Flushing Out the Ongoing Bank Fraud and Financial Terrorism

The number of foreclosure filings hit a record high in the 3rd quarter: "Despite signs of broader economic recovery,
number of foreclosure filings hit a record high in the third quarter -
a sign the plague is still spreading."

And banks are keeping losses off the books as they ignore the people that are not paying their mortgages:

JUAN GONZALEZ: And William Black, where is the outrage? It
seems to me, at this stage, with the—as the foreclosures continue to
escalate in numbers, and yet we’re seeing these enormous profits less
than a year after the financial crisis. There doesn’t seem to be the
kind of outrage, even in Congress, that there was six months or eight
months ago.

WILLIAM BLACK: There’s no palpable outrage, certainly not
in Congress. The reform efforts on derivatives, for example, are a
scandal. They exempt virtually all of the problem derivatives, and
they’re designed to exempt it. And that’s the bill that’s introduced,
and of course it’s likely to get worse with additional lobbying from
the special interests.

Link the things that you’ve just been talking about. You talked
about foreclosures reaching record highs. But in fact, foreclosures,
relative to delinquencies, are quite low compared to historical ratios.
In other words, banks have tons of folks who are not paying their
mortgages on time, and they’re not foreclosing. And the reason they’re
not foreclosing is, once you foreclose, you have to recognize losses
under the accounting rules. And the banks gimmicked the accounting
rules. They put pressure on Congress, and Congress put pressure on the
accounting profession to gimmick the accounting rules now about a year
ago. Now, these bonuses, of course, are paid compared to alleged
profits.
What happens if you understate your losses dramatically? You
report much higher profits and much higher bonuses. So this is a web of
fraud, in which they are getting as much as they can before the place
goes to hell in a handbasket again.

Here we are neck deep in debt to pay off the gambling debts of the bankers and now they are completely ignoring their very real losses that are piling up at a record rate simply so they can keep the bonus money flowing into their own pockets:

The Dow is Up but Your House is Gone

So here we have another bankster scam being waged on the consuming public. The scam is to create another "too big to fail" scenario as they make record profits and pay out record bonuses by rigging their books.

But the good news is the Dow is up.

So you or someone you care about is likely without a job or looking for more work. But the elite are rigging the system again, and you are going to fix things next time by voting for a Republican.

And what are these bankers with their Enron style accounting doing to help the homeowners that are on the verge of losing their homes? You can be certain that they are still out there offering ARMs to unsuspecting victims of their financial rape of the world.

And as for you? You get nothing but shafted:

It's time to recognize what it means to be part of the billionaire-bailout nation. Citizenship comes in three distinct flavors.

If you are wealthy, it's fantastic to take part in the resurgent Wall Street boom. You are thrilled to see the trillions in taxpayer dollars successfully prop up the financial sector. After all it's not really your money -- your tax shelters take care of that. You love the rise in the markets. You are now reaping the rewards of investing in a sector that rests firmly upon government welfare, and in which the largest institutions are guaranteed from failure. It feels good to see double-digit returns again, which you feel you truly deserve. The gap between your wealth and the average American's is utterly fantastic. Life is good.

If you have a job, you are feeling better than a year ago. Your 401k is coming back from the dead. The stimulus program seems to be helping with your employment. You may even get some relief from health care reform. But you are not seeing your wages increase. (Overall the average production workers real wages are down more than 18 percent since the mid-1970s.) It's not easy to maintain a middle-class existence or get anywhere near one if you're not already there. Layoffs might be slowing down but you are still petrified that your job will soon disappear. You are unsure you can provide for your children's education and your own retirement. The future seems much less secure than it did for your parents' and grandparents' generations.

If you don't have a job you're in deep trouble. You are a "lagging indicator."

If you are among the Nouveaux Welfare Riche of the world?

Then your life is still good. The rest of us will never have a chance unless they fix the real problems.

These rich bastards know the government will hand out more of our future tax money over to them so they can continue to profit no matter how outrageously insane and fraudulant their business practices. Heck... Congress doesn't even want to take a real honest look at one of the major problems in of all of this:

As chairman of the House Committee on Oversight and Government Reform, Representative Edolphus Towns
has not been shy about criticizing the excesses of the financial
services industry, from executive bonuses to Wall Street profits, as
well as the spotty track record of some bond-rating agencies.

But his refusal to subpoena records involving Countrywide Financial,
a company blamed for lending practices that contributed to the subprime
mortgage crisis, has made Mr. Towns himself the target of criticism.

Now, I don't really care about the faux smears of some Democrats that underlie the overall schemes of the opposition party. The real problem here is that if they start looking at the symptoms of this Great Recession? The Bank of America owned Coutrywide mortgage mills?

It might lead them to the real fiancial disease.

The banks and shadow banks that got us all stuck where we are and are continuing with more fraud and will continue to take us around this depressing loop and they will find new ways to flush the nations' economy down the toilet as the old ways are still being brought to light:

Apparently, when you say something long enough and loud enough,
people start to believe it, even when it defies reality. Here, for
instance, is the normally skeptical Barney Frank on the subject: “What
happened was an explosion of loans being made outside of the regular
banking system. It was largely the unregulated sector of the lending
industry and the underregulated and the lightly regulated that did
that.”

To which I can now triumphantly reply: Oh, really???

Last weekend, after the column was published, an angry mortgage
broker — someone who felt she and her ilk were being unfairly
scapegoated by the banking industry — sent me a series of rather
eye-opening documents. They were a series of fliers and advertisements
that had been sent to her office (and mortgage brokers all over the
country) from JPMorgan Chase,
advertising their latest wares. They were dated 2005, which was before
the subprime mortgage boom got completely out of control. They’re still
pretty sobering.

“The Top 10 Reasons to Choose Chase for All Your Subprime Needs,”
screams the headline on the first one. Another was titled, “Chase No
Doc,” and described the criteria for a borrower to receive a so-called
no-document loan. “Got Bank Statements?” asked a third flier. “Get
Approved!” In a number of the fliers, Chase makes it clear to the
mortgage brokers that the bank doesn’t need income or job verification
— it just needs to look at a handful of old bank statements.

Right now people are being tried because they knew that this bust economy was coming but were still pushing their junk products on investors:

On Wednesday prosecutors painted a different story, claiming that
the men knew their success as managers of mortgage-related funds was
coming to an end in the spring of 2007, so they began a campaign of
lies to keep investors from withdrawing their funds in the hopes of
turning things around. The funds collapsed in July of that year,
costing investors about $1.6 billion.

Messrs. Cioffi, 53 years old, and Tannin, 48, potentially face a
maximum of 20 years in prison for each of the several fraud counts of
which they were charged in 2008, after a year-long investigation.

Defense lawyers have stressed that most of the investors were banks,
insurance companies and investment funds, who knew the risks of
investing in the Bear Stearns funds.

It's "human nature" to "use hindsight bias" against people after
"things don't turn out well," but "that's not fair to Matt," Ms. Brune
said about her client. "This is a case about trying to do your best,"
she said.

Since we know that they haven't stopped selling junk mortgages even as they are purposely ignoring the billions and billions in mortgages that should be putting them into the major losses category so they can continue to get their great bonuses, and they are still gambling with credit derivatives and credit default swaps at the same unregulated pace that brought the economy of the world down...

It will be impossible for them to claim the "hindsight bias" defense the next time this comes down the pike.

You don't have to be a financial genius to know it is all coming again because none of the problems, the real causes like Derivatives and CDS and myriad practices of these Wall Street financial fraudsters, nor the symptoms like the mortgage mills offering up ARMs and other economic disasters waiting to happen, have been stopped:

I have posted this warning of Bank of America's (BAC)
naked swap writing to my subscribers a few weeks ago. Since BAC is
reporting this week, I have decided to make my suspicions public. I
have found evidence that this bank has $32 billion of naked (as in
apparently unhedged) swaps on its books - just like AIG.
The difference is this bank is bigger, probably has more exposure, and
has already been bailed out - several times. Oh, did I mention the
insured collateral is nearly half BBB rated or lower? How about extreme
management issues at the top, and I mean all the way to the top (the
CEO may actually bring down the ex-treasury secretary and maybe even
the Fed Chairman). A trunk full of junk, surrounded by drama. It should
be an interesting conference call today when they report, that is if
anybody decides to ask the right questions.

As many of my subscribers
and readers know, I have caught many companies on the short side as
they imploded. One company that I did not get was American
International Group. The reason it escaped me? I was too close to it. I
have met Frank Tizzio (then president), Maurice Greenburg (then CEO and
Chairman), and a several of their upper management to collaborate on
deals, and was impressed with the way they ran their shop. Because of
this, I didn't apply the same critical, skeptical eye that I used with
the other prospects. Alas, because of such, I overlooked the
inevitable, and in retrospect, the blatantly obvious.

Every step of the way the banks have been trying to stick us with more and more losses as they find new ways to profit off of the government troughs.

Everything you need to know about the bailouts...

in 2 short paragraphs. A relatively long post for Atrios. Wheeeeeeeeeeeeee!

What's The Goal?

Others
have made this point in various ways, but if the goal is to bail out
the banksters and keep the existing too big to fail financial order in
place with the same cast of characters in charge, then all of this
sounds like a cunning plan.

If the goal was really to get banks
lending again they'd be funneling large sums of money to healthy
(mostly smaller) financial institutions who actually made sensible
choices over the last few years.

Meanwhile a fire sale is going on:

Lenders
have become so overwhelmed by the foreclosure crisis that they are
starting to unload properties in bulk to investor groups at steep
discounts.

Investors then flip the properties for a profit without necessarily improving the home.

For
example, a unit of Citigroup, the troubled financial giant, sold a
foreclosure in Temecula to an Arizona investment firm for $139,000 when
comparable homes in the area were selling for $240,000 to $260,000.

The
firm listed the home for $249,000, received multiple offers and the
property has entered escrow, said Amber Schlieder, the real estate
agent who handled the listing.

Citigroup left a 100 grand on the table. This looks like a great way to abuse the taxpayer even more.

I want to know who they are all selling in bulk to.

Remember who else was buying up the mortgages in bulk?

So
it may come as a surprise that a dozen former top Countrywide
executives now stand to make millions from the home mortgage mess.

Stanford
L. Kurland, Countrywide's former president, and his team have been
buying up delinquent home mortgages that the government took over from
other failed banks, sometimes for pennies on the dollar. They get a
piece of what they can collect.

"It has been very successful -
very strong," John Lawrence, the company's head of loan servicing, told
Mr. Kurland one recent morning in a glass-walled boardroom here at
PennyMac's spacious headquarters, opened last year in the same Los
Angeles suburb where Countrywide once flourished.

The
Treasury has shown a willingness to recklessly toss all of our futures
away to keep these "Too Big Failures" operating in their self-entitled
comfort zone.

What incentive do the banks have to sell these
properties for as much as they can when they can sell them in bulk at a
loss to their buddies' companies (or even their own companies) so they
can turn a profit on them and doing this knowing the failure bankers
can ship off all of the bills for the losses to us? Think about it.

If
Geithner were handing these trillions to the smaller more responsible
bankers some of us little people would be able to buy these cheap
houses...

But this way the elite get to keep all of
the assets in their greedy hands and have us pay for their gambling
addiction failures too. And then they will turn a profit on selling us
these properties AGAIN.

“While some critics are distressed that Mr. Kurland and
his team are back in business, the executives say that PennyMac’s
operations serve as a model for how the government, working with banks,
can help stabilize the housing market and lead the nation out of the
recession. “It is very important to the entire team here to be part of
a solution,” Mr. Kurland said

Important for Whom? You, maybe, but not me.

I am thinking predatory lenders
should already be in jail and that this is a model for more financial
disaster for taxpayers. I smell smoke and all I see is a fire and a
bunch of greedy arsonists standing around with their gasoline soaked
hands in our pockets...

And, so far, the elite are achieving their goal of bailing out themselves with our money.

From buhdydharma at dKos, some extra food for thought:

Hard Not To Call It Evil

According to people who should know, The Ruling Class is using our money....draining our money, the money we use to survive and feed our children and to actual produce things,
to rescue the very structure...that allows them to BE The Ruling Class.
The structures that enable them to Rule us by controlling credit,
capital, and our pensions and IRA's and 401k's.

And our
regulatory agencies and politicians. And so by extension our military.
Which is then used in the service and interests of The Ruling Class and
their Party of Business, the GOP.

These people, the Ruling
Class, are the ones who got us into this financial armageddon. These
are the same Ruling Class that took us to war in Iraq, after ignoring
the warnings that an attack was coming.

They are the same people
who made America into a nation that tortures people they KNOW to be
innocent. They are the same people...if they even deserve the
name...who are stopping any serious efforts to mitigate a Climate
Crisis of incomprehensible scope.

They are the same people that
so unprecedentedly had the Supreme Court decide Bush vs. Gore, so they
could have Bush cut their taxes and deregulate the very same structures
that we are now being called to give OUR money to prop up. Yes, the
very same people who are directly responsible for everything that has
gone wrong in our world, are the people who are now telling us....not
asking us....telling us, that we have to bail them
out. While as always, not telling us the whole story, not telling us
what they are doing behind the scenes and behind our backs.

Read on...

At this very moment Banks are making up books telling Wall Street how profitable they are but it is all a massive illusion as what they are really doing is hiding losses and managing to turn it into their own personal profits for their insider friends and even themselves. They are doing all of this using our tax dollars to create some kind of warped Capitalist Welfare Elitist society. And it is not like the some people in the financial world haven't noticed:

Is it time to say that this is truly economic warfare on the people of the world and start calling it the financial terrorism that it all really is?

Because until some of the real problems that lead to all of the other problems that everyone knows still exist are fixed... This is exactly what it is.

And fegining ignorance of it? Not gonna cut it when people called it what it was long before this current meltdown:

The rapidly growing trade in derivatives poses a
"mega-catastrophic risk" for the economy and most shares are still "too
expensive", legendary investor Warren Buffett has warned.

The world's second-richest man made the comments in his
famous and plain-spoken "annual letter to shareholders", excerpts of
which have been published by Fortune magazine.

The derivatives market has exploded in recent years,
with investment banks selling billions of dollars worth of these
investments to clients as a way to off-load or manage market risk.

But Mr Buffett argues that such highly complex financial
instruments are time bombs and "financial weapons of mass destruction"
that could harm not only their buyers and sellers, but the whole
economic system.

There are so many ways that financial tools have been developed to terrorize the people...

And this is all the rest of the people, the one's that are not the Noveaux Welfare Riche, have to show for it:

Step 2: Documenting Bushvilles

Welcome to America in decline:

"They are tagging us because we are homeless," she said, staring at her orange wristband. "It feels like a concentration camp."

We need to set out to document these atrocities in as much detail as we can. Are there any places like this near you:

Bushville, Ontario, California:

"Is a campground the solution to the problem of homelessness? The California City of Ontario thinks so."

Bushville, Los Angeles, California:
 

"Tent cities have sprung up outside Los Angeles as people lose their homes in the mortgage crisis."

More:

"Large,
often confused, crowds formed ragged lines behind police barricades
where officers handed out color-coded wristbands. Blue meant they were
from Ontario and could remain. Orange indicated they had to provide
more proof to avoid ejection, and white meant they had a week to leave.

Pattie Barnes, 47, who had her motor home towed away last week, shook with anger.

"They are tagging us because we are homeless," she said, staring at her orange wristband. "It feels like a concentration camp.""


Welcome to free market America:
"It feels like a concentration camp."

Bushville, Sacremento, California:

"Some
300 people call a tent city in Sacramento home, including Tracy
Vaughan, who moved to the city with her husband six months ago.


Via the AP, No Job - No Home:



As many as 1200 homeless?
"Some
nearby homeowners have reportedly complained about the tent cities, but
Sacramento's new mayor, former NBA star Kevin Johnson, has suggested
that the tent cities might provide a temporary solution to the lack of
shelter. As many as 1,200 people may be living in these tent cities,
according to the local ABC 7 News."



Bushville, Reno, Nevada:

"A
few tents cropped up hard by the railroad tracks, pitched by men left
with nowhere to go once the emergency winter shelter closed for the
summer.

Then others appeared — people who had lost their jobs to
the ailing economy, or newcomers who had moved to Reno for work and
discovered no one was hiring.

Within weeks, more than 150 people
were living in tents big and small, barely a foot apart in a patch of
dirt slated to be a parking lot for a campus of shelters Reno is
building for its homeless population. Like many other cities, Reno has
found itself with a "tent city" — an encampment of people who had
nowhere else to go.

From Seattle to Athens, Ga., homeless
advocacy groups and city agencies are reporting the most visible rise
in homeless encampments in a generation."



Bushville, Santa Barbara, California:

"The relatively tony city of Santa Barbara has given over a parking lot to people who sleep in cars and vans."



Bushville, Fresno, California:

"authorities
in Fresno are trying to manage several proliferating tent cities,
including an encampment where people have made shelters out of scrap
wood."


America the Beautiful:
3rd world shantytowns.

Bushville, Athens, Georgia:

"Wayne Hill packed up his meager belongings last week and moved his home deeper into the woods.

Hill's red tent and neighboring homes had inched too close to the nearby highway, and police told him to move.

"We've
asked them to move back off the road a little bit," Athens-Clarke
police Maj. Carter Greene said. "It seemed they were encroaching on
Lexington Road."

snip

But Tent City limits slowly
crept downhill, so now people look up from Lexington Road and a
perimeter off-ramp to see campsites and junk piles.
"

Can you just imagine the horror of having to actually see the homeless?

Bushville, Seattle, Washington:
(Note: there are several - 5 or 6 - of them in Seattle)

"Activists
point to the annual One Night Count as evidence that not enough shelter
beds exist. During the count of the homeless in Seattle and other parts
of King County on Jan. 25, volunteers counted 2,631 people sleeping in
cars and trucks, doorways and parks and under highways, or walking
around or riding buses to stay warm in freezing temperatures. When
comparing similar areas counted a year ago, the number of homeless
increased 15 percent.

An additional 2,515 people spent the night
in emergency shelters, with 3,293 more in transitional housing, for a
total of 8,439 homeless people."



Bushville, Nashville, Tennessee:

"To
its credit, Nashville recognizes that there is a problem with the
"system" and, as the community slowly works towards correcting these
problems, understands that there is at least a temporary need for the
existence of homeless encampments.

To its discredit, Nashville
is currently engaged in dismantling Tent City, the largest (the
population fluctuates wildly at times, but is consistently around 50)
and oldest (in existence since the mid 1980s) homeless camp in the
area, which is slated to close June 1, 2009; sooner if outreach workers
are able to find housing for the remaining residents."



Bushville, Chatanooga, Tennessee:

"The demolition of Tent City left many of Chattanooga's homeless without a place to live.

But not so for one lucky man.

For the first time in six years Richard Waldrep has a home to call his own.

Waldrep has spent the last several years on the streets, for the last few months he called "Tent City" home.

But, now that home has been destroyed.

Due
to safety concerns and liability issues Norfolk Southern Railroad
bulldozed the property leaving Waldrep and almost 30 others to find
another place to live. "



Bushville, St. Petersburg, Florida:

"Police
officers with box cutters showed up where St. Pete's tent city
residents had moved and set up. The cops slashed their tents to the
ground as residents watched in shock. Now one homeless group is moving
to label St. Petersburg as the 'meanest city in the nation.' Video by
Tina May."




The
police destroying the few meager belongings left to these homeless
people. Is that what the mandate of police officers is supposed to
include today? What happened to serve and protect?

Do you know of any of these tent cities or Bushvilles
near you that the media has yet to disclose of? If you do... Links,
photos, and videos need to be added to our own archives in order to
document the widespread disaster that is a very result of this failed
Bush economy and the free-market run amok.

Arthur Delaney at the HuffPo is attempting to document these stories. We should all be doing our part to identify these places:

There
are reports of tent cities popping up across the country as
unemployment rises in a worsening economy. The biggest and
highest-profile shantytown is in Sacramento, where hundreds of
newly-homeless tent residents are cooking soup in old coffee cans.

We want to know where else this is happening.

HuffPost
readers: Is there a tent city near you? Have you noticed a newly-formed
community of people living together in improvised housing in a public
space? Email us! Send any information you've got (or pictures) to
submissions+homeless@huffingtonpost.com.

Sacramento's KCRA reported this week that city officials plan to shut the tent city down:



While
this is a good idea - documenting where they exist is really only Step
2 because it is an idea without a real humane purpose.


Rather
than just documenting these stories, perhaps we should try to solve the
problems? In some of these Bushvilles there are already people working
to help fix the problems as both short term and long term solutions are
needed.

In Portland, Oregon, many in the community are providing the elbow grease to make their tent city, Dignity Village, more livable for the short term and more effective at helping the people get back to work:

Many
more community's across the country, have looked to us for answers to
help the homeless population that is growing bigger each year. When
People come out to visit us , they are amazed at what we have set up
and how we help the 50 to 60 homeless people that live here at any
given time, a stepping stone effect that gives each person living here
a chance to help themselves regain a new start to gain main stream
living again.

All of this comes from donations from viewers and visitors that help to support our goals.


Dignity
Village has been working this way since 2001 and long before Bushvilles
started popping up. I imagine that they are probably experiencing a
huge surge in people needing their help as the economy has collapsed
over the last few months.

The right did not solve the problem of
Hoovervilles, but the left did with the bold and visionary leadership
of FDR. Many on the right would like nothing more than to ignore
Bushvilles because it exposes the reality of their political ideology
taken to extremes.

We can and will solve the problem of Bushvilles.

I am no community organizer, but I imagine that we need to take these steps first:

1. Identify the major problem - done

2. Identify where it exists - ?

3. Identify problems that are more local to each area - ?

4. Get to work solving the short term problems on a local area needs basis - ?

5. Get to work solving the long term problems on a local area needs basis - ?

Are any of you up to a real challenge?

Are
any of you interested in beginning Step 2 and starting to document as
many of these tent cities and Bushvilles as we can? Searching for
links, getting out in the streets and photographing and videoing these
places AND, more importantly, documenting the problems they face so we
can try to find real solutions would be no small undertaking.

Something tells me we ain't seen nothing yet from these financial terrorists... Because we have all seen these Bushvilles growing more and more as things have gotten worse and worse and nobody has done a God-damned thing about them, either.

Not fixing the problems, and not fixing what caused them all.

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But it is more of a rant that I slapped together as I started writing it this morning.

Ex-Enron boss Skilling to appeal

Skilling was found guilty of fraud, insider trading and conspiracy

Former Enron boss Jeffrey Skilling is to appeal against his convictions relating to his role in the collapse of the energy giant in 2001.

...and the Supreme Court has agreed to take the case!

-----
"I hope we shall crush in its birth the aristocracy of our moneyed corporations which dare already to challenge our government in a trial of strength, and bid defiance to the laws of our country." - Thomas Jefferson

but the fact that they are taking the case is a bad sign.

It's a very business friendly Supreme Court - on the verge of being anti-labor in its leanings.

that they usually don't take cases like this unless they think there is a possibility that they can change the original decisions. This will be a test of just how corrupt the right wing judges are willing to be, IMHO.

and try to filter it through the definition established by executive order of the Bush Administration, I don't get much resonance beyond item A (assuming part (d), of course).

Executive Order 13224

(d) the term "terrorism" means an activity that

-- (i) involves a violent act or an act dangerous to human life, property, or infrastructure; and

-- (ii) appears to be intended

---- (A) to intimidate or coerce a civilian population;

---- (B) to influence the policy of a government by intimidation or coercion; or

---- (C) to affect the conduct of a government by mass destruction, assassination, kidnapping, or hostage-taking.

Then I understood that what's missing that distinguishes this crime wave from terrorism is motive.

I think that we're being gang-raped, pillaged, and looted simply because there is no consequence to taking easy money beyond temporary embarrassment in a bad news cycle that lasts the duration of an American attention span. Who needs to invest in cost/benefit analysis when the ROI is always at least the investment? And you're rescued if you started out rich!

Motive? Doesn't seem to be policy change as I imagine is the motive of terrorism, but easy money and apparently noone to stop them!

The players come qualified with the predator's natural lust and the guile of parasites, piles of big money, and a population that's practiced in the inevitability that follows from licensing government to the high-bid franchise.

I think the last election's winners include some with a real desire for 'change' but the nature of our system seems to prohibit burning the house down and rebuilding it before you move in.

This is kind of the long explanation of what I intended in the title of 'The Freedom of No Choice'.

What we have seems almost to be a ritualized coup d'etat where we believe it's a new leadership elected each cycle but we keep getting the unexpected, what they pay for. Just coincidental (right!) that a bunch of the big payer-players are financial racketeers.

This is not a perfect explanation of my sense of things but not way off either

A coup d'état (pronounced /ˌkuːdeɪˈtɑː/, us dict: kōō′·dā·tâ′), or coup for short, is the sudden unconstitutional deposition of a legitimate government, usually by a small group of the existing state establishment—typically the military—to replace the deposed government with another, either civil or military. A coup d’état succeeds when the usurpers establish their legitimacy if the attacked government fail to thwart them, by allowing their (strategic, tactical, political) consolidation and then receiving the deposed government’s surrender; or the acquiescence of the populace and the non-participant military forces.

Typically, a coup d’état uses the extant government’s power to assume political control of the country. In Coup d'État: A Practical Handbook, military historian Edward Luttwak says: “A coup consists of the infiltration of a small, but critical, segment of the state apparatus, which is then used to displace the government from its control of the remainder”, thus, armed force (either military or paramilitary) is not a defining feature of a coup d’État.

-----
"I hope we shall crush in its birth the aristocracy of our moneyed corporations which dare already to challenge our government in a trial of strength, and bid defiance to the laws of our country." - Thomas Jefferson