AND OUR CONGRESSIONAL POLS ACTUALLY SAT AROUND A TABLE TO FIGURE OUT HOW TO DO THIS----WELL, ACTUALLY WALL STREET WROTE THE POLICIES AND OUR POLS JUST PASSED THEM.
'To meet the needs of investors with different appetites for risk, the loss severity of the credit pool is divided into several levels, called tranches. Each tranche has a notional. If a credit event occurs in the reference credit pool, the lost notional minus the recovered amount will be subtracted from the tranches. The tranche with the lowest rank takes the first loss of the pool. Other tranches can tolerate certain degrees of loss and will suffer loss when all its subordinate tranches have suffered full losses'.
Some first time public policy citizens may find this difficult to understand but if you Google these terms you may find something that presents this in easier terms.
First-loss and Tranche-loss Credit Default Swaps
Similar to a first-to-default or an nth-to-default credit default swap, a first-loss credit default swap (FLCDS) protects its buyer from losses of a reference asset pool as a result of credit events. The buyer of an FLCDS is compensated when a reference asset incurs a credit event. In return the buyer pays premiums periodically, in a lump sum, or in both forms, until a termination condition has been met.
Unlike a first-to-default credit default swap, in which only the loss from the first credit event is compensated, or an nth-to-default credit default swap, in which the losses from the nth default or the first n defaults are compensated, an FLCDS compensates its buyer for any losses from credit events of the reference assets up to a certain portion of the total notional of the asset pool. In the former, the maximum number of defaults is defined and known beforehand but the maximum loss amount is, in general, unclear, while in the latter the maximum loss amount is clearly defined and known beforehand but the maximum number of credit events is, in general, unknown. Another important difference is that, in the former, the premium leg notional remains constant until the contract terminates, while in the latter the premium notional varies, and amortizes when a loss of the pool occurs or when an asset matures.
A more general form of a first-loss credit default swap is a basket-linked credit default swap, where the buyer is protected from a range of cumulative losses of a reference pool. For example, a 5-10% credit default swap compensates a buyer from any losses that exceeds 5% of the initial total notional of the pool, and the maximum compensation is:
is the initial notional of the pool.
Such a generalized first-loss credit default swap is referred to as a tranche-loss (or a layer-loss) credit default swap (STCDS) in this document and other FINCAD products.
An important class of first loss or tranche loss credit default swaps is the so-called standardized tranche credit default swaps. Here the reference asset pool is a collection of credits, typically names of investment grade companies, and each credit has the same amount of notional and the same recovery rate. To meet the needs of investors with different appetites for risk, the loss severity of the credit pool is divided into several levels, called tranches. Each tranche has a notional. If a credit event occurs in the reference credit pool, the lost notional minus the recovered amount will be subtracted from the tranches. The tranche with the lowest rank takes the first loss of the pool. Other tranches can tolerate certain degrees of loss and will suffer loss when all its subordinate tranches have suffered full losses. The level of subordination of a tranche is often called an attachment point. The maximum loss, as a portion of the total pool notional that will result in the full loss of the notional of a tranche, is called a detachment point. The detachment point of a tranche is the attachment point of the tranche with the next higher ranking. For an example, a tranche with an attachment point of 4% and a detachment point of 10% will not suffer any loss if the accumulated loss of the pool is no more than 4%, and any loss that is more than 4% will eat into this tranche until all of its notional is gone. Since the notional and the recovery of each credit in the tranche are the same, similar to the nth-to-default swap, the attachment and detachment points can be expressed in numbers of defaults, although these numbers can be decimal.
The complete math document is available in the FINCAD Analytics Suite products. To find out more information about FINCAD products and services, contact a FINCAD Representative
Remember, CLINTON/BUSH/OBAMA are far-right neo-liberals and neo-cons creating this massive debt while social Democrats created policy to regulate banks so this would not happen. Republicans are creating this massive debt---Obama is the top gun that should stop it but Republicans are pushing these debts under the guise of needing to replace losses from the 2008 economic crash.
All of that US Treasury debt sold all over the world as subprimed toxic bond debt will have those 1% around the world with credit default swap insurance while their citizens lose their investments as US citizens are. That is a lot of global 1% for American taxpayers to cover but as this article shows---it gives the far-right reasons to sell all that is public---from national parks, to all our roads and railways, to any power plants, all public transportation, public housing, public libraries, our public trusts like Social Security and Medicare.....even our Baltimore City Hall building.This is the goal of the Bernanke FED/Wall STreet/Obama and global pols several years of policy.
THIS WILL ALSO BE THE TRIGGER FOR THE IMF AND WORLD BANK TO COME TO SECURE THOSE US TREASURY DEBT TIED TO THE RICH. MOST OF THE TREASURY DEBT ATTRIBUTED TO CHINA AND INDIA ET AL ARE SIMPLY GLOBAL HEDGE FUNDS HEADQUARTERED IN THOSE DEVELOPING NATIONS DRIVING THIS FRAUD. THEY WILL BE PAID CASH, REAL ESTATE, OR BUILDINGS.
This is the bill of goods our local Wall Street Baltimore Development 'labor and justice' organizations and pols brought out the poor for all that bond debt in our election bond referenda.
The Federal Budget Crunch
When The U.S. Paid Off The Entire National Debt (And Why It Didn't Last)
April 15, 201110:15 AM ET
Commentary heard on Morning Edition
On Jan. 8, 1835, all the big political names in Washington gathered to celebrate what President Andrew Jackson had just accomplished. A senator rose to make the big announcement: "Gentlemen ... the national debt ... is PAID."
That was the one time in U.S. history when the country was debt free. It lasted exactly one year.
By 1837, the country would be in panic and headed into a massive depression. We'll get to that, but first let's figure out how Andrew Jackson did the impossible.
It helps to remember that debt was always a choice for America. After the revolution, the founding fathers debated whether or not to just wipe clean all those financial promises made during the war.
Deciding to default "would have ruined our credit and would have left the economy on a very agricultural, subsistence basis," says Robert E. Wright, a professor at Augustana College in South Dakota.
So the U.S. agreed early on to consolidate the debts of all the states — $75 million.
During the good times, the country tried to pay down the debt. Then there would be another war, and the debt would go up again. The politicians never liked the debt.
"What the battle was really about was how quickly to pay off the national debt, not whether to pay it off or not," Wright says.
But, just like today, it wasn't easy for politicians to slash spending — until Andrew Jackson came along.
"For Andrew Jackson, politics was very personal," says H.W. Brands, an Andrew Jackson biographer at the University of Texas. "He hated not just the federal debt. He hated debt at all."
Before he was president, Jackson was a land speculator in Tennessee. He learned to hate debt when a land deal went bad and left him with massive debt and some worthless paper notes.
So when Jackson ran for president, he knew his enemy: banks and the national debt. He called it the national curse. People ate it up.
In Jackson's mind, debt was "a moral failing," Brands says. "And the idea you could somehow acquire stuff through debt almost seemed like black magic."
So Jackson decided to pay off the debt.
To do that, he took advantage of a huge real-estate bubble that was raging in the Western U.S. The federal government owned a lot of Western land — and Jackson started selling it off.
He was also ruthless on the budget. He blocked every spending bill he could.
"He vetoed, for example, programs to build national highways," Brands says. "He considered these to be unconstitutional in the first place, but bad policy in the second place."
When Jackson took office, the national debt was about $58 million. Six years later, it was all gone. Paid off. And the government was actually running a surplus, taking in more money than it was spending.
That created a new problem: What to do with all that surplus money?
Jackson had already killed off the national bank (which he hated more than debt). So he couldn't put the money there. He decided to divide the money among the states.
But, according to economic historian John Steele Gordon, the party didn't last for long.
The state banks went a little crazy. They were printing massive amounts of money. The land bubble was out of control.
Andrew Jackson tried to slow everything down by requiring that all government land sales needed to be done with gold or silver. Bad idea.
"It was a huge crash, and the beginning of the longest depression in American history," Gordon says. "It actually lasted six years before the economy began to grow again."
During the depression, the government started borrowing money again.
No one says that paying off the debt caused the depression. The bubble was going to pop sometime. But the result was that we had to kiss a debt-free U.S. goodbye. The country never came close again.
While the FED and Wall Street are the ones writing all these financial policies tied to the boom and bust and fraud----it is our pols passing all the laws allowing this. Then, it is the Development Corporations in US cities deemed International Economic Zones often controlled by IVY LEAGUE universities like the ones below that bring out their 'labor and justice' organizations to push the fraud on citizens in our cities. The CREDIT DEFAULT SWAP TRANCHES where the first tranche is assured full insurance payment includes the rich, hedge funds, global investment firms, and these IVY LEAGUE UNIVERSITY ENDOWMENTS. When Johns Hopkins through its Baltimore Development Corporation pushes these COMPLEX FINANCIAL INSTRUMENTS as our economic engine----it will be the beneficiary of the Wall Street bailouts as the next institution insuring all these credit default swaps spins off the assets before going bankrupt. IVY LEAGUE endowments were attached to HighStar----that was the AIG spin-off from the subprime mortgage fraud. Baltimore and Maryland were the hardest hit with this fraud so the endowments could soar. Now comes this bond fraud.
Johns Hopkins has not only a credit union but no doubt alumni and executives are tied to these high-value stocks to global investment firms. So, as they push the fraud that ends with main street losing all their pensions, 401Ks, retirements, homes----their investments are the ones covered through insurance against losses. These are the 5% to the 1% that will probably see that happen again in this bond crash---but then they are on their own as Wall Street then comes after that 5% of wealth next decade.
I want to say this about endowments. These are called 'universities' given a non-profit status but they all are really global corporations paying no taxes and we need to change this. Also, Notre Dame was Reagan's alma mater and Reagan is the extreme wealth and empire neo-liberal placing this dismantling of our US first world quality of life in full swing. Here we see Notre Dame as having the largest of endowments and they DO PROFIT FROM ALL THIS FRAUD. The Panama Papers showed our Loyola University with Hopkins tied to a casino mogul for goodness sake acting illegally. These are the times of our religious leaders partnered with the 1% against the very members/citizens they should be protecting and they often are doing it illegally and corruptly. We must get rid of the 5% to the 1% religious leaders working to enrich the 1%.
As I said last post, the goal of global Wall Street and global corporations will be through consolidation of all industries in the US to have even regional corporations enfolded into global corporations while small businesses are pushed into bankruptcy. Each time a regional corporation goes into bankruptcy it sheds the debt to smaller contractors which then pushes them into bankruptcy followed by global corporations gobbling them all up. This ultra-global monopoly is what US International Economic Zones will include and they will not be public listings on the stock market---IPOs ----they will be privately owned by the 2%. We need all the Wall Street players----to WAKE UP and join the 99% in protests to reverse these policy goals!
These endowments are soaring from the frauds against our government coffers and people's pockets----don't believe that any one of these universities makes sure they are divested from this.
10 Universities With the Largest Endowments
The endowment at each of these schools topped $8 billion.
By Delece Smith-Barrow | Reporter Oct. 6, 2015, at 10:00 a.m.
At the end of fiscal year 2014, Harvard University's endowment was about $36 billion – more than any other ranked school that reported data to U.S. News. (Tiffany Knight)
The U.S. News Short List, separate from our overall rankings, is a regular series that magnifies individual data points in hopes of providing students and parents a way to find which undergraduate or graduate programs excel or have room to grow in specific areas. Be sure to explore The Short List: College, The Short List: Grad School and The Short List: Online Programs to find data that matter to you in your college or graduate school search.
When a school has a large endowment – a fund of donated money that the institution invests – it can generate more cash for everyone on campus.
Professors may get higher salaries, and students – in some cases – may get lower tuition and fees. Endowment spending can also go toward classroom technology, research, maintaining campus buildings and other perks that help a college or university give students a quality education.
As the country bounces back from a recession, school endowments are growing. Among 832 institutions, endowments returned an average of 15.5 percent for the 2014 fiscal year after subtracting fees, compared with 11.7 percent for the 2013 fiscal year, according to the NACUBO-Commonfund Study of Endowments.
Some universities are in a league of their own when it comes to the size of their endowments. Harvard University's endowment was $36,429,256,000 at the end of fiscal year 2014. It had the largest endowment among 1,140 ranked institutions that submitted data to U.S. News in an annual survey.
[Find out which National Universities are the most innovative.]
The amount is almost $4 billion more than Harvard's endowment at the end of fiscal year 2013, when it also topped the list of 10 schools with the largest endowments.
Princeton University increased its endowment by roughly $2 billion, but it fell to No. 4 on the list. It had the third-largest endowment at the end of fiscal year 2013.
Among the 10 schools with the largest endowments for 2014, the average endowment was $16.2 billion.
[Learn which schools offer the best value when it comes to paying for a college education.]
The University of Nebraska—Kearney had the smallest endowment among all schools: $65,712. UNK is a Regional University in the Midwest; the 10 schools with the largest endowments are National Universities.
National Universities offer a range of degree programs at the undergraduate, master's and doctoral levels and are committed to doing groundbreaking research.
Below is a list of the 10 universities with the most money in their endowments at the end of fiscal year 2014. Endowments were examined by campus, not across public university systems. Unranked schools, which did not meet certain criteria required by U.S. News to be numerically ranked, were not considered for this report.
School name (state)End of fiscal year 2014 endowmentU.S. News rank and categoryHarvard University (MA)$36,429,256,0002, National Universities
Yale University (CT)$23,858,561,0003, National Universities
Stanford University (CA)$21,466,006,0004 (tie), National Universities
Princeton University (NJ)$20,576,361,0001, National Universities
Massachusetts Institute of Technology$12,425,131,0007, National Universities
Texas A&M University—College Station$10,521,034,49270 (tie), National Universities
University of Michigan—Ann Arbor$9,603,919,00029, National Universities
University of Pennsylvania$9,582,335,0009, National Universities
Columbia University (NY)$9,223,047,0004 (tie), National Universities
University of Notre Dame (IN)$8,189,096,00018 (tie), National Universities
U.S. News surveyed nearly 1,800 colleges and universities for our 2015 survey of undergraduate programs. Schools self-reported myriad data regarding their academic programs and the makeup of their student body, among other areas, making U.S. News' data the most accurate and detailed collection of college facts and figures of its kind. While U.S. News uses much of this survey data to rank schools for our annual Best Colleges rankings, the data can also be useful when examined on a smaller scale. U.S. News will now produce lists of data, separate from the overall rankings, meant to provide students and parents a means to find which schools excel, or have room to grow, in specific areas that are important to them. While the data come from the schools themselves, these lists are not related to, and have no influence over, U.S. News' rankings of Best Colleges, Best Graduate Schools or Best Online Programs. The endowment data above are correct as of Oct. 6, 2015.