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Banker: A Lawyer's Greatest... Enemy?

Tyler Durden's picture




 

Back in October of 2010, when we first exposed Bank of America as massively underreserved for putback, Rep and Warrant and various other forms of litigation, we predicted that once the precedent is set for ever escalating litigation against transgressions banks committed in the Old Normal (the biggest of which was the worst M&A deal of all time: BofA buying Countrywide and with it hundreds of billions in contingent liabilities), very soon banks would be swamped with a tsunami of litigation. And after all, it's only "fair" - the banking industry would not exist if its wasn't for the Fed and government's bailout and backstop of tens of trillions in liabilities at the peak.  Now it's time for some "wealth redistribution" - only instead of said government-funded wealth tricking down to the common man, the only social group set to benefit are America's lawyers. Fast forward two years to October 2012, and what we predicted is precisely what has happened. As the chart below shows various "environment charges" aka charges related to mortgage put-backs, legal and foreclosure related issues, have soared to a record 16% of pre-provision earnings. As Goldman calculates, this is reducing EPS and returns by an average 17%! Where it this "profit" going? Mostly to various class cation suit organizing law firms and to pay for $800/hour legal retainers.

This is only the beginning: as more legal successes against banks pile up and as the banking industry's status as the "Old Normal's golden goose" unwinds, increasingly replaced by a stealth regulated utility, expect ever more litigation to be launched as litigation and corporate lawyers, once best of friends and always on the same side of the table as their banker friends, are now positioned as adversaries, perfectly happy to burn the same bridges that 5 years ago made the banker-lawyer cabal the strongest in the world.

And on to another artifact of the New Normal - one in which bankers and lawyers, once the best of friends, are becoming the fiercest of enemies.

 

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Sat, 10/06/2012 - 11:19 | 2862704 Bansters-in-my-...
Bansters-in-my- feces's picture

FUCK YOU....bernanke

Sat, 10/06/2012 - 11:29 | 2862727 iDealMeat
iDealMeat's picture

Know what you're up against..

 

YouTube: Don't Talk to Cops, Part 1http://www.youtube.com/watch?v=i8z7NC5sgik

YouTube: Don't Talk to Cops, Part 2 http://www.youtube.com/watch?v=08fZQWjDVKE&feature=r

Sat, 10/06/2012 - 12:01 | 2862793 WarriorClass
WarriorClass's picture

Abraham Lincoln's War Against the States ended with the enslavement of us all and left the Federal Government the final power in this country. If you doubt this you should read any of historian Thomas J. DiLorenzo's books on Lincoln, as well as "Lincoln Uber Alles" by Emison. "The Party of Lincoln" is no better than the Marxist Democrats, and until people see through their deception, it's not going to get any better. Another good book is "The Perils of Diversity: Immigration and Human Nature" by Byron M. Roth, and "Alien Nation: Common Sense About America's Immigration Disaster" by Peter Brimelow.

Sat, 10/06/2012 - 12:50 | 2862872 Muddy1
Muddy1's picture

The two lowest forms of life on the planet: bankers and lawyers

Sat, 10/06/2012 - 15:41 | 2863247 AldousHuxley
AldousHuxley's picture

one lower......sellout politicians

Sun, 10/07/2012 - 02:04 | 2864081 Just Ice
Just Ice's picture

and lobbyists...that bribe, blackmail or highjack low-life politicians into representing their special interests rather than those of the people the pol was elected to represent

Sun, 10/07/2012 - 06:59 | 2864193 Kobe Beef
Kobe Beef's picture

Politicans and Lobbyists are just the invasive, metastatic form of Lawyers.

Sat, 10/06/2012 - 11:23 | 2862716 chunga
chunga's picture

Banks...

An ambulance you don't even have to chase.

Sue them. Sue them all.

Sat, 10/06/2012 - 11:24 | 2862720 squexx
squexx's picture

Sue them, hell! Nooses and bullets!

Sat, 10/06/2012 - 11:40 | 2862749 chunga
chunga's picture

Yes, grab them by their money and cut off their horns.

Sat, 10/06/2012 - 13:41 | 2862955 spentCartridge
spentCartridge's picture

Set the sons of bitches on fire!

Sat, 10/06/2012 - 11:26 | 2862722 LongBallsShortBrains
LongBallsShortBrains's picture

See?

Bailing out the banks actually employees people, er I mean lawyers. Giving money to these chumps was pretty stupid unless you consider the kickbacks received to make it all happen. Then, it's a great idea!!!!!

They need a new mortgage write down program. Bring in a dead lawyer, we will waive a years interest. That will stop those pesky lawsuits.

Don't trash me. It is the cannabis typing this crap this morning.

Sat, 10/06/2012 - 11:29 | 2862730 11b40
11b40's picture

Let them eat each other. Vultures all.

Sat, 10/06/2012 - 11:59 | 2862792 GMadScientist
GMadScientist's picture

Do not insult the humble vulture.

Sat, 10/06/2012 - 11:40 | 2862753 michael_engineer
michael_engineer's picture

Cross a banker and a lawyer and what do you get?

A politician !!!

Sat, 10/06/2012 - 11:56 | 2862785 MsCreant
MsCreant's picture

Locally, I am seeing ads all the time for things like "Home owners defense group." The pitch is "Are they taking your home from you when they have engaged in illegal activity? Is your paper work in disorder, or worse, fraudulent? Are you a victim of 'robo-signers'? Has your title been conveyed illegally?" The list in the ad goes on and on, and then they tell you to call them before they get your house because once they get your house, "We can't help you any more."

Sat, 10/06/2012 - 12:05 | 2862802 chunga
chunga's picture

There is no res judicata on bad title or fraud.

Mon, 10/08/2012 - 17:08 | 2869136 MeelionDollerBogus
MeelionDollerBogus's picture

And yet the only way to get your house back after all your goods, money, is emptied of it and a bank takes it on a forged document is by force - the police need to refuse to shoot you while Occupiers take your home back in "take back homes" actions (protests) and move you back in. You can't fight in court once you're broke and you're broke once all your belongings are gone and your bank account is locked up in regards TO this forged mortgage.

Sat, 10/06/2012 - 12:52 | 2862877 ebworthen
ebworthen's picture

Great White Sharks, Carcharodon carcharias - predator of the seas.

Those little sealls are so tasty...

Sat, 10/06/2012 - 13:39 | 2862950 spentCartridge
spentCartridge's picture

Lawyer ~ olde English word for liar.

 

Spoken & pronounced as liar (back in the day).

 

Words. It's how they control you. How they manifest their poisonous ideas into your head.

 

 

Words.

Sat, 10/06/2012 - 14:45 | 2863108 icanhasbailout
icanhasbailout's picture

let me know when they start to draw blood

Sat, 10/06/2012 - 15:17 | 2863180 q99x2
q99x2's picture

The vermin are fighting over their own vomit. Arrest Holder.

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