by Greg Palast – Exclusive for EcoWatch.org Friday, 20. April, 2012
Evidence now implicates top BP executives as well as its partners Chevron and Exxon and the Bush Administration in the deadly cover-up ”“ which included falsifying a report to the Securities Exchange Commission.
Yesterday, Ecowatch.org revealed that, in September 2008, nearly two years before the Deepwater Horizon explosion in the Gulf of Mexico, another BP rig had blown out in the Caspian Sea”“”“which BP concealed from U.S. regulators and Congress.
Had BP, Chevron, Exxon or the Bush State Department revealed the facts of the earlier blow-out, it is likely that the Deepwater Horizon disaster would have been prevented.
Days after the Deepwater Horizon blow-out, a message came in to our offices …more
This past Sunday, a deputation from Occupy Wall Street crossed the bridge from Manhattan and brought its protest to the Brooklyn residence of one of New York’s “vultures” This type of vulture doesn’t roost in a tree, but in a swish brownstone.
“Top funders of the Republican Party have demanded that two African nations pay them over half a billion dollars…. Is one of these vulture’s claims based on a stolen security, criminally transferred to an American financier called ‘Goldfinger’? Greg Palast, author of the new book, Vultures’ Picnic, investigates for BBC Television and The Guardian.”
Greg Palast reporting from Kinshasa, Congo; Sarajevo, Bosnia; and Brooklyn, New York
If God doesn’t give a rat’s ass about The Vulture, and what he does for a living, and what he’s done for Africa, why should I?
The thought struck me while sitting here, coffee getting cold, in my old Toyota, trying to look invisible, staked out in front of 300 Dekalb Avenue. It’s just after dawn here in Brooklyn, New York, and I’m hoping that Peter Grossman, a Wall Street star, will pop out of his posh brownstone for a jog or a cup of joe. Then I can jump him. He’s on the look-out for me because I’d already jumped his crony, Goldfinger, the man who’s making Grossman stunningly rich.
Grossman’s riches, nearly $100 million for his firm, FG Management, come from the Congo. I was just there in Congo, two days before this stake-out, at a cholera quarantine center in the capital, Kinshasa.
Besides lots of cholera, Congo has lots of cobalt. Grossman has, through a crazy legal loophole in British law, waylaid a payment of $80 million to the African government for a shipment of cobalt from a government-owned mine.
Grossman is a “vulture,” the name Wall Street gives, …more
Greece’s economy blew apart because a bunch of olive-spitting, ouzo-guzzling, lazy-ass Greeks refuse to put in a full day’s work, retire while they’re still teenagers, pocket pensions fit for a pasha; and they’ve gone on a social-services spending spree using borrowed money. Now that the bill has come due and the Greeks have to pay with higher taxes and cuts in their big fat welfare state, they run riot, screaming in the streets, busting windows and burning banks.
I don’t buy it. I don’t buy it because of the document in my hand marked, “RESTRICTED DISTRIBUTION.”
I’ll cut to the indictment: Greece is a crime scene. The people are victims of a fraud, a scam, a hustle and a flim-flam. And”“”“cover the children’s ears when I say this”“”“a bank named Goldman Sachs is holding the smoking gun.
In 2002, Goldman Sachs secretly bought up â‚¬2.3 billion in Greek government debt, converted it all into yen and dollars, then immediately sold it back to Greece.
Goldman took a huge loss on the trade.
Is Goldman that stupid?
Goldman is stupid””like a fox. The deal was a con, with Goldman making up a phony-baloney exchange rate for the transaction. Why?
Goldman had cut a secret deal with the Greek government in power then. Their game: to conceal a massive budget deficit. Goldman’s fake loss was the Greek government’s fake gain.
Goldman would get repayment of its “loss” from the government at loan-shark rates.
The point is, through this crazy and costly legerdemain, Greece’s right-wing free-market government was able to pretend its deficits never exceeded 3 percent of GDP.
Cool. Fraudulent but cool.
But flim-flam isn’t cheap these days: On top of murderous interest payments, Goldman charged the Greeks over a quarter billion dollars in fees.
When the new Socialist government of George Papandreou came into office, they opened up the books and Goldman’s bats flew out. Investors’ went berserk, demanding monster interest rates to lend more money to roll over this debt.
Greece’s panicked bondholders rushed to buy insurance against the nation going bankrupt. The price of the bond-bust insurance, called a credit default swap (or CDS), also shot through the roof. Who made a big pile selling the CDS insurance? Goldman.
And those rotting bags of CDS’s sold by Goldman and others? Didn’t they know they were handing their customers gold-painted turds?
That’s Goldman’s specialty. In 2007, at the same time banks were selling suspect CDS’s and CDOs (packaged sub-prime mortgage securities), Goldman held a “net short” position against these securities. That is, Goldman was betting their financial “products” would end up in the toilet. Goldman picked up another half a billion dollars on their “net short” scam.
But, instead of cuffing Goldman’s CEO Lloyd Blankfein and parading him in a cage through the streets of Athens, we have the victims of the frauds, the Greek people, blamed. Blamed and soaked for the cost of it. The “spread” on Greek bonds (the term used for the risk premium paid on Greece’s corrupted debt) has now risen to ”” get ready for this”“”“$14,000 per family per year.
Euro-nation, the secret Geithner memo, and the Ecuador connection
Why did the Greek government throw its nation’s fate into Goldman’s greasy hands? What the heck was in the “RESTRICTED” document? And why did I have to take it to Geneva, to throw it down in front of the Director-General of the WTO for authentication, a creepy French banker I otherwise wouldn’t bother to spit on, and then tear off to Quito to share it with the grateful President of Ecuador?
To give you all the answers would require me to write a book. I have: Vultures’ Picnic”“”“in Pursuit of Petroleum Pigs, Power Pirates and High-Finance Fraudsters.
It’s really quite important to me that you read it, that you get it now. That’s a funny statement, I suppose, from an author. But if you’ve been reading my stories in The Guardian or watching my reports on BBC Newsnight, you’ve gotten the facts; but I really want to let you inside the investigations, to cross the continents with me and follow down the leads so that you can get a full picture of The Beasts. The Beasts and their trophy wives, intelligence agency go-fers, political concubines and bone-breakers. And besides, it’s enormous fun when it’s not scary as sh*t.
Here’s a taste of Chapter 12 – The Generalissimo of Globalization – from the film-enhanced eBook edition. [And more on the 1% Greece-ing us, check out the upcoming issue of In These Times.]
Note: I will be in Chicago for In These Times on November 29, part of our 15 city tour that begins this coming Sunday, November 13, in Portland, then moves to San Francisco, LA, San Diego, Denver, Boulder, New Mexico, Albuquerque, Chicago, Madison, New York, DC, Houston, Burlington, and Atlanta. Find out more info here.
Greg Palast is the author of Vultures’ Picnic: In Pursuit of Petroleum Pigs, Power Pirates and High-Finance Carnivores.
Get it now! For more information about Palast’s brand new book and his book-signing events in your city, go to www.VulturesPicnic.org
After some tense discussion (Penguin was partly owned by Gaddafi, so you can imagine…), my publisher has given me the unusual right to give all my readers, for no charge, the entire first chapter of my new book Vultures’ Picnic. Even if you don’t get the book, I really want you to read the first chapter.
Never before, in my decades as an investigator, have I taken you with me undercover, on the hunt into the lives, secret files, shopping bags and back rooms of the cruel and whacky One Percent. And, for the first time, I’ve decided to let you in on Greg Palast, to open up my life and the inside of my operation, without censorship or BS.
Exclusive for The Guardian by Greg Palast, the author of Vultures’ Picnic: In Pursuit of Petroleum Pigs, Power Pirates, and High-Finance Carnivores. With Arun Gupta, founding editor of The Occupied Wall Street Journal.
Greg Palast reports from Occupied Wall Street for Democracy Now!
[Zuccotti Park, Wall Street, New York.]
Mega-bank Goldman Sachs (assets $933bn), has declared war on one of the smallest banks in New York (assets $30m), the customer-owned community bank that happens to also be the banker for Friends of Liberty Plaza, Inc, also known as Occupy Wall Street. And you thought Goldman didn’t care.
The trouble began three weeks ago when the occupiers suddenly found their donation buckets filling with thousands of dollars, way more than needed for their pizza dinners. Suddenly, the anti-bank protesters needed a bank. Citibank and Chase certainly wouldn’t fit. So OWS opened an account at the not-for-profit Lower East Side Peoples Federal Credit Union. Peoples has a unique federal charter ”“ designated to open accounts for low-income folk from all over NewYork, available to those families earning less than $38,000 per year. (Disclosure: the CEO of the Peoples bank is my dearly beloved ex. But that’s another story.)
Goldman Sachs had also joined up with the Peoples bank. Goldman partners reportedly earn a bit more than $38k per annum, yet Goldman’s association so far was limited to giving the credit union $5,000 toward the little bank’s 25th anniversary celebration dinner. Goldman’s largesse was acknowledged on the dinner invites ”“ along with the night’s honoree: Occupy Wall Street.
When a Goldman exec saw its gilded name next to Occupy Wall Street, …more
It was quite upsetting to find our President blindfolded and tied to a chair at the GOP Tea Party headquarters, but I’m sure the $2.2 trillion ransom we paid to the hostage-takers is worth it.
Well, now that the Obama presidency is over, we can move on to more serious matters.
Look out your window. What you’ll see is that, while the debt-ceiling hostage crisis played out on cable TV, the planet has been burning down.
You haven’t heard a lot from me this year””because the normally-noisy Palast investigations team has chosen to spend these months quietly digging into unreported cases of economic and environmental arson. It will all hit the presses and TV when we launch a new book and films later this year.
Now that I’ve dispensed with the obvious and obnoxious teaser headline, let’s drop the towel and expose Dominique Strauss-Kahn’s history of arrogant abuse. The truth is, the grandee of the IMF has molested Africans for years.
On Wednesday, the New York Times ran five ”“ count’em, FIVE ”“ stories on Strauss-Kahn, Director-General of the International Monetary Fund. According to the Paper of Record, the charges against “DSK,” as he’s known in France, are in “contradiction” to his “charm” and “accomplishments” at the IMF.
Au contraire, mes chers lecteurs.
Director-General DSK’s cruelty, arrogance and impunity toward African and other nations as generalissimo of the IMF is right in line with the story told by the poor, African hotel housekeeper in New York City.
Let’s consider how the housekeeper from Guinea ended up here in New York. In 2002, this single mother was granted asylum. What drove her here?
We’ve stuffed the bird and nailed it to the wall: Today, the British Parliament effectively banned financial vulture funds from the British Isles. The law, merely awaits the expected touch of the Queen’s scepter.
“Vulture funds” are international re-po men who buy up old debt of the world’s poorest nations for pennies on the dollar, then sue for ten to a hundred times what they paid for these old loans. The new UK law, passed unanimously, would would bar financiers from using UK courts to collect more than the sums authorized by the International Monetary Fund. In effect, this stops American predators – such as financiers Eric Hermann, Michael Straus, and Michael Francis “Goldfinger” Sheehan, from siphoning tens of millions of dollars of aid money the US and UK treasuries had earmarked for Liberia, Zambia, Congo and other desperately poor countries.
The first vote in the House of Commons to ban vultures took place on February 26, the day after BBC broadcast our investigation of Vulture Eric Hermann (see it here), but maneuvers by a Conservative MP appeared to have de-railed the law.
In the US Congress, Congresswoman Maxine Waters is sponsoring the Stop VULTURE Funds Act H.R. 2932), whose passage may have to wait upon the election of a Democrat to the White House.
For the original story, see Stop Feeding the Vultures in In These Times.
Ellen Johnson Sirleaf, the president of Liberia, is urging MPs to back a bill banning vulture funds from using British courts to prey on poor countries when it comes to a vote on Friday. Liberia lost a $20m (£13m) case in London last year against two so-called vultures. Such funds buy up the loans of poor governments, wait for them to win from the international community, and then use courts to pursue the countries for assets.
Sirleaf said: “We’ve been waiting for a parliament or an assembly to take this kind of hard decision. I hope the US Congress and maybe some others in Europe will pick up this gauntlet and will follow the example of Britain.”
An investigation for BBC’s Newsnight, to be broadcast tonight, has uncovered allegations that speculators subverted the international debt relief process for Liberia, in an attempt to gain more money from its government and international donors than 97% of its other creditors accepted.
This article appears in the December 21 edition of The Nation
You could call him the Generalissimo of Globalization. The World Trade Organization’s director general, Pascal Lamy, was a bit defensive, wanting to assure us that the WTO “wasn’t created as a dark club of multinationals secretly cooking plots against the people. We do things in the open. Look at our website.”
It’s been a year since globalized finance brought the planet to its knees, yet here in Geneva, where in late November the WTO opened its grand “seventh ministerial,” the diplomats are in denial. One confidential document from the files of WTO members–definitely not on the WTO website–tells us that despite financial and environmental crises, the globalizers still want to party like it’s 1999. …more
on 10th Anniversary of the Battle in Seattle Bankers’ scheme to re-open finance casino worldwide
GENEVA ”” Apparently, one meltdown isn’t enough for the World Trade Organization. They meet today in Geneva on the tenth anniversary of the “Battle in Seattle,” when tens of thousands of people from around the world protested the organization’s practices.
A special investigation for Air America’s Ring of Fire. Listen to the report here or watch the 9-minute film here. …more
I still get a thrill whenever I get my hands on a confidential memo with “The White House, Washington” appearing on the letterhead. Even when””like the one I’m looking at now””it’s about a snoozy topic: This week’s G-20 summit.
But the letter’s content shook me awake, and may keep me up the rest of the night.
The 6-page letter from the White House, dated September 3, was sent to the 20 heads of state that will meet this Thursday in Pittsburgh. After some initial diplo-blather, our President’s “sherpa” for the summit, Michael Froman, does a little victory dance, announcing that the recession has been defeated. “Global equity markets have risen 35 percent since the end of March,” writes Froman. In other words, the stock market is up and all’s well. …more
Yesterday, Steven Rattner was forced to resign as Obama’s “Car Czar” – awaiting possible prosecution for bribery.
6 weeks ago, we identified Rattner as the man who designed the GM bankruptcy to benefit his banker buddies at the expense of auto workers.
Good riddance to Stevie the Rat and here’s why…
Screw the autoworkers. They may be crying about General Motors’ bankruptcy today. But dumping 40,000 of the last 60,000 union jobs into a mass grave won’t spoil Jamie Dimon’s day.
Dimon is the CEO of JP Morgan Chase bank. While GM workers are losing their retirement health benefits, their jobs, their life savings; while shareholders are getting zilch and many creditors getting hosed, a few privileged GM lenders ”“ led by Morgan and Citibank ”“ expect to get back 100% of their loans to GM, a stunning $6 billion.
The way these banks are getting their $6 billion bonanza is stone cold illegal.
I smell a rat.
Stevie the Rat, to be precise. Steven Rattner, Barack Obama’s ‘Car Czar’ – the man who essentially ordered GM into bankruptcy this morning.
When a company goes bankrupt, everyone takes a hit: fair or not, workers lose some contract wages, stockholders get wiped out and creditors get fragments of what’s left. That’s the law. What workers don’t lose are their pensions (including old-age health funds) already taken from their wages and held in their name.
But not this time. Stevie the Rat has a different plan for GM: grab the pension funds to pay off Morgan and Citi.
There’s an easy way to find oil. Go to some remote and gorgeous natural sanctuary, say Alaska or the Amazon, find some Indians, then drill down under them.
If the indigenous folk complain, well, just shoo-them away. Shoo-ing methods include: bulldozers, bullets, crooked politicians and fake land sales.
But be aware. Lately the Natives are shoo-ing back. Last week, indigenous Peruvians seized an oil pumping station, grabbed the nine policemen guarding it and, say reports, executed them. This followed the government’s murder of more than a dozen rainforest residents who had protested the seizure of their property for oil drilling.
Again and again I see it in my line of work of investigating fraud. Here are a few pit-stops on the oily trail of tears:
In the 1980s, Charles Koch was found to have pilfered about $3 worth of crude from Stanlee Ann Mattingly’s oil tank in Oklahoma. …more
Former UK ministers and MPs from all UK parties are set to back a bill later on Wednesday outlawing the activities of vulture funds, hedge funds which divert debt relief from the poorest countries into their own pockets.
Vulture funds have been condemned by governments around the world as perverse and immoral for preying on the world’s poor.
Developed countries including Britain and the US have spent billions of pounds trying to relieve the debts of the world’s poorest nations so that they can spend that money on health and education.
The vulture fund speculators effectively divert that debt relief to themselves by buying debt for pennies in the pound just as it is about to be written off, and then suing in British or US courts for the full value plus interest.
In 2007, Newsnight exposed the activities of Donegal International which bought a tranche of Zambia’s debt for $3m and then sued for $55m – the size of Zambia’s health budget.
Reporter Greg Palast doorstepped Donegal’s boss Michael “Goldfinger” Sheehan who styles himself after the James Bond villain.