Banksters Finally Face Fraud Allegations

The banksters’ blatant fraud in the run-up to the financial crisis hasn’t gone unnoticed to one top lawyer in the nation. New York Attorney General Eric Schneiderman – who also chairs the President’s mortgage fraud task force – filed a civil suit against JP Morgan Chase for “widespread fraud in the sale of mortgage-backed securities.” This is the first legal action brought against the banks by this taskforce.

Most of the allegations are actually again 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.

Just like banksters at Goldman Sachs, Bear Stearns’ banksters openly bragged to each other about how bad the deals were and how much their customers are getting screwed. Officials within Schneiderman’s office are suggesting the JP Morgan Chase is just the first in a long line of banks that could be hit with similar lawsuits.

Yes, hitting the banks with lawsuits for their fraud is a good thing. But we need to go a step further – instead of civil lawsuits – we need criminal lawsuits. The only way to stop these billionaire predators from crashing our economy against – is to send some suits to jail.


stecoop01's picture
stecoop01 10 years 25 weeks ago

Just a drop of water in the ocean...and showboating at that. Nothing will really be done about the crimes the banksters commited.

chuckle8's picture
chuckle8 10 years 25 weeks ago

It seems like the wrong time to be showboating. The democrats need all the money they can get from wall street.

Don't be so pessimistic, Remember a journey of a 1000 miles begins with a single step.

Elioflight's picture
Elioflight 10 years 25 weeks ago

Are they finally being called to account because wealthy clients were screwed or is someone finally standing up for the rest of us--who probably got stuck with the "junk" anyway? 401(K)s are a racket.

chuckle8's picture
chuckle8 10 years 25 weeks ago

Thom, I think you need to take another at Paul Ryan’s social security plan. It is a terrible plan, but for reasons you have not yet presented. You have presented that it is a plan to get Wall St. to fund the Romney/Ryan campaign, but you have not discussed how strong the catnip is. Michael Hiltzik in the Aug 23, 2012 edition of the LA Times has presented details that I think you should discuss on air (and interpret for the rest of us). The Ryan Social Security essentially says take up to 80% of your social security contributions and invest in Wall St without fear of losing anything. The plan has an FDIC type of safety net. The result is all the losers on Wall St will just increase our national debt. Peter Ferara said something like this on your program when you kept asking him who will pay for the losses. He avoided answering you in any detail.

jim mcdonagh's picture
jim mcdonagh 10 years 25 weeks ago

I agree with you in fact, Jamie Dimon is slated to be the new fed chairman when Obama is re-appointed POTUS

bobbler's picture
bobbler 10 years 25 weeks ago

i believe this lawsuit was filed against the bank because dem and rep are not the same.. Obama is part liberal and part conservative. the lawsuit was, IMHO, the liberal side finally shining thru. And it's about friggin damn time too.. As for funding, DEMs need to show some backbone, pod we will all forever be if business' bitches.. When DEM'S win elections anyway, big business will still donate to the front runners, no matter who they are (although in this time of extremes it may not look that way much at the moment).

jim mcdonagh's picture
jim mcdonagh 10 years 25 weeks ago

Obama has also promised to scale back [ turn over to wall street] social security . I like to see someone "brace" him on this

jim mcdonagh's picture
jim mcdonagh 10 years 25 weeks ago

$5.3 billion and rising is not enough money to run an election?

jim mcdonagh's picture
jim mcdonagh 10 years 25 weeks ago

These charges are an election scam like the promise to look at legalizing dope smoking, and will quietly disappear after Obama is re-appointed and Jamie Dimon takes over as head of the fed.

2950-10K's picture
2950-10K 10 years 25 weeks ago

Unfortunately I think too big to fail is synonmous with too big to least in a meaningful way. We need to focus on why," We the People," allow a few among us to become so rich and powerful, they in turn become a giant black hole of greed sucking away all of the freedom and liberty the rest of us are trying so hard to preserve.

No matter what the financial penalty is, the Banksters will steal it right back two-fold. We all end up paying for their legal expenses one way or another with socialized bailouts, 401k frauds etc. It's similar to how we all end up paying for the Koch's hatred of Democracy media bills..... at the gas pump, another big FRAUD!

SteveS's picture
SteveS 10 years 25 weeks ago

Schneiderman has always been for meaningful penalties for the criminal banksters. He and AG Biden in MD were holdouts when the Justice Dept. wanted to give the criminals a mere slap on the wrist.

David Abbot's picture
David Abbot 10 years 25 weeks ago

What Obama meant when he said, "I can't do this by myself, you have to support me," is this: Obama cannot and in fact will not even try to reign in the corruption, unless there are so many people tens of millions of people demonstrating in the streets that our government fears an armed or a passive revolution and the media can't ignore it without looking like a bunch of incompetent putzs, THEN, with that totally unstoppable impetus behind him, Obama- a man who has never been noted for his political courage in any situation, will allow himself to be forced to do the job he was claimed he had the cojones to do.

Frankly, I think Michelle Obama would be more likely to do the job than Barak. I think she has a bigger pair than he does. He is certainly welcome to prove me wrong.

bobbler's picture
bobbler 10 years 25 weeks ago

I feel it's much more about obstruction, than cojones.. OB needs our help to show support, rather than bailing bc OB is not as liberal as we like. Abandoning OB like helping Romney.

Mikewill's picture
Mikewill 10 years 25 weeks ago

Nothing will happen Thom, because if Obama doesn't have the courage to put liars, cheats and frauds in jail - no one will. Citizens United (which is really Corporations United) and the GOP says corporations are people. Well, if they were - plenty of them would be locked up.

I totally support Obama and I fear the GOP agendas around this country, but I am deeply disappointed in the way some things have gone this past 4 years. It perpetuates apathy.

Mikewill's picture
Mikewill 10 years 25 weeks ago

Chuckle8, I hear and agree with your parable of a single step. I'm just tired of waiting for that very first step............

George Reiter's picture
George Reiter 10 years 24 weeks ago

The banking laws that are being violated with Civil Suites only become part of doing business. The Banksters write off these suites as part of their "bottom line". We need real enforcement with Criminal Suites and putting the violators in jail. Just like the Voter Suppression being enacted in so many States by the Republicans, the Caging Laws being violated by the Republicans will only be stopped by Criminal Prosecution.

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