white collar crime final

15) How many family members of the Saudi Royals were flown out of Kentucky 2 days after 9/11?

- 142

2) General Charles Dawes, Dawes Bank, the Central Republic Bank and the Trust Company bank of Chicago

- Banks failed bc of FRAUD & INSIDER ABUSE, not bc of derivatives bc they did not exist. - The Central Republic Bank & Trust Co. of Chicago: received $90 mil loans from the RHC and $5 mil from other major banks. - In June 1932, Charles Dawes resigned as president of the Reconstruction Finance Corporation. A few weeks later directors of Chicago's Central Republic Bank and Trust Co. met to discuss an emergency, which threatened all Loop banks. After negotiations they came to $90 million "Dawes Loan." But this RFC money was not enough to keep Central Republic going. - After liquidation of the Central Republic Trust Co. Bank closed, Dawes opened the Dawes Bank.

1) The inhumane working conditions of the Emir of Dubai's immigrant workers (see video)

- Ben Anderson is a BBC reporter who went to Dubai to investigate working conditions. The immigrant men building all of Dubai's greatest buildings are essentially slaves. The immigrants' get their passports taken away right when they get there and do not get paid anywhere near the amount they were told. They now have a bondage to the company. - The government knows how bad the living conditions are and told them it was not up to code and fined them but the company did not do anything to try to change conditions.

11) Which US senator is a major player in declassifying the secret 28 pages of the 9/11 report?

- Bob Graham (FL)

3) Wall Street Under Oath: The Story of our Modern Money Changers

- Book written by Pecora 1939 - Details the investigations of the Pecora Commission 4) Banking holiday and the First 100 days of the Roosevelt Administration - Closed all banks to prevent a collapse of the banking system - FDR took measures to restore the public's confidence in the financial systems. - He addressed the effects of the Great Depression to initiate restoration

Samuel insull

- British born secretary of Thomas Edison - Served as VP and a board member of directors for Edison General Electric Co. - Resigned as VP of GE to accept the presidency of the Chicago Edison Company - Innovator and investor based in Chicago, who greatly contributed to creating an integrated electrical infrastructure in the US. - Elected President of the National Electric Light Assoc. - Known as the "Emperor of Chicago Utilities" - To help finance the great expansion, the utility industry exploited a financial innovation known as a holding company, a company that owns other companies' outstanding stock, purpose of company is to own shares of others to form a cooperate group. - Insull controlled an empire of $500 million with only $27 million in equity - His two largest bank creditors were Continental & Commercial Trust & Savings Bank and the Continental & Commercial National Bank of Chicago

3) Election of President Calvin Coolidge and VP Charles Dawes in 1924

- Coolidge began as VP, then president when Harding pass away, then in 1924 he was elected on his own. He had a reputation of a small town conservative. During his second term from 1925-29, was a period of rapid economic growth, the Roaring Twenties. - He left the admin's industrial policy in the hands of his Secretary of Commerce, Herbert Hoover. - Was opposed to regulation

12) When was the 2002 report released?

- December 9, 2014

Jesse Jones

- Democratic politician and entrepreneur from Houston - He served as US Secretary of Commerce from 1940-1945 - Franklin Roosevelt appointed Jones president of RFC from 1932-1945 where he took worthless assets of the Dawes bank and swapped them, eliminating loans on the Federal Gov's books - Owner of Houston Chronicle - Filed bankruptcy on all of his office buildings, then came back and used RFC money to buy out his creditors for 5 cents on the dollar. - Teamed up with Dawes - Dawes got the Republicans to bail him out, and Jones got the Democrats to bail out Dawes. - Became the most powerful man in the Roosevelt Administration

1) Election of FDR against Hoover in 1932

- FDR democrat won by a landslide - Public blamed Hoover for the depression

8) Bailout of Charles Dawes family and Jesse Jones Family

- Failures during 1932 were caused by massive fraud and insider abuse - Hoover was the first president to use government money to bail out large failing corporations, through the RFC.

10) Indicted of Samuel Insull

- His company collapsed during the Great Depression, wiping out life savings of 600,000 shareholders. This led to the enactment of the Public Utility Holding Company Act of 1935 - Conducted a Ponzi scheme in 1925 - His banks were NOT bailed out. He was blamed for everything in the Chicago crisis - Indicted and acquitted - US Senator Lawrence Sherman paid Insull monthly to keep on retainer for "personal reasons"

4) The UAE has been a key transfer point that Dubai has for illegal shipments of nuclear components to what countries?

- Iran, North Korea and Libya

5) What country supports the Arab League economic boycott and the UAE refuse to recognize as a country?

- Israel

6) Creation of the Reconstruction Finance Corporation (RFC)

- January 1932 RFC was formed under Hoover Admin in response to the consequences of the 1929 stock market crash. - Bailed out Jesse Jones, bailed out Charles Dawes, and did NOT bail our Samuel Insull. - Authorized the $90 mil in government loans to bail our the Central Republic Bank and Trust Co. of Chicago. Everyone claims the Dawes loan was paid back but only $45 mil was. - Dawes first had RFC bail out banks that owed money to his bank. - Hoover appointed Dawes as its president but only stayed for a few months in 1932 - Operated between 1932-57 and provided financial support to state and local governments and made loans to banks, railroads, mortgage assoc and other businesses. - The Federal Reserve's mission was to act as a lender of last resort to banks during the financial panics. The Reserve bank was not able to come up w a solution so the RFC was drafted. Even though government would own RFC, the staff was individuals not part of the civil service system. RFC could address problems of state charter bank and small city banks, unlike the Reserves - Goal was to boost the country's confidence and help banks return to performing daily functions after the start of the Great Depression. Operated through the New Deal - Dawes was not president for long before he resigned to attend to his bank in Chicago - Dawes resigns as president of RFC and then borrows $90 mil from RFC for the Dawes Bank in June 1932 - Abolished in 1953 by congress.

17) People that talked about concentration of wealth:

- Louis Brandeis, Ferdinand Pecora, Franklin Roosevelt, Elizabeth Warren

2) Bob Graham (former U.S. Senator from Florida), who was co-chairman of the 9/11 commission wants the 28 pages declassified (see his interview with Jesse Ventura)

- Obama Admin called for the classification of these pages - He says if we continue our passivity with Saudi, (bc they know that we know about the financing of 9/11) that it will result in national security issues bc it shows that are weak and won't take action against them. - The 28 classified pages are a good example of "Secrecy means impropriety" - Another good example are the records of Department of Treasury Henry Morgenthau was Secretary of Treasury dealing with Chase and Morgan Banks.

19) What might the 28 pages show, as talked about in class?

- Saudi Arabia was funding organizations like the Red Crescent society.

4) Election of Herbert Hoover in 1928

- Secretary of Commerce, Republican Herbert Hoover ran against Al Smith democratic. Neither had the wholehearted support of his party.

11) Samuel Insull Jr.

- Son of Samuel Insull - Indicted and acquitted - Spent the rest of his life trying to reconstruct history to preserve him and his father's name.

16) Official position of the US government on 9/11?

- The 19 hijackers acted alone

10) Who released the 2002 National Intelligence Estimate on "Iraq's Continuing Programs for Weapons of Mass Destruction"?

- The CIA

14) The 28 pages are supposed to contain info about what?

- The Saudi government involvement in 9/11

3) Who was 1 of 3 countries to recognize the Taliban as the legitimate government of Afghanistan?

- The UAE

7) Iran is one of the most important trading partners with who?

- The UAE (the mayor of Dubai). Trading with the enemy

6) What society funded the terrorist organization Hamas? (Designated terrorist group by the US)

- The UAE's Red Crescent Society

1) Who financed terrorism?

- The United Arab Emirates, Saudi Arabia, Qatar and Kuwait

2) The 9/11 commission concluded that "the vast majority" of the money used to fund the attacks flowed through where?

- The banks of DUBAI

13) What was the 2002 report used for?

- To justify Iraq War

18) What did Elizabeth Warren want the SEC to do?

- To require banks to disclose political spending to shareholders

2) The financing of terrorism by the United Arab Emirates (UAE), Saudi Arabia, Qatar, and Kuwait

- United Arab Emirates' Red Crescent Society has made donations to Palestinian charities that include groups working with Hamas, which has been designated as a terrorist organization by the US. Some donations were used to support families of suicide bombers operating in Israel.

8) Who said "our allies in the region were our largest problem in Syria: Turkey, Saudi Arabia, and the UAE poured millions of dollars into the Sunni extremists and provided thousands of weapons to al Qaeda and other militant groups fighting the Bashar Assad regime in Syria, which allowed for the rise of the Islamic state" ?

- VP Joe Biden

9) Joe Biden

- Vice President of US - Accidentally word vomited the truth: UAE and Saudi Arabia funded Sunni extremists. Also said Turkey allowed ISIS fighters to go across its borders. Biden was attacked and had to apologize to those countries

2) Ferdinand Pecora

- Was an assistant state attorney in NY before Wall Street investigations - American lawyer/ prosecutor - Did NOT work on supreme court - Fletcher appointed Pecora chairman of Fletcher Committee - Chief Counsel to the US Senate Committee on Banking that investigated Wall Street - Senate Committee finally went from republican to democrat in 1932 and appointed Pecora to really investigate Wall Street - In Jan 1933 Pecora cranked up investigations and brings big Wall Street bankers to US senate, which gained a lot of publicity - One of the people he investigated was Charles E. Mitchell, who was the head of what became Citigroup. Through the cross examination $2.4 mil loans were made to Mitchell and he also didn't pay any income tax (Wall Street guys who skipped out on paying income tax benefited from the stock market crash) - Pecora wrote book, "Wall Street Under Oath" - After Pecora's investigations and Roosevelt sworn in as president, they broke up big banks, which separated commercial from private - Glass-Steagall

Charles Dawes' life involvements: (In the order Vickers said in class, but not in perfect chronological order of time)

- Was comptroller of the currency under William McKinley (responsibility for chartering and regulating national banks) - Previous General during WWI - Banker/ Lawyer/ - First ever Director of the Budget of the US, appointed by Harding - Nobel Peace Price winner in 1924 - Chairman of Dawes Committee dealing with German Reparations after WWI - Became Vice President of US under Coolidge - Ambassador of England, appointed by Hoover - Founder of a state-chartered Loop bank - Became president of RFC, appointed by Hoover, for a few months then resigned 2 weeks before his colleagues approved the $90 mil bailout package. - Engaged in massive fraud during the operation of the bank and then engaged in massive fraud getting the bail out funds and paid back about half of the funds. - Dawes House in Chicago:

14) James Olsen

- Wrote book, "Saving Capitalism: A Reconstruction Corporation" This book said that Hoover faced a choice - save Dawes Bank or reside over the destruction of the entire US banking system. - Wrote book, "Herbert Hoover and the Reconstruction Finance Corporation, 1931-1933" - Historian who wrote a very sympathetic account of Jesse Jones and RFC. He also said Dawes Loan was paid back, in full with interest and was adequately secured. - The Dawes loan was made out to the old Dawes banks, Republic Bank and Trust Co. but went straight through them and went to the City National Bank, the new Dawes bank, and the old bank had to pay off the loan bc the new Dawes bank had no obligations.

12) Forrest McDonald

- Wrote book, Insull - Hired/paid by Insull Jr. and they cut a deal with the Chicago Press to get it published

13) Bascom Timmons

- Wrote book, Portrait of an American: Charles G. Dawes - Wrote book, Jesse H. Jones: The Man and the Statesman - Both books state that the Dawes loan was paid back, in full with interest- that's how you create history. - Washington correspondent/reporter for the Houston Chronicle, which was owned by Jones - Timmons accepted loans from Henry Dawes that were never paid back

5) New Deal Legislation of 1933

A. Passage of the Glass-Steagall legislation: aka the Banking Act of 1933. Separated commercial from investment banking, banned use of bank deposits and created deposit insurance, FDIC B. Emergency Banking Act reopened sound banks. Act gave authority to develop a program of rehabilitation of banking facilities and allows the 12 Federal Reserve Banks to issue additional currency on good assets. Act broadened powers of a president during a banking crisis C. Securities Act of 1933; a disclosure law inspired by Louis Brandeis's Other People's Money and How the Bankers Use it- published in 1914. First major federal legislation to regulate the offer and sale of securities D. Securities and Exchange Commission was created in 1934; SEC has the mission to protect investors, maintain fair, orderly and efficient markets, and facilitate capital formation. *Created bc of the Pecora investigations + Allan Greenspan said "infectious greed seem to grip much of the business community." Securities Act evolved from those sort of ideas. + Franklin Roosevelt said, "Concentration of wealth is dangerous but the concentration of political wealth is even worse"

Summary of the Dawes Bank fraud

When Dawes was president of RFC, he sat in Washington with the democrat, Jesse Jones from Jan to June of 1932 and formed an alliance during that short time as president. Dawes was bailing out Jones' banks/real estate companies. Jones was bailing out Dawes' bank by loaning money to all of the affiliates of the bank but it got to the point where Dawes bank was totally insolvent so he resigned and went to Chicago to demand $90 mil from the RFC. Jones was back in Washington pushing Dawes' loan forward. They raised $95 million, $5 from private companies and $90 from the RFC. They needed that amount bc that was the exact amount of deposits that the Dawes Bank had. There was a law saying the collateral had to be sufficient but his collateral was worthless (bad loans) and Dawes put them up anyways then swore they were sufficient to secure the loan. They tried to manipulate it but half of the loan was liquidated/lost. Historians falsely say that his loan was paid off!!