Bank of America

Democratic National Committee Taps Crony Corporations

Obama InvescoAs Democrats struggle to raise funds to coronate President Obama as nominee in Charlotte, N.C. this September, the role of two crony corporations increases daily.

Bloomberg reported yesterday that the president’s re-election organization will consider moving his acceptance speech at the Democrat National Convention to Bank of America Stadium.

Should Duke Energy Shareholders Be Nervous About DNC Loan Guarantee?

Jim Rogers and windmill photoIn March NLPC reported that Duke Energy guaranteed a $10 million loan to the Democratic National Committee to host its 2012 convention in Charlotte, NC – the utility’s hometown. Now Duke CEO James Rogers – who heads the fundraising effort as co-chair of the DNC host committee for the convention – is silent about how much money has been brought in so far.

Obama Mortgage Borrower Bailout Prevents Foreclosures, Slows Recovery

housing chartThe mortgage foreclosure crisis in this country may have been superseded by events in Japan, Libya and elsewhere for now, but in its own way it's taking a heavy toll. And it's likely to get worse, given the context of evidence that an Obama-initiated homeowner subsidy program to stem the tide isn't working and of a new federal agency poised to extract $20 billion from lenders on behalf of heavily delinquent borrowers.

Duke Energy CEO Rogers Plays Politics With Shareholder Money; $10M Credit Line for Democrats

Jim Rogers/windmill photoWell, the second-largest banking city in the nation won the rights to host the Democratic National Convention in 2012, so you think the big TARP beneficiaries based in Charlotte might be the ones to step up to guarantee the funds for DNC to do its thing. You know, maybe Bank of America, which is the largest financial institution by assets in the country. Or Wachovia, now Wells Fargo, which has a lot of civic pride and survived thanks to the government intervention.

Bailed-Out Bank of America Bails Out Democrats With Loans

Bank of America logoPajamas Media reports today:

Shortly after Labor Day, as polls continued to sink, the Democratic National Committee (DNC) realized it needed a cash infusion for the upcoming midterm elections. Its chairman, former Virginia Governor Tim Kaine, turned to the Bank of America to secure a $15 million revolving credit line. Then, in the middle of this month, the Democratic Congressional Campaign Committee (DCCC) got another loan from BofA for an additional $17 million.

The loans might be illegal. A key question is whether adequate collateral was posted for the loans. The DNC says it pledged its donor mailing list but:

Why Government Shouldn't Block Home Foreclosures

foreclosure photoIf one word best summarizes the current housing market, "foreclosure" would be it. Despite record-low interest rates, American homeowners are losing their properties with greater frequency than at any time since the Great Depression. Yet banks and other financial institutions, until very recently on track to seize 1.2 million homes this year, are facing growing pressure to impose "voluntary" nationwide moratoria on foreclosure repossessions and sales. If they don't do the job themselves, say critics, government should do it. Several major lenders in fact have ceased property seizures in the wake of widespread revelations of foreclosures lacking proper documentation. The calls for action are understandable. Yet a moratorium, rather than restore integrity to our financial system, would further imperil it.

Did Green ShoreBank Escape Bankruptcy Because of Politics?

Shorebank logoIt's been a week since the Federal Deposit Insurance Corporation swept away ShoreBank's bad assets (cost: $367.7 million), changed its name to Urban Partnership Bank, and left it largely in the hands of the same people (and investors) who ran it before. Since then there have been several articles that called the process and new arrangement "unusual." I guess institutions loved by two presidents call for special treatment.

FDIC Seizes ShoreBank; Installs Management in New Bank

Shorebank logoOn Friday the Federal Deposit Insurance Corporation momentarily took over politically-connected ShoreBank, just long enough to relieve it of some of its woes and then turn it back over to the same people to continue its same failed mission. According to a press release, the FDIC Deposit Insurance Fund will take a $367.7 million hit in the transaction.

ShoreBank President Uses Saul Alinsky Playbook

Rules for RadicalsLast week the Chicago Tribune reported that Illinois Finance Authority chairman Bill Brandt threatened “a firestorm” in the Windy City if the Federal Reserve did not follow through with a bailout of South Side-based ShoreBank. This followed some reported pressure applied by the Obama Administration on companies like Goldman Sachs, Citigroup, GE Capital, Bank of America, and Chase, who were asked to kick in $20 million each to make politically-backed community lender appear eligible to receive TARP funds. 

Turns out the preference for Chicago-type coercion goes right to the top (and the origins) of the troubled bank itself.

SEIU's Stern Leaves Troubled Legacy

Andrew SternAlmost everyone connected to organized labor by now has heard the news: Andrew Stern soon will resign as president of the Service Employees International Union. His departure in all likelihood will be permanent. And, if somewhat muted, so will the edgy aggression of the union he redefined. Stern made the announcement on April 14 at an SEIU executive board meeting, confirming a flurry of rumors emanating from an internal e-mail sent by Seattle SEIU local leader Diane Sosne. Stern subsequently e-mailed his own members: "There's a time to learn, a time to lead, and then there's a time to leave. And shortly, it will be my time to retire...and end my SEIU journey." The date of departure, though unspecified, will be within a month. Better political instincts suggest Stern will find plenty of ways to keep himself busy.

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