Screwing The Taxpayer, 600,000 At A Time in [Market-Ticker]

Posted 2012-09-20 14:41
by Karl Denninger
in Corruption

Screwing The Taxpayer, 600,000 At A Time

Wall Street lobbyists are awesome. I’m beginning to develop a begrudging respect not just for their body of work as a whole, but also for their sense of humor. They always go right to the edge of outrageous, and then wittily take one baby-step beyond it. And they did so again last night, with the passage of a new House bill (HR 2827), which rolls back a portion of Dodd-Frank designed to protect cities and towns from the next Jefferson County disaster.

If you remember Jefferson County wasn't just about a bad deal. Oh no, it included bribery (for real) as well, and several people went to prison. None of them, of course, were banksters.

The people got butt-sexed too, to the tune of a 400% increase in their sewer bill, and even though criminal conduct was later proved in relationship to these deals the bills remain.

That is, the people continue to get hosed to this very day.

So it should not be surprising that on a bi-partisan basis Congress passed HR 2827 yesterday.

And, if you read it (the bill is mercifully short) you will find that it specifically exempts from fiduciary responsibility....

`(i) any broker, dealer, or municipal securities dealer (or person associated with such broker, dealer or municipal securities dealer);
`(ii) any investment adviser registered under the Investment Advisers Act of 1940 or with a State or territory of the United States (or person associated with such an investment adviser);
`(iii) any commodity trading advisor, swap dealer, major swap participant, futures commission merchant or introducing broker registered under the Commodity Exchange Act (or person associated with a commodity trading advisor, swap dealer, major swap participant, futures commission merchant or introducing broker) who is providing advice related to, engaging in, or arranging any swap;
`(iv) any security-based swap dealer or major security-based swap participant registered under the Securities Exchange Act of 1934 (or any person associated with a security-based swap dealer or major security-based swap participant) who is providing advice related to, engaging in, or arranging any security-based swap;
`(v) any attorney offering legal advice or providing services that are of a traditional legal nature;
`(vi) any engineer providing engineering advice;
`(vii) any financial institution or person associated with a financial institution; or
`(viii) any elected or appointed member of a governing body of a municipal entity, with respect to such member's role on the governing body;'.

Got it?

So if you're any of those people then you have no fiduciary responsibility to the governmental unit or the taxpayers who fund it for the advice you render, even though the entire reason they would otherwise contract with you in the first place is for your expertise and advice to keep from making a mistake!

In other words, the short version is that these so-called "advisors" can provide advice that has no relationship to protecting the best interest of the taxpayers at all, or could even provide advice intentionally adverse to the interest of those taxpayers -- like, for instance, to benefit their financial institution instead and intentionally hose you, the common man.

Yeah.

Why don't we just call this The Pigmen **** The Taxpayer Act of 2012?

Oh, and as for blaming either Democrat or Republican for this? It passed on a voice vote -- that is, by simple majority of both parties without a demand for a recorded, public vote count.

So in point of fact all 435 members of The House voted to allow banksters to screw you with impunity any time they'd like.

Now where, oh where, are the politicians, including the Libertarian Party, on this issue?

They support and in fact vote for banksters screwing you.

Discussion below (registration required to post)

Main Navigation

Full-Text Search & Archives

Archive Access

Blogtalk 3:30 CT Mondays

Items To Look At

Discuss The Capital Markets along with daily technical analysis with our Gold Donor program.

Where We Are, Where We're Heading (2013) - The annual 2013 Ticker

Links and Blogroll

Our policy on reciprocal links: Send us an email with your information and why you think your blog or news site would make a good addition - in most cases reciprocal link requests will be granted.

Legal Disclaimer

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.

The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

Looking for "The Best of Market Ticker"? Check out Ticker Classics.

Visit the forum to discuss this and other investing-related topics; see the FAQ on the forum for information about Gold Donor status including access to our technical analysis video server.

Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.

The Market Ticker content may be reproduced or excerpted online for non-commercial purposes provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media or for commercial use.

Submissions may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.

Leads on stories of current economic and political interest are always welcome. Our fax tip line is 850-897-9364; please include contact information with your transmission.

User Info	Screwing The Taxpayer, 600,000 At A Time in forum [Market-Ticker]
Lumpeninvestor Posts: 2341 Incept: 2007-10-16 98072, USSA	I'm sure that if we carefully reviewed the CSPAN footage of the voice vote, we would see many of them feign speaking BOTH Yeah AND Nay, such that it could never be proven which one had any vocal chord activity. Or maybe I'm overly cynical? ---------- Distributing insolvency only destroys the last remaining islands of solvency in a bankrupt world. - Charles Hugh Smith 8/23/2012 2012-09-20 14:46:24 Permalink
Vitchilo Posts: 4618 Incept: 2011-04-27	Every single time I think they've pushed the enveloppe to new lows, they surprise me. The lows these ***s will go is bottomless. ---------- "Every normal man must be tempted at times to spit upon his hands, hoist the black flag, and begin slitting throats." -- H.L. Mencken 2012-09-20 14:54:06 Permalink*
Iamedwardteach Posts: 793 Incept: 2011-09-18	Wish I could say that this surprises me, but I just cant. There is not a single honest Politian left. When voting for the lesser of two evils makes no difference because they are one and the same evil. I fear there is no way to have the peoples voice heard any longer. Jefferson county we aint. ---------- "FACT: WHEN THE DRAFT OF YOUR VESSEL EXCEEDS THE DEPTH OF THE WATER, YOU ARE MOST ASSUREDLY... AGROUND!" 2012-09-20 14:54:33 Permalink
Fraudster Posts: 4175 Incept: 2011-05-10	That is how you can know that they KNEW they were screwing the American people, a voice vote. Lawlessness reigns in this land. And the idiots here and elsewhere think that voting for Ofailure or Mittens is going to make one stitch of difference. ---------- *"Let China sleep, for when she wakes, she will shake the world."* - Napoleon Bonaparte *"Circulation ceases first at the outer edges [Europe and Japan]. It will take a while yet for the decay to reach the heart [America]."* - Foundation & Empire by Isaac Asimov 2012-09-20 14:58:24 Permalink
Jtemp Posts: 31 Incept: 2008-07-06	How about a voice vote from the forum for some banker baseball? 2012-09-20 14:58:30 From PDA Permalink
Mrbill Posts: 7857 Incept: 2008-10-19 North Carolina Online	So, in reading, it certainly smells fishy, but I just want to make sure before I rage. Wouldn't some of these people have fiduciary responsibility above and beyond their dealings with a municipality? Such as: "(ii) any investment adviser registered under the Investment Advisers Act of 1940 or with a State or territory of the United States (or person associated with such an investment adviser);" Isn't a registered investment adviser already responsible for their advice? Doesn't this just exempt them from any extra paper work around advising a municipality? 2012-09-20 15:03:29 Permalink
Gamma Posts: 5579 Incept: 2008-01-20 Northern CA Online	The PFTA act, I love it!! [The Pigmen **** The Taxpayer Act of 2012} Perhaps we can mnemonic it as POOFTA? ---------- This stuff we're going through, this is nothing compared to the Middle Ages. They told me if I voted for John McCain, an idiot would be a heartbeat away from the presidency. Sure enough... 2012-09-20 15:05:11 Permalink
Mdm Posts: 333 Incept: 2010-10-13 South Florida	So basically, all of the people that would have a fiduciary responsibility to the municipality under common law without Dodd-Frank now no longer do. Wonderful. What is the point in hiring an attorney if there is no fiduciary duty or an engineer or any of these people? These people are changing the rules on a daily basis. Why would anyone in their right mind invest any effort or money in starting a business in this environment. But I forgot, if the government just spends a little bit more borrowed money, then the jobs will magically start coming back. 2012-09-20 15:05:55 Permalink
Northeaster Posts: 68 Incept: 2011-05-13 Massachusetts	Just sent a tirade filled letter to my "Representative". Of course I know it will go straight in to the trash, I felt better for about an HFT nanosecond. A Plutocracy running this country with impunity, how quaint. 2012-09-20 15:10:04 Permalink
Mrbill Posts: 7857 Incept: 2008-10-19 North Carolina Online	To possibly answer my own question, but I"m still not confident: Quote: Another excuse given for the massive exemptions in HR 2827 is that exempted entities, such as banks and broker-dealers, already are regulated under other laws. However, these other regulatory regimes are not intended or designed to protect the interests of public entities and taxpayers when providing advice in structuring municipal transactions. For instance, banking regulation is mainly designed to protect the stability and solvency of the bank, not to protect customers from fraud. None of these other regulatory regimes create a fiduciary duty to taxpayers, which is so vital in the case of providing financial advice to municipalities. http://ourfinancialsecurity.org/blogs/wp.... 2012-09-20 15:11:15 Permalink
Frat Posts: 1935 Incept: 2009-07-15 NKY	Got lead? ---------- We're ***ed. Where's Henry Bowman when you need him? 2012-09-20 15:14:25 From PDA* Permalink
Blattdorf Posts: 20 Incept: 2011-03-06 Warsaw	You can bet the mass media vanguard won't bother to mention this little tidbit of news. Honestly, the only major outlet I could conceivably count on is The Daily Show, which saddens me immensely. 2012-09-20 15:15:13 Permalink
Lowbeyond Posts: 16921 Incept: 2008-02-11 CO aka West NJ/East CA Online	law is the law suckers Until you just stop complying and stop fellating and apologizing for the police state enforcers you get what they say you shall have. its in the official bound book after all if you stop acting like the law is some sort of sacred document that is the expression of society's will and preference - or some other bull**** - like they brainwashed you to believe in grade school, it becomes much easier. the funny thing is, it is not small, it is in fact a big club. Millions of members. But even at its immense size, you are still not part of it. PS dont forget to: ---------- Maybe it was a birdy bread-bomber from the future?! 2012-09-20 15:15:24 Permalink
Donethat Posts: 771 Incept: 2009-04-22	Watch out for those rotating screwing devices... pigmen indeed. 2012-09-20 15:15:41 Permalink
Vitchilo Posts: 4618 Incept: 2011-04-27	They should pass those exemptions to doctors, engineers, teachers, arms manufacturers, etc... if anything fails, it's not their fault! If a bridge falls, not anyone's fault. If a building collapses, not anyone's fault. If the doctor kills you because he was drunk on the job, not his fault! If the ammo you use in your tanks doesn't work, blow up in your face, not their fault! If 90% of the kids in a teacher class fail, not the teacher's fault! Yeah I'm sure society will end up great with this kind of mindset... Personal responsability is soooooo terroristic! ---------- "Every normal man must be tempted at times to spit upon his hands, hoist the black flag, and begin slitting throats." -- H.L. Mencken Last modified: 2012-09-20 15:16:14 by vitchilo 2012-09-20 15:15:45 Permalink
Genesis Posts: 130773 Incept: 2007-06-26	MrBill -- read the bill! It SPECIFICALLY EXEMPTS all of those people under Dodd-Frank. ---------- I don't care* if it makes sense -- only if it makes money. -- Me* Bank (n): See scam, fraud and theft. *Eat a bankster -- they're low-carb.* *What part of "shall not be infringed" was unclear?* 2012-09-20 15:28:30 Permalink
Mrbill Posts: 7857 Incept: 2008-10-19 North Carolina Online	Oi. I just looked, here's the "second sentence" that was struck (you can't find this in the bill itself). Here it is from the actual current law: Quote: A municipal advisor and any person associated with such municipal advisor shall be deemed to have a fiduciary duty to any municipal entity for whom such municipal advisor acts as a municipal advisor, and no municipal advisor may engage in any act, practice, or course of business which is not consistent with a municipal advisors fiduciary duty or that is in contravention of any rule of the Board. Gone! So, unless something else deems them to have fiduciary responsibility, then they're entirely off the hook. If the link I posted above is right, then nothing else deems them (which is why it went into Dodd-Frank, I presume). The looting continues. Last modified: 2012-09-20 15:32:58 by mrbill 2012-09-20 15:32:09 Permalink
Aztrader Posts: 6650 Incept: 2007-09-10 Scottsdale, AZ	Another day in the twlight zone. Congress has the balls to pass such dribble into an election. I just found my rep as a co-sponsor. Time for an email to this prick. 2012-09-20 15:36:18 Permalink
Mdm Posts: 333 Incept: 2010-10-13 South Florida	Quote: So, unless something else deems them to have fiduciary responsibility, then they're entirely off the hook. Or they can just argue Federal preemption and they may be entirely off the hook regardless. 2012-09-20 15:38:40 Permalink
Jackl Posts: 2237 Incept: 2008-01-17	Yet again. Financial industry and government in cahoots to screw the common man?! NEVER COULD HAVE SEEN THIS COMING/etc Stop voting. Just stop. 2012-09-20 15:39:31 Permalink
Rdaniels Posts: 444 Incept: 2007-11-30 Purgatory	Aren't elected and nominated municipal officials the ones properly tasked with fiduciary duty of the People? ---------- I wouldn't be so pessimistic if it wasn't so hopeless. 2012-09-20 15:39:58 Permalink
Mpilar Posts: 5607 Incept: 2009-01-05 Nashville, TN Online	Quote: Congress has the balls to pass such dribble into an election. Of course they do...they know very well, their jobs will be validated come Nov 6th. I do admit to being a little surprised at how blatant they've become lately in their actions...they appear to care less and less what the people think...guess what? They're right...nobody gives a ***, because nobody will do anything about it. ---------- Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats. H. L. Mencken 2012-09-20 15:40:28 Permalink*
2dogs Posts: 2941 Incept: 2009-03-25 Land of the Lost	No one will do a damn thing about it. ---------- You can't defeat the combined effects of massive voter fraud, the Free ** Army, and the entire bought and paid for media complex. This nation is done.** 2012-09-20 15:40:57 Permalink
Jackl Posts: 2237 Incept: 2008-01-17	Dear three letter agencies, I am not condoning, or advocating the following statement. Merely stating my honest opinion of current events. Nothing will stop until blood is spilled. Outside of a local level is a large game of chess played with hidden agendas, old favors, and super bribery funds. The idea you can influence it via public opinion is absurd. 2012-09-20 15:44:55 Permalink

Quote:

Quote:

Quote:

Quote: