Boehner is known for his strict adherence to Republican talking points and not for his intellectual bona fides, to say the least. But his outright and blatant pandering to the financial industry, after the abuses of Wall Street nearly destroyed the entire economy, less than two-years ago, is astounding. Appearing at the American Bankers Association governmental relations summit, Boehner rallied the group of Wall Street fat cats to stand up to the “punks” at Capitol Hill and he pledged to fight Democrats to delay, delay, delay and obstruct reform of their industry:

“If the Senate is able to produce a bill, I think it’s just as likely that we’ll be talking about the same issue a year from now as we are right now,” Boehner said.

“Don’t let those little punk staffers take advantage of you and stand up for yourselves,” Boehner said. “All of us are hearing from our friends and constituents on lack of credit, you can’t get a loan, the more your government takes and taxes, the more regulations you have to comply with the more cost you have there and less amount you are going to have available to loan to customers.”

Chairman of the Financial Services Committee Rep. Barney Frank wrote a letter demanding an apology for Boehner’s remarks, saying “I am appalled that a Leader of the House, who must know what good work is done by our staffs, would take such an inaccurate cheap-shot at these people, for the purpose of ingratiating himself with bankers or any other group.”

And Larry Summers, speaking at the National Press Club, also took direct aim at Boehner’s “punk” remarks, pointing out that the financial industry that spent $500 million on lobbying in 2009, doesn’t need any further help from the likes of Congressman Boehner to screw ordinary Americans:

“I do not think that those who want to address these issues are ‘little punk staffers’ who need to be stood up to,” Summers said. “At a moment when there are four lobbyists per member of the House and Senate working on this issue, we in the Administration do not believe that the prominent issue is allowing bankers to stand up for themselves.”

As noted by Think Progress, Boehner has raked in $3.4 million from the financial services industry, which is $1.2 million more than he’s received from any other group.

Jim Cramer is a former hedge-fund manager and the off-the-wall CNBC host of “Mad Money.” He was blamed by many, especially Comedy Central’s Jon Stewart, for his complicity in Wall Street’s financial meltdown, with his irresponsible financial reporting. Cramer is the co-founder and Chairman of the Board of TheStreet. And he provides commentary for the site for an annual subscription of $399.95.

According to the report in the NY Post, federal regulators first looked into TheStreet’s dealings with Promotions.com last summer, but appeared satisfied with the the company’s internal probe and backed off:

“Last summer, TheStreet.com announced there were “issues” related to how it had been recording revenue at Promotions.com, the marketing company it acquired in 2007. An internal probe ensued and resulted in several quarters of delayed earnings results for the parent company, frustrating investors.”

Cramer then unloaded Promotions.com for $3.1 million and finally released TheStreet’s delayed earnings reports. But “a person close to the company” says the SEC is now conducting another investigation.

TheStreet’s CEO Daryl Otte, told the paper the company is “is cooperating fully with the investigation.”

Momentary electronic disturbances from radiation particles created when cosmic space rays pummel the atmosphere, are a common occurrence. And it’s been known since the 70s that radiation particles can affect electronic controls in airplanes and rocket ships. For that reason, engineers design electronics in aircraft to shield circuits from radiation particles.

The disturbances are referred to, as “single event upsets,” or SEUs and they come and go without leaving a trace. Federal regulators first were prompted to investigate this phenomenon, with respect to Toyota’s sudden acceleration problems, after an anonymous tipster sent an email warning that Toyota’s electronics did not contain safeguards to prevent single event upsets

According to a report in the Detroit Free Press, “An anonymous tipster whose complaint prompted regulators to look at the issue said the design of Toyota’s microprocessors, memory chips and software could make them more vulnerable than those of other automakers.” [...] “And an anonymous tipster told NHTSA last month that “the automotive industry has yet to truly anticipate SEUs.”

Toyota claims its electronics are properly designed to withstand interference from radiation particles, telling the Free Press its electronic engine controls are “robust against this type of interference.” Toyota’s electronics are designed with “absolute reliability,” added the automaker.

Still, researchers and regulators are looking into the possibility that Toyota’s electronics may not be as “robust” as the beleaguered automaker claims.

See the Detroit Free Press for more.

Source

According to the lawsuit, a contractor was sent out by the bank to the home of Angela Iannelli, to “secure” the home in any way necessary, after an error said the home had been abandoned.

The contractor went into the home, ruined several items of furniture, cut water pipes and electrical wires, shut off all utilities, poured antifreeze into every toilet and sink in the house, and stole her parrot.

She continuously called BoA, but they denied any knowledge of having her bird, and when they admitted they had taken it they told her she would have to drive 80 miles to get it back.

They refused to pay for damages, told her they were tired of hearing from her, and hung up on her several times.

She is suing for $50,000.

BoA has apologized, claiming to have a ‘Zero Tolerance’ for this kind of mistake.

They have not released any statement on why the contractor apparently found it necessary to destroy so many of her personal items while there.

Source

Bank of America’s statement released to the press, pointed out that debit card customers have spoken and they don’t want to be hit with excessive overdraft fees, when they can least afford it:

“This change will help customers by reducing the likelihood they may inadvertently overdraw their account and thus eliminate unexpected overdraft fees on these transactions. Customers will still have the choice to link their checking account to another account through Overdraft Protection to cover these types of transactions. Our customers have been clear that they want to know if a purchase is going to overdraw their account,” said Susan Faulkner, Deposits and Card Product executive. Our solution is simple, clear and helps customers control their finances by reducing the possibility of over-extending themselves at the point of sale with a debit card.”

Bank customers who still want overdraft protection can request that their checking account be linked to a savings or other account through the Overdraft Protection program. And Bank of America is recognizing that it can no longer reap obscene overdraft fee profits from its lower income customers in the middle of a deep recession. “We understand that the environment has changed, and we are changing with it,” added Faulkner.

According to The New York Times, debit card purchases account for nearly 60 percent of overdrafts at Bank of America. “Last year alone, banks generated about $20 billion from overdraft fees on debit purchases and A.T.M. transactions, and $12 billion more by covering checks and recurring bills, according to Moebs Services, an economic research firm.”

And the majority of customers filling the coffers of the nation’s banks with billions in overdraft fees are among the poorest in our society:

“In the case of overdraft, 93 percent of the fees are generated by just 14 percent of the customers who exceed their balances five times or more a year, according to a 2008 study by the Federal Deposit Insurance Corporation. Three-quarters of customers are not charged overdraft fees at all, the study found.”

Bank of America’s new overdraft policy on debit card purchase will take effect on June 19 for new customers and in early August for existing customers.

Source: The New York Times.

Sikes called for help with his runaway 2008 Prius at about 1:30 p.m. yesterday, as he was speeding eastbound on Interstate 8 in San Diego County. California Highway Patrol officer Larry Landeros, said Sikes was “reaching speeds over 90 miles per hour.”

Sikes explained in a news conference after the incident, that his gas pedal became stuck when he was attempting to pass a car on the highway. “I pushed the gas pedal to pass a car and it did something kind of funny . . . it jumped and it just stuck there,” Sikes, 61, said. “As it was going, I was trying the brakes . . . it wasn’t stopping.”

A CHP officer was able to catch up to Sike’s speeding vehicle and use a loudspeaker to shout out instructions to the terrified driver, to apply his emergency brake at the same time he used his brake pedal. Once the Prius’ dropped to about 50 mph, Sikes was able to turn off the engine, and coasted to a stop.

Toyota says it will investigate the incident. Toyota spokesman Brian Lyons said, “We’re sending a field technical specialist to San Diego to investigate the car and find out what happened.” “We won’t be able to comment on what any possible problems with the car were until we take a look at the car,” Lyons added.

Sike’s 2008 Prius was not part of a Toyota recall.

Sudden acceleration problems in Toyota vehicles have been linked to nearly 50 deaths.

Source: LA Times

Since Toyota was forced to recall more than 8 million vehicles worldwide for lethal accelerator problems nearly two-months ago, the automaker first attributed the cause of the sticky gas pedals to flawed floor mats. And later, when the problems continued, the company issued a larger recall for a dealership mechanical fix to the gas pedal. But problems persist, and questions remain about the electronic systems of the vehicles. Nearly 400,000 Toyota hybrid vehicles, including the Prius, have also been recalled for faulty brake systems.

Toyota called Monday’s news conference to discredit an independent study performed on its accelerator electronics, by David Gilbert, an auto engineering expert at Southern Illinois University. Gilbert found a flaw in the electronics, in which a safety fault code failed to generate. But Toyota hired its own expert to review Gilbert’s fundings and he declared them flawed. Chris Gerdes, a professor of mechanical engineering at Stanford and director of the university’s Center for Automotive Research, said Gilbert had essentially “rewired” Toyota’s accelerator system to produce his results. “Fundamentally, you cannot rewire a circuit and expect it to behave as designed,” Gerdes told reporters.

Toyota spokesman Mike Michels dismissed reports of vehicles experiencing sticky gas pedal problems, even after vehicles were repaired at a dealership under the recall, blaming the problems on flawed repair work. “We’re confident in our electronic throttle control systems,” Michels said.

Last month, Rep. Edolphus Towns (D-NY), chairman of the House Oversight and Government Reform Committee said that Toyota “deliberately withheld” evidence in lawsuits related to vehicle safety, exhibiting a “systematic disregard for the law.”

Runaway Toyota and Lexus vehicles have been linked to a number of fatalities and nearly 50 other crash deaths are being investigated.

See Reuters for more.

Source

According to the Financial Times, Sen. Chris Dodd (D-CT) chairman of the powerful Senate banking committee plans to propose that banks having more than $100 billion in assets would remain under the purview of the Fed. And as a check on the Fed’s powers, a bankruptcy judge would play a role in winding down failed banks, as well.

Dodd’s new proposal is seen as a partial victory for Treasury Secretary Tim Geithner, who argued that only the Fed is qualified to oversee the nation’s complex banking system. It appears the central bank will lose the oversight of the smaller banks, but their lobbying efforts to remain under the fed are intensifying:

“Until, frankly, chairman [Ben] Bernanke was confirmed I think the Fed’s hands were kind of tied,” said a banking industry figure who has held discussions with one of those Fed presidents. “Now he is chairman for the next four years…the Fed has been able to be more aggressive in fighting for its authority. The regional Fed presidents have the most to lose if – as the current draft legislation has it – the central bank retains big banks but loses mid-sized institutions, which are part of the Fed system’s reason for being.”

The oversight issue will be taken up by the Senate banking committee this week, along with consumer credit card reform.

See the Financial Times for more.