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The Final Straw? Jefferies And Six Other Banks Sued For "Fraudulent" MF Global Bond Issuance

Tyler Durden's picture





 

Pick the odd one out of the following 7 banks, while in the process pointing out what they have in common: Bank of America Corp, Citigroup Inc, Deutsche Bank AG, Goldman Sachs Group Inc, Jefferies Group Inc, JPMorgan Chase & Co and Royal Bank of Scotland Group Plc. As it so happens 6 of the 7 are Bank Holding Companies, and have access to the Fed's various emergency facilities. The seventh, Jefferies, which a few years ago, boasted that it is now the largest remaining true investment bank after all its competitors had converted to BHC status, may soon regret it said that and did not join its peers. Why? For the same reason why on November 1, the day after MF Global filed for bankruptcy, we tweeted: "Here is why Jefferies is in deep doodoo: " The reference of course is to the now legendary prospectus for the MF Global 6.25% notes of 2016 that had the infamous Corzine key man event: "interest rate applicable to the notes will be subject to an increase of 1.00% upon the departure of Mr. Corzine as our full time chief executive officer due to his appointment to a federal position by the President of the United States and confirmation of that appointment by the United States Senate prior to July 1, 2013." At this point the only appointment Obama may give Corzine is that of a presidential pardon for a criminal felony offense (assuming of course Corzine brings a sleeping bag to Zuccotti square: the only offense for which he may ever be arrested). Alas, Jefferies, and the 6 other banks, do not have that luxury: as of late this afternoon, all six were sued by pension funds "who said the bonds' offering prospectuses concealed problems that led to the futures brokerage's collapse." Precisely as Zero Hedge expected. And unfortunately for Jefferies, this may well be the final nail in the coffin - because while the market had punished the bank for its Exposure, the biggest unknown in the past 2 weeks was whether and when it would be sued precisely for its MF Global liability. That time is now: next up - every single entity that was impaired in part or in whole as a result of the MF Global bankruptcy will follow suit and sue the same 7 banks... of which only Jefferies does not have the benefit of an infinite backstop. 

More from Reuters:

Other defendants include several officials associated with MF Global, including former Chief Executive Jon Corzine.

 

Friday's lawsuit may be one of the earliest efforts for investors to recover money from relatively deep-pocketed defendants that they believe may share in responsibility for MF Global's October 31 bankruptcy.

 

Bank of America spokeswoman Shirley Norton, Citigroup spokeswoman Danielle Romero-Apsilos and Jefferies spokesman Richard Khaleel declined to comment. The remaining banks did not immediately respond to requests for comment.

 

According to the complaint, the registration statements and prospectuses for about $900 million of MF Global note offerings this year omitted how the company was using high leverage, investing heavily in risky European sovereign debt, and not properly segregating client assets from its own.

 

It said the seven banks helped draft the offering documents and sell the notes, collecting $21.2 million of fees, but that their "failure to conduct an adequate due diligence investigation was a substantial factor" in MF Global's collapse, as well as in defaults on the notes.

 

The lawsuit was brought by the IBEW Local 90 Pension Fund in Connecticut, and the Plumbers' and Pipefitters' Local #562 Pension Fund in Missouri, and seeks class-action status. 

 

It seeks damages for investors between February 3, 2011 and October 31, 2011 in MF Global securities, including its 1.875 percent convertible senior notes maturing in 2016, its 3.375 percent convertible senior notes maturing in 2018, and its 6.25 percent senior notes maturing in 2016.

And to everyone who may have lost money or had their capital locked up indefinitely by the bankrupt firm, which we are 100% certain will see all of its valuable assets picked off by Goldman Sachs and JP Morgan, we suggest you familiarize yourself with lawsuit IBEW Local 90 Pension Fund et al v. Corzine et al, U.S. District Court, Southern District of New York, No. 11-08401 and enjoin it. Because one person who is getting very familiar with its contents right about now is Jefferies CEO, Dick Handler.

Incidentally, if Jefferies in big trouble, our other tweet from November 1 is also true: "And if Jefferies is in trouble, so is Fried Frank, underwriter counsel on the MF Global bond: http://t.co/L5vgjzqA"

So investment banks first; law firms next...Just how high will this debacle for the current administration reach we wonder?


 


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Sat, 11/19/2011 - 02:52 | Link to Comment Ahmeexnal
Ahmeexnal's picture

democRATcy?

Sat, 11/19/2011 - 03:17 | Link to Comment Paul Bogdanich
Paul Bogdanich's picture

This thing with Jefferies is really quite disturbing to anyone who knows the business.  When they say that they were the last true investment bank that was not an idle boast.  Their buy side sales group is over 2,000 strong and the best connected in the business for medium to small firm access.  Their underwriters were honest (for underwriters that is) and they did a lot of good deals. 

The fact that the dildoe CEO and CFO thought they had to go gambling in derivative instruments to keep the salaries up is an embarrasment.  Those two and the board that supported them should be let go.  But will that happen?  Noooo.  In this corrupt system they will likely be eliminated so there is no competition on the low end to the big banks and as a result there will be no capital formation for smaller concerns at all.  Obama and that whole group has to go.  They just have no clue what they are doing.  If you were going to use government money to save a bank (never a good idea but if you were) it would be better to save Jefferies than either Bank of America or Citibank or that unspeakable piece of trash AIG.  But the opposite of what is best will happen.  Just disgusting.          

 

Sat, 11/19/2011 - 08:08 | Link to Comment Mike2756
Mike2756's picture

What overseas entities will pick up on the business? There has to be a few out there that kept clean.

Sat, 11/19/2011 - 14:18 | Link to Comment AldousHuxley
AldousHuxley's picture

Swiss Nazi gold, dictator money banks?

Singapore now is the destination of choice for secret banking, so Singapore banks?

UK's fucked worse than NYC banks?

PIIGS banks?

state controlled Chinese banks?

KGB controlled Russian banks?

Latin drug cartel money Caribbean banks?

African banks?

 

I have more trust on Vegas Casino operators because they know mobs will put them in a bodybag if they lose mob money unlike banksters who get taxpayer bailouts.

 

Sun, 11/20/2011 - 22:01 | Link to Comment ResFam
ResFam's picture

Seriously?  Jeffries CEO is really named "Dick Handler"? Guess he really got caught in a short squeeze.

Fri, 12/02/2011 - 13:16 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

A Rothschild proxy?

Sat, 11/19/2011 - 08:14 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

Obama and that whole group has to go.

You just don't get it do you? Presidential figureheads and their party affiliations have little to do with the real underlying power.

I say let Goldman start regulating the industry. Let's get it out in the open and visible to all. This way we can stop blaming the wrong entities for the destruction of this country.

Sat, 11/19/2011 - 08:20 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Well, it's not like GS calls the shots it calls if you knwo what I mean CG. Some even might say the Carlyle group is way more powerful than GS. The Mafia is definitely more powerful (even on Wall Street) than GS.

The mafia runs the US. look at who is the top of the heap?

Google Mayer Lansky.... many things start to become rather obvious as it were.

ORI

caveat-emptor/

Sat, 11/19/2011 - 08:52 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

I love these Goldman sponsored blogs. The Vatican Mafia is the puppet master.... Bwahhhhhahah.

They do however produce catchy tunes:
http://www.youtube.com/watch?v=nnpEI3njoeo

Sing along

Austerity for you, pay that Jew confetti back.
Christianity had a thousand year, ban on this shit.
Even Islam forbids it.
Cooperative pacifist species, are killed to extinction.
Competition for dominance, is an evolutionary, mandate.
How else can we arbitrate DNA?
Fukushima was a black swan.
Let's all just totally panic.
And hope, this is as bad as it gets.
Sort of a catch twenty-two.
That was the dumbest fucking post, I've ever read.
You don't know how, mind fucked you are, do you?
Fuck you, you leave.

Sat, 11/19/2011 - 09:46 | Link to Comment Oh regional Indian
Oh regional Indian's picture

I missed the intent of the first line.

But that video is awesome. Well done fuu.

ORI

Sat, 11/19/2011 - 10:34 | Link to Comment i-dog
i-dog's picture

Interesting that you mentioned Meyer Lansky and the Vatican Groupie immediately associated it with the Vatican! Freudian slip? Inside knowledge? LOL!

Sat, 11/19/2011 - 10:52 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

Or: Have you two just become that predictable.

Sat, 11/19/2011 - 13:38 | Link to Comment fuu
fuu's picture

Thank you.

Sat, 11/19/2011 - 18:55 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

Right on fuu. I like the background singer who cannot get past 7, the skull spirals, the trance like beat.... Well done. Did Marla help?

Gold fucking stars for errbody.

Sat, 11/19/2011 - 21:46 | Link to Comment Carlyle Groupie
Carlyle Groupie's picture

Yes I applaud brilliance. The content not your youtube skillz.

Sat, 11/19/2011 - 22:28 | Link to Comment fuu
fuu's picture

<bow>

Sat, 11/19/2011 - 10:38 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

@ORI-I wouldn't argue that the Carlyle group is equally as powerful as Goldman Squid, but not any more so. These groups at the top are all on the same team, they just have different roles. Carlyle group pushes the military industrial complex and Goldman finances it.

I guess the Meyer Lansky reference is a bit vague. He sheltered money for the mob, but that is nothing compared to the trillion dollar enterprise of the Catholic church, for example.

Either way, I liked you post. We need more people to read outside the lines and think outside the box...

Sat, 11/19/2011 - 11:39 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Thanks RTM. in truth, Lansky was the Drug Kingpin, plain and simple. Went seamlessly from alcohol to drugs. He answered (puportedly) to the Archbishop of NY, Vatican's man in the Big Apple (Hmmmmmm.....)....

Lansky worked for the Vatican. The partners of the Crown Corporation and joint owners of the Pentagon.

The US is the Jesuit army of a vengful god for the Vatican/bankers. A wet dream for them.

ORI

Sat, 11/19/2011 - 12:13 | Link to Comment Paul Bogdanich
Paul Bogdanich's picture

Obama is not a robot.  He is possessed of free will you know.  He could have lied to them to get into power and then used the power.  Presidents used to do that.  LBJ and Nixon come immediately to mind.  George Herbert Walker Bush was also his own man.  Reagan was a figurehead and that governement was run by Don Regan the chief of staff but at least he was from Mother Merrill and not Goldman.  Not a jew in other words.  Even G. W Bush told the bankers to shove it when they came to him to get bailed out on Delphi Automotive.  He of course later capitulated when all the investment banks went tits up.  Obama is just an empty suit.  A shill that is acting as the political cover man for a bank heist.  He doesn't even get the politics right.  He's just an embarrasment.  Nobody could be worse.  Of course I used to say that about G.W. Bush as well.           

Sat, 11/19/2011 - 12:51 | Link to Comment Bolweevil
Bolweevil's picture

Did you stop (start?) drinking? You are usually so full of shit, but I am now in complete support of what you're posting today.  I applaud your cogent thoughts regarding the administration. 

Sun, 11/20/2011 - 15:00 | Link to Comment 11b40
11b40's picture

So, I'm not the only one to notice this change in personality.  Good.  Not sure if it is the drink, or lack thereof, but this is 2 in a row from PB that I agree with.....well, mostly.  That part about George Bush senior being his own man I would argue with.  Just because he was not owned by one set of crooks, does not mean he wasn't owned by another group.  If were really his own man, that would just mean he controlled a very large gorup of theives himself.

Keep up the good work, Paul.

Mon, 11/21/2011 - 14:00 | Link to Comment Willzyx
Willzyx's picture

I respect George W. Bush in the sense that when he was elected, we all knew we were fucked.  Sure enough, the country went to hell in a hand basket under his watch.

Obama on the other hand, campaigned on hope and change.  Instead of hope and change, we got fucked.  If I'm gonna get fucked, I'd at least like to know about it beforehand. 

Sat, 11/19/2011 - 11:06 | Link to Comment vast-dom
vast-dom's picture

Thank you for your insight Paul B. I agree this is all just disgusting. And the fact that the only seemingly "decent" last true investment bank apes the big boys into unethical gambling waters only to drown due to lack of bail-outs is actually scary. At the end of the day the colluisive oligopoly becomes a monopoly with a few companies essentially operating as one with Teh Gov and Teh Fed.

 

Thanks again.

Sat, 11/19/2011 - 11:12 | Link to Comment Widowmaker
Widowmaker's picture

Disgusting? No.

Hope and change and record bonuses for criminals.

Tha criminal syndicate still washing their asses clean in the US Treasury fountains.

Failure rewarded is 100% by design, pay attention, and pay your taxes.

Sat, 11/19/2011 - 20:51 | Link to Comment ToNYC
ToNYC's picture

For all the wonderful reasons that Jefferies did the right thing and stands alone is precisely why the $2 April puts sport a huge open interest. Can't be having Saints in the Pirate's lair, but we can have a night of the long knives.

Sun, 11/20/2011 - 12:48 | Link to Comment bigun
bigun's picture

the good has to die young

 

Sat, 11/19/2011 - 20:42 | Link to Comment Votewithabullet
Votewithabullet's picture

AhmeexNAL?

Sat, 11/19/2011 - 02:55 | Link to Comment Totentänzerlied
Totentänzerlied's picture

Maybe they'll slap both wrists this time. Wouldn't that be something!

Sat, 11/19/2011 - 04:38 | Link to Comment Michael
Michael's picture

Complete and total worldwide collapse solves everything.

We should have a thread discussion sometime on the beauty of the barter system.

I'll give you a double roll of toilet paper for a gallon of gas, that sort of thing. 

Sat, 11/19/2011 - 05:42 | Link to Comment jeff montanye
jeff montanye's picture

re: the fried frank reference in the post, the wikipedia entry for them notes douglas feith as an alum.  that guy gets around.  wish he were deep in an iraqi prison.

Sat, 11/19/2011 - 10:16 | Link to Comment FEDbuster
FEDbuster's picture

Barter System?  What happens to government teat suckers and financial market parasites in a world where you have to produce something of value to stay alive?

Sat, 11/19/2011 - 10:36 | Link to Comment i-dog
i-dog's picture

The dodo comes to mind.

Sat, 11/19/2011 - 21:29 | Link to Comment Tom Green Swedish
Tom Green Swedish's picture

Russia defaulting because of America pushing the Red Army more into the Afghan War comes to mind.

Sat, 11/19/2011 - 06:55 | Link to Comment Taku
Taku's picture

Speaking to everything FUBAR..

BEWARE: Sit-down protesters may be a threat to public safety and are to cease and desist. There may be unconfirmed foreign operatives (tourists, foreign nationals, but let's call them possible terrorists until confirmed otherwise) amongst them, and none likely have police-approved press passes to film or release officially approved commentary. 

http://www.wired.com/threatlevel/2011/11/nypd-occupy-press-pass/

http://www.cpj.org/2011/11/journalists-obstructed-from-covering-ows-protests.php

The squatting is clearly a health hazard and in violation of city public space by-laws, obstructing law enforment duties, and non-compliant with approved protest parameters.

http://alternativenewsreport.net/ows-screaming-peace-while-planning-for-violent-revolution-you-decide/stand-off-la/

Some are students prone to brain-washing by extremists. These young unstable elements are highly disruptive to you and the status-quo. Do not attempt to collude or be complicit with such individuals.

Failure to comply will result in harmonization.

Resistance is futile.

Sat, 11/19/2011 - 09:04 | Link to Comment johnnynaps
johnnynaps's picture

Yep, some of the young were brainwased by terrorist who told them to purchase homes (now underwater), contribute to lackluster 401k's, go to school and rack up debt and come out and get a good job flipping burgers, america is free yet there's a camera on every corner and if you get a parking ticket it could take 2 days of burger flipping to pay back. Yep, they were brainwashed alright. And now, they see that being a good citizen doesn't pay as Paulson, Dimon, Corzine, Mozillo, Fuld, Thain and the rest of the crew has clearly demonstrated.

Sat, 11/19/2011 - 11:16 | Link to Comment NotApplicable
NotApplicable's picture

Brains!

Sat, 11/19/2011 - 07:37 | Link to Comment spankfish
spankfish's picture

i wonder if I could barter my rectal gas?

Sat, 11/19/2011 - 08:41 | Link to Comment Janice
Janice's picture

Only to the greenies.

Sat, 11/19/2011 - 11:10 | Link to Comment vast-dom
vast-dom's picture

Well at least you're NOT blaming the kikes and the niggers for all this Mikey boy. Maybe you're still a racist fuck but at least you're drinking your morning SHUT THE FUCK UP joe and it's kinda sorta working and/or your retardo meds finally kicked in?!

Sat, 11/19/2011 - 14:12 | Link to Comment Elliott Eldrich
Elliott Eldrich's picture

Keep in mind there are over 400 active nuclear power plants in the world. If the system experiences a "complete and total worldwide collapse" then you are going to be counting on all of those plants either being properly shut down, or still operated in a safe manner. If anything goes wrong, we could be looking at Fukushima / Chernobyl times 100, and how much more radiation can the biosphere take before long-lived climax predators (like us) are no longer viable?

How about a bigger, tougher challenge, like finding a way to solve these problems and move forward without having to go through a collapse? There's an old saying about babies and bathwater that applies here...

Letting everything fall apart is easy. Building is harder, but has a lot more to offer. 

Sat, 11/19/2011 - 11:26 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

Yeah, until there is banker perp walk day, all of this is just a waste of time and money. The rapists will keep on raping. 

Sat, 11/19/2011 - 02:55 | Link to Comment jonjon831983
jonjon831983's picture

This is interesting... how things are just so interconnected.

 

Is it common to have this type of clause " +1% if Corzine gets dumped?" in a bond?  Or is it some type of hubris...

Sat, 11/19/2011 - 03:06 | Link to Comment Irwin Fletcher
Irwin Fletcher's picture

No shit! How do you price that? Is that the 1% everybody's been talking about?

Sat, 11/19/2011 - 06:37 | Link to Comment Taku
Taku's picture

+ 1.5% if Corzine isn't satisfied and frowns

Sat, 11/19/2011 - 08:53 | Link to Comment Bendromeda Strain
Bendromeda Strain's picture

Now we know what the "key man" provision really meant...

http://tinyurl.com/87twu6g

Sat, 11/19/2011 - 20:58 | Link to Comment ToNYC
ToNYC's picture

That 1% was his nut on the kiting spread; he was shooting for the stars, dividing by almost Zero (0.01)

Go big swinging dick Jon, blow up Chi-town for the team. Weapon of Mass Financial Destruction.

Better call the Goldman guys for advice. Judd Gregg just traded in his people's pittance from the US Senate (N.H.) to get in the big GShow. You go Judd, great timing!

Sat, 11/19/2011 - 03:08 | Link to Comment lolmao500
lolmao500's picture

I just couldn't believe it either... those guys really think they are gods.

Sat, 11/19/2011 - 03:26 | Link to Comment caerus
caerus's picture

just more evidence of the incestuous relationship between wall street and the white house...i suspect corzine and the bondholders were fully expecting him to be appointed to federal office...secretary of the treasury no doubt

Sat, 11/19/2011 - 10:12 | Link to Comment Elwood P Suggins
Elwood P Suggins's picture

What makes you think he still isn't going to be Sec of the Treasury?  The current one is a tax cheating crook so a precedent has been set. 

Sat, 11/19/2011 - 10:20 | Link to Comment FEDbuster
FEDbuster's picture

No shit!  This MF fuckup and theft might look good on his government job resume.  I wouldn't be surprised if he runs for POTUS in 2016 or is made FED chairman.

Sun, 11/20/2011 - 00:34 | Link to Comment caerus
caerus's picture

i never said he wouldn't...carry on

Sat, 11/19/2011 - 11:14 | Link to Comment Widowmaker
Widowmaker's picture

100% AAA bullshit.

Sat, 11/19/2011 - 03:01 | Link to Comment Manthong
Manthong's picture

Wasn't it Rosenberg who remarked "there is seldom one cockroach in a messy kitchen" after the MF mess broke?

Sat, 11/19/2011 - 03:07 | Link to Comment disabledvet
disabledvet's picture

eh. think we're reaching on the implications here. we already know the Fed slammed the door on MFGlobal dooming both MF and Jeffries. So there was some type of "incestuous relationship." Sounds like Jeffries was doing their job to me--not well of course. Moreover rich people not merely reaching for yield but "soaring for it" are like Icharus going to have their waxen wings melted. The fact is companies that have tremendous free cash flows, great balance sheets, great access to credit at these low rates and have a "halo effect" of some sort still remain the place to be. The Fed has done their job and the proof in the quality of their work is the fact that an otherwise perfectly healthy Europe is/will be paying upwards of "who knows how much" in interest rates which will make what appears to be perfectly manageable debt loads perfectly insumountable. At the Federal level here in the USA this will not be the case due to the fact that the tax man has us perfectly by the balls over here. I still believe Meredith Whitney is vastly understating the problem in the municipal bond space given the combination of the is Administration's attack on "the rich" plus their constant harping about the need to take away the tax free status of much of the debt. We've already had not only the biggest but the most muncipal bankruptcies in our history these past two years. There will be many more on the way. This area of financing is not a transparent space. It's a disaster waiting to happen. Should oil surge say "$50 bucks a barrel on Monday" that's where America's "Greece" will located in my view.

Sat, 11/19/2011 - 04:20 | Link to Comment cossack55
cossack55's picture

I awarded you a + for the Icharus reference.  Greek mythology is so today. My favorite is the myth that Greece will pay its debt. Forever Iceland. Know any Norse mythology?

Sat, 11/19/2011 - 05:57 | Link to Comment jeff montanye
jeff montanye's picture

well odin and his sons (thor, etc.) were well hung and the lady of the house was known as frigg.  for other info consult "a volva":  http://en.wikipedia.org/wiki/Odin

Fri, 12/02/2011 - 13:34 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

In norse mythology, great traders would pass beyond this veil to a special land reserved for the great, referred to as Valhalla.

When a trader died his corpse would be burned on a stack of assorted grade muni and corporate bonds in a 1937 Chris Craft runabout  in a fjord.

If no bonds were available for the pyre, gin would be used, and if a boat could not availed, they would be lashed to a sinking index fund.

See "Ancient & Modern Norse Trade Routes & Bond Trades - 1962 by -Bjorn Bernanke"

Sat, 11/19/2011 - 03:07 | Link to Comment GenXer
GenXer's picture

Thank god they called John...he knew what to do.

Sat, 11/19/2011 - 05:53 | Link to Comment mrdenis
mrdenis's picture

Meanwhile, Fox Business is reporting that Corzine's personal wealth has taken a big hit, estimating his net worth to be down to $53 million, before legal fees, and not counting any personal investment losses that Fox says it is believed Corzine suffered.

Sat, 11/19/2011 - 08:18 | Link to Comment youngman
youngman's picture

Oh but I bet his wife just got very wealty....somehow she made a few hundred million somehow in the last two months I bet...wink wink....that is what Bernie Madoff tried to do and so will John....

Sat, 11/19/2011 - 10:16 | Link to Comment Dapper Dan
Dapper Dan's picture

The wives club!

The Real Housewives of Wall Street Why is the Federal Reserve forking over $220 million in bailout money to the wives of two Morgan Stanley bigwigs?

Read more: http://www.rollingstone.com/politics/news/the-real-housewives-of-wall-street-look-whos-cashing-in-on-the-bailout-20110411#ixzz1eA1oi94D

Fri, 12/02/2011 - 13:36 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

You can't make this shit up. Every time you try to satrize it, the truth is more absurd than any fiction you could imagine.

 

Sat, 11/19/2011 - 11:06 | Link to Comment Montgomery Burns
Montgomery Burns's picture

Welcome to the 99% /Sarc

Sat, 11/19/2011 - 11:27 | Link to Comment Crumbles
Crumbles's picture

It's Jon ... Please don't insult the Crapper fellow.

Sat, 11/19/2011 - 03:11 | Link to Comment sitenine
sitenine's picture

Is that a shoe I hear dropping?

Sat, 11/19/2011 - 03:11 | Link to Comment lolmao500
lolmao500's picture

So all, except Jefferies have unlimited FED money to pay the lawsuits?

Sat, 11/19/2011 - 03:14 | Link to Comment sitenine
sitenine's picture

You mean "settle without admitting any wrongdoing", right?

Sat, 11/19/2011 - 03:25 | Link to Comment lolmao500
lolmao500's picture

Same thing.

Sat, 11/19/2011 - 15:03 | Link to Comment sitenine
sitenine's picture

Unfortunately

Sat, 11/19/2011 - 06:20 | Link to Comment slaughterer
slaughterer's picture

Seems like ZH is trying to cast JEF in the role of Lehmann 2011.  2011: the year that took out the last investment bank.   

Sat, 11/19/2011 - 13:11 | Link to Comment Bolweevil
Bolweevil's picture

You can put a pig in a dress, but it's still a pig. 

Fri, 12/02/2011 - 13:39 | Link to Comment TheMerryPrankster
TheMerryPrankster's picture

Yes, but look how nice it's legs look in those spike heels and notice how it makes the buttocks look rounder and higher.

Illusion is all we ever really have.

Sat, 11/19/2011 - 03:12 | Link to Comment jimmyjames
jimmyjames's picture

It said the seven banks helped draft the offering documents and sell the notes, collecting $21.2 million of fees, but that their "failure to conduct an adequate due diligence investigation was a substantial factor" in MF Global's collapse, as well as in defaults on the notes.

************

Isn't that what everyone wanted to do to rating agencies that stamped everything that came across their desk AAA until they read the fine print at the bottom?

Sat, 11/19/2011 - 03:16 | Link to Comment Triple A
Triple A's picture

I hope all 100,000 + customers that got screwed sue the shit out of these cocksuckersand actually win for once.  Especially Corzzzit, I want to see that sucker get popped.

Sat, 11/19/2011 - 06:43 | Link to Comment scatterbrains
scatterbrains's picture

They should really sue the fed for discrimination... they've been bailing out every bank, buisness and country across the planet.  When you have the power to create money and go out  saving this firm and that  by what grounds now do you get to pick and choose who lives and dies?  Sue them bitches! Even if it's futile it makes a great headline.

Sat, 11/19/2011 - 13:16 | Link to Comment Bolweevil
Bolweevil's picture

Since coprorations are "people" couldn't we deduce in a court of law that people are corporations and therefore deserve a bailout too? The fed could also satisfy a portion of its dual mandate of inflation/employment and put the 100,00 or so on the books as employees.

Sun, 11/20/2011 - 02:51 | Link to Comment defender
defender's picture

Sadly, the US system is based on corporate law.  This means that ANY entity that comes before the court (be the human or otherwise) is viewed as a corporation.  This is also why your Social Security card is made out to a person with a name that is in ALL CAPS, denoting that it is for a corporation.

Chumba and others seem to be getting some traction in going to court as a sovereign, but I doubt that will last very long before it is slapped down.

Sat, 11/19/2011 - 11:20 | Link to Comment itstippy
itstippy's picture

The customers could have purchased Treasury notes at 3.25%, but instead purchased MF Global issues at 6.25% (plus a bizzare enhancer if Corzine left for Washington).  Now the 6.25% notes have blown up and the 100,000+ customers are crying foul.  The pension fund managers who bought this crap are telling the fund members, "We were lied to about the risk - nobody could have seen this coming".

This has gotten so old.  Risk is risk.  It does not take a financial genious to spot risk.  The MF Global issue was hotter than a $2 pistol.  They were a super deal, so it was obvious they were hot.  Risky.  Could burn you.  Dangerous to buy or hold.  Etc.

Sat, 11/19/2011 - 12:03 | Link to Comment perchprism
perchprism's picture

 

The "enhancer" is not so bizarre, actually.  If you knew you'd get an additional 1% if Corzine became the Treas. Sec., you'd be one of 100,000 lobbyists out there trying to make it happen. 

Sat, 11/19/2011 - 03:19 | Link to Comment hmmmstrange
hmmmstrange's picture

Time for the 6 remaining "banks" to pile on Euro debt on to Jefferies' balance sheets. Shurley there's some lopsided leverage scheme that can show net 0 exposure.

Sat, 11/19/2011 - 07:47 | Link to Comment spankfish
spankfish's picture

Sounds like relooting.  Is relooting even a word?  Well it is now.

Sat, 11/19/2011 - 13:18 | Link to Comment Bolweevil
Bolweevil's picture

(C) 2011 Spankfish

Sat, 11/19/2011 - 03:40 | Link to Comment c'mon man
c&#039;mon man's picture

Just the facts man...just the facts...

Sat, 11/19/2011 - 09:03 | Link to Comment Mr. Lucky
Mr. Lucky's picture

re-re-re-re-......looting

How many re's can this ponzi go?

Sat, 11/19/2011 - 03:43 | Link to Comment CvlDobd
CvlDobd's picture

Arrest 3,000 for crapping I'm street.
Arrest 5 executives for stealing $600 million.

What would you do? I keep reading about banker fucks talking about wasting city resources on police overtime. As NWA said, Fuck tha police! Arrest the real criminals and the crowd just might dissipate.

Sat, 11/19/2011 - 04:06 | Link to Comment c'mon man
c&#039;mon man's picture

Before they do any more arresting anyone they may want to make a call or two to their union reps and see how their pension funds  are doing...just to be on the safe side....

Sat, 11/19/2011 - 06:02 | Link to Comment jeff montanye
jeff montanye's picture

imo it's a lot more than $600 million stolen.  beyond the segregated accounts, most (all) of the securities underwritten for the firm appear fraudulent.   

Sat, 11/19/2011 - 06:30 | Link to Comment topcallingtroll
topcallingtroll's picture

They arent just crapping on the streets.

You ought to ask Goldman's assistant vice president for operations if he detected any shit in his dinner last night.

Surely no one would be low enough to try to infect him with hepatitis, woyld they?

That would be terrible.

Sat, 11/19/2011 - 06:49 | Link to Comment scatterbrains
scatterbrains's picture

oh wow a faint spark of hope stirred just now

Sat, 11/19/2011 - 08:27 | Link to Comment Miss Expectations
Miss Expectations's picture

I recall going out to dinner and the steak I got was well done.  I had ordered it medium rare.  When the waiter asked how everything was, I said that the steak was overcooked.  He took my plate away and said he would fix it.  My date look horrified and I'm like "WHAT?"  He said they don't care.  " Do you really think they care?"  He said the cook will probably spit in my food or drop it on the floor a few times before he cooks me another steak.  Getting another steak took over a half hour. 

So, here we have OWS...so many people who know that the cooks don't care.  These "customers" are being characterized as some sort of sicko, wacko, disease-infested malcontents who don't know what they want.  They are rapists, thieves and deficating fools who should just go home already. 

The fraud, deception, thievery, fascism, money printing, criminality and control by the world's insiders is a tasty dish.  Eat it.  Better yet, just stay home and order in.  Don't complain about the shit in the food.

Sat, 11/19/2011 - 13:29 | Link to Comment CharlieSDT
CharlieSDT's picture

If you're hot I'll have you over for dinner, I'm an excellent cook.

Sat, 11/19/2011 - 07:59 | Link to Comment spankfish
spankfish's picture

In the news game... its if it bleeds it leads.  The only way your gonna get the MSM to put these suits inf front of a camera is if they are involved in a circle jerk with Chasey Lain.

Sat, 11/19/2011 - 10:28 | Link to Comment FEDbuster
FEDbuster's picture

A coach or a priest fucking little boys in the ass gets much more airtime than a former governor fucking 100,000 investors in the ass.

Sat, 11/19/2011 - 03:49 | Link to Comment Ineverslice
Ineverslice's picture

These clowns have really done us in...The fuse (however long it is) has been lit and there's not much we can do. 

Sat, 11/19/2011 - 04:02 | Link to Comment HankPaulson
HankPaulson's picture

It's a travesty that they're being sued: how can the free market reach its utopic equilibrium with this kind of regulatory interference?

Sat, 11/19/2011 - 13:29 | Link to Comment logically possible
logically possible's picture

The real travesty is, the unions that lost their retirement and pensions, are sueing the go to people of the current administration, the very administration that is so protective of the unions.

Sat, 11/19/2011 - 04:27 | Link to Comment jmcadg
jmcadg's picture

"interest rate applicable to the notes will be subject to an increase of 1.00% upon the departure of Mr. Corzine as our full time chief executive officer due to his appointment to a federal position by the President of the United States and confirmation of that appointment by the United States Senate prior to July 1, 2013."

 

As he resigned and hasn't been appointed to any position, does this offer a loophole? Probably.

Sat, 11/19/2011 - 08:17 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

Interesting that it is in there to begin with - Corzine was apparently seriously being considered for Geithner's job. Quite a change of fortunes. 

Sat, 11/19/2011 - 10:30 | Link to Comment Widowmaker
Widowmaker's picture

This is surprising?

You will be shocked to know that LBJ would have most likely gone to prison if "other plans" weren't made in Dallas, too.

Washington is the exit, and it's tax motherfucking free!!!

Criminals, every one of them.

Sat, 11/19/2011 - 11:08 | Link to Comment jekyll island
jekyll island's picture

Seems like being a treasury sectretary is almost as good a job as the redshirted ensigns who went with Captain Kirk down to the planet's surface.  Never saw that coming.  

Sat, 11/19/2011 - 11:49 | Link to Comment wisefool
wisefool's picture

Naw its a good gig. Recently saw a post here on ZH with CSPAN video. Paulson was testifying before congress. And unlike Ben who sits like a prim  professor at the deus, Hank was sitting in the hot seat like captian kirk. slightly rotated, shoulders cambered for king of the pride effect, but also totaly relaxed.

  • Congressman: Is it true that after you put the wheels in motion to bailout all of these firms, you sold 200 million in stock, tax free?
  • Hank "rocket jump" Paulson: When you are "forced" in to government service you must sell your positions, so those sales must of course be tax free.
Sat, 11/19/2011 - 04:56 | Link to Comment silver4me
silver4me's picture

Advice please

I'm looking for the best way to short French and Japan banks. I only have access to American and Canadian markets.

I'm going to buy some put options on jefferies monday morning looking to add some french, japanesse, and maybe some good ole Italian banks. Already own BAC, JPM, puts

Société Générale is listed as pink (market). No options would be avaiable to short.

Is there restrictions on the French banks due to their ban on shorts?

Sat, 11/19/2011 - 14:29 | Link to Comment magpie
magpie's picture

you might have to go for the indeces instead.

btw anything Canadian with big FUCKING PIGS exposure ?

Sat, 11/19/2011 - 14:50 | Link to Comment Desert Irish
Desert Irish's picture

Had a chuckle the other day driving along the Gardiner Exspressway - on top of the Royal Bank of Canada Bldg they still have the RBC - DEXIA sign up in 10' foot high lettering. Guess someone missed the memo.

Sat, 11/19/2011 - 05:21 | Link to Comment plantigrade
plantigrade's picture

"Dick Handler" ?

Sat, 11/19/2011 - 06:04 | Link to Comment jeff montanye
jeff montanye's picture

he prefers to be "richie rich" handler. 

Sat, 11/19/2011 - 07:37 | Link to Comment nmewn
nmewn's picture

"Dick Handler" ?

Yeah, in this new warped Wild West reality its impossible to make any of this shit up.

Govenor O'Bama appoints Sheriff Joe Biden to personally ride shotgun on the stagecoach carrying 787 billion in Benny Bucks and the populace heaves a great sigh of relief at this news.

Upon arrival it is discovered the strongbox is empty and Govenor O'Bama announces the box wasn't as strong as he had hoped it would be. He and Sheriff Joe mount their horses and ride off back down the trail looking for random notes blowing in the breeze.

Back in town, Jon Corzine (one of the leaders of the Hole in the Budget Gang) is seen exiting the rear door of the bank followed by Loyd (the Godfather) Blankfein and Jamie (Short Silver) Dimon with the rest of the HITBG boys carrying large bags.

They leave town in the same direction as the stagecoach had left. Some suspect to meet up with the Govenor & the Sheriff.

Sat, 11/19/2011 - 08:08 | Link to Comment Rollerball
Rollerball's picture

Kinda like "Die Hard 2" + "Die Hard With a Vengence" all rolled into one.

Sat, 11/19/2011 - 09:00 | Link to Comment nmewn
nmewn's picture

Yep...just theiving guys with ties.

Its pretty easy to spot them no matter what they wear...(continuing on with the Wild West theme)...the Sheriff & Govenor are co-owners of the Wall Street Saloon where they just installed the new roulette tables with the magnets underneath ;-)

Sat, 11/19/2011 - 08:11 | Link to Comment spankfish
spankfish's picture

Count da Money!  Count da Money!  Its de Monet!

Sat, 11/19/2011 - 05:22 | Link to Comment williambanzai7
williambanzai7's picture

The Street keeps getting smaller and smaller but the same VLSCs keep cruising to and fro.

Very Large Shit Carriers

Sat, 11/19/2011 - 06:34 | Link to Comment topcallingtroll
topcallingtroll's picture

The shit references are so apt now.

OWS is more broadly diversified than just crapping on police cars. I cant wait for their most recent antics to make the news.

Sat, 11/19/2011 - 05:37 | Link to Comment RemiG2010
RemiG2010's picture

Jon Steward just got another manna from heaven .... I mean the White House!

Sat, 11/19/2011 - 05:54 | Link to Comment stopcpdotcom
stopcpdotcom's picture

Chinese MFs Sentenced To Death For Finance Fraud

http://rmiglobal.org/2011/11/19/coming-to-america-chinese-mfs-sentenced-...

Sat, 11/19/2011 - 06:38 | Link to Comment topcallingtroll
topcallingtroll's picture

Get your fresh organs here in China.

Nobody beats our prices. Nobody!

Sat, 11/19/2011 - 06:29 | Link to Comment Motorhead
Motorhead's picture

Boy, good thing Dick Bove (beau-VEY...rhymes with "oy-vey") didn't come on TV to say all was well at Jefferies.

Sat, 11/19/2011 - 06:37 | Link to Comment El Gordo
El Gordo's picture

Who was it that said "if you're not with us, you're against us?"

Sat, 11/19/2011 - 10:31 | Link to Comment Widowmaker
Widowmaker's picture

It was Hulk Hogan and the NWO.

Sat, 11/19/2011 - 12:32 | Link to Comment wisefool
wisefool's picture

It was also the recently sworn in Anikan/Darth Vader. In revenge of the Sith.

Believe it or not, Federal employees (not just congress critters) go through a "swearing in" ceremony. presumably to the constitution. Then they have a seprate swearing in ceremony when they join the federal employees union. presumably to the masters of that organization. The combination of the two is specifically design to mind fuck them such that they are not held to either oath except when specifically compelled by their handlers.

Sat, 11/19/2011 - 08:30 | Link to Comment sabra1
sabra1's picture

we can remain sued, longer than you can remain solvent! by the time a judgement is rendered, in say, twenty years, oBLAHma would still be president!

http://www.infowars.com/1-through-30-%e2%80%93-the-coming-u-s-financial-crisis-by-the-numbers-2/

Sat, 11/19/2011 - 08:15 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

Strike up the Jefferies House Band! The Fat Lady is here! 

Sat, 11/19/2011 - 12:07 | Link to Comment Granangry
Granangry's picture

I agree but lets save the celebrations for when we hear that their entire workforce is being terminated. Last "pure" investment bank or not, they are simply more banker scum that needs to be eradicated. Hope their collapse coincides perfectly with the holidays.

Sat, 11/19/2011 - 08:21 | Link to Comment sabra1
sabra1's picture

(overheard at the bernanks)

 

"YOU BORROW, YOU PAY!"

 

"YOU BORROW, YOU PAY!

 

"but honey, i'm your mother"

"i'm sorry mamma!"

Sat, 11/19/2011 - 08:35 | Link to Comment ThisIsBob
ThisIsBob's picture

So a BHC can go to the window and get money to pay a judgment?

Well, that's good news.

Sat, 11/19/2011 - 08:41 | Link to Comment dcb
dcb's picture

The idiots who see the world in terms of left and right I thnk ate really stupid. Am I sorry I voted for Obama and that he has to go the answer is yes. Will the next person around change3 anything of value, no. People forget ENRON and ken lay was Bush 2's biggest donor.

You can change the faces all you want and it is alwyas the same story because it's the system.

 

Just like the losy mortgage backe3d securities these folks sold, Now it's MF golbal bonds, they were at so much leverage what were the companies ratings, the ratings agencies played a role. It's the system you asses.

Sat, 11/19/2011 - 10:35 | Link to Comment WonderDawg
WonderDawg's picture

I've been singing that tune for a while now. I've lost some "friends" who are so bought into the left-right paradigm that their minds just can't get wrapped around the fact that it's the system that's broken. Election campaigns are nothing more than public auctions. Dems and Repubs cost pretty much the same.

Get over the left-right bullshit.

Sat, 11/19/2011 - 13:34 | Link to Comment Bolweevil
Bolweevil's picture

Rich-poor is easier to delineate anyhoo.

Sat, 11/19/2011 - 14:26 | Link to Comment sschu
sschu's picture

Am I sorry I voted for Obama and that he has to go the answer is yes.

I will make a wild guess that the 6:1 (the one being me) vote means there are a lot of folks who bought the same BS from the Bamster and now try to rationalize it because “they are all the same”.  Maybe they are, but maybe it is fools like you who didn’t bother to look beyond the NY Times headlines or the latest on CNN news to see what a corrupt empty suit you voted for.  And yes, it was all out there for those who wanted to look.

Would it have been better under McCain or someone else?  Who knows, but it is hard to imagine it could be any worse.  I am so tired of those trying to get themselves off the hook for how lousy the Bamster has been by blaming the “system”.

 

There are good people out there, maybe spend some time trying to determine who they are and getting people to support them.  Contrary to what many of the fatalists on ZeroHedge preach, it can be fixed.  The pain, diligence and work will be difficult, but that is not a reason to give up. 

sschu    

 

Sat, 11/19/2011 - 08:50 | Link to Comment Mike2756
Sat, 11/19/2011 - 11:51 | Link to Comment Boxed Merlot
Boxed Merlot's picture

Another short interview at UVA was good too. A little more info on the Japanese monetary scheme. Yes indeed, water is wet.

Sat, 11/19/2011 - 09:04 | Link to Comment richard in norway
richard in norway's picture

let me see if i understand this right, the notes were saying that the appointment of corzine to a govt postion would increase the value of the fund by more than1% and the investers were garranteed to share in that.

 

 

this sounds like conspircy to commit fraud and/or embezzalment, and anyone who bought these notes was a party to that conspircy. furthermore anyone who read the details but did not buy the notes, but also failed to notifiy the proper authorities would be guilty of.......im not sure what but i am sure that it is illegal not to report a crime that is being planned.

 

 

by my reckoning there should be about 10000 people going to jail, or have i misunderstood

Sat, 11/19/2011 - 10:14 | Link to Comment MachoMan
MachoMan's picture

fundamentally, fraud cannot be maintained for a "future" action (a favorite defense by attorneys).  Further, I have no idea how you got embezzlement.

Sat, 11/19/2011 - 14:32 | Link to Comment lotsoffun
lotsoffun's picture

in an ideal world - that is actually true.  because they create a conflict of interest - i buy the notes, and then i lobby for corzine to go to DC.  from the american perspective - it was thought that corzine was such a great genius leader - to have him at MF would guarantee the firms success, and if he left, nobody, but NOBODY, could possibly be as great a leader as he was.

 

 

Sat, 11/19/2011 - 09:08 | Link to Comment PulauHantu29
PulauHantu29's picture

Free Money at the Open Window? Where is that window?

Can the average person go to "the window" for free money also?

Sat, 11/19/2011 - 10:37 | Link to Comment WonderDawg
WonderDawg's picture

Negative. You have to be a criminal to get the free money. Gotta have Street creds haha

Sat, 11/19/2011 - 09:16 | Link to Comment Youri Carma
Youri Carma's picture

$600 million still missing in MF Global books

“$600 million is still missing at MF and might never be recovered.”

Sat, 11/19/2011 - 09:27 | Link to Comment sabra1
sabra1's picture

OT:

Spaniards may hand the biggest majority in three decades to opposition People’s Party leader Mariano Rajoy as polls suggest Europe’s debt crisis will push a fifth government from power.

Rajoy will win as many as 198 of the 350 seats in Parliament in tomorrow’s federal elections, the largest majority any Spanish government has secured since 1982, polls show. Set to inherit a 23 percent jobless rate and the highest financing costs since Spain joined the euro, Rajoy has pledged to deepen spending cuts and overhaul the economy after a four-year downturn.

Spaniards already bearing wage cuts and frozen pensions are due for a further squeeze on spending in exchange for Rajoy’s pledge to create jobs.

----------------------------------------------------------------------------------------------------------------------------------------------------------

why do people keep voting for the same crap, over and over again? i guess ass raping, is now enjoyed by all, and a part of everyday life!

WAKE UP PEOPLE!!!!!! 

Sat, 11/19/2011 - 09:36 | Link to Comment spankfish
spankfish's picture

Some how all this makes "Jersey Shore" seem so real.

Sat, 11/19/2011 - 09:47 | Link to Comment rambler6421
rambler6421's picture

End game bitchez.

 

libertarian86.blogspot.com

Sat, 11/19/2011 - 09:59 | Link to Comment evolutionx
evolutionx's picture

The Great Global Bank Robbery

When it comes to White-Collar Crime and Control Fraud, the economist William K. Black is surely the leading expert to ask. In an exclusive and  comprehensive interview in two parts, he answers questions related to major causes for the financial / economic crisis, the SEC charges against Goldman Sachs and the importance of drug money for the survival of the international banking system in our times. PART ONE: THE BUBBLE & HERR HENKEL
http://www.mmnews.de/index.php/english-news/5378-the-great-global-bank-robbery-part-1
Sat, 11/19/2011 - 10:39 | Link to Comment samsara
samsara's picture

"and the importance of drug money for the survival of the international banking system in our times."

The unregistered input flows of billions of dollars of drug money thru the back door to be laundried is what they are talking about.   Cathrine Austin Fitts has written extensively about this.      Narcodollars for Beginners part 1 Narcodollars for Beginners part 2 Narcodollars for Beginners part 3   Why do you think we have drug laws?  To make sure that the money is undocumented and goes right to the banks.     Why do you think Ron Paul wants to make drugs legal?  Because he knows that it would kill the banks.....
Sat, 11/19/2011 - 12:48 | Link to Comment blindman
blindman's picture

from link..
" Mr. Black, you are such a white-collar criminologist. Can you describe for us these “certain patterns of behaviour, which are relatively standard in criminal financial activity” and explain why they occurred?

The fuller question is why we have recurrent, intensifying crises in so many nations. The principal cause is epidemics of “control fraud.” “Control frauds” are seemingly legitimate entities controlled by persons that use them as a fraud “weapon.” (The person that controls the firm is typically the CEO, so that term is used in this article.) A single control fraud can cause greater losses than all other forms of property crime combined. Neo-classical economic theory, methodology, and praxis is optimizing criminogenic environments that hyper-inflate financial bubbles and produce recurrent, intensifying financial crises. Financial control frauds’ “weapon of choice” is accounting. Neo-classical theory, which dominates law & economics, is criminogenic because it assumes that control fraud cannot exist while recommending legal policies that optimize an industry for control fraud. Its hostility to regulation, endorsement of opaque assets that lack readily verifiable market values, and support for executive compensation that creates perverse incentives to engage in accounting control fraud and optimizes fraudulent CEOs’ ability to convert firm assets to the CEO’s personal benefit have created a nearly perfect crime. " ..
..

Sat, 11/19/2011 - 10:03 | Link to Comment f16hoser
f16hoser's picture

Who's Joe Biden? That guy is a big fat ZERO! I'm sure Biden took some money from Corzine! Hang 'em.

Sat, 11/19/2011 - 11:49 | Link to Comment blindman
blindman's picture

joe bin biden, the godfather of credit card usury and bankruptcy
reform. ( screw the salt of the earth ). call him "mas-sa joe".
...
http://www.huffingtonpost.com/jackson-williams/joe-biden-true-friend-of_...
Jackson Williams.
Posted: August 23, 2008 02:21 AM
.

Joe Biden: No True Friend of Working Men and Women
"For the record, Biden's home state holds the incorporation papers of large credit card and financial services companies. He obviously knows how his bread is buttered in Delaware, which means a "profile in courage" by 'ol Joe on the bankruptcy bill was out of the question. " ....
.
Credit cards and the gentleman from Delaware

Connie Prater | August 25, 2008
"Well, the waiting is finally over. Presumptive Democratic presidential nominee Barack Obama has named Sen. Joseph Biden his vice presidential running mate. Both will make their best arguments this week during the Democratic National Convention in Denver for why the Obama-Biden team should lead us through the next four years.

I have to admit that when I heard it was Biden who got the nod for VP running mate and that he was a long-time Delaware senator, I couldn't help but wonder where the Obama-Biden ticket would stand on credit card industry reform." ...

.
comment: the bush criminals stole so much public money and called
it national security and reform that when the obama team took over
the bar had been raised for stealing into the trillions. it takes
exceptional imagination to pull this off, more imagination than the
general public is capable of supplying, this is how i know that it
is coming down. the "money" system itself is the real problem, everything
else is just a symptom of the underlying incurable disease.
see this.
Jim Rickards
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/11/19_...

Sat, 11/19/2011 - 12:20 | Link to Comment blindman
blindman's picture

here the link.
Credit cards and the gentleman from Delaware
Connie Prater | August 25, 2008
http://blogs.creditcards.com/2008/08/credit-cards-joe-biden.php
.
"Strange bedfellows?
Obama came out months ago in support of credit card reform in the form of a five-star credit card rating system and a Bill of Rights for credit cardholders. He supports bans on unilateral changes to credit card agreements, interest on fees, universal default and retroactive application of interest rate hikes to credit card balances. Obama also supports bankruptcy law reforms and capping payday loan interest rates.

Biden was first elected to the Senate in 1971 and no doubt has spent more than three decades getting financial support from the banking interests that call Delaware their home.

According to the New York Times, Biden was seen as so close to MBNA, the credit card company that was purchased by Bank of America, that he was referred to as the "senator from MBNA." Instead of the standard senate designation (D-Delaware), he was (D-MBNA).

The Times notes that Biden's son Hunter was actually employed by MBNA and that the senator had close ties to MBNA executives: "Employees of MBNA Corporation had heavily contributed to Mr. Biden, pouring more than $214,000 into his campaign coffers going back to 1989, making the company his single biggest supporter, according to the Center for Responsive Politics," according to the Times.

Biden supported passage of the 2005 Bankruptcy Abuse Reduction Act while Obama voted against the measure. The banking industry lobbied heavily for passage. But consumer advocates have criticized the law because it has meant financially distressed consumers must wait longer and go through more steps before they can seek protection from their creditors.

Ripples already starting
Obama is already getting flack from the Biden-MBNA connection. According to a Sunday Times article, Obama aides are spending time defending work by Biden's son, a lawyer and lobbyist, for MBNA.

It makes you wonder how the conversation between Biden and Obama went regarding the credit card reform issue -- or if they discussed it at all. On paper at least, it seems the two are on opposite poles. How will Biden carry the credit card reform torch for the ticket? Or will the torch grow a little dimmer with Biden's influence?

Linda Sherry, national priorities director for Consumer Action, the San Francisco-based consumer advocacy group, writes:

"I think it is a very good question. Biden, coming from Delaware, is obviously very interested in the economy in his home state, and credit card companies are prominent employers and taxpayers there. But I don't think the answer is so easy. We haven't really seen a vote on credit card issues in recent years in the Senate, so it's difficult to say how Biden would stand. We can look to his votes on bankruptcy reform and limiting class actions as a pointer, perhaps. From a consumer advocacy standpoint, he seems to have a subtle bias in favor of the industry.

"I still think Obama will support credit card reform, despite all of this. But even though credit card reform is a pressing agenda item for advocates and many consumers, I am not sure it is going to be the top item on his list."

Chi Chi Wu, staff attorney for the Boston-based National Consumer Law Center, adds this:

"While some might think about what legislation would be on the agenda of an Obama-Biden administration, one of the most critical roles it would have is its selection of appointees for the regulators that govern the credit card industry, such as the Federal Reserve Board and Office of Comptroller of Currency.

"The Fed was the agency that in May 2008 issued a strong credit card protection proposal. The OCC supervises national banks -- many of the major credit card companies are national banks. Depending on the appointees, protections could be strengthened -- or rolled back."

See related: Biden part 2: From a banking state, but it didn't pay off, 3 presidential candidates; 2 credit card reform plans

Sat, 11/19/2011 - 10:06 | Link to Comment sabra1
sabra1's picture
Comtel Air to passengers: Pay extra or we don't fly

Comtel Air flight, at a refueling stop in Vienna en route to England, demands passengers pay an extra $31,000 for fuel. Comtel Air insists it's not insolvent.

 

 

Hundreds of passengers traveling from India to Britain were stranded for six hours in Vienna when their Comtel Air flight stopped for fuel on Tuesday. The charter service asked them to kick in more than 20,000 pounds ($31,000) to fund the rest of the flight to Birmingham, England.

 

Sat, 11/19/2011 - 10:25 | Link to Comment Dr. Gonzo
Dr. Gonzo's picture

Wow. That's an embarrasing amount of public dick sucking Biden was doing to Corzine. Bet he regrets that now. but then Biden always was a clueless worthless fuck who never knew anything well except cronyism and getting re-elected by sucking cock. His ability level is on par with a Rick Perry or a Herman Cain. A true American Politician.

Sat, 11/19/2011 - 11:18 | Link to Comment i-dog
i-dog's picture

That's just Joe Biden, Knight of Malta, protecting one of his own 'brothers': Jon Corzine, Jesuit. Totally expected.

Sat, 11/19/2011 - 10:32 | Link to Comment Setarcos
Setarcos's picture

Tell you what, I am GLAD that I cannot fully get my head around "Financialism"; y'know this monetized figment of the imagination that got dumped on the world by banksters since circa 1980, before anyone had really figured-out what "Capitalism" really was ... though there was broad agreement that tangible goods and services got produced somehow, by contrast with credit default swaps and a myriad other "ghost assets" - a term I just got from GEAB:  http://www.globalresearch.ca/index.php?context=va&aid=27707

Well according to GEAB - which I always find to be an "oasis of sanity" - $15.000 billion in ghost assets have gone up in smoke since last July (but read yourself).

A somewhat down to earth ghost asset is "good will", such that a bank can have it "on the books" and leverage the book-entry X10, or whatever, to create money/loans and thus charge interest as the sole source of income (and profit) for the bank, which produces nothing tangible.  (And "good will" can disappear in a flash, with loss of confidence/faith and a consequent run on a bank.)

Head spinning?  Good.  It should be because it is all a Ponzi scheme that only psychopaths (the insane) can operate.

Madoff, by name and nature, is/was just a minnow in an ocean of the 0.01% of those insane enough to imagine that they can rule the entire world ... and who are doing that right now.

Contradiction?  Paradox?  How can 0.01% of humanity comprize an 'ocean' amongst the "seas of humanity"?

Well David Hume reckoned that if a paradox is not involved, then a problem is not worth considering.

The answer to this one is contained in the psychopathic personality, which has no conscience and which can be very charming:  http://www.youtube.com/watch?v=MgGyvxqYSbE  so has an overwhelming influence, via politicians and owners of the MSM.  That has a 'tsunami effect', e.g. by controlling the mass media and fomenting wars

If you cannot be bothered to follow my links, then   ... ?

I hope that CD might read this though, because we are on a similar page and also Will perhaps.

To come back to my starting point: I am glad that I only managed to peek inside the Pandoras Box of insanity and have never got sucked in.

If 'success' comprizes being being like the Clintons, the Bush family, Obama, Soros and more shadowy PTB, then count me out.

Fortunately I have no debt and have no assets, nor liabilities of any kind; so I am free to think/say/write whatever I choose, constrained only by my own conscience and mortality ... which has precluded me from ever really becoming a significant part of an increasingly insane world, e.g. 'ghost' trillions of dollars many times greater than any realistic dollar-measure of global productivity in tangibles.

Rant over, but I hope it contains useful elements.

 

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