To Gasparino: It’s Not Just Citi, They ALL Are!
Color me amused. Charlie Gasparino, formerly of CNBS, now over at Fox News, has a new article out about CitiGroup cooking the books. Heh.
An all-out war has broken out between Citigroup CEO Vikram Pandit and a prominent securities analyst who is saying that the big bank may be cooking the books by inflating its earnings through an accounting gimmick, FOX Business Network has learned.
‘Accounting gimmick,’ huh? Oh, you mean like 23-A Letters? Those letters issued to the banks by the Federal Reserve allowing the banks to essentially keep two sets of books, one with the ‘bad assets’ removed from the balance sheet and the other with those ‘assets’ included. The thing is, the one that ‘counts’ is the one that doesn’t include those ‘bad assets.’ Kinda like that sort of ‘accounting gimick,’ Charlie?
Not just a few of us will remember Charlie Gasparino, the darling of CNBC, when he used to breathlessly come on in the middle of the trading day with some much-anticipated update on the mortgage insurers (like AIG) or the big banks (like Citi). Each and every time he was cheerleading for some gimmick or bailout said bank or insurer had received from government largesse. Each time the stock market would suddenly reverse itself from whatever trajectory it was currently on and rip the collective faces off of those people on the other side of what came to be known as the ‘Gasparino trade.’ This was nothing short of market manipulation when it became clear that every time Charlie came on the market was garanteed to move, sometimes very dramatically and almost always at a critical moment.
I hold no ill-will against Charlie. It’s nice to see him taking the side of the people against the banks, but I think it would have been more honest if he’d have come clean on the crap he was helping CNBC run in 2008 and 2009 because he was a big part of it. There WERE people out here trying to tell the truth about what all the banks were (and still are) doing. I’m glad you have joined us, but you made our lives hell for more than two years. It’s much more difficult to get the public to understand that they are being scammed and robbed blind by their own government when there’s a public figure out there cheerleading for the theft and telling people how it will ‘help’ us.
Well as we tried to tell everyone, these things Charlie touted didn’t help anyone but the banks. All the accounting gimmicks like 23-A letters have allowed the banks to rob all of us blind and they continue to allow the banks to hide their junk (these are not, nor were they ever ‘assets’ – you and I have to call them ‘liabilities’) off balance sheet so they can tout their quarterly profits and demonstrate their ‘soundness.’ If you or I could use 23-A letters, no one would have ever been foreclosed upon. None of us would have financial problems, even if we are unemployed. Sound great? Too bad. It’s only for the ‘special banks’ – you know, the ones currently being propped up with your taxpayer money because they’re insolvent. Wow. How bad does an entity really have to be in order to continue to be insolvent even when they don’t have to count their liabilities on their books?