CalPERS Accuses Lehman of Fraud

Leo Kolivakis's picture

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Eternal Student's picture

Thanks for posting this, Leo. I hadn't heard about it elsewhere, and appreciate the info.

Founders Keeper's picture

Thanks for the article, Leo. These are significant players and spectacular crimes.

IMO, nothing will come of the lawsuits---legally. Calpers is likely pushing the lawsuits to expedite more Federal bailouts for their failed investments. (What? An outfit as big as Calpers doesn't have at least a small department of intelligent employees performing due diligence on multi-billion dollar investments as a matter of fiduciary responsibility? Come on.) There's a lot of blame to go around.

 

 

mamba-mamba's picture

Well, there can always be a possibility that Lehman flat out lied their asses off to calpers, and knowingly provided false information for purposes of due dilligence evaluation. Usually due dilligence stops short of assuming that the counterparty is operating in bad faith or deliberately deceiving you. Doesn't it?

 

I mean, I don't have any facts. I'm just saying that even a sophisticated buyer can be duped if the seller is willing to blatantly misrepresent facts and provide false documentation.

ebworthen's picture

 

"I'm just saying that even a sophisticated buyer can be duped if the seller is willing to blatantly misrepresent facts and provide false documentation."

 Yes, you are right, Uncle Sam dupes a lot of "buyers" (every day) into the "AmeriKan Dream".

 

williambanzai7's picture

I don't think they are going to find what Dick Fuld knew before the storm. We already know his position on these complicated financial matters:

"I didn' now nuttin'"

Which sounds incredulous, but hey Bob Rubin says the same as well as all the rest of them. 

I am a Man I am Forty's picture

it's amazing to watch calpers and wall street work together to totally screw over the average joe, now if calpers could just sue someone who didn't go out of business they would really be on to something

mamba-mamba's picture

Well, aren't most of the people with calpers pensions average joes? How is calpers screwing the average joe here?

StychoKiller's picture

Who do you "think" is paying for all these Legal Eagles?

Big Ben's picture

These guys would hypnotize the animals with financial jargon, then offer them loads of free cash. The boars and hyenas would end up deeply in debt (and just as hungry as before).

sgorem's picture

In China, a fraud committed the size & scope of THE GREAT FUCKING OF THE AMERICAN TAXPAYER, would be dealt with expediently with a 22 shot in the head. Then the bill for the whole thing, including the bullet would be sent to the family of the fraudster, bankster, politician. Why not here? I can think of hundreds, if not thousands of these dregs out there that haven't even been issued a misdemeaner for their part of the destruction of our country, and maybe the world.

Kali's picture

+ .22   These people are all guilty of treason.

apberusdisvet's picture

I would put Fuld, Dimon, Mozilo, Frank, Dodd, Bernanke and Geithner (and the rest of the Masturbators of the Universe) in an iron cage with 5 hungry boars (with tusks) AND 10 hyenas and put the whole scene on C-Span.

I Am The Unknown Comic's picture

...it would be interesting to watch and see which one of the banksters eats another bankster first, as well as which bankster gets eaten first.

I doubt the boars and hyenas would want to eat the toxic bansters.....

Oh, and um, banksters could probaly only be caged by silver....

ebworthen's picture

 

This is about attorneys making some dough, not about right and wrong.

The only justice will be when those who robbed the work and lives of innocent hard working people hang by the neck.

 

Buck Johnson's picture

States need money and there is no way to get the crazy money they need from the populace without massive tax increases.  So now they must go after the banks.

Careless Whisper's picture

In all likelihood, nothing will come out of these lawsuits,

oh really?  and you arrived at this conclusion, how?

 

Ned Zeppelin's picture

Agree, why bother then? I think where's there's this much smoke, there's fire. 

max2205's picture

Love this battle of the greedy half wits

ZackAttack's picture

Warren Buffett was right when he said you got to punish failed bankers:

“If I was running things, if a bank had to go to the government for help, the C.E.O. and his wife would forfeit all their net worth,” he said. “And that would apply to any C.E.O. that had been there in the previous two years.”

 

Methinks the bailout queen speaks with forked tongue.

Ckierst1's picture

Maybe we need to trash corporatism by trashing the corporation.  No mo corporate veil.  Make it closely held and really get some skin in the game.  Why do we need the gummint to run interference for their corporate elites?  I mean, if you are gonna hammer the top dog and his latest trophy, then why bother to keep it?

nmewn's picture

What part of Rule 701 did a government pension plan have a problem with...exactly?

Maybe there are too many rules?

rosiescenario's picture

About time someone holds these crooks accountable...if nothing else, they'll be made to go through days of deposition.

El Hosel's picture

  Just look at the picture, he looks very innocent.  Must be some kind of mistake.