THE UNITED STATES DEPARTMENT OF JUSTICE
OFFICE OF THE U.S. TRUSTEE
David C. Farmer, Successor Trustee
Bobby N. Harmon
(Formerly Mary Lou Woo vs. Harmon and James Nicholson vs. Harmon)
United States District Court, District of Hawaii
Judges: David A. Ezra; Kevin S. Chang
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Donna Tanoue is the former Chairperson, Federal Deposit Insurance Corporation (FDIC); Former partner, Goodsill Anderson Quinn & Stifel; Director: Bank of Hawaii, Kaneohe Ranch, Queens Health Center, Hawaii Community Foundation, Japanese Cultural Center of Hawaii, and Longs Drugs; wife of Kirk Caldwell.
Address to be determined.
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FROM THE CATBIRD’S NEST
RON REWALD: FLYING HIGH IN HAWAII
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NEW DISCOVERY (07-01-09):
June 30, 2009
Hawaii bank got U.S. help
after Inouye’s aide placed call
By Paul Kiel, Pro Publica
WASHINGTON — Sen. Daniel Inouye’s staff contacted federal regulators last fall to ask about the bailout application of an ailing Hawaii bank that he had helped to establish and where he has invested the bulk of his personal wealth.
The bank, Central Pacific Financial, was an unlikely candidate for a program designed by the Treasury Department to bolster healthy banks.
The firm’s losses were depleting its capital reserves. Its primary regulator, the Federal Deposit Insurance Corp., already had decided that it didn’t meet the criteria for receiving a favorable recommendation and had forwarded the application to a council that reviewed marginal cases, according to agency documents.
Two weeks after the inquiry from Inouye’s office, Central Pacific announced that the Treasury would inject $135 million.
Many lawmakers have worked to help home-state banks get federal money since the Treasury announced in October that it would invest up to $250 billion in healthy financial firms. But the Inouye inquiry stands apart because of the senator’s ties to Central Pacific. While at least 33 senators own shares in banks that got federal aid, a review of financial disclosures and records obtained from regulatory agencies shows no other instance of the office of a senator intervening on behalf of a bank in which he owned shares.
Inouye, D-Hawaii, declined a request for an interview but acknowledged in a statement that an aide had called the FDIC to ask about Central Pacific’s application. Inouye said he was not attempting to influence the outcome. The statement did not address Inouye’s personal role in the inquiry, including whether he directed the aide to make the call or knew at the time that it had been made.
Even if Inouye were directly involved, it would not violate the rules the Senate sets for itself, experts said.
Both the FDIC and the Treasury said the decision was not affected by the involvement of Inouye’s office.
Inouye reported ownership of Central Pacific shares worth $350,000 to $700,000, some held by his wife, at the end of 2007. The shares represented at least two-thirds of Inouye’s total reported assets. Inouye has requested a delay in filing his annual financial disclosure for 2008, which was due this spring, and he declined to provide the current value of his investment. Since the end of 2007, the bank’s stock has lost 79 percent of its value....
The Honolulu Advertiser
...Continued at: http://www.kycbs.net/Central-Pacific-Bank.htm
See also: http://www.voy.com/129276/1412.html
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NEW DISCOVERY (03-14-09): More undisclosed conflicts of interest between Steven Guttman, Mary Lou Woo, David Farmer, Robert Kihune, Sandwich Isles Communications, Bank of Hawaii, Gilbert Tam, Mary Bitterman, Donna Tanoue, Barack Obama, Steve Case, AOL, Dan Case, Punahou School, Citigroup, Robert Rubin, Henry Paulson, Suzanne Case, Faye Kurren, The Nature Conservancy, Haunani Apoliona, Goldman Sachs, Kamehameha Schools, Michael Parsons, etc.
March 14, 2009
Ex-CEO of Bankoh considered
for Citigroup board
By David Segal, Honolulu Star-Bulletin
Former Bank of Hawaii Chief Executive Michael O'Neill reportedly is one of the candidates being considered for a position on the board of directors at financially troubled Citigroup Inc.
O'Neill, who turned around Bankoh's lagging fortunes in less than four years before retiring at age 57 in August 2004, was mentioned along with former U.S. Bancorp CEO Jerry Grundhofer and William S. Thompson, former co-chief of bond investment manager Pimco, according to a report in the Wall Street Journal.
The newspaper said Citigroup is expected to announce the board changes next week when it files its proxy statement with the Securities and Exchange Commission. Any nominees would have to be formally approved by the board and voted on by shareholders.
O'Neill took over then-called Pacific Century Financial Corp. from Larry Johnson on Nov. 3, 2000, and in less than four years transformed the bank into a more efficient operation, elevated earnings to record highs and increased shareholder value nearly fourfold.
He also became somewhat of a TV personality with the bank's "Tell Mike" campaign.
Richard Parsons, a one-time University of Hawaii student who took over as chairman last month, is one of the few Citigroup directors with experience in both banking and leading a large company.
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NEW DISCOVERIES (11-30-08):
February 1, 2000
Clinton names Tanoue
to full term on FDIC
President Bill Clinton has nominated Donna A. Tanoue, chairwoman of the Federal Deposit Insurance Corp. since May 1998, to a new six-year term on the agency's board.
The Honolulu attorney was initially appointed to serve the final two years of a member who stepped down. The highest ranking Hawaii resident in Clinton's administration, she frequently testifies before congressional committees on banking issues and was involved in making sure banks were prepared for anticipated Y2K computer problems.
Her nomination to the agency that insures deposits at U.S. banks and savings institutions and examines state-chartered banks is subject to confirmation by the U.S. Senate.
Tanoue, 45, was state commissioner of financial institutions from 1983 to 1987. She was campaign manager for Hawaii Sen. Daniel Inouye and was a partner in Goodsill Anderson Quinn and Stifel law firm.
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NEW DISCOVERY (11-30-08):
THE BEST GOVERNMENT MONEY CAN BUY
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NEW DISCOVERY (09-08-08):
September 26, 2000
Untold Tales of the West
by Greg Wongham
There’s a story unfolding throughout the western part of America (Utah, Nevada, California, Nevada, Washington, Oregon, and Idaho) that is not being told and unlike the great sagas of pioneering men and women that founded of the country, this story of the West is being hushed up and here's the reason why.
This story is about the banking company, Bank of the West, and the bank holding company that controls it, BancWest. BancWest was created when Hawaii’s second largest bank, 1st Hawaiian Bank merged with Bank of the West, which is controlled by the French banking firm BanqueWest. This consolidation of capital between European, Hawaii and the California based Bank of the West has created the 2nd largest bank in Utah. They will have 118 branches in Northern and Central California, 30 branches in Oregon, 9 branches in Washington, 68 branches in Utah and Idaho and 23 branches in New Mexico and 7 in Las Vegas, Nevada.
The public should be concerned about these mega changes in the banking system because of the similarities they bare to the changes in the banking system that caused the failure of the thrift banks throughout the country in the ‘80s. The failure of the thrifts amounted to $ 328 billion of losses and in 1989, the closing of the Federal Savings and Loan Insurance Company (FSLIC). If the Federal Deposit Insurance Company (FDIC) falls victim to the myriad of unforeseen banking problems that arose in the ‘80s, then a crisis exist that threatens the principles of the FDIC and exposes the ordinary citizen to financial ruin.
The politically connected role of 1st Hawaiian Bank is integrally linked to Washington and Wall Street. It existed during the tenure of former Secretary of the Treasury, William Simon, who served during the Reagan Administration (1970-1979), and through the tenure of former Secretary of the Treasury Robert Rubin, who served during the Clinton Administration (1993-1999), until he resigned in May of 1999. 1st Hawaiian’s CEO, Walter Dodds and former Governor John Waihee, as well as, Hawaii’s present Governor Ben Cayetano were listed as guest who were slept overnight and met with President Clinton at the White house. The mere fact that these people are acquainted is no crime, so, what's the problem?
The problems are based on loan losses that may have been carried on the books of 1st Hawaiian Bank since 1975, when Hawaii’s first thrift bank failed. 1st Hawaiian took over the ailing thrift at the behest of then (D)Governor George Ariyoshi, who was also one of the bank’s directors. From 1975 to 1983, nine of Hawaii’s 20 thrift banks, as well as, Hawaii’s equivalent of the FSLIC, Thrift Guaranty, failed. Hawaii’s Thrift Guaranty was established by the State legislature and contained provisions that mandated that the monies contributed into Thrift Guaranty would come from the 20 State chartered banks.
The monies would be used to insure depositors accounts up to $10,000 per account. In 1985, 1st Hawaiian Bank’s CEO, Walter Dodds was reported to have come to the rescue of the State’s thrifts by loaning the State $32 million, which would eventually be repaid by the taxpayers of Hawaii.
A run on the Hawaii banks ensued, based on the outcry from the public surrounding rumors of insider deals and political corruption linking the Governor and his brother James Ariyoshi. Hawaii’s Democratic Party machine appointed Ms Donna Tanoue as the Hawaii Bank Examiner after he was made the scapegoat for stalling and not taking action sooner. Ms. Tanoue white-washed the situation; and, in the end; no one was held accountable and no one did time. Reports suggested that the Governor had intervened on behalf of his good friend and long time political supporter, developer Norman Inaba. This was similar to the classic question that arose across the country as one thrift after another failed, it ask, “what are the risks when a bank loans the majority of its money to one developer?”
The loan losses that have been carried on the books of 1st Hawaiian as “goodwill” assets came back to haunt the bank in 1998, as the bank attempted to expand and buy-out other banks. The Federal Deposit Insurance Company (FDIC) standards required banks to set aside cash reserves to cover both old and new loan losses. The bank realized that this might present problems for them and their future plans to expand. That’s when the Hawaii Democratic machine was able to influence President Clinton to appoint Ms. Donna Tanoue to the position of Chairman, of the FDIC. Since then, the FDIC has lessened their standards and a record number of banks have failed. The results of which is that the FDIC has lost money.
The greatest threat to the people of California, Utah, Nevada, Washington, Oregon, Idaho, New Mexico, Colorado and the other western states that the Bank of the West will call home, lies in the fact that the FDIC is the agency that decides whether or not, one bank has the financial capacity to buy out another bank. If Ms. Tanoue is allowed to cover-up for her politically connected banker friends as she did before; then the public should beware of the financial losses that may accrue if the bank’s losses rise.
Last week, the Japan Travel Bureau, warned Japanese travelers about going to Saipan because of the rising crime including murders, and increasing drug problems. BancWest has begun operations in Saipan. If tourism suffers because of the social unrest, then business suffers and banks lose money. The question that arose as the savings and loans failed was, what is the risk of banks loaning the majority of their money to one developer? The question that the public should ask is, what are the risk of a bank holding company that seeks to do business in countries that are experiencing social and political instability?
The Clinton / Gore link to the Hawaii bank scandal
Before the politically connected Hawaii banks could fulfill their plans to expand they needed support from the 1993, Democratic Party’s Presidential hopeful, William Jefferson Clinton. They used their connections to Asian financial banking sources and the vast fortune of the Hawaii Democratic Party controlled Hawaiian Trusts like a carrot to lure the cash strapped Clinton. It resulted in Clinton’s appointment of Goldman-Sachs, co-director Robert Rubin as Clinton’s Secretary of the Treasury. Goldman-Sachs was already involved with Hawaii banking deals that included former Secretary Treasurer, William Simon.
In his position as Secretary of the Treasury, Robert Rubin was successful in changing two laws that had been part of the Code of Federal Regulations (CFR) for more than 60-plus years. The first of the laws, the Glass-Steagall Act was implemented after the stock market crash of 1929. Like many of the banking and finance related laws that were passed during this time, the Glass-Steagall Act was meant to protect the public against risk that might jeopardize their money relative to the sales of securities. The law, forbid banks from engaging in the securities business. The government’s newly created securities regulatory agency, the Securities Exchange Commission (SEC) wanted to deny any chance for banks to co-mingle the monies of depositors with the minimum cash required to raise capital through the sale of stocks and bonds. Don’t be surprised if one day, ads appear in your local papers offering high-yield Chinese government bonds (for dams, bridges, highways, airports, and weapons of mass destruction).
The second law that was changed by Rubin in 1997, was the Bank Holding Company Act. He argued that the laws were archaic and were instituted in a time that didn’t reflect the changes that the American banking industry faced in today’s competitive financial world. The modifications to the Bank Holding Company Act would allow America’s banks to broaden the definition of banking services that would be allowed by the government’s financial regulatory agencies.
Thus, Rubin was successful in opening the door for bank holding companies and their affiliates to engage in stock brokerage activities like underwriting and dealing, as well as, other diversified banking and finance related services [including insurance]. The changes that were made by Rubin, and the lessening of the standards by Ms. Tanoue, made it possible for 1st Hawaiian’s holding company, BancWest to enhance their revenue generating potential despite the old loan losses they absorbed to keep their political insiders out of jail after the Hawaii thrifts failed.
One wonders how you’ll be factored into the equation, after all, its only money ... your money.
This page posted on September 26, 2000
Last updated on October 01, 2004
Greater Things/Clinton Scandals/Riadi/First Hawaiian Bank Link
See also: The Secret Affairs of Fannie Mae, Sallie Mae & Freddie Mac
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U.S. Department of Justice
Executive Office for United States Trustees
Office of Research and Planning
For Immediate Release
October 30, 2001
U.S. TRUSTEE PROGRAM LAUNCHES
BANKRUPTCY CIVIL ENFORCEMENT INITIATIVE
WASHINGTON, D.C.--The United States Trustee Program has launched an initiative to more aggressively use existing civil enforcement methods to curb abuse of the bankruptcy system, Martha Davis, Acting Director of the Executive Office for United States Trustees, announced today.
"Effective case administration is vital to ensure the American public that the bankruptcy system provides relief for honest but unfortunate debtors overcome by serious financial difficulties," Davis stated. "The Civil Enforcement Initiative emanates from the U.S. Trustee Program's long-standing commitment to enforce the Nation's bankruptcy laws and explore other meaningful strategies to bolster public confidence in the integrity and effectiveness of the bankruptcy system."
"The priorities of the initiative will require a concerted effort nationwide to use existing tools in a way that best accomplishes tangible results and improvements for case administration," Davis continued. "Many of our offices use such strategies today and we hope to build upon their experience. By focusing our resources on these priorities, we also seek to address some of the concerns that have been at the forefront of debate in recent years both before Congress and in other public venues. In the end, this is very much a community effort that will require communication and cooperation with private bankruptcy trustees and with the bankruptcy bench and bar."
These are the priorities of the Civil Enforcement Initiative:
Ensuring that Chapter 7 is not abused and that Chapter 7 debtors are held accountable.
Chapter 7 debtors who do not comply with the law will have their cases converted or dismissed, or their bankruptcy discharges denied or revoked. Enforcement measures include motions to dismiss Chapter 7 cases under 11 U.S.C. §§ 707(a) and 707(b), and complaints to bar or defer discharge under 11 U.S.C. § 727.
Protecting consumer debtors, creditors, and others who are victimized by those who mislead or misinform debtors, make false representations in connection with a bankruptcy case, or otherwise abuse the bankruptcy process.
Attorneys and bankruptcy petition preparers (non-attorneys who prepare bankruptcy documents for a fee) must engage in full disclosure, be free of conflicts of interest, and engage in ethical practices. Enforcement measures include motions for sanctions, contempt of court, and disgorgement under 11 U.S.C. § 329 for misconduct by attorneys, and complaints and motions under 11 U.S.C. § 110 for misconduct by bankruptcy petition preparers....
Fighting fraud and abuse by making criminal referrals and assisting United States Attorneys in criminal prosecutions.
The U.S. Trustee Program is a component of the Justice Department that oversees the administration of bankruptcy cases and intervenes in court to enforce the bankruptcy laws. There are 21 regions in the Program, each headed by a U.S. Trustee appointed by the Attorney General.
The Civil Enforcement Initiative took effect Oct. 1, 2001, with the start of the federal government's 2002 fiscal year. Previous U.S. Trustee Program initiatives have focused on issues such as enhancing the supervision of private trustees who administer Chapter 7 bankruptcy cases, increasing the efficiency and speed of Chapter 7 case administration....
Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
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Donna Tanoue is expected to testify regarding her business, professional, and personal relationships with Kirk Caldwell; Kamehameha Schools; Dee Jay Mailer; Hamilton McCubbin; William S. Richardson; Eric Martinson; Mark Hastert; Lawrence Johnson; Bank of Hawaii; Gilbert Tam; Robert K.U. Kihune, Sandwich Isles Communications; Harold Johnston, Grant Johnston, Summit Communications; Clayton Hee; Al Hee; Haunani Apoliona; Office of Hawaiian Affairs; Dianne Plotts; Constance Lau; Goodsill Anderson Quinn & Stifel; Federal Deposit Insurance Corp. (FDIC); Bank of Honolulu; Sukamto Sia; Guido Giacometti; Susan Tius; Renton Nip; Warren Price III; Judge Lloyd King; Bank of the Orient; Moshtar Riady; Robert Rubin; Ron Brown; Asian Development Bank; Walter A. Dods, Jr., First Hawaiian Bank; Evan Dobelle; Mary Bitterman; Michael Chun; University of Hawaii Foundation; Dan Inouye; Daniel Akaka; William J. Clinton; George W. Bush; Curtis Ching; Mary Lou Woo; Steven Guttman; Judith Neustadter Fuqua; Calvin Say; Joseph Souki; Henry Peters; Richard Wong; Kenneth Hipp; Jeffrey Stone; Earl Anzai; Lyn Anzai; Yukio Takemoto; Everett Dowling; Peter Savio; Japanese Cultural Center of Hawaii; Sanford Murata; Colbert Matsumoto; Lionel Tokioka; City Bank; La Societe Nationale; Paul Alston; Robert Clarke; Edwina Clarke; Margery Bronster; Linda Lingle; John Waihee; Ben Cayetano; George Ariyoshi; Judge Barry Kurren; Faye Kurren; Judge Kevin Chang; Judge David Ezra, Judge Samuel King, James Wriston, David Farmer, Frederick Black; Debra Wong Yang, J.P. Schmidt and others to be named upon discovery.
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July 1, 2005: Originally posted on www.the-catbird-seat.net
March 13, 2007: Judge David Ezra signs Order to shut down website
September 10, 2009: Latest update on www.kycbs.net
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