Big banks being sued in US and in Italy !

[dixiegrrrrl]

Dare we hope the Kharma train has arrived?
The problem with globalization is one can be sued all over the gobe..heh heh.

Federal Home Loan Bank Sues Over Mortgage Securities

The Federal Home Loan Bank of San Francisco sued nine securities dealers alleging they misled it about the credit quality and risks of loans behind $19.1 billion in private-label residential mortgage-backed securities.

Units of Credit Suisse Group AG, Deutsche Bank AG, JPMorgan Chase & Co. and Bank of America Corp. were among the defendants named in two securities complaints filed yesterday in state court in San Francisco, according to the court’s Web site. The bank is seeking to rescind its purchases of the securities, which were rated AAA “based on the information provided by the securities dealers,” the Federal Home Loan Bank said in a statement on its Web site

The dealers made false statements or omitted important information about the loans that backed the securities they sold, the bank alleged in its complaints. The bank claims the dealers failed to disclose that appraisals were biased upward on properties that secured mortgage loans, that underwriting guidelines were ignored by originators and that loan to property value ratios were exaggerated.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=anu5joxnrRUk

AND

4 Banks Face Trial in Italy Over Interest-Rate Swaps
March 17, 2010, 4:25 pm

An Italian judge on Wednesday ordered JPMorgan Chase, Deutsche Bank, UBS and a banking unit of the German company Hypo Real Estate Holding to stand trial for fraud in their handling of interest-rate swaps acquired by the city of Milan in 2005, The New York Times’s Eric Sylvers reports from Milan. The trial of the four banks, as well as 11 of their employees and two former city officials, will begin May 6.

http://dealbook.blogs.nytimes.com/2010/03/17/4-banks-face-trial-in-italy-over-interest-rate-swaps/

[HeresyLives]

1. I see this as a huge benefit of globalization.

:hi:

[bemildred]

2. Look, "Dealers" are salesmen, they lie, they lie all the time, it is a job skill. nt

[aquart]

3. Otherwise known as "fraud".

[bemildred]

4. That's when you can prove it and get a prosecutor interested. nt

[Po_d Mainiac]

5. Re: story #1....Any doubt the losses are hedged with swaps

written by AIG? So bottom line, the banksters will lose the judgment, but not be out a red cent.

The headline will read "AIG gets another $20 Billion bailout"..just a matter of when.
:scared: