Wendy Gramm is Criminal, CFTC is Corrupt

8/8/2019 Wendy Gramm is Criminal, CFTC is Corrupt

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Wendy Gramm, Judge Bruce Levine & Criminal

Behavior At The CFTC -- Attention Eric Holder,

Federal Prosecutors
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The CFTC and Wendy

Gramm are in violation ofTitle 18 U.S.C. 1501-1525.


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Following links details all of the legitimate subprime

cases erroneously tossed out by judges (not even a

chance to be heard by a jury)

http://www.dandodiary.com/2010/06/articles/subprime-

litigation/an-updated-analysis-of-subprime-securities-

suit-dismissal-motions/


litigation/the-list-subprime-lawsuit-dismissals-and-

denials/index.html

http://www.skadden.com/content/Publications/Publicati

ons1962_0.pdf

Wendy Gramm and the CFTC(U.S. Commodity Futures

Trading Commission )are in violation of Title 18 U.S.C.

1501-1525

Obstruction of justice is the impediment of

governmental activities. There are a host of federal

criminal laws that prohibit obstructions of justice. Thesix most general outlaw obstruction of judicial

proceedings (18 U.S.C. 1503), witness tampering (18

U.S.C. 1512), witness retaliation (18 U.S.C. 1513),

obstruction of Congressional or administrative

proceedings (18 U.S.C. 1505), conspiracy to defraud the

United States (18 U.S.C. 371), and contempt (a creature

of statute, rule and

common law)."

http://www.fas.org/sgp/crs/misc/RL34303.pdf
http://www.dandodiary.com/2010/06/articles/subprime-litigation/an-updated-analysis-of-subprime-securities-suit-dismissal-motions/http://www.dandodiary.com/2010/06/articles/subprime-litigation/an-updated-analysis-of-subprime-securities-suit-dismissal-motions/http://www.dandodiary.com/2010/06/articles/subprime-litigation/an-updated-analysis-of-subprime-securities-suit-dismissal-motions/http://www.dandodiary.com/2008/06/articles/subprime-litigation/the-list-subprime-lawsuit-dismissals-and-denials/index.htmlhttp://www.dandodiary.com/2008/06/articles/subprime-litigation/the-list-subprime-lawsuit-dismissals-and-denials/index.htmlhttp://www.dandodiary.com/2008/06/articles/subprime-litigation/the-list-subprime-lawsuit-dismissals-and-denials/index.htmlhttp://www.skadden.com/content/Publications/Publications1962_0.pdfhttp://www.skadden.com/content/Publications/Publications1962_0.pdfhttp://www.fas.org/sgp/crs/misc/RL34303.pdfhttp://www.dandodiary.com/2010/06/articles/subprime-litigation/an-updated-analysis-of-subprime-securities-suit-dismissal-motions/http://www.dandodiary.com/2010/06/articles/subprime-litigation/an-updated-analysis-of-subprime-securities-suit-dismissal-motions/http://www.dandodiary.com/2010/06/articles/subprime-litigation/an-updated-analysis-of-subprime-securities-suit-dismissal-motions/http://www.dandodiary.com/2008/06/articles/subprime-litigation/the-list-subprime-lawsuit-dismissals-and-denials/index.htmlhttp://www.dandodiary.com/2008/06/articles/subprime-litigation/the-list-subprime-lawsuit-dismissals-and-denials/index.htmlhttp://www.dandodiary.com/2008/06/articles/subprime-litigation/the-list-subprime-lawsuit-dismissals-and-denials/index.htmlhttp://www.skadden.com/content/Publications/Publications1962_0.pdfhttp://www.skadden.com/content/Publications/Publications1962_0.pdfhttp://www.fas.org/sgp/crs/misc/RL34303.pdf


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If you haven't heard this story yet, be prepared for a new

realm of outrage. When you read this keep in mind that theCFTC has only 2 judges.

Quietly last month, CFTC Case Judge, George H. Painter,issued a "Notice and Order" announcing his retirementfrom his position. In this notice Judge Painter wrote of a


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conspiracy at the highest levels of the CFTC

(within the enforcement division), where a long

time judge of 20 years has been working with past

CFTC Chairs to rig the enforcement of the law bynever (not once in 20 years) finding anyone guilty ofmarket manipulation. We must be talking about

tens of thousands of cases, to put the size of these

crimes in scope.

Here are Judge Painter's words:

"There are two administrative law judges at the

Commodity Futures Trading Commission: myself and the

Honorable Bruce Levine. On Judge Levine's first week

on the job, nearly twenty years ago, he came into my

office andstatedthat he had promised Wendy

Gramm, then Chairwoman of the Commission, that

we would never rule in a complainant's favor. Areview of his rulings will confirm that he has fulfilled hisvow. Judge Levine, in the cynical guise of enforcing the

rules, forces pro se complaints to run a hostile procedural

gauntlet until they lose hope, and either withdraw their

complaint or settle for a pittance, regardless of the merits

of the case"

"In light of these unfortunate facts, if I simplyannounced my intention to retire, the seven reparation

cases on my docket would be reassigned to the only other

administrative law judge of the Commission, Judge

Levine. This I cannot do in good conscience.


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Accordingly, I recommend that the Commission request

the services of an administrative law judge to be detailed

to the Commission from another agency."

His request was granted, and his cases were not assigned toJudge Levine.

Wendy Gramm is a former Enron board member, andformer head of the CFTC (1988-1993), and the wife ofderegulation neocon Phil Gramm. Here's what BarryRitholtz said about Wendy Gramm:

A reminder to those of you who may be unfamiliar withthis particular corporate harlot: Gramm was not only theformer CFTC chair, but she was an Enron board member

and wife of deregulation architect Phill Gramm, who for

reasons unknown to decent society, is gainfully employed

as a fluffer at UBS, helping to further besmirch the

reputation of that bailed out firm.

Nice one, Barry!

Levine Notice - pdf

Read Judge Painter Retirement Letter, WSJ Article on

Judge Lynch below:

http://dailybail.com/home/wendy-gramm-judge-bruce-levine-criminal-behavior-at-the-cftc.html
http://en.wikipedia.org/wiki/Wendy_Lee_Grammhttp://futuresmag.com/SiteCollectionDocuments/Guides_PDFs/Judge%20Painter%20Notice%20and%20Order.DCpdf.pdfhttp://dailybail.com/home/wendy-gramm-judge-bruce-levine-criminal-behavior-at-the-cftc.htmlhttp://dailybail.com/home/wendy-gramm-judge-bruce-levine-criminal-behavior-at-the-cftc.htmlhttp://en.wikipedia.org/wiki/Wendy_Lee_Grammhttp://futuresmag.com/SiteCollectionDocuments/Guides_PDFs/Judge%20Painter%20Notice%20and%20Order.DCpdf.pdfhttp://dailybail.com/home/wendy-gramm-judge-bruce-levine-criminal-behavior-at-the-cftc.htmlhttp://dailybail.com/home/wendy-gramm-judge-bruce-levine-criminal-behavior-at-the-cftc.html


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CFTC judge claims colleagueissued biased rulings

Published 10/14/2010

By DANIEL P. COLLINS

Commodity Futures Trading Commission (CFTC)

Administrative Law Judge George H. Paintermade serious allegations regarding fellow CFTC

judge Bruce Levine in announcing his retirement.

In a notice sent to complainants and theirattorneys, Judge Painter claims that Levine toldhim that he had promised former CFTC ChairWendy Gramm that he would never rule in a

complainants favor. Painters notice goes on tosay, A review of his rulings will confirm that hehas fulfilled his vow.

In the notice Painter recommends the CFTCrequest the services of an administrative law

judge to be detailed to the Commission from

another regulatory agency to handle the remaincases on his docket. Painter writes, If I simplyannounced my intention to retire, the sevenreparation cases on my docket would bereassigned to the only other administrative law
http://futuresmag.com/Pages/Futures-Magazine-Author.aspx?key=DANIEL%20P.%20COLLINShttp://futuresmag.com/SiteCollectionDocuments/Guides_PDFs/Judge%20Painter%20Notice%20and%20Order.DCpdf.pdfhttp://futuresmag.com/Pages/Futures-Magazine-Author.aspx?key=DANIEL%20P.%20COLLINShttp://futuresmag.com/SiteCollectionDocuments/Guides_PDFs/Judge%20Painter%20Notice%20and%20Order.DCpdf.pdf


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unimaginable to think any worse of Wall Street or itsrelated institutions along comes a story that outragesyou even more.

Futures magazine had an article last week about theretirement letterthat Commodity Futures TradingCommission (CFTC) Administrative Law Judge GeorgePainter sent announcing his retirement.

In the letter, he announces that his fellow admin judge hasnever awarded a case to a plaintiff in 20 years, and that he

did so at the urging of former CFTC Chair Wendy Gramm.A reminder to those of you who may be unfamiliar withthis particular corporate harlot: Gramm was not only theformer CFTC chair, but she was an Enron board memberand wife of deregulation architect Phill Gramm, who forreasons unknown to decent society, is gainfully employedas a fluffer at UBS, helping to further besmirch the

reputation of that bailed out firm.

In a notice sent to complainants and their attorneys, JudgePainter claims that Levine told him that he had promisedformer CFTC Chair Wendy Gramm that he would neverrule in a complainants favor. Painters notice goes on tosay, A review of his rulings will confirm that he hasfulfilled his vow.

In the notice Painter recommends the CFTC request theservices of an administrative law judge to be detailed to theCommission from another regulatory agency to handle theremain cases on his docket. Painter writes, If I simply
http://www.futuresmag.com/News/2010/10/Pages/CFTC-judge-claims-colleague-is-biased-.aspxhttp://www.ritholtz.com/blog/2010/10/judge-painter-retirement-letter-wsj-article-on-judge-lynch/http://www.futuresmag.com/News/2010/10/Pages/CFTC-judge-claims-colleague-is-biased-.aspxhttp://www.ritholtz.com/blog/2010/10/judge-painter-retirement-letter-wsj-article-on-judge-lynch/


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announced my intention to retire, the seven reparation caseson my docket would be reassigned to the only otheradministrative law judge at the Commission, Judge Levine.

This I could not do in good conscience.Now, if that isnt weird enough, the WSJ has an a article intodays paper that can only be described as a hit piece. Theaccusations of mental unfitness and heavy drinking comefrom the Judges wife in the middle of divorce proceedings.

I wrote to Sarah Lynch, asking how the Journal could do a

story on this retiring judge accusing him of being adrunk and mentally unfit but omit his most explosivecharges against his fellow judge and the CFTC chairWendy Gramm. In the Sept. 17 document, Judge Paintersaid he plans to step down in January and asked theagency to transfer his pending cases to an outside judge

instead of Judge Levine. That hardly does justice to theJudges retirement note, and completely omits his charge

against former CFTC chair.

Lynch wrote back to note she did a story on the judge lastFriday, but it ran on newswires but was not picked up byWSJ. (Reporters have no control over those editorialdecision). The current article is a follow up to that priorpiece.

I did a WSJ search for CFTC Judge seeing when in thepast they had covered obscure administrative judges in thepast, and other than todays article, nothing came else wasfound (Journal search apparently only goes back 2 years).


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There is much more to this story, and the chiefadministrative law judge and/or the US Attorney shouldinvestigate these charges.

UPDATE October 21, 2010 10:31am:

The editors at the WSJ did Sarah Lynch a disservice herpiece from today is out of context without the prior article(excerpted below). And she notes that the details in herpiece came form the guardianship case not the divorcefiling.

As a standalone article, it reads like a hit piece, with lots ofholes and missing factors, but within the context of theprior piece, it makes more sense. The missing items are inthe previous article:

A retiring administrative law judge has asked theCommodity Futures Trading Commission to prevent hiscolleague from ruling on his leftover cases, sayinginvestors wont get a fair shake.

CFTC Administrative Law Judge George Painter, in a letterreleased Wednesday, accused fellow CFTC administrativelaw judge Bruce Levine of bias in his handling ofcomplaints by investors against their futures brokers.

The notice, received by the CFTCs Office of Proceedings,asks the CFTC to formally request a judge from anotherfederal agency to take up his seven remaining cases insteadof reassigning them to Levine.


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In a highly unusual public rebuke of his colleague, Painterrails against the way Levine has handled cases involvinginvestors who dont have attorneys and come to the

commission with grievances against their brokers.Painter claims Levine told him nearly 20 years ago that hepromised then-CFTC Chairman Wendy Gramm hed neverrule in favor of a complainant.

A review of his rulings will confirm that he has fulfilledhis vow, Painter wrote. He added that Levine forces

plaintiffs without legal representation to run a hostilegauntlet until they lose hope, and either withdraw theircomplaint or settle for a pittance, regardless of the merits ofthe case.

Judge Levine declined to comment about Paintersallegations and a CFTC spokesman also declined tocomment. But former CFTC attorney Robert Zwirb, who

also worked at the agency during Gramms tenure,defended Levines record and said Painters letter isnothing more than a political attack.

The allegation that Judge Painter makes is like a patheticcaricature, said Zwirb, an attorney at Cadwalader,Wickersham & Taft. Its really aimed at the person thatappointed himWendy Gramm. Its so absurd. No

chairman of either partywould enter into some kind ofunderstanding like that.


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Deregulator Looks Back, Unswayed

Lisa Krantz for The New York Times

During his time in the Senate, Phil Gramm led the fight

against more government intervention in the financial

markets.

By ERIC LIPTON and STEPHEN LABATONPublished: November 16, 2008
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WASHINGTON Back in 1950 in Columbus, Ga., ayoung nurse working double shifts to support her three

children and disabled husband managed to buy a

modest bungalow on a street called Dogwood Avenue.Articles in this series are exploring the causes of the financial crisis.

Previous Articles in the Series

Related

Gramm and the Enron Loophole

A look at how Enron closely monitored Senator Phil Gramms handling of 2000

legislation that offered it a loophole fending off regulation.

Times Topics: Phil Gramm

The senator often spoke of his mothers buying their home.
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President Clinton signed the Gramm-Leach-Bliley Act in November 1999.Senator Gramm, second from left, proudly declared it a deregulatory bill,and added, We have learned government is not the answer.

Phil Gramm, the former United States senator, often

told that story of how his mother acquired his childhood

home. Considered something of a risk, she took out amortgage with relatively high interest rates that he

likened to todays subprime loans.

A fierce opponent of government intervention in the

marketplace, Mr. Gramm, a Republican from Texas,

recalled the episode during a 2001 Senate debate over a

measure to curb predatory lending. What some view as

exploitive, he argued, others see as a gift.

Some people look at subprime lending and see evil. I

look at subprime lending and I see the American dream

in action, he said. My mother lived it as a result of a
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finance company making a mortgage loan that a bank

would not make.

On Capitol Hill, Mr. Gramm became the most effective

proponent of deregulation in a generation, by dint of his

expertise (a Ph.D in economics), free-market ideology,

perch on the Senate banking committee and force of

personality (a writer in Texas once called him a

snapping turtle). And in one remarkable stretch from

1999 to 2001, he pushed laws and promoted policies that

he says unshackled businesses from needless restraints

but his critics charge significantly contributed to thefinancial crisis that has rattled the nation.

He led the effort to block measures curtailing deceptive

or predatory lending, which was just beginning to result

in a jump in home foreclosures that would undermine

the financial markets. He advanced legislation that

fractured oversight of Wall Street while knocking down

Depression-era barriers that restricted the rise andreach of financial conglomerates.

And he pushed through a provision that ensured

virtually no regulation of the complex financial

instruments known as derivatives, including credit

swaps, contracts that would encourage risky investment

practices at Wall Streets most venerable institutions

and spread the risks, like a virus, around the world.

Many of his deregulation efforts were backed by the

Clinton administration. Other members of Congress

who collectively received hundreds of millions of dollars
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in campaign contributions from financial industry

donors over the last decade also played roles.

Many lawmakers, for example, insisted that Fannie

Mae and Freddie Mac, the nations largest mortgage

finance companies, take on riskier mortgages in an

effort to aid poor families. Several Republicans resisted

efforts to address lending abuses. And Congressional

committees failed to address early symptoms of the

coming illness.

But, until he left Capitol Hill in 2002 to work as aninvestment banker and lobbyist for UBS, a Swiss bank

that has been hard hit by the market downturn, it was

Mr. Gramm who most effectively took up the fight

against more government intervention in the markets.

Phil Gramm was the great spokesman and leader of

the view that market forces should drive the economy

without regulation, said James D. Cox, a corporate lawscholar at Duke University. The movement he helped

to lead contributed mightily to our problems.

In two recent interviews, Mr. Gramm described the

current turmoil as an incredible trauma, but said he

was proud of his record.

He blamed others for the crisis: Democrats whodropped barriers to borrowing in order to promote

homeownership; what he once termed predatory

borrowers who took out mortgages they could not

afford; banks that took on too much risk; and large
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financial institutions that did not set aside enough

capital to cover their bad bets.

But looser regulation played virtually no role, he

argued, saying that is simply an emerging myth.

There is this idea afloat that if you had more

regulation you would have fewer mistakes, he said. I

dont see any evidence in our history or anybody elses

to substantiate it. He added, The markets have

worked better than you might have thought.

Rejecting Common Wisdom

Mr. Gramm sees himself as a myth buster, and has long

argued that economic events are misunderstood.

Before entering politics in the 1970s, he taught at Texas

A & M University. He studied the Great Depression,

producing research rejecting the conventional wisdom

that suicides surged after the market crashed. Heexamined financial panics of the 19th century,

concluding that policy makers and economists had

repeatedly misread events to justify burdensome

regulation.

There is always a revisionist history that tries to claim

that the system has failed and what we need to do ishave government run things, he said.

From the start of his career in Washington, Mr.

Gramm aggressively promoted his conservative

ideology and free-market beliefs. (He was so insistent
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about having his way that one House speaker joked that

if Mr. Gramm had been around when Moses brought

the Ten Commandments down from Mount Sinai, the

Texan would have substituted his own.)

He could be impolitic. Over the years, he has urged that

food stamps be cut because all our poor people are

fat, said it was hard for him to feel sorry for Social

Security recipients and, as the economy soured last

summer, called America a nation of whiners.

His economic views and seat on the Senate bankingcommittee quickly won him support from the

nations major financial institutions. From 1989 to

2002, federal records show, he was the top recipient of

campaign contributions from commercial banks and in

the top five for donations from Wall Street. He and his

staff often appeared at industry-sponsored speaking

events around the country.

From 1999 to 2001, Congress first considered steps to

curb predatory loans those that typically had high

fees, significant prepayment penalties and ballooning

monthly payments and were often issued to low-income

borrowers. Foreclosures on such loans were on the rise,

setting off a wave ofpersonal bankruptcies.

But Mr. Gramm did everything he could to block themeasures. In 2000, he refused to have his banking

committee consider the proposals, an intervention

hailed by the National Association of Mortgage Brokers

as a huge, huge step for us.
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A year later, he objected again when Democrats tried to

stop lenders from being able to pursue claims in

bankruptcy court against borrowers who had defaulted

on predatory loans.

While acknowledging some abuses, Mr. Gramm argued

that the measure would drive thousands of reputable

lenders out of the housing market. And he told fellow

senators the story of his mother and her mortgage.

What incredible exploitation, he said sarcastically.

As a result of that loan, at a 50 percent premium, sofar as I am aware, she was the first person in her family,

from Adam and Eve, ever to own her own home.

Once again, he succeeded in putting off consideration of

lending restrictions. His opposition infuriated consumer

advocates. He wouldnt listen to reason, said Margot

Saunders of the National Consumer Law Center. He

would not allow himself to be persuaded that the freemarket would not be working.

Speaking at a bankers conference that month, Mr.

Gramm said the problem of predatory loans was not of

the banks making. Instead, he faulted predatory

borrowers. The American Banker, a trade publication,

later reported that he was greeted like a conquering

hero.

At the Altar of Wall Street


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Mr. Gramm would sometimes speak with reverence

about the nations financial markets, the trading and

deal making that churn out wealth.

When I am on Wall Street and I realize that thats the

very nerve center of American capitalism and I realize

what capitalism has done for the working people of

America, to me thats a holy place, he said at an April

2000 Senate hearing after a visit to New York.

That viewpoint and concerns that Wall Streets

dominance was threatened by global competition andoutdated regulations shaped his agenda.

In late 1999, Mr. Gramm played a central role in what

would be the most significant financial services

legislation since the Depression. The Gramm-Leach-

Bliley Act, as the measure was called, removed barriers

between commercial and investment banks that had

been instituted to reduce the risk of economiccatastrophes. Long sought by the industry, the law

would let commercial banks, securities firms and

insurers become financial supermarkets offering an

array of services.

The measure, which Mr. Gramm helped write and

move through the Senate, also split up oversight of

conglomerates among government agencies. TheSecurities and Exchange Commission, for example,

would oversee the brokerage arm of a company. Bank

regulators would supervise its banking operation. State

insurance commissioners would examine the insurance


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business. But no single agency would have authority

over the entire company.

There was no attention given to how these regulators

would interact with one another, said Professor Cox of

Duke. Nobody was looking at the holes of the

regulatory structure.

The arrangement was a compromise required to get the

law adopted. When the law was signed in November

1999, he proudly declared it a deregulatory bill, and

added, We have learned government is not theanswer.

In the final days of the Clinton administration a year

later, Mr. Gramm celebrated another triumph.

Determined to close the door on any future regulation

of the emerging market of derivatives and swaps, he

helped pushed through legislation that accomplished

that goal.

Created to help companies and investors limit risk,

swaps are contracts that typically work like a form of

insurance. A bank concerned about rises in interest

rates, for instance, can buy a derivatives instrument

that would protect it from rate swings. Credit-default

swaps, one type of derivative, could protect the holder

of a mortgage security against a possible default.

Earlier laws had left the regulation issue sufficiently

ambiguous, worrying Wall Street, the Clinton

administration and lawmakers of both parties, who
http://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_default_swaps/index.html?inline=nyt-classifierhttp://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_default_swaps/index.html?inline=nyt-classifierhttp://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_default_swaps/index.html?inline=nyt-classifierhttp://topics.nytimes.com/top/reference/timestopics/subjects/c/credit_default_swaps/index.html?inline=nyt-classifier


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argued that too many restrictions would hurt financial

activity and spur traders to take their business overseas.

And while the Commodity Futures Trading

Commission under the leadership of Mr. Grammswife, Wendy had approved rules in 1989 and 1993

exempting some swaps and derivatives from regulation,

there was still concern that step was not enough.

After Mrs. Gramm left the commission in 1993, several

lawmakers proposed regulating derivatives. By

spreading risks, they and other critics believed, such

contracts made the system prone to cascading failures.Their proposals, though, went nowhere.

But late in the Clinton administration, Brooksley E.

Born, who took over the agency Mrs. Gramm once led,

raised the issue anew. Her suggestion for government

regulations alarmed the markets and drew fierce

opposition.

In November 1999, senior Clinton administration

officials, including Treasury Secretary Lawrence H.

Summers, joined by the Federal Reserve chairman,

Alan Greenspan, and Arthur Levitt Jr., the head of the

Securities and Exchange Commission, issued a report

that instead recommended legislation exempting many

kinds of derivatives from federal oversight.

Mr. Gramm helped lead the charge in Congress.

Demanding even more freedom from regulators than

the financial industry had sought, he persuaded

colleagues and negotiated with senior administration
http://topics.nytimes.com/top/reference/timestopics/organizations/c/commodity_futures_trading_commission/index.html?inline=nyt-orghttp://topics.nytimes.com/top/reference/timestopics/organizations/c/commodity_futures_trading_commission/index.html?inline=nyt-orghttp://topics.nytimes.com/top/reference/timestopics/people/s/lawrence_h_summers/index.html?inline=nyt-perhttp://topics.nytimes.com/top/reference/timestopics/people/s/lawrence_h_summers/index.html?inline=nyt-perhttp://topics.nytimes.com/top/reference/timestopics/people/g/alan_greenspan/index.html?inline=nyt-perhttp://topics.nytimes.com/top/reference/timestopics/people/l/arthur_jr_levitt/index.html?inline=nyt-perhttp://topics.nytimes.com/top/reference/timestopics/organizations/c/commodity_futures_trading_commission/index.html?inline=nyt-orghttp://topics.nytimes.com/top/reference/timestopics/organizations/c/commodity_futures_trading_commission/index.html?inline=nyt-orghttp://topics.nytimes.com/top/reference/timestopics/people/s/lawrence_h_summers/index.html?inline=nyt-perhttp://topics.nytimes.com/top/reference/timestopics/people/s/lawrence_h_summers/index.html?inline=nyt-perhttp://topics.nytimes.com/top/reference/timestopics/people/g/alan_greenspan/index.html?inline=nyt-perhttp://topics.nytimes.com/top/reference/timestopics/people/l/arthur_jr_levitt/index.html?inline=nyt-per


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officials, pushing so hard that he nearly scuttled the

deal. When I get in the red zone, I like to score, Mr.

Gramm told reporters at the time.

Finally, he had extracted enough. In December 2000,

the Commodity Futures Modernization Act was passed

as part of a larger bill by unanimous consent after Mr.

Gramm dominated the Senate debate.

This legislation is important to every American

investor, he said at the time. It will keep our markets

modern, efficient and innovative, and it guarantees thatthe United States will maintain its global dominance of

financial markets.

But some critics worried that the lack of oversight

would allow abuses that could threaten the economy.

Frank Partnoy, a law professor at the University of San

Diego and an expert on derivatives, said, No one,including regulators, could get an accurate picture of

this market. The consequences of that is that it left us in

the dark for the last eight years. And, he added, Bad

things happen when its dark.

In 2002, Mr. Gramm left Congress, joining UBS as a

senior investment banker and head of the companys

lobbying operation.

But he would not be abandoning Washington.

Lobbying From the Outside


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Soon, he was helping persuade lawmakers to block

Congressional Democrats efforts to combat predatory

lending. He arranged meetings with executives and top

Washington officials. He turned over his $1 millionpolitical action committee to a former aide to make

donations to like-minded lawmakers.

Mr. Gramm, now 66, who declined to discuss his

compensation at UBS, picked an opportune moment to

move to Wall Street. Major financial institutions,

including UBS, were growing, partly as a result of the

Gramm-Leach-Bliley Act.

Increasingly, institutions were trading the derivatives

instruments that Mr. Gramm had helped escape the

scrutiny of regulators. UBS was collecting hundreds of

millions of dollars from credit-default swaps. (Mr.

Gramm said he was not involved in that activity at the

bank.) In 2001, a year after passage of the commodities

law, the derivatives market insured about $900 billionworth of credit; by last year, the number hadswelled to

$62 trillion.

But as housing prices began to fall last year, foreclosure

rates began to rise, particularly in regions where there

had been heavy use of subprime loans. That set off a

calamitous chain of events. The weak housing markets

would create strains that eventually would have

financial institutions around the world on the edge of

collapse.


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UBS was among them. The bank has declared nearly

$50 billion in credit losses and write-downs since the

start of last year, prompting a bailout of up to $60

billion by the Swiss government.

As Mr. Gramms record in Congress has come under

attack amid all the turmoil, some former colleagues

have come to his defense.

He is a true dyed-in-the-wool free-market guy. He is

very much a purist, an idealist, as he has a set of

principles and he has never abandoned them, saidPeter G. Fitzgerald, a Republican and former senator

from Illinois. This notion of blaming the economic

collapse on Phil Gramm is absurd to me.

But Michael D. Donovan, a former S.E.C. lawyer,

faulted Mr. Gramm for his insistence on deregulating

the derivatives market.

He was the architect, advocate and the most

knowledgeable person in Congress on these topics, Mr.

Donovan said. To me, Phil Gramm is the single most

important reason for the current financial crisis.

Mr. Gramm, ever the economics professor, disputes his

critics analysis of the causes of the upheaval. He asserts

that swaps, by enabling companies to insure themselvesagainst defaults, have diminished, not increased, the

effects of the declining housing markets.

This is part of this myth of deregulation, he said in

the interview. By and large, credit-default swaps have
http://topics.nytimes.com/top/reference/timestopics/people/f/peter_g_fitzgerald/index.html?inline=nyt-perhttp://topics.nytimes.com/top/reference/timestopics/people/f/peter_g_fitzgerald/index.html?inline=nyt-per


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distributed the risks. They didnt create it. The only

reason people have focused on them is that some

politicians dont know a credit-default swap from a

turnip.

But many experts disagree, including some of Mr.

Gramms former allies in Congress. They say the lack

of oversight left the system vulnerable.

The virtually unregulated over-the-counter market in

credit-default swaps has played a significant role in the

credit crisis, including the now $167 billion taxpayerrescue of A.I.G., Christopher Cox, the chairman of the

S.E.C. and a former congressman, said Friday.

Mr. Gramm says that, given what has happened, there

are modest regulatory changes he would favor,

including requiring issuers of credit-default swaps to

demonstrate that they have enough capital to back up

their pledges. But his belief that government shouldintervene only minimally in markets is unshaken.

They are saying there was 15 years of massive

deregulation and thats what caused the problem, Mr.

Gramm said of his critics. I just dont see any evidence

of it.

Griff Palmer contributed reporting from New York.

http://www.nytimes.com/2008/11/17/business/economy/17gramm.html?_r=1&pagewanted=all
http://topics.nytimes.com/top/reference/timestopics/people/c/christopher_cox/index.html?inline=nyt-perhttp://www.nytimes.com/2008/11/17/business/economy/17gramm.html?_r=1&pagewanted=allhttp://www.nytimes.com/2008/11/17/business/economy/17gramm.html?_r=1&pagewanted=allhttp://topics.nytimes.com/top/reference/timestopics/people/c/christopher_cox/index.html?inline=nyt-perhttp://www.nytimes.com/2008/11/17/business/economy/17gramm.html?_r=1&pagewanted=allhttp://www.nytimes.com/2008/11/17/business/economy/17gramm.html?_r=1&pagewanted=all


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================

The CFTC and Wendy

Gramm are in violation of

Title 18 U.S.C. 1501-1525.

Here is a website (linked by Lexus Nexis) detailing all of

the legitimate subprime cases erroneously tossed out by

judges (not even a chance to be heard by a jury)

Special thanks to Jon Eisenberg for providing a copy of

his article.


litigation/an-updated-analysis-of-subprime-securities-

suit-dismissal-motions/


litigation/the-list-subprime-lawsuit-dismissals-and-

denials/index.html

http://www.skadden.com/content/Publications/Publications1962_0.pdf

Wendy Gramm and the CFTC are in violation of Title

18 U.S.C. 1501-1525
http://www.dandodiary.com/2010/06/articles/subprime-litigation/an-updated-analysis-of-subprime-securities-suit-dismissal-motions/http://www.dandodiary.com/2010/06/articles/subprime-litigation/an-updated-analysis-of-subprime-securities-suit-dismissal-motions/http://www.dandodiary.com/2010/06/articles/subprime-litigation/an-updated-analysis-of-subprime-securities-suit-dismissal-motions/http://www.dandodiary.com/2008/06/articles/subprime-litigation/the-list-subprime-lawsuit-dismissals-and-denials/index.htmlhttp://www.dandodiary.com/2008/06/articles/subprime-litigation/the-list-subprime-lawsuit-dismissals-and-denials/index.htmlhttp://www.dandodiary.com/2008/06/articles/subprime-litigation/the-list-subprime-lawsuit-dismissals-and-denials/index.htmlhttp://www.skadden.com/content/Publications/Publications1962_0.pdfhttp://www.skadden.com/content/Publications/Publications1962_0.pdfhttp://www.dandodiary.com/2010/06/articles/subprime-litigation/an-updated-analysis-of-subprime-securities-suit-dismissal-motions/http://www.dandodiary.com/2010/06/articles/subprime-litigation/an-updated-analysis-of-subprime-securities-suit-dismissal-motions/http://www.dandodiary.com/2010/06/articles/subprime-litigation/an-updated-analysis-of-subprime-securities-suit-dismissal-motions/http://www.dandodiary.com/2008/06/articles/subprime-litigation/the-list-subprime-lawsuit-dismissals-and-denials/index.htmlhttp://www.dandodiary.com/2008/06/articles/subprime-litigation/the-list-subprime-lawsuit-dismissals-and-denials/index.htmlhttp://www.dandodiary.com/2008/06/articles/subprime-litigation/the-list-subprime-lawsuit-dismissals-and-denials/index.htmlhttp://www.skadden.com/content/Publications/Publications1962_0.pdfhttp://www.skadden.com/content/Publications/Publications1962_0.pdf


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Obstruction of justice is the impediment of

governmental activities. There are a host of federal

criminal laws that prohibit obstructions of justice. The

six most general outlaw obstruction of judicialproceedings (18 U.S.C. 1503), witness tampering (18

U.S.C. 1512), witness retaliation (18 U.S.C. 1513),

obstruction of Congressional or administrative

proceedings (18 U.S.C. 1505), conspiracy to defraud the

United States (18 U.S.C. 371), and contempt (a creature

of statute, rule and

common law)."

http://www.fas.org/sgp/crs/misc/RL34303.pdf

Traditionally, obtaining or extorting money illegally or

carrying on illegal business activities, usually by

Organized Crime . A pattern of illegal activity carried

out as part of an enterprise that is owned or controlled

by those who are engaged in the illegal activity. The

latter definition derives from the federal RacketeerInfluenced and Corruption Organizations Act (RICO),

a set of laws (18 U.S.C.A. 1961 et seq. [1970])

specifically designed to punish racketeering by business

enterprises.

http://legal-

dictionary.thefreedictionary.com/Racketeering

I KNOW hedgefund managersthat tried to report the

sale of UNCOLLATERALIZED "collateralized" debt

obligations by subprime dealers to the Commodities

Futures Trading Commission (CFTC). They "never
http://www.fas.org/sgp/crs/misc/RL34303.pdfhttp://legal-dictionary.thefreedictionary.com/Racketeeringhttp://legal-dictionary.thefreedictionary.com/Racketeeringhttp://www.fas.org/sgp/crs/misc/RL34303.pdfhttp://legal-dictionary.thefreedictionary.com/Racketeeringhttp://legal-dictionary.thefreedictionary.com/Racketeering


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picked up their phone" to take the complaints.

Financial institutions are competative, they need to

make their clients money as well as protect it; and their

business. So it is in the best interest of institutions toreport grievances if they want to retain their clients.

http://www.washingtonpost.com/wp-

dyn/content/article/2010/10/19/AR2010101907216.html

per a 2000 WSJ article...

"Seeking WSJ's Dec 2000 article: December 2000 Wall

Street Journal story by Michael Schroeder titled, If

you got a beef with a futures broker, This Judge Isntfor YouIn Eight Years at the CFTC, Levine Has

Never Ruled In Favor of an Investor that details

Levines penchant for favoring brokers over investors

seeking reparations."

There have been perfectly legitimate cases against the

subprime dealers of fraud by investors, etc. that weredismissed by the judges, erroneously citing the

Securities Act of 1933 (which was enacted to protect

investors).

Prevalence of Subprime Securities Class Actions

Cornerstone Research's review of 2008 securities class

actions reported that.

In 2008, nearly one-third of the companies in Although

total new filings dropped in the first half of 2009, the

rate of securities class actions against companies in the

financial sector of the S&P 500 was over five times the

rate for companies in the next highest sued sector.
http://www.washingtonpost.com/wp-dyn/content/article/2010/10/19/AR2010101907216.htmlhttp://www.washingtonpost.com/wp-dyn/content/article/2010/10/19/AR2010101907216.htmlhttp://www.washingtonpost.com/wp-dyn/content/article/2010/10/19/AR2010101907216.htmlhttp://www.washingtonpost.com/wp-dyn/content/article/2010/10/19/AR2010101907216.html


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become an important source for information on

securities class actions, reports that every subprime

securities class action against a financial firm.

http://www.skadden.com/content/Publications/Publications1962_0.pdf

Kevin LaCroix, whose blog has approximately 200

subprime and other credit crisis-related securities class

actions have been filed since February 2007.

Executives are named as defendants in almost

"litigation against the firms closest to the ongoingsubprime/liquidity crisis was the dominant force in

federal class action securities litigation in 2008" and

that financial firms represented 46% of the $856 billion

maximum dollar loss attributed to securities class action

filings in 2008. the financial sector of the S&P 500 were

sued in securities class actions, which was nearly five

times the rate for the next highest sued sector of theS&P 500.

EVIDENCE OF BANK/SUBPRIME FRAUD:

FRAUD IN SUBPRIMES- the writing is on the wall.

Who are they kidding trying to cover it up? Are

Americans THAT stupid or unaware? (you deserve the

government you get)

Goldman Sachs pleaded innocence and the public

officials pleaded ignorance. To sum up the subprime

scandal, the subprimes were sold as naked positions and

probably not disclosed that way to their investors.
http://www.skadden.com/content/Publications/Publications1962_0.pdfhttp://www.skadden.com/content/Publications/Publications1962_0.pdfhttp://www.skadden.com/content/Publications/Publications1962_0.pdfhttp://www.skadden.com/content/Publications/Publications1962_0.pdf


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REPO 105-EVIDENCE OF FRAUD

The subprime dealers wrote naked (uncollateralized)

subprimes which is a very risky position, just like

writing naked call options. The Repo 105 issue LehmanBrothers' trial proves that the collateral was not with

the subprime dealers but at another bank when these

subprimes were sold to investors. (the SFAS 140 made

this legal, Sarbanes Oxley allowed this loophole to

exist). If you don't understand what REPO 105 is,

Paddy Hirsch from Market place videos does an

excellent job of explaining it.

http://www.youtube.com/watch?v=Tr8qPmyW5YwHere's another article on the REPO 105.

http://dealbook.blogs.nytimes.com/2010/03/12/in-

lehmans-demise-some-shades-of-enron/

THE NUMBERS DON'T MAKE SENSE- EVIDENCE

OF FRAUD

The subprime market is valued at $600 trillion. ThePPP of the world is "only" $70 trillion? $600 trillion

probably does not exist yet on the Planet Earth, there is

definately not enough bonds to collateralize that many

subprimes. Infact, to get this many subprimes, the

subprime writer would have to sell several subprimes

that were supposed to be collateralized by the same

bond.

If someone wrote a "naked" (uncollateralized) call

option, the CBOE and their respective brokerage would

not allow this unless they had enough experience and

net worth to cover themselves because this trade is
http://www.youtube.com/watch?v=Tr8qPmyW5Ywhttp://dealbook.blogs.nytimes.com/2010/03/12/in-lehmans-demise-some-shades-of-enron/http://dealbook.blogs.nytimes.com/2010/03/12/in-lehmans-demise-some-shades-of-enron/http://www.youtube.com/watch?v=Tr8qPmyW5Ywhttp://dealbook.blogs.nytimes.com/2010/03/12/in-lehmans-demise-some-shades-of-enron/http://dealbook.blogs.nytimes.com/2010/03/12/in-lehmans-demise-some-shades-of-enron/


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considered high risk. And yes the lack of collateral is

definately disclosed.

So why did I bother mentioning the block in courtcases?

TARP WAS UNNECESSARY!!!

First, let's discuss what would've happened if the courts

were to rule in the plaintiff's (subprime investor's)

favor.

Since taxpayers will be gouged for TARP, we all need to

understand the relationship between hedge fundinvestors, subprime dealers and ARM borrowers.

When these ARM borrowers foreclose, isn't the house

the unintended property of these hedge fund investors?

Please allow me to elaborate. The Subprime Dealers

(Countrywide, Wamu, Bear Stearns, etc..) soldsubprime derivatives to subprime investors (most

investors were at hedge funds) to come up with financial

inventory/capital to sell ARMs with. These subprimes

were known as "collateralized" debt obligations

(CDO's), "collaterlized" mortgages obligations

(CMO's) or Mortgage Backed Securities (MBS). Every

financial instrument is a loan that is collateralized to

secure the value of a loan. A mortgage is bank loan to

borrower secured/collateralized with a house, an auto

loan is a bank loan to borrower secured/collateralized

with a car. A stock is an investor's loan to a company

secured/collateralized by ownership of a company.


44/82

A DERIVATIVE is simply any financial instrument

that is collateralized/secured by another financial

instrument.ie. Options are collatearlized by 100 shares of

underlying stock. Subprimes are collateralized by a

bond. Futures are collateralized by commodities.

-How derivatives work:

If any option seller writes a "naked" or uncollatearlized

call option, according to the SEC/CBOE/Brokerage, it's

considered risky(unlimited). They can't open theposition unless they have $25,000 in net worth and the

highest option approval rating. If the trade falls

through, the buyer of the call can go after the writer for

everything they have.

If a subprime dealer (ie. Countrywide) writes a

"naked" or uncollateralized subprime, the same exact

thing happens and they take the same unlimited risk.

Since they did not collateralize the subprime with a

bond, THE SUBPRIME INVESTORS ARE

ENTITLED TO GO AFTER THE SUBPRIME

DEALERS FOR EVERYTHING THEY OWN

(including the foreclosures). That's how the courts

should have ruled, except that the courts are blocked

thanks to the corruption that is the CFTC and Wendy

Gramm. The subprime investors should have 100%

control over the foreclosures. Period.

TARP wouldn't be necessary to make this exchange.


45/82

The politicians/taxpayers/banks should not have a say

in how these foreclosures are handled. This should be

directly between the investor and the borrower (without

the failed banks).The subprime investor should be free to do as they

please with that property...ie. use a property manager,

rent it out, negotiate terms on how the borrower can

keep the house, etc.

The banks purposely exposed themselves, they lose. If a

call writer loses his shirt, nobody bails him/her out.

Nobody should bail out the subprime dealers. TheyKNEW what they were doing.

This would eliminate the need for TARP.

Also TARP wasn't necessary to make the banks liquid.

http://www.heritage.org/research/reports/2008/11/tarp-

and-the-treasury-time-to-allow-markets-to-workhttp://mises.org/daily/4218

Now we all know that Goldman Sachs was behind

Greece's debt troubles! The subprime scandal that

could've been PREVENTED was the cause of Greece

and other municipality defaults through trades of their

interest rate swaps.

Back in March 2010, Gary Gensler (former Goldmanite

and head of the CFTC) argued that "Derivative Reform

would have dissuated Greece"

http://www.bloomberg.com/apps/news?

pid=20601087&sid=a9hBzeyd2pLQ&pos=6.
http://www.heritage.org/research/reports/2008/11/tarp-and-the-treasury-time-to-allow-markets-to-workhttp://www.heritage.org/research/reports/2008/11/tarp-and-the-treasury-time-to-allow-markets-to-workhttp://mises.org/daily/4218http://www.bloomberg.com/apps/news?pid=20601087&sid=a9hBzeyd2pLQ&pos=6.http://www.bloomberg.com/apps/news?pid=20601087&sid=a9hBzeyd2pLQ&pos=6.http://www.heritage.org/research/reports/2008/11/tarp-and-the-treasury-time-to-allow-markets-to-workhttp://www.heritage.org/research/reports/2008/11/tarp-and-the-treasury-time-to-allow-markets-to-workhttp://mises.org/daily/4218http://www.bloomberg.com/apps/news?pid=20601087&sid=a9hBzeyd2pLQ&pos=6.http://www.bloomberg.com/apps/news?pid=20601087&sid=a9hBzeyd2pLQ&pos=6.


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http://www.nytimes.com/2010/02/14/business/global/14d

ebt.html?hp

http://www.bloomberg.com/apps/news?

pid=newsarchive&sid=aufmSRtDn0ggTARP recipients/subprime dealers played the Interest

Rate Swap game too, with munis in Los Angeles and

Philadelphia:

http://online.wsj.com/article/SB100014240527487037755

04575135930211329798.html

For those of us who understand, the collapse of the real

estate market and the subprime market was inevitable.These bankers KNEW how the market was going to

turn out (Goldman Sachs bet against itself). During

foreclosures and high unemployment, municipalities

lose revenue. Which makes their ratings go down.

When the bond ratings go down, yields go up to give

buyers incentive to hold onto that debt. How many city

workers lost their jobs as a result of the subprimecollapse?

So the banks created the problem, then banked on the

rewards for tricking people out of their money.

Let's look at the figures.

To "liquidate" the banks:

-TARP=$700 BILLION

-Quantitative Easing= $30 TRILLION (The devaluation

of the dollar is going to cost us in reduced tax brackets

for real rates, oil imports and the cost of food.)

http://www.investinganswers.com/education/primer-

quantitative-easing-what-it-and-will-it-save-economy-
http://www.nytimes.com/2010/02/14/business/global/14debt.html?hphttp://www.nytimes.com/2010/02/14/business/global/14debt.html?hphttp://www.bloomberg.com/apps/news?pid=newsarchive&sid=aufmSRtDn0gghttp://www.bloomberg.com/apps/news?pid=newsarchive&sid=aufmSRtDn0gghttp://online.wsj.com/article/SB10001424052748703775504575135930211329798.htmlhttp://online.wsj.com/article/SB10001424052748703775504575135930211329798.htmlhttp://www.investinganswers.com/education/primer-quantitative-easing-what-it-and-will-it-save-economy-1941http://www.investinganswers.com/education/primer-quantitative-easing-what-it-and-will-it-save-economy-1941http://www.nytimes.com/2010/02/14/business/global/14debt.html?hphttp://www.nytimes.com/2010/02/14/business/global/14debt.html?hphttp://www.bloomberg.com/apps/news?pid=newsarchive&sid=aufmSRtDn0gghttp://www.bloomberg.com/apps/news?pid=newsarchive&sid=aufmSRtDn0gghttp://online.wsj.com/article/SB10001424052748703775504575135930211329798.htmlhttp://online.wsj.com/article/SB10001424052748703775504575135930211329798.htmlhttp://www.investinganswers.com/education/primer-quantitative-easing-what-it-and-will-it-save-economy-1941http://www.investinganswers.com/education/primer-quantitative-easing-what-it-and-will-it-save-economy-1941


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1941

-Maiden Lane (to buy up these toxic assets)-$150

BILLION

Maiden Lane I=$30 billionMaiden Lane II&III=$120 billion

-PPIP (to enable banks to make ARM loans to realtors

to speculate in Real Estate Market)=$40 BILLON

Maiden Lane and PPIP cost us $200 billion? Plus

whatever else we lose on TARP & QE.

This "bailout" and "economic recovery" is too

expensive. Especially considering that we need to cut

taxes and restrictions to enable investments in wealthcreation and to balance trade in lieu of globalization.

Nobody is batting on behalf of the U.S.

Oct 30, 2010 | bella75

http://dailybail.com/home/wendy-gramm-judge-bruce-levine-criminal-behavior-at-the-cftc.html

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http://www.apfn.org/enron/gramm.htm

ENRON'S Wendy L. Gramm
http://www.investinganswers.com/education/primer-quantitative-easing-what-it-and-will-it-save-economy-1941http://dailybail.com/contributor/11411721http://dailybail.com/home/wendy-gramm-judge-bruce-levine-criminal-behavior-at-the-cftc.htmlhttp://dailybail.com/home/wendy-gramm-judge-bruce-levine-criminal-behavior-at-the-cftc.htmlhttp://www.apfn.org/enron/gramm.htmhttp://www.investinganswers.com/education/primer-quantitative-easing-what-it-and-will-it-save-economy-1941http://dailybail.com/contributor/11411721http://dailybail.com/home/wendy-gramm-judge-bruce-levine-criminal-behavior-at-the-cftc.htmlhttp://dailybail.com/home/wendy-gramm-judge-bruce-levine-criminal-behavior-at-the-cftc.htmlhttp://www.apfn.org/enron/gramm.htm


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FIRSTROW, FROM LEFT, Ken L. Harrison, John A. Urquhart, Robert A.Belfer, Norman P. Blake, Jr., Robert K. Jaedicke, Ronnie C. Chan, Jeffrey

K. Skilling, Kenneth L. Lay and Wendy L. Gramm. Second Row, from left,Bruce G. Willison, John H. Duncan, Joe H. Foy, Charls E. Walker, John

Wakeham, Jerome J. Meyer, Herbert S. Winokur, Jr. and Charles ALeMaistre.

Wendy L. Gramm, director and audit committee member:Sold 10,256 shares for $276,912.

ENRON: Wendy L. Gramm:Washington, D.C.

Former Chairman,U.S. Commodity Futures Trading Commission

Blind Faith: How Deregulation and Enron's InfluenceOver Government Looted Billions from Americans

http://www.apfn.org/ENRON/Blind_Faith.pdf
http://www.apfn.org/ENRON/Blind_Faith.pdfhttp://www.apfn.org/ENRON/Blind_Faith.pdf


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Wendy Gramm and Bush officials to Enron fiasco, CacrisisSat Jan 26 17:28:50 200224.16.150.192

Wendy Gramm and Bush officials to Enron fiasco,California crisis

http://www.citizen.org/hot_issues/issue.cfm?ID=194

After Enron Corp. used its vast web of political connectionsto win December 2000passage of commodities trading legislation that helped thecompany shield its energytrading activities from government scrutiny, Californias

energy crisis suddenly took adramatic turn for the worse as artificial supply shortagesled to frequent rollingblackouts, according to a new Public Citizen reportreleased Friday.

The legislation reducing government oversight of energy

trading was muscled throughCongress without a Senate committee hearing withthe aid of U.S. Sen. Phil Grammof Texas. Gramm was chairman of the Senate BankingCommittee, which had
http://www.citizen.org/hot_issues/issue.cfm?ID=194http://www.citizen.org/hot_issues/issue.cfm?ID=194http://www.citizen.org/hot_issues/issue.cfm?ID=194


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jurisdiction over the legislation he co-sponsored, but hechose to bypass his committee,and the bill was quietly tacked onto a "must-pass"

appropriations bill late in the session.Gramms wife, Wendy Gramm, also aided Enrons rise topower. As chairwoman of theCommodity Futures Trading Commission, she pushedthrough a key regulatory exemptionon Jan. 14, 1993, just as she was about to leave office. Fiveweeks later, she joinedEnrons board of directors, where she served on the boards

audit committee and hadaccess to key financial information about the company.To read the entire press release, click here.

To read the report, Blind Faith: How Deregulation andEnron's Influence OverGovernment Looted Billions from Americans, click here.

http://www.citizen.org/pressroom/release.cfm?ID=983===============

Secretary of Treasury Paul O'Neill, left, and President Bushare underfire about contacts with Enron CEO Ken Lay.http://abcnews.go.com/sections/business/DailyNews/enron

_inquiry020111.html

Information for Former Enron Employees Affected byChapter 11 Filinghttp://www.enron.com/corp/
http://www.citizen.org/pressroom/release.cfm?ID=983http://www.citizen.org/pressroom/release.cfm?ID=983http://www.citizen.org/pressroom/release.cfm?ID=983


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In June 1996, four days before India granted final approvalto Enron's

controversial $3 billion power-plant project, Enron's gave$100,000 toPresident Clinton's party.

Enron denies that its gift was repayment for Clinton'sattention, andWhite House special counsel Lanny Davis says McLartyacted out of concern

for a major U.S. investment overseas, TIME's MichaelWeisskopf reported.

SOURCE:http://www.drudgereport.com/flash2.htm

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Dr. Wendy Lee GrammDirector, Regulatory Studies Program &Distinguished Senior FellowCalled "the Margaret Thatcher of financial regulation" bythe Wall Street Journal (Nov. 12, 1999 editorial), Dr.Wendy Lee Gramm holds a B.A. degree from Wellesley

College (1966) and a Ph. D. (1971) from NorthwesternUniversity, both in Economics. She has an extensivepublication record including articles in theAmericanEconomic Review and theJournal of Law and Economics.
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Before joining the Mercatus Center, Gramm served asChairman of the U.S. Commodity Futures TradingCommission from 1988-1993. She was Administrator for

Information and Regulatory Affairs at the Office ofManagement and Budget from 1985-1988, the ExecutiveDirector of the Presidential Task Force on RegulatoryRelief, and Director of the Federal Trade CommissionsBureau of Economics. Gramm was on the research staff ofthe Institute for Defense Analyses. She started hereconomics career at Texas A&M University, where shetaught economics for over 8 years.

http://www.mercatus.org/about/gramm.html===============Statement of Dr. Wendy L. Gramm, Distinguished SeniorFellowDirector, Public Interest Comment ProgramJames Buchanan Center for Political EconomyGeorge Mason University

Fairfax, VirginiaOn Financial Derivatives Supervisory Improvement Act of1998Before the Committee on Banking and Financial ServicesU. S. House of RepresentativesJuly 17, 1998EXCERPT:Mr. Chairman and Members of the Committee: Thank youfor inviting me to testify on the "Financial DerivativesSupervisory Improvement Act of 1998" (H.R. 4062) andrelated issues. As former Chairman of the CommodityFutures Trading Commission (CFTC), I am interested inboth the agency and its actions. Furthermore, many of the
http://www.mercatus.org/about/gramm.htmlhttp://www.mercatus.org/about/gramm.html


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issues you are addressing relate to policies, regulations, andlegislation that were developed or written when I wasChairman.

http://www.house.gov/financialservices/71798gra.htmDr. Gramm holds a B.A. degree from WellesleyCollege and a Ph.D. degree from NorthwesternUniversity, both in economics. She served asChairman of the U.S. Commodity Futures TradingCommission from 1988-1993. She was Administratorfor Information and Regulatory Affairs at the WhiteHouse Office of Management and Budget from 1985-

1988, the Executive Director of the Presidential TaskForce on Regulatory Relief, and Director of theFederal Trade Commission's Bureau of Economics.Dr. Gramm began her professional career at TexasA&M University in 1970 as Assistant Professor ofEconomics. She was promoted to AssociateProfessor in 1974 and also served as the Director of

Undergraduate Programs for the EconomicsDepartment. Dr. Gramm was born in Hawaii in 1945and is married to the Honorable U.S. Senator PhilGramm of Texas. The Gramms have two sons.http://www.tppf.org/pau/2000/pau020800.html

EPA's Tier 2 Standards for VehicleEmissions and Gasoline Sulfur

Content1999, part 1, 19 pages1999, part 2, 19 pages1999, part 3, 7 pages

http://www.heartland.org/suites/environment/auto3.htm
http://www.house.gov/financialservices/71798gra.htmhttp://www.tppf.org/pau/2000/pau020800.htmlhttp://www.heartland.org/pdf/23054s.pdfhttp://www.heartland.org/pdf/23054t.pdfhttp://www.heartland.org/pdf/23054u.pdfhttp://www.heartland.org/suites/environment/auto3.htmhttp://www.house.gov/financialservices/71798gra.htmhttp://www.tppf.org/pau/2000/pau020800.htmlhttp://www.heartland.org/pdf/23054s.pdfhttp://www.heartland.org/pdf/23054t.pdfhttp://www.heartland.org/pdf/23054u.pdfhttp://www.heartland.org/suites/environment/auto3.htm


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Wendy L. Gramm

The following is the Joint Center publication written byWendy L. Gramm.

2000

2000

More Than Forty Prominent Economists UrgeSupreme Court to Allow EPA to Consider Costs andConsequences of Clean Air Regulations. (PDF file).

Kenneth J. Arrow, Elizabeth E. Bailey, William J.Baumol, Jagdish Bhagwati, Michael J. Boskin, DavidF. Bradford, Robert W. Crandall, Maureen L. Cropper,Christopher DeMuth, George C. Eads, MiltonFriedman, John D. Graham, Wendy L. Gramm,Robert W. Hahn, Paul L. Joskow, Alfred E. Kahn,Paul R. Krugman, Lester B. Lave, Robert E. Litan,

Randall Lutter, Paul W. MacAvoy, Paul W.McCracken, James C. Miller III, William A. Niskanen,William D. Nordhaus, Wallace E. Oates, PeterPassell, Sam Peltzman, Paul R. Portney, Alice M.Rivlin, Milton Russell, Richard L. Schmalensee,Charles L. Schultze, V. Kerry Smith, Robert M. Solow,Robert N. Stavins, Joseph E. Stiglitz, Laura D'Andrea

Tyson, W. Kip Viscusi, Murray L. Weidenbaum, JanetL. Yellen and Richard J. Zeckhauser. Brief 00-01. July2000. Abstract.http://www.aei.brookings.org/publications/authors.asp?aID=60
http://www.aei.brookings.org/publications/authors.asp?aID=60#p2000%23p2000http://www.aei.brookings.org/publications/authors.asp?aID=60#top%23tophttp://www.aei.brookings.org/publications/briefs/brief_00_01.pdfhttp://www.aei.brookings.org/publications/briefs/brief_00_01.pdfhttp://www.aei.brookings.org/publications/briefs/brief_00_01.pdfhttp://www.aei.brookings.org/about/scholars.asphttp://www.aei.brookings.org/about/demuth.htmhttp://www.aei.brookings.org/about/scholars.asphttp://www.mit.edu/people/pjoskow/http://www.aei.brookings.org/about/litan.htmhttp://www.aei.brookings.org/about/scholars.asphttp://www.ksg.harvard.edu/~rstavins/http://www.law.harvard.edu/Academic_Affairs/Faculty_Directory/professors/viscusi.htmlhttp://www.aei.brookings.org/publications/abstract.asp?pID=81http://www.aei.brookings.org/publications/authors.asp?aID=60http://www.aei.brookings.org/publications/authors.asp?aID=60http://www.aei.brookings.org/publications/authors.asp?aID=60#p2000%23p2000http://www.aei.brookings.org/publications/authors.asp?aID=60#top%23tophttp://www.aei.brookings.org/publications/briefs/brief_00_01.pdfhttp://www.aei.brookings.org/publications/briefs/brief_00_01.pdfhttp://www.aei.brookings.org/publications/briefs/brief_00_01.pdfhttp://www.aei.brookings.org/about/scholars.asphttp://www.aei.brookings.org/about/demuth.htmhttp://www.aei.brookings.org/about/scholars.asphttp://www.mit.edu/people/pjoskow/http://www.aei.brookings.org/about/litan.htmhttp://www.aei.brookings.org/about/scholars.asphttp://www.ksg.harvard.edu/~rstavins/http://www.law.harvard.edu/Academic_Affairs/Faculty_Directory/professors/viscusi.htmlhttp://www.aei.brookings.org/publications/abstract.asp?pID=81http://www.aei.brookings.org/publications/authors.asp?aID=60http://www.aei.brookings.org/publications/authors.asp?aID=60


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Gramm's Wife on Iowa Beef Packers Boardof Directors

Click for VCT press release on Gramm'ssell-out - 1/11/2001

Why is Sen. Phil Gramm so interested in

legalizing Mexicans?

He is married to Dr. Wendy Lee Gramm, former chairmanof the U.S. Commodity Futures Trading Commission under

Presidents Reagan and Bush.

And she is on the Board of Directors of one of the largestemployers of illegal aliens in America - Iowa Beef

Packers.!!!!!

WANT PROOF?News Release
http://www.americanpatrol.com/BRACERO/2001/GrammSelloutVCTPR-010111.htmlhttp://www.americanpatrol.com/BRACERO/2001/GrammSelloutVCTPR-010111.htmlhttp://www.ibpinc.com/ibpnews/ibpannualmeeting.stmhttp://www.americanpatrol.com/BRACERO/2001/GrammSelloutVCTPR-010111.htmlhttp://www.americanpatrol.com/BRACERO/2001/GrammSelloutVCTPR-010111.htmlhttp://www.ibpinc.com/ibpnews/ibpannualmeeting.stm


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DIRECTORS ELECTED AT IBP ANNUAL MEETING

Dakota Dunes, South Dakota April 20, 2000 Ninedirectors were elected to one-year terms today at IBP's

annual meeting, company officials reported. Those electedto serve on the company's board of directors include RobertL. Peterson, IBP chairman and chief executive officer;Richard L. Bond, IBP president and chief operating officer;Eugene D. Leman, IBP president fresh meats; John S.Chalsty, chairman of Donaldson, Lufkin & Jenrette, Inc.;Dr. Wendy L. Gramm, former chairman of the Commodity

Futures Trading Commission; John J. Jacobson, presidentof TransAm Trucking, Inc.; Dr. Martin A. Massengale,president emeritus of the University of Nebraska; MichaelL. Sanem, self-employed cattle feeder and private investor;and Joann R. Smith, former assistant secretary of the U.S.Department of Agriculture. More than 98% of the sharesvoted were in favor of their election to the board. The

company also reported that more than 91% of the sharesvoted approved the fiscal year 2000 performance-basedbonus program of the chairman and chief executive officer;the president and chief operating officer; and the chiefexecutive officer of Foodbrands America, Inc. Foodbrands,one of three IBP operating companies, is involved in theproduction of value-added foods products.

IBP is the world's leading producer of high quality freshbeef and pork, and supplies premium, fully prepared meatsand other consumer-ready foods for the retail andfoodservice industries. The company employs more than49,000 people.
http://www.ibpinc.com/ibpnews/ibpannualmeeting.stmhttp://www.americanpatrol.com/BRACERO/2001/IMAGES/PhilGrammDFSellout010110.htmlhttp://www.ibpinc.com/ibpnews/ibpannualmeeting.stmhttp://www.americanpatrol.com/BRACERO/2001/IMAGES/PhilGrammDFSellout010110.html


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Contact: Gary Mickelson, IBP Public Affairs Department605-235-2986 email: [email protected] email:mailto:[email protected]

Also See: Anti-immigration groups slam amnesty plan(WorldNet Daily - 1-18-01)

Also See: IBP Agrees to be acquired by Tyson

http://www.americanpatrol.com/SENATE/Gramm-WendyIPB_010112.html

Phil Gramm's Skeleton Closet

Click on the allegation of your choice:
mailto:[email protected]://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=21383http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=21383http://www.americanpatrol.com/BRACERO/2001/TysonBuysIBP010101.htmlhttp://www.americanpatrol.com/SENATE/Gramm-WendyIPB_010112.htmlhttp://www.americanpatrol.com/SENATE/Gramm-WendyIPB_010112.htmlmailto:[email protected]://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=21383http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=21383http://www.americanpatrol.com/BRACERO/2001/TysonBuysIBP010101.htmlhttp://www.americanpatrol.com/SENATE/Gramm-WendyIPB_010112.htmlhttp://www.americanpatrol.com/SENATE/Gramm-WendyIPB_010112.html


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- Savings & Loan Scandal- Helped get a convicted drug dealer out of jail- Laundered Illegal Campaign Contributions to

Bob Packwood- Funded a Sleazy Movie -- - Draft Dodger- Petty Abuses of Power: illegal hunting,getting staffer out of the army- Character-- - Quotes -- - Sources

http://www.realchange.org/gramm.htm

===============

COMMISSIONERS' TERMS OF OFFICE

(listed by each five-year term)Wendy L. Gramm(Chairman 2/22/88-1/22/93)http://www.cftc.gov/opa/opaterms.htm(oriental-descent Wendy L. Gramm, then head of the U.S.

Commodity Futures Trading Commission)EXCERPT FROM:RED CHINA and THE AMERICAN PRESIDENTIAL

ELECTIONS Part One

The Riady/American CIA dope cash also reportedlybenefitted, Tyson Chickens; J.B. Hunt Truck Lines, heavilytransporting from Arkansas to a Chicago suburb; Wal-Martdiscount store chain; and Beverly Enterprises, the reputedly

highly corrupt nursing home chain. That truck linereportedly on occasion transports contraband, such asnarcotics. Illinois state transportation regulators, however,know better than to dare stop and check their trucks. Other
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truck lines, not J.B. Hunt, are harassed and shaken-downfor pay-offs for purporting to have "overweight" trucks.

A terminus point for the Riady/Lippo/Red Chinese SecretPolice/American CIA dope cash has been for severaldecades, the Chicago Mercantile Exchange. Five currencyand commodity brokers have traded with use of this river ofnarcotics money, without filing reports, required by theU.S. Treasury, of cash intake over ten thousand dollars.The brokers knew, know, and have known, that the cashcame in great part through the Red Chinese and reportedly

the Riady Family, for the purpose of corruptly influencingU.S. Presidential Elections. In violation of Federalregulatory rules, they did not conduct "due diligence", toaccurately determine who their "clients" were. But they hadplenty good reasons to already know.Clinton as presidential candidate, and as president, oftencame to the Chicago Mercantile Exchange, to supposedly

give a "speech". Funny thing, if the monopoly press evenmentioned he was at the "Merc" as it is called, which wasseldom; they never mentioned what his speech there was allabout. Clinton came to the "Merc", to tap into and connectinto the illicit fountain of cash, masquerading as foreigncurrency and other deals.

For some twelve years, regulating the Chicago markets wasoriental-descent Wendy L. Gramm, then head of the U.S.Commodity Futures Trading Commission. A brokerageowned by a former top Chicago Mercantile Exchangeofficial, GNP Commodities, accused her jointly with theFederal Reserve Board, of falsely interfering with the firm's


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plan to merge with a French firm, Bank Indo-Suez.Following a regulatory hearing, an attorney for the firmreportedly hollared that if Wendy Gramm and the Fed, do

not get off GNP's back, they will be caught up in aninternational incident and will cease to exist. [Stories aboutthis appeared in the Wall Street Journal, November, 1989.]Wendy L. Gramm, as then head of CFTC, played a key rolereportedly in covering up the bribery agenda of Bank ofCredit and Commerce International. BCCI, through five LaSalle Street brokers, corruptly condoned by CFTC andWendy L. Gramm, was engaged in bribery and/or

blackmailing 108 members of the U.S. House ofRepresentatives and 28 U.S. Senators, including Gramm'sown husband, U.S. Senator Phil Gramm (R., Texas). BCCIwanted Congressional okay to spread out their bankbranches in the U.S. [Only one populist newspaper,Spotlight, ran the details of my exclusive story in August,1991, of this scheme operating through "straddles",

Chicago and London.] By a strange series of circumstances,the Bank of England had the BCCI bribery records, as anopen record, for only thirty days.

Senator Gramm has been in a position to cover up this dirtycash. He has been Chairman of the Senate Banking,Housing, and Urban Affairs Committee. His wife Wendy,became a Director of Enron Corp. Enron produceselectricity and natural gas, develops, constructs, andoperates energy facilities worldwide and delivers physicalcommodities and financial and risk management services tocustomers. Annual revenue exceeds Forty Billion Dollars.Alleged U.S. Vice President Richard Cheney is a major


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stockholder of Enron. And Enron reportedly has been partof putting the giant squeeze on California in their electricyblack-out following the alleged year 2000 "Election".

Going heavily for Presidential candidate Gore, wasCalifornia thus punished? As an example to other state'spopular vote that went for Gore instead of for George W.Bush? That is, if you supported Gore, we are going to"stick it" to you.

The Chicago Mercantile Exchange and the Red Chineseand their secret police, played a key joint role in several

presidential elections. The head of a Chicago MercantileExchange consulting unit leaked the earth-quakingbribery/dope details to certain more independentjournalists. At a key point in the year 2000 PresidentialElection, this key figure was murdered. Both George W.Bush and William Rockefeller Clinton had an interest tosnuff him out. What was it all about? Who all in Florida

were bribed with the Red Chinese dope cash funneledthrough the Merc? Are some members of the alleged"Cabinet" of alleged "President" George W. Bush tied tothe Red Chinese? Was there a malign, if not corrupt,influence, on the U.S. Supreme Court in the Bush/Gorecases?http://www.skolnicksreport.com/rchintape.html

On February 27, 2001, the U.S. Supreme Court ruled ontwo cases relating to a May 1999 decision of the U.S. Courtof Appeals for the District of Columbia. The appeals courthad remanded to EPA its national ambient air quality
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standards (NAAQS) regulations that set allowable levels ofozone and particulate matter (PM) in ambient air. Theappeals court found that, in setting the standards, EPA had

disregarded important evidence and was, in essence,making law rather than carrying out the laws made byCongress (in violation of the constitutional non-delegationdoctrine).

In response to a petition filed by EPA, the Supreme Courtheard this question, as well as the question raised by cross-petitioners (private parties and states) of whether the Clean

Air Act prohibits EPA from considering all consequencesassociated with compliance, or whether it requires EPA tofocus exclusively on the beneficial health effects ofreducing pollutants in the air.

The Supreme Court affirmed in part and reversed in partthe judgment of the Court of Appeals, and remanded thecases for proceedings consistent with this opinion. It held:

1. The EPA may not consider implementation

costs in setting primary and secondary NAAQS

under 109(b) of the CAA.

2. Section 109(b)(1) does not delegate legislative

power to the EPA in contravention of Art. I, 1, of

the Constitution.

3. The Court of Appeals had jurisdiction to review

the EPA's interpretation of Part D of Title I of the

CAA, relating to the implementation of the revised

ozone NAAQS.


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4. The EPA's interpretation of that Part is

unreasonable.

The Mercatus Center at George Mason University filed

three briefs of amicus curiae before the Supreme Court.These briefs build upon the analysis the Regulatory StudiesProgram offered on twoNAAQS rules forozoneandparticulate matterin 1997.

Mercatus Center staff also featured prominently in briefsfiled by other parties. Regulatory Studies Program Director

and Mercatus Distinguished Senior Fellow, Wendy L.Gramm was a signatory to an AEI-Brookings Joint Centerbrief filed on behalf of 40 economists, encouraging theCourt to recognize the importance of balancing costs andbenefits in making public policy decisions. Gramm andMercatus Senior Research Fellow Susan E. Dudley'sresearch (published in Risk Analysis: An InternationalJournal, and Pace Environmental Law Review) was quoted

extensively in a brief submitted byHarvard Law ProfessorLaurence Tribe on behalf of General Electric Company.

http://www.mercatus.net/research/supreme.html
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http://www.mercatus.org/research/wg.html

INCEST AND CORRUPTION,TEXAS STYLE by Gene Lyons December 5, 2001

EXCERPT:
http://www.mercatus.org/research/wg.htmlhttp://www.mercatus.org/research/wg.html


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James Baker, who masterminded Bush's post-electionoperations in Florida, joined Enron after the first Bushadministration.

So did Commerce Secretary Robert Mosbacher. It was akey 1992 regulatory ruling by Wendy Gramm, wife ofTexas Sen. Phil Gramm and currently a member of thecompany's see-no-evil, hear-no-evil board of directors, thatexempted Enron from federal scrutiny, making it easier forexecutives to cook the books, hiding huge speculative debtbehind nonexistent profits-crony capitalism at its worst.Facing a sure deluge of class action lawsuits from investors

and employees- 21,000 retirement pensions have alsovanished--Enron has fired its Chief Financial Officer, itsTreasurer and its top lawyer. Arthur Anderson, theaccountancy firm which signed off on the bookeeping willhave much to answer for. Critics tell the Washington Postthat Enron executive