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Letting No Disaster Go To Waste, SEC Prepares To Let Lehman Executives Walk For Repo 105 Fraud

Tyler Durden's picture


And while the general public frets over the latest geopolitical disasters, the SEC proves Rahm Emanuel correct once again, and letting no disaster go to waste, man-made or natural, the world's most incompetent (but massively underpaid, or so they claim) regulator is preparing to let Dick Fuld completely off the hook for last spring's stunning Repo 105 report by Anton Valukas, whose findings even the bankruptcy expert said were probably cause for civil lawsuits. The WSJ reports: "In recent months, Securities and Exchange Commission officials have grown increasingly doubtful they can prove that Lehman violated U.S. laws by using an accounting maneuver to move as much as $50 billion in assets off its balance sheet, which made it appear that the securities firm had reduced its debt levels....After zeroing in last summer on the battered real-estate portfolio and an accounting move known as Repo 105, SEC officials have grown more worried they could lose a court battle if they bring civil charges that allege Lehman investors were duped by company executives. The key stumbling block: The accounting move, while controversial, isn't necessarily illegal." Oh no, illegal it is. The problem is that should the SEC actually pursue it and win, that act would open up the floodgates for hundreds of lawsuits against everyone from Bank of America and Citi, which have also disclosed they used comparable tactics to misrepresent the true status of their books, to shady accounts like Ernst & Young, all the way to FASB at the very top of the corruption pyramid. And with hundreds of millions if not billions in legal fees about to be paid out if the fraudclosure back door settlement fails, the SEC simply can not allow the pursuit of justice to threaten the viability of America's only national interest: that of its criminal banking syndicate.

From the WSJ:

A year ago, it looked as if the SEC and federal prosecutors had a road map to use against Lehman's former top executives. Last March, the Repo 105 transactions were condemned by court-appointed examiner Anton R. Valukas, who said in a report that they enabled Lehman to "paint a misleading picture of its financial condition."

In the transactions, Lehman swapped fixed-income assets for cash shortly before the securities firm reported quarterly results, promising to buy back the securities later. The cash was used to pay down the company's debts. Emails sent by executives at the company referred to Repo 105 as a "drug" and "basically window dressing."

Mr. Valukas concluded there were "colorable," or credible, legal claims against Ernst & Young, Mr. Fuld and former finance chiefs Ian Lowitt, Erin Callan and Christopher O'Meara.

People close to the investigation cautioned that no decision has been reached on whether to bring civil charges, adding that new evidence still could emerge. Investigators are reviewing thousands of documents turned over to the SEC since it began its probe shortly after Lehman tumbled into bankruptcy in September 2008 and was sold off in pieces. Officials also have questioned a number of former Lehman executives, some of them multiple times, the people said.

But after zeroing in last summer on the battered real-estate portfolio and an accounting move known as Repo 105, SEC officials have grown more worried they could lose a court battle if they bring civil charges that allege Lehman investors were duped by company executives. The key stumbling block: The accounting move, while controversial, isn't necessarily illegal.

In a possible sign that the probe has slowed, the SEC hasn't issued a Wells notice to Lehman's longtime auditor, Ernst & Young, according to people familiar with the situation. The firm had concluded that the accounting in the Repo 105 transactions was acceptable. Wells notices are a formal signal that the SEC's enforcement staff has decided it might file civil charges against the recipient.

The snags are the latest sign of trouble for the SEC and other U.S. regulators trying to punish companies and executives at the center of the financial crisis. So far, no high-profile executives have been successfully prosecuted. Last month, a federal criminal investigation of former Countrywide Financial Corp. Chief Executive Angelo Mozilo was closed without charges.

The punchline:

It isn't clear what the Lehman executives have said to SEC officials during the probe. Last year, Mr. Fuld told lawmakers he had "absolutely no recollection whatsoever of hearing anything" about Repo 105 at the time of the transactions. Lehman's demise was caused by "uncontrollable market forces" and the U.S. government's unwillingness to rescue the firm, he said.

In other words, with everyone complicit on the crime, there is not one party that can be singled out without every party having to be sued. Ah the benefits of risk diversification: Wall Street realized all too well that a symbiotic approach to middle class parasitism is the best one, as it leaves it far less open to direct attack. Yes, any given bank may reap slightly less in benefits immediately, but over the long run everyone makes money and if there is some catastrophe the taxpaying peasant will have no choice but to bail everyone out. And should there be a legal case against one, in a reverse case of the Three Musketeers, it would have to be a case against all. 2008 confirmed the first. Dick Fuld is confirming the second. But don't forget - the SEC has no money and no computers. So it is isn't their fault they are corrupt and siding with the criminals on this one... and on every other one.

Expect Charles Ferguson's question of why nobody has ever gone to jail over the greatest financial crisis since the depression to remain unanswered in this lifetime.


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Sat, 03/12/2011 - 11:59 | 1044353 downwiththebanks
downwiththebanks's picture

Why should Lehman executives go to jail when the working people of Wisconsin caused the crisis?

Now, cue the phony outrage . . . 

Sat, 03/12/2011 - 12:06 | 1044371 AN0NYM0US
AN0NYM0US's picture


Sat, 03/12/2011 - 12:29 | 1044441 Twindrives
Twindrives's picture

Fuck up Obama will be playing golf with these same guys next week.

Sat, 03/12/2011 - 13:41 | 1044580 cdskiller
cdskiller's picture

This thread just went off the rails.

Sat, 03/12/2011 - 15:10 | 1044790 JW n FL
JW n FL's picture

Thank God for the Republicans!!! Bite Your Tongue Sir!!! Not Your Thumb!!!


Thank God the Lobby Saved the Bankers!!!


Free the Bankers Bitchez!!!


Lil Bush Part Duex in Technicolor "Change You Cant Fucking Believe Didnt Happen"...

Sat, 03/12/2011 - 15:32 | 1044838 Michael
Michael's picture

When someone criticizes Obama, it doesn't necessarily mean they are cheering for the republicans.

The Lehman's are shareholders in the New York Federal Reserve Corporation. Any Questions?


Sat, 03/12/2011 - 15:48 | 1044877 JW n FL
JW n FL's picture

Lil Bush Part Duex in Technicolor "Change You Cant Fucking Believe Didnt Happen"...


is Obama.. you fruit.

Sat, 03/12/2011 - 17:29 | 1045028 Pegasus Muse
Pegasus Muse's picture

When does the Reign of Terror begin in America?  What will it take?

Sat, 03/12/2011 - 17:26 | 1045024 IQ 145
IQ 145's picture

 nice. good research.

Sun, 03/13/2011 - 07:16 | 1046213 Bringin It
Bringin It's picture

Michael - since you showed up, you've been posting some great stuff.  Thanks.

Sat, 03/12/2011 - 14:18 | 1044689 Savyindallas
Savyindallas's picture

really, really funny. sounds like a line from Dick Fuld's testimony. maybe someone can put together a Utube highlight video - the best best of Dick Fuld and Lloyd Blankfein Congressional testimony. Hard to believe these pathetic, weasily little piece of shits are maters of the universe - or at least henchmen and stooges for the masters of the universe. Can't they do better than that? Actually, i think the Rothschilds think it's all very funny  -a joke on us. I'm sure they sit their and laugh while those two rich clowns   lie their asses off amidst evewn worse assclowns like barney frank and the former Chris dodd.

Sat, 03/12/2011 - 22:43 | 1045507 sun tzu
sun tzu's picture

You union parasite bastards should leech off the banker parasites instead of the middle class. Where were the union protesters when the bankers were being handed billions? No outrage back then as the union parasites were too busy stealing what was left from the taxpayers

Sat, 03/12/2011 - 11:59 | 1044357 fuu
fuu's picture


Sat, 03/12/2011 - 12:23 | 1044431 victor82
victor82's picture

Yes you will. Barack Obama and Erick Holder are the Banksters' Poodles.

Matt Taibibi has written a couple of very serious, penetrating articles for Rolling Stone magazine about the Fraudclosure Scandal, the Rocket Docket, and the failure to put Banksters behind Bars.

But, as Matt is a member in good standing of the MSM, and a good partisan Democrat, he refuses to walk back the cat to the reason why the Southern District of New York isn't prosecuting Banksters: they bought protection back in 2007 by giving generously to Obama's campaign. 

In turn, there will be some harsh words towards these economic war criminals, but no serious prosecutions, such as happened when Bill Black was one of the RTC's head regulators. I seem to recall that many of them went to prision in those days.

This doesn't relieve the Bushie Syndicate of their responsibility for what happened during the Fraudclosure Era. It simply indicates that the Banksters bought Protection against the day when the Republicans would be ushered out of town and the "Lefties" ushered into town by the Sheeple. And HopeNChange, like an old Roman Patrician Senator, is a bought politician.

Once Obama is bought, he stays bought. There is something to say for that, after all.

Sat, 03/12/2011 - 12:37 | 1044459 Duuude
Duuude's picture

"I seem to recall that many of them went to prision in those days."




Sat, 03/12/2011 - 13:27 | 1044558 JW n FL
JW n FL's picture


Sat, 03/12/2011 - 14:00 | 1044645 NewThor
NewThor's picture

Wait? You mean Obama and his staff, of which about 37% came from Goldman Sachs,

isn't looking out for the well being of the American people and their future?


What's next? Are you gonna tell me some crazy jibber jabber that his Supreme Court

choice, Elena Kagan was a member of the Research Advisory Council of Goldman Sachs

from 2005 to 2008?

Oh. Wait. Never mind. I just remembered, I voted for Obama.

And then, I began to curse his evil name the day he appointed Tim "I'm really fucking evil"

Geithner to the Treasury.

Carry on!


Sat, 03/12/2011 - 14:19 | 1044687 tamboo
tamboo's picture

they all happen to belong to the secret tribe, just a coincidence i guess.

Sat, 03/12/2011 - 15:47 | 1044869 Michael
Michael's picture

If you voted for Ron Paul last time You would be growing and smoking your own pot right now, and the criminals would be in jail by now.

You'll know better next time.

Sat, 03/12/2011 - 16:24 | 1044936 NewThor
NewThor's picture

I will vote for Ron Paul in 2012 if...

A) He is running.

B) He is still alive.

C) Our country is still standing.

Sat, 03/12/2011 - 20:59 | 1045318 Freewheelin Franklin
Freewheelin Franklin's picture

Ron Paul wasn't on the ballot in the general election in 2008. Instead, he supported the Constutition Party candidate, whose name I can't seem to recall.

Sun, 03/13/2011 - 14:01 | 1046801 LauraB
LauraB's picture

The Constitution Party candidate was Chuck Baldwin.  Everyone needs to register Republican this time around to vote for Ron Paul in the primaries so we can get him on the ballot.

Sat, 03/12/2011 - 13:04 | 1044525 alien-IQ
alien-IQ's picture

then this should make you just a little madder...

From Huff post today:

Fed Report Finds No Wrongful Foreclosures By Banks

WASHINGTON, D.C. -- A months-long internal investigation into abusive mortgage practices by the Federal Reserve found no wrongful foreclosures, members of the Fed's Consumer Advisory Council said Thursday.

During a public meeting attended by Fed chairman Ben Bernanke, consumer advocates on the panel criticized the central bank's examiners for narrowly defining what constitutes a "wrongful foreclosure." At least one member of the panel, comprised of consumer finance experts not employed by the Fed, voiced concerns that the public would not take the Fed's findings of improper practices seriously, since the wide-ranging review did not find a single homeowner who was wrongfully foreclosed upon.


Sat, 03/12/2011 - 14:24 | 1044699 NewThor
NewThor's picture

" A months-long internal investigation into abusive mortgage practices by the Federal Reserve found no wrongful foreclosures..."

For having only 2 mandates, the Federal Reserve seems to have their tentacles and testicles in everything.


Sat, 03/12/2011 - 12:02 | 1044359 SwingForce
SwingForce's picture

At some point, the Buck must stop.

Sat, 03/12/2011 - 12:03 | 1044364 downwiththebanks
downwiththebanks's picture

It has - in Wisconsin.

Yesterday ZeroHedgers were giddy at the thought of the real culprits getting the shank.

This should be a day of celebration.  

Sat, 03/12/2011 - 12:20 | 1044416 Tyler Durden
Tyler Durden's picture

Are you really so confused you think our financial collapse is a zero sum either/or, where either the banks or the unions are at fault?

Sat, 03/12/2011 - 12:22 | 1044429 downwiththebanks
downwiththebanks's picture

Are you really so confused as to not realize there's a Class War taking place?  It's not about the unions - it's about the working people and those who bleed them dry.

Someone has to pay the bills.  Your mock outrage over banker-gangster criminality is pretty transparent, Tyler, after the last couple of days.

Sat, 03/12/2011 - 12:38 | 1044465 H. Perowne
H. Perowne's picture

Last couple of days? Did we forget to pop a Ritalin this AM? Short attention span much? This site has been going after banksters for the last two years or so. Corrupt bankster pigmen or corrupt union pigmen . . . both are helping themselves at the taxpayer trough and gangbanging the soon-to-be-extinct middle class.

There is only one war here worth fighting . . . the war against criminals.

Sat, 03/12/2011 - 15:20 | 1044811 JW n FL
JW n FL's picture

The Zombie Corporations (Bank or Not) who control the Lobby Dollars and then thusly Control the Goobermint.. 


They have Commited Treason Against "We the People".


Until this informaiton is digested by the broader masses the rest of us will suffer along with the ignorant.


As of right now the Duely Elected Rule, we need for the popular idea to be Truth Bound and Boradly Accepted before we can Legally Effect Real Change.


Our Fate is Tied to the Fate of the Ignorant.

Sat, 03/12/2011 - 15:46 | 1044856 Zero Govt
Zero Govt's picture

Correct JW....  but don't expect any of these crooks or their cronies in DC or the Regulators to fall on their sword or suddenly have an 'I See the Light' moment ..these WS and State parasites are pathalogical liars and will cling-on to the bitter end until they are physically removed from office and banged up in jail (or something not nice)

This is economic and moral War..... get your pitchforks ready, there's no other way

Sat, 03/12/2011 - 15:55 | 1044885 JW n FL
JW n FL's picture

I have rope! for Hanging these scumbags from the Trees on the White House Lawn for Treason.  

I have Bullets.. so when the scumbag fucking Law Enforcement / Police want to shoot un-armed Americans I will be shooting back...

I am / have been ready for a good long while.. lets go already! FUCK'EM!!!! ALL!!!!


Sat, 03/12/2011 - 16:22 | 1044932 gorillaonyourback
gorillaonyourback's picture

sad but true. we have to wait till the ignorant get hungry before they sheepishly come out of there cave dwellings.  got no money for pizza to watch the game, hey im getting hungry, what the fuck who took my american dream.

Sat, 03/12/2011 - 18:03 | 1045070 Bob
Bob's picture

Great delivery, that.  Funny!

Sat, 03/12/2011 - 19:51 | 1045231 Zero Govt
Zero Govt's picture

Yep, we're going to have to wait for the sheeple to get angry (lose it).....2013 to 2014 is my estimation before we see pitchforks down the streets based on waiting for the economy to meltdown and that news to really sink in... the American 'political' dream (and European socialists) was one big sack of shit all along ...that'll send the sheepies over the edge

Sat, 03/12/2011 - 12:47 | 1044489 Gargoyle
Gargoyle's picture

And your Woody Guthrie-esque romanticizing of "the working man" as portrayed by patronage hacks in Wisconsin is an anachronism.  These aren't working people, they're grubby ward heelers.

Sat, 03/12/2011 - 13:35 | 1044590 SRV - ES339
SRV - ES339's picture

And you are one of the corporate elite's "useful idiots"... nice to know all that cash didn't go to waste.

Sat, 03/12/2011 - 20:16 | 1045266 Bendromeda Strain
Bendromeda Strain's picture

Oh shit - I hope there is some cash left over!

Sat, 03/12/2011 - 22:50 | 1045542 sun tzu
sun tzu's picture

Are you a paid union parasite living off union members dues?

Sat, 03/12/2011 - 13:45 | 1044610 cdskiller
cdskiller's picture

Come on, Gargoyle, this article is about Lehman walking. It's about institutionalized crime on the highest level. Wisconsin has nothing to do with this.

You want to slam somebody and call them names, do it to Fuld. Do it to Bernanke. Do it to Paulson. Do it to everyone who let these crimes become so widespread.

Or better yet, go back to watching Fox.

Sat, 03/12/2011 - 14:56 | 1044771 rocker
rocker's picture

+3 @cds.....    Although, I would add Lloyd Blankfein from "Godman Shafts", J. Diamon from "The Morque", and V. Pandit from "Shitty Bank". 

Sat, 03/12/2011 - 22:52 | 1045550 sun tzu
sun tzu's picture

If you were too stupid to notice, the first post was making the greedy union hacks out to be victims when they are nothing more than wannabe bankers who couldn't graduate from high school. Go back to watching PMSNBC 

Sat, 03/12/2011 - 17:40 | 1045042 rich_wicks
rich_wicks's picture

This is about the rule of law not being enforced.  It has nothing to do with Wisconsin.  It has to do with the criminality of our Federal government.

Sat, 03/12/2011 - 12:59 | 1044514 Bob
Bob's picture

Apparently, the finance community right down to the rabble-rousing young Turks are driven to be "fair and balanced" (in their minds) to a fault.  Seems everybody has to share blame, regardless of scale, and the degree of blame is apparently unqualifiable, therefor dependant upon nothing more substantive than the eyes of the beholder.

You might find it strange that the finance community seems so poorly equipped to appropriately weight the relative "blame" . . . actually, it stands out as a bizarrely incomprehensible disability in this context. 

My impression is that it's just too much fun to beat on the little guys in a orgiastic celebration of honor and political legitimacy among finance people. 

It appears that they really don't get it. 

Sat, 03/12/2011 - 14:16 | 1044677 NumberNone
NumberNone's picture's all related.  The banksters helped create the state pension mess as much as they helped create the overall fiscal crisis we are in now.  Read Matt Taibbi or do a litte homework.  Here's a great little article to start with...;drawer-container 

Sat, 03/12/2011 - 17:44 | 1045046 rich_wicks
rich_wicks's picture's all related.  The banksters helped create the state pension mess as much as they helped create the overall fiscal crisis we are in now. 


The reason bankers do this, is because they know they won't be prosecuted.

People need to understand now, that the government has given them a license to steal.  You need to take appropriate actions to protect yourself.  This means getting money that doesn't have counter party risk.

Sat, 03/12/2011 - 16:03 | 1044882 Michael
Michael's picture


Didn't I chastise you in a previous thread for spouting mindless drivel? Apparently everything they say about your kind is true.

Bottom line, the public unions are there to protect the high levels of spending the system needs to feed on.

Lower spending levels to balance in every state and the beast starves. It's not rocket science. 

Sat, 03/12/2011 - 19:34 | 1045215 SRV - ES339
SRV - ES339's picture

Have you always had this short sighted myopic view of the world, or was it the green dye... btw you're right, it's not rocket science... how come you don't get it?

Sat, 03/12/2011 - 22:56 | 1045572 sun tzu
sun tzu's picture

How far off the ground were you when your mother shat you out? We don't give a damn about those parasitic union fuckers. They were busy stealing what was left while the bankers were looting. 

Sat, 03/12/2011 - 13:14 | 1044543 velobabe
velobabe's picture

tyler, zerohedge got huge shout outs on max keiser's, on the edge with david decraw. you are very powerful and brilliant with instigating your anonymous status for these last two years. i get it now. it is really working. he put you in the same league as the anonymous group, leading the war against all the bankstars etc.

busting balls, durden†

Sat, 03/12/2011 - 14:39 | 1044742 ZeroPower
ZeroPower's picture

Not really a google search.

Sat, 03/12/2011 - 13:32 | 1044575 SRV - ES339
SRV - ES339's picture

The problem Tyler, is you feed the pack with your anti union shots.

Of course unions are messy beasts, but are the only game in town to fight for the average worker (if not, who does Tyler/)... the harm they cause is not even measurable, when compared to the social destruction at the hands of the bankers / corporations.

Unions (Teachers, Nurses, Bus Drivers, Janitors... give me a break) had nothing to do with the financial collapse, you know that, and any focus on them is wasted energy, a distraction, and supports the Tea Party / Corporate agenda.

I am very confused... that you would fault middle class at all (and public union employees are the middle class). Really, unions have been bashed and busted by the corporate elite for 30 years, since Reagan made his political career by busting the Air Traffic Controllers, and Walker thinks it will be his spring board (he is very wrong).

Sat, 03/12/2011 - 14:41 | 1044744 UGrev
UGrev's picture

I can fight for myself, thanks for asking. I don't need unions or their thug, leadership to whom I would have to "pay for protection". Extortion much? fuck that shit, bro. I'm no-one's money pocket. The only reason Unions exist today is to extort and influence "entities" so that they can anal-fist us with abnormally large cantelopes. 

Sat, 03/12/2011 - 15:46 | 1044872 SRV - ES339
SRV - ES339's picture

UG, you do not have to be in a union to benefit from their existence... the rising tide of union achieved benefit lifts all boats, and removing the few remaining (almost all public now) drops the survival rate (of the middle class) to zero.

IMHO you are fighting the wrong battle my friend!

Sat, 03/12/2011 - 16:26 | 1044935 UGrev
UGrev's picture

Those days are long gone. They outlived their purpose. Now all I get as a "benefit" is outrageous prices and shit quality products. The guarantee of pay has the opposite effect on merit. 

Sat, 03/12/2011 - 18:17 | 1045091 SRV - ES339
SRV - ES339's picture

U really should stop watching Fox... they make it up for ratings (and to obey their corporate masters)... even they don't really believe the shit they spread. WI is simply politically motivated union busting...  how would you like to have a hand in electing President Palin, Bachman, Gingrich?

My regards to Glenn, Sean, Palin and the gang.


Sat, 03/12/2011 - 19:48 | 1045229 UGrev
UGrev's picture

If you lean anymore left, you'll fall off. What is it with commies these days? they want to control EVERYONE.. give it up. 

Sat, 03/12/2011 - 23:00 | 1045595 sun tzu
sun tzu's picture

You are typical of the braindead loser leftist. As soon as you run out of talking points, you fall back to the old Fox, Palin drivel. Why not call him a racist and Nazi too?

Sat, 03/12/2011 - 16:01 | 1044902 JW n FL
JW n FL's picture


To ALL Republicans on this Thread Bitching about the Union(s)...


To all wanna be Hawks / wanna be Conservatives...


$440,781,045,961.00 <----- got NO! Fucking Air Time... No Picket Signs... NOTHING!!!!



Anger as JP Morgan bankers get $10bn pay and bonus pot



JP Morgans Bonus Monies Last Year.. when no real work was completed.. could have paid for Wisconsin in TOTAL which includes the Unions...



Sat, 03/12/2011 - 16:29 | 1044942 UGrev
UGrev's picture

  1. I'm not a republican. I'm libertarian.
  2. I was out in front of my federal building protesting here in Syracuse
  3. I did complain about the absurdity of the banksters fraud and how they used "bailouts for bonuses"
So you're barking up the wrong tree with me. If you want to complain about "no air time", go hit up the offices of the ministry of truth, otherwise known as the MSM. 

Sat, 03/12/2011 - 23:05 | 1045613 sun tzu
sun tzu's picture

Where were you union bitches when JPM was handing out those bonuses? I don't see any union protests of TARP. That's right, the union hacks were too busy robbing the middle class to give a damn. You union parasites have been fucking over the middle class taxpayers for the past 30 years with your millionaire retirement plans paid for by the taxpayers. The game is over. You lost. We won. 

Sat, 03/12/2011 - 13:37 | 1044577 SRV - ES339
SRV - ES339's picture


Sat, 03/12/2011 - 14:01 | 1044660 NewThor
NewThor's picture

Someone JUNKED Tyler "The Main Man" Durden?

That's foooking funny.


Sat, 03/12/2011 - 17:38 | 1045037 Montgomery Burns
Montgomery Burns's picture

Especially considering that's the clearest thing I ever recall him posting in a thread.

Sat, 03/12/2011 - 12:26 | 1044434 SRV - ES339
SRV - ES339's picture

Think this might remind the 'useful idiots' around here who the real enemy is... notta chance.

And when will the SEC get off their fat asses and start investigating those ultra corrupt (bankers got nothin' on us) Teachers... has even one of those leaches ever declared the gifted apples... of course not, they think they're above the bloody law... shame. shame, shame)?

Sat, 03/12/2011 - 19:53 | 1044888 Zero Govt
Zero Govt's picture

UGrev  -  the US and European Unions are, like the monopolist corporates, parasites using the State for power and financial support. They appear to have given up trying to expand in the West because employees here have lost interest in their negative Union images... so the Unions are trying to expand abroad and also shed their Unionised snake skins by taking up positions in international charities/agencies, Human Rights and other 'social' (socialist) causes 

Sat, 03/12/2011 - 12:05 | 1044369 Oh regional Indian
Oh regional Indian's picture

Financial innovation.

Talk about an abstract foundation... and the hubris of building an empire on top of it.

My father once told me that respect for the truth comes close to being the basis for all morality. "Something cannot emerge from nothing," he said. This is profound thinking if you understand how unstable "the truth" can be.

  • from Conversations with Muad'Dib by the Princess Irulan


Sat, 03/12/2011 - 12:04 | 1044370 Kina
Kina's picture

The day will come (when all this crashes and retribution becomes the need of the people) when the SEC, CFTC and other corrupt regulators will be dragged onto the streets by angry mobs and prepared for public execution.


The signs are begining to show of the people become a little less ruley. And with massive unemployment, massive numbers on food stamps....and the catestrophic effects of the coming crash...they should not imagine an easily managed and docile public. Once you kick them out of their zombied TV stupor and into a sea of misery they will search for blood.


I will look forward to Fox broadcasting the hangings of a few particular people from the CFTC, SEC and sundry banks.

Sat, 03/12/2011 - 12:50 | 1044495 EscapeKey
EscapeKey's picture

You think the average J6P even knows the role of the SEC, let alone the CFTC? That he even knows what "CFTC" stands for?

No, they'll go looting and shooting in the homes belonging to what's left of the middle classes.

Sat, 03/12/2011 - 13:44 | 1044612 NumberNone
NumberNone's picture

The financial institutions and their cronies helped craft the laws that the SEC is now being asked to use against them.  Of course that shit won't fly in a court of law.  Everyone gets an out and the SEC just shrugs their shoulders and says 'We tried everything possible...but it's not illegal.  Oh well..."

Sat, 03/12/2011 - 12:07 | 1044376 GlassHammer
GlassHammer's picture

Escaping the SEC is as difficult as escaping a prison that utilizes the honor system.


Sat, 03/12/2011 - 12:09 | 1044379 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Shock horror, surprise, surprise! Er, no. The reason that the SEC (a tentacle on the same beast that is the corrupt government system) are so brazen when letting fellow criminals get away with huge crimes is because they know the docile masses will do nothing.

As the brave people of the middle-east have shown, countries can be changed in days/weeks if the masses want the change... but, no, while there are cheese burgers to be eaten, and fat kids can be fed to make them fatter, and junk on the TV can be watched then the docile masses that is the apathetic US citizenry will do nothing, as is proven daily.

What a pathetic race of humans to put it lightly.They've got the banana republic they deserve.

Sat, 03/12/2011 - 12:11 | 1044385 downwiththebanks
downwiththebanks's picture

Oh, stop it, will you?

When working people in Wisconsin take to the streets as they have in the middle east, Jamie Dimon's Keyboard Cowboys trot onto this message board and attack them as though they rape babies.

Sun, 03/13/2011 - 15:05 | 1046930 Freewheelin Franklin
Freewheelin Franklin's picture

Are you a fucking idiot, or just new here?

Sat, 03/12/2011 - 12:08 | 1044380 truont
truont's picture

It is unberarable to admit that my country has been taken over by a crony capitalist and captured regulator circle-jerk.

Sat, 03/12/2011 - 12:15 | 1044390 downwiththebanks
downwiththebanks's picture

... if it weren't for those fucking bus drivers and janitors in Kenosha!

Sat, 03/12/2011 - 12:16 | 1044408 cosmictrainwreck
cosmictrainwreck's picture

you obviously have not yet achieved the level of cynicism in which I wallow. pity. done my share of wailing, yelling & screaming for naught......

PS: anybody know more about gang called PatriotStorm, orchestrating suits vs. FED, based on tactics of Tobacco settlements? Maybe - just maybe.....

what we really need are some silver bullets (or bulldozers) 


Sat, 03/12/2011 - 12:07 | 1044381 Bendromeda Strain
Bendromeda Strain's picture

So - we know Cox turned a blind eye to the crap while it was going on. It can be fairly argued that he was willfully clueless as to the details/extent. Shapiro has no such luxury, having had the nuts and bolts spilled into her lap. Yet, it was her legal experience that made her such a strong choice they informed us, right before they doubled our chocolate rations.


Sat, 03/12/2011 - 13:01 | 1044501 EscapeKey
EscapeKey's picture

No point to name & shame; they all belong to the same faculty. It's a systemic fault.

Disclaimer: I think Obama's the most dishonest, despicable, lying sack of shit since Bush. And I think the same of Bush since Clinton.

Sat, 03/12/2011 - 16:28 | 1044940 NewThor
NewThor's picture

... but but but


JFK was cool.

Sat, 03/12/2011 - 12:11 | 1044384 jplotinus
jplotinus's picture

Letting the big banks and the big bankers get away with fraud, misrepresentation, deception, no matter how blatant, confirms the rule of law does not apply to such entities.

People may seemingly accept such double standards, and continue to go on about their business as usual and their diversions as always...until, that is, they don't.


Our task may simply be that of not allowing this matter to be a weekend news-dump' item.  Come Monday, there should be additional writings about what the SEC has done, freshly mailed FOIA requests and a detailed plan for further direct action against lawlessness.

Sat, 03/12/2011 - 12:14 | 1044400 downwiththebanks
downwiththebanks's picture

Can't have it both ways:

They've stopped accepting this type of horseshit in Wisconsin, and those who have done so get systematically attacked - hundreds and hundreds and hundreds and hundreds of messages full of invective - right here on these pages.

Sat, 03/12/2011 - 12:22 | 1044428 Crassus
Crassus's picture

Yeah. Does The Drudge Report link to ZH?

Sat, 03/12/2011 - 23:08 | 1045631 sun tzu
sun tzu's picture

When will the Obama administration and Eric Holder DOJ start prosecuting the criminal banksters? When will the unions that put Obama in office demand that the banksters be charged with crimes? Never

Sat, 03/12/2011 - 12:12 | 1044389 Subprime JD
Subprime JD's picture

Is anyone willing to protest outside the SEC building in their local area?? We could hold signs saying "prosecute the destroyers of our economy". Im down.

Sat, 03/12/2011 - 12:41 | 1044472 smlbizman
smlbizman's picture

in the way they have divided the people in this country,it would be impossible to form any group to effect change. does anyone that bought into the teaparty, truly think they have a chance. the best you will get is a bone now and again. with this  i feel the best course is to take care of yours and stay under the radar..... 

Sat, 03/12/2011 - 14:43 | 1044748 JimS
JimS's picture

Well stated. That's what I am doing, taking care of my loved ones, and staying under the radar... that said, I still like to post here and read the comments. So, I guess I am not far enough "under the radar".

Sat, 03/12/2011 - 12:13 | 1044396 WallStreetClass...'s picture


All of these insider trading charges and SEC "bonus tax" ideas are smoke screen and change of attention tactics.  The same goes for the White House's recent push for "settlement" with "robo-signer banks". In the colossal cluster fk that banking has become, where does one place the blame? The banking industry itself had contributed over $10 BILLION over the last decade on "contributions" to both parties, as to continuously disband and repeal all meaningfull and structurally important regulation.  Conspiracy to commit fraud, strict liability for failed financial products and instruments, wire fraud and obstruction of justice, RICO - all come to mind. At we organize a class action against the banks, the ratings agencies and other financial institutions involved in staging the colossal securitization fraud and subsequently crashing the economy and resulting in over $5 Trillion in asset losses in the US alone. We realize that our own government is effectively a captured entity, so no criminal indictments will be forthcoming. But WE THE PEOPLE will hold the fraudsters accountable.  Sign up on our site, we already have more than 3,000 users within last 2 days. UNITED WE STAND
Sat, 03/12/2011 - 12:16 | 1044405 downwiththebanks
downwiththebanks's picture

Don't take your eye off the ball.  We've got to keep hammering the nurses.

Sat, 03/12/2011 - 23:13 | 1045647 sun tzu
sun tzu's picture

No, let the nurses steal from us. It's okay because they're nurses. They should be allowed to steal from the middle class. All government employees should be allowed to steal from the middle class. Keep hammering on the middle class.

Sat, 03/12/2011 - 12:14 | 1044399 Kina
Kina's picture

The more the pump this balloon up the bigger the bang is going to be at the end and the more damage they will do to the average citizen. Keeping on printing BB, really really fuck everything to things will end up so bad there will be nowhere for anybody to hide.


I'm not even American and I'm pissed at the level of systemic corruption that now defines the USA.

Sat, 03/12/2011 - 12:23 | 1044430 Hulk
Hulk's picture

I cannot even begin to communicate the level of outrage I feel. The SEC surviving the Markopolos Senate testimony lets us know that the corruption is endemic...

Sat, 03/12/2011 - 12:21 | 1044422 partimer1
partimer1's picture

The system is complete FUBAR, and thats why the rebellions are coming to america. Until the banking system is prosecuted, there will be no recovery. Its gonna take long time, 5-10 years. 

Sat, 03/12/2011 - 12:56 | 1044509 EscapeKey
EscapeKey's picture

There won't be prosecutions until arrogant politicians realize they work for the people, not the other way around.

And that won't happen until the politicians fear the voters, not the other way around.

And that sadly won't happen until politicians start to hang. Those who make peaceful revolution impossible, make violent revolution inevitable. (Sadly, this is attributed to a politician, JFK).

Sat, 03/12/2011 - 16:05 | 1044908 JW n FL
JW n FL's picture

On June 4, 1963, a virtually unknown Presidential decree, Executive Order
11110, was signed with the authority to basically strip the Federal Reserve
Bank of its power to loan money to the United States Federal Government at
With the stroke of a pen, President Kennedy declared that the
privately owned Federal Reserve Bank would soon be out of business.

Sat, 03/12/2011 - 16:34 | 1044948 NewThor
NewThor's picture

So. Fucking. Sad.

So. Fucking. Sad.

So. Fucking. Sad.

And now the score is....

Federal Reserve +200 Trillion and America (Less than ZERO)

Sat, 03/12/2011 - 12:21 | 1044427 drdj4425
drdj4425's picture

My understanding is that the SEC can only pursue civil claims.  I would like someone to explain why the justice department is not investigating for criminal charges against the suspect bank executives. It sure seems to me that fraud charges under the RICO statutes could be pursued.  The justice department and Eric Holder are responsible and are getting a pass on this.


Sat, 03/12/2011 - 12:36 | 1044454 SRV - ES339
SRV - ES339's picture

Great point drdj! 

SEC fines are a joke, and just 'part of doing business' for these shameless leaches. It's time to give the SEC criminal prosecution power (merge with justice), and shelve the civil wrist slaps... and a few public hangings (and I am very much opposed to capital punishment) would turn things around in a hurry, and would be too good for this scum!

Sat, 03/12/2011 - 16:42 | 1044964 NewThor
NewThor's picture

Didn't the SEC fine CountryWide Mozilla $100 million even though he made $400 million?

That's like a cop catching you stealing a 12 pack of beer, taking 3 of them and letting you go.


Sat, 03/12/2011 - 12:30 | 1044444 max2205
max2205's picture

How many slaps in the publics face can we endure?

Sat, 03/12/2011 - 12:40 | 1044473 ivana
ivana's picture

Indefinite number. Because public has no face.
Only living souls have face. And christians even like to turn the other cheek to get slapped.
That's the magic of democracy! Especially when you have 2 party system - 2 sides of same coin.

Sat, 03/12/2011 - 12:30 | 1044445 bob_dabolina
bob_dabolina's picture

Of course when the culprit, lawyer, sheriff, mayor, and governor are all complicit in the same crime everyone gets off.

Sat, 03/12/2011 - 12:36 | 1044457 Careless Whisper
Careless Whisper's picture

Repo 105 is AAA-okay in England, where it was done.


Sat, 03/12/2011 - 12:38 | 1044460 SRV - ES339
SRV - ES339's picture

sad, but true bob

Sat, 03/12/2011 - 13:05 | 1044469 Franken_Stein
Franken_Stein's picture


Either Blankfein, Dimon, Masters, Fuld, Mozillo, Cassano all go to jail, and I'd prefer Rikers Island in New York City, or there will be civil war in America !


Which one is it ?



America, land of the free, home of the brave.

Or has this just become a shallow meaningless slogan ?


Sat, 03/12/2011 - 14:24 | 1044698 Savyindallas
Savyindallas's picture

looks like it will have to be civil war  -the SEC, DOJ, IRS, Congress and president work for them. However, there will be no civil war until a lot more Americans pull their heads out of their asses and get a clue.  

Sat, 03/12/2011 - 12:42 | 1044476 snowball777
snowball777's picture

When government fails in its sworn duties, it falls on vigilantes to pick up the slack.

Someone told me once 
that there's a right and wrong,
and that punishment
would come to those
who dare to cross the line.

But it must not be true
for jerk-offs like you.
Maybe it takes longer to catch a total asshole.
but I'm tired of waiting.
Maybe it's just bullshit and I should play GOD,
and shoot you myself.
Because I'm tired of waiting.

Consequences dictate 
our course of action
and it doesn't matter what's right.
It's only wrong if you get caught.
If consequences dictate
my course of action
I should play GOD 
and shoot you myself.
I'm very tired of waiting.

I should 
kick you,
beat you, 
fuck you,
and then shoot you in your fucking head.

Sat, 03/12/2011 - 12:41 | 1044477 djsmps
djsmps's picture

CNBC just announced that a Mr. Fuld, veteran financial expert, has joined the the Obama Jobs Council.

Sat, 03/12/2011 - 13:09 | 1044494 Franken_Stein
Franken_Stein's picture


Do Americans really want to tell me that they are not capable of doing what:


1. The east Germans in 1989

2. The Iranians, although quelled

3. The Egyptians

4. The Tunisians

5. The Libyans

6. The Saudi shiites


are/were capable of doing ?


Look, all these countries have/had a notorious secret police.

All these protesters were under constant threat of surveillance, wiretapping, executions, secret prisons, torture and the death penalty, although in Communist East Germany death penalty was abolished in 1981 and removed from the penal code, yet allowed in emergency situations like "subversive actions threatening the state" and "unauthorized crossing of the frontier".


And still all these people rose, despite knowing they might not survive it.

They were not to be intimidated.


I wonder if Americans have the guts to follow in their footsteps.

This time round it will not take place in a far away country brought to your TV screen courtesy of CNN International.

Instead it'll be right around the corner, when you look out your window and you hear the shouting and rioting.


Either this or all of you will continue to live in an eternal nightmare, just like Bill Murray in "Groundhog Day" or was it Keanu Reeves aka Neo in "The Matrix" ?



Sat, 03/12/2011 - 14:41 | 1044746 SashaBelov
SashaBelov's picture

You'll be able to stop watching Jersey Shore and talent shows and act aginst your corrupt leaders when hunger comes to sattle in in your county again - and no food stamps are gonna save situation - or you have massive individual bankruptcies (10 million per year), forclousers. For now your leaders are just enough smart that they dont hurt too much folks at ones. Critical mass is a must, if you want to change anything, and they know it - it's now accidently that there was only 1 million forcloasers a year tempo taken, while throwing people out of their houses.

Sat, 03/12/2011 - 14:44 | 1044754 ZeroPower
ZeroPower's picture

Does America look like the ME to you?

Sat, 03/12/2011 - 15:46 | 1044868 Franken_Stein
Franken_Stein's picture


Thanks to Google Streetview I sometimes on weekends walk through downtown America, and I must say, a lot of houses ther look pretty run down.


But what is most striking is the crappy looking power lines, often on poles made of wood and hanging so low and in a totally chaotic and unorderd fashion with these capacitors (small metal tubes).


This is totally outdated.

Or when I look at the tarmac of the streets and the worn down lane marking.


Not to speak of all these collapsing bridges and the brittle concrete there.



Sat, 03/12/2011 - 16:09 | 1044919 ZeroPower
ZeroPower's picture

This is a fair point. When i think of the ME, indeed i can't fathom much more than shacks and little to no infrastructure. Rich hotspots like Dubai aren't the norm, plus we know that it'll disappear within the century after the Arabs understand life wasn't meant to be there.

Still favor North America (well, US & Canada) by about 10x more than Europe. The ME isn't even on the scale in this comparison.

Sat, 03/12/2011 - 16:37 | 1044955 Franken_Stein
Franken_Stein's picture

For me it's the other way round.

I like to live in Europe.


You live in Canada it seems, well, then you are on the right side of the border, because the U.S. is slowly but steadily turning into a banana republic, where the rule of law doesn't exist anymore, wher you have a 2-tier judicial system, one for the oligarchy and the other for the filthy peasants and slaves, erm, I mean citizens.




Sat, 03/12/2011 - 17:10 | 1045002 ZeroPower
ZeroPower's picture

Am in EU since September and for the next little while, hence my opinion on what i prefer. Despite unfair treatment of plebs versus the wealthy (id argue this is everywhere - even moreso in underdeveloped nations) i'd suggest America has an advantage as long as the lower class still believe in the American Dream.

Not sure there ever was a European Dream, though im sure Trichet, Merkel et al. would like to introduce one.

There are some nice spots in EU which aren't fucked (West is pretty much a slave to Germany, UK is in a battle of its own), though my guess is central/Eastern Europe will be the place to be starting in the 2nd half of this decade. 

Sat, 03/12/2011 - 12:50 | 1044496 Rainman
Rainman's picture

Jeff Skilling must be grinding his teeth as he sits behind bars and Ken Lay twitches in his grave. Those Enron boyz were just a little ahead of their time, or they coulda' walked too. They would be the small fry crooks today.

How's that Sarbanes-Oxley thing working out, btw ??

Sat, 03/12/2011 - 13:00 | 1044515 EscapeKey
EscapeKey's picture

You reckon Skilling spends his time in a regular cell, or one with "upgrades"?

Sat, 03/12/2011 - 12:50 | 1044498 dryam
dryam's picture

OT....Here's some interesting thoughts by Jim Rickards on QE++......

Sat, 03/12/2011 - 12:56 | 1044508 ivana
ivana's picture

Heard it. Sounds like annual deficit hole of aprox 700bil. And huge deflation wave.
Welcome to act 3 of final scenario unfolding.

Sat, 03/12/2011 - 13:33 | 1044581 GoldmanSux
GoldmanSux's picture

Wow, that was a great piece and answers my big question of the year. Thanks for the link.

Sat, 03/12/2011 - 14:05 | 1044664 SRV - ES339
SRV - ES339's picture

KWN Saturday interviews should never be missed.

Sat, 03/12/2011 - 14:23 | 1044675 Bob
Bob's picture

Very interesting!  Thanks.

Sat, 03/12/2011 - 18:20 | 1045099 IQ 145
IQ 145's picture

 Yes; thank you. that makes sense.

Mon, 03/14/2011 - 05:05 | 1049435 Thinkor
Thinkor's picture

Rickards is wrong.  You can apply the principal payments to do the rollover or to reduce the deficit but not both.  In neither case will you get a QE effect, because there is no net purchase of securities by the Fed.  You can't get a change in the monetary base without expanding the Fed's balance sheet.


Sat, 03/12/2011 - 13:08 | 1044529 mark mchugh
mark mchugh's picture

I strongly suspect that good old General Electric continues to use the same kind alchemy in order to survive.

Considering CEO Jeff Immelt serves both on the Federal Reserves BOD (to, get this, "represent the public"), and team Obama's "job creatin'" advisory panel, it would be bad form to declare that kind of "imagination at work" accounting illegal.

Sat, 03/12/2011 - 15:50 | 1044881 mark mchugh
mark mchugh's picture

"Junk" says some anonymous coward?  Check it out:

Oct 2008: GE had $548.7 B in debt; $3.8B in cash ($552.5B total)

since then, revenues have fallen by 17%, yet GE says that now it has:

$478.64B in debt and $78.96B in cash ($557.6B total)

So somehow super-genius Jeff Immelt retired $70B in debt and raised $75B in cash!!!!

That's a $145B swing, equivalent to 97% of GE annual revenue!!!

If that doesn't stink of Dick Fuld to you.....


Sat, 03/12/2011 - 13:11 | 1044530 bbaez
bbaez's picture

With Cash-Poor Municipalities running speed traps and parking meter maids out of control...

Voters will remember if they were held to a higher standard than the FAT CAT's that cause the current DEPRESSION

Self Preservation needs to kick in if you are a politician, or long-time incumbents are going to find themselves OUT on the street in 2012

Just some insight

Sat, 03/12/2011 - 13:40 | 1044562 Franken_Stein
Franken_Stein's picture

Until now, after having been screwed time and again by the Wallstreet oligarchy who have stolen trillions of dollars from Americans, not even one American has had the guts to stand up and even throw a rotten egg at Blankfein's or Dimon's car.


Not even this small gesture.


Now compare this to all the anti-communist uprisings in Hungary 1956, Czech Republic 1968, Poland 1981, and GDR 1989.

With all the hundreds of Soviet T-54, T-72 tanks in the street.

All the while America was having the time of their life and enjoying a prosperity that others could only dream of.

Ok, there was the civil rights movement, but that was mainly a fight of black folks, Malcolm X, Jim Crow, Selma Alabama, MLK and such.


"White America" on the contrary has had a continuous streak of a good life throughout all these decades and events.

That's about to change.



Sat, 03/12/2011 - 13:31 | 1044571 Josh Randall
Josh Randall's picture

Speaking of these CEO's of TBTF, the irony is the Kremlin invited all of these @ssholes to be on their Financial Consulting commitee. I am hoping that this is really a rouse, and the Rooskies can fill their palacial conference room with cyanide once all those folks are present in the same location overseas. The SEC and CFTC are complete farces

Sat, 03/12/2011 - 13:55 | 1044632 Jason Bourne
Jason Bourne's picture

In case everybody thinks is just the stupid fucking lower and middle class sheep that don't get it....I meet once a week with a group of business guys - each if them run companies with revenues starting at 25m a year and they are all presidents. Even though none of them are elite enough to have benefited from the fucking of our country is 2008, NOT one of then believes that anyone did anything wrong prior to 2008 or during the financial crises. They agree that things were done that were not ideal but that it all had to be done to prevent a full collapse of the system. When I pointed out the other day that not one banker NOT ONE had been prosecuted for anything in the last three years, the reaction was that they didn't do "anything illegal". Highly educated successful people don't get it either - WE ARE SO FUCKED.

Sat, 03/12/2011 - 14:46 | 1044760 ZeroPower
ZeroPower's picture

Theyre not wrong, in the strict legal sense.

As stated by the SEC, there is nothing inherently illegal with REPO 105. Especially when you have such fine pieces of shit as E&Y cooking their books.

Add some more clauses as to whats legal/illegal or qualified/unqualified in accounting terms, and this would be a much simpler case. 

Sat, 03/12/2011 - 19:24 | 1045198 calltoaccount
calltoaccount's picture


so you did not have sex w that banker?

material misrepresentations = FRAUD.

FRAUD = illegal = crime.

Sat, 03/12/2011 - 13:59 | 1044643 jal
jal's picture

If you find the corruption to be unsupportable in the USA, then maybe you can find another country that lives by the rule of law without so much corruption.


Sat, 03/12/2011 - 14:44 | 1044648 TruthInSunshine
TruthInSunshine's picture

This article, which is actually solid from a legal perspective, is Exhibit A as to why Americans need to revolt.

Without a revolution, there is no hope for a brighter economic future, because there will be no purging of the toxins and filth from the system.

Without any purging of the toxins and filth from the system, the most destructive bacterium and viruses will continue to grow, and to infect and kill the remaining balance of whatever is healthy and that which can lead to new organic economic growth.

What that revolution will or must look like to purge the toxins is an unknown, but this corporate owned 'democratic' government will never be able to re-institute law and justice, nor neutralize the cancerous threats to Americans and their economy; the cancer has implanted itself into the DNA of the governing bodies.

History and a watershed moment is now in the making.

Sat, 03/12/2011 - 14:31 | 1044719 SashaBelov
SashaBelov's picture

I hope there will be enough individual investors or law firms (class actions) that will sue this motherfuckers to death! This banks just have to fail and their executives just have to go to jail for crimes they have committed. System has to clean shit out, whatever it takes.

Sat, 03/12/2011 - 14:34 | 1044729 WTF2
WTF2's picture

SEC does'nt want to spoil the American Dream.

Sat, 03/12/2011 - 18:22 | 1045108 IQ 145
IQ 145's picture

 Yes; they don't want to open that can of worms.

Sat, 03/12/2011 - 14:43 | 1044756 fallst
fallst's picture

So, we are past the point of no return.

Cant pull at one thread, will pull on that thread, no can do?

Systemic Institutionalized Fraud. FASB Magical Thinking. Accounting Collapse. Contract Law Collapse. States Rights Destroyed. Economy Skim Phase, Full Throttle.

Acting like it's The End, 2012, nothing to Build For. Stripping Everything. GreenLight Everyone!

Sat, 03/12/2011 - 15:29 | 1044761 TruthInSunshine
TruthInSunshine's picture

Nothing will change until many (it won't even take anything coming close to a majority) of average line workers, cops, tool & die shop owners, barbers, builders, CPAs, utility employees, etc. wakes up and say "fuck you, you are not going to steal another dime from me and my children" to TBTB, and actually are willing to go to draw over it.

When that happens, nothing will contain it.

It won't take 100% or even 50% of these people to get to that point; something on the order of 8% to 12% will more than do, to kick things off.

Once that 8% to 12% kick things off, it will snowball faster than government deficit spending.

Sat, 03/12/2011 - 15:07 | 1044787 f16hoser
f16hoser's picture

I'll bet if I don't file a tax return I'll have a dozen federal agents after my ass.....Fuld, you suck.

Sat, 03/12/2011 - 23:34 | 1045718 sun tzu
sun tzu's picture

No, they'll just garnish your paycheck or your bank account.

Sat, 03/12/2011 - 15:10 | 1044794 citta vritti
citta vritti's picture

I like TD's analysis -- diversifying regulatory risk by copy cat, "Wink, wink, nudge, nudge. Know what I mean, know what I mean" behavior. So, if they're all Spartacus, do what the Romans did - crucify them all, metaphorically speaking (or maybe not).

That said, this regulation stuff is tricky. None is best I understand the libertarian perspective to be, and perhaps that is reason enough to put this federal agency out of business let alone increase its budget (time was they were reputed the best and most dedicated; now it's porn surfing and look the other way, the guy you annoy could be your next employer).

Where to draw the line. The last 40 years (remember S&Ls?) but especially the last 10-15, have been huge failures across the financial regulatory spectrum, and if the standard for bringing a civil, let alone criminal action is likelihood approaching certainty of prevailing, then it's simply confirmation this group of regulators isn't worth the money being spent on them. Next. 

Sat, 03/12/2011 - 19:47 | 1045230 snowball777
snowball777's picture

Any "money being spent on them" by the taxpayers is merely double-dipping.

Sat, 03/12/2011 - 15:16 | 1044802 Cursive
Cursive's picture

I bet OperationLeakS could publish some pretty juicy interoffice e-mails from the SEC if those e-mails just happened to fall into the right person's lap.

Sat, 03/12/2011 - 15:25 | 1044825 wrkoss
wrkoss's picture

They do not have time for little stuff.  They are focused on Gupta, expert networks, train yard workers.  Silly people Lehman and Madoff are side shows.

Sat, 03/12/2011 - 19:18 | 1045187 calltoaccount
calltoaccount's picture


what few are are aware of-- and even fewer will acknowledge: systemic corruption from the most basic buy-sell transaction, on up. And it has tragically been that way for at least the past dozen years. 


SEC and DTCC Let Wall Street Insiders Reap Billions Selling Securities They Never Deliver

February 4, 2009

House Financial Services subcommittee hearing tidbit: “The SEC is … captive to the industry it regulates and is afraid to bring big cases against prominent individuals,” Markopolos said. The agency “roars like a lion and bites like a flea” and “is busy protecting the big financial predators from investors.”

While the SEC is incompetent, the securities industry’s self-policing organization, the Financial Industry Regulatory Authority, is “very corrupt,” Markopolos charged. That organization was headed until December by Mary Schapiro, President Barack Obama’s new SEC chief.”

full comment at:


Sat, 03/12/2011 - 15:32 | 1044839 JW n FL
JW n FL's picture

To ALL Republicans on this Thread Bitching about the Union(s)...


To all wanna be Hawks / wanna be Conservatives...


$440,781,045,961.00 <----- got NO! Fucking Air Time... No Picket Signs... NOTHING!!!!



Anger as JP Morgan bankers get $10bn pay and bonus pot



JP Morgans Bonus Monies Last Year.. when no real work was completed.. could have paid for Wisconsin in TOTAL which includes the Unions...




When you wanna be motherfuckers take the time to post 700 plus times on the 102 Billion that "We the People" are getting Fucked for next Month.. I will stop calling you Poser / Wanna Be's.. but until then, you are fucking banker puppets paying attention to what you are told to pay attention too. 



Sat, 03/12/2011 - 19:20 | 1045190 Franken_Stein
Franken_Stein's picture


It's exactly as you say.


On the one hand they squander hundreds of billions in bonuses on fat-bellied banker pigs who stole billions and caused the financial crisis, on the other they tell hard working middle class Americans that they now all have to tighten the belts.


This is pure moral hazard and stinks to high heaven.


Sun, 03/13/2011 - 17:12 | 1047165 Freewheelin Franklin
Freewheelin Franklin's picture

It is not an either/or proposition. It is neither/nor. It is not "us" against "them", it is us against everybody that sucks at the teet of the government. Just because "we" don't support your precious unions, doesn't mean we support JP Morgan.


Stop thinking like a Binome.

Do NOT follow this link or you will be banned from the site!