Comments on: The government’s narrow anti-bank suits http://blogs.reuters.com/felix-salmon/2011/03/23/the-governments-narrow-anti-bank-suits/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: WithoutMalice http://blogs.reuters.com/felix-salmon/2011/03/23/the-governments-narrow-anti-bank-suits/comment-page-1/#comment-25344 Thu, 24 Mar 2011 16:43:40 +0000 http://blogs.reuters.com/felix-salmon/?p=7701#comment-25344 You are wise to note the incoherence of the federal government’s response to the financial crisis. However, the incoherence is not at all due to “selfishness” on the part of the FDIC and the NCUA. What they are doing is the opposite of selfishness. Instead, it is due to the fact that those two agencies are luckily still run by persons of integrity who are willing to do their sworn duty despite pressures not to do so from the top levels of the administration.

Everything else you say is true. There should be broad civil and criminal charges against large numbers of major banks, investment banks and individuals. Literally hundreds of billions in remedies should be being pursued by the Department of Justice. The money damages cases are obvious Section 11 claims based on misstatements in the offering documents themselves. The criminal cases are obvious fraud, conspiracy, insider trading and perjury claims that could be based in large part on millions of emails that the DOJ could easily discover.

There has clearly been a “hands-off” order for Wall Street issued by President Obama, influenced by his inner circle of Geithner and Holder. What you are seeing at the FDIC and NCUA is a couple of brave federal officials with integrity and independence who are actually doing their duty. The higher-ups dare not stand in their way (yet) because that would make their hypocrisy too obvious.

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By: jhkmtk http://blogs.reuters.com/felix-salmon/2011/03/23/the-governments-narrow-anti-bank-suits/comment-page-1/#comment-25327 Wed, 23 Mar 2011 19:48:17 +0000 http://blogs.reuters.com/felix-salmon/?p=7701#comment-25327 Could someone help me out here?
How much has this transaction cost the U.S. taxpayer?

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2011/03/23/the-governments-narrow-anti-bank-suits/comment-page-1/#comment-25326 Wed, 23 Mar 2011 19:27:43 +0000 http://blogs.reuters.com/felix-salmon/?p=7701#comment-25326 I wonder if any of the investors in these funds suing GS are going to sue the fund managers for clearly misrepresenting their abilities when they were raising cash for those funds? Pretty sure i never saw a hedge fund manager claiming that a shaved chimp could do better than him/her, that any upside would purely be luck and they were patently not worth their 2 and 20. Now that would be a material ommission!

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By: Eric_H http://blogs.reuters.com/felix-salmon/2011/03/23/the-governments-narrow-anti-bank-suits/comment-page-1/#comment-25323 Wed, 23 Mar 2011 18:39:07 +0000 http://blogs.reuters.com/felix-salmon/?p=7701#comment-25323 The FDIC had no loss from WaMu. Their press release for the failure stated:

“WaMu’s balance sheet and the payment paid by JPMorgan Chase allowed a transaction in which neither the uninsured depositors nor the insurance fund absorbed any losses,” Bair said.

The entire press release is here:

http://www.fdic.gov/news/news/press/2008  /pr08085.html

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By: Woltmann http://blogs.reuters.com/felix-salmon/2011/03/23/the-governments-narrow-anti-bank-suits/comment-page-1/#comment-25321 Wed, 23 Mar 2011 16:54:00 +0000 http://blogs.reuters.com/felix-salmon/?p=7701#comment-25321 The US Government or the Wall Street Government?

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