Well bust my britches, I never thought I’d live to see the day that the “untouchable” JP Morgan would get ZAPPED by the SEC for it’s disgusting derivatives scams, but sure enough, they will pay indeed – maybe they can set aside some of our hard-earned bailout money in their legal defense fund.
I wonder how many other banks lavished Rolex’s and Ferragamo suits on municipal “good old boys” in order to dupe them into those newfangled debt protection devices, collect exhorbitant fees, rape the public on rate increases, then bankrupt the county when the scheme collapses?
Closer to home here in Florida, Attorney General Bill McCollum brings suit against Countrywide Financial, after receiving over 150 complaints regarding deceptive underwriting practices. Like in the case of WAMU and others, unscrupulous brokers preyed upon the trust of gullible buyers who were not financially capable of ever repaying the loans, knowing that Countrywide would qualify them.
The brokers earn their easy-money, the banks secure a high yield loan for the secondary market; these are then bundled into fraudulent mortgage-based securities, ratings agencies are paid to fraudulently rate them; they are then leveraged into even riskier derivatives, sold off to the world at large; investment bankers are paid astounding fees - and finally, when it all collapses, the international cartel of banks and hedge funds are bailed out in a no-risk form of global capitalism–all based on government sponsored criminal fraud.
Meanwhile, taxpayers are made to subsidize the thievery, families are left homeless; cities, counties and states are bankrupted, and the integrity of the U.S. government is destroyed.
This has all been laid out before by former S&L regulator Bill Black in his shocking Bill Moyers interview, and again this week in Barron’s, where he body slams that simpering wimp of a failure, Geithner.
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My comment is not for this particular post. It’s the way I view not only this post but your entire site. KEEP UP THE GREAT WORK!!! Our tax dollars has already made these white collar criminals too wealthy already!
But why should they think any different? We’ve bailed out these people several times over the past century. They knew the taxpayers money would come to the rescue when they entered their ‘den of theives’.