When banks rob people

This time the banks are zeroing in on Geithner's cash giveaway bonanza, the "Public Private Investment Partnership" (PPIP). As expected, Bank of America and Citigroup have angled their way to the front of the herd, thrusting their snouts into the public trough and extracting whatever morsels they can find amid a din of gurgling and sucking sounds. Here's the story from the New York Post:

"As Treasury Secretary Tim Geithner orchestrated a plan to help the nation's largest banks purge themselves of toxic mortgage assets, Citigroup and Bank of America have been aggressively scooping up those same securities in the secondary market, sources told The Post...

But the banks' purchase of so-called AAA-rated mortgage-backed securities, including some that use alt-A and option ARM as collateral, is raising eyebrows among even the most seasoned traders. Alt-A and option ARM loans have widely been seen as the next mortgage type to see increases in defaults.

One Wall Street trader told The Post that what's been most puzzling about the purchases is how aggressive both banks have been in their buying, sometimes paying higher prices than competing bidders are willing to pay.

Recently, securities rated AAA have changed hands for roughly 30 cents on the dollar, and most of the buyers have been hedge funds acting opportunistically on a bet that prices will rise over time. However, sources said Citi and BofA have trumped those bids."("Double Dippers; Citi and B of A buy laundered loans at lower rates", Mark DeCambre, New York Post)

Thus begins the next taxpayer-subsidized feeding frenzy, featuring all the usual suspects. The race is on to vacuum up as much toxic mortgage paper as possible so it can be dumped on Uncle Sam at a hefty profit. These are the same miscreants the Obama administration is so dead-set on rescuing. Better to let them sink from their own bad bets.

More here.

Harris County's plan for voter registration

I like the sound of this, so let's keep an eye out for how effectively it is implemented:

County Tax Assessor-Collector Leo Vasquez has put together a coalition of private organizations and large employers to make sure that residents who move within or to the county get an on-the-spot chance to fill out fresh voter registration applications.

Moving into an apartment or buying a dwelling involves signing lots of papers. Now the Houston Apartment Association and the Texas Land Title Association will make sure the papers include voter registration forms, Vasquez said Wednesday.

Continental Airlines and the Houston Independent School District are the first employers to join the coalition by ensuring that registration forms go to workers who update their personnel records with new addresses.

“Let’s hit people when they are trying to make one of those moves,” said Vasquez, who was appointed in December to succeed fellow Republican Paul Bettencourt, who resigned from his elected post.

Some poor word choices there, Leo, but the effort seems to be well-directed:

Vasquez said he created the voter registration coalition without regard to such controversies. He also said he does not plan to play a partisan role.

Registered voters who move without updating their registrations can, in most cases, vote on Election Day at the polling place for the precinct where they formerly lived. With the rise of early voting participation, where voters live within the county matters less because they can vote at any early voting station.

Having to return to an old neighborhood to vote sometimes discourages voters from casting ballots, Vasquez pointed out, so updated registrations make participation easier.

Vasquez also hopes the program will make the volume of voter registrations more consistent through the year. Typically, address changes and other registrations peak a few weeks before each election. These spikes lead to last-minute errors by those who fill out the cards and a processing backlog at the voter registrars’ office, according to Vasquez.

Fair enough. Let's see how it goes.

John Hope Franklin 1915 - 2009

As an author, his book ''From Slavery to Freedom'' was a landmark integration of black history into American history that remains relevant more than 60 years after being published. As a scholar, his research helped Thurgood Marshall and his team at the NAACP win Brown v. Board of Education, the 1954 case that barred the doctrine of ''separate but equal'' in the nation's public schools.

''It was evident how much the lawyers appreciated what the historians could offer,'' Franklin later wrote. ''For me, and I suspect the same was true for the others, it was exhilarating.''

Franklin himself broke numerous color barriers. He was the first black department chair at a predominantly white institution, Brooklyn College; the first black professor to hold an endowed chair at Duke; and the first black president of the American Historical Association.

He often regarded his country like an exasperated relative, frustrated by racism's stubborn power, yet refusing to give up. ''I want to be out there on the firing line, helping, directing or doing something to try to make this a better world, a better place to live,'' Franklin told The Associated Press in 2005.

In November, after Barack Obama broke the ultimate racial barrier in American politics, Franklin called his ascension to the White House ''one of the most historic moments, if not the most historic moment, in the history of this country.''

''Because of the life John Hope Franklin lived, the public service he rendered, and the scholarship that was the mark of his distinguished career, we all have a richer understanding of who we are as Americans and our journey as a people,'' Obama said in a statement. ''Dr. Franklin will be deeply missed, but his legacy is one that will surely endure.''

More bad newspaper news

-- The Houston Chronicle canned 12% of its staff yesterday (and today), including Clay Robison in the Austin bureau and Richard Stewart, whose East Texas columns I've read for thirty years, going back to when he wrote them in the Beaumont Enterprise-Journal. Hair Balls and Banjo Jones have more.

It looks like Steve Swartz is really determined to earn a bonus in his first year.

-- There is no longer a newspaper in Ann Arbor and three other small Michigan cities.

-- Gannett is furloughing employees and cutting pay rather than go through another round of layoffs -- for the time being:

The pall looming over U.S. newspapers grew even darker Monday as Gannett Co. informed most of its employees that they will have to take another week of unpaid leave this spring, while a Michigan daily unveiled plans to close its print edition after 174 years.

And The Plain Dealer, Ohio's largest newspaper, also ordered pay cuts and 10-day furloughs for nonunion employees Monday to cut costs as advertising revenue drops.

The moves were just the latest sign of the distress afflicting newspapers across the country as they try to cope with a dramatic shift in advertising that is forcing publishers to figure out how to survive with substantially less revenue.

Signaling it doesn't see an upturn anytime soon, Gannett wants virtually all of its U.S. employees to stay at home and forgo at least one week's pay before July. About 6,600 workers outside the United States won't be affected by the furloughs.

Executives and many workers making more than $90,000 annually will sacrifice two weeks pay in hopes that Gannett _ the owner of USA Today and more than 80 daily newspapers _ will be able to avoid more layoffs after jettisoning 4,000 jobs last year.

This will mark Gannett's second round of furloughs this year. The company, which employs about 41,500 people, saved about $20 million by imposing one-week furloughs during the first three months of this year.

No end in sight.

Update: The NYT and the WaPo as well ...

Two of the most respected U.S. newspaper publishers, The Washington Post Co and The New York Times Co, are embarking on new cost cuts in the face of dramatic declines in advertising revenue.

The Times said it laid off 100 workers and is cutting non-union salaries. It is also asking unionized employees to accept similar concessions to avoid layoffs in the newsroom.

The Post is offering a new round of buyouts to newsroom, production and circulation employees, and said it could not rule out laying off staff.

"This was a very difficult decision to make," said a memo signed by Times Chairman Arthur Sulzberger Jr. and Chief Executive Janet Robinson. "The environment we are in is the toughest we have seen in our years in business."

The moves come as a host of other U.S. newspaper publishers have reduced staff, declared bankruptcy or shuttered once-vaunted newspapers, as readers seek news online and elsewhere and as the recession crimps advertising spending.