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Full FHFA Statement Disclosing Suits Against 17 Banks (Including Such Dead Man Walking As SocGen)

Tyler Durden's picture


FHFA goes hog wild and potentially full retard in suing everyone, or specifically 17 global banks, up to an including such dead men walking as Barclays, RBS and SocGen. Oddly such crony capitalist favorites as Wells Fargo are suspiciously absent: we wonder what the cost of that particular Eureka moment was to the interested party. Either way, come Monday, this will get interesting when already scarce liquidity goes... poof. Full statement is below, while the link to all the individual law suits is here.



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Fri, 09/02/2011 - 16:50 | 1627847 nope-1004
nope-1004's picture

Timmy will pull some stupid ass stunt in an attempt to quash these.

 And we can all thank Blythe Masters for being one of the main drivers behind the creation of the derivatives market.


Fri, 09/02/2011 - 16:50 | 1627867 Herman Strandsc...
Herman Strandschnecke's picture

Putting the 'poof' into liquidity.

Fri, 09/02/2011 - 17:49 | 1628169 MarketTruth
MarketTruth's picture

QE3 guaranteed as QE 1 and QE2 was how The Bernak was able to give free money to the banksters. QE3 coming soon, so nice gold and silver play here (buy).

Fri, 09/02/2011 - 18:58 | 1628381 Badabing
Badabing's picture

MSM has not been spining the bank lawsuits like they spun the USA doungrade to AA+

Doesn't the banks own the MSM?

I smell a spat between TPTB

Sat, 09/03/2011 - 00:04 | 1628918 StychoKiller
StychoKiller's picture

Hmm, WHY ISN'T Wells Fargo on that list?

Sat, 09/03/2011 - 13:41 | 1629666 Bring the Gold
Bring the Gold's picture

Good point. My take on this is that some sacrificial lambs of a very hated sort are about to be offered up to people to quell some of the rage. Have Blankfein do the perp walk and we can all pretend that there is justice in this country while the FED quietly does it's thing, the Patriot act continues to exist, molestation by TSA is still a daily occurrence. Just offer up a few of the big boys (who lets face it are just errand boys for the REAL powers) and the masses will be quieted for awhile.

It's sort of like the banking version of replacing the hated white man Bush (who is definitely worthy of hate!) with the friendly well spoken black man affirming we still have a Democracy. You chumps buying that shit? Please pay no attention to his voting record around retroactive immunity for the telecoms...

Yeah that's what I think is going on the magician is getting nervous we might start paying attention to the important hand, better do something REALLY eye catching with the front man hand. Also, if they take out some of the banks it would be a perfect scapegoat for a deeper crash that leads to oh, I don't know, global monetary integration and coincident global government? It was the naughty Junior Varsity bankers! Now let us all follow the lead of the BIS and G-20.

Fri, 09/02/2011 - 17:01 | 1627922 Snidley Whipsnae
Snidley Whipsnae's picture

Kudos to Bruce K for sniffing out the FHFA ...

The squeaking wheels get louder by the day... soon we will see a little smoke from the wheel bearings... and when the first wheel falls off hell will be coming to breakfast.

All we can do is try to be prepared as best we each can... good luck.

Fri, 09/02/2011 - 17:03 | 1627934 DoChenRollingBearing
DoChenRollingBearing's picture

Ouch, I can feel each one, oh woe are we...!

Fri, 09/02/2011 - 17:16 | 1628002 Snidley Whipsnae
Snidley Whipsnae's picture

DCRB... I had your biz in mind when I posted above... New spindles and axles required... just wheel bearings will not do... :)

Fri, 09/02/2011 - 18:06 | 1628246 DoChenRollingBearing
DoChenRollingBearing's picture

Hah!  Just what I suspected!


I just put up a new article at my blog re the Debt, Gold vs. Platinum and the Banks being sued.  Anyone curious?  Send me a gmail at my name and assure me you will behave and I will send the link to my bog.  I ask this as I publish under my own name.  Over 200 of my readers came from ZH.

Fri, 09/02/2011 - 17:36 | 1628112 BoNeSxxx
BoNeSxxx's picture

US Taxpayer bails out the banks... Then Sues the banks to recover... the banks fail and the FDIC (read Taxpayer) bails out the er, ah Taxpayer...


Fri, 09/02/2011 - 17:39 | 1628125 steelhead23
steelhead23's picture

Actually, I don't think so.  If Treasury didn't want this to happen, Geithner could have fired DeMarco prior to the filings.  No, there is some kind of game going on here, but we don't know what it is yet.  If DeMarco did this against Geithner's will and he doesn't fire him, then we must conclude that the political price is too high.  I happen to think that DeMarco is a tougher cookie than the admin. thought, else they wouldn't have given him the job.  The cynic in me wonders if this is a ploy by Obama to test the public's mettle.  If the public demonstrates strong support for this action, maybe, just maybe, Obama will toss the banksters overboard.

Fri, 09/02/2011 - 17:53 | 1628192 BoNeSxxx
BoNeSxxx's picture

Thoughtful and original concept... I like it.

Pure fairytale but I like it.


Obama tossing the bankers would require HIM to have the ability to think thoughtfully and originally.  The bankers write all his speeches... he just reads them and tries to look like a regular joe.  Put more crudely, they have their hands far enough up his backside to make his mouth move.

Even if what you say is true, I lay odds on success at 1:1,000,000 even WITH strong public support.  Kennedy tried it and look where it got him.

Fri, 09/02/2011 - 19:09 | 1628401 iDealMeat
iDealMeat's picture

It may sway some. But the lack of Wells Fargo on the list and the Warren Buffett connection won't go unnoticed..


This election cycle is going to be the dirtiest / shittiest / most fun to sit back and watch..

pass the popcorn.

Sat, 09/03/2011 - 10:03 | 1629351 SamuelMaverick
SamuelMaverick's picture

Elliot Spitzer tried it in New York and look where it got him.

Sat, 09/03/2011 - 15:42 | 1629866 Bring the Gold
Bring the Gold's picture

People forget that even Jamie Dimon and Lloyd Blankfein are but mere Junior Varsity bench players compared to those who OWN JPM and GS let alone the holders of FED and BOE stock. That's the real power and they have long shown a willingness to throw a few of those guys to the angry horde to placate the horde whilst they operate in the shadows.

No doubt if any big guy went to jail he would need to think long and hard about opening his mouth lest he get sent a message or have a lethal accident just ask Madoff:

Yeah, I know there were later denials, but I think Bernie was sent a message and it was STFU before you have something really bad happen to you or your family.

Fri, 09/02/2011 - 21:17 | 1628666 HardwoodAg
HardwoodAg's picture

Chromer..been wunnerin how DeMarco got off the resevation without a pass from tiny turbo meself..Got me a gold foiled helmet to proved I'm nuts.

Tight Lines!

Fri, 09/02/2011 - 19:04 | 1628399 sgt_doom
sgt_doom's picture

Probably, but then I never thought they would even make the appearance of acting upon the FCIC* report and the hard work by Phil Angelides and Brooksley Born!

Sure, I may be the ONLY American outside of the DOJ who has actually read the entire report, and while I was aware of the mechanics of the entire thing long ago, it WAS NEWS to me about Clayton Holdings, that forensics analysis firm the banksters hired to audit their faulty loans --- and when the Clayton people explained that this one was 1/2 bad, and that one was 1/3 bad, etc, etc., the banksters ignored them and went ahead with their bundling and tranching anyhow. (Criminal intent to defraud)

And when Clayton Holdings offered this data (free of charge) to S&P, Moody's and Fitch --- the three primo ratings giants told them they didn't want to know about it. (Colluding with intent to defraud)

Yes, this is probably just a political gambit, but it would be nice to dream of at least one honest person at the DOJ.....

*FCIC: Financial Crises Inquiry Commission

Fri, 09/02/2011 - 16:48 | 1627854 Azannoth
Azannoth's picture

I guess it's time to start a new war than, Iran and/or Syria looks ready for picking

Fri, 09/02/2011 - 17:17 | 1628012 cossack55
cossack55's picture

Save fuel, do them both and throw in Yemen and Somalia for shits and giggles.

Fri, 09/02/2011 - 17:53 | 1628191 Ahmeexnal
Ahmeexnal's picture

The UN and the Red Cross (both Rothschild subsidiaries) have already taken care of Somalia.

Fri, 09/02/2011 - 16:48 | 1627857 DoChenRollingBearing
DoChenRollingBearing's picture

Like I said on a nearby thread, I am taking out $500 / day from the ATM this weekend!

Fri, 09/02/2011 - 16:52 | 1627878 Comay Mierda
Comay Mierda's picture

people at work looked at me wierd a couple weeks ago when i filled out the form to stop having my checks direct deposited to my bac acct


i guess they'll be filling out there own forms on tuesday

Fri, 09/02/2011 - 17:44 | 1628147 Arkadaba
Arkadaba's picture

'i' before 'e' except after 'c' .... forget all that followed but 'weird" was one of them :)

Fri, 09/02/2011 - 17:54 | 1628199 Ahmeexnal
Ahmeexnal's picture

And they will soon be filling their foodstamps forms too.

Fri, 09/02/2011 - 16:56 | 1627892 tekhneek
tekhneek's picture

Go into the branch and take it all out tomorrow. I'm doing the same.

WOO! BUY SILVER CRASH JPM... err wait...

Fri, 09/02/2011 - 17:02 | 1627924 Shell Game
Shell Game's picture

Same here, DCRB.  I've got the bare minimum in the ol' community credit union.  Not earning interest, so may as well keep it handy for he regular coin shop excursions..  ;)

Fri, 09/02/2011 - 17:09 | 1627947 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1880

Some 20 years ago I got my first ATM card.  The limit I could take out was $300.  That was often pretty close to being enough to buy an oz of gold.

Now I can take out $500 a pop.  Takes 4 ATM visits to get enough cash for an oz.

Also, there is no opportunity cost to holding long green, since they pay essentially NO interest on our savings...

Fri, 09/02/2011 - 17:24 | 1628050 Shell Game
Shell Game's picture

I made a phone call to BECU HQ and now they 'graciously allow' me to pull out $1000/day at the ATM.  Nearly brings a tear to my eye, their kindness.  Shall I kiss their feet...?  [sardonic lolz]

Fri, 09/02/2011 - 18:14 | 1628267 destiny
destiny's picture


Fri, 09/02/2011 - 22:12 | 1628694 Anonymouse
Anonymouse's picture

At least, there is no opportunity cost until this idea is resurrected

"Cash and the 'Carry Tax' Declan McCullagh  10.27.99

WASHINGTON -- US currency should include tracking devices that let the government tax private possession of dollar bills, a Federal Reserve official says..."


Apparently, such an idea did not completely die in 1999. See this 2009 FT blog post very seriously discussing the need for, and practical issues related to, negative nominal interest rates (read: tax on cash).

"....Taxing currency may be awkward and intrusive, but abolishing currency is not just easy (just do it) but also has considerable advantages as a blow against criminality and terrorism....

To get the bearer to come forward to pay the negative interest [on cash holdings] we can either rely on honesty and a sense of patriotic duty, or we can impose sanctions for non-compliance.  I am afraid penalties for non-compliance (fines, a day in the stocks) would be required to make negative interest on currency work.  This would require random checks etc...."

The article carries an implicit (and sometimes not so implicit) assumption that people carrying (read: hoarding) cash are suspect.  Mentioned criminal and terrorist activities.

This article references a 2009 NBER presentation,

It has a chart entitled "If currency creates the zero lower bound, what can be done about it?" with such ideas as

- "Abolish currency (first?best solution!)

- Replace currency with universal accounts with the central bank, possibly administered through commercial banks, post offices etc. Could pay positive or negative interest

- Tax currency and mark (stamp) it (Gesell, Irving Fisher). Like clipping coupons"

and a later chart proposes

- All currency notes ending in that integer, printed in that year or earlier, lose their legal tender status and are no longer redeemable/exchangeable at central bank for anything else

- "Problem: value of fiat money is what people think it is" (!!!!!). "Legal tender status not necessary. Threat of confiscation may still be necessary"


I need to read the NBER presentation in more depth, as aspects sound very similar to what has begun.  Not sure if that was predictive or discussing the wheels in motion at that time.  If predictive, very scary, as it implies further steps in the future.

Fri, 09/02/2011 - 17:10 | 1627959 Seasmoke
Seasmoke's picture

dont spend that $1500 all at once

Fri, 09/02/2011 - 18:09 | 1628258 DoChenRollingBearing
DoChenRollingBearing's picture

How about $2000 for a Gold Eagle?

Fri, 09/02/2011 - 16:49 | 1627859 Cojones
Cojones's picture

QE 3 would be pretty pointless as well at this time.

Fri, 09/02/2011 - 17:00 | 1627866 Vincent Vega
Vincent Vega's picture

Does this mean I don't have to pay my mortgage any more? <sarc>

Fri, 09/02/2011 - 17:19 | 1628026 cossack55
cossack55's picture

You're still paying?

Fri, 09/02/2011 - 16:52 | 1627874 caerus
caerus's picture

sue everybody!

Fri, 09/02/2011 - 16:55 | 1627890 Gene Parmesan
Gene Parmesan's picture

This smacks of posturing by the administration. "Hey look, we're doing something about those evil banks!" Right. I'll believe it when I see a judgment against them that isn't paid with taxpayers $s.

Fri, 09/02/2011 - 17:00 | 1627914 mynhair
mynhair's picture


Fri, 09/02/2011 - 17:10 | 1627957 Snidley Whipsnae
Snidley Whipsnae's picture

GP... Here you go... The banksters are robbing the world blind... Time for Obummer to grow a pair and throw them under the bus.

"Nassim Taleb: The American Economy Will Transfer $5 Trillion To Banker Pay And Bonuses Over The Next 10 Years"

Nassim Taleb

"For the American economy – and for many other developed economies – the elephant in the room is the amount of money paid to bankers over the last five years. In the United States, the sum stands at an astounding $2.2 trillion.


Extrapolating over the coming decade, the numbers would approach $5 trillion, an amount vastly larger than what both President Barack Obama’s administration and his Republican opponents seem willing to cut from further government deficits.

That $5 trillion dollars is not money invested in building roads, schools, and other long-term projects, but is directly transferred from the American economy to the personal accounts of bank executives and employees.

Such transfers represent as cunning a tax on everyone else as one can imagine."

Fri, 09/02/2011 - 17:26 | 1628064 Gene Parmesan
Gene Parmesan's picture

Sure, obviously. What isn't obvious to me is that the .gov has all of a sudden sprouted a pair and is going to bite the hand that feeds them hard enough to draw blood.

Fri, 09/02/2011 - 21:30 | 1628684 zhandax
zhandax's picture

Its not at all obvious until you read this piece from Bruce Krasting...

This is the first step.  The second is for obummer to announce a settlement where the banks refi everyone's mortgage at a low rate as punishment.  Except it doesn't really hurt that much and by paying off all those pre-2008 mortgages and writing new ones, it gets the banks out of a big chunk their MERS risk.  It also lets obummer put an extra hundred or two each month in the homeowner's pockets in front of an election and gives banana ben a trillion more bucks to throw at the bankers for their trouble.  I would really love to know who thought of this; it is simply brilliant.

Fri, 09/02/2011 - 23:53 | 1628906 SheHunter
SheHunter's picture

Yeah but you turn away from one pet dog and begin lavishing your attention on the other...makes the ignored doggie mad enough to bite.  The Banksters' $$ donations and under-the-table back-pats are more and more going to the GOP.  Much to O'B's displeasure me-thinks.

Fri, 09/02/2011 - 16:58 | 1627904 Manzilla
Manzilla's picture

Can I sue you?

Sue me?

Sue everybody!

Fri, 09/02/2011 - 17:03 | 1627930 caerus
caerus's picture

maybe i could sue for punitive damages...that you're giving me...

Fri, 09/02/2011 - 17:17 | 1628014 spanish inquisition
spanish inquisition's picture

+1 Jerky Boys reference

here is the bit

Fri, 09/02/2011 - 17:17 | 1628016 Homey Da Clown
Homey Da Clown's picture

That I'm giving you? I'm a lawyer whet did I do to you?


Punitive damages


So you want to sue me? I'm a lawyer...


Sue everybody?


Fri, 09/02/2011 - 17:47 | 1628132 Stock-Paper-Silver
Stock-Paper-Silver's picture


Fri, 09/02/2011 - 17:47 | 1628160 jakeman
jakeman's picture

I was drinking, and I lost control of the bike.

Sat, 09/03/2011 - 23:13 | 1630615 smlbizman
smlbizman's picture shoes fell off......

Fri, 09/02/2011 - 16:53 | 1627881 Herman Strandsc...
Herman Strandschnecke's picture

I'm sure HM Government (us plebs that is) will stand behind our bankers in the UK.

Fri, 09/02/2011 - 16:55 | 1627886 Cdad
Cdad's picture

I can see you are really upset about this, FHFA.  I honestly think you ought to sit down calmly, take a stress pill and think things over.

I can feel it.  I can feel it....

Fri, 09/02/2011 - 16:57 | 1627894 Manzilla
Manzilla's picture

They've really opened up a shit storm! Finally! Take these corrupt bitches down. All of them.

Fri, 09/02/2011 - 16:57 | 1627895 Homey Da Clown
Homey Da Clown's picture

So glad I held onto  my short positions throught this phony ramp up. Obama is obsessed with destroying capitalism.  Doesn;t this idiot realize if you SUE banks then they won't LEND any money?


Oh wait... that's the point.

Fri, 09/02/2011 - 16:59 | 1627911 Manzilla
Manzilla's picture

I doubt he's trying to destroy capitalism. He ain't smart enough.

Fri, 09/02/2011 - 17:11 | 1627960 Gene Parmesan
Gene Parmesan's picture

I don't have anything to say about his intelligence, but read what little is available about the man's background and reconsider the first half of your post.

Fri, 09/02/2011 - 17:15 | 1627989 tawdzilla
tawdzilla's picture

"I doubt he's trying to destroy capitalism."

Then why did he teach Alinsky classes at Columbia?

Fri, 09/02/2011 - 16:57 | 1627897 JW n FL
JW n FL's picture


America! Fuck!! Yeah!!!


$16 Trillion Dollars???




Wall Street Aristocracy Got $1.2 Trillion in Fed’s Secret Loans




SEC Covering Up Wall Street Crimes?




How about the $2.5 Trillion in Social Security Bailouts??


Fri, 09/02/2011 - 16:58 | 1627902 JW n FL
JW n FL's picture



No Worries!! Washington DC is putting together an Austerity Plan!! Right Now!


Subject: Taking hostages in a hurricane?

Dear Friend,

The waters have just begun to recede in Vermont. New Jersey is still reeling. North Carolina is just starting to pick up the pieces. But Republican House Majority Leader Eric Cantor is already taking Hurricane Irene's victims hostage.

Truly, Mr. Cantor has no shame. It's outrageous to take advantage of the urgent needs of hurricane survivors in order to advance his radical crusade to cut Medicare, Medicaid and Social Security. But that's exactly what one of the top Republicans in Congressional leadership is doing with his refusal to allocate money to disaster relief unless Congress first offsets that money with cuts to vital government programs.

I just signed a petition telling Eric Cantor to release the hostages and stop blocking funds for urgently needed disaster relief. You should sign the petition too. Click below to take action.


Fri, 09/02/2011 - 17:22 | 1628040 cossack55
cossack55's picture

No thanks.

Fri, 09/02/2011 - 17:36 | 1628108 JW n FL
JW n FL's picture

worth every minute!

Thanks CD!!

CD went corporate on us.. he only posts his blog stuff.. not more interaction with the wee lil people! LOL!!

Fri, 09/02/2011 - 16:58 | 1627900 oogs66
oogs66's picture

17 banks and 17 eurozone members - just seems weird

Fri, 09/02/2011 - 17:20 | 1628031 Homey Da Clown
Homey Da Clown's picture

Next Obama gonna sue dem 57 states and all them angry white folk that hold onto their guns and bibles.

Sat, 09/03/2011 - 20:42 | 1630415 KingdomKum
KingdomKum's picture

and don't forget to sue the "corpsmen" also !

Sat, 09/03/2011 - 20:42 | 1630416 KingdomKum
KingdomKum's picture

and don't forget to sue the "corpsmen" also !

Fri, 09/02/2011 - 16:58 | 1627903 MrPike
MrPike's picture

They need an excuse for an even bigger QE3, that debt ist going to monetize itself...

Fri, 09/02/2011 - 16:58 | 1627905 jstalin
jstalin's picture

Lots of individuals also listed as defendants.

Fri, 09/02/2011 - 17:05 | 1627936 Seasmoke
Seasmoke's picture

guess thats why Blankfiend lawyered up last week......

Fri, 09/02/2011 - 17:12 | 1627972 Comay Mierda
Comay Mierda's picture

im sure the chief ball licker at government sacks will come out ok

Fri, 09/02/2011 - 17:14 | 1627984 Whoa Dammit
Whoa Dammit's picture

He's not named as a defendant in the Goldman suit. :-(

Fri, 09/02/2011 - 17:00 | 1627915 Bay Area Guy
Bay Area Guy's picture

OK, so let me get this straight.  On the one hand, the Fed and the Federal government have spent literally trillions to bail out the banks.  Now, the FHFA, a branch of the Federal government, is suing these same banks.  I may not be the brightest bulb around, but isn't that rather strange?  Maybe that's why the banks aren't loaning any money.  Perhaps they figure they'll pay the judgments from this lawsuit (if, in fact it goes anywhere) with funds they got from the Feds.

Fri, 09/02/2011 - 17:03 | 1627921 Seasmoke
Seasmoke's picture

this looks like good news for my fraudulent Bank of America Mortgage and Bank of America just need Wells Fargo on this list for the Triple play

Fri, 09/02/2011 - 17:01 | 1627923 DoChenRollingBearing
DoChenRollingBearing's picture

How do WE sue Fannie and Freddie to get all of our tax money back?


Fri, 09/02/2011 - 17:02 | 1627927 bluehorsesandal
bluehorsesandal's picture

This is literally what "...shit hits the fan" means


Sat, 09/03/2011 - 04:24 | 1629147 stacking12321
stacking12321's picture

dont use the word "literally" if you don't understand what it means.

Fri, 09/02/2011 - 17:03 | 1627929 zorba THE GREEK
zorba THE GREEK's picture

FHFA probably has to sue all banks including U.S. banks to make it look legit, but I believe

their target is really the E.U. banks. By putting pressure on E.U. banks and bringing their

stock prices down, they expedite the need for the ECB to bail them out, which could only

be done at this point through monetization. When the E.U. starts printing money, then the

Fed can start outright QE3 without tanking the dollar. What we need now is a major crisis

in order to pump trillions into our weak economy without hitting a wall of opposition. 

We know a crisis is brewing in Europe, so why not help it along.

Fri, 09/02/2011 - 18:05 | 1628238 Yes_Questions
Yes_Questions's picture



Calling all ETs!!

Krugman may be squeezing himself right now.

Fri, 09/02/2011 - 17:03 | 1627931 lovesmoney
lovesmoney's picture

how come Wells Fargo is not on the list?

Fri, 09/02/2011 - 18:33 | 1628317 Kali
Kali's picture

because Uncle Warren was bouncing lil Barry on his knee?

Fri, 09/02/2011 - 17:03 | 1627932 mynhair
mynhair's picture

Fri, 09/02/2011 - 17:03 | 1627933 papaswamp
papaswamp's picture

Damn it I read it wild hunting hog

Fri, 09/02/2011 - 17:06 | 1627938 THECOMINGDEPRESSION

Let me get this straight...So the government will have to bail out the 17 banks after they sue them..what has this world come to?

Fri, 09/02/2011 - 17:06 | 1627940 citta vritti
citta vritti's picture

Bring me the head of Angelo Mozillo. 

Fri, 09/02/2011 - 17:08 | 1627942 Space Potato
Space Potato's picture

So what happens after our government takes the whole global financial system down? Oh yeah, Ben for Ruler of the Universe!

Fri, 09/02/2011 - 17:06 | 1627945 RobotTrader
RobotTrader's picture



With Treasury Yields virtually crashing on the long end today.

They should double the debt ceiling and just announce a complete 100% takeover of the entire mortgage industry, and wipe all these bad loans clean off the banks's books.

With financing at near zero cost, the net impact to the country's debt service will be nominal.

Fri, 09/02/2011 - 17:13 | 1627975 DoChenRollingBearing
DoChenRollingBearing's picture

SOMETHING has to be wrong with that...

But, I cannot yet refute your proposal...

Fri, 09/02/2011 - 17:13 | 1627978 mynhair
mynhair's picture

Sorry you missed a beautiful TMV entry.

Fri, 09/02/2011 - 17:26 | 1628070 gatorontheloose
gatorontheloose's picture

fuck me i meant to buy sbnd all day and just forgot.  +5% afterhours. 

Fri, 09/02/2011 - 17:07 | 1627946 max2205
max2205's picture

How much did the fed give each of these guys?!

Fri, 09/02/2011 - 18:04 | 1628237 Arkadaba
Arkadaba's picture


Fri, 09/02/2011 - 17:09 | 1627952 eurusdog
eurusdog's picture

I don't understand why everyone is complaining about this. All I hear on ZH is complaint after complaint about "banksters" and the crooks GS, JPM and so on. Now that a govt agency is going after them, you all are taking out your money, and complaining about partisan tactics and the banks getting shut down. Will anything satisfy you? Other than more gold?

Fri, 09/02/2011 - 17:25 | 1628061 cossack55
cossack55's picture

More guillotines.

Fri, 09/02/2011 - 17:52 | 1628190 eurusdog
eurusdog's picture

That was funny, and I'll give you a green up arrow too!

Fri, 09/02/2011 - 17:56 | 1628209 greased up deaf guy
greased up deaf guy's picture

ublic-pay angings-hay

Sat, 09/03/2011 - 06:55 | 1629206 Bartanist
Bartanist's picture

There is this little issue called "TRUST". The government and bankers have lost the trust of the people. No one believes them and if they want to regain the trust of the people it will take a lot.

.... fool me once ... blah, blah, blah ...

Fri, 09/02/2011 - 17:10 | 1627956 Jerry Maguire
Jerry Maguire's picture

It means nothing. 

A bunch of bullshit for the lawyers to pad their resumes with.


Fri, 09/02/2011 - 17:11 | 1627961 RobD
RobD's picture

They will get a slap on the wrist, pay a few bil and in the fine print of the settlement you will see that all the fraudulent mortgage transfers will have been fixed. Nothing to see here.

Fri, 09/02/2011 - 17:11 | 1627962 nah
nah's picture

General Electric? what is this a list of fortune 500 companies that got more in tax subsidies than they posted as profits


since the 80s


Fri, 09/02/2011 - 17:12 | 1627971 RobotTrader
RobotTrader's picture


SPY dropped on only 200 million shares today, compared to 500 million and 700 million on the last two big drops.

I'm sure that the rally out of these lows is going to be spectacular.

Bob Brinker will surely chortle on this weekend about the "implied inflation rate of less than 1%".

Fri, 09/02/2011 - 17:15 | 1627997 mynhair
mynhair's picture

Hence my sympathy for you missing the TMV entry.  Do you ever trade?

Fri, 09/02/2011 - 17:12 | 1627973 lolmao500
lolmao500's picture

Black monday in Europe. You can be sure of that.

Fri, 09/02/2011 - 17:16 | 1628003 mynhair
mynhair's picture

Eurotards deserve it.  Might be good for USDHUF tho.

Fri, 09/02/2011 - 17:17 | 1628013 drswhaley
drswhaley's picture

Is there a second round?  Looks like they stopped at S.  What about Wells Fargo or the company it bought Wachovia?  Since they have Countrywide, do they have Washington Mutual?  What about Golden West?  This list seems incomplete.

Fri, 09/02/2011 - 17:18 | 1628017 lolmao500
lolmao500's picture

I think we can ready our ``JUMP YOU FUCKERS`` signs...

Fri, 09/02/2011 - 18:09 | 1628255 Yes_Questions
Yes_Questions's picture



My work depends on bank lending.  I have that photo on my office wall.

Have for Three Years.

Fri, 09/02/2011 - 17:22 | 1628038 Whoa Dammit
Whoa Dammit's picture

The .gov must be more broke than we imagined--FHFA is asking for jury trials = more money awarded.

Fri, 09/02/2011 - 17:24 | 1628053 Negro Primero
Negro Primero's picture


"In case it’s escaped your attention, with RBS involved in the suit, we’ve reached the point in the financial crisis where the US government is effectively suing the UK government."

Fri, 09/02/2011 - 17:28 | 1628060 pamriallc
pamriallc's picture

So it goes.... The "No American Left (without a house) Behind Program" was a great contributor to banks lending vs property of "dubios/relative value" and in order to deal with the volume, they largely computerized the process, and through Greenspan rates kept ratcheting lower, adding fuel to the fire.  There are so many contributing factors here that its hard to quantify.  CRA-programs whereby banks were in fact FORCED to lend to persons in their own community who otherwise called FOUL if denied credit and FNM/FRE effective GSE programs which (by Federal policy) encouraged loans to effectuate NINJA style programs.  The idea that the SAME GOVERNMENT will then go back in blame the same institutions for somehting that they were responsible for creating (much of) due to a littany of policy mistakes and gratuitous and selfish grandstanding for political favor among constituents..... the idea that now the same government would come back and try to bankrupt the same institutions goes well beyond blasphemy.

We have long said that the DEBT of the banks will be fine but that the EQUITY will be of dubious investment quality due to the "whipping boy" routine which would follow such an enormous increase in bank reserves after the spreads that these institutions have been able to enjoy under current interest rate conditions.  Simply put, the authorities would see the massive buildup of cash and then sue for it under the pretense that banks were ENTIRELY at fault for the mortgage mess, when in fact policy was more the problem.  Banks are currently stacking up huge reserves as a result of being leveraged 12:1 and collecting three points of spread....  30%+ annual book cash growth....  makes up for tons of bad debt..... and then there are the increased reserve requirements......  so the cash laying around is now extraordinarily significant.  Exoect this to be chewed up during the new process in which the same policymakers blame banks for human tendency to overextend themselves, and a government policy which effectuated more home ownership than any time in history, at which point a newbie couple out of college or even high school would have the opportunity to buy a house for $500,000.00 with basiclly zero down. 

Suck it Up II

That's not evil bankers....that's a system which was primed from many years of policy preconditions resulting in a boom and the bust that had to follow.  Expect BAC, C, WFC and JPM to muddle along and the authorities to attempt to extract cash (the government is in fact desperately in need of it) in which case the populist threat swells with a litany of suits, then ebbs a while before going away entirely over the next several years.  At some level, if I were a BAC or a WFC Chairman, I wold relish the thought of winning the majority of these suits.  At some point, the whole "bankster" argument becomes ridiculous and the system has been purged "enough" and the rally cry from the sock-puppets (politicians) in the audience becomes a joke.  Some people wiill not stop complaining until the whole system has collapsed.  Since that's not going to happen, we must deal with the imerfections, and work with a system that while imperfect.....every passing day confirms that the USA still has the best one in for those people lucky enough to be among the PIIGS.

Buy the bank bonds, preferred stock....and for real cowboys, buy the convertible preferred equity.  Common need not apply.

Solutions Delivered Daily:

Fri, 09/02/2011 - 17:28 | 1628075 cossack55
cossack55's picture

I'll keep betting on the "whole system collapse", thanks.

Fri, 09/02/2011 - 17:48 | 1628165 JW n FL
JW n FL's picture



Bro you should be buying into the markets at 11,400(ish) orrrrrr! shorting!! YEAH!! thats it! Shorting!!

Markets are on FIRE!!!


Fri, 09/02/2011 - 17:44 | 1628144 pazmaker
pazmaker's picture

I hope you donate some money to zerohedge for free advertisement of Pacific Asset Management.


Fri, 09/02/2011 - 17:41 | 1628118 Zero Govt
Zero Govt's picture

"FHFA goes hog wild and potentially full retard in suing everyone.."

Now is not the time for half retarded measures afterall so hell why not ?

PS. Can't get my ZH donation through on 2 attempts tonight... Reggie got his Subs' from me 2nd day of trying so bit perplexed.. will try to sort this early next week as you deserve a crate of Crystal (or Bud Lite, or Alcopops!)

Fri, 09/02/2011 - 17:41 | 1628136 glokk26L
glokk26L's picture

All I can say is, wow.

Reminds me of that Stephen King short story where there was an exdoctor who was shiprwrecked with 2 trunks of H he was smuggling to get his license "fixed" by somebody, breaks his leg, and since he's got no food, he starts eating.

Himself.  Starting with the leg he had to amputate at the calf, then going up further.

Wish I could remember the name of that story...

Fri, 09/02/2011 - 17:41 | 1628137 glokk26L
glokk26L's picture

All I can say is, wow.

Reminds me of that Stephen King short story where there was an exdoctor who was shiprwrecked with 2 trunks of H he was smuggling to get his license "fixed" by somebody, breaks his leg, and since he's got no food, he starts eating.

Himself.  Starting with the leg he had to amputate at the calf, then going up further.

Wish I could remember the name of that story...

Fri, 09/02/2011 - 17:52 | 1628189 Whoa Dammit
Whoa Dammit's picture

If these lawsuits are not settled, it will be the end of mark to myth because the FHFA is asking for recovery of monetary losses, including any dimiunition in value of the RMBS certificates.

Fri, 09/02/2011 - 18:06 | 1628245 Arkadaba
Arkadaba's picture


Fri, 09/02/2011 - 18:15 | 1628269 Negro Primero
Negro Primero's picture

Update (5:38pm, New York time): Bank of America released the following statement in response to the lawsuits:

“The GSEs have in their past public statements acknowledged that their losses in the mortgaged-backed securities market were due to the unprecedented downturn in housing prices and other economic factors, including sustained high unemployment. Also, they claimed to understand the risks inherent in investing in subprime securities and, in fact, continued to invest heavily in those securities even after their regulator told them they did not have the risk management capabilities to do so. Despite this, the GSEs are now seeking to hold other market participants responsible for their losses.”

Fri, 09/02/2011 - 18:20 | 1628290 Destinapp
Destinapp's picture

There is no way this will go to a jury trial. 

I can't wait to read the comments here when they "settle" for less than $5B!!

Prepare youself and don't get overly excited.

Obama is putting on this show to appease the voters.

Fri, 09/02/2011 - 18:37 | 1628328 californiagirl
californiagirl's picture

Where is the lawsuit against the PennyMac guys?! Kurland, Spector, etc.? Have you seen their logo?  It couldn't be more brazen and inappropriate.

Fri, 09/02/2011 - 19:11 | 1628378 Global Hunter
Global Hunter's picture

edit: my bank knocked down my daily withdrawal a few weeks ago from 1500 to 399 (effectively 380 from ATM) without telling me today my card didn't work it had "expired" luckily I took most of my cash out the last few weeks.  If I lose the last few hunge in there I won't cry, losers.

Fri, 09/02/2011 - 19:01 | 1628392 Jerry Maguire
Jerry Maguire's picture

The post has been updated.

Seriously, forget the hype on this one.  It's ridiculous.

Fri, 09/02/2011 - 19:11 | 1628414 LucyLulu
LucyLulu's picture

Take 'em all down until only one left standing.

Obama says we call the new bank Wells Fargo National Bank of USA

Fri, 09/02/2011 - 20:33 | 1628607 squidward
squidward's picture

So the Gov't just sued itself being the major shareholder of Ally bank.  

Nice, I wonder who will win?


From wikipedia:

"As of December 2010, 73.8% of Ally was owned by the United States Treasury, with the remainder divided between Cerberus Capital ManagementGeneral Motors, and other investors.[4]"

Fri, 09/02/2011 - 20:37 | 1628609 anonnn
anonnn's picture

Would not a Federal suit take precedence and disable  other parties' actions on similar targets?

Has FLFA experience in gumming-to-death legal matters?

Could be valuable services rendered?

FHFA is in prime position to render valuable services to interested persons [insulation from heat, i.e. crim liability] so that only corporate entities and their investors are liable for penalties [losses]. The crims skate to their tanning salon and Riviera penthouse.


Fri, 09/02/2011 - 21:24 | 1628675 Mediocritas
Mediocritas's picture

Warren paid his way out of this really cheaply.

Fri, 09/02/2011 - 21:42 | 1628709 willien1derland
willien1derland's picture

Utilizing several sites for data & including the UBS mortgage lawsuit of 27-Jul-2011 the total aggregate value for all mortgage lawsuits is $199.6 billion - if TARP was $700 billion would that imply 1 Trillion USD in bad mortgage paper - the only solace I have is that Jamie Dimon (Top Notch Theif that HE is) wins the top prize on the FHFA listing at a mere $33 BILLION USD!

Fri, 09/02/2011 - 23:57 | 1628912 monopoly
monopoly's picture

This is good. Long overdue.

Sat, 09/03/2011 - 01:39 | 1629011 oldman
oldman's picture

After reading the plaitiffs allegations, it seems likely that this is a no-win deal for the two agencies to press at the demanded jury trial. The plan might be just a woof, woof by the administration for the coming elections, but it does not seem like a serious case has been put together by the agencies involved. Maybe a fifteen cent on the dollar nuisance case if that. No banks will go down on this one, imho.

Not an attorney         just an oldman                 om

Sat, 09/03/2011 - 02:04 | 1629012 oldman
oldman's picture


Sun, 09/04/2011 - 03:08 | 1631017 LucazBrewz
Sun, 09/04/2011 - 12:44 | 1631447 Growyourownfood
Growyourownfood's picture

Canadian banks being sured by FHFA: Zero

Wonder if this means Canadian banks don't buy this shit?? Wonder if the absence of all Canadian banks indicates some kind of difference in regulatory framework governing those banks?? Wonder if that same framework would apply to those banks' domestic markets??

Hmmmmm. Best not to read into this though 

Mon, 09/05/2011 - 08:33 | 1633777 shacai
shacai's picture

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