Drudge Retort: Red Meat for Yellow Dogs

New York Attorney General Andrew Cuomo charged Bank of America, former Chief Executive Kenneth Lewis and former Chief Financial Officer Joe Price with fraud for allegedly misleading shareholders about the bank's acquisition of Merrill Lynch. Separately, the Securities and Exchange Commission said the largest U.S. bank agreed to pay a $150 million civil fine and strengthen disclosure and corporate governance to settle lawsuits alleging poor disclosure of Merrill's losses and bonus payouts.

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Good!

A nice fine in the criminal case, say, the equivalent of their accumulated wealth, would be in order. Return it to the shareholders.

hopefully this is just the tip of the iceburg.

Cuomo will probably be the next Gov of NY. Good for him. Good record of prosecuting scumbags like these two.

Encouraging, but I can't help but think that Cuomo is the 100 level version of Elliot Spitzer.

Get the people since you can't get the Corporation. Big deal. Lets see them go after Goldman-Sachs, Morgan-Stanley, Merrill-Lynch & Smith-Barney. All they did to those brokers for running the PRIMEX trading scam for a year on NASDAQ, was slap them with a $26 million fine, with no admission of guilt. Meanwhile, they pocketed billions. Worse they're still doing similar trading schemes, what they call "making the market and providing liquidity". Humans can't get away with this sort of bullshit, they face jail.

Lewis's defense is Bernanke/Paulson made me do it, under threat of being fired.

#4 | Posted by AMERICANUNITY

Cuomo will probably be the next Gov of NY. Good for him. Good record of prosecuting scumbags like these two.
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Thats good for Texas, because a Liberal like him drive more jobs out of the state.

Also the Fees on my Bank of America account just went up, I wonder why.

Cuomo should have indicted Tim Geithner and Ben Bernanke. They're the ones who put the gun to the head of BOA in the first place, and made them overpay for it.

BOA should have fought back. Next time, the banks should know better: if the Tax-Dodgin' Timmy shows up and needs a favor, you need to tell him to go screw himself. Funny how the Dems now are saying you can't have banks and investment banks held by the same company, just a year after Tim Geithner was saying that in order to save the system, Bear Stearns needed to be taken over by JP Morgan, and Merrill had to be snapped up by BOA. Now the Obamites want to pretend that their Treasury Secretary and Fed bank head had nothing to do with it.

A nice fine in the criminal case, say, the equivalent of their accumulated wealth, would be in order. Return it to the shareholders.

It's not a criminal case.

Cuomo should have indicted Tim Geithner

I have a feeling Timmah doesn't have a lot of time left and that our President is going to cut him loose soon. If/once that happens, I think it would be interesting to see if Cuomo tries to take that angle.

Everytime Cuomo sues Wall Street my investments take a dip.

I love the guy.

BOA should have gone to trial, and subpoenaed Bernanke and Geithner. That would have at least made for good theater. I'm no fan of BOA, but I think that Tim Geithner is the most breathtakingly imcompetent figure in American public life. And in an administration that includes Obama, Emmanuel, Holder, and Biden, that's a pretty high hurdle.

"Everytime Cuomo sues Wall Street my investments take a dip."


Generally speaking, every time fraud and deception are uncovered on wallstreet there's a dip in the market, and in the value of that particular stock. That's because investors realize that value has been misrepresented and/or overinflated. The dip is a correction and part of the gamble we take when we make investments. Investigations and prosecutions, when warranted, are an essential component to the health and wellbeing of the financial system.

Obama, Emmanuel, Holder, and Biden

I don't think the first 3 are as incompetent as you would like to believe. With that said I am no big fan of Holder, and Biden is a ditz.

"Generally speaking, every time fraud and deception are uncovered on wallstreet there's a dip in the market, and in the value of that particular stock. That's because investors realize that value has been misrepresented and/or overinflated. The dip is a correction and part of the gamble we take when we make investments. Investigations and prosecutions, when warranted, are an essential component to the health and wellbeing of the financial system."

Not only that but when you let the crooks have free reign, it ends up causing a "dip" anyway when the shit eventually hits the fan.


#16 | Posted by Sully

"Generally speaking, every time fraud and deception are uncovered on wallstreet there's a dip in the market, and in the value of that particular stock. That's because investors realize that value has been misrepresented and/or overinflated. The dip is a correction and part of the gamble we take when we make investments. Investigations and prosecutions, when warranted, are an essential component to the health and wellbeing of the financial system."

Not only that but when you let the crooks have free reign, it ends up causing a "dip" anyway when the shit eventually hits the fan.
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Are they changing the behavor? Because if their not, than I'm paying for the Wall Street crook, and paying for the law suit with no real change.


With the money flowing through Wall Street ther will always be crooks.

I'm all for oversight (which our government does a lousy job) on Wall Street, but my beef with Cuomo is I don't get the impression he is making a big difference.

He's just doing it to make a name for himself at the expense of my portfolio.

Wall Street is a ponzi scheme. No one should trust these greedfuckers. They aim to steal everyone's 401Ks and Social Security and Medicare too. The real story behind the privatization of everything is reversion to a medieval social and economic strucutre, with excess for CEOs and debt peonage for everyone else. That always where Capitalism ends up. You don't need to be Keynes to undertand this, anybody that played Monopoly experiences the same thing. So far, they're right on track.

The Best Democracy Money Can Buy, that's what we have for a fucking Government.

"Wall Street is a ponzi scheme."

The value of stock does seem to work like the value of collectibles alot more than it reflects the actual return one derives from owning a share in the given company.

These charges are complete bullshit. Lawyers will make millions though. This is just to give him good press so Cuomo will win the race for Governor.

Just like when Spitzer went after Greenberg from AIG, Most of those charges were dropped. I believe there were 20 charges. All but two were dropped and the AG has not moved on the remaining charges.

I am sure after Cuomo is elected these charges will be dropped too

The charges are not bullshit, though they clearly are targeting, once again, low men on the totem pole.

On the one hand the highest level of Constitutional Law, time and money will be allocated for white collar crime, making it difficult, if not impossible to prove. The Prosecutor will have to prove intent, while the defense will argue their client was merely stupid. The easy fix of course is to invoke rackateering laws, which is a legitimate parrallel.

On the other hand Coakly, Guliana and others have had no problem getting convictions for poor accused day care workers accused of animal sacrifice and bathroom rape of children during working hours.

Lewis's defense is Bernanke/Paulson made me do it, under threat of being fired.

#7 | Posted by nutcase

Or being shuttered and closed. Funny how everybody is overlooking this very valid point. It's called a shotgun wedding, and is VERY COMMON practice of regulators. And with many banks on the ropes at that time, a very likely scenario.

Anyhoo Andrew Cuomo has done some very positive things for investors, like demanding ARS be repurchased at face. I am forever indebted to his wise course of action with those auction rates notes.....

In 1987, ML was "asked" by the Federal Reserve to BUY a specialist firm on the NYSE that went out of business of Black Friday. ML spent the last 10 years trying to sell it. ML ended up losing billions in syndicate deals because of conflict on interest.

I am sure they would have bought the specialist firm if the FED didn't "ASK" them to buy it.

Exactly timci the type of takeout that the regulators do in times of strife.

My follow up question for paul Volcher is what is his definition of 'too big' to fail. Exactly what size is he calling too big. if he can't articulate it, seems funny even broaching the subject.

AND if he does knock them down to size, who is he going to call in to help with one of these takeovers next time. The FDIC and liquidate all marginal banks. (BTW that would close 1/3 of all are banks right now)

Or would he call up the Deutche, BNP Sanatnders, Barclays Chine Indust bank etc for help....cause he broke up all the US jpmorgan types???

During a recession when New York is having problems with unemployment, keeping jobs, encouraging businesses to move to your state, does it make any sense to start suing Wall Street?

Andrew Cuomo should write a book on how to move jobs from the North to the South.

"During a recession when New York is having problems with unemployment, keeping jobs, encouraging businessnes to move to your state, does it make any sense to start suing Wall Street?"

Therein lies the problem. Some believe that Wall Street should be allowed to break the law bacause prosecuting them might affect jobs or one's portfolio. That mindset is proof that the system is broken.
Prosecute criminals and let the chips fall where they may. Don't count on criminals for your economic well being. If the criminals move south, prosecute them in the south. The idea is to eliminate the criminal element from our financial system.

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