March 2024 - cypherpunks - lists.cpunks.org

Billionaire Larry Fink of BlackRock, Which Grabbed Fed Bailouts in 2020-2021, Lectures Struggling Seniors on Making More Sacrifices
by Gunnar Larson 30 Mar '24

30 Mar '24

https://wallstreetonparade.com/2024/03/billionaire-larry-fink-of-blackrock-… By Pam Martens and Russ Martens: March 27, 2024 ~ Laurence (Larry) Fink, Chairman and CEO, BlackRock Laurence (Larry) Fink, Chairman and CEO, BlackRock Yesterday, billionaire Larry Fink, Chairman and CEO of the giant investment manager BlackRock, released his annual letter to shareholders. In it, Fink revives the same ole trope that billionaires Kenneth Langone and Stanley Druckenmiller were taking on a road show in 2013. Back then the billionaire propaganda was called: “Generational Theft: How Entitlement Spending is Stealing Opportunity from America’s Youth.” Every time there is talk of raising taxes on the super-rich, some of whom pay less in taxes than plumbers and teachers through a tricked-up tax dodge known as “carried interest,” the billionaires launch a concerted effort to scapegoat struggling seniors living on an average monthly Social Security retirement benefit of $1772.51. The inability of younger Americans to save enough for retirement couldn’t possibly have anything to do with Wall Street gobbling up two-thirds of lifetime retirement savings in fees, as Frontline documented back in 2013. The late John Bogle explained in the program that if a person works for 50 years and receives the typical long-term return of 7 percent on their 401(k) plan and Wall Street’s fees are 2 percent, almost two-thirds of their retirement account will go to Wall Street. Wall Street On Parade checked the math and documented it for our readers. The dramatic wealth and income inequality in the United States and the inability of young people to save enough to buy a home or build an adequate retirement account couldn’t possibly be because the “top 1% of American earners now control more wealth than the nation’s entire middle class,” according to federal data. We’ll take a hard look at what Fink is spewing out as retirement savings advice in a moment, but first a hard look at this man’s adoption of crony capitalism as a business model. In 2020 and 2021, as the Federal Reserve fashioned unprecedented bailout programs for Wall Street to address the economic downturn from the COVID-19 pandemic, Fink was engaging in numerous phone calls with Fed Chair Jerome Powell. That information comes from Powell’s publicly-released daily calendars. On March 1, 2021, there was a bizarre hour-long virtual meeting between Fink and the Board of Governors of the Federal Reserve and Fed staff. At the time of that strange virtual meeting, BlackRock was managing upwards of $11.6 million of Powell’s personal wealth in its iShares Exchange Traded Funds (ETFs) according to Powell’s financial disclosure form; BlackRock had received multiple no-bid contracts from the Fed to manage bailout programs during the pandemic; BlackRock had been allowed to buy up its own iShares ETFs to prop up their share prices under one of the Fed’s bailout programs; and it had a contract to manage hundreds of billions of dollars for more than five million federal government employees in their retirement plan, known as the Thrift Savings Plan (TSP). And the Fed was not the only central bank receiving direction from BlackRock during the pandemic bailouts. (See our report: BlackRock Authored the Bailout Plan Before There Was a Crisis – Now It’s Been Hired by three Central Banks to Implement the Plan.) And this was not the first time BlackRock had been tapped by the Fed to oversee unprecedented bailouts on Wall Street. During the Wall Street financial crisis of 2007 to 2010, the Federal Reserve gave BlackRock no-bid contracts to manage the toxic assets held in three programs known as Maiden Lane, Maiden Lane II and Maiden Lane III. These were Special Purpose Vehicles (SPVs) set up by the New York Fed. (See These Are the Banks that Own the New York Fed and Its Money Button.) Maiden Lane purchased $30 billion of toxic assets from Bear Stearns as an inducement by the New York Fed to get JPMorgan to purchase the good parts of Bear Stearns. Maiden Lane II purchased mortgage-backed securities from the giant insurer, AIG, as part of a program to bail out its securities lending to Wall Street banks. Maiden Lane III purchased collateralized debt obligations (CDOs) on which AIG Financial Products had written credit default swaps that it couldn’t make good on to the Wall Street and foreign global banks to whom it owed the money. (Thus, the AIG bailout was actually a bailout of mega banks.) BlackRock was also one of the investment managers for the Fed’s mortgage backed securities purchase program during the 2007-2010 financial crisis. It also advised the Fed on the $300 billion pool of assets of Citigroup that the Fed ring-fenced and guaranteed. Additionally, the Federal government turned to BlackRock to evaluate the toxic assets of Fannie Mae and Freddie Mac after the government seized the entities in 2008 to prevent their collapse. Fink’s letter to shareholders yesterday has been widely covered by mainstream media – without the above critical context. In the letter, Fink attempts to scapegoat struggling seniors as follows: “It’s no wonder younger generations, Millennials and Gen Z, are so economically anxious. They believe my generation — the Baby Boomers — have focused on their own financial well-being to the detriment of who comes next. And in the case of retirement, they’re right.” Fink also strongly hints that the Social Security retirement age to receive benefits needs to be increased. According to the U.S. Census Bureau, more than 50 percent of 18-24 year olds live at home with their parents in the United States. In many cases, the roof over that family’s head is possible because of Social Security retirement benefits. Social Security monthly retirement benefits come from the money that hard-working Americans paid into that program through their taxes over a lifetime of work. It’s not a tricked-up dodge like billionaires enjoy through “carried interest.” Fink also offers this preposterous analysis of the 2007 to 2010 Wall Street crash in the U.S.: “In Europe, where most assets were kept in banks, economies froze as banks were forced to shrink their balance sheets. Of course, U.S. banks had to tighten capital standards and pull back from lending as well. But because the U.S. had a more robust secondary pool of money – the capital markets — the nation was able to recover much more quickly.” Fink is brazenly attempting to rewrite Wall Street history. The capital markets in the U.S. were in free-fall; giant financial institutions were collapsing (Bear Stearns, Lehman Brothers, Citigroup, AIG, Fannie Mae, Freddie Mac, Washington Mutual and Wachovia to name a few). Internal emails released by the Financial Crisis Inquiry Commission showed that Morgan Stanley and Goldman Sachs were likely to be next. The capital markets did not save Wall Street. The secret and unprecedented $29 trillion money spigot from the Fed saved Wall Street and resuscitated the very villains who had brought on the financial crisis through unbridled greed and crony capitalism. It is nothing short of a disgrace that mainstream media is giving a platform to Fink to spew his propaganda.

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Video: Peter Thiel on CEO Salary
by Gunnar Larson 30 Mar '24

30 Mar '24

Peter Thiel on CEO Salary Video: https://www.instagram.com/reel/C5Dnh3bS8NA/?igsh=MWZhNHVpaGJpbTNseQ==

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Sen. Menendez Won't Delay May 6 Trial As He Forgoes Appeal
by Gunnar Larson 30 Mar '24

30 Mar '24

Sen. Menendez Won't Delay May 6 Trial As He Forgoes Appeal <https://www.law360.com/newyork/articles/1818939?nl_pk=ac5a3855-e47c-4403-be…> By Gina Kim Sen. Robert Menendez told a New York federal judge Thursday he won't seek interlocutory appeal of his order two weeks ago rejecting the lawmaker's bid to dismiss his bribery case based on the speech and debate clause of U.S. Constitution, teeing up his jury trial set for May 6. Letter attached | Read full article » <https://www.law360.com/newyork/articles/1818939?nl_pk=ac5a3855-e47c-4403-be…> | Save to favorites » <https://www.law360.com/newyork/articles/1818939?nl_pk=ac5a3855-e47c-4403-be…>

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Wells Fargo Sued Over Role In Texas Atty's Carbon Tech Scam
by Gunnar Larson 30 Mar '24

30 Mar '24

Wells Fargo Sued Over Role In Texas Atty's Carbon Tech Scam <https://www.law360.com/banking/articles/1818516?nl_pk=feb6bbba-7878-4d39-be…> By Peter McGuire Wells Fargo and an advisory group including an attorney and accountant from California facilitated a yearslong Ponzi scheme that deceived investors to put money into a fraudulent gas industry carbon capture technology venture, according to a proposed class action filed in Texas federal court. Complaint attached | Read full article » <https://www.law360.com/banking/articles/1818516?nl_pk=feb6bbba-7878-4d39-be…> | Save to favorites » <https://www.law360.com/banking/articles/1818516?nl_pk=feb6bbba-7878-4d39-be…>

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Intoxicating Hemp Products: It's High Time For Clarity
by Gunnar Larson 30 Mar '24

30 Mar '24

Intoxicating Hemp Products: It's High Time For Clarity <https://www.law360.com/health/articles/1818511?nl_pk=6422bbc2-a823-4be5-9a9…> Thanks to ambiguity in the 2018 Farm Bill, intoxicating hemp cannabinoid products are largely unregulated and are widely available without restrictions on who can buy the products, and although there are several possible solutions, voluntary industry action by good actors is the best option, say Andrew Kline and Tommy Tobin at Perkins Coie. Read full article » <https://www.law360.com/health/articles/1818511?nl_pk=6422bbc2-a823-4be5-9a9…> | Save to favorites » <https://www.law360.com/health/articles/1818511?nl_pk=6422bbc2-a823-4be5-9a9…>

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Disbarring Jeffrey Clark Would Chill Gov't Dialogue, Prof Says
by Gunnar Larson 30 Mar '24

30 Mar '24

Disbarring Jeffrey Clark Would Chill Gov't Dialogue, Prof Says <https://www.law360.com/legalethics/articles/1818613?nl_pk=153d4a8a-6fb9-4a5…> By Ali Sullivan A Yale Law School professor said Thursday that he does not believe former U.S. Department of Justice attorney Jeffrey Clark should face punishment for advocating to send a letter to Georgia officials purporting to identify significant concerns with the 2020 election, testifying before a Washington, D.C., attorney ethics panel that such discipline would devastate free dialogue within government agencies. Read full article » <https://www.law360.com/legalethics/articles/1818613?nl_pk=153d4a8a-6fb9-4a5…> | Save to favorites » <https://www.law360.com/legalethics/articles/1818613?nl_pk=153d4a8a-6fb9-4a5…>

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AI In Accounting Raises OT Exemption Questions
by Gunnar Larson 30 Mar '24

30 Mar '24

AI In Accounting Raises OT Exemption Questions <https://www.law360.com/health/articles/1818259?nl_pk=6422bbc2-a823-4be5-9a9…> A recent surge in the use of artificial intelligence in accounting work calls into question whether professionals in the industry can argue they are no longer overtime exempt under the Fair Labor Standards Act, highlighting how technology could test the limits of the law for a variety of professions, say Bradford Kelley at Littler and Stephen Malone at Peloton Interactive. Read full article » <https://www.law360.com/health/articles/1818259?nl_pk=6422bbc2-a823-4be5-9a9…> | Save to favorites » <https://www.law360.com/health/articles/1818259?nl_pk=6422bbc2-a823-4be5-9a9…>

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Has the Bull Rally for PayPal Begun?
by Gunnar Larson 30 Mar '24

30 Mar '24

https://www.fool.com/investing/2024/03/28/has-the-bull-rally-for-paypal-beg… PayPal (NASDAQ: PYPL) has been one of the worst-performing stocks in the market during the past few years. Long-term shareholders (like myself) have felt a lot of pain since PayPal peaked at $308 per share in 2021. However, within the past six months, the stock has crossed into valuation territory often reserved for companies that are shrinking, not growing. Many investors have wondered if PayPal might see a resurgence like Meta Platforms did in 2023, and with the stock up more than 10% from its March lows, it could be the start of a major bull run. So, is it time to buy PayPal stock? Or is this just a false dawn? PayPal has a long road to regain investors' confidence PayPal has long been the face of the fintech industry. It helped smoothly transfer money from one person to another and process business transactions. However, competitors eventually rose and took some of PayPal's market share, including vital streams like eBay and various mobile payment apps. Now, PayPal seems like a legacy app to many consumers. But it can also be an easy way to manage all payment types a consumer has and quickly process transactions for e-commerce stores because PayPal already has the user information. Quick transactions are key for any store, as they give the consumer less time to second-guess themselves. This makes partnering with PayPal a smart idea, which is why PayPal options have become more prevalent at online checkouts in recent years. Speeding up the checkout process and giving the user more information is at the core of PayPal's six new innovations for its platform, which new Chief Executive Officer Alex Chriss unveiled in early 2024. But it remains to be seen if this can kick-start growth for PayPal. It's the market's assumption that PayPal is a failing business that can never recover, which is why it trades for such a deep discount. PYPL PE Ratio Chart PYPL PE Ratio Chart Indeed, 17 times trailing and 13 times forward earnings is dirt cheap, especially considering that the S&P 500 trades at 23 times trailing at 22 times forward earnings. The broader market is shunning PayPal, but management isn't sitting around doing nothing. PayPal has the potential to return to market-beating status Thanks to PayPal's cheap valuation, the previous management team spent a lot of its cash flows on repurchasing shares. Chriss and his new team projected at least $5 billion in buybacks in 2024, so the trend will continue. But how significant is a $5 billion share repurchase program? It's quite a big deal. After subtracting the $1.56 billion in stock-based compensation expenses PayPal incurred in 2023, the net effect of the repurchase will be about $3.44 billion. With PayPal currently valued at $72 billion, this would reduce the shares outstanding by about 5% each year. That means if PayPal has the exact same net income in 2024 as in 2023, its earnings per share will rise 5.3%. Remember, that's with no growth. However, PayPal also projects mid-single-digit percentage revenue growth in Q1. Looking further out, Wall Street analysts project PayPal to continue this trend for 2024 and 2025, with an average of 42 analysts projecting 7% and 8% revenue growth this year and next. If PayPal can grow in the high single digits while reducing its shares outstanding by 5%, it can produce earnings per share (EPS) growth rates in the low double digit percentages. That could lead to a market-beating stock. This would undoubtedly unlock some new interest in owning the shares, which would cause its cheap valuation to increase. As a result, the PayPal rally may have already begun, with investors anticipating stronger-than-expected Q1 results. We won't know how PayPal is doing until late April, but there are enough positive signs now and a high margin of safety that I'd be comfortable buying PayPal's stock right now.

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Red Roof Inns Must Face Ohio Sex Trafficking Suits
by Gunnar Larson 30 Mar '24

30 Mar '24

Red Roof Inns Must Face Ohio Sex Trafficking Suits <https://www.law360.com/newyork/articles/1818871?nl_pk=ac5a3855-e47c-4403-be…> By Travis Bland Red Roof Inns Inc. can't escape nine lawsuits over its purported role in sex trafficking, an Ohio federal judge ruled Thursday, saying the anonymous victims met pleading standards to allege the hotel chain knowingly made money through their victimization. Decision attached | Read full article » <https://www.law360.com/newyork/articles/1818871?nl_pk=ac5a3855-e47c-4403-be…> | Save to favorites » <https://www.law360.com/newyork/articles/1818871?nl_pk=ac5a3855-e47c-4403-be…>

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Prolific Consumer Atty Beats Fireball Maker's Sanctions Bid
by Gunnar Larson 30 Mar '24

30 Mar '24

Prolific Consumer Atty Beats Fireball Maker's Sanctions Bid <https://www.law360.com/newyork/articles/1818432?nl_pk=ac5a3855-e47c-4403-be…> By Lauren Berg An Illinois federal judge has declined to sanction a prolific plaintiffs' attorney over alcoholic beverage company Sazerac Co. Inc.'s allegations the attorney sues without regard to the facts and law, saying the complaint "was not entirely baseless" and the suit was dropped within a "safe harbor" period under civil procedure rules. Memorandum attached | Read full article » <https://www.law360.com/newyork/articles/1818432?nl_pk=ac5a3855-e47c-4403-be…> | Save to favorites » <https://www.law360.com/newyork/articles/1818432?nl_pk=ac5a3855-e47c-4403-be…>

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