Al-Qaeda deliberately targeted the 9/11 attacks at the backbone of the world's financial system in lower Manhattan, to cripple US and world banking. That totally didn't happen and, national emergency aside, the US's (and world's) financial systems kept operating as normal, with no runs on banks and the NYSE trading at normal volumes just a week later. With the destruction of the physical infrastructure of banking and telecommunications in lower Manhattan, Alan Greenspan stranded in Zurich, and no one having any idea what was going on, how did that happen
? Within 41 minutes, Federal Reserve Vice Chairman Roger Ferguson issued a short statement on Fedwire that the Fed fund transfer system was fully operational and the Fed would remain open until "an orderly closing could be achieved."
Within 3 hours, the Fed issued a short statement that "The Federal Reserve System is open and operating. The discount window is available to meet liquidity needs."
The financial system, the Fed declared, would not fail. [more inside]
posted by Eyebrows McGee
on Sep 14, 2014 -
Almost alone among developed nations, U.S. credit and debit cards have a magnetic stripe that contains all the financial information necessary to make a purchase. Once information gets stolen from a merchant, it can be encoded into a magnetic stripe and used with a new card. Smart cards in Europe and elsewhere encrypt that data and store it on a microchip, which is much tougher to replicate. More important, the cards also require a personal identification number (PIN) to work. This “chip-and-PIN” system introduces a second authentication, forcing thieves to have both pieces of information to successfully use the card. It’s a combination of advanced technology and simple common sense. - Your Credit Card Has a Dangerous Flaw That the Banks Refuse to Fix
posted by beisny
on Jan 17, 2014 -
"More than a million people
with interest-only mortgages face a financial crunch when they have to pay them off, a watchdog is warning.
Some 2.6 million UK householders have the mortgages but the Financial Conduct Authority said estimates suggested that nearly half would not have savings or other funds to cover the final bill.
The average shortfall is £71,000, according to FCA research."
posted by marienbad
on May 2, 2013 -
Mortgage fraud, faux-democracy and escrache in Spain.
Those unfortunate enough to lose their homes are also burdened with a debt for life.
Anatomy of an ‘escrache
Spanish banks repossessed 30,000
family homes in 2012 and those who take part
in doorstep protests may face fines of up to 6,000 euros in Madrid.
Between 2002 and 2008 an average of 754,000 new homes were built in Spain every year. It is currently estimated that up to 6 million homes remain vacant.
posted by adamvasco
on Apr 14, 2013 -
"Of the top 100 Swiss companies, 49 give shareholders a consulting vote on the pay of executives. A few other countries, including the United States and Germany, have introduced advisory "say on pay" votes in response to the anger over inequality and corporate excess that drove the Occupy Wall Street movement. Britain is also planning to implement rules in late 2013 that will give shareholders a binding vote on pay and "exit payments" at least every three years. Minder's initiative goes further
, forcing all listed companies to have binding votes on compensation for company managers and directors, and ban golden handshakes and parachutes. It would also ban bonus payments to managers if their companies are taken over, and impose severe penalties — including possible jail sentences and fines — for breaches of these new rules."
posted by vidur
on Jan 21, 2013 -
"We decided to go on an adventure through the financial statements of one bank
[Wells Fargo], to explore exactly what they do and do not show, and to gauge whether it is possible to make informed judgments about the risks the bank may be carrying. We chose a bank that is thought to be a conservative financial institution, and an exemplar of what a large modern bank should be."
posted by vidur
on Jan 14, 2013 -
'In 2002, five years before journalist Chauncey Bailey was murdered
by members of Your Black Muslim Bakery
a woman identified only as Jane Doe No. 1 stepped forward to report decades of sexual abuse, welfare fraud and violence by the bakery's leader, Yusuf Bey Sr. She was prepared to hand over to Oakland police DNA from her three children -- evidence that Bey had impregnated her, the first time when she was 12. This was a risky move, but the woman had powerful motivation: her daughter, then 18, had alerted her that Bey was trying to abuse her -- his own child. Now, Jane Doe No. 1 has decided she no longer wants to be nameless. Her name is Kowana Banks and she is the first of Bey's victims to speak publicly
.' Video interview
. Transcript. (Via) This post recounts experiences of rape and sexual abuse. Topics may be disturbing to some readers. [more inside]
posted by zarq
on Aug 9, 2012 -
In 2002, Brian Banks
was a sought-after high school football phenom
until he was accused of kidnapping and raping a female student. On the advice of his lawyers, he pleaded no contest and served 6 years in prison. Then his accuser recanted
. That's when the Innocence Project stepped in
to help exonerate
Brian Banks. CA Innocence Project filing here; informative if you skip right to the "Statement of Facts" part.
posted by lalex
on May 25, 2012 -
"I call it the destruction of shared prosperity hypothesis. ... [A]round 1980 the U.S. adopted a fundamentally flawed economic paradigm ... that abandoned full employment and severed the link between wages and productivity growth. ... Financial deregulation, regulatory forbearance, financial innovation, financial mania, and plain vanilla financial fraud kept the economy going by making ever more credit available, However, as the economy cannibalized itself by undercutting income distribution and accumulating debt, it needed ever larger speculative bubbles to grow. The house price bubble was simply the last and biggest bubble and was effectively the only way around the stagnation that would otherwise have developed in 2001." - an interview
with Thomas Palley
on the origins and prognosis for the crisis
posted by crayz
on Apr 18, 2012 -
One of the more conservative of the Fed's regional banks, the Dallas Federal Reserve, says "too-big-to-fail" banks must be broken up. Now. An interesting and important essay(pdf) from a most unlikely source.(via)
posted by AElfwine Evenstar
on Apr 2, 2012 -
— Using the 26 letters of the alphabet as the starting point, the curators selected a specific typeface that began with each respective letter to develop a 3d alphabet of alphabets. After thoroughly researching the history of each letter, they set out to represent each individual character graphically with elements of its history serving as the foundation. Arkitypo: letter rotations on Vimeo.
posted by netbros
on Feb 11, 2012 -
We Will Survive Capitalism!
flash mob with US Uncut [previously]
and the Brass Liberation Orchestra
Previous BLO flash mobs include Bad Hotel [previously], Operation Hey Mackey [previously], and "PAY UP!" (demanding Bank of America pay their taxes). Speaking of BofA, in San Francisco on Thursday activists turned every Bank of America ATM in the city into an Automated Truth Machine, using special non-adhesive stickers designed to look exactly like BoA’s ATM interface. But instead of checking and savings accounts, these new menus offered a list of everything BoA customers’ money is being used for, including investment in coal-fired power plants, foreclosure on Americans’ homes, bankrolling of climate change, and paying for fat executive bonuses. [more inside]
posted by finite
on Jan 15, 2012 -
Critics of the Occupy Wall Street movement have complained that the protestors have no clear goals, so WE DON'T MAKE DEMANDS
composed a list of 12 concrete, specific suggestions focusing on economic reform, stronger regulation, and closing loopholes.
posted by The Whelk
on Nov 30, 2011 -
Wajahat Ali, a solo practitioner from California, takes on Wells Fargo in an attempt to get his clients' home loan modified. Lots of ball dropping and passing of the buck ensues. He describes
the Kafka-esque nature of the experience.
posted by reenum
on Jun 20, 2010 -
"What happened here in Jefferson County would turn out to be the perfect metaphor for the peculiar alchemy of modern oligarchical capitalism: A mob of corrupt local officials and morally absent financiers got together to build a giant device that converted human shit into billions of dollars of profit for Wall Street" - "Looting Main Street
" Matt Taibbi takes an in-depth look into how finance, deregulation, corruption, synthetic rate swaps, and greed decimated Birmingham, AL. [more inside]
posted by The Whelk
on Apr 12, 2010 -
Today, while testifying for only the second time on Capitol Hill since the financial crisis began, [former Fed chairman] Alan Greenspan said the Fed closely monitored the subprime market
[...]"I was right 70% of the time, but I was wrong 30% of the time, and there were an awful lot of mistakes in 21 years..."
. But Greenspan's defense
of his record today rang hollow
to many seasoned observers
, if not downright deceitful
posted by HP LaserJet P10006
on Apr 7, 2010 -