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    September 2008        Copyright (c) TFG 1993-2008      Publisher: C. Franklyn II   

TIMELINE: T H E  S U B-P R I M E  M O R T G A G E  S C A N D A L!

You probably noticed that the real story of how the Financial Services Industry has brought down the U.S. Government has not been told well even by Secretary Paulson and FED Chief Bernanke.  No one wants you to know the WHOLE Truth! The Truth  is too complex, many believe. That is because it is such a complicated narrative that most American's couldn't sit still long enough to listen or read about it!  Are YOU or am I that dumb?

In the following, you will find the real TIMELINE as I have reconstructed it after considerable research. Most professionals on Wall Street who know the financial service industry's history know the details but they don't want too much known by the General Public -- especially not by those of us who are being forced to bailout the investment houses and banks who are the major players in this game of greed and risk-taking! Fewer than half of us pay taxes, right?

G E N E R A L

The broad picture of these events is hard to sketch for you but my first point is that this is a JEWISH EVENT of unbelievable scope. As you know when Bill Clinton became President and Congress changed hands from Democrats to Republican control in 1994, New York Jews rushed to rescue Bill and Hillary who they believed could be "possessed", providing them a great opportunity to do things that they had not been able to do before.

The Financial Services Industry had been waiting to take a bold step ever since the Carter Administration. Some financial wizards, like Sanford I. Weill, who had already become famous as the CEO for American Express, wanted to "take-down" part of the Glass-Steagall Act of 1933, a law resulting from the 1929 Stock Market Crash. That Act, still on the books  in 1995, prevented community banks from going into the investment/securities business because by mingling all the financial services into one organization, the depositors in deposit banks could lose all their savings if the investment section of the bank became insolvent. Glass-Steagall, a firewall of great importance, prevented that. But in the mid-990s Wall Street's giant banks wanted to return to the pre-1929 days! A well-known Republican in the Senate obliged his buddies on Wall Street and removed the protections of Glass-Steagall in 1999!

Once a Boomer President was in The White House (Clinton,1993), New York multi- millionaire Sandy Weill, decided he was not going to wait any longer to force the government to get off the pot and kill the Glass-Steagall Act, once and for all! He brought about the merger of the Travelers Insurance Group and Citigroup, one of the oldest banks in the USA, creating a full-service financial giant he named CITICORP! It's influence soon stretched throughout the industrial world!

It was a clear and blatant violation of Glass-Steagall Act but with Clinton in TWH and many Republicans already favorable to the idea of a financial services industry, Clinton and the Democrats in Congress saw this change as a brilliant opportunity to open up the Community Reinvestment Act (Carter, 1977), a law that forced lenders to give home mortgages to Minorities with the same easy terms as people with excellent credit rating. Clinton's attitude was that if the Blacks defaulted, White Citizen taxpayers could foot the bill! (Thanks, Bubba!)

 Weill moved his chessman forward which put him in some legal difficulty--- maybe! Fortunately, there was a way to get a waiver to keep the new CITICORP merger operating for six months during which time Senator Phil Gramm, Economics professor from Texas, wrote the Gramm-Leach-Bliley Act  repealing that part of the Glass-Steagall Act that had erected a firewall between ordinary community banks and large investment banks like those found on Wall Street! This bold act by Sandy Weill, Polish-Jew, changed the world of banking and investment permitting one large organization to provide ALL the financial services that any person or company could ever want. It created a "one-stop shopping" super market, essentially like a supermarket that sells groceries etc.! It offered the efficiency of "bundling" on a world-wide scale!

As of 1998, in the turmoil of the Clinton second term, all these things transpired -- quietly and in stealth! The move brought every American who did business with a bank into being a guarantor of any and all debts that may be incurred if the investment banks ever failed! In 1996-97, Wall Street Lobbyists contributed more than $300 billion in political donations to induce Congress to kill Glass-Steagall thereby making CITICORP legitimate! The donation's created more millionaires in Congress -- on both sides of the aisle!. The GLB Act passed overwhelmingly by both parties -- called a "bipartisan thing" which Chuck Franklyn warned against frequently. In its original draft, the GLB Act tried to moderate the problems banks were having with Black Activists like ACORN is today, but the Democrats refused to support it until that part of the Community Reinvestment Act of 1977 was left intact. By 1999, Sandy Weill and Wall Street had outfoxed the Federal government simply by bribing all the heavyweights in Congress! Most of them are still there!

T I M E L I N E :-

1. 1929 Stock Market Crash

2. 1933 - Roosevelt orders Bank Moratorium -  banks were closed because many were no longer solvent. Major losses in 1929 Crash were responsible. 

3. 1933 - Glass-Steagall Act - prevents investment bank losses from being transferred to depositors in community or depositor banks.

4. 1956 - Bank Holding Act

5. 1977- Community Reinvestment Act (CRA)- confirms that minorities will have access to loans, etc as before the Gramm-Leach-Bliley Act (GLB). Democrats during the Clinton tenure fought against Senator Gramm's desire to reduce the pressures on banks by Minorities who wanted mortgages and other loans. Excessive troublemaking by Blacks especially was involved and minority loans were always high risk problems. This was the hottest contested issue in finally passing the GLB Act. This Community Reinvestment issue was used by Clinton and the Democrats to force banks to make home loans to Minority clients. The Sub-Prime Mortgage Crisis involves minority borrowers (75-80%)! (This is the major Law that over-Time has corrupted the home mortgage activity. Just as colleges and universities had to downgrade requirements for Black students, the CRA did the same thing to the standards for giving mortgage loans to Blacks!) The Democrats resorted to coercive tactics to harass banks to make loans to Minorities under increased, reckless loan practices!) This was the act that implemented the Sub-Prime Mortgage tactic launched by Clinton in FREDDIE & FANNIE, turning the home mortgage industry into a time bomb that would blow during the Bush Presidency!   

1999 - Gramm-Leach-Blilely Act (GLB) - created financial services industry and eliminates key protection provided by the Glass-Steagall Act. In 1999. This Act, that received broad, bipartisan approval, was passed after a compromise brokered by Senators Dodd and Schumer! Prior to these moves, Wall Street's investment banks made $300 billion in political donations to the 1996 Election Campaign which paved the way to induced both parties in Congress to change Glass-Steagall. The change removed the firewall protecting depositor banks from the investment bank failures, something that was enacted after the 1929 Stock Market Crash! 

2002 -  SARBANES-OXLEY ACT OF 2002 - Following a series of corporate failures like ENRON, it was revealed that during the Clinton Administration's overheated Economy, CEOs and CFOs had misrepresented their company's financial condition with the intent of selling more of its stocks and bonds. Annual  Reports were hyped with the approval of the heads of the firms plus their auditors, securities analysts, and others who knew about the fraud. Some companies had become insolvent, yet they continued to do business. Eventually, a whistleblower at ENRON called attention to the fraud leading to the revelation that the practice was widespread. This scandal was revealed not long after the the 9-11 Terrorist Attack in New York and Washington! It was one more tactic used by Clinton and his treasurer Rubin to overheat the Economy, Wall Street especially!  A new President, George Bush, was already dealing with a Recession that had begun during the Clinton Administration. This new Act gave the Securities Exchange Commission (SEC) more regulatory power over widespread lying brought about by the Baby Boomers who took control of the Nation when Bill Clinton and Al Gore arrived in Washington (1993).  It is generally true that the instigators of fraud in government have left Washington when someone leaks what has happened. This way, the incoming President and his Administration are saddled with cleaning up the damage! Example: the many moral and legal crimes like the Sub-Prime debacle. The American Citizen, with the help of the Democratic Party and the Jew-owned TV & Print MEDIA, has been convinced that everything bad is the fault of Bush and Cheney! Not exactly, Pilgrim!    

C O M M E N T

If you read the details on these Congressional Acts which became law, you will know the legislative background that contributed to changes that put U.S. depositors at risk of losing their assets as yet held by banks, insurance companies and securities or investment banks. Both major parties, accepted huge donations, which guaranteed regular depositor banks would become responsible to save Wall Street in event of failures, etc. This was a crime that should result in the impeachment and the removal of every member of Congress who was involved who knew about it and made no effort to "blow-the-whistle" on Congress!

A key problem has been the failure of FANNIE MAE and FREDDIE MAC, two Government Secured Enterprises (GSEs) whose management by the Clinton appointed CEOs (Jim A. Johnson and Franklin Raines) resulted in fraud that has forced both institutions into bankruptcy in 2006. Both are operating under a Conservatorship with new CEOs today. These failures are a key factor in the collapse of credit in the banking industry today!

This Crisis involves a series of bad decisions beginning with the Clinton Administration's policy of putting more Minorities and Poor into their own homes -- a goal that forced every firm in the buying of a home to lower requirements to get a loan approved! The use of "teaser" interest rates to induce high risk borrowers is a predatory practice that should be stopped!

All entities like the GSEs should be closed!

A firewall should exist between community depositor banks and the investment banks so ordinary depositors will not be forced to bailout millionaires on Wall Street! (Nov.15, 2011: has the firewall been restored by now? No one seems to know!)

Putting Poor people into their own homes which they cannot pay for was a reckless Liberal/Democrat/Socialist ideology. This shameful Crisis began with Clinton, Rubin and Gore bringing in their Boomer buddy Jim Johnson to run FANNIE MAE. Later, Franklin Raines, the first Black man to be CEO of a Fortune 500 company, became CEO of FANNIE MAE. He manipulated the Bonus Policy of that private institution so he could walk away with $90 Million in Bonus payments! In a later court settlement he was required to return $3 Million! The corruption that has led to the Sub-Prime Mortgage Crisis began at this point (Clinton/FANNIE)!

This TIMELINE can help you search further -- if you choose to do so!

In all, the events reported above provide a sorry story of White Collar Crimes resulting from a generational collapse in personal integrity in so far as honesty of corporate officers and political leadership is concerned. In spite of the laws passed following the 1929 Market Crash (which caused the Bank Failures and The Great Depression!), Congress under control of the Democratic Party for seventy years, never made truly effective oversight and regulation of the corporations and securities activity! They faked it! The reason was that Treasury Secretary Henry Morgenthau, the most influential Jew in the USA during the 1930s through 1960s, convinced Presidents and Congressional leaders that the Jews, who dominated the Wall Street banks, securities and monetary affairs in general, would "keep the industry honest, hence, rigorous controls were not necessary"! Morgenthau was a Zionist. While pretending to be a friend of Franklin Roosevelt, a typical Zionist Jew ploy, he used the President and his connections in Washington to advance the cause of Zionism's eventual control of the United States Central Government. He was a key contributor and activist at the Bretton Woods Conferences and throughout the creation of The United Nations Organization. Jew control of the Agenda at Bretton Woods and other similar "end-the-war" events such as Human Rights and other similar contentious issues were put in-place by Jew Intellectuals who later used these issues to force the USA foreign policymakers to do Israel's work for them.

No matter where you search, you will find Jews like Morgenthau deeply involved in ways that have poisoned and corrupted the business activity in the United States of America! We -- here today -- have inherited the wild winds that he and others like him set in motion a long time ago!  

Jay Quigham   9/25/08