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US Attorneys General Jump On The Lieborgate Bandwagon; 900,000+ Lawsuits To Follow, And What Happens Next?

Tyler Durden's picture





 

The second Barclays announced its $450 million Libor settlement, it was all over - the lawyers smelled not only blood, but what may be the biggest plaintiff feeding frenzy of all time. Which is why it was only a matter of time: "State attorneys general are jumping into the widening scandal over whether banks tried to manipulate benchmark international lending rates, a move that could open a new front against the top global banks. A handful of state attorneys general said they are looking into whether they have jurisdiction over the banks, and are starting preliminary discussions to determine what kind of impact the conduct involving the Libor rate may have had in their states."

From Reuters:

"Our office is aware of the allegations around the manipulation of the Libor, and we are working with other state agencies to determine whether Massachusetts has suffered any losses as a result," a spokesman for Massachusetts Attorney General Martha Coakley said. A spokesman for Florida Attorney General Pam Bondi said his office is aware of the recent settlement reached by British bank Barclays with U.S. and UK authorities and "will look at the case to the extent that our office might have any jurisdiction in the matter."

 

A spokeswoman for the Massachusetts transportation authority, MassDOT, said the agency "is actively investigating its portfolio for the purpose of determining if it was underpaid on its bonds due to the brewing Libor situation," as are many other issuers of debt whose rate is governed by Libor.

 

Lawyers for several states have had early discussions about whether they might pool investigative resources and launch a broader, multi-state effort, but no formal consortium has been established yet, people familiar with the discussions said. New York might be expected to lead such an effort, since most of the banks' U.S. operations are based there. A spokesman for the New York attorney general declined comment on whether the issue is being looked at.

 

Some municipalities, including the city of Baltimore, and funds including the Frankfurt-based Metzler Investment GmbH, which manages 47 billion euros ($59 billion) in assets, have already sued more than a dozen banks, arguing they were bilked of potentially billions of dollars.

How many potential lawsuits are we talking about here? Quite a bit in fact as the FT explains:

There are at least 900,000 outstanding US home loans indexed to Libor that were originated from 2005 to 2009, the period the key lending gauge may have been rigged, investigators have said. Those mortgages carry an unpaid principal balance of $275bn, according to the Office of the Comptroller of the Currency, a bank regulator.

Also, as explained here before, not only is this a legal bonanza, but it will be a political feast for the Congressional circus to earn numerous C-SPAN brownie points.

“I think the US government should be just as aggressive in getting to the bottom of this scandal as the United Kingdom has been,” said Senator Sherrod Brown, chair of the bank regulatory subcommittee on the Senate banking committee.

 

“This was not isolated to London, but affected tens of millions of investors, borrowers and taxpayers in our country as well,” Mr Brown added.

What does the above mean?

1) Starting today and going forward, there will be numerous essays, "analyses" and white papers, all of which will try to estimate (some on a paid basis) the damages and impact of the Libor manipulation that took place at least in the period under discussion 2005-2009. All of these will be absolutely wrong, as nobody has any clear idea of how the cumulative impact of the Libor rate, which may have been pushed below either lower or higher depending on how it suited a given BBA-member bank, over a period of years will have impacted hundreds of trillions in partially offsetting notional securities. Therefore, while one day it may have led to impairments, another day it would benefit the end-holder of a given interest-rate sensitive product. But they will try. And the bigger the number, the better, which leads us to...

2) The lawyers will crawl out of the woodwork like worms after a torrential downpour, and will all be willing to work on contingency, telling potential clients they are owed thousands, nay, millions based on such and such analysis. All they need is to have held a mortgage, or a credit card, or any variable interest liability in the 4 years in question. And to sign the dotted line.

3) The resulting lawsuits, most of which in class action format, will be of gargantuan proportions, simply to encourage settlement, as ongoing litigation will easily destroy the financial system. The litigation reserves at the TBTF banks will explode and will cause years of EPS writedowns. But at least they will be one-time charges, so the stocks don't get crushed too much. That said, forget any growth out of the banking sector, and certainly the 16 BBA member banks, all of whom are about to be sued to smithereens in civil suits as more and more banks step up and settle to avoid criminal prosecution.

4) The biggest irony is that the torrent of upcoming suits will be in effect targeting none other than the Fed. Because while banks which all were massively levered to even a one basis point move in Libor were very sensitive to the smallest variations in 3 month USD libor, end-clients who did not have this leverage were far less impaired. But that doesn't matter: after all the same clients were impaired through gross borderline criminal negligence which is all that matters in a court of law (assuming the honorable judge John Roberts is not presiding pro hac vice). Thus the entity that will be sued by proxy is the Federal Reserve, whose Federal Funds rate is really the setter for the baseline Libor rate. Note the chart below which shows that over the past decade, the 3M USD Libor and the Fed Funds rate were virtually interchangeable:

Yet while it was the Fed's decisions at the bottom of it all, unless someone implicates the Fed or the BOE further, both will get away scott free: after all what they do is public policy, for the public good and to defend their various appointed mandates. And neither pushed banks to manipulate their rates (even if both were well aware there was gambling going on here), or so they claim, even when presented with evidence to the contrary.

What will really happen, is that the private banks, having been bailed out by the central banks at the taxpayers' dime, will now serve as a buffer to protect these same institutions from rising popular anger, not just at Lieborgate, but Robosigning, Robosettlement, CDOs, rehypothecation, High Frequency Trading, toxic assets marked-to-unicorns, the end of Mark-to-Market, ZIRP, NIRP, expert networks, insider trading, MF Global, and countless other examples of what happens when financial fraud is let loose with no fear of consequence in a Bernanke Put world.

As a result, the status quo will literally buy itself a few more years as it delays the tipping point by any means necessary, in the process kicking back a little to politicians, lawyers, and the general public in exchange for a few years of subpar earnings for bank shareholders that should have been wiped out back in 2008 anyway. And everyone will be happy.

That's how Lieborgate will play out.

 


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Wed, 07/11/2012 - 21:03 | Link to Comment vmromk
vmromk's picture

Let them sue Bernanke.

Wed, 07/11/2012 - 21:22 | Link to Comment I think I need ...
I think I need to buy a gun's picture

Muligan bitchez!!!!!!!!!!!!!!

Wed, 07/11/2012 - 21:29 | Link to Comment Comay Mierda
Comay Mierda's picture

<---------- no one goes to jail

<---------- some go to jail but Obummer pardons in exchange for some campaign $$$

Wed, 07/11/2012 - 21:43 | Link to Comment Marginal Call
Marginal Call's picture

I don't see how they'll be able to nail the guys who set the rates for manipulating the rates.  They can do whatever they want with them. 

Wed, 07/11/2012 - 22:01 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

Long office supply companies and temp agencies servicing law firms.........

Wed, 07/11/2012 - 22:17 | Link to Comment The Gooch
The Gooch's picture

and "sticky" notes.

Wed, 07/11/2012 - 22:26 | Link to Comment nmewn
nmewn's picture

Send lawyers, guns & money,,,

Wed, 07/11/2012 - 22:38 | Link to Comment strannick
strannick's picture

BS. This is just like the robo-signing scandal. The the playbook seems to be to have the AGs scream bloody murder while the issue is on the front page, then start plotting the big roll over after the news fades in a week.

Wed, 07/11/2012 - 22:53 | Link to Comment tmosley
tmosley's picture

This is a bit different.  People here lost money because of out and out theft, not because they were lent more than they could afford to pay back.

I don't think this is going to go away.  Not without some politician stepping forward as a "hero" so he can get re-elected.  I wonder who it will be?  lol

Wed, 07/11/2012 - 23:06 | Link to Comment knukles
knukles's picture

Great, just fucking great.
Another settlelment in which those injured get shit while the states get a another bazillion dollars for their bottomless shit hole general revenue funds to spend on crap like High Speed Internet or Inter-modal Rail or some such shit profiting the politicians via campaign contributions from the contractors chosen to receive the rigged bidding for the projects funded by the settlements.

Super.
Fucking sooooper.

Yes, I'm Yelling!

Thu, 07/12/2012 - 00:35 | Link to Comment AldousHuxley
AldousHuxley's picture

ECONOMY OF NAZI GERMANY

 

HIGH UNEMPLOYMENT

Nazis came to power in the midst of the Great Depression. When the Nazis came to power the most pressing issue was an unemployment rate of  30%.[17] Before World War II, Hitler appointed Hjalmar Schacht, a former member of the German Democratic Party, as President of the Reichsbank in 1933 and Minister of Economics in 1934.

 

KEYNESIAN DEFICIT SPENDING

Policies were Keynesian, relying on large public works programs supported by deficit spending – took advantage of the freedom provided by the end of the gold standard to keep interest rates low and government budget deficits high, with massive public works funded by large budget deficits.

 

ANTI-UNION

Trade unions were abolished, as well as collective bargaining and the right to strike.[45] The right to quit also disappeared: Labour books were introduced in 1935, and required the consent of the previous employer in order to be hired for another job.

 

HIGH MILITARY SPENDING

They also directed Schacht to place more emphasis on military production and rearmament.In 1936, military spending in Germany exceeded 10% of GNP, higher than any other European country at the time, after years of limitations imposed by the Versailles Treaty. Military investment also exceeded civilian investment from 1936 onwards

 

STATE SPONSORED ENTERPRISES

the German state came to play an increasing dominant role in the German economy through state-owned companies

 

FASCISM: BIG BUSINESS & STATE

As big business became increasingly organized, it developed an increasingly close partnership with the Nazi government. The government pursued economic policies that maximized the profits of its business allies, and, in exchange, business leaders supported the government's political and military goals

The largest firms were mostly exempt from taxes on profits

 

LOWERED LIVING STANDARDS

While the strict state intervention  led to full employment during the 1930s, real wages in Germany dropped by roughly 25% between 1933 and 1938. 

 

Unrest caused by the breakdown of German social policies, and the sharp drop in living standards for the German working class forced Hitler into going to war at a time and place not of his choosing.

 

WAR AS FOREIGN POLICY

when faced with the deep socio-economic crisis the Nazi leadership had decided to embark upon a ruthless “smash and grab” foreign policy of seizing territory in Eastern Europe which could be pitilessly plundered to support living standards in Germany.

 

ANY OF THIS SOUND FAMILIAR AMERICANS?

Thu, 07/12/2012 - 01:25 | Link to Comment PiratePawpaw
PiratePawpaw's picture

Ok....thanks.........and in related news; Buffy the wonder-hamster is having her nails done. At first she wanted pink, but then she thought about that kinda off pink with a hint of red..............................................................................................................

Thu, 07/12/2012 - 01:28 | Link to Comment mharry
mharry's picture

Yeah your right, but we read this already. Knock it off, we get it.

Thu, 07/12/2012 - 01:33 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

 

 

Well ain't this a bitch.

Thu, 07/12/2012 - 05:18 | Link to Comment Red Pill
Red Pill's picture

Rubbish. What sounds and looks familiar is that you just follow and advocate the propaganda of the current system and its thieves which screw you time and time again. Because this is not at all what * really * happened. It is the spin given by your masters. They got you where they want you: you think you are clever dissent, but you are just another tool for them. Truth is there where it is most dangerous to go and wander! This applies also here in your topic.

Thu, 07/12/2012 - 07:42 | Link to Comment Sandmann
Sandmann's picture

Do a lot more reading - Hjalmar Schacht was there long before Hitler working closely with the Bank of England which has exceedingly good relations with Germany until 1939. You seem to know very little about Germany economic history. State enterprises started in Germany under Frederick The Great. You have zero comprehension of German Foreign Policy which suggests you are like Woodrow Wilson who transferred millions of Germans to live under Czech and Polish rulers and suffer discrimination. Danzig was a German cIty under League of Nations protection. Bohemia was majority German.

Stop reading comins and go read some Harold James - at least Princeton employs a real historian

 

Wed, 07/11/2012 - 22:54 | Link to Comment Temporalist
Temporalist's picture

Of course they are going to try to pass legislation just like they did to benefit Freddie&Fannie and AIG and all the others. 

 

Executive orders bitchez. Too big to jail.

Wed, 07/11/2012 - 22:57 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

YAY more kabuki.  Oh look, there's an AG with a mask on!!!!!!!!!!!!!

Wed, 07/11/2012 - 23:03 | Link to Comment HardAssets
HardAssets's picture

Exactly. The state AGs get their cut (as a fine or 'settlement') and print a 'get out of Jail free' card for the crooks. Kinda like how the church used to grant indulgences to rich sinners back in the Middle Ages. Those sinners could get through the Celestial Gates even if 'they done a bad, bad thing'.

Then its on to the next scam.

Thu, 07/12/2012 - 00:30 | Link to Comment DaveyJones
DaveyJones's picture

Nice analogy.  The ex prosecutor in me says things are too corrupt to expect real justice  granted at some point as people see the system being repeatedly bought with their own money something will explode

Thu, 07/12/2012 - 02:19 | Link to Comment Buck Johnson
Buck Johnson's picture

Exactly right, they will come up with some penny on the dollar settlement that goes to the states to shut up the AG's and it doesn't do anything for the people.

Wed, 07/11/2012 - 23:32 | Link to Comment The Gooch
The Gooch's picture

"I learned something from the experience. I never take vacations".- Warren Zevon.

http://www.youtube.com/watch?v=S5puAN1PGQw

Wed, 07/11/2012 - 22:17 | Link to Comment smlbizman
smlbizman's picture

it is probably that asshole who was trying to trick people with .999 1 oz slv. coins worth 30 0r 70$ of frns....to trick them into thinking it was worth a buck......but they gotem they knew that was a fake dollar...and if they can get him you know these other dudes dont stand a chance...

Wed, 07/11/2012 - 23:09 | Link to Comment knukles
Thu, 07/12/2012 - 00:11 | Link to Comment Dingleberry
Dingleberry's picture

Speaking of coins.....this shit along with MF global got me thinkin'.......with all the rampant fraud in these brokerages....how can anyone trust ETFs and other "paper gold" instruments? Seriously, how can you sleep at night knowing one day you will awaken to your gold account frozen (i.e. gone)?

 

 

Thu, 07/12/2012 - 01:34 | Link to Comment PiratePawpaw
PiratePawpaw's picture

You read ZH and still own paper?..........................wow!

Thu, 07/12/2012 - 04:50 | Link to Comment Kingbingo
Kingbingo's picture

Also Barclays rates was almost always in the 25% top end that was not inculded in the rate. So no impact on LIBOR. These lawyers parasites need to pace themselves, not spunk off too early.

 

Given it another quarter and all the other banks will be implicated too.

Thu, 07/12/2012 - 07:38 | Link to Comment Sandmann
Sandmann's picture

Barclays Chairman sat on the BBA Committee

Thu, 07/12/2012 - 01:32 | Link to Comment laomei
laomei's picture

LOOK OUT BANKS! THIS SLAP ON THE WRIST MIGHT USE 2 FINGERS INSTEAD OF THE REGULAR 1!

Thu, 07/12/2012 - 09:37 | Link to Comment Hayabusa
Hayabusa's picture

Comay is correct!  No one goes to jail, they are questioned via the dog and pony show by the talking heads, pay "fines", receive obscene bankster bonuses, pay off politicians and it's back to business as usual.  I wish all I had to do was pay a fine if I got caught stealing from millions of people in lieu of jail time... double standard folks, double standard.

Wed, 07/11/2012 - 21:32 | Link to Comment Surly Bear
Surly Bear's picture

If you're gonna sue someone for manipulating interest rates then sure as fuck it shouldn't be Barclays. Just saying, bitchez!

Wed, 07/11/2012 - 22:07 | Link to Comment tmosley
tmosley's picture

I wonder if the next stimulus won't be in the form of treasury or Fed funded "rebate checks" that go out in some sort of mass settlement for this.  I wouldn't be surprised to see them send everyone in the country a check for $5000 or so in exchange for not suing any bank over this issue.  I would bet they would throw in some nice ultra fine print including a bunch of other scandals in the making at the same time.

Wed, 07/11/2012 - 22:14 | Link to Comment fonzannoon
fonzannoon's picture

Good point. I will fully admit that tonight I sat at my compter for 3 1/2 hours and reading these posts and commenting on them. I think I would have more fun sometimes sitting outside and straining my eyes looking for a fucking comet to come towards the earth than to see any of the impact of the shit we all discuss actually go down the way we want it to. At least I would have got some fresh air.

Wed, 07/11/2012 - 22:28 | Link to Comment Yes_Questions
Yes_Questions's picture

 

 

Saw the ISS go quickly through the night mountain sky recently.

Sure beats AC and, well, just fits somehow.

 

http://spaceweather.com/

 

+billions and billions..Sagan

Wed, 07/11/2012 - 21:26 | Link to Comment ACP
ACP's picture

...which would result in the next executive order...

Wed, 07/11/2012 - 21:36 | Link to Comment HardlyZero
HardlyZero's picture

No, I think the idea is that after the banks (now) get sued for BILLIONS...there will now be a 'new' reason to bail out the banks even more.  The printing presses will be running into super-ludicrous speed very soon.

Its all in the "CRISIS" planning...now bad crises things can lead to printing money things...*GOOD*.  Feels better ?  hmm.

Its just like planning for problems...the problems actually lead to more budget and bailouts...dismal.

Wed, 07/11/2012 - 23:42 | Link to Comment Almost Solvent
Almost Solvent's picture

She's gone from suck to blow

Wed, 07/11/2012 - 21:28 | Link to Comment philipat
philipat's picture

Let them eat cake.

Wed, 07/11/2012 - 23:47 | Link to Comment Animal Cracker
Animal Cracker's picture

Let them eat cock.

Wed, 07/11/2012 - 23:53 | Link to Comment tmosley
tmosley's picture

Let them eat lead.

Wed, 07/11/2012 - 22:30 | Link to Comment Muppet of the U...
Muppet of the Universe's picture

This one's for you Ben.  http://www.youtube.com/watch?v=ipJTqCbETog

 

Me & you, all the way; I'll be waiting for you.

Wed, 07/11/2012 - 22:53 | Link to Comment vast-dom
vast-dom's picture

I wrote today that banks were complicit with TeH FeD and vice-versa in rigging, gaming, perverting rates, and that the latter must be sued. Especially after the chart in this post, which goes beyon interest rates, but all in the same meddling destructive illegal anti-free market mandate:

http://www.zerohedge.com/news/chart-year-fed-has-doubled-sp-admits-fed

Someone must step up and SUE THE FED. WHY? BECAUSE THE FED IS CONSIDERED A PRIVATE BANK! That's right folks! The Fed is considered by itself and the very government that elects fed chairman as a PRIVATE INSTITUTION. Ergo, it may be sued! 

Wed, 07/11/2012 - 23:44 | Link to Comment AlaricBalth
AlaricBalth's picture

There is a sense of conviction in your post.
Therefore: http://www.suethefed.com/about-us

Thu, 07/12/2012 - 00:13 | Link to Comment vast-dom
vast-dom's picture

i do not agree with suethefed approach. suethefed are half-baked crackpots -- most unfortunate as they will cheapen any other call to sue. 

Wed, 07/11/2012 - 23:54 | Link to Comment sporb
sporb's picture

As far as I can tell you are a bunch of mouth-breathers - idiots who rode the LIBOR when it worked for you and now you are "We The Comment-Board Sheeple" who bleat "sue them!"  (oh wait, you can't get jurisdiction - maybe not).

I'd be sad if I wasn't taking all your cash as we (I) speak...

 

 

 

 

Wed, 07/11/2012 - 23:56 | Link to Comment sporb
sporb's picture

Come on, somebody mention Ron Paul - please

Wed, 07/11/2012 - 23:56 | Link to Comment sporb
sporb's picture

Come on, somebody mention Ron Paul - please

Thu, 07/12/2012 - 00:04 | Link to Comment Lednbrass
Lednbrass's picture

I think the ZH masses are too busy being awestruck at your incredible posting skillz.

Maybe you can repeat yourself 3 or 4 times next? That will really show how awesome you are.

Wed, 07/11/2012 - 23:57 | Link to Comment tmosley
tmosley's picture

Actually, we want to murder you in the streets.

Wed, 07/11/2012 - 23:54 | Link to Comment sporb
sporb's picture

As far as I can tell you are a bunch of mouth-breathers - idiots who rode the LIBOR when it worked for you and now you are "We The Comment-Board Sheeple" who bleat "sue them!"  (oh wait, you can't get jurisdiction - maybe not).

I'd be sad if I wasn't taking all your cash as we (I) speak...

 

 

 

 

Thu, 07/12/2012 - 00:02 | Link to Comment Lednbrass
Lednbrass's picture

Well, it is at least good to know that with your vast and superior intellect you were able to master something as complex as the posting function on an internet forum.

It really does lend credence to your "I AM TEH SMARTEE" claim.

Thu, 07/12/2012 - 02:31 | Link to Comment OldPhart
OldPhart's picture

DING!  DING!  DING!  DING!  DING!  DING!  DING!  DING! 

OT, "Holy Shit!!" news.

LOS ANGELES (CNS) - Supervisor Mike Antonovich wants to know if Los Angeles County is headed down the road that led Stockton to bankruptcy and has put San Bernardino in financial ruin.

The lone Republican on the five-member board asked the county's chief executive officer for a report on how Los Angeles County's fiscal practices compare to those of Stockton, his spokesman said today.

``Stockton's bankruptcy provides an ominous warning for other municipalities who fail to apply fiscally responsible policies in their budgetary planning,'' Antonovich said, speaking at the weekly Board of Supervisors meeting.

``Rather than matching spending to revenue, they float bonds in order to cover escalating costs for retiree health care, pensions and public facilities and capital improvements. This is a recipe for fiscal collapse.''

Stockton, a city of nearly 300,000 and the seat of San Joaquin Valley
, recently filed for bankruptcy. On Tuesday, the   San Bernardino City Council, facing about $46 million in debt, also voted to seek Chapter 9 bankruptcy, and city officials said some public employees may not get paid in coming months.

Chapter 9 enables municipal governments to be shielded from creditors while reorganizing its finances.

Testing the waters.

Thu, 07/12/2012 - 07:20 | Link to Comment j0nx
j0nx's picture

Who would have guessed that catering to and throwing tens of billions of dollars and services to people who shouldn't even BE in this country would bankrupt you? I personally would NEVER have guessed such a thing. But I'm sure it's all those evil unions' fault and all those exorbitant pensions...

Thu, 07/12/2012 - 09:36 | Link to Comment marathonman
marathonman's picture

Rascist. 

/sarc

Wed, 07/11/2012 - 21:04 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

Clusterfuck Nation. 

Wed, 07/11/2012 - 21:09 | Link to Comment CrazyCooter
CrazyCooter's picture

Oh, I see ... the AGs must be done dry humping the fraudclosure case ...

Regards,

Cooter

Wed, 07/11/2012 - 21:33 | Link to Comment ghengis86
ghengis86's picture

Exactly.  This will be another 'could bring all the banks down costing them trillions!!' but will end up settled out of court, admitting no wrong doing, settling for pennies on the dollar for straight up criminal fraud all while these AG's claim 'victory' over their bankster masters.  One more circle jerk.

Wake me up when either:

perps are walked into pound me in the ass prison or bankers hang from lamp posts.

 

Until then.  Same shit, different day.  The serfs get fucked.

Wed, 07/11/2012 - 22:36 | Link to Comment Yes_Questions
Yes_Questions's picture

 

 

This time could be different.

Lowe's, Home Depot, ACE, Cabelas, et al still carry the public is pissed accoutrements and it won't always be so stifling hot outside.

 

Mostly, we protest in quiet solitude.

Mostly.

 

 

Wed, 07/11/2012 - 23:47 | Link to Comment youngman
youngman's picture

I said it before with the robo signing...this is a way for the Federal government to bail out the states.....the states sue....collect billions...the banks are to big to fail..they cry wolf..the Fed bails them out.....its the way to get around the law that the Federal Government canot bail out the states...

Thu, 07/12/2012 - 09:28 | Link to Comment odatruf
odatruf's picture

Which law prevents the feds from bailing out the states?  Looks to me like most 'stimulus' dollars had this sole purpose in mind.

 

Wed, 07/11/2012 - 22:31 | Link to Comment nmewn
nmewn's picture

It was only a smoke break.

Thu, 07/12/2012 - 08:17 | Link to Comment Miss Expectations
Miss Expectations's picture

I think that it was the AGs who were dry humped by the banks.  Well, there's dry humping and then there's that uncommon and inexplicable moment when the big bad boy dog gets his huge swollen article stuck in the bitch and then HE gets dragged all over the neighborhood.  Here's hoping that the AGs run farther and a faster this time.  Then again, there's clear evidence that the AG's like it.  They like it A LOT.

Wed, 07/11/2012 - 21:05 | Link to Comment holdbuysell
holdbuysell's picture

So, we have to wait another few years until Blankfein, et al are finally put into 'pound me in the ass prison'?

No problem, can do.

Wed, 07/11/2012 - 21:33 | Link to Comment tom a taxpayer
tom a taxpayer's picture

I'm sick and tired of the AGs huffing and puffing like they really gonna break the balls of the muthafucha bankstas…but in the end allowing the criminals to pay fines instead of serving 10 years to life prison hard time.

Wed, 07/11/2012 - 21:29 | Link to Comment tom a taxpayer
tom a taxpayer's picture

oops..heavy finger.

Wed, 07/11/2012 - 21:06 | Link to Comment fonzannoon
fonzannoon's picture

CNBC had smug guy in fancy suit today yelling that the Municipalities were going to sue the shit out of the banks because they have been ripped off in the form of lower yielding bonds by LIBOR. The other more smug guy who was a bit more femine in nature wearing a suit and cufflinks was apologizing for the banks and saying it was no big deal. The first smug guy accused the second smug guy of being an apologist for the banks and the first smug guy said that was unfair. I guess my point is the municipalities may sue the banks too.

Wed, 07/11/2012 - 21:08 | Link to Comment Tyler Durden
Tyler Durden's picture

We grouped them, and all others who had IR-exposure under "end clients"

Wed, 07/11/2012 - 21:13 | Link to Comment fonzannoon
fonzannoon's picture

Well just a heads up, the 2nd smug guy with cufflinks and the Deutsche Bank hat thinks you (and the 1st smug guy) are exaggerating. He seemed sincere.

Wed, 07/11/2012 - 21:27 | Link to Comment Comay Mierda
Comay Mierda's picture

trying to do damage control

but its like showing up to post-atomic explosion Hiroshima with only a broom and dust pan

Wed, 07/11/2012 - 22:21 | Link to Comment The They
The They's picture

when i read this comment i just about died laughing.

Wed, 07/11/2012 - 22:50 | Link to Comment Pure Evil
Pure Evil's picture

Was that grouped them or groped them in the 'end' clients.

The TSA might want to get in on this.

Wed, 07/11/2012 - 21:16 | Link to Comment Kayman
Kayman's picture

I bet a can of deep-browned beans that Britain and the U.S. write legislation giving these criminals a pass.

Wait for the Hank Paulson moment.

Wed, 07/11/2012 - 21:20 | Link to Comment Debt-Is-Not-Money
Debt-Is-Not-Money's picture

"Wait for the Hank Paulson moment."

Another Shakedown?

You're probably right.

We are sooooo screwed!

Wed, 07/11/2012 - 21:35 | Link to Comment Dr. No
Dr. No's picture

Although the circumstances may allow it, I dont think Timmah has the balls that Paulson had.  Timmah is a paper shuffeler worried about his pension.

Thu, 07/12/2012 - 00:36 | Link to Comment zanez
zanez's picture

The only balls Timmy has are the ones bouncing off his chin.

Wed, 07/11/2012 - 21:36 | Link to Comment disabledvet
disabledvet's picture

i agree that municipalities "blaming the banks" for their distress is a big deal. of course unlike lawyers municipalities can't "sue their way to prosperity" (they'll have to get in line when it comes to the banks anyways. what is it called? "Foreclosuregate"?) So "being smug" or "not being smug" doesn't change a damn thing when it comes to a friggin' interest rate. SUBORDINATION matters of course...which is why a "simple policy of avoidance by...CAREFUL...application of some good old fashioned equities" helps. I do agree "it's all out war in the land of debt" however. While i do agree LIBOR price fixing (isn't that what they call it in London? where you go to get "the fix"? meaning...LIBOR right?) is a big deal...that is the point of the process..."to fix the price." in effect "an interest rate cartel." i don't believe it's illegal...per se...of course it is a "private rate" and therefore the ULTIMATE in being part of an exclusive club...unlike say "what the Fed is doing" which is more like...i don't know...interest rate porno? "so good everyone stops and stares"? good luck suing that bro!
http://www.youtube.com/watch?v=5j2F4VcBmeo
that's right folks..."the Fed ordered the Code Red." And still is actually...

Wed, 07/11/2012 - 21:09 | Link to Comment Jumbotron
Jumbotron's picture

William Shakespeare wrote in Henry VI

"First thng we do, let's kill all the lawyers."

Jumbo says....."Bill...let's hold off for just a little while"

 

Wed, 07/11/2012 - 21:11 | Link to Comment whisperin
whisperin's picture

For all the legal eagles out there; is it possible to sue the regulators like the Fed, SEC, CFTC, OCC etc. if they don't have jurisdiction against the bank? I'm not sure what the claim would be besides gross negligence. We know they are fucking insane to allow this shit but could it be constructively done?

Wed, 07/11/2012 - 23:54 | Link to Comment Almost Solvent
Almost Solvent's picture

A properly constructed Supreme Court decision could rule that willful violation of the constitution and/or oath of office is sufficient grounds to overcome either soverign immunity or qualified immunity.

 

Enforcement of the ruling might be difficult however. And there may not be a private right of action either. 

Thu, 07/12/2012 - 09:39 | Link to Comment MachoMan
MachoMan's picture

It's going to have to take some NFP or legal activist group to challenge it then..,.  I don't think the Plaintiffs' attorney buzzards are interested in that one on contingency...  ok, so you remove government immunity for whatever actors you can directly pin to illicit behavior...  then you're still left with turnips.  Cost prohibitive.

Wed, 07/11/2012 - 21:36 | Link to Comment Unbezahlbar
Unbezahlbar's picture

You could certainly nab a majority of the private players with mail fraud when it's hard to prove a complex thing like securities violations or securities fraud. Mail fraud is much much easier from what my lawyer neighbor told me.  See wiki below:

Elements

There are three elements to mail and wire fraud:

  1. Intent;
  2. A "scheme or artifice to defraud" or the obtaining of property by fraud; and,
  3. A mail or wire communication.[5]

To be fraudulent, a misrepresentation must be material.[6]

Mail fraud does not require that the mailing cross state lines; however, wire fraud does require that the wire communication cross state lines.[7]

 

https://en.wikipedia.org/wiki/Mail_and_wire_fraud

Wed, 07/11/2012 - 22:54 | Link to Comment illyia
illyia's picture

U R supposed to "vote" "that administration" out of office.... instead...

Which is where lynching comes in handy.

Wed, 07/11/2012 - 21:17 | Link to Comment tony wilson
tony wilson's picture

like the donald duck rumsfelds sept 10th 2001 press statement about missing pentagon trillions.

silenced by missile not plane into the very pentagon  dept that had all the info.

like the enron files that would of busted the case wide open and sent many to jail.

the  enron files where kept safe in wt7 a building that collapsed from minor fire damage.

these minor financial troubles all get covered up and forgotten in times of false flag crisis followed by world war.

the total theft of everything and death of many more innocents is still to come.

these lunatics are having way to much fun to give up now.

Wed, 07/11/2012 - 21:57 | Link to Comment Hopium Dealer
Hopium Dealer's picture

You're telling me it wasn't the brown cave dwellers with Blue Angel piloting skills?

Wed, 07/11/2012 - 22:21 | Link to Comment tmosley
tmosley's picture

Because it is SOOO hard to crash a plane.  Especially into a target the size of the Pentagon.  Also, the people on the plane that supposedly hit it?  All imaginary.  Don't tell that to their families though.  Those guys are really committed to the lie.

Wed, 07/11/2012 - 23:31 | Link to Comment Tijuana Donkey Show
Tijuana Donkey Show's picture

No one said they were all in on it,just the pilot

Wed, 07/11/2012 - 23:47 | Link to Comment tmosley
tmosley's picture

If it was a missle that hit the pentagon, where did the missing plane go?

This is the problem with crackpot theories.  They don't stand up to even a tiny bit of scrutiny.  But people who believe in the greater conspiracy defend them to the death because they think the truth is a war, and that ideas are soldiers, and if you fail to defend one of your soldiers, you are a traitor to your cause.  They don't realize that the truth exists, no matter what they think.  They gain nothing but derision by defending idiot theories just because they are in the same idiom.

Thu, 07/12/2012 - 06:29 | Link to Comment spentCartridge
spentCartridge's picture

That's why they're gonna nuke the London Olympics.

Gets rid of all the evidence ...

Wed, 07/11/2012 - 21:15 | Link to Comment fonzannoon
fonzannoon's picture

Paging Dick Bove.....Dick Bove to the studio.

Wed, 07/11/2012 - 21:15 | Link to Comment zero19451945
zero19451945's picture

Highly doubt the banks care about lawsuits. They have an unlimited taxpayer bailout.

I would be making the most outrageous bets possible if I were them. 

Wed, 07/11/2012 - 21:17 | Link to Comment The Gooch
The Gooch's picture

cookie meet crumble

Wed, 07/11/2012 - 21:19 | Link to Comment q99x2
q99x2's picture

Libor8

As long as Holder isn't involved this might not get covered up.

Wed, 07/11/2012 - 21:22 | Link to Comment Timmay
Timmay's picture

The Locusts are about to FEED.....

Wed, 07/11/2012 - 21:37 | Link to Comment PulpCutter
PulpCutter's picture

Mass atty general Coakley, who has the lead quote in the article, is outstanding.  She is the one who was running against Scott Brown for the senate seat left open when Kennedy died.  The TeaBaggers sent money in from around the country to support Brown, and Coakley lost.  Brown, judged by his voting record, has proven to be a WallSt stooge.

I'd admire the TeaBaggers civic enthusiasm, if they weren't all brainwashed FoxNews idiots.

Some of Brown's votes; (THANKS TeaBaggers!)

4/26/10: S. 3217, Restoring American Financial Stability Act of 2010 (Senate Vote 124)
The bill was the original financial regulatory reform bill, increasing accountability and transparency, and ending "too big to fail."  Brown voted against.

7/27/10: S. 3628, Democracy is Strengthened by Casting Light on Spending in Elections (DISCLOSE) Act (Senate Vote 220)
This bill would have increased transparency of corporate and special-interest money in national political campaigns, in response to the notorious Citizens United decision by the Supreme Court, as well as prohibited foreign influence in federal elections.  Brown voted against.

 

Wed, 07/11/2012 - 21:27 | Link to Comment Unbezahlbar
Unbezahlbar's picture

Since we have a complete failure in regulation, we are lucky to have private lawsuits left to seek "justice."

Boy, I never thought I'd be glad to see so many plaintiff attorneys hard at work....it's enough to give me .....emotional distress!!!!!

Wed, 07/11/2012 - 21:58 | Link to Comment Arnold Ziffel
Arnold Ziffel's picture

Ms Unbezahlbar, you look awful! Did those Big Bad LieborBankers cause you......

Sleepless nights?

Anxiety?

Vomiting?

The need for psychological counselling?

Loss of gainful employment?

Weight gain?

You may have a legal recourse to help sooth that there nasty emotional distress.

 

Here is  my card...

Wed, 07/11/2012 - 21:28 | Link to Comment MachoMan
MachoMan's picture

Generally, plaintiffs will "pool" up and there will be a few lead counsel designated...  these folks will handle depositions, filings, and the leg work (many hearings/status updates)...  the court will create a common benefit fund for their efforts and everyone who follows in their footsteps will get to pay the fiddler (% of their recovery).

I suspect this type of lawsuit will actually be ripe for classes...  it's actually fairly difficult to get a class certified...  but I think many of the plaintiffs will be so similarly situated so as to warrant it...  but who knows...  judge might not even certify classes on this one.

PS, why in the fuck would AGs have to ask whether they can go after banks that operate in their states?  Do they really think their own state courts are going to deny jurisdiction is proper? lol...  go ahead and appeal...  all it's going to do is bring up round 2...  and you're not going to get to recover shit from the state...

Wed, 07/11/2012 - 21:57 | Link to Comment Paul Atreides
Paul Atreides's picture

Lawsuit/fine just more money changing hands and who do you think is going to foot the bill? us John Q Taxpayer, there is no justice for the little people and no law for the political puppets and the financial ruling elite. Humanity needs to unify and start purging these fucking parasites from this earth or we will wind up being forever slaves.

Wed, 07/11/2012 - 21:33 | Link to Comment luckylogger
luckylogger's picture

What about all the traders tradin off of fundimental that lost their ass,?  Do we get compensated because they fuked with the print?

Any lawyers out there want half of the 200k I lost are more than welcome to contact me............................

Wed, 07/11/2012 - 21:34 | Link to Comment Muppet Pimp
Muppet Pimp's picture

Cue "Executive Privelege" to protect Timmay

Wed, 07/11/2012 - 21:36 | Link to Comment pashley1411
pashley1411's picture

Somewhere in this mess there is a jujitsu lesson from Adam Smith.   

"The real and effectual discipline which is exercised over a workman is that of his customers. It is the fear of losing their employment which restrains his frauds and corrects his negligence."

And when your customer is the Fed and the political class, who don't care?   

 

Wed, 07/11/2012 - 21:35 | Link to Comment Hype Alert
Hype Alert's picture

Oh my, what a tangled web we weave!  This could be endless.  When did it start?  Ah, in the beginning...

Wed, 07/11/2012 - 21:39 | Link to Comment jcpicks
jcpicks's picture

Bullish?

Wed, 07/11/2012 - 21:40 | Link to Comment same old story
same old story's picture

anyone getting excited about this just needs to remember what happened with these same AG's in fraudclosure gate.  This is just another dog and pony show full of sound and fury.  tables will be pounded, demands will be stated, outrage will be expressed and then a settlement that makes WWW look real will be agreed upon.  

 

These posts are tiring as it gives these useless phonies what they want.  Ink coverage, so they can pretend to care.  Boy will the use it to put on the best show this three ring circus can buy.

 

Nothing is going to change if we keep expecting such change will come from those at the top.  It has never happened and it never will.  Some may say well what about hitler?  hitler was a stooge and would never have made it without the powerful backing of those behind him for the most part hiding in the shadows.

 

It we are to get change we must confront the shadows and take them down.  Bot just a few but all of them, but we better have a plan for what we want next - another fact that the people always miss.  No plan, no vision means someone will step in and give you one and the whole top down cycle continues to play out again and again.  

Wed, 07/11/2012 - 22:12 | Link to Comment holdbuysell
holdbuysell's picture

Understood. The significance is this should bring broad public awarenes of the issue. In a game of confidence, the public will have the final say when critical mass is reached, which is only a few percent moving with conviction in a direction. The rest of the herd will follow.

Wed, 07/11/2012 - 23:16 | Link to Comment HardAssets
HardAssets's picture

The public . .  awareness . . . about LIBOR ?

Youre kidding, right ?  A lot of the public can't even calculate how much to tip their waitress.

In a week this'll be off the radar screen.

ZH isn't most of the world . . . unfortunately.

Wed, 07/11/2012 - 23:27 | Link to Comment WillyGroper
WillyGroper's picture

>>>>>>>The rest of the herd will follow.

As will the drones.

Thu, 07/12/2012 - 00:22 | Link to Comment TitleZ
TitleZ's picture

I hope that is true.  I work in the title business, and I have sat on the sidelines watching this parade of scandals since the residential real estate crash began in '06.  The crap in high finance has to stop, and the thing that has really gotten to me is the apathy of the public, when it is the public that is being robbed.  One of the reasons why foreclosuregate is such a nightmare is because the banks are facing a mountain of foreclosure-related litigation in all 50 states, each with their own local real estate laws.  Death by a thousand papercuts.  That is why the national mortgage settlement was such a bargain for the banks.  It probably saved at least a few institutions from insolvency.  Now imagine a similar problem on a global scale.  This Libor sucker is worldwide.  Contracts based on Libor were entered into in many countries, each with their own legal system.  Will Americans need to bail out our banks yet again so that they stay solvent under the weight of potential global Libor-related litigation?  Is there a fucking global settlement for something like that? 

If we really believe in this country that capitalism works, then we are in a do or die moment in our fiscal history.  The hallmark of capitalism is accountability.  The U.S. is disfunctional politically, and there is an obvious aversion to holding anyone in finance accountable for their actions.  I'm one of the older Gen-Yers (30 yrs old).  My generation needs to wake the hell up and realize that we, and our kids, are getting royally screwed every time massive collateral damage caused by bank fraud is nationalized.  We must demand the rule of law from our "leaders," and it must be now with Libor.  Seriously.  How long will the public sit around and watch big finance piss away our wealth?

Thu, 07/12/2012 - 07:41 | Link to Comment j0nx
j0nx's picture

Most kids your age are more interested in those zany kardashian girls than they are the futures of their unborn children. You, sir, are an exception. Pretty much the same thing with my generation (X at 42 years old). Ask 10 people on the street what LIBOR is and they will think you are talking about a computer programming language. 5 years later and the people aren't even close to connecting the dots to their financial misfortunes. IMO the MSM are the true evil doers for covering up all this shit at the whim of the 2 or 3 people who own all the media conglomerates. 40 years ago all of these scams would have been on the front page of every newspaper with every journalist in the western world digging into the bowels of all of them. Controlling the information was and always will be the way to take over a nation.

Thu, 07/12/2012 - 11:08 | Link to Comment HardAssets
HardAssets's picture

Spot on - - the dumbing down and indoctination starts in the public schools. Since the 1890s-early 1900s they were made mandatory and designed to dumb down the American citizenry. Those who already 'got there's' didnt want future competition from an independent minded citizenry with critical thinking skills. ("Competition is a sin." - - John D. Rockefeller).  They wanted clueless & obedient workers for the factories. Thus, they financed the university 'Education' departments and their Prussian based 'teaching' methods. This cancer was spread throughout the schooling system. Its been downhill ever since.  John Taylor Gatto has done a great deal of work on the history and true function of education.

Sophisticated propaganda methods go back to at least World War I with the work of Edward Bernays (nephew of Freud).  He's the same guy who got women to start smoking, and convinced Americans to eat bacon at breakfast. Half of Americans had some German ancestory at the time of WW1, and there was no interest in getting involved in that European conflict. Bernays and others like him got the propaganda machine going . . . and America got into that war. (Afterall, JP Morgan and other interests had a lot of money tied up with England, and it would do them no good to have the Brits lose the war.)  It was Bernays position that it was actually those behind the scenes (like him) who directed the actions of the country. The public could be manipulated to do whatever the powers-that-be wanted. The public would 'vote' in what ever manner they were manipulated by advertising, public relations, 'news' . . . that is, by the propaganda machine.  - - - Without the critical thinking skills and knowledge of true history (subjects erased from the schools) - - - - there was little defense for them in the war being raged against the American citizens minds and freedom.

And it continues today.

It should also be noted the conditions that lead to World War I in Europe. England had been at the heart of the start of the Industrial Revolution. But after many years of a very small group livng off the rest of the population, the Empire had been going downhill. The so-called 'elites' had been sucking England dry. British industry was old and creaking. Resources that should have been used for innovation were siphoned off to the jackal 'elites'. England could not compete with the rising industrial competitors on the European continent . . . Germany. Of course, the British 'elites' could not give up what they had come to expect - - The only way to stop the innovative competitor was to have a war with them. Any excuse would do. Historians who scratch their heads at why World War 1 even got started , apparently with the assassination of some vague character in the Balkans, miss the point.

Does any of this sound familiar when compared to today ?

Thu, 07/12/2012 - 11:13 | Link to Comment HardAssets
HardAssets's picture

We don't have true free market capitalism today. What exists is insider chrony 'capitalism'. It is the merging of the interests of big connected insider corporations and government. There is a revolving door through which those in big banks, insider corporations, and government move from one sector to the other and back again.

Is it any wonder that 'our representatives' in Congress or the executive never do anything ?  Is it any wonder that there is no relief from the courts ?  At lower levels they are bought and sold. At higher levels they merely temporarily change positions - according to the advantages of doing so. (Just check the backgrounds of the people who have filled the office of Treasury Secretary).

The merging of corporate interests and the state to control a nation - - - is fascism.  As the impact from so many years of robbing the citizenry manifests in rapid economic/social decline and brings a response from the citizenry - - the fascist nature will become more obvious. It will come in the form of a crack-down on the citizenry and further erosion of human rights. It will all be done in the name of ''law & order', 'national security', and 'keeping us safe'. It will likely manifest in the public diversion of a major war overseas; this is always an effective cover for taking away Liberty from the citizens so the insiders can try to protect themselves from the backlash they caused.

IMO all this is likely, but not inevitable.  If the public woke up & started asking questions (rather than just respond with silly flag waving at the latest propaganda) - - there might be a chance for a turnaround.

One man's opinion.

Wed, 07/11/2012 - 21:39 | Link to Comment hellas4life
hellas4life's picture

Take their assets and hang all the bankers in a public square. All the enabling politicians as well

Wed, 07/11/2012 - 21:41 | Link to Comment Snakeeyes
Snakeeyes's picture

What happens next is MORE regulation. But the Fed will still manipulate LIBOR. Nothing fixed.

http://confoundedinterest.wordpress.com/2012/07/06/libor-fixing-and-the-...

Wed, 07/11/2012 - 23:36 | Link to Comment Tijuana Donkey Show
Tijuana Donkey Show's picture

LIBOR is fixed....

Wed, 07/11/2012 - 21:43 | Link to Comment Ted Baker
Ted Baker's picture

Surprised Mervin King has not yet been called by uk parliament to testify about the lieborgate scandal - weird

Wed, 07/11/2012 - 22:52 | Link to Comment fonzannoon
fonzannoon's picture

TED WHAT HAPPENED TO ALL CAPS!?

Wed, 07/11/2012 - 22:12 | Link to Comment midgetrannyporn
midgetrannyporn's picture

Liebor-shmiebor. I hope the states & municipalities get a metric shitload of money. The banks have been robbing them for years. They will settle without admitting anything just to avoid a bunch more negative publicity.

Wed, 07/11/2012 - 22:20 | Link to Comment Mercury
Mercury's picture

 Thus the entity that will be sued by proxy is the Federal Reserve, whose Federal Funds rate is really the setter for the baseline Libor rate. Note the chart below which shows that over the past decade, the 3M USD Libor and the Fed Funds rate were virtually interchangeable:

Ahh…you can’t be virtually interchangeable with the most watched, telegraphed and transparent rate in the world and be scandalously out of whack with the true market to the detriment of all counterparties at the same time.

Fed funds is an official rate set by the government so of course its "manipulated" by definition. Bad policy may be in play here but I don’t see how  anyone is being misled. LIBOR is supposed to be a market rate but central banks/regulators like to use it as a policy tool in times of stress.  It should be one or the other exclusively.   The real lesson here is: it’s time to decide that once and for all.

Mega-banks are both payers and receivers of many LIBOR based payments/positions at any given time.  Any manipulation within any particular bank was almost certainly done for a small group of individuals' benefit, not the bank as a whole. 

Will those "end-clients" who benefited from LIBOR IR exposure the other way be forced to divest ill-gotten gains?

What a load of crap this has become.

 

Wed, 07/11/2012 - 21:52 | Link to Comment Bunga Bunga
Bunga Bunga's picture

Get over it, you can't sue bailed out banks.

Wed, 07/11/2012 - 22:06 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

And fines mean nothing when they are less than the profit from the criminal enterprise and in the final analysis are paid by taxpayers or customers anyway.  Only JAIL TIME will fix this corrupt system and that ain't gonna' happen from what I see.

Thu, 07/12/2012 - 01:39 | Link to Comment laomei
laomei's picture

Jail time won't fix anything.  Someone will agree to take the fall for it and be handed a giant compensation package in return while business goes on as normal.  If you want to see any change at all.  The illicit income needs to be seized entirely, wih a fine of no less than 3x the illicit income... not profit, but revenue.  Those who called the shots should be executed, those who complied with the orders should see jail followed by a life-time ban from anything and everything involving finance, lifetime travel ban and essentially be on life-time probation... one slip up and off to jail they go again.

 

You will never see this happen though.

Thu, 07/12/2012 - 01:50 | Link to Comment laomei
laomei's picture

I mean everything involving finance.  I don't want them having bank accounts, coming within 20 feet of an ATM, no credit cards.  Strip them of any and all assets and buy them a bus ticket to detroit.  I want their information to be flagged in every system and their IDs to have big red letters on them identifying not who they are but what they are.

Thu, 07/12/2012 - 10:49 | Link to Comment HardAssets
HardAssets's picture

Your avatar is appropriate for this topic. We hear that in China they shoot people for many types of business crimes.

Thu, 07/12/2012 - 14:30 | Link to Comment laomei
laomei's picture

Is there something wrong with that?

Wed, 07/11/2012 - 22:24 | Link to Comment holdbuysell
holdbuysell's picture

What you can do is pull the financial plug: no loans, no deposits, no business, no nothing. Go local.

Wed, 07/11/2012 - 23:40 | Link to Comment iDealMeat
iDealMeat's picture

+1,  yep.

Wed, 07/11/2012 - 21:55 | Link to Comment I Am The Unknow...
I Am The Unknown Comic's picture

And in 2 years the 50 states Attorneys General will settle on a $25 million taxpayer funded civil penalty with no criminal wrongdoing!  Don't ya just love it when a central plan comes together!    

Wed, 07/11/2012 - 22:02 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

Ha!  You beat me to it.  See my comment below.

Why the cynicism?  Because it's now so very obvious that there are two "justice" systems in the US, one that doesn't come close to properly fining or prosecuting the wealthy and powerful and one that'll put you in jail for the slightest offense that's for everyone else.  The low waters of hard times have revealed the corrupt garbage that's apparently always been just below the surface of our banana republic and they are being ignored as they always have been.

Thu, 07/12/2012 - 11:27 | Link to Comment HardAssets
HardAssets's picture

". . . . and one that'll put you in jail for the slightest offense that's for everyone else. "

True, but don't forget that prisons are one of the growth businesses. America has more people in prison than any other nation on earth, both on a percentage and total numbers basis. That includes China with its much larger population living in a 'Communist police state'.  Indeed, 1 in 4 of the Worlds prisoners are located in America.

"Land of the 'free', home of the . . . . . clueless ?"

The Winston Smith from the novel 1984 would feel quite at home in America . . . and likely even more so in the future.

Wed, 07/11/2012 - 21:57 | Link to Comment Winston Smith 2009
Winston Smith 2009's picture

"US Attorneys General Jump On The Lieborgate Bandwagon"

So, what?  I'm sure they'll be convinced to settle for a pittance compared to the damage done just as they did on the MERS/mortgage robosigning issue.

Wed, 07/11/2012 - 22:00 | Link to Comment Caviar Emptor
Caviar Emptor's picture

They might just make lying legal so they can let them all off and then go party with them in Sardinia

Wed, 07/11/2012 - 22:00 | Link to Comment same old story
same old story's picture

LOL what a joke.  please those running the states are in on this or some other scam up to their necks.  Anyone read talibi piece on the trail of those accused of fixing the bond rate I think it was on state financing.  Bill Richardson was quoted in emails and took money from these guys and later awarded them with contracts.  So what happened to him.  Let's see even when the scandal was brewing he had the balls to run for POTUS.   Then O was going to make him commerce sec, lol.  When it became obvious tat such a move might let to much dirty laundry leak he was sidelined.  His case well placeholder dropped the investigation - you know not enough evidence.  

 

The bansk etc have too much dirt on the pols, the pols on the bank - result nothing will happen

Wed, 07/11/2012 - 22:01 | Link to Comment loveyajimbo
loveyajimbo's picture

Hope this is the beginning of the end JPM and Goldman, BofA and Citi... the scum of the earth.  The only one not interested in getting into this is... Eric Holder.  Timmy Geithner and his catamite Bernank are making big plans for a villa in Irkutz.

Wed, 07/11/2012 - 22:08 | Link to Comment Jena
Jena's picture

Since the Fed knew about the LIBOR manipulation and let it continue, the noisy state AGs have a point.  I'm not suggesting that anything like real justice will occur (and it'll be the taxpayers that pay for anything, as always).  But is this some lousy way of funneling money to broke states?  

And I swear, do not bail out crooked states like California -- where I live.  It will only encourage the bastards here.

Wed, 07/11/2012 - 22:09 | Link to Comment XitSam
XitSam's picture

<- The lawyers win

<- The lawyers and at least one non-lawyer win.

Wed, 07/11/2012 - 23:28 | Link to Comment tmosley
tmosley's picture

Do politicians count as non-lawyers?

Thu, 07/12/2012 - 13:46 | Link to Comment XitSam
XitSam's picture

Since most of them are lawyers, no.

Wed, 07/11/2012 - 22:12 | Link to Comment Demogorgon
Demogorgon's picture

Doesn't matter. No one of significance will go to jail.

We're done. No one who should be in jail is in jail and never will be. The fucking elites have won the war of turning the masses into sheeple and will continue this historic transfer of wealth as the sheeple graze on the grasses of american idol. 

Thu, 07/12/2012 - 07:48 | Link to Comment j0nx
j0nx's picture

/thread

Wed, 07/11/2012 - 22:12 | Link to Comment eatthebanksters
eatthebanksters's picture

Lamposts and rope = frontier justice

Wed, 07/11/2012 - 22:13 | Link to Comment robertocarlos
robertocarlos's picture

Take all the bankers assets and then throw all the bankers in jail for 30 years.

Wed, 07/11/2012 - 22:14 | Link to Comment Yes_Questions
Yes_Questions's picture

 

 

Settlement, Aerial.

Fire em' up!

 

http://www.eliteukforces.info/gallery/helicopters/

Wed, 07/11/2012 - 22:32 | Link to Comment newengland
newengland's picture

:-)

Wed, 07/11/2012 - 22:15 | Link to Comment AurorusBorealus
AurorusBorealus's picture

This is truly the most ironic story to emerge in the bankruptcy of the West.  The Europeans have attempted to deal with bankruptcy by a cacaphonous clatter of summits and technocratic decrees.  The Americans, in good American fashion, have chosen to try to contend with their banrupt collapse through class action litigation on a scale unimaginable.  In both cases, it is like setting loose a hord of hammering jackasses to pound away at pillars of a collapsing house.  This will not kick the can down the road.  The final calamitous acknowledgement that the West is banrupt is nigh.

Wed, 07/11/2012 - 22:24 | Link to Comment newengland
newengland's picture

Reckless leveraging ruined the world financial system, but it's probably only the West that has the guts to start making amends. The rest are monarchists and despots who will exploit anyone and everything without the integrity or the intelligence to lead. 

Thu, 07/12/2012 - 00:08 | Link to Comment Dr. Engali
Dr. Engali's picture

Are you kIdding me? The west has the guts to make amends? Are you paying attention to anything that is going on? The west is accelerating their pillaging , not trying to make amends.

Wed, 07/11/2012 - 22:21 | Link to Comment newengland
newengland's picture

Commericial banks vs regulators = a cut throat defense whereby one party blames the other when both are accused of the same crime.

It's gonna be a helluva show. Excellent, Smithers. Carry on...

The serious point understood by most apart from the apologists for corporatists: the law ought to apply to all, be you ever so humble or high. Fraud and false accounting committed by a bank is no different than similiar offences committed by any other business.

Banks have got too big for their britches, and need cutting down to a size that serves honest money, honest people, honest business...not the loan sharks and gamblers who should have been allowed to fail with their losses in 2008 in a controlled implosion, rather than this ongoing smouldering ruin of the world.

Values are priceless. Stop the looting. Start the prosecuting, as a warning to others who may also be inclined to cheat.

Wed, 07/11/2012 - 22:34 | Link to Comment Atomizer
Atomizer's picture

They knew of this upcoming crisis long ago. The fraud has finally caught up. The lie cannot be kicked down the road any longer.

 

Interbank rate fixings during the recent turmoil - BIS Quarterly 2008

Full Report:

http://www.bis.org/publ/qtrpdf/r_qt0803.htm

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