Wed Oct 3, 2012, 12:52 PM
thomhartmann (3,484 posts)
Thom Hartmann: FINALLY...a politician who'll stand up to the Banksters...
The bankstersí blatant fraud in the run-up to the financial crisis hasnít gone unnoticed by one top lawyer in the nation. New York Attorney General Eric Schneiderman - who also chairs the Presidentís Mortgage Fraud Task Force - filed a civil suit against JP Morgan Chase for ďwidespread fraud in the sale of mortgage-backed securities.Ē This is the first legal action brought against the banks by this taskforce. Most of the allegations are actually against failed bank Bear Stearns, which was bought by JP Morgan Chase just before the economy went into meltdown in 2008. According to the lawsuit - banksters at Bear Stearns knowingly sold defective loans and mortgage backed securities and kept their investors in the dark about how crummy these deals were. And just like banksters at Goldman Sachs, Bear Stearnsí banksters openly bragged to each other about how bad the deals were and how much their customers are getting screwed. And Bear Stearns made big money off the fraud.
At the height of the housing bubble - between 2003 and 2006 - Bear Stearns generated $212 billion in mortgage-backed securities. Unfortunately all these securities were...to use a more delicate term that the banksters themselves used...crap. And when the housing bubble went bust - so, too, did Bear Stearns - which was then bought by JP Morgan Chase - the bank that is now liable for all that fraud. Officials within Schneidermanís office are suggesting that JP Morgan Chase is just the first in a long line of banks that could be hit with similar lawsuits. Yes, going after the banks with lawsuits for their fraud is a good thing. But we need to go a step further - instead of just civil law suits - we need criminal prosecutions. Back in 1983, Ronald Reagan deregulated the Savings and Loan banks, and, predictably, the hustlers among them started committing fraud.
Three years later, in 1986, the S&L industry collapsed because of that fraud - so Reagan nationalized the banks, screwed their stockholders, fired all their management, and sent about a thousand banksters to jail. I never thought I'd agree with Reagan on anything, but he was right - the only way to stop these billionaire predators from crashing our economy again - is to send some suits to jail. Or you could employ the Mitt Romney strategy - and give one of them a job as Treasury Secretary.
The Wall Street Journal reports that Romneyís list of potential nominees for Treasury Secretary includes this guy - John Thain. So, who is John Thain? Well, John Thain is the former CEO of failed bank Merrill Lynch - which was purchased by Bank of America during the financial collapse for pennies on the dollar. In 2008 - Thainís bank lost $11 billion - leaving it unable to operate without outside help. At the same time, Thain lobbied the bankís board of directors to hand him a $10 million bonus for presiding over the bankís ruin - and he got it, and he took it! In other words - heís the perfect guy for a Mitt Romney administration - someone who disembowled his own businesses - laid off workers - racked up debt - and then walked away scott-free with an extra ten million dollars in his pocket. Itís what Romney did to businesses taken over by Bain Capital - itís what Thain did at Merrill Lynch - and itís what they both will do to America should Mitt Romney win in November.
The Big Picture with Thom Hartmann on RT TV & FSTV "live" 9pm and 11pm check www.thomhartmann.com/tv for local listings
6 replies, 1527 views
Thom Hartmann: FINALLY...a politician who'll stand up to the Banksters... (Original post)
|sabrina 1||Oct 2012||#3|
|sabrina 1||Oct 2012||#5|
Response to thomhartmann (Original post)
Wed Oct 3, 2012, 01:22 PM
xtraxritical (3,576 posts)
1. Capitalist vultures eating dead flesh...
Thain lobbied the bankís board of directors to hand him a $10 million bonus for presiding over the bankís ruin - and he got it, and he took it! In other words - heís the perfect guy for a Mitt Romney administration - someone who disemboweled his own businesses - laid off workers - racked up debt - and then walked away scot-free with an extra ten million dollars in his pocket. Itís what Romney did to businesses taken over by Bain Capital - itís what Thain did at Merrill Lynch - and itís what they both will do to America should Mitt Romney win in November. >unquote
Carrion eating, capitalist vultures like Romney know how to manage debt! LOL
Response to AnotherMcIntosh (Reply #2)
Wed Oct 3, 2012, 02:16 PM
sabrina 1 (62,325 posts)
3. He has been great on this issue. I hope others will follow his example and at least
file Civil Suits. I agree that criminal prosecutions are necessary but we keep hearing that there was no fraud, just immorality or whatever. However, the discovery phase of a civil suit could end that claim once and for all. So while it's not the best solution to the massive fraud, it is a first step.
Good for Schneiderman!
Response to AnotherMcIntosh (Reply #4)
Wed Oct 3, 2012, 02:32 PM
sabrina 1 (62,325 posts)
5. Yes, that would be progress. And who knows, sooner or later he may have to
when revelations of actual crimes surface in a legal setting. We can dream!