State Street Sued For "Unconscionable Fraud" Against Calpers And Calstrs

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Dixie Normous's picture

STT must be removed from the market place immediately!

They suffered a GAP DOWN.

Impossible!

VegasBD's picture

If they arent willing to hide their stuff off balance like everyone else, then they should be listed 'off index' so their stock slump doesnt affect any of the averages...

whats sad is by the time i typed that joke out, it almost sounds plausible. =\

MsCreant's picture

California dreamin'
On such a winter's day

Rama V's picture

Who gets sued for MBSs?

Anonymous's picture

Can I sue CalPERS for unconscionable stupidity?
Like paying big bonuses to managers who lose money and getting into real estate at the worst possible time and choosing to invest in "socially-responsible" funds and ...

Miles Kendig's picture

There are many interesting and potentially lucrative income streams for states to uncover if they choose to.  What do the banks have to worry about?  They will just get some free money from the fed and pay it off ala BAC and the SEC.  This is just a confirmation of the bankers are thieves mantra which all of society already believes and our weak politicians and most of the media & judiciary seek to perpetuate at out expense.  After all, failure is no longer a part of free enterprise and capitalism in America.  Especially for some few special well connected cases who reside outside of judicial or regulatory reach.

Thanks to folks like Cas Sunstein and his impact upon the discussion of a new interpretation of the doctrine of judicial exclusion within the Obama administration, it appears that this process has been extended to systemically important institutions to the national security interests of the United States as determined by the President or his assignee.

"Prosecuting government officials risks a “cycle” of criminalizing public service, [Sunstein] argued, and Democrats should avoid replicating retributive efforts like the impeachment of President Clinton — or even the “slight appearance” of it."

http://jonathanturley.org/2008/07/21/obama-adviser-cass-sunstein-rejects...

Cognitive Dissonance's picture

LOL Miles.

When you condense it all down, it's basically I shouldn't sue them because they would then sue me when the time was right and power has shifted.

What this really means is my hands are just as dirty as their hands are and if I start throwing rocks, I can expect a barrage of boulders through my window real quick.

Dude, we don't discuss our thieving in public. Didn't you get the memo? We take our grievances to the head of the bankster families and accept the decision. Keep this up and it's all out war and everyone hits the mattresses.

And that ain't good for bidness.

Anonymous's picture

Cass Sunstein is like that turd Burke in the Aliens movie. Please note what else Cass thinks is a good idea:
http://www.jewishindy.com/modules.php?name=News&file=article&sid=10724
President Obama's newly confirmed regulatory czar defended the possibility of removing organs from terminally ill patients without their permission.

Cass Sunstein also has strongly pushed for the removal of organs from deceased individuals who did not explicitly consent to becoming organ donors.

In his 2008 book, "Nudge: Improving Decisions about Health, Wealth and Happiness," Sunstein and co-author Richard Thaler discussed multiple legal scenarios regarding organ donation. One possibility presented in the book, termed by Sunstein as "routine removal," posits that "the state owns the rights to body parts of people who are dead or in certain hopeless conditions, and it can remove their organs without asking anyone's permission."

Anonymous's picture

A Harvard College classmate of Cass Sunstein, whom he knew personally very well at Harvard at their Currier House dormitory, where they often ate dinner together, is a political refugee from the US in Belgium, a victim of death threats by friends of George Bush and US federal judges named in court filings as guilty of fraud and extortion and other crimes.

There are legal cases in process in Belgium, regarding the US threats of murder against Cass Sunstein's classmate, and how the US judges are even ordering the victim's websites blocked from Google in order to help US agents murder Sunstein's classmate in Belgium.

Loyal to all corruption of the US government and Bush's friends, Cass Sunstein is refusing to answer questions from journalists about the case, and refusing to respond to any communications from his Harvard College classmate either.

Details here - with links to other articles, see especially, 'Two EU Writers Under Threat of Murder':

http://about-les-sachs.angelfire.com/

Anonymous's picture

A Harvard College classmate of Cass Sunstein, whom he knew personally very well at Harvard at their Currier House dormitory, where they often ate dinner together, is a political refugee from the US in Belgium, a victim of death threats by friends of George Bush and US federal judges named in court filings as guilty of fraud and extortion and other crimes.

There are legal cases in process in Belgium, regarding the US threats of murder against Cass Sunstein's classmate, and how the US judges are even ordering the victim's websites blocked from Google in order to help US agents murder Sunstein's classmate in Belgium.

Loyal to all corruption of the US government and Bush's friends, Cass Sunstein is refusing to answer questions from journalists about the case, and refusing to respond to any communications from his Harvard College classmate either.

Details here - with links to other articles, see especially, 'Two EU Writers Under Threat of Murder':

http://about-les-sachs.angelfire.com/

PolishHammer's picture

Fed Printing Press:  Increasing the Number of Slices

Pie size: Constant to Shrinking

No of Claims on Pie:  Increasing Every Day

 

VegasBD's picture

and the pension wars begin.

Cursive's picture

Correctamundo.  This is the opening salvo.  These stories will become as ubiquitous as state bankruptcy discussions.

Commander Cody's picture

More banker scum.  This pond is huge.

blueskyscottsdale's picture

the pension funds are scum themselves. They give their asset management business to their buddies who give the pension fund kick backs. Pension funds do not allocate the funds according to who are the best asset managers. When you go to these investment conferences for institutional investors, the pension fund trustees are either missing the presentations because they're a) playing golf b) at the bar or c) sleeping through the conference. What I have seen happening at pension funds makes them exactly the same kind of scum as State Street

blueskyscottsdale's picture

the pension funds are scum themselves. They give their asset management business to their buddies who give the pension fund kick backs. Pension funds do not allocate the funds according to who are the best asset managers. When you go to these investment conferences for institutional investors, the pension fund trustees are missing the presentations because they're a) playing golf b) at the bar or c) sleeping through the conference. What I have seen happening at pension funds makes them exactly the same kind of scum as State Street. The pension fund trustees couldn't give a damn about the state employees whose interests they are supposedly protecting. I think pension fund trustees are all scum. I have not met a single one worthy of any respect.

Steak's picture

The federal government needs State Street to help implement monetary policy.  This will be an important test case to see if too big to fail is also too big to prosecute.

I for one don't believe any meaningful penalty will ever be assessed against any TBTF, regardless of the size and scope of fraud. 

Miles Kendig's picture

Test Steak?

Color me cynical

Yankee's picture

California is such a cry baby!

Anonymous's picture

Does every corporate FX desk work the same way - quote above/below the current trading price - in order to "take" a few pips?

Anonymous's picture

I know CMBS hedging desks worked this way on "rate locks"...

ZeroPower's picture

Indeed, a few pips here a few pips there and soon youve got $52.86MM in extra profit!

mmlevine's picture

Doesn't every corporate FX desk work the same way - quote above/below the current market - to make a few pips?  Always been that way - an easy way for the trader to (eh em) make money.

Miles Kendig's picture

Since the concept of contract law and personal property rights derived from them have already been compromised the next steps will be even easier to accomplish.

agrotera's picture

HI MK! Do you practice law?  Wouldn't it be good if US citizens could use this qui tam to stop the TBTF fraudulent bailout scheme that is rolling!

Anonymous's picture

Meanwhile, Rasmussen reports Obama's approval index continues to go deeper into negative territory and Republicans seem to be making something of a come back, at least at the state level. AS noted in something I read this morning, Goldman Sachs is moving toward becoming the Democratic Caryle Group. Time for a crackdown?

lizzy36's picture

( DJ ) 10/20 12:57PM *WSJ: State Street Denies Any Allegations Of Wrongdoing

In other news President Clinton did "not have sexual relations with that woman"

Guess it all depends on how you define "wrongdoing" and "sexual relations"

Miles Kendig's picture

Lizzy, we are on the same page on this one...

Anonymous's picture

In other news, President Bush did not say that "he (Saddam Hussain) tried to kill my dad."

And Dick Cheny did not in any way infer that Iraq was about to nuke NYC.

And Halliburton did not make a shit load of money during Bush's II reign.

nope nothing to see here.

Oh and thanks for blowing the Clinton thing up so much so that every child in America could learn what a blow-job was. Great Values guys.

If you want to continue this I'll just post a Bush II fuck-up of the day ; got hundreds - of real ones.

Or maybe I could just post the name of dead American/KIA in Iraq (for every lame Bill Clinton bashing post) would that be better?

What do you think lizzy36? Maybe you should get to bashing Obama more. I mean, for real, he's got some real dozee of fuck-ups in just 8 short months.

hmmmm, enquiring minds want to know.

trillion_dollar_deficit's picture

The unfortunate thing about this is that one of those two blood sucking interests is going to win something.

Careless Whisper's picture

Not enough there for criminal RICO? wire fraud? stealing?

 

 

Cognitive Dissonance's picture

Of course, the law suit wasn't filed because of the illegal actions against the people of California per se or even because it was the right thing to do.

It was because one group of criminals got screwed by another group of criminals.

CalPERS and CalSTRS are not shining examples of doing-the-right-thing pension funds by a long shot.

"Unconscionable fraud" means they were screwed while unconscious or sleeping. Take your pick.

Anonymous's picture
Anonymous Oct 20, 1:45 PM

CNBS just got owned rofl

They panicked and cut the guy off, wow what poor reporting.

Screwball's picture

The cheerleader channel CNBC just interviewd Brown (I think it was, couldn't see the TV very well) the AG.  Tits Cabrera and Beaker were in prime form.  Funny video once they post it.

Ned Zeppelin's picture

Wow - I saw that exchange between Jerry, Michele and Dennis the Menace.  Must see TV for the hilarious hi-jinx. (watch for Jerry's comment on "Eastern establishment" bankers). Have a little populist fun.  

Green Sharts's picture

Beaker's first instinct is always to defend Wall Street and "free market capitalism", which in his warped view apparently doesn't include things like respect for fiduciary duty and abiding by contracts.  Tits, a hard core conservative, was so eager to jump on Jerry Brown that she pissed all over her own show and network by snickering at him for coming on the show. Brown did a nice job of throwing that one back in her face.  Apparently Griffiths ducked under the desk in embarrassment once the little attack dogs started yapping.

bonddude's picture

That was fucking funny. Ole MCC just raises her voice and screams a question that her open to an ass whoopin. Just throw those expensive breasts out there and start screaming. That doesn't work with Jerry, who is pretty darn quick.

mmlevine's picture

Beaker and MCC were made out to look like complete fools.  Good for Jerry for standing up for what is right.

One can only wonder what other cases are under "seal".  This could get very, very interesting.

MsCreant's picture

Thanks for posting that. There are adults and children. It is so refreshing to see someone looking rock solid and not like a maniac or a weasel. Might have made my day.

Green Sharts's picture

I'd think CalPERS and CalSTRS would have preferred to settle out of court with State Street instead of embarrassing themselves publicly with an admission that they were stupid and incompetent enough that a bank could routinely screw them on foreign exchange transactions for many years without being detected.  CalPERS and CalSTRS are fiduciaries for their plan beneficiaries and one of their fiduciary responsibilities is to ensure that they receive the best possible trade executions for their plan beneficiaries.

My guess is this lawsuit opens the door for class action lawsuits against CalPERS and CalSTRS on behalf of plan beneficiaries for breach of fiduciary duty.

Based on the whistleblower reference, apparently it took a former State Street employee ratting them out for CalPERS and CalSTRS to figure out what was going on.  The whistleblower is in line for a nice payday.

Green Sharts's picture

Responding to my own post, after viewing Jerry Brown kick the crap out of Beaker and Tits Caruso-Cabrera, I understand why State Street couldn't settle out of court.  Brown said similar lawsuits against State Street from other state pension funds are coming.

Anonymous's picture
Anonymous Oct 20, 3:50 PM

A little aside on 'Jerry' Brown. He's running for Governor against Gavin Newsom.

He was Governor like his Dad before him if memory serves and was run out of office for reasons that escape me.

That guy has a lifetime of political experience. I would never want to be on the other side of an argument with him because he backs out of the ones when he can't get a guaranteed win.

Anonymous's picture
Anonymous Oct 20, 4:14 PM

Brown said it so very rightly. "are you guys pimping for the defendant in this case"?. For that is the state of the MSM propaganda machine. One has to say that a grilling journalism to get to the bottom of things is how that profession should be carried out. But in this case,CNBC should be grilling the pundits that it regularly host and not just Brown. How about interviewing Immelt about how his insiders were selling GE shares back when rumors spread about the company not being able to pay dividends (courtesy to whoever had a look at their books when they issued bonds supported by the TALF or any alphabet)while he was insisting that they will be able to meet their obligation?many people bought back then based on his assertion(one veteran with amputated legs)was one of those victims(according to a post on ge blog in google)