SANTO DOMINGO.- The U.S. bank Wachovia Corp, whose more than 120 billion dollars in bad mortgages led to its failure, and acquired by Citigroup this week, maintains close collaboration with most Dominican banks, including the Central Bank, that served as one of its correspondents banks.
On Monday Wachovia’s shares slid 60 percent on concern of its low liquidity assets and that an agreement with Citigroup and Wells Fargo to face the crisis had yet to be closed.
Its close ties with Dominican banks stems from the important flow of business between Dominican Republic in Florida and the U.S. east coast, where it has a wide presence.
The bank’s list of Dominican clients include exchange agencies La Nacional, Vimenca and Quisqueyana, and the banks Central, Reservas, Popular, BHD, Progreso, Leon, and Santa Cruz.
Wachovia’s correspondent banks include the failed banks Mercantil and Banínter.
SOURCE: El Nacional
From: United States
What does this mean?
Written by: josean, 2 Oct 2008 4:18 PM
From: United States
It means when Lie-onel is in power banks begin to deteriorate and others have to take the blame and clean up the mess when he is gone!
Written by: josean, 2 Oct 2008 4:47 PM
From: United States
Evidence!
Exibit A:
Source DR1
Government spending up
According to the Ministry of Hacienda, government spending so far this year was up 36.5% compared to the Jan-Aug 2007 period. The government spent RD$181.31 billion in 2008, compared to RD$132.79 billion in 2007. Business sectors have been pressing the government to implement their oft-announced austerity plan, especially given the financial crisis in the US, the DR's leading trading partner, as reported in El Caribe. Current spending was up from RD$103.42 billion in 2007 to RD$135.05 billion in 2008, for a 30.6% increase. Capital expenditures increased from RD$29.377 billion to RD$46.26 billion, or 57%.
From: Iraq, 10 billion dollars a month for nothing
I feel like a sucker I mean, the U.S. gov is going to give these rich guys all this money and I get to pay for it........ I doubt Socialism can be worse then this !!!!!!!!!!!!!!!!
Written by: walnut, 2 Oct 2008 11:22 PM
From: Dominican Republic, La Romana
US government not giving anybody money....the problem is that vulture lenders gave bad risk people money, then sold the debt to banks who thought that the people were going to pay. A total collapse is imminent without quick action by the fools in DC.
Right now in the US, you can't buy a car or house unless you pay with cash because there is no money to loan.
Wachovia got sucked in this mess but to think the answer is not to do anything will leave the US dead. So which is it...give a few lucky stiffs some dollars or risk entire collapse?
This is exactly why I left the US and moved here.
US government was designed by geniuses so that it could be run by idiots.
Written by: abc200, 3 Oct 2008 1:48 AM
From: United Kingdom
Hey - don't be down you Wall Street Gals there's still gold out there:
Playboy looks for bare market on Wall Street
http://www.reuters.com/article/ne....umber=2&virtualBrandChannel=0Let's have some polar bear parties, camp on the ice with Sarah and the girls from Wall Steet - and the banks can, yes, can bulldose the MacMansions.
You can build an igloo in 2 days - no banks involved only elbow grease. Then Playboy can take some picures of the ice maidens. Plenty of free meat!
S.
From: United States Virgin Islands, Christiansted.from the bar at the Comanche
Written by: juliony, 3 Oct 2008 9:05 AM
From: United States, New YOrk
Chillaxin201, the US goverment most bail out this companies.. why, because 80% of the companies going under are own by 401k or retirement accounts.. basically the us goverment is lending money to these companies for a short time.. 5-15 years.. If you own a retirement account you will have a lost this year and probably next year..:)
From: United States Virgin Islands, Christiansted.from the bar at the Comanche
chill I would imagine your idea of a retirement plan is Scratch and Win Lottery tickets .....am I correct ?
Written by: josean, 3 Oct 2008 11:12 AM
From: United States
Chill,
Don't worry John Mc Lame is going to turn over Social Security to the "efficient" private sector so they can gamble it, OOPS I mean invest it in Wall St.
Which is about the same thing a play scratch offs!
Written by: abc200, 3 Oct 2008 4:45 PM
From: United Kingdom
Social security will mean growing your own potatoes and carrots and raising your own chicken.
These birds, comparatively itntelligent compared with Wall Street types, have surely returned to roost!! If you have time twice bake your potatioes!
S
Written by: josean, 3 Oct 2008 4:49 PM
From: United States
Abc,
I hear there is good top soil in the METRO tunnels, Lie-onel gan grow award winning tomatoes!
Written by: abc200, 3 Oct 2008 5:17 PM
From: United Kingdom
Say man; I'm so sorry in my previous post - mushrooms are so good and grow in the dark.
However when the enemy strikes the Metro will save thousands of lives.
S.
From: United States Virgin Islands, Christiansted.from the bar at the Comanche
reliving your miserable childhood during the blitz hiding in the underground ...a whole generation ruined by rationing.... labour governments .....and living in a tunnel like rats
Written by: Belial, 4 Oct 2008 10:08 AM
From: United States, Texas
"....the problem is that vulture lenders gave bad risk people money, "
0000
Most US commercial banks and mortgage comapnies, like CountryWide, are or were "vulture lenders." But the vulture lenders didn't really give money to "bad risk people. "
The vulture lender gives bad risk mortgages to creditworthy people.
Mortgages are either (1) fixed or (2) non-predator adjustablei or (3) predatorically adjustable.
(1) If the monthly payment is fixed at $1000 it remain $1000 until it paid off.
(2) If the payment is adjustable in a non-predator way,, say 25% to 100%, the monthly payment will rise from a $1000 to somewhere between $1250 and $2000 per month.
(3) A predator adjustable mortgage will rise 300% to 500% or $1000 to $3000 - $5000 monthly payments.
These so-called "bad risk people" kept up with their mortgages as long as the mortgages didn't adjust in a predator manner.
Most "prime" borrowers and homeowners can take 300% to 500% hits in mortgage payments.
Written by: Belial, 4 Oct 2008 10:22 AM
From: United States, Texas
Investment banks demanded from commercial banks and mortgage companies, mortgages with predator adjustable between 300%- 500% over non-predator adjustable between 25%-100% because the predators used the fruadulent adjustable to fetch a higher price in the bond market for the bonds based on the predator mortgages.
Since the underlying mortgages of predator bonds adjust 300%-500% , these bonds promised a return on capital between 6% and 10% while the bonds based non-predator mortgages promised to pay a return of only between 4% and 6%.
The investor appetite for bonds based on predator mortgages was insatiable.
So, the definciency doesn't lie in "bad risk people" so much as on bonds based on mortgages containing a deliberate design flaw to jack up the price of the bonds and the potential return on capital that the fraudulent bonds promised.
The racketeer financier didn't care about the health of the US financial system, the racketeer cared only about billions of dollars.
From: United States Virgin Islands, Christiansted.from the bar at the Comanche
Franklin D Raines ......D is for dirtbag....The racketeer financier didn't care about the health of the US financial system, the racketeer cared only about billions of dollars.
Written by: Belial, 4 Oct 2008 10:40 AM
From: United States, Texas
The DT article above " The U.S. bank Wachovia Corp, whose more than 120 billion dollars in bad mortgages led to its failure ...."
Were the mortgages bad because the borrowers were uncreditworthy or because the mortgages were fraudulent?
Wachovia, the holding company "Wachovia Corporation," had or has a number of major financial operations. The two big ones are commercial banking, that is, "Wachovia Bank" and an investment banking, that is, "Wachovia Securities."
The "Bank" and "Securities" are subsidiaries under the parent holding company.
The "corporation" is now trying to throw away or give away the "BanK" and keep the "Securities."
"Securities" unloaded all of its bad mortgages and bonds based on bad mortgages to the "Bank" before the "Corporation" decided to sell or throw away or give away the "Bank."
The bailout makes the "Bank" very valuable because the market value of the bad bonds based bad mortgages is a nickel but Treasury wil pay $25,000 for the bad bonds.
Written by: Belial, 4 Oct 2008 10:48 AM
From: United States, Texas
"Franklin D Raines ......D is for dirtbag....The racketeer financier didn't care about the health of the US financial system, the racketeer cared only about billions of dollars."
oooo
The Franklin Raines thing about a single guy overthrowing the Bush regime, causing the weakling Bush to blow the Clinton surplues, forcing Bush run up the national debt and forcing Bush to run up the debt for dozens of US agencies, like Freddie Mac, over which Raines had absolutely no influence is Rush Limbaugh garbage repeated by stupid and morally degenerate dittoheads as well as the usual suspects, the reactionary savages.
Written by: Belial, 4 Oct 2008 11:07 AM
From: United States, Texas
US Financial Bailout to Harm DR
http://www.plenglish.com/article.asp?ID={6A02C4E8-80BF-4F5E-AB7F-7CBF6EFFAEAD})&language=EN
Santo Domingo, Oct 4 (Prensa Latina) The 700B bailout plan enacted by Washington will affect employment and the credit sector in the Dominican Republic, said Dominican President Leonel Fernandez.
Until now, LF said the economy of his country “is armored,” based on the estimated 7% growth this year.
The LF returned from Miami where he took part in a forum on political and economic issues.
LF declared the plan presented by Bush “is not the final solution” to the crisis and developing countries will suffer from its fallout.
“Restrictions on credit will come and harm the economies of countries like the Dominican Republic,” LF said. .
The immediate effects will be a downturn, an increase in unemployment and a situation of social uneasiness, said LF,who also said these were his were “preliminary assessments.”
Written by: Belial, 4 Oct 2008 11:24 AM
From: United States, Texas
One wonders what LF means by "immediate effects?"
The "immediate effects" are a massive securities fraud by the racketeering element in the US financial sector is the bankruptcy or insolvency if the institutions and individuals who bought the fraudulent bonds.
So, the question is: How large are the positions of La Nacional, Vimenca and Quisqueyana, and the banks Central, Reservas, Popular, BHD, Progreso, Leon, and Santa Cruz. in the fraudulent securities ... bad bonds based on bad mortgages ... purchased for $25,000 per bond and now worth a nickel?
One of the "effects" of the nosedive in the new worth of business and individual victimized by the securities fraud is the disappearance of capital need to make loans and give credit. that LF alludes to.
Neither the 700B from the US bourgeois regime chiefly for domestic suckers of the securities fraud nor the 630B from Federal Reserve System for foreign suckers of the scam will go the Dominican suckers.
Written by: Belial, 4 Oct 2008 11:50 AM
From: United States, Texas
http://fe6.news.sp1.yahoo.com/s/a...._ylt=AlTO_An84xVgaBnZVsumZ3a3IxIFCARACAS, Venezuela - Venezuela's state-owned bank says it will not be affected by the U.S. financial crisis.
Last month, Venezuela's banking regulatory agency ordered local banks to back up investments offered by Lehman Brothers and Merrill Lynch.
It required institutions holding the investments to keep 50 percent of their value on hand as cash deposits.
Lehman Brothers Holdings Inc. filed for bankruptcy last month and Merrill Lynch & Co. agreed to sell itself to Bank of America Corp.
oooo
The state-owned banks don't have a problem, but the pro-imperialist privately-owned banks have a big problem because of their big positions in bad US bonds based on bad US mortgages is now worthless and further the bourgeois-managed private banks in Venezuela are not eligible for the money under either the 700B bailout or the 630B relief from the FED.
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Exibit A:
Source DR1
Government spending up
According to the Ministry of Hacienda, government spending so far this year was up 36.5% compared to the Jan-Aug 2007 period. The government spent RD$181.31 billion in 2008, compared to RD$132.79 billion in 2007. Business sectors have been pressing the government to implement their oft-announced austerity plan, especially given the financial crisis in the US, the DR's leading trading partner, as reported in El Caribe. Current spending was up from RD$103.42 billion in 2007 to RD$135.05 billion in 2008, for a 30.6% increase. Capital expenditures increased from RD$29.377 billion to RD$46.26 billion, or 57%.
Right now in the US, you can't buy a car or house unless you pay with cash because there is no money to loan.
Wachovia got sucked in this mess but to think the answer is not to do anything will leave the US dead. So which is it...give a few lucky stiffs some dollars or risk entire collapse?
This is exactly why I left the US and moved here.
US government was designed by geniuses so that it could be run by idiots.
Playboy looks for bare market on Wall Street
http://www.reuters.com/article/ne....umber=2&virtualBrandChannel=0
Let's have some polar bear parties, camp on the ice with Sarah and the girls from Wall Steet - and the banks can, yes, can bulldose the MacMansions.
You can build an igloo in 2 days - no banks involved only elbow grease. Then Playboy can take some picures of the ice maidens. Plenty of free meat!
S.
Don't worry John Mc Lame is going to turn over Social Security to the "efficient" private sector so they can gamble it, OOPS I mean invest it in Wall St.
Which is about the same thing a play scratch offs!
These birds, comparatively itntelligent compared with Wall Street types, have surely returned to roost!! If you have time twice bake your potatioes!
S
I hear there is good top soil in the METRO tunnels, Lie-onel gan grow award winning tomatoes!
However when the enemy strikes the Metro will save thousands of lives.
S.
0000
Most US commercial banks and mortgage comapnies, like CountryWide, are or were "vulture lenders." But the vulture lenders didn't really give money to "bad risk people. "
The vulture lender gives bad risk mortgages to creditworthy people.
Mortgages are either (1) fixed or (2) non-predator adjustablei or (3) predatorically adjustable.
(1) If the monthly payment is fixed at $1000 it remain $1000 until it paid off.
(2) If the payment is adjustable in a non-predator way,, say 25% to 100%, the monthly payment will rise from a $1000 to somewhere between $1250 and $2000 per month.
(3) A predator adjustable mortgage will rise 300% to 500% or $1000 to $3000 - $5000 monthly payments.
These so-called "bad risk people" kept up with their mortgages as long as the mortgages didn't adjust in a predator manner.
Most "prime" borrowers and homeowners can take 300% to 500% hits in mortgage payments.
Since the underlying mortgages of predator bonds adjust 300%-500% , these bonds promised a return on capital between 6% and 10% while the bonds based non-predator mortgages promised to pay a return of only between 4% and 6%.
The investor appetite for bonds based on predator mortgages was insatiable.
So, the definciency doesn't lie in "bad risk people" so much as on bonds based on mortgages containing a deliberate design flaw to jack up the price of the bonds and the potential return on capital that the fraudulent bonds promised.
The racketeer financier didn't care about the health of the US financial system, the racketeer cared only about billions of dollars.
Were the mortgages bad because the borrowers were uncreditworthy or because the mortgages were fraudulent?
Wachovia, the holding company "Wachovia Corporation," had or has a number of major financial operations. The two big ones are commercial banking, that is, "Wachovia Bank" and an investment banking, that is, "Wachovia Securities."
The "Bank" and "Securities" are subsidiaries under the parent holding company.
The "corporation" is now trying to throw away or give away the "BanK" and keep the "Securities."
"Securities" unloaded all of its bad mortgages and bonds based on bad mortgages to the "Bank" before the "Corporation" decided to sell or throw away or give away the "Bank."
The bailout makes the "Bank" very valuable because the market value of the bad bonds based bad mortgages is a nickel but Treasury wil pay $25,000 for the bad bonds.
oooo
The Franklin Raines thing about a single guy overthrowing the Bush regime, causing the weakling Bush to blow the Clinton surplues, forcing Bush run up the national debt and forcing Bush to run up the debt for dozens of US agencies, like Freddie Mac, over which Raines had absolutely no influence is Rush Limbaugh garbage repeated by stupid and morally degenerate dittoheads as well as the usual suspects, the reactionary savages.
http://www.plenglish.com/article.asp?ID={6A02C4E8-80BF-4F5E-AB7F-7CBF6EFFAEAD})&language=EN
Santo Domingo, Oct 4 (Prensa Latina) The 700B bailout plan enacted by Washington will affect employment and the credit sector in the Dominican Republic, said Dominican President Leonel Fernandez.
Until now, LF said the economy of his country “is armored,” based on the estimated 7% growth this year.
The LF returned from Miami where he took part in a forum on political and economic issues.
LF declared the plan presented by Bush “is not the final solution” to the crisis and developing countries will suffer from its fallout.
“Restrictions on credit will come and harm the economies of countries like the Dominican Republic,” LF said. .
The immediate effects will be a downturn, an increase in unemployment and a situation of social uneasiness, said LF,who also said these were his were “preliminary assessments.”
The "immediate effects" are a massive securities fraud by the racketeering element in the US financial sector is the bankruptcy or insolvency if the institutions and individuals who bought the fraudulent bonds.
So, the question is: How large are the positions of La Nacional, Vimenca and Quisqueyana, and the banks Central, Reservas, Popular, BHD, Progreso, Leon, and Santa Cruz. in the fraudulent securities ... bad bonds based on bad mortgages ... purchased for $25,000 per bond and now worth a nickel?
One of the "effects" of the nosedive in the new worth of business and individual victimized by the securities fraud is the disappearance of capital need to make loans and give credit. that LF alludes to.
Neither the 700B from the US bourgeois regime chiefly for domestic suckers of the securities fraud nor the 630B from Federal Reserve System for foreign suckers of the scam will go the Dominican suckers.
CARACAS, Venezuela - Venezuela's state-owned bank says it will not be affected by the U.S. financial crisis.
Last month, Venezuela's banking regulatory agency ordered local banks to back up investments offered by Lehman Brothers and Merrill Lynch.
It required institutions holding the investments to keep 50 percent of their value on hand as cash deposits.
Lehman Brothers Holdings Inc. filed for bankruptcy last month and Merrill Lynch & Co. agreed to sell itself to Bank of America Corp.
oooo
The state-owned banks don't have a problem, but the pro-imperialist privately-owned banks have a big problem because of their big positions in bad US bonds based on bad US mortgages is now worthless and further the bourgeois-managed private banks in Venezuela are not eligible for the money under either the 700B bailout or the 630B relief from the FED.