Thursday, December 20, 2012

Pete Lanza or more importanty...The Libor Scandal

http://www.nytimes.com/2011/03/25/business/economy/25tax.html?_r=3&adxnnl=1&ref=business&pagewanted=1&adxnnlx=1356067506-nJwOV4LqjnqTwkT6GgrRag General Electric, the nation’s largest corporation, had a very good year in 2010.
Drew Angerer/The New York Times
A PRESIDENT’S BUSINESS LIAISON In January, President Obama named Jeffrey R. Immelt, General Electric’s chief executive, to head the President’s Council on Jobs and Competitiveness. “He understands what it takes for America to compete in the global economy,” Mr. Obama said.

But Nobody Pays That

The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States.
Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.
That may be hard to fathom for the millions of American business owners and households now preparing their own returns, but low taxes are nothing new for G.E. The company has been cutting the percentage of its American profits paid to the Internal Revenue Service for years, resulting in a far lower rate than at most multinational companies.
Its extraordinary success is based on an aggressive strategy that mixes fierce lobbying for tax breaks and innovative accounting that enables it to concentrate its profits offshore. G.E.’s giant tax department, led by a bow-tied former Treasury official named John Samuels, is often referred to as the world’s best tax law firm. Indeed, the company’s slogan “Imagination at Work” fits this department well. The team includes former officials not just from the Treasury, but also from the I.R.S. and virtually all the tax-writing committees in Congress.
While General Electric is one of the most skilled at reducing its tax burden, many other companies have become better at this as well. Although the top corporate tax rate in the United States is 35 percent, one of the highest in the world, companies have been increasingly using a maze of shelters, tax credits and subsidies to pay far less. Why is this significant? Peter Lanza is tax director and vice president of taxes for GE Energy Financial Services in the New York City area.
http://us.linkedin.com/pub/dir/Peter/Lanza Founded by JP Morgan to corner the market in electricity – GE is now a media – military industrial complex kingpin! Morgan Stanley has also been implicated in the LIBOR Scandal!
Now I am still looking for a link to Pete being subpenaed before the senate but I did come across this: http://money.cnn.com/2012/10/18/news/companies/general-electric-prison/index.html
NEW YORK (CNNMoney)

A trio of former financial executives from General Electric are headed to prison after being found guilty of defrauding taxpayers in the municipal bond market.

The men are the first to be sentenced as part of the government's ongoing investigation of bid-rigging in auctions for the investment of municipal bond proceeds by some of Wall Street's biggest firms. The probe has yielded 20 indictments so far, with defendants coming from institutions including Bank of America (BAC, Fortune 500), JPMorgan (JPM, Fortune 500) and UBS (UBS).
The three men sentenced Thursday formerly worked at General Electric's (GE, Fortune 500) GE Capital unit, where prosecutors say they colluded with counterparts at other firms to rip off bond issuers. Two men -- Dominick Carollo and Peter Grimm -- received three years in prison, while the third, Steven Goldberg, got four years.
Prosecutors had requested 10 years in prison for Carollo, as well as up to 12 years for Grimm and 17 for Goldberg.
How the scheme worked: When states and local governments issue bonds, they usually don't spend all the proceeds right away. To figure out how to invest the extra money, they hire brokers who manage a bidding process among financial institutions competing for their business.
Bids are solicited from firms like UBS and JPMorgan, which submit the interest rates they're willing to offer on the extra bond proceeds. The winning institution, generally, is the one that offers the highest rate of return.
In cases like that of the former GE executives, prosecutors say the process was corrupted when executives from different firms conspired with one another, dividing up business in advance and devising their bids in cooperation, a practice known as bid-rigging. This allowed the winning bidders to offer issuers lower rates of return than they would have secured through an honest process.

Libor Scandal Just Took A Nasty Turn, Collusion Findings Should Make Banks Very Nervous

http://www.forbes.com/sites/halahtouryalai/2012/12/19/libor-scandal-just-took-a-nasty-turn-collusion-findings-should-make-banks-very-nervous/ While people are fighting over facts and fiction.  I made sure to get all of my findings from actual newspapers, not the Examiner type media.  Here is MY question.  Why wasn't the media reporting on this when it broke out over the summer?  And now let us look at the more obvious and bigger picture (as Christians anyway) This is a worldwide banking crisis.  What does this mean for our monetary system in the near future?  Will this be used as the shooting I am sure will be used, to further plans of a world-wide single currency? Food for thought... Stay Tuned!

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