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Another Goldman Lawsuit Imminent? From The Mail Bag: Lehman To Sue One Or More Big Banks Over Derivatives "Fraudulent Transfer"

Tyler Durden's picture




 

A week ago we disclosed the unredacted Volume 5 of the Valukas report, in which the full details of the Lehman derivative portfolio were presented, as well as the names of "white knights" who stepped in in the last moment to onboard Lehman's holdings at a firesale valuation. Furthermore, it was Valukas' conclusion that Lehman may have a claim to sue the counterparties for fraudulent transfer. It appears this is precisely what is about to happen. We just received the following tip:

Lehman Holdings will be filing a lawsuit against one or more major banks in regards to the valuation of derivatives. This will occur tomorrow or Monday. It is the first such lawsuit (valuation dispute) of its kind by Lehman. Some of the counterparts to Lehman's existing trades weren't willing to play nice, so the "estate" felt it necessary to rack up another few thousand billable hours and take this battle to court.

Which banks you may ask? The Valukas report indicated the beneficiaries of the alleged fraudulent transfer were as follows: Goldman Sachs, Barclays, Morgan Stanley, JPMorgan, Citadel L.P. and DRW Trading. Surely, another lawsuit for shady business practices against Goldman is all the firm needs right now. At least it will provide Steve Liesman with countless opportunities to present the Goldman side of the case on CNBC over and over, coupled with the epilepsy inducing Breaking News indicator.

 

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Thu, 04/22/2010 - 23:30 | 314020 percolator
percolator's picture

That should be enough drive the S&P 500 to 1250 tomorrow alone.

Thu, 04/22/2010 - 23:38 | 314025 Thunder44
Thunder44's picture

Yes, Time for lehman to exact it's revenge.Thank you SEC.

Thu, 04/22/2010 - 23:41 | 314027 mattco
mattco's picture

It's probably JPM, the derivative king. Obama will quash it immediately as no one is allowed to touch Dimon. Can't have wall street's golden boy getting in trouble, that's Lloyd's job.

Thu, 04/22/2010 - 23:55 | 314038 Village Idiot
Village Idiot's picture

"Lloyd's job." 

 

Yes.

Thu, 04/22/2010 - 23:53 | 314036 AccreditedEYE
AccreditedEYE's picture

Keep the ball rolling...KILL The Squid.

Fri, 04/23/2010 - 00:02 | 314045 Mrmojorisin515
Mrmojorisin515's picture

funny that goldman sachs gets charged just as the big gold fraud story is breaking,  havn't heard much on that lately

Fri, 04/23/2010 - 00:05 | 314048 Village Idiot
Village Idiot's picture

Hi,

How much of a majority by the voting public would be needed to require all "players" to submit to a Lie Detector Test?  Could we do it with 60%?

Fri, 04/23/2010 - 09:16 | 314313 ToNYC
ToNYC's picture

It would be more useful to try a Truth Detector Test where you could get to keep your booty if you were ever found to have told same. Then there is the noise. The lies are like the hay in the haystack, the truth is the needle. The needle pricks and busts bubbles as well as quickly draws blood.

Fri, 04/23/2010 - 00:06 | 314050 Nolsgrad
Nolsgrad's picture

y'all just need to accept that GS is smarter than all of us. P/E is sub 8

Fri, 04/23/2010 - 00:19 | 314059 alien-IQ
alien-IQ's picture

yes their PE is indeed sub 8...however, if one were to subtract "ill gotten gains" from their earnings calculations...their PE may then actually begin to resemble that of AIG.

Fri, 04/23/2010 - 00:29 | 314069 Nolsgrad
Nolsgrad's picture

They print money. Seems cheap to me. You say ill gotten gains, I say smart bastards. I don't own it myself, but just might have to buy some, seems to cheap.  Plus them contributing to repubs says they're hedging their bets and are gonna shrug this nonsense off and laugh. The other bank should have done their due dilligence on that CDO.  

Fri, 04/23/2010 - 00:36 | 314074 ZeroPower
ZeroPower's picture

The DD was done.

Im all for Caveat Emptor when it comes to banks, but realize shit was missing in the statements which SHOULD have been declared. The DD guys aren't fortune-tellers, they don't know whos not only playing the other side of the wager (nothing illegal here) but also that those same players also have a say in how their bets unwind.

Fri, 04/23/2010 - 00:30 | 314071 Nolsgrad
Nolsgrad's picture

and the timing of this with the financial reform bill is too uncanny to to be staged.

no denying that fact.

Fri, 04/23/2010 - 08:36 | 314263 John McCloy
John McCloy's picture

  I always found the belief that Goldman was much smarter than everyone else on Wall Street. That once again was another PR media CNBC creation. On CNBC former Goldmanites were given prominent face time and men like Chuckles Cramer were present to suck in money and craft an image of Goldman being run by a 4 Nikola Tesla's locked up in a think tank underground in the situation room and they could never miss. They are not like anyone else on Wall Street except they actually began to believe they could walk between the rain drops. I refuse to believe anyone is that intelligent if they backed themselves into an insolvent corner in 2008. I am still waiting for the money to be forefully taken from the AIG slush fund payment. 

Also did anyone notice the CNN SEC P.R. hit piece released this morning. This is old news here on ZH but managed to find its way to the front page of CNN.

http://www.cnn.com/2010/POLITICS/04/23/sec.porn/index.html?hpt=T2

Fri, 04/23/2010 - 09:18 | 314318 ToNYC
ToNYC's picture

Satan is the sharpest knife in the drawer in Hell.

God made Heaven; man-made Hell.

Fri, 04/23/2010 - 00:08 | 314052 Implicit simplicit
Implicit simplicit's picture

 Buy lawyers. Dowe, Screwum and How will have a field day.

This is good news. GS and the stock market can suffer the death of a million small cuts.

Eventually, the robotic algos will run out of shorts to squeeze. Then, like Asimov's "I Robot", they will turn short, and destroy their makers, the cyclical bulls. The healing can begin only after the destruction ensues. 

 

Fri, 04/23/2010 - 00:21 | 314063 Howard_Beale
Howard_Beale's picture

+100

Fri, 04/23/2010 - 00:39 | 314078 williambanzai7
williambanzai7's picture

WSJ Says Gupta reportedly passed info on Goldman's Buffet deal...

http://online.wsj.com/article/SB1000142405274870387640457520042328239110...

 

Fri, 04/23/2010 - 00:50 | 314084 BlackBeard
BlackBeard's picture

Warren buffet stands by his uber-ethical investment in Golden sacks.

 

http://www.bloomberg.com/apps/news?pid=20601087&sid=ang.0SuxxtK0&pos=1

Fri, 04/23/2010 - 01:23 | 314099 Howard_Beale
Howard_Beale's picture

Time to pull up the squid node image again...a primer for the newbies:

http://www.zerohedge.com/sites/default/files/images/GS%20NNDB.jpg

Tyler,

If you have had more fun with nodes lately, take a break and play to update it.

Fri, 04/23/2010 - 02:08 | 314120 Miles Kendig
Miles Kendig's picture

The process of inundation gathers force...

Fri, 04/23/2010 - 06:31 | 314196 TraderMark
Fri, 04/23/2010 - 06:32 | 314197 Orly
Orly's picture

And now something going on with the $5B Buffet deal...

And, apparently someone tipped of Raj about the deal from Goldman...

Becky Quick was so flustered, so hurt, so personally affronted she couldn't even talk.  I believe the word is apoplectic.

Sucks to find out your hero is just another free-loader on the take, I guess.  I feel bad for you, Becky.  Get well soon!

:D

Fri, 04/23/2010 - 07:03 | 314208 Waterfallsparkles
Waterfallsparkles's picture

Lehman Revenge.  Lehman knew how the game was played and will now Stab the Big Banks in the Back.  Not nice to let one of your Breatheran take a fall.

Fri, 04/23/2010 - 08:01 | 314227 wallstreetnobody
wallstreetnobody's picture

And let's not forget the WSJ and Bloomberg are reporting that one of Goldman's directors gave Galleon inside information on the Buffett investment into GS.  http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aOsAhLBo9WTA

Fri, 04/23/2010 - 09:50 | 314322 ToNYC
ToNYC's picture

"You get to Eat what you Kill", they told the troops. Now the Generals are in a locked room, their left arms handcuffed together and each with a dagger. There is a tiny exit and the room is on fire. Enjoy the show!

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