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richc

If You Need More Evidence That Central Banks Are Corrupt

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Wonder which will be teaching the other more about death spiral financing.

Scum well suited to each other.

Edited by onlyme2

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In what way is it corrupt? Serious question to those above who clearly believe it is.

Bernanke told the New York Times that he was sensitive to public anxiety about the "revolving door" between Wall Street and Washington.

He chose Citadel, in part, because the fund is not regulated by the Federal Reserve and his role would not involve any lobbying. Bernanke told the newspaper that he had declined offers from banks.

Chicago-based Citadel, founded in 1990, is a multi-strategy hedge fund and ranks as one of the industry's biggest. Bernanke will receive an annual fee, which he did not disclose, but will neither own a stake nor receive a bonus based on the fund's performance.

If anyone needed yet more evidence they're obviously not looking in the right places

Evidence of what exactly? Yes please, Id like more evidence of whatever it is cause youre obviously looking in the right places.

Edited by R K

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Bernanke told the New York Times that he was sensitive to public anxiety about the "revolving door" between Wall Street and Washington.

"Sensitive" but not that sensitive so he's going to do it at any rate.

He chose Citadel, in part, because the fund is not regulated by the Federal Reserve and his role would not involve any lobbying. Bernanke told the newspaper that he had declined offers from banks.

$25 billion not regulated.

Mind you there's less money involved than with the house price advice on the bbc.

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I mention this from time to time, as it got relatively little exposure in the uk media, but the swiss central bank governor resigned in 2012 because of insider trading (ok, nothing was proven, apparently in the "banker of the year 2011" family, the wife (an art gallery owner) handles all the finace and investment decisions,

Cleared of any wrongdoing by KPMG, subsequently appointed as a fellow at oxford, presumably to teach ethics to future generations of bankers

http://en.wikipedia.org/wiki/Philipp_Hildebrand

Edited by Steppenpig

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"Sensitive" but not that sensitive so he's going to do it at any rate.

$25 billion not regulated.

Mind you there's less money involved than with the house price advice on the bbc.

The GFC was largely a consequence of a failure to regulate the activities of financial intermediaries in the shadow banking system. How appropriate is it for the former regulator-in-chief of US financial markets to take a position with one of the biggest benficiaries of that failure, namely the hedge fund Citadel? At best it suggests a lack of judgement. Even if evidence of wrongdoing is unforthcoming, it simply confirms our estimation of Bernanke's character and abilities.

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As thick as thieves, the lot of them.

http://www.nytimes.com/2015/04/16/business/ben-bernanke-will-work-with-citadel-a-hedge-fund-as-an-adviser.html

Some of Wall Street’s richest firms, including private equity and hedge funds, are hiring former central bankers, policy makers and regulators for top positions as they seek to gain an edge in an increasingly competitive and challenging market.

Last year, Timothy F. Geithner, the former Treasury secretary, joined the private equity firm Warburg Pincus. William M. Daley, a former White House chief of staff, joined the Swiss hedge fund Argentière Capital as a managing partner. In 2013, David H. Petraeus, the retired four-star general and former director of the Central Intelligence Agency, joined the private equity firm Kohlberg Kravis Roberts as chairman of its KKR Global Institute.

David H. McCormick, a former under secretary of the Treasury for international affairs in the Bush administration, is now co-president of Bridgewater Associates, the world’s largest hedge fund, with $150 billion of assets under management.

“It is inevitable, if you are a bright, knowledgeable, battle-trained regulator or top-level player,” said Erik Gordon, a professor at the Ross School of Business of the University of Michigan. “It takes a really unusual public servant to be able to decline the siren song of making a lot of money.”

At a gathering at the Bellagio Hotel in Las Vegas last May, several hedge fund managers said they had attended dinners with Mr. Bernanke in the first months after he stepped down from the Fed.

“At those dinners he gave credence to the idea that the Fed believed in lower potential G.D.P. and lower potential inflation,” Mr. Novogratz told the audience of money managers. For many, that advice was well worth the cost of a seat at the time.

But one hedge fund manager missed out.

”He gave this stuff out,” Mr. Tepper said, “but I didn’t realize what he was saying at the time, so I didn’t do a great trade.”

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In what way is it corrupt? Serious question to those above who clearly believe it is.

Evidence of what exactly? Yes please, Id like more evidence of whatever it is cause youre obviously looking in the right places.

Citadel was down more than 50% in 2008 and was in a highly leveraged position, owing billions to the banks. If those banks either failed, or were forced to call their loans in order to bail themselves out, then Citadel would have collapsed. Instead, Bernanke had the taxpayers bail out those banks, and Citadel continued to rake in billions more.

At a very basic level, Bernanke is using state resources for private gain, which, by definition, is corruption.

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Citadel was down more than 50% in 2008 and was in a highly leveraged position, owing billions to the banks. If those banks either failed, or were forced to call their loans in order to bail themselves out, then Citadel would have collapsed. Instead, Bernanke had the taxpayers bail out those banks, and Citadel continued to rake in billions more.

At a very basic level, Bernanke is using state resources for private gain, which, by definition, is corruption.

Well on that basis taking a job anywhere in the economy that was rescued by not letting the financial system collapse would be corruption. Hardly evidence is it. He's an academic economist providing a view on the global economy. Since he patently couldn't even see that the housing market was a bubble, that the shadow banking system would collapse or that regulated firms had massive hidden off balance sivs full of cr4p, I'm not sure why anyone is remotely bothered that he's taking a fee of private investors stupid enough to give their money to a hedge fund which collapsed in 2008.

Maybe I'm missing something.....

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Well on that basis taking a job anywhere in the economy that was rescued by not letting the financial system collapse would be corruption. Hardly evidence is it. He's an academic economist providing a view on the global economy. Since he patently couldn't even see that the housing market was a bubble, that the shadow banking system would collapse or that regulated firms had massive hidden off balance sivs full of cr4p, I'm not sure why anyone is remotely bothered that he's taking a fee of private investors stupid enough to give their money to a hedge fund which collapsed in 2008.

Maybe I'm missing something.....

Wow, you're an amazingly deep thinker. Definitely the smartest guy in the room.

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Wow, you're an amazingly deep thinker. Definitely the smartest guy in the room.

Ad hom. Clearly you're not.

Look it's an ex-post survivorship bias thing isn't it. Who would you prefer he went to work for Lehman bros? Bear Sterns?

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Since he patently couldn't even see that the housing market was a bubble, that the shadow banking system would collapse or that regulated firms had massive hidden off balance sivs full of cr4p, I'm not sure why anyone is remotely bothered that he's taking a fee of private investors stupid enough to give their money to a hedge fund which collapsed in 2008.

Maybe I'm missing something.....

It's the same reason the bank JP Morgan employed that world-renowned banking expert Tony Blair.

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It's the same reason the bank JP Morgan employed that world-renowned banking expert Tony Blair.

That reminds me whatever happened to Gaddafi's $40bn wealth fund that was transferred to JPM just after tonys tent party in Libya

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Ad hom. Clearly you're not.

Look it's an ex-post survivorship bias thing isn't it. Who would you prefer he went to work for Lehman bros? Bear Sterns?

No, I'm serious. Your brilliantly insightful logic has made me change my mind. Bernanke's behaviour at the Fed wasn't affected by his future prospects in private industry at all. The man is a saint. Definitely.

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R.K.

Pick up pretty much any sleazy bank/hedge fund tactic and I bet Citadel have their finger in the till (or more accurately somebody else's pocket).

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Ad hom. Clearly you're not.

Look it's an ex-post survivorship bias thing isn't it. Who would you prefer he went to work for Lehman bros? Bear Sterns?

Kwik E Mart.

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No, I'm serious. Your brilliantly insightful logic has made me change my mind. Bernanke's behaviour at the Fed wasn't affected by his future prospects in private industry at all. The man is a saint. Definitely.

The system is rigged and those who rigged it pay handsomely to ensure it remains that way.

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No, I'm serious. Your brilliantly insightful logic has made me change my mind. Bernanke's behaviour at the Fed wasn't affected by his future prospects in private industry at all. The man is a saint. Definitely.

Citadel is not a place for saints.

You don't stay clean when you work at places where is so much power and money.

Bernanke is at least guilty for allowing corruption at Fed. There were a few cases where confidential information was leaked/used by people working at Fed and nothing has been done about this.

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Citadel is not a place for saints.

You don't stay clean when you work at places where is so much power and money.

Bernanke is at least guilty for allowing corruption at Fed. There were a few cases where confidential information was leaked/used by people working at Fed and nothing has been done about this.

Wonder what (and why) he's been refinancing his home - to speculate elsewhere? - buy other houses as investments or for family?

He yawns on like an average beaten-down younger productive civilian how market is against him lol.

Ben Bernanke ran the Federal Reserve and can't get a new mortgage. Can you?

Oct 2014

More Americans should be as eager to refinance as the former Federal Reserve chairman, but with a credit score of 735 needed for a conventional mortgage, it’s rough out there for homeowners

http://www.theguardian.com/money/us-money-blog/2014/oct/06/if-ben-bernanke-cant-refinance-his-mortgage-what-hope-for-the-rest-of-us

http://www.bloomberg.com/news/articles/2014-10-02/you-know-it-s-a-tough-market-when-ben-bernanke-can-t-refinance

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Wonder what (and why) he's been refinancing his home - to speculate elsewhere? - buy other houses as investments or for family?

He yawns on like an average beaten-down younger productive civilian how market is against him lol.

It's tough to make a living out of blogging so the Little Professor's doing a little fixed income trading on the side, just like the old days. :lol:

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Does this mean he'll be able to refinance his mortgage now?

http://www.ibtimes.com/ben-bernanke-has-money-troubles-mortgage-market-so-tight-i-cant-refinance-my-home-1698833

Homeowners who have lately been unable to refinance their home have an unlikely comrade in arms: former Federal Reserve Chairman Ben Bernanke. Speaking to Moody's Mark Zandi at a conference in Chicago Thursday, Bernanke said he recently tried refinancing his mortgage but was "unsuccessful in doing so."

Bernanke added that he thought lenders had "maybe gone a little too far" on mortgage credit conditions

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