US 20b.Fed Bailout For Sanford I. Weill's Citigroup-Enron Smoking Gun to 911.
The International Institute of Nonviolence
By: Rev. Jermano
It is pretty amazing stuff that the Fed is now bailing out Citigroup troubles by announcing today a 20 billion dollar injection from the 700b bailout recently fanangled through Congress 2008. See the run down on Sandy I. Weill the CEO of Citigroup, the guy responsible for over turning the Glass-Seagull Act that ushered in Phil Gramms, Enron Loophole. The loophole could not save Enron and so they did 911 to destroy Bank Documents and Evidence of Fraud . They made it into a terrorists attack throwing in an attack on the Pentagon to make it look real. Hijackers may have been used, but the financial issues are what and who created 911 as the binladins became the paid family agents of action in doing the deed.
The Citigroup rescue came after a weekend of marathon discussions led by Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke. Timothy Geithner, president of the Federal Reserve Bank of New York, who is being tapped by President-elect Barack Obama as his Treasury chief also participated.
Vikram S. Pandit, Citi's chief executive officer, welcomed the action. "We appreciate the tremendous effort by the government to assure market stability," he said in a statement issued early Monday.
The $20 billion cash injection by the Treasury Department will come from the $700 billion financial bailout package. The capital infusion follows an earlier one — of $25 billion — in Citigroup in which the government also received an ownership stake.
Notice the article here mentions nothing about its connection to the Enron Scam...http://news.yahoo.com/s/ap/20081124/ap_on_bi_ge/citigroup
Yet here is the proof that Citigroup was involved : http://www.sec.gov/news/press/2003-87.htm
Must we forget?Washington, D.C., July 28, 2003 -- The Securities and Exchange Commission today instituted and settled enforcement proceedings against two major financial institutions, J.P. Morgan Chase & Co. and Citigroup, Inc., for their roles in Enron Corp.'s manipulation of its financial statements. Each institution helped Enron mislead its investors by characterizing what were essentially loan proceeds as cash from operating activities. The proceeding against Citigroup also resolves the Commission's charges stemming from the assistance Citigroup provided Dynegy Inc. in manipulating that company's financial statements through similar conduct. As to Citigroup, the Commission instituted an administrative proceeding and issued an order making findings and imposing sanctions. Without admitting or denying the Commission's findings, Citigroup consented to the issuance of the Commission's Order whereby Citigroup (i) was ordered to cease and desist from committing or causing any violation of the antifraud provisions of the federal securities laws, and (ii) agreed to pay $120 million as disgorgement, interest, and penalty. Of that amount, $101 million pertains to Citigroup's Enron-related conduct and $19 million pertains to the Dynegy conduct
In effect what the SEC is saying here is that Citigroup agreed to pay them a bribe and stop doing the dirty business, or they will turn it over to the Courts....which would require Citigroup to pay even higher fines than they paid to the SEC. Hows that for keeping your buddies out of jail, and closing shop? Seems that it worked and now ole Henry and the Bush crew are keeping their word by giving them this 20 billion bailout.
In my view Citigroup is part of the skeletal remains of Enron and the connection that Enron had to the impending decision to unleash 911. The Feds have closed down the investigations into that, but it clearly has a strong odor and the compass needle is pointing to the fact that 911 was an Enron inside job.
But get this: according to the New York Times: Citigroup said it would pay $1.66 billion to the Enron Bankruptcy Estate, which represented Enron creditors caught up in one of the biggest corporate scandals. With a bankruptcy trial scheduled for next month, the bank was the last of 11 financial institutions to resolve claims going back to 2003. Citi’s shares fell $1.34, to $22.08 in late trading.
Citigroup also reached a separate settlement with investors holding Enron credit-linked notes, ending what could have been a complex legal battle with several vulture funds that now own those securities. The investors had sought to have Citigroup step in after Enron objected to settling those claims. Enron has now agreed to absorb those claims, though the dollar amount has not yet been fixed.
In both settlements, Citigroup denied wrongdoing and said it had settled to eliminate the uncertainties and expense of protracted litigation. Citigroup has already set aside money to cover the cost of both settlements, which require approval by a Manhattan bankruptcy court.
“We are pleased to have reached a successful resolution of the two largest outstanding matters dating from the Enron disputes,” a Citigroup spokeswoman, Shannon Bell, said.
Enron’s creditors, meanwhile, also claimed victory. John J. Ray III, the president of the Enron Creditors Recovery Trust, called the settlement “an enormous accomplishment” that contributes nearly half of the $3.4 billion that Enron’s creditors will collect from the 11 banks. Enron’s creditors had been seeking a total of $21 billion from Citigroup.
Now does that seem a coincidence to you that $21 billion is nearly the same amount the Fed's 20 billion they are now putting into Citigroup? Seems they are getting their money anyway from Enron...disguised as the Creditor Feds.
So let's see Citigroup has given 120 million to the SEC and 1.66 billion to Enrons Bankruptcy Estate. That is 1.66billion 120 million investment for the 20 billion from the Fed.
Not bad if you think about it, but it's money really going to the creditors of Enron in the first place..
Check this out in an eye opener in the next paragraph with the Citigroup and Enron dealings. The date here reflects Sept of 1999, but think about that in concern to changing those dates to 1999 because they really happened on Sept. 2001...And realize Enron is one of the smoking guns for placing those many call and put options. Who better to do the dirty inside trading than Enron but Enron itself....and to go with the plan executing 911 to throw the light away from themselves , to buy time and money. Enron really is Citigroup now, still doing business.
The damaging evidence: called The Roosevelt Deal.
In that deal, Citigroup agreed in late 1998 to transfer to Enron $500 million for six months as part of a prepay, with the company committing itself to deliver natural gas and oil at a future date. Terms of the deal called for portions of the debt to be sold off by May 1999 in chunks to other banks, to help spread Citigroup's risk -- unless the commodity was delivered or the money advanced was repaid.
As that date approached, Enron asked Citigroup to extend the time in which it was allowed to make good on its side of the transaction, according to e-mail messages between senior Citigroup loan executives. Under the company's proposal, it would repay Citigroup $310 million -- roughly the amount owed under the natural gas portion of the transaction. The remaining amount of roughly $190 million -- which corresponded with the value of the crude oil prepay -- would be paid back by Enron sometime in the fall.
''Enron characterizes this as a 'favor' -- they do not wish to repay Roosevelt without full corresponding refinancing,'' according to an April 19, 1999, e-mail message from Mr. Reilly. In other words, Enron did not want to repay the $500 million until it could find another way to get similar financing. But, according to the e-mail message, Enron had failed to do so.
Officials in the loan department of Citigroup were ''very negative'' on the proposal, the internal records show. Rather than extending the time and allowing Enron to pay in the future, they suggested several alternatives under which Enron would pay the $310 million, while the rest of the debt would be sold off to other banks.
Within days, the records show, a new deal was reached, sidestepping the concerns of the loan department. Under its terms, Enron would pay $310 million in early May. At the same time, oil deliveries required to be made each month from May to September would be pushed back to begin on Oct. 1. But, under the secret oral agreement, Enron committed itself to prepay the full amount by Sept. 30 -- a commitment that bankers knew transformed the potential oil deliveries into a fiction, thus changing the deal from a structured financing into a loan. ( this paragraph is found on the 2nd page of the article link below.)
The first analyst to publicly disclose Enron's financial flaws was Daniel Scotto who in August 2001 issued a report entitled "All Stressed up and no place to go" which encouraged investors to sell Enron stocks and bonds at any and all costs. This is just before 911 happened. When word got out that Enron was duping investors they signalled the go ahead to do 911.. This gave Enron the ability to do the call and put trades that day, and later have the money to pay.
As we can see Enron filed for bankruptcy after 911 happened. According to Wikipedia:
At the end of 2001 it was revealed that its reported financial condition was sustained substantially by institutionalized, systematic, and creatively planned accounting fraud, sometimes called the "Enron scandal". Enron has since become a popular symbol of willful corporate fraud and corruption. The Scandal was also considered a landmark case in the field of business fraud and brought into question the accounting practices of many corporations throughout the United States.
Enron filed for bankruptcy protection in the Southern District of New York in late 2001 and selected Weil, Gotshal & Manges as its bankruptcy counsel. It emerged from bankruptcy in November 2004 after one of the biggest and most complex bankruptcy cases in U.S. history. On September 7, 2006, Enron sold Prisma Energy International Inc., its last remaining business, to Ashmore Energy International Ltd. Following the scandal, lawsuits against Enron's directors were notable because the directors settled the suits by paying very significant sums of money personally. The scandal also caused the dissolution of the Arthur Andersen accounting firm, affecting the wider business world. Enron loss over 80 billion according to CapitalismMagazine.
So we are to think Enron is finished when the CItigroup people who helped create Enron is still operating and cooking the books? The people running Citigroup are the same who did 911 when Enron was exposed. What better attempt to try to destroy administrative records and evidence of Enrons crimes, by creating and committing 911 to bail them out? Seems to be working now with the Treasury giving Citigroup 20b.