THE *REAL* REASON FOR THE SUDDEN RUSH FOR BAILOUT? (BASEL-II)
Posted By: billym <Send E-Mail>
Date: Thursday, 25 September 2008, 8:33 a.m. Why the Crooks (Fed) are in a Panicked Rush
Why the big panicked rush to pass the bailout? Two clues:
1.) the U.S. fiscal year ENDS on Sept. 30th and a NEW one starts on Oct. 1st. and
2.) The Basel-II deadline for U.S. banks to be "Basel-II compliant," originally Sept. 1st, must surely come due on Oct. 1st, 2008.
Basel-II compliant banks in Europe and elsewhere will be forbidden to do business with non-compliant banks in the U.S., effectively bringing the non-compliant banks down.
A fiscal quarter is 3 months (1/4 of a year). For example, the United States government fiscal year for 2008 ("FY08", sometimes written "FY07-08") is as follows:
* 1st Quarter: October 1, 2007 - December 31, 2007
* 2nd Quarter: January 1, 2008 - March 31, 2008
* 3rd Quarter: April 1, 2008 - June 30, 2008
* 4th Quarter: July 1, 2008 - September 30, 2008
The U.S. government's fiscal year begins on October 1 of the previous calendar year and ends on September 30 of the year with which it is numbered. http://en.wikipedia.org/wiki/Fiscal_year
Also from Wiki:
Basel II is the second of the Basel Accords, which are recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision. The purpose of Basel II, which was initially published in June 2004, is to create an international standard that banking regulators can use when creating regulations about how much capital banks need to put aside to guard against the types of financial and operational risks banks face.
Advocates of Basel II believe that such an international standard can help protect the international financial system from the types of problems that might arise should a major bank or a series of banks collapse. In practice, Basel II attempts to accomplish this by setting up rigorous risk and capital management requirements designed to ensure that a bank holds capital reserves appropriate to the risk the bank exposes itself to through its lending and investment practices.
Generally speaking, these rules mean that the greater risk to which the bank is exposed, the greater the amount of capital the bank needs to hold to safeguard its solvency and overall economic stability.
On July 16, 2008 The federal banking and thrift agencies ( The Board of Governors of the Federal Reserve System; the Federal Deposit Insurance Corporation; the Office of the Comptroller of the Currency, and; the Office of Thrift Supervision) issued a final guidance outlining the supervisory review process for the banking institutions that are implementing the new advanced capital adequacy framework (known as Basel II). The final guidance, relating to the supervisory review, is aimed at helping banking institutions meet certain qualification requirements in the advanced approaches rule, which took effect on April 1, 2008. http://www.occ.gov/ftp/release/2008-81a.pdf
The European Union has already implemented the Accord via the EU Capital Requirements Directives and many European banks already report their capital adequacy ratios according to the new system. All the credit institutions will adopt it by 2008. http://en.wikipedia.org/wiki/Basel_II>
Apparently a 90-day extension was given for U.S. banks to get their books in order. That extension expires on Sept. 30th so by Oct. 1st U.S. banks MUST be compliant or they CAN'T DO BUSINESS WITH COMPLIANT (more honest) BANKS.
I would guess that the REAL REASON for the sudden big PANIC and RUSH has to do with these deadlines. Nothing else makes sense. And the blaming of "bad mortgages" for the whole mess is totally disingenuous.
IT'S ABOUT THE CRIMINALITY, STUPID!
Basel-II has been a long time coming, and NOW is the due date.
If we consider C. Story's reports we realize that major U.S. banks have been involved for years in illegal off-the-books hanky panky involving vast sums (trillions) from various trusts. I think Basel-II would put an end to that.
Take a look at Story's report about this at: http://www.worldreports.org/news/112_bush_criminal_operation_to_sabotage_basel_ii
BUSH CRIMINAL OPERATION TO SABOTAGE BASEL II
U.S. CRIMINAL OPERATION TO SABOTAGE BASEL II
The US Dark Forces led by Godfather Bush Sr., George Bush 43, Mk-Ultra ('Himmler') Cheney, the 'late' Henry M. Paulson, the late Robert M. Kimmitt, and their collaborators and partners in High Crimes and Misdemeanours, former President William Jefferson Clinton and Hillary Rodomski Clinton, have been desperately seeking, with the enthusiastic assistance of their co-conspirator Robert Rubin at Citibank, and the other US criminal financial institutions led by the CIA's Bank of America, to torpedo the implementation of Basel II, since it defangs their corruption at the source, causing the criminal kleptocracy immense problems for the future.
CLICK HERE FOR MORE OF STORY RE: BASEL-II
Summary: the panic of Paulson, Bernanke, Bush, Cheney is because their crimes are close to being exposed. Those congressmen who have been bribed to ignore these crimes are also in a panic.