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David Takes On The Porn-Addicted Goliath: Egan-Jones Countersues The SEC

Tyler Durden's picture




 

A month and a half after the SEC took a much-deserved break from watching taxpayer-funded pornography, and stumbled on the scene with its latest pathetic attempt to scapegoat someone, anyone, for its years of gross incompetence, corruption, and inability to prosecute any of the true perpetrators for an event that wiped out tens of trillions in US wealth, by suing Egan-Jones for "improperly" filing their NRSRO application in what was a glaring attempt to shut them up, the only rating agency with any credibility has done what nobody else in the history of modern crony capitalist-cum-socialist America has dared to do: fight back. We have only three words for Sean Egan:  For. The. Win.

From the just filed lawsuit (District of Columbia, 12-cv-00920)

As reported widely, the damage recently done by the large issuer-paid firms, which have a virtual monopoly on the ratings industry, is almost incalculable. Congress has found that the large issuer-paid firms were instrumental in creating inflated and erroneous AAA ratings, for billions in profits to those firms, which fueled the ABS and collateralized debt obligation (“CDO”) market; which, when the market collapsed in 2008, it led to an estimated trillion dollars in losses and the largest financial crises since the Great Depression. The vast majority of the 2004-2007 ABS and CDO debt rated AAA by the large issuer-paid firms is now graded as junk.

As the Congressional Findings published in the Dodd-Frank Act make clear:

In the recent financial crisis, the ratings on structured financial products have proven to be inaccurate. This inaccuracy contributed significantly to the management of risks by financial institutions and investors, which in turn adversely impacted the health of the economy in the United States  and around the world. Such inaccuracy necessitates increased accountability on the part of credit ratings agencies.

As this Complaint makes unmistakably plain, a credit ratings agency (“CRA”) that the SEC chose to hold “accountable” since 2008 is Egan-Jones -- the one small independent ratings firm that actually warned the capital markets of dangerously over-rated ABS and CDO debt and has long been a valuable independent bellwether of true credit quality. The Administrative Proceeding is the latest in a series of SEC actions which are designed to diminish and marginalize Egan-Jones while supporting and maintaining the status quo of an issuer-paid ratings agency monopoly in direct, indeed, striking contravention of specific Congressional direction in both the Reform Act and the Dodd-Frank Act. While the SEC targets Egan-Jones for alleged infractions which have not affected a single rating or investor, the SEC has not suggested that it will ever take any real, proportional action against the large issuer-paid firms for issuing profitable inflated ABS and CDO ratings which brought about America’s economic crises.

...

Evidence of the SEC’s bias against Egan-Jones and towards the large issuer paid firms, includes, among other matters detailed in this Complaint, the SEC’s decision to ignore the important division between its regulatory inspection and examination functions on the one hand, and non-public investigative and enforcement functions on the other, by designating members of the Office of Compliance, Inspections and Examinations (“OCIE”) as officers of the SEC’s Division of Enforcement (“Enforcement”) while the OICE staff still were performing actively OCIE regulatory and examination functions.

Egan-Jones and Mr. Egan therefore seek declaratory and injunctive relief to remove the Administrative Proceeding to this federal court. Such removal is necessary to prevent the violation of Egan-Jones’ Due Process, Equal Protection and First Amendment rights. This Enforcement Action, if allowed to proceed in an administrative forum, would deprive both Egan-Jones and Mr. Egan of their right to a jury trial and other critical procedural safeguards available in our judicial system, including, but not limited to, the ability to mount defenses and obtain evidence in support thereof relating to the unfair and disparate treatment of Egan-Jones by the SEC, with no rational basis, and evidence relating to the motive for the SEC to do so; the SEC’s improper motive in bringing this action including the denial or marginalization of Egan-Jones’ content and voice in the marketplace; and the maintenance and continuation of the status quo conflicted issuer-paid ratings model in contravention of Congressional direction. For the reasons set forth in this Complaint, Egan-Jones and Mr. Egan come before this Court and respectfully ask for declaratory and expedited judicial relief in the form of removal of the Enforcement Action to this Federal Court.

* * *

If we could only interject our fondest wish: make this a fight to the death.

 

Full filing:

 

And our personal message to the SEC:

 

 

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Wed, 06/06/2012 - 21:27 | 2501801 tony bonn
tony bonn's picture

defiance, resistance, protest...occupy needs to return to the streets

Wed, 06/06/2012 - 21:34 | 2501822 strannick
strannick's picture

Dont forget the CFTC when apportioning scorn to useless/captured regulatory agencies.

Wed, 06/06/2012 - 21:40 | 2501847 UP Forester
UP Forester's picture

Fuck me?

NO!  FUCK YOU!!!

Wed, 06/06/2012 - 21:43 | 2501860 LetThemEatRand
LetThemEatRand's picture

These fuckers are systematically trying to take away our right to a jury trial through these "administrative" proceedings, run by oligarchs for the oligarchs.   Go Egan Jones!!!!

Wed, 06/06/2012 - 22:02 | 2501886 Pure Evil
Pure Evil's picture

What makes those assholes think they have the right to due process, equal protection, and any first admendment rights. I don't see anyone of the other mundanes living in the USSA enjoying those Constitutional protections.

Where have they been since 2008, and the brother got elected to the "WHITE" house.

Didn't they learn any lessons from the GM debacle.

The only reason I can see as to why they're being swatted around like a fly is that they refused to accept a fartbook friend request to swap midget tranny porn and child pornography with the SEC.

Wed, 06/06/2012 - 22:06 | 2501911 Pladizow
Pladizow's picture

"When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a Moral code that glorifies it." - Frederic Bastiat.
 

Wed, 06/06/2012 - 22:59 | 2502045 jeff montanye
jeff montanye's picture

since 2008 pure evil?  don't you mean since 2001?  the bushobama administration has been seamless in most everything except sex.  their public statements about gays and abortion differ (i suspect their private actions are not nearly so dissimilar).

Wed, 06/06/2012 - 23:02 | 2502060 Pure Evil
Pure Evil's picture

Well, actually we could go all the way back to the founding fathers and the politicians that followed them.

My actual point was that rule of law in contracts took a beating with the GM bondholders getting screwed just so Obama could save union jobs.

Wed, 06/06/2012 - 22:12 | 2501912 LetThemEatRand
LetThemEatRand's picture

They are a small firm.  A small business.  They are not the Man you are fighting.  They are in fact fighting the Man.   You reveal your true intentions and your lack of regard for that to which you claim to be an advocate with your racial overtones.  

 

Wed, 06/06/2012 - 22:15 | 2501941 Pure Evil
Pure Evil's picture

Racial overtones?

What you talkin' bout Willis?

 

Would it be these colored overtones?

Wed, 06/06/2012 - 22:18 | 2501950 LetThemEatRand
LetThemEatRand's picture

What, you think white guys aren't fucking you even harder than the guy in the White House? 

Please ni....

Wed, 06/06/2012 - 22:25 | 2501968 Pure Evil
Pure Evil's picture

White guys don't know how to fuck anyone over, only pure Alabama black snake is gonna find its way to tickle your uvula.

Why do you think all the white women want to be with the big nig.

Look at Obamies momma, pure white trailer trash that loved African cock.

Wed, 06/06/2012 - 22:29 | 2501977 Harlequin001
Harlequin001's picture

I always thought they were the white gals that couldn't get a real man...

Wed, 06/06/2012 - 22:32 | 2501979 LetThemEatRand
LetThemEatRand's picture

You see it the other way, but the greatest thing about America is exactly what you see as the worst thing (trailer trash having a bi-racial relationship leading to a guy getting elected President).  In any other country, you need to be born into privilege.  This is why outfits like the Mises Institute are so incredibly dangerous.  They believe the opposite.   Too bad Kissinger and whomever else got to O.

Wed, 06/06/2012 - 22:42 | 2502004 Pure Evil
Pure Evil's picture

I think Global Hunter below said it best:

 

Just a "a fucking reptillian space monkey".

 

Of course I would've said space gorilla, but why bicker.

Wed, 06/06/2012 - 22:47 | 2502015 LetThemEatRand
LetThemEatRand's picture

I think Hunter S. Thompson said it best:  America... just a nation of two hundred million used car salesmen with all the money we need to buy guns and no qualms about killing anybody else in the world who tries to make us uncomfortable.

 

Wed, 06/06/2012 - 23:28 | 2502107 Cortez the Killer
Cortez the Killer's picture

EPIC, EPIC FAIL

trailer trash greater than the Mises Institute???????

Permanent troll status for you

 

Thu, 06/07/2012 - 09:41 | 2503270 fuu
fuu's picture

WTF?!?

Wed, 06/06/2012 - 22:49 | 2502018 thatthingcanfly
thatthingcanfly's picture

Been hearing that bullshit all my life. Finally looked it up a few years ago and learned what I suspected all along: there is no statistically significant difference between penis sizes among the races. The myth of African sexual superiority is an insulting farce designed to demoralize white males, and disenfranchise them from their own tribe's women.

Wed, 06/06/2012 - 23:47 | 2502135 JOYFUL
JOYFUL's picture

+1000 for observational excellence.

Most every little ting that passes for 'media communications' is designed to demoralize white males, as part of a programme of twisted revenge bein brewed n stewed by sulky pseudo-hebraic khazarians since getting kicked outta their spiders' nests in the Volga swamps some 1000 years ago...

their terror of big, bad Varangians in phallic-like sailin ships that they hopped over portages to reach all the way down to the Tigris is now so engrained in the sionist dna that from the moment they are hatched these dual-citiizened varmints scheme ways to beat whitey on the only battlefied they haf a half a chance of winning on...

the war of communications has been won by the wackos with the genocidal gene germ....whitey is hunkered down under a rain of arrows, posioned by plastics, pharmaceuticals. widescreen t(error)v(ision)s, gmo junk food and the chemtrail death mists all owned and operated by the klepocratic korporo khazarian brood whose most fervent dream is to make it with whitey's women /// after stealin all his loot...

left to ourselves, blacks, browns, reds n whites would all git along famously, cause everybody knows this earth was designed as an abundant garden of delights for the human bean to watch over and protect....never ever been a shortage of joy and pleasure till the sour sitizens of sionist mi-s-anthropy took sentre stage in our schools, movie houses and living rooms with a playbook designed to demoralize and demonize the Europoid race...

we all in the same boat, livin in a world with just one hope:

terror statelet of israhell and it's moneychanging backers will tip the lever for the trap door underthemselves and fall way down to the fiery depths from whence they were bred to fall down upon us like an evil rain of malice and envy.

*what, already a down arrow to yur fine comment? guess who's watchin!

Thu, 06/07/2012 - 00:57 | 2502320 Bolweevil
Bolweevil's picture

I might not hit bottom, but I'll scrape the heck outta the sides. Pure poetry Joyful +1

Thu, 06/07/2012 - 03:12 | 2502527 Andy Lewis
Andy Lewis's picture

Fuck off and die, Nazi filth.

Thu, 06/07/2012 - 04:33 | 2502586 JOYFUL
JOYFUL's picture

nazi?

R U referring to that C20th movement of sionist led and inspired dupes who killed off most of the actual 'jews' of Europe as part of their mad plan to create a frankist-sabbatean socialist paradise in the middle of Palestine? ...and then created silly straw puppet 'neo-nazi' fringe groups in the States as part of  their campaign to marginalize the majority population there?>Umm, sorry, wrong number -I don't dabble in racial hegemonist politics, I'm more into unity of the human race...

Andy, is English yur second language, or are yu an actual ashkenazi tasked with reading from a very tired script?!??

Either way, I think yu have stumbled into the wrong forum Andy....we out dissumlationists like yurself here, and then cremate their remains...

try harder?

Thu, 06/07/2012 - 00:08 | 2502193 CrazyCooter
CrazyCooter's picture

You mean ...

http://www.targetmap.com/viewer.aspx?reportId=3073

... which is one of many info graphics (or data tables) on the subject?

Personally, I don't care. My old man's old man's old man immigrated from Poland. Six foot six he was. And once killed a neighbor's borrowed mule by striking it with his fist between its eyes for not working.

Normans.

I am a bit shy of that, but my brother and his son are not. Keep yer charts. I think ladies are smart to find polite Texans who can palm basketballs and have problems finding Justin work boots in their size.

On that note, the hardest science on the subject suggests a ratio between specific fingers as the best predictor.

http://www.livescience.com/14891-finger-length-ratio-penis-size.html

Data geeks; there is one in every crowd.

Regards,

Cooter

Thu, 06/07/2012 - 07:13 | 2502717 neidermeyer
neidermeyer's picture

@thatthingcanfly ,

Your research is wrong , differences exist ... all I can say is don't ever expect a normal sized US male (white or black) to use any Japanese produced prophylactic without feeling WAY MORE than a wee bit constrained...

Thu, 06/07/2012 - 10:10 | 2503439 WillyGroper
WillyGroper's picture

True. Do you mean proud?

Thu, 06/07/2012 - 03:08 | 2502522 Andy Lewis
Andy Lewis's picture

Fuck off, KKK filth.

Thu, 06/07/2012 - 04:46 | 2502595 JOYFUL
JOYFUL's picture

Kosher Kleptocratic Klan? 

Tha's weird, I thought Cooter was a regular guy from somewhere up north> yu sure Andy?

Wed, 06/06/2012 - 22:22 | 2501959 greyghost
greyghost's picture

future reference: next time, the we are out of oil crowd starts in again.....ask them if they know how to spell "the bazhenov"?

Wed, 06/06/2012 - 23:04 | 2502066 jeff montanye
jeff montanye's picture

out of cheap oil.

Wed, 06/06/2012 - 22:09 | 2501924 Harlequin001
Harlequin001's picture

'I don't see anyone of the other mundanes living in the USSA enjoying those Constitutional protections.' as you can see, a framework already exists for anyone to take up the mantle if you dare.

Fact is there are too many whimps who would rather pay a speeding fine than go to court and defend themselves properly. That does not mean that you have no rights, only the lack of fortitude to demand and defend them.

Wed, 06/06/2012 - 22:15 | 2501946 Pure Evil
Pure Evil's picture

I've gone to court to fight it. Whenever you go to court they always add court costs to the ticket.

Wed, 06/06/2012 - 22:19 | 2501951 Harlequin001
Harlequin001's picture

Did you win?

and by the way, when I say 'you', it's not personal...

Wed, 06/06/2012 - 22:19 | 2501954 LetThemEatRand
LetThemEatRand's picture

If they added court costs, Pure Evil lost.  

Wed, 06/06/2012 - 22:20 | 2501957 Pure Evil
Pure Evil's picture

Your a turd and don't know it, go float in somebody else's septic system.

Wed, 06/06/2012 - 22:36 | 2501988 LetThemEatRand
LetThemEatRand's picture

Sorry.  Sore spot?  Asshole. 

It's "you're a turd."  You're a turd.

Wed, 06/06/2012 - 22:47 | 2502014 Pure Evil
Pure Evil's picture

I think you've been looking in the mirror too long.

Been noticing a big brown pile between the shoulder blades and a stench to knock you off your feet?

Maybe if you went and wiped between the ears the world would start smellin' a little better.

Better yet, just wrap your lips around some Alabama black snake.

Wed, 06/06/2012 - 22:51 | 2502030 LetThemEatRand
LetThemEatRand's picture

Are you projecting?  By which I mean -- are you actually really gay and you just can't admit it to yourself?  It's okay.  A lot of prominent people are that way.  One day, you will find peace.  Peace, asswipe.

Wed, 06/06/2012 - 22:54 | 2502034 Pure Evil
Pure Evil's picture

Yep, I'm projecting my big Alabama black snake right up your lilly livered white ass which will soon to be tickling your uvula and giving your tongue a taste of the same crap you blog on this website.

 

Wed, 06/06/2012 - 23:01 | 2502055 LetThemEatRand
LetThemEatRand's picture

No, Deliverance.  I will not squeal like a pig for you.  At least we all know what you are about now.  

Wed, 06/06/2012 - 23:04 | 2502065 Pure Evil
Pure Evil's picture

Oh, you'll squeal and you'll like it.

 

Sooooeeee! Here little piggy.

Wed, 06/06/2012 - 23:07 | 2502075 jeff montanye
jeff montanye's picture

i think you two need to take this outside or get a room.

Thu, 06/07/2012 - 00:11 | 2502204 jez
jez's picture

Boring, boring, boring. Both of you.

One of them is going to mention Hitler, any second now.

Thu, 06/07/2012 - 04:58 | 2502606 Acet
Acet's picture

This thread is now officially Goodwined.

Good thing too, it was starting to sound like a fight between 5-year-olds.

Thu, 06/07/2012 - 09:15 | 2503152 mendigo
mendigo's picture

Not calling anyone in particular a troll because I would not know, but it seems to me that there are "members" why either intentially or because it is thier nature take the discussion off course. This is an effective way to disrupt the site which no doubt some would like to do. My suggestion to prevent this would be to avoid taking it personal, be brief and dont reply if the discussion is going off-track

Wed, 06/06/2012 - 23:29 | 2502108 Burnbright
Burnbright's picture

Troll Fights!

Wed, 06/06/2012 - 22:26 | 2501974 Harlequin001
Harlequin001's picture

and by the way, you hit the nail on the head with that comment, 'they always add court costs to the ticket'. Yes they do, and most people would rather pay the fine and grumble than run the risk of increased costs and obtain justice, but that is no different than the SEC letting these people off with a plea bargain and a small fine against the company when you think about it. The SEC should not have the option to settle out of court because that is too easily abused in favour of the well connected.

You still have rights, but they aren't always cheap...

If you're not guilty you're not guilty, and you should fight, which makes this an excellent move in my view...

 

Wed, 06/06/2012 - 22:39 | 2501999 Pure Evil
Pure Evil's picture

But, what if you are guilty. Do you still go to court and lie your way through? I must admit, every ticket I got was well deserved.

Wed, 06/06/2012 - 22:46 | 2502013 Harlequin001
Harlequin001's picture

Then you can't really complain for getting a bill for wasting everyone's time trying to deny what you did...

but good try anyway...

Wed, 06/06/2012 - 22:50 | 2502026 Pure Evil
Pure Evil's picture

I wasn't trying to. I had a friend that would go to court and try to lie his way out of it. It generally worked for him. He spent more time coming up with outrageous excuses, and some of the times I've been in court I've seen some people come in and just outright claim it wasn't there fault or some such shit.

But, some of the tickets I got required a court apperance.

Wed, 06/06/2012 - 22:56 | 2502039 Harlequin001
Harlequin001's picture

The system isn't perfect but it's there... if you fancy your chances?

You might get away with it, you never know...

Thu, 06/07/2012 - 00:12 | 2502203 slewie the pi-rat
slewie the pi-rat's picture

it's ok to goto traffic court;  especially if you need to appear b/c of bail for accidently plowing into an ATM on the way home from the demolition derby while shitfaced from drinking w/ tyler, who loves to drive backwards, of course...

but even on a minor thing, just go to court during the time allowed before the fuker goes 2warrant on yo funky ass and tell the judge you are thinking of setting it for trial;  tell her the facts as you would whether you were lying or not, ok?  ask her to advise you?  can she help you or not, here?

unless she caves, set it for trial

if the cop shows, waits till she testifies and then just throw yourself, dramatically, on the mercy of the court and make it a real belushi

if you can crack the fuking judge up, it is good b/c the cops will no-show the next time after they realize you can fight back;  finally, you will respect the law but only on sundays, ok?

Wed, 06/06/2012 - 22:39 | 2502001 LetThemEatRand
LetThemEatRand's picture

They only add court costs to the ticket if you lose.

Thu, 06/07/2012 - 09:19 | 2503163 Benjamin Glutton
Benjamin Glutton's picture

I went to traffic court in San Diego 25 years ago not to fight a ticket but only to delay payment. Court was no less formal then, but I took a chance by wearing a promo t-shirt that said "I DID IT"(at U-Auto Do It parts store)which made the judge chuckle and say "I take it you are pleading guilty". I told him I simply could not afford the ticket and needed the delay fully expecting to pay the ticket plus court costs.

 

The judge changed my plea to no contest thanking me for brightening his day, withheld adjudication and ordered $60 court costs be paid.

 

A "win" with assessed court costs of $60 while throwing out the $??? ticket. Technically the no contest is a loss but I did beat the ticket and associated fine. He even asked if I could pay the court costs prior to judgement.

Wed, 06/06/2012 - 22:23 | 2501963 Dr. Engali
Dr. Engali's picture

Maybe they know the damage to their firm is going to be more than the firm can bare if they choose not to knuckle under. Maybe by fighting the corrupt basturds they can expose them for who they are. I for one would rather die fighting than let them strip me of my integrity.

Wed, 06/06/2012 - 22:41 | 2502003 LetThemEatRand
LetThemEatRand's picture

On this one thing we agree.  Egan is taking on the Man.  I suspect it is for their own survival. Go Egan!!

Wed, 06/06/2012 - 22:42 | 2502005 surf0766
surf0766's picture

EJ will not comply.

Thu, 06/07/2012 - 01:03 | 2502335 Bolweevil
Bolweevil's picture

Egan-Jones
We'll Cut You (TM)

Wed, 06/06/2012 - 23:59 | 2502173 JohnKozac
JohnKozac's picture

Maybe it's only a rumor, but the Grapevine says the SEC is willing to settle for all the old issues of Penthouse...and they will drop the case.

Wed, 06/06/2012 - 23:03 | 2502062 disabledvet
disabledvet's picture

"they have rights"? YOU and I have rights...rights mean nothing "to them." They have rights to VIOLATE is more like it. I know one right i'd like to have enforced: the ability to have a personal life. Not that the insanity of "Americanus Publicus" bothers me of course. "It can't ever win." And that suits me just fine.

Wed, 06/06/2012 - 23:08 | 2502078 EverythingEviL
EverythingEviL's picture

Fuck the SEC, Egan Jones FTW.  I'm sure Obama will find a way to shut them up though...that's his game.  Maybe Breitbart some more people...

Wed, 06/06/2012 - 21:41 | 2501852 Eireann go Brach
Eireann go Brach's picture

I am suing Nancy Pelosi because her parents listed her as human on her birth cert, everyone knows she a fucking space monkey!

Wed, 06/06/2012 - 22:10 | 2501926 Global Hunter
Global Hunter's picture

a fucking reptellian space monkey?

Wed, 06/06/2012 - 22:19 | 2501955 Offthebeach
Offthebeach's picture

The origional SEC complaint filing, the pages, they were stuck together.

Wed, 06/06/2012 - 22:38 | 2501995 DFCtomm
DFCtomm's picture

Rape too. Don't forget that, and student loan forgiveness.

Thu, 06/07/2012 - 00:42 | 2502288 Schmuck Raker
Schmuck Raker's picture

THAT would be a wet dream come true....

OWS rallying in support of Egan-, Jones.

[A smart fan would hit the shit.]

Wed, 06/06/2012 - 21:29 | 2501807 Hulk
Hulk's picture

EJ should also place a clandestine porn filter in at the SEC. Now THAT would cause them some pain...

Wed, 06/06/2012 - 21:31 | 2501812 veyron
veyron's picture

I'm torn as to whether S&P/moody/fitch is more or less unamerican than egan jones

Thu, 06/07/2012 - 01:07 | 2502343 Bolweevil
Bolweevil's picture

Is it possible to be more un-American than a French ratings agency?

Wed, 06/06/2012 - 21:31 | 2501814 CreativeDestructor
CreativeDestructor's picture

SEC just needs fresh porn to re-occupy them with something more productive... can anyone thrown them a porno and a spiderman towel please?

Wed, 06/06/2012 - 21:31 | 2501816 Marginal Call
Marginal Call's picture

I'm startin' to like this Egan Jones kid.  

Wed, 06/06/2012 - 21:36 | 2501834 HoofHearted
HoofHearted's picture

Sean Egan is the man! When RP is in the Oval Office, there will be a spot for Sean Egan.

Wed, 06/06/2012 - 21:32 | 2501817 papaswamp
papaswamp's picture

Time for Project Mayhem...

 

Wed, 06/06/2012 - 22:05 | 2501908 Matt
Matt's picture

Wait a second, Zerohedge.com is anti-pornography!? 

That seems pretty funny that people can get addicted to porn in such a way they have to watch more and more  and more until it consumes their life and they forget to eat and starve to death. or something. I'm not so sure that is as credible of a concern as controlled substances.

Wed, 06/06/2012 - 22:09 | 2501920 papaswamp
papaswamp's picture

I think they are anti-watching-porn-while-on-the-taxpayers-dime.

Wed, 06/06/2012 - 22:13 | 2501939 Dr. Engali
Dr. Engali's picture

Some people just don't get it.

Wed, 06/06/2012 - 23:14 | 2502083 Matt
Matt's picture

Did you watch the video? It is universally anti-pornography, and makes some pretty serious claims that basically imply pornography is as addictive as crack cocaine.

I'm sure we can all be in favor of public sector employees not fiddling around while on the taxpayer's dime, whether it be watching pronography, reading zerohedge, or any other thing that is not part of their job. Generally, there should be an expectation that if you are being paid to do a job, you should be doing that job.

Thu, 06/07/2012 - 00:04 | 2502186 tenpanhandle
tenpanhandle's picture

Comparing Zero Hedge and porn?  I would greatly prefer my  taxes went to proliferating the info and ideas  expoused on ZH as opposed to satisfying the sexual needs of an overpaid underworked uncivil servant via Asian ass porn.

Thu, 06/07/2012 - 02:40 | 2502488 object_orient
object_orient's picture

The video bothered me too. It's called Fight the New Drug and is pure propaganda. Strange that it only takes the addiction/personal health angle. The victimization of children and women video is probably in the works. Does the US have a pornography czar yet?

Thu, 06/07/2012 - 05:45 | 2502625 Lebensphilosoph
Lebensphilosoph's picture

Because all those beautiful young Eastern European girls just loooooove being choked, having their faces ejaculated onto and taking 'double anal' to the point that their insides prolapse from groups of psychopathic perverts, sweaty old men and disease-ridden American gangstas in front of a camera crew for the world to see, for a quick buck, right?

Thu, 06/07/2012 - 16:35 | 2505300 Matt
Matt's picture

Your proposed solution to end all injustices everywhere in the world?

Wed, 06/06/2012 - 21:31 | 2501819 Cistercian
Cistercian's picture

The Strict Enablers of Criminality need a serious defeat here.Go Egan Jones!!!!

Wed, 06/06/2012 - 21:33 | 2501824 nmewn
nmewn's picture

I humbly submit myself as a juror.

Wed, 06/06/2012 - 22:01 | 2501890 hedgeless_horseman
hedgeless_horseman's picture

 

 

I, too, would be happy to take time off from my day job as a food service worker responsible for the cream in the SEC cantina's soup.

Wed, 06/06/2012 - 23:21 | 2502095 Arnold Ziffel
Arnold Ziffel's picture

SEC has not been in court so long they are probably "Googling" for a map location of the building and driving directions.

Wed, 06/06/2012 - 21:34 | 2501831 SilverTree
SilverTree's picture

GET-EM!

Wed, 06/06/2012 - 21:34 | 2501832 FieldingMellish
FieldingMellish's picture

Noble stand. I have a feeling, however, that EJ will be a martyr for the cause. Good luck.

Wed, 06/06/2012 - 21:42 | 2501857 nmewn
nmewn's picture

Everyone has a choice in picking which hill they wish to die on. This one looks as good as any.

I wish you good fortune EJ, take a few with you, we'll get the rest ;-)

Wed, 06/06/2012 - 22:10 | 2501927 Dr. Engali
Dr. Engali's picture

Well spoken nmewn. I hope we all have the courage to do the same.

Wed, 06/06/2012 - 23:03 | 2502063 chunga
chunga's picture

We will have no choice. It's going to be us or them.

The bogus ratings on the MBS are a catastprophe. They got this crap rated AAA, then the derivatives kicked into gear.

Well guess what. Right out of the gate and given the very first opportunity to break the law they broke it. The Pooling and Servicing Agreements and the Master Servicer Agreements pursuant to NY Securities Law are operative in regard to REMIC and trump UCC as the banker men would have us believe. It's right here baby.

New York Code - Estates, Powers and Trusts Article 7 § 7-2.4 “Act of trustee in contravention of trust if the trust is expressed in the instrument creating the estate of the trustee, every sale, conveyance or other act of the trustee in contravention of the trust, except as authorized by this article and by any other provision of law, is void”.

If all the Notes and Mortgage conveyences were not delivered to the trust within the closing date (90 days) they are VOID. They are not qualified mortgages. Trying to "backfill" the pools of the trust exposes them to massive negative tax consequences pursuant to IRS 806 A-G.

The Illinois Supreme Court recently made some recommendations regarding these illegal practices used in foreclosures.

The Illinois Bankers’ Association response was rather chilling.

“We are particularly concerned with the implications of the Subcommittee’s recommendations in point 3 requiring that “a copy of each assignment of the mortgage be attached to the foreclosure complaint, and that a copy of the note, as it currently exists, including all endorsements and allonges” also be attached to the complaint. Our concern is further heightened by the statement in footnote 1 of the second proposed version of the “Affidavit of Amounts Due and Owing” that the affidavit “is not intended to relieve the foreclosing party from establishing . . . the party’s right to enforce the instrument of indebtedness if applicable.”

 

 

“Advocates of this result apparently are not concerned with its implications beyond the context of a given lawsuit or class of lawsuits, but the rest of us should be, for obvious reasons. Fannie Mae and Freddie Mac together hold over $5.3 trillion in home mortgages, nearly half the entire residential mortgage market in the United States. Viewed on a prospective basis, Fannie and Freddie presently are issuing more than 95% of all mortgage-backed securities in the country.6 The notion that defaults on these notes cannot effectively be pursued in Illinois courts is untenable. To suggest that tens of thousands of seriously delinquent borrowers should retain their properties in de facto fee simple – which is what would happen, since there would be no other parties to foreclose on these loans (a result that also would encourage many thousands more to strategically default on their loans) – would be to accept a future in which almost no residential mortgages could or would be underwritten in the state of Illinois.”

 

Illinois Bankers Association Re: Discussion Points Submitted for Public Comment and Hearing on April 27, 2012

They created then stole trillions of dollars and skipped out on taxes. Fuck them.

Take all this "moral hazard" shit and stick it right up John Courson's ass.

I love you Egan Jones.

Thu, 06/07/2012 - 01:13 | 2502354 Bolweevil
Bolweevil's picture

I don't know WTF you're saying, but I got your back. Egan-Jones Defense Fund!

Thu, 06/07/2012 - 09:55 | 2503352 chunga
chunga's picture

What I am saying is this...

If every Jane and Joe Doe had an understanding of how New York Law affects the Securitized New York Common-Law REMIC Trusts in re: Note and Mortgages I think they would stop paying en mass.

All assignments of the Note and conveyances of the Mortgage were required by *law* to take place within 90-days of the start-up date of the Pool.

Subsequent frauds heaped upon that initial one are just further insult.

Alleged lenders know they can never demonstrate a valid enforceable right to foreclose. It cannot ever be "assigned" back in to that 90 day period because it an impossibility.

The lazy susan of fabricated, forged documents, robo-signing, etc. all stem from this fact. There is no allonge, or other inter alia regalia on earth that can travel back in time.

The bogus entities have no standing to foreclose, yet they came and continue to come to the courts with fabricated and forged documents using the courts as their defacto collection agencies.

Many of the MBS Trusts were covered by an insurance policy, commonly referred to as a Derivative or Collateral Contract. Funds collected from the loans allegedly within the MBS, are no longer being paid to the investors, but are an unearned windfall to the servicer.

Likewise, the MBS/Trusts themselves became parties to Derivative Contracts. Most times, the actual Derivative contract is for more, up to ten times (10x), the face value of the MBS. More often than not, multiple insurance policies were taken and traded on the MBS

Thu, 06/07/2012 - 00:46 | 2502298 Tapeworm
Tapeworm's picture

why not call attention to this travesty to your supposed representative? I realize that most of the so called tea partiers are now bought, but you can contact them and raise hell, and then get onto local talk radio if you can explain it for popular consumption. E-J will get wiped out with all of the BS that the gombit can throw at them.

 Do your duty to save a sliver of real free market analysis.

Thu, 06/07/2012 - 10:44 | 2503694 chunga
chunga's picture

I am in the process of doing that right now.

I am sending an open letter to the presiding justice and am requesting recusal of several Superior Court Justices.

The House and Senate leaders will be copied in and I will set up an online petition.

Hopefully Zero Hedge will have my back and sign the petition which will direct mail all the recipients.

Wed, 06/06/2012 - 21:36 | 2501835 tbd108
tbd108's picture

Wow! The Little Engine that Could! Or alternately, small company, big balls.

Wed, 06/06/2012 - 21:38 | 2501842 wardawg12
wardawg12's picture

OMFG! Go git'em Sean!

Wed, 06/06/2012 - 21:40 | 2501845 Caviar Emptor
Caviar Emptor's picture

As an attack dog for the cronies, I condemn both Egan-Jones AND the SEC. We're saddled with too much regulation which happened to be asleep at the switch when TSHFT. So let's repeal Dodd-Frank and revoke the charter of the SEC, CFTC and all oversight agencies and then we'll show you some real stock market shock n awe

Wed, 06/06/2012 - 22:04 | 2501904 Al Gorerhythm
Al Gorerhythm's picture

?

Wed, 06/06/2012 - 22:06 | 2501914 Matt
Matt's picture

You know, I was just thinking we are about 100,000 pages of laws, tax codes and regulations away from creating Utopia.

Thu, 06/07/2012 - 00:40 | 2502279 Elliott Eldrich
Elliott Eldrich's picture

Gosh, you mean adding one ten-thousandth of one percent more to the hundreds of trillions of pages of laws, rules and regulations that already exist will be enough to do the job? No problem! We'll achieve that by next week, easy. 

Wow. Utopia. Boy, that's going to be really nice... Or perhaps not...

Wed, 06/06/2012 - 23:05 | 2502068 disabledvet
disabledvet's picture

"From Dave Weller to Cave Dweller in six simple steps." We're all gonna be Taliban soon!

Wed, 06/06/2012 - 21:40 | 2501848 chinaboy
chinaboy's picture

Well Done! Egan Jones.

Wed, 06/06/2012 - 21:40 | 2501849 Miss Expectations
Miss Expectations's picture

... the large issuer-paid firms were instrumental in creating inflated and erroneous AAA ratings, for billions in profits to those firms, which fueled the ABS and collateralized debt obligation (“CDO”) market; which, when the market collapsed in 2008, it led to an estimated trillion dollars in losses and the largest financial crises since the Great Depression.

Direct TV ad script?

 

Thu, 06/07/2012 - 16:25 | 2505271 Papasmurf
Papasmurf's picture

Barney Frank had nothing to do with it.

Wed, 06/06/2012 - 21:41 | 2501853 lolmao500
lolmao500's picture

watching taxpayer-funded pornography

Ew... just imagine some Pelosi-Hillary-Bachmann action...

Wed, 06/06/2012 - 21:56 | 2501882 azzhatter
azzhatter's picture

For a little international flavor, they could invite Merkel or that Christine LaGarde dude

Wed, 06/06/2012 - 21:42 | 2501854 SpeakerFTD
SpeakerFTD's picture

Then it happened when the Philistine rose and came and drew near to meet David, that David ran quickly toward the battle line to meet the Philistine.

And David put his hand into his bag and took from it a stone and slung it, and struck the Philistine on his forehead. And the stone sank into his forehead, so that he fell on his face to the ground.

Thus David prevailed over the Philistine with a sling and a stone, and he struck the Philistine and killed him; but there was no sword in David's hand.

Then David ran and stood over the Philistine and took his sword and drew it out of its sheath and killed him, and cut off his head with it. When the Philistines saw that their champion was dead, they fled.

 

 

Thu, 06/07/2012 - 01:29 | 2502386 AGuy
AGuy's picture

Except that the story will be slightly different this time:

And David put his hand into his bag and took from it a stone and slung it, the Federale caught the stone in his hand, and tossed over his shoulder. The  Federale decided to make an example for all eyes to see and quickly struck down David with his sword and proceed to topple Davids closest followers. No more will the Federale need bother with likes of David. No one ever will challenge the Federale on his turf!

When it comes to big gov't lawsuits, the only option is to settle and settle quickly and quietly. Notice how quickly big banks and Wall street act to settle. Those that fail to choose the only option wish they had. American Freedom and Justice has died long ago. Best to remain off the radar.

 

 

 

Wed, 06/06/2012 - 21:47 | 2501868 mcguire
mcguire's picture

fight the new drug!!

Wed, 06/06/2012 - 21:48 | 2501869 azzhatter
azzhatter's picture

I am willing to contribute to an Egan Jones defense fund. Fuck these socialist pricks in DC, fuck them. 

Wed, 06/06/2012 - 21:50 | 2501873 surf0766
surf0766's picture

I believe some lean communist....

Wed, 06/06/2012 - 21:48 | 2501870 machineh
machineh's picture

As a reminder, the political hack who sat in the SEC chairman's office jerking off during the boom and bust years of CDOs was named Christopher Cox.

http://en.wikipedia.org/wiki/Christopher_Cox

Why is this criminal retard, who cost the world trillions, still walking the streets with his goofball grin, as he practices chewing gum at the same time?

Wed, 06/06/2012 - 21:53 | 2501875 Lux Fiat
Lux Fiat's picture

Harry Markopolos's "No One Would Listen" should be mandatory reading for any judge presiding over cases concerning Wall St.. It's one of the most damning indictments of the SEC I've run across.  Mgmt sets the tone at organizations.  Until mgmt is changed at captured regulatory agencies and their charges is changed, we will continue to have this ongoing perversion of mission. 

I read the SEC suit against EJ.  Perhaps EJ could have done some things better.  But when the wolf is killing the sheep, I love how the SEC decides to attack the shepherd, who is trying to fend the wolf off.  Interesting/maddening/sad how the SEC has forgotten that it's raison d'etre is to protect the sheep, not faciliate their slaughter.

Wed, 06/06/2012 - 22:54 | 2502036 slewie the pi-rat
slewie the pi-rat's picture

same as the intel prior to 9.11.01

and what happened during and after

no one who has 1 ounce of power will listen to anyone who is powerless

all it could ever lead to is:  t.r.o.u.b.l.e. for the shot-glass holder

even a cashier or bagger is a source for alerting the elites' authorities about anyone who is suspicious and then reporting to them about why you appeared to a bagger to be suspicious as you were buying celery, cheese, and orange juice and paying for it, too

just dial 1.800.ISN.ITCH 

Thu, 06/07/2012 - 01:46 | 2502414 Lux Fiat
Lux Fiat's picture

My hat is off to EJ, particularly after reading/skimming their countersuit.  He's not falling into the apathy trap, that "we are all screwed so let's throw up our hands, wail, and play dead instead of doing something productive to change/challenge the corruption" cop out.  The SEC brought tremendous resources to bear on EJR, trying to intimidate, bully, and financially break them.  Instead, EJR responds with one heck of a very cogent, coherent bitch slap right back.  Just hope that this lands in front of a judge who's not bought and paid for.  However, even if it does, given all of the references to violations of due process, first amendment rights, etc., I'm sure EJR will make sure this works it's way up the chain, if need be.  It's amazing just how arrogant and stupid some of the folks at the SEC were in this case.

Wed, 06/06/2012 - 21:52 | 2501878 Atlas Shrugging
Atlas Shrugging's picture

Please, Grand Architect of the Universe and by All That is Holy, grant Mr. Egan the Power, Wisdom and Courage to best that which has become Most Evil and Unholy - the US government! 

Wed, 06/06/2012 - 21:58 | 2501887 Stackers
Wed, 06/06/2012 - 22:02 | 2501897 Dr. Engali
Dr. Engali's picture

I'd love to see some of the SEC dirty laundry laid out for the whole world to see. Dirty corrupt basturds.

Wed, 06/06/2012 - 23:06 | 2502071 TonyCoitus
TonyCoitus's picture

Discovery can be a wonderful thing!

Wed, 06/06/2012 - 23:30 | 2502102 Arnold Ziffel
Arnold Ziffel's picture

from your mouth, Engali, to God's ears....let it be so.

Trial by jury of people (preferably ones who lost their shirts in the market or saw their house values plummet)

Wed, 06/06/2012 - 22:03 | 2501903 zer0hedge
zer0hedge's picture

Sean Egan  FTW Bitchez

Wed, 06/06/2012 - 22:07 | 2501917 casey13
casey13's picture

A noble but futile effort. The courts are just as rigged as the markets.

Wed, 06/06/2012 - 22:47 | 2502016 dwdollar
dwdollar's picture

And the elections...

Thu, 06/07/2012 - 01:23 | 2502374 Bolweevil
Bolweevil's picture

Don't be a pussy. Throw on a tie and get some Casey.

Wed, 06/06/2012 - 22:09 | 2501922 RobotTrader
RobotTrader's picture

Wow, good luck to those guys.  Unfortunately, they are going to get smushed like ants.

 

No different than what Corzine did to Celente.

A noble battle, but why fight City Hall?

Wed, 06/06/2012 - 23:00 | 2501933 Dr. Engali
Dr. Engali's picture

Why give up your integrity just so they let you play ball ?

Wed, 06/06/2012 - 22:26 | 2501975 SubjectivObject
SubjectivObject's picture

Yeah, you're safe, allbeit useless.  They'l never come for you on trumped up charges, right?

Wed, 06/06/2012 - 23:51 | 2502146 slewie the pi-rat
slewie the pi-rat's picture

L0L!!!

robo_t is deeep cover well-known already as zH's riddle, wrapped in an enigma, dressed in a bra

as a highly experienced dd-covered op, robo has only recently re-covered from the last 40-mule-team trainload of formerly trumped-up charges...

...maybe still recovering would be better, there...   ?

 

Wed, 06/06/2012 - 22:55 | 2502038 bernanke's wors...
bernanke's worst nightmare's picture

Because you have to stand for something or you'll fall for anything Robo.  Because this country was built by guys with balls like the folks at Egan Jones who stood up for what they believed in.  And because if we all just sit there and let the SEC's and the Feds and the Corzines of the world win uncontested we get exactly the country and the world that we deserve.  C'mon Robo, grow a pair.  Admit that no matter how rich Ben has made you with his reckless policies it is your children who will have to pay the piper. So I hope you have saved it all.   Your kids are going to need every penny of it if they're going to eat at all.  And, despite today's idiotic rally we will still have the Rus2k at 600 this summer.  Book it.

Wed, 06/06/2012 - 22:12 | 2501934 midgetrannyporn
midgetrannyporn's picture

The other ratings agencies are tools of the maggots.

Wed, 06/06/2012 - 22:22 | 2501962 nathan1234
nathan1234's picture

Believe the SEC  or

Believe Egan Jones

IMHO in today's financial world the SEC stands for and is run by Securely Entrenched Criminals  with the blessings of the Admin,

CFTC's Gensler is a chip of this SEC block and the CME their casino.

 

 

Wed, 06/06/2012 - 22:56 | 2501969 slewie the pi-rat
slewie the pi-rat's picture

tyler offers a deathMatchTM zH fist of solidarity and support for sEgan et al

[Paste}:  If we could only interject our fondest wish: make this a fight to the death. {]

yeah, BiCheZ!!!

Wed, 06/06/2012 - 22:25 | 2501971 Sophist Economicus
Sophist Economicus's picture

Go Sean Go!!!!

Wed, 06/06/2012 - 22:36 | 2501990 Arnold Ziffel
Arnold Ziffel's picture

I'll gladly contribute to the Egan Jones Plaintiff Suit ...where is their web site!

Wed, 06/06/2012 - 23:00 | 2502049 slewie the pi-rat
slewie the pi-rat's picture

do you think they need money?

tyler needs money!  send it to tyler and thank him for his voice in the fuking wilderness

and then, he can keep drinking,  too!

win-win!

Wed, 06/06/2012 - 22:52 | 2501996 midgetrannyporn
midgetrannyporn's picture

If Sergey Aleynikov can win on appeal against the squidly forces that be then EJ can beat the rap too. Be free Sean and Sergey!

http://www.youtube.com/watch?v=n-GapEyDFkA&feature=related

where is jon corzine muther fukkers?!

Wed, 06/06/2012 - 23:24 | 2502096 slewie the pi-rat
slewie the pi-rat's picture

ty4thefreebirdlink

also for the astute comment (as usual, imo)

corzine is/was very squidly (tyler shld send you some xS zH gear for squidly, m_t_p!)

as  alleged arch-criminals the peeps who (possibly?) took down AmyWinehouseAmy,Amy,AmyuTube well know, after a while, it's pretty hard for this shit to keep mattering;  time and the more present interests tend to heal the older wounds/distract the attention from the bullet holes, suicides, accidentals, and antecedents of the present wtf

lotta wtf's tho, huh?

Wed, 06/06/2012 - 23:02 | 2502056 cooperbry
cooperbry's picture

OK, the porn video was funny.  Good luck EJR.

Wed, 06/06/2012 - 23:02 | 2502057 cooperbry
cooperbry's picture

OK, the porn video was funny.  Good luck EJR.

Wed, 06/06/2012 - 23:02 | 2502058 El
El's picture

The SEC... a complete waste of taxpayer dollars.

Wed, 06/06/2012 - 23:51 | 2502077 world_debt_slave
world_debt_slave's picture

The banksters have done their jobs and run the whole shebang.

Wed, 06/06/2012 - 23:46 | 2502130 lasvegaspersona
lasvegaspersona's picture

mmmmkay

sex must be bad too because I'm pretty sure those same brain chemical thingys are released when I have sex....right?

mmmmmkay then...I got it...

Wed, 06/06/2012 - 23:57 | 2502166 rosiescenario
rosiescenario's picture

We all know that the SEC just has a revolving door with the Wall Street firms they are supposedly regulating.

 

Since Egan Jones embarrassed these big firms by calling a spade a spade, they are now to be punished. The other rating agencies all played ball with Goldman and their ilk, but Egan Jones got out of line.

 

This is quite similar to what the SEC did to Ray Dirks years ago when he uncovered the biggest WS scandal of the time, Equity Funding. The SEC was asleep at the switch and Dirks embarrassed them....so they then tried to prosecute him.

 

I am surprised that the guy (forget his name) who blew the whistle (repeatedly and for many years) on Bernie Madoff did not get an action from the SEC.

 

Investors would be much better off with no SEC rather than having what is supposed to be a regulatory agency actually aiding and abetting the crooks.

 

The byzantine SEC rules and regulations make our tax code appear simple. This is not to serve the public's interest but to insure a very lucrative living for those select attorneys practicing SEC law...the ones who move from the SEC to the very same companies they were supposedly regulating.

Wed, 06/06/2012 - 23:58 | 2502169 Peter Pan
Peter Pan's picture

The action against Egan jones is just part of the big boys trying to strip any business left in the system that small players might have. This is why the middle class is dying. The big boys have no other avenue of growth in a sick economy.

Thu, 06/07/2012 - 00:20 | 2502230 Peter Pan
Peter Pan's picture

A further example of how the middle class entrepreneur is brutalised is evident in how small business in large malls are treated. After being promised exclusivity the next lease robs them of this right and instead the owners subject them to rent increases beyond inflation, requirements to renovate etc. in the process they have gone from being eager business people to wage slaves taking less than their employees and having their homes taken as security for any rental default.

Thu, 06/07/2012 - 00:11 | 2502199 DaylightWastingTime
DaylightWastingTime's picture

egan jones will be declared an enemy combatant and subsequently will be denied trial as a matter of national security

Thu, 06/07/2012 - 00:18 | 2502223 slewie the pi-rat
slewie the pi-rat's picture

not to mention extreme and highly-expedited rendition for entire families, after being attacked unmercifully by nano-drones disguised as baby hummingbirds

Thu, 06/07/2012 - 00:16 | 2502216 Perpetual Burn
Perpetual Burn's picture

Another staff account received nearly 1,800 access denials for pornography Web sites in a two-week period and had more than 600 images saved on "HER" laptop’s hard drive, the report said.

 

lolololo

Thu, 06/07/2012 - 00:23 | 2502234 q99x2
q99x2's picture

Thanks for the sexual advice. You get it all at ZH.

Thu, 06/07/2012 - 00:33 | 2502257 mendigo
mendigo's picture

Way to go EJ!

It is nice to know that there are still people and even organizations that stand for something.

Can't SEC be sued for failure to enforce?

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