Criminal Charges Expected Against BofA, Citi, JP Morgan Chase



Editor’s Note: I was sort of expecting this from the Obama administration. Like others I long suspected the Libor was rigged but it seemed like they were covering their tracks too well to be sued or prosecuted. What I was expecting was that some MAJOR action would be brought against the banks in a way that wouldn’t look political. The prosecutions directly in the mortgage scandal were a bit long in the tooth for it not to look like political timing. But Libor, closely tied to all the loans and Loan resets and all the derivatives brings us back to first base with England leading the case.
As I have stated before, it does not seem likely that the voting public will look kindly on any politician in bed with the banks. About the only thing our divided electorate can agree upon is that the Banks screwed everything up and pretty much did it intentionally. Running against the banks is the smartest political move regardless of where you are on the political spectrum. Obama, probably knowing all about this investigation but not able to comment about it until the story broke, now has a clear path to run against the Banks while Romney practically is a bank.
As the economy worsens, and it will, the blame for it is going to be laid squarely at the doorstep of the banks where it belongs. The strategy of blaming Obama for past administration errors and failure of leadership in the economy is blowing up in the face of Republicans who actually do have platforms that are electable. Their problem is like the Democrats who didn’t really talk about their core issues in past elections.

Obama will correctly be seen as leading the charge against the banks whom everyone now hates. The dominant issue of the campaign has been delivered to the incumbent wrapped in a paper bow.

A 33% Minimum Probability Of Criminal Charges Against JP Morgan In Lieborgate?

33 Responses

  1. Dont take this in a negative way. We are winning cases. The banks make sure the won cases are not publicized. The government and judges are not making it easy. The judges are the biggest blockade there is. They are enabling the stolen houses if they are corrupt. There are good judges just as their are good attonreys and good people. Just have to find them. Some are terrific.

  2. If the world was perfect the RIGGED LIBOR rate should breach the contract, however our government as usual is attempting to sweep this horrific crime under the table and state there will be no criminal prosecution for any of their buds. So every case is every man for himself and hope we have a good attorney that can out smart the judge who does not want to give a free house to the lower class, but a free house to the one percent upper class. We are dealing with orchestrated organized criminal corruption, the mafia at its best.

  3. red…blue….red….blue… stupid sheeple, politics are for dividing you.

  4. I see that David, Poppy, Shelley and Enraged have been keeping on their homework. Kudos Kids! And Thank You All for Sharing and Playing Nice! Many Good Blessings coming your way! Keep up the Great Work!

  5. Mediciines in the chickens their eggs farmed fish with the same medications. medicated beef, idodine taken out of breads by mandated orders and supplemented with toxic dhemical and floride in tooth paste and our water and what is in the chemtrails. Yes already happened happening and more for the future. Lack of Iodine causes nerve issues brain issues autism, demintia, all brain disorders and causes your body to hurt all over. The government took it out of everything but salt due to salt is a negative with a posititive and undoes the good of iodine unless it is left in natural salt block/crystal state. Additives in all commercial restruant dinners unless you ask for it to be left out. Makes you feel fuller like you had a bigger dinner than you had.

  6. @Poppy

    “All food products will be made/genetically altered and made available to the masses …”

    You forgot that in addition, those “foods” will be created and “pushed” in such a way that they will create health problems for people that will come to rely on medicines being produced by certain corporations (that Wall Street bets on)…—oh wait a minute—that’s already happened—DIABETES!!!

  7. Criminal charges against the bankers? Ha, Ha, Ha, Ha, Ha, Ha!
    For what? They control the wealth and DC. The next generation ought to be quite interesting: they can pull up your deed and if they like your place, they can forge paperwork and acquire it, with no prosecution. No punishment for this, it will continue and feed on itself. No end in sight.

    Jails are full of people, at taxpayer expense, that have done far less.

  8. The New World order: financial entities cannot be charged with felonies or crimes on or against society. They can take whatever is necessary to create a real estate alignment of certain land and assets, to maintain and control markets and ensure citizens are indentured to the maximum limit.

    Lying, cheating and scamming are now acceptable standards. Whomever does this best is honored and bestowed financial rewards, status and entitlements from working citizens, at their expense.

    Effective immediately: corporations are to extinguish smaller businesses to allow “monopolies” of larger corporations to manage, distribute and set prices for products to the masses.

    All food products will be made/genetically altered and made available to the masses by Monsanto, per new law with oversight by the FDA, with quality foods made for special consumers, priced accordingly, where fillers, substitutes and chemical additives will be used for food staples, at cheaper pricing for citizens who are not viable contributors to the tax base.

    Health care will be paid for by the citizens or be punishable with the 16,000 new IRS agents hired by the government at taxpayer expense and costs will be set by insurers and hospital administration. If necessary, care will be rationed to those whose finances are deemed irrelevant and minimally contributory.

    And last but not least, the justice system will not engage any prosecutions for corporate entities, only citizens who resist or disobey protocols set forth by the Congress, Senate or any governing body.

    Your patronage and support is greatly appreciated in the election.

  9. Look at this smirking and almost bursting out laughing Geithner, knowing he has pulled the black wool over all of us.

  10. Remember a famous movie clip: “the only good Indian is dead Indian”? Today that expression is probably most suitable to courts, banks, sheriffs, legislators, and all their accomplices…

  11. One judge just lost his job due to this crime. Judge Burns in the City of Auburn, just lost his job due to lack of funds. The city court house was voted to be shut down last week. All the cases are going to King County until they are lacking funds. The city waste management just called me today to tell me there is a work stoppage, therefore there will be no garbage pickup until hopefully next week, exact words from the recording on the phone. Hopefully! They have no idea. One of my customers told me she recieved the same call. Wage battle or lack of funds or both, is my guess.

  12. What about criminal charges against the Judges especially in California and Florida who decided to punish the borrowers the victims and not the Banksters the criminals? The Banksters are the criminals who allowed for this to happen.

    I guess the Messiah has not arrived yet? after all.


  13. sandy Weill in an emotional outburst.

    Fed reserve staff asserts that after extensive analysis Weill was actually referring to the fact he had to “bust up the [piggie] bank” to get exact change to pay the cab driver that morning. unnamed sources at the Treasury Dept muttered under their breaths in hallways “the old man has Alzheimers” while Tim Geithner Treasury Secretary screamed profannities and broke up office furniture—people passing in the hallway state with uncertinty the only thing that was intelligible was “f…..g S…O..B.. M F is going to F…Up my job at Gold…. ” The onlookers note that the words were indistinct and periodically interrupted by bouts of crying.

    the whitehouse was notified as to tim’s frsgile mental state and unofficial sources state emphatically—“yeah yeah—were working on the list but everybody keeps saying hell no i wont do it” “when asked about Elizabeth Warren, the unnamed sources responded witha gasp—I dont think Llloyd would let Mr President do that.”

  14. 2,000 Banks Should Sell Now, M&A Veteran Says
    Print Reprints Email . inShare.4.The worst of the credit crisis has passed, but many banks are still living on borrowed time.

    So contends Kamal Mustafa, the chairman and chief executive of Invictus Consulting Group in New York, which specializes in stress-testing banks.

    Mustafa says some 2,000 banks should be trying to find buyers. The Invictus chief knows a few things about consolidation, having served as the head of global mergers and acquisitions for Citibank, along with the investment banks BlueStone Capital and Wildwood Capital. Unlike many other deal-happy investment bankers, he has become concerned about banks that are acquiring mortgage portfolios, credit cards and specialty assets for the sake of growth.

    Below are excerpts — and warnings — from a July 20 conversation with Mustafa.

    What trends do you see from stress-testing regional and community banks?
    KAMAL MUSTAFA: There are two trends. One is a decline in loan volume. But more disturbing is that the new loans coming on the books have lower spreads, and this creates compression of yield.

    So for a bank to effectively be in a position to improve earnings, it ideally needs less competition within their geographical footprint and the ability to increase existing loans within their existing cost structure. This means bank or bank asset acquisitions.

    What is your take on the lack of M&A? Where is it headed?
    There are about 2,000 banks that are going to limp around with such low or negative returns over the next four years — barring a major miracle — that they don’t have a financial reason to exist. Those banks have to be assimilated into the marketplace.

    Banks facing bleak prospects need to recognize that capital losses, increasing regulatory capital requirements, and declining [loan] volumes and spreads will inevitably reduce their market value. Those are the banks that should be selling today. The sales would be at discounts to their existing capital but would still be at higher valuations than they are likely to get [in the future].

    For buying banks, they need to augment earnings and get their efficiency ratio up. I used to do a lot of acquisitions, and when we bought someone we looked at what particular assets or deposits we wanted to increase and their concentration within the target. Then we looked at how to unwind what we weren’t interested in and who would be interested in buying that.

    It was efficient because we had enough capital. In those days, growth was the name of the game. Today, no one has enough capital, and people want to grow profitability, not necessarily size. Given the diversity of lending [among] large national and regional banks and community banks, the most logical and efficient acquirers would be stronger community banks operating within the same geographical footprints as the target banks.

    How do you feel about banks buying loan portfolios or specialty assets?
    This is the one area in which I believe the regulators could be making a mistake. If I buy a portfolio of a bank in trouble, it is not going to sell the best loans. It will sell me the worst loans though it may not be classified as nonperforming. If I buy it, I’m going to discount the heck out of it. Hypothetically, I’d pay $70 for a $100 portfolio. By doing so, I created the appearance of profit and higher yield on the books. At the same time, I have bought a lot of junk and, over time, under stresses, that portfolio is going to start generating losses

  15. Now is the time to after them, particularly with pensions being hit. This will hit the judges and make them pay a lot more attention…

    Go after the pre-petition or pre-recording behavior…assignments will evidence what you know to be true.

    Fraud has 5 elements, they can be proven. Use the legal language.
    Use breach of contract issues..relatively simple, stay out of things you do not understand and cannot prove without discovery. No expert, but have seen many stumble and fall over these issues, myself included.

    Sub-prime has many categories: Libor rate, no documentation, income, appraisals…they can be used to prove the fraud. Go back to your original documents and get the entire work product from the closing attorney, it is yours. Go after the behavior of the Originator, then get to the assignments, etc…many things have happened, lack of funding, intentional defaults for insurance, altering applications, fake appraisals, no trust for investors, copies of notes sold multiple times (making you subject to pay the loan more than once, where quiet title will not work).

    The other piece, contract law; originators like New century, Countrywide for example, borrowed lines of credit to fund loans. Having been in litigation; they cannot prove without strict trust adherence, which loans are which. Many of these guys defaulted on their lines of credit and your loan may have been seized or given as collateral for THEIR default, not yours. Remember, you did not sign a contract with an originator, they did! Then there is the “consideration” in a contract, did they fund the loan and how did they perfect the lien? There is no substitute for homework.

    Go back to the beginning, scour every detail (dates, times, fax numbers, tracking numbers, MIN numbers, loan numbers, etc…) You will find the truth!

    No legal advice here, just informational excerpts from numerous expensive, tedious trials.

  16. Contact your senator immediately and tell to vote yes or else. That may be the only chance we get in a long time.

    House OKs ‘Audit The Fed’ Bill
    By Benny Martinez|7/25/2012 3:36 PM

    The House on Wednesday overwhelmingly approved legislation that would allow for a full audit of the Federal Reserve.

    The 327-98 vote defeated a two-thirds majority vote required under suspension of the House rules and represents a rare legislative win for the bill’s author Rep. Ron Paul (R-Texas), a longtime opponent of the Federal Reserve.

    The Federal Reserve Transparency Act, H.R. 459, gives Congress the authority to dig deeper into the Fed’s monetary decisions. The current rule allows the Government Accountability Office to audit the Fed with the exception of its monetary policy decisions.

    “The bill essentially removes the prohibitions against a full audit,” Paul said on the House floor. “We should know what kind of transactions there are.”

    Some of the bill’s biggest opponents argued that the Fed would become vulnerable to political pressure as a result of deeper audits, but Paul dismissed that notion.

    Said Paul,” It’s very political when you have a Federal Reserve that can bail out one company and not another.”

    The bill now heads to the Senate where there has not been any indication of support or opposition. The White House has also been mum on the issue.

  17. @dcb

    Despotism masquerading as Democracy..

  18. Woo hoo, been waiting forever to see CRIMINAL in the headlines!

  19. The libor scam I mean

  20. Could this be a third party beneficiary issue?

  21. @dcb

    i was having that exact conversation with my husband this morning! All of a sudden the headlines are all over the “bad banks” thing—like this:

    “Sanford “Sandy” Weill, former CEO of Citigroup, said on CNBC’s “Squawk Box” on Wednesday that the big banks should get broken up.
    In a stunning reversal, a former big bank CEO who crusaded for policies that helped create the so-called “too-big-to-fail” banks now says we need to break up the banks…”

    “…Weill’s office once had a wooden plaque with his portrait that read “The Shatterer Of Glass-Steagall.”

    “I think that the earlier model was right for that time… I don’t think it’s right anymore,” he told CNBC. “I think that this system is really immobilizing the banking system.”

    OMG…wow. EVERYTHING is a set-up…and EVERYTHING is rigged.

    The press is 100% manipulated…according to the politics of the day.

  22. SOOOOOOOOOOOOOO, when do the LAWSUITS begin for Mortgage Holders with Interest Rates ( index’s ) tied to LIBOR??????

  23. Romney and his wife make millions off our pain from investments they put into someoneelses hands to make it look like they dont have anything to do with the choice the investors make. They are directly imbedded with the banksters. AND ARE NOT SUPPOSE TO BE HELD ACCOUNTABLE FOR IT, SOMEONE ELSE DOES THE DIRTY WORK FOR THEM. MY HUSBAND BELIEVES THIS BS! He believes this is not the Romneys fault they make so much money through the mortgage business, it is someoneelse investing for them so they supposedly dont know what is going on. Ummmmhum! I dont believe it for a minute. Not that at all! Dont tell me either of them dont know how their money is being invested and made.

  24. @ALL
    There is a saying roughly along the lines that you cant fool all the people all the time—–but the financial instition watchers —-the critics that are part of the “Free Press” ; these are people who get paid by the word to sensationalize oftentimes otherwise boring information are contributors to the business of fooling the people–indeed they lead the charge.

    And much of the time they are not all that free–nor clean of hands themselves. a perfect example is FOX and WSJ—Murdoch press. Well, ok, nonbody expects these two operations to beat the drums on the sort of crap that occured in the UK with their sister publication–now closed. Apparently, based on more revelations in recent days, everybody at the Murdoch press in UK from junior reporter to senior editor and ocasional wife-swapping partners with the UK prime minister and wife were intimately involved with hacking email and telephone calls. The people who’s privacy was interrupted routinely ranged from the members of the royal family to average eople who were of interest to that day’s story. along the way they siezed communications from members of the UK govt and anybody else where dicey info might be used to the advantage of the murdoch media empire and political king-making machine.

    The range of charges goes from just plain breach of privacy to outright extortion of political figures—that wouldv made J.edgar Hoover proud. The really nasty part of this all is the fact that the Murdochs were using this info-gathering machine that swiped info on literally thousands [known] in the UK to feed the publication machinery that heavily influenced the political and ECONOMIC governance of the whole country. and notably the economic impact of the City of London goes far beyond the shores of the UK. The LIBOR [london interbank lending rate] underscores this fact.

    The lead guy on this setup in London was so good at the job that they put him in chage of WSJ when Murdoch acquired that vital and previously FREE press. Now in the tradition of the FREE PRESS in this country way back when, this fact should have lit off a huge amount of controversey in the US too. After all FOX and WSJ are far bigger contributors to Murdochs bottom line that the UK rag.And FOX in particular is a ground-breaker in crossing the line between press reporting facts and being a televised form of one-sided political
    propaganda. Are we to believe that the editor of WSJ was reformed during his flight across the Atlantic. Or that electronic interception works better in the UK than the US? Or that politicians and economic leaders in the US are less corrupt or less subject to personal extortions
    than those in the UK? Intuitively one would think not—-but apparently intuition misses the mark here. In the US the Congress and the supposed remaining FREE PRESS —–say Washington Post and NYT just arent hammering on this issue as is occurring in the UK.

    So maybe the FREE PRESS isnt as free as we might want to believe. what relevance does this have to LIBOR manipulation? Well since it is obviously being used to reinforce the re-election of the current incumbant dems—-it just had to come out. And since it is mind-boggling in complexity–it is perfect for this political usage. as long as the headlines read LIBOR MANIPULTION=BAD BANKS—and everybody already knows banks are bad–it really is about as innocuous as you can get and still be used to affect the re-election and generally put on a good show without causing any lasting harm.

    Immediately after the election, the papers will simply stop headlining it–it will be boring in details—and people will nicely forget all about it–because it is of little economic consequence to Joe the Plumber.

    In 2010 we had the same thing. The robosigning scandal was well-known to the NYT etc in March 2010–LPS already had admitted problems in their 10K for 2009 —but the papers sat on it like eggs rotting for use just before election. Robosigning was a big deal in newspapers until after election–then it receded until the bogus settlement was announced and then it was old news and lost in the noise of these temporary new scandals. Frankly I would rather hear more about about what Murdoch did to extort US economic decision makers and politicians and a little less about the LIBOR —and lets get serious no bankers of consequence are going to jail over LIBOR—how could prosecutors educate a jury on that?

  25. I say, WE, The people go Arrest all these scumbags. It is our duty, and also get rid of our FAKE president, and all his phucked up EO’s.

  26. In 2006 I had a GMAC loan that was at Mers when I got a pick-a-payment World Savings bank loan now Wells Fargo Home Mortgage. I am in foreclosure and fighting this through a law-suit in Ca. After looking my documents over I discovered on the GMAC loan that at the bottom left side is the fine typed small print “LIBOR”. I am looking for any suggestions or comments at this point and with my new found discovery does this mean anything that will help me get out of this wrongful attempt to steal my home by wf? mk

  27. “Romney practically is a bank.” Hey, banks are people too!

  28. Well now this goes to the Senate. I wonder if it passes, does the fed get to audit itself like all the rest of the banksters did?


    Now we need the LIBOR report on the financial crisis.


  31. “Obama, probably knowing all about this investigation but not able to comment about it until the story broke, now has a clear path to run against the Banks [but still shows no indication that he will…] while Romney practically is a bank.

    As the economy worsens, and it will, the blame for it is going to be laid squarely at the doorstep of the banks where it belongs. The strategy of blaming Obama for past administration errors and failure of leadership in the economy is blowing up in the face of Republicans who actually do have platforms that are electable. Their problem is like the Democrats who didn’t really talk about their core issues in past elections.

    Obama will correctly [Where? When? How? By whom?] be seen as leading the charge against the banks whom everyone now hates. The dominant issue of the campaign has been delivered to the incumbent wrapped in a paper bow.”

    Neil, you seem to give a lot of credit to Obama. Last I checked, Geithner and Holder were still there and he was still listening to Larry Summer… I still haven’t see Obama calling on Bill Black or Galbraith. What am i missing?

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