Fake President ordered to repay $2 Billion he stole from his fake charity


Carolyn Kaster/AP

❝ A New York state court has ordered President Trump to personally pay $2 million to settle a lawsuit over the misuse of funds from the now-defunct Trump Foundation to further his political ambitions…

❝ The award is a part of the settlement in New York Attorney General Letitia James’ lawsuit against Mr. Trump, Donald Trump Jr., Ivanka Trump and Eric Trump. The lawsuit, filed in June 2018, claimed the foundation’s directors skirted New York’s charity laws, allowing the president to use foundation funds for his personal, business and political interests, including coordinating with his 2016 bid for the White House. The Trump Foundation announced it was shutting down last year, amid allegations that the money was used for Mr. Trump’s personal benefit…

❝ The court order comes after another big loss for Mr. Trump, after a federal appeals court in New York ruled Monday that the president’s tax returns can be turned over to state criminal investigators.

Throw the crook in jail. Throw away the key!

Citigroup gets greenlight to pay back $20 billion bailout


Daylife/AP Photo used by permission

Citigroup has been given the go-ahead by the US treasury to repay its $20bn of government bailout money, a day after President Barack Obama accused Wall Street institutions of handing back funds simply in order to escape curbs on multimillion dollar bonus payouts.

The US bank, which teetered on the brink of collapse at the height of the financial crisis last year, is one of the few major US banks still supported by taxpayers’ funds. Its repayment plan follows a similar move earlier this month by Bank of America, leaving Wells Fargo as the last nationwide bank yet to institute repayment.

To raise the money, Citigroup intends to issue $20.5bn of stock and debt.

In total, the treasury pumped $45bn into Citigroup to prevent the bank from collapsing, although $25bn of this was converted into a 34% stake. The government, which has benefited from a 20% appreciation in Citigroup’s share price, said it will sell its shares in an “orderly fashion” over the next 12 months.

The plunge in Citigroup’s fortunes during the worst of the crisis was so severe that the bank was ejected from the blue-chip Dow Jones Industrial Average. Its share price slipped 4% on Monday as investors anticipated dilution in their holdings by Citigroup’s plan to issue a large amount of new stock.

I don’t give investment advice – though I’ve been having a good year – so, I have no suggestions about how to treat Citi’s stock issue.

I’m certainly pleased to see that taxpayers will be making 20% on our share of this TARP bailout.

GM will start loan repayments 6 years ahead of schedule


Production version of the GM/Chevy Volt

Almost 90 days after coming out of bankruptcy, General Motors is showing signs of getting healthy and moving closer to getting back in the black.

And there’s no doubt, the “new” GM is doing far better than the old GM:

  • Cash flow was positive $3.3 Billion
  • Structural costs dropped $6.7 Billion
  • Starting next month, GM will repay $1.2 Billion of its $8.1 Billion in loans to the U.S. And Canadian governments
  • All encouraging signs. But critics will point out some other troubling signs at GM.

    GM lost $261 Million before special charges

  • The company will have negative cash flow in the fourth quarter due to a number of factors, including the loan repayment.
  • All of which brings up the question: How much has really changed at GM?

    Actually, quite a bit.

  • The company’s global market share is up slightly to a total of 11.9 %.
  • In the U.S., consideration of General Motors vehicles is picking up.
  • China, which has become the #1 market in the world for auto sales, GM is not only holding the top position, it’s in position to grow with that market.
  • The company moves quicker, and with more purpose than a year ago as it was sliding towards bankruptcy.
  • So what should we take away from GM’s third quarter financial results?

    This company is definitely in better shape than it was before bankruptcy and is better position to get back in the black as auto sales pick up. In other words, it’s steady progress. Not spectacular, but steady.

    Beancounters are happy – I’m happy. Doesn’t mean I’ll stop offering advice; but, who listens to me, eh?

    Ten of the biggest US banks paying back bail-out


    Daylife/Reuters Pictures used by permission

    Ten of the nation’s largest banks have received a green light from the Treasury Department to repay $68 billion in government bailout money that they got during the height of the financial crisis.

    The banks have been busy strengthening their balance sheets in recent weeks by raising private capital. This move raises hope that the worst of the banking crisis is over.

    The ten banks, including JPMorgan Chase, Capital One and Goldman Sachs, all got a clean bill of health following the recent stress test administered by government regulators.

    Many had voiced a desire to pay back the money. Some had taken it very reluctantly, at the insistence of the Bush administration as it was trying to stabilize the financial system and insure that banks had money to lend. Along with the money came government limits on compensation for executives, which the banks are anxious to escape.

    As the financial system has stabilized and the economy has shown signs of bottoming out, a number of the banks have been able to raise new capital from investors.

    If the 10 large banks repay the full $68 billion, it would be a development welcomed by Congress and taxpayers. Added to loans already repaid by some smaller banks, it would bring the amount of TARP funds recovered to $70 billion. That’s about one-third of the nearly $200 billion the Treasury has injected into the nation’s banks.

    Not so incidentally, these ten banks have also provided $2 billion in dividends to the Treasury during the course of the so-called bailout.

    Yes, that’s right. We, the taxpayers, made money on this part of the deal.