Citigroup agrees to $285 million civil fraud penalty

From The New York Times:

WASHINGTON — Citigroup has agreed to pay $285 million to settle a civil fraud complaint that it misled investors in a $1 billion derivatives deal tied to the United States housing market, then bet against the investors as the housing market began to show signs of distress, the Securities and Exchange Commission said Wednesday.

As in an earlier case involving Goldman Sachs, Citigroup handpicked the assets that the derivatives would be based upon. It sold those derivatives to its own trusting clients, earning a handsome reward for the service, then turned around “shorted” its own securities, in effect placing bets that they would fail.

As the Wall Street Journal reports, one Citi trader bragged in an email at the time that the portfolio was “possibly the best short ever.” When that bet proved correct, the company netted yet another handsome profit.

As the Times reports:

The derivative securities lost value remarkably fast. After the deal closed on Feb. 28, 2007, more than 80 percent of the portfolio was downgraded by credit-rating agencies in less than nine months. The security declared “an event of default” on Nov. 19, 2007, and investors eventually lost hundreds of millions of dollars, the S.E.C. said.

Citigroup received fees of $34 million for structuring and marketing the transaction and realized net profits of at least $126 million from its short position. The $285 million settlement includes $160 million in disgorgement plus $30 million in prejudgment interest and a $95 million penalty, all of which will be returned to investors.

But of course, nobody’s going to jail over this, and I guess that’s only fair. After all, they only did it because Barney Frank MADE them do it.

– Jay Bookman

287 comments Add your comment

md

October 19th, 2011
5:02 pm

“But of course, nobody’s going to jail over this, and I guess that’s only fair. After all, they only did it because Barney Frank MADE them do it.”

But don’t see too many jumping up and down about this current DOJ not doing anything………..

md

October 19th, 2011
5:02 pm

Instead, they want 4 more years of the same…………..

Welcome to the occupation (Trotsky)

October 19th, 2011
5:04 pm

As in an earlier case involving Goldman Sachs, Citigroup handpicked the assets that the derivatives would be based upon. It sold those derivatives to its own trusting clients, earning a handsome reward for the service, then turned around “shorted” its own securities, in effect placing bets that they would fail.

Sounds like capitalism working just like it’s supposed to, if you ask me.

Welcome to the occupation (Trotsky)

October 19th, 2011
5:05 pm

md: “But don’t see too many jumping up and down about this current DOJ not doing anything……….. ”

Uh huh. Uh huh, are you starting to get the picture now? Why WOULD the DOJ do anything? It’s part of the same elite class, after all.

Joe the Plutocrat

October 19th, 2011
5:08 pm

yep, nobody’s going to jail, but Citi employees and Citi shareholders will absorb the “fine”.

md

October 19th, 2011
5:09 pm

“Uh huh. Uh huh, are you starting to get the picture now? Why WOULD the DOJ do anything? It’s part of the same elite class, after all.”

And if that’s the case, why would anyone vote for Obama for another term…….seems to me folks would keep throwing them all out until we find a decent one……..if there is such a thing.

md

October 19th, 2011
5:10 pm

“yep, nobody’s going to jail, but Citi employees and Citi shareholders will absorb the “fine”.”

No, the consumers (taxpayers) will eat that too……………..

Adam

October 19th, 2011
5:11 pm

md: if there is such a thing.

There’s the rub….

Matti's Calculator

October 19th, 2011
5:13 pm

I’m guessing those of us whose equity and retirement funds are in the toilet because of these kinds of crimes aren’t going to see a dime of restitution, are we? Yeah, dealing with bailed out banks right now that have no intention of using that money to help the people whose tax dollars bailed them out. **expletives deleted** And people ask me, “Gee, why can’t you ever sleep at night, Matti?” **expletives deleted**

Thomas

October 19th, 2011
5:16 pm

All the more reason that small to mid size non public companies will be the (growth) employment engine of the future. Public companies are run now by the execs and the board for the execs and the board.

getalife

October 19th, 2011
5:16 pm

They should have fined them a billion for the deficit.

“LAS VEGAS – Gov. Rick Perry of Texas said Wednesday that he would propose a flat tax next week as part of a tax overhaul program, signaling a new effort to separate himself from Mitt Romney and the rest of the Republican field.” NYT.

TaxPayer

October 19th, 2011
5:21 pm

And if that’s the case, why would anyone vote for Obama for another term…….seems to me folks would keep throwing them all out until we find a decent one……..if there is such a thing.

Because if it were not for Obama, what!!! Hell yes, I’ll vote for Obama over anything the GOP has put out there or is likely to put out there. If McCain had been voted in, we’d have his top economic adviser, Phil Gramm, telling us all about the wonders of derivatives and how they will save the world…

Traneaya

October 19th, 2011
5:25 pm

Window dressing. You can be sure Citi will find a way to recover that $285 mill lickety-split. A new fee, a little accounting legerdemain. Voila!

AmVet

October 19th, 2011
5:28 pm

Another slap on the wrist as the nations corporate crime wave rolls merrily along, steamrolling innocent victims.

And just the cost of doing business for one of the members of the most infamous crime syndicate in the world.

I feel sorry for Mets fans who have to go into a stadium named after these thieves.

But as the ever astute and always courageous Herman says, “Do NOT blame Wall Street. DON’T blame the big banks.”

Of course not…Nobody made them steal other people’s money…

josef

October 19th, 2011
5:31 pm

$285 million? A slap on the wrist.

pogo

October 19th, 2011
5:33 pm

Big Banks suck. Keep it local.

Harry Reid is one willowy voiced moron. He says that the problem is there are not enough government jobs (which are totally funded by private-sector tax paying jobs). How many of those tax paying private sector jobs have we lost in the last three years? Millions maybe?

TaxPayer

October 19th, 2011
5:38 pm

Adley H. Abdulwahab, 36, was part owner of A&O Resource Management, which ran a family of hedge funds accused of cheating some 800 investors out of their savings. Earlier this week, his co-defendant and a founder of the firm, Christian Allmendinger, 40, received a 45-year sentence.

“Having wiped out the life savings of many of their victims and stolen funds marked for retirement, Mr. Abdulwahab and Mr. Allmendinger appropriately now face significant prison terms,” Lanny A. Breuer, assistant attorney general of the Justice department’s criminal division, said in a statement.

The penalties, handed down by Judge Robert E. Payne of the Federal District Court in Richmond, Va., underscored the growing severity in white collar sentencing. Gone are the days of “‘Club Fed,”‘ a reference to the minimum-security federal facilities where corporate criminals would serve short stints in relatively comfortable quarters.

Indeed, over the last year, federal judges have imposed decades-long sentences on a string of nonviolent criminals. Lee B. Farkas, a former mortgage company executive, received a 30-year sentence earlier this year for a fraud scheme. Lawrence Duran fared even worse, getting a 50-year sentence for his role in a $205 million fraud.

As long as the proof comes out that they did the crime, they’ll do the time. It’s not that easy to get that proof in every case though.

TaxPayer

October 19th, 2011
5:41 pm

The job creators have been given all the tax cuts they’re gonna get, pogo. It’s time for them to start delivering.

USMC

October 19th, 2011
5:41 pm

“But of course, nobody’s going to jail over this, and I guess that’s only fair. After all, they only did it because Barney Frank MADE them do it.”–Jay Bookman

LOL! Jay that was seriously funny!

But don’t forget Bawney’s boyfwend! :-)

Jay

October 19th, 2011
5:44 pm

I’m here all week, USMC. Tell your friends.

Mad Max

October 19th, 2011
5:44 pm

Of course Barney and his friends at Freddie didn’t do too bad either and everytime someone proposed putting controls over Freddie, Barney told them to shut up. And I don’t see any witchhunt for Barney being proposed. Oh that’s right, he’s protected because he’s a democrat and they can do no wrong.

getalife

October 19th, 2011
5:45 pm

What did you expect when they bribe polls millions.

Instead of whining about it, join the 99% if you have some free time.

I think they should donate half their profits each quarter to pay for the 15 million jobs of lost revenue until the deficit is paid off.

saywhat?

October 19th, 2011
5:46 pm

USMC

October 19th, 2011
5:41 pm
“LOL! Jay that was seriously funny!

But don’t forget Bawney’s boyfwend! ”

Is that what you are calling yourself these days? ;)

getalife

October 19th, 2011
5:47 pm

Keep Up the Good Fight!

October 19th, 2011
5:47 pm

But but but…. it was all them low life no good borrowers who borrowed more than they could pay back after their home values crashed that caused the problems. It wasn’t the Citigroup trader fraud and similar actions. :roll:

MaJo

October 19th, 2011
5:48 pm

Good thing Obama and Co. have used their time in office to bring those crooks to justice! After all, they stand up for the common man!

Soothsayer

October 19th, 2011
5:48 pm

How to ruin an economy and bankrupt a nation.

1. Pass Gramm(R)-Leach(R)-Bliley(R) Act which repeals Glass-Steagall Act in place since Great Depression effectively turning banks into Wall Street casinos and placing everyone’s deposits at risk.

2. Declare that budget surplus inherited from previous President is “proof” that Americans are “overtaxed” and immediately pass tax cuts for the richest Americans.

3. Engineer dubious “false-flag” (made to appear done by another country) “psy-op” (psychological operation), the “New Pearl Harbor,” according to the Project for a New American Century, designed gin up anti-Muslim sentiment and offer entrée to war (9/11).

4. Use lies and deception to involve America in war. (Weapons of mass destruction, yellow cake, Nigeria, aluminum tubes, etc.)

5. Involve America in two costly never-ending wars with no real declared objective.

6. Pass series of disastrous “free trade” bills that devastate domestic industry causing millions of Americans to lose their jobs.

7. Pass changes to tax code that actually encourage corporations to move entire industries to foreign countries.

8. Pass costly unfunded Medicare part D Big Pharma giveaway, which contains provisions that prevent bargaining with giant pharmaceutical companies for lower prices.

9. Relax mortgage-lending standards and reduce interest rates to encourage overheated housing market.

10. Practice laissez-faire attitude towards brokerage houses who bet ultra-leveraged derivates against housing market (i.e., that it will fail).

11. Construct multi-billion dollar giveaway to Wall Street firms and then blame successor on “bail outs.”

12. Hand off economy to successor with $1.2 trillion+ dollar/yr deficits.

13. Block any and all efforts by successor to turn economy around or reduce deficits.

getalife

October 19th, 2011
5:48 pm

max,

Google Phil Gramm and Alan Greenspan.

Soothsayer

October 19th, 2011
5:51 pm

How on Earth a member of the Fright Wing can dare show his/her face on this blog and crow about anything is a mystery that I will never be able to comprehend.

Shame on all of you!

md

October 19th, 2011
5:52 pm

“But but but…. it was all them low life no good borrowers who borrowed more than they could pay back after their home values crashed that caused the problems. It wasn’t the Citigroup trader fraud and similar actions.”

It was both……………

Keep Up the Good Fight!

October 19th, 2011
5:53 pm

Hmmm…somehow the whines of Obama should bring the crooks to justice from the right wingnuts just does not ring true…. these wingnuts are the same ones who want to remove all regulations and also told us how “soclalist” it was when they thought Obama might limit salaries to these same execs…..but now they once again suddenly become “law and order”. It would be funny if it were not so sickening.

Keep Up the Good Fight!

October 19th, 2011
5:53 pm

so you say over and over md but without real facts to back you up…

Redneck Convert (R--and proud of it)

October 19th, 2011
5:54 pm

Well, I never understood this derivatives stuff. Even when my buddy Jim Earl tried to explain it to me.

Best I can tell, a big investor puts together a bunch of worthless stuff and sells it at a high price. Then knowing it’s worthless they turn around and bet against the stuff. They make a killing by paying back pennies on the dollar for what they sold and old greedy Mr. MushforBrains winds up losing everything and takes a job as a WalMart greeter. I guess it serves him right for thinking he can out-smart the people that wrote the book on the scam. And besides, we can always use more WalMart greeters.

USMC

October 19th, 2011
5:54 pm

“I’m here all week, USMC. Tell your friends.”

Good to know Jay, we thought you might be camped out with your friends downtown at Occupy Woodruff Park. :-)

getalife

October 19th, 2011
5:55 pm

When they say there is plenty of blame to go around we should say list them.

When they say a handful of people have all the Monet we should say list them.

When they say they never saw it coming we should say you lie.

getalife

October 19th, 2011
5:56 pm

Monet is money.

Dang.

Soothsayer

October 19th, 2011
5:57 pm

getalife

October 19th, 2011
5:57 pm

usmc,

Then you would say Jay pooped on a car.

Over and over and…..

Doggone/GA

October 19th, 2011
5:57 pm

“It was both”

Nope, It was the traders and the lenders. No one FORCED the lenders to set aside prudent business practices and lend to people who were a bad risk. It’s the lenders decision who to lend to. People who can’t pay back loans never have the opportunity to default if no one will lend them the money in the first place.

Redneck Convert (R--and proud of it)

October 19th, 2011
5:58 pm

Somebody tell this getalife to lay off of the weed. It’ll rot his brain even worse.

pogo

October 19th, 2011
5:59 pm

Seriously, Reid should be tested for Alzheimers. Or maybe it is just plain old incompetency. His own state is suffering terribly in the private sector yet he says that it is public jobs that are suffering. You liberals should be proud to have such a leader in the Senate. Him, Pelosi and Biden are the poster children for career polticians that long ago abandoned actually serving the best interests of their constituents in a trade for their self-interests. As for Obama, nothing needs to be said. He is just a plain loser.

USMC

October 19th, 2011
5:59 pm

Speak of the Devil… :-)

Barney Frank supports protesters, raises Wall St. cash
Read more: http://www.politico.com/news/stories/1011/66412.html#ixzz1bGe23F8A

Jay

October 19th, 2011
5:59 pm

We have wireless in our tents, USMC.

getalife

October 19th, 2011
5:59 pm

RC,

Guilty as charged.

Better than that swill you deal.

josef

October 19th, 2011
6:01 pm

getalife

“Monet is money”

It is if you own one! :-)

getalife

October 19th, 2011
6:02 pm

josef,

I got a 3.6 % raise and was looking to invest :)

USMC

October 19th, 2011
6:06 pm

“Then you would say Jay pooped on a car.”–Getalife

LOL! that was hilarious, but in all seriousness I would give Jay the benefit of the doubt. :-)

Hey Getalife, your boys @LSU got popped on their drug tests this afternoon and will sit out the Auburn game. (not like it matters much, you guys will spank Auburn anyway)

getalife

October 19th, 2011
6:07 pm

usmc,

Which players?

Soothsayer

October 19th, 2011
6:09 pm

For those who don’t understand what derivatives are, here is a simplistic explanation.

During the years leading up to the Great Depression, you could put up $100 and buy 10 shares of $100 stock and control $1,000 worth of stock — the bank would loan you the difference.

Your $100 investment is leveraged 10 times and the notional value of your investment is $1,000.

If the stock went up $10/share you would make $100. If the stock lost $10/share you would lose your entire original investment.

If the stock lost $20/share not only would you lose your entire investment, you would have to come up with another $100 to “cover your margin.”

If the stock went to 0 (as in the Great Depression) you would have to come up with the entire $1,000 which many could not do which caused many of the banks to fail and hence, the Glass-Stegall Act preventing banks from being involved in the stock market.

Now, imagine that instead of $100 and $1,000, the amounts are $1,000,000.000,000.00 and the leverage ratios are 100 to 1. You begin to see what’s at stake here.

This sheer insanity. Especially when these banks are backstopped by the American taxpayer.

Finn McCool

October 19th, 2011
6:09 pm

Jon Stewart called the Republicans on their rhetoric again last night. Well done.

josef

October 19th, 2011
6:10 pm

getalife

“I got a 3.6 % raise and was looking to invest ”

Have our friends the Chitamacha heard abou this? :-)

getalife

October 19th, 2011
6:12 pm

Spencer Ware, Tyrann Mathieu, Tharold Simon suspended for synthetic weed is stupid.

At least smoke the good stuff.

getalife

October 19th, 2011
6:14 pm

josef,

I donated to them last night.

I have never seen the casino so empty and it slowed their construction to their hotel .

josef

October 19th, 2011
6:16 pm

getalife

Sorry to hear that…but glad to know you’re doing your part for reparations!

F. Sinkwich

October 19th, 2011
6:16 pm

I’m guessing Citi will pay the $285 M fine in toto.

How much will we taxpayers get back from Hopey/Changey’s sweetheart deal with Solyndra costing us nearly TWICE that? GM still owes us $16 BILLION! Any chance of seeing that? Nope.

Additionally we taxpayers still have to pay $7500 for every POS Volt GM sells thanks to Mr. Green jeans in the White House.

I want my money back!!!

USMC

October 19th, 2011
6:18 pm

“We have wireless in our tents, USMC.”–Jay

LOL! Lots of laughs for a rainy day. :-)

Jay when is your “real State of the Nation” going to held? November, January??

It seems like you could really feed off of the Occupy movement; not like it wasn’t full last year. Maybe you could hold it at a larger venue.

getalife

October 19th, 2011
6:20 pm

I do what I can josef .

They invest my donations in their community so I don’t feel bad when I lose :)

josef

October 19th, 2011
6:24 pm

USMC

That’s “57 States of the Nation…” :-)

getalife

:-)

Soothsayer

October 19th, 2011
6:26 pm

Friends, what you don’t realize is this: the money in your bank, brokerage, money market account is being used as the “original investment” in these derivative schemes. If they fail, FDIC will simply not be able to cover your losses. You will simply lose your money.

This is why people have been stampeding into US Treasuries. Even though they lose money after inflation, at least people can have reasonable assurance that they will not lose their money.

And yet, the Fright Wing howls about “regulations” when, in fact, there really are none.

USMC

October 19th, 2011
6:28 pm

“That’s “57 States of the Nation…”–jonix

LOL! Maybe Obama is spending money on 57 states and that is why he has us in a $4trillion mess. :-)

josef

October 19th, 2011
6:31 pm

USMC

You’re in a good mood tonight…what’s in that pipe?

USMC

October 19th, 2011
6:33 pm

“Jon Stewart called the Republicans on their rhetoric again last night. Well done.”–Finn

So he gets his news/politics from a comedian… that explains it! :-)

USMC

October 19th, 2011
6:37 pm

“You’re in a good mood tonight…what’s in that pipe?”–jonix

I am down at Occupy Woodruff Park getting a contact high! :-)

josef

October 19th, 2011
6:37 pm

Talking about the OWS and Woodruff…Unmentionable says he’s glad the weather’s turned off cold…got some blankets he needs to get rid of… :-)

Don't Tread

October 19th, 2011
6:40 pm

Those evil stockholders!! Time to start seizing bank accounts, comrade…

Welcome to the occupation (Trotsky)

October 19th, 2011
6:42 pm

md: “And if that’s the case, why would anyone vote for Obama for another term…….seems to me folks would keep throwing them all out until we find a decent one……..if there is such a thing.”

It’s the reason we need a real revolution in this country.

Strawman

October 19th, 2011
6:52 pm

“But of course, nobody’s going to jail over this, and I guess that’s only fair. After all, they only did it because Barney Frank MADE them do it.”

Therein lies the problem, Jay. I really think it’s next to impossible to legislate wrongdoing out of existence as people will always find some way to circumvent the law and satisfy their rapacious greed. So I’m not sure we need a whole lot of new laws. What we need is enforcement of existing laws and very stiff criminal penalties for this sort of thing – you know, like maybe a year of prison time for every person affected by your crime. Hand out a half dozen life sentences in a year’s time and this kind of behavior will become a lot rarer. We all have our failings, but I have never understood how someone might be willing to kill and pillage for money.

getalife

October 19th, 2011
6:56 pm

Good to see USMC join the 99%.

getalife

October 19th, 2011
7:00 pm

md,

After Obama, we are out of leaders.

The debate last night was proof.

josef

October 19th, 2011
7:04 pm

The last “leader” we had was King Ronnie I and look at where following him got us…

USMC

October 19th, 2011
7:05 pm

“Good to see USMC join the 99%.”–Getalife

Well Getalife, you played a big role in converting to the “Dark side”.

But now I am content with the government & the rich paying me to sit on my arse and suckle off of society. :-)

carlosgvv

October 19th, 2011
7:08 pm

Here is a prediction. If one of these Tea Party Republicans is elected President, and another company like Citigroup does something like this, the Republican President’s Justice Department will do everything it can to see that no charges of any kind are ever brought against the company. Wall Street will be intoxicated with laissez faire fever and will be in the saddle riding the backs of the American people. I would say “fair warning” to all you Republicans but it would just be a case of throwing pearls to the swine.

getalife

October 19th, 2011
7:09 pm

I disagree.

It was President Clinton because he balanced the budget, had a surplus and they were giving away cars to come to work. The Internet bubble investing was easy money.Plus, he won his wars.

If w did not destroy our country we would still be in good shape if Clinton had a third term instead of w.

getalife

October 19th, 2011
7:12 pm

“But now I am content with the government & the rich paying me to sit on my arse and suckle off of society.”

They want jobs to buy houses and live the American dream.

You did not pay attention.

You went for the weed :)

josef

October 19th, 2011
7:12 pm

getalife

I kinda like Clinton myself and those were good years, but he wasn’t, imo, a “leader” and that was a good thing…

Steve - USA

October 19th, 2011
7:19 pm

md@5:02

Spot on Post!

Recon (2nd.and 3rd.)

October 19th, 2011
7:19 pm

Oh yeah, Vikram Pandit, Rubin big Wall Street Obamanation supporters. Cain’s right the “Occupiers” are occupying the wrong turf. Should be parked in front of the W.H.

getalife

October 19th, 2011
7:20 pm

josef,

The gop fought against him with investigations and the dems stabbed him in the back because he worked with the gop.

A dem leading a center right country is a tough job. No, he was not perfect like Obama but they are as good as it gets leading this country.

There is no alternative now because the gop want to default to end dem accomplishments for the people. They voted to end SS and Medicare. They are a corporate and military complex utopia party. They don’t even try to hide it anymore.

josef

October 19th, 2011
7:26 pm

getalife

The way I see Clinton is that he was (is) the consumate politician and the office of President is a political office. It doesn’t need a “leader,” it needs a good politician. A leader, to me, is bound by an ideology, and a politician need not be. Too many try to be both and fail therefor…a leader needs followers. A politician doesn’t. A politician can get knocked down and come up swinging. A leader gets knocked down and that’s all she wrote…the way I see it….

Steve - USA

October 19th, 2011
7:27 pm

carlosgvv@7:08

Just so your clear, this was a Civil case. This is not the result of any criminal charges by the present DOJ.

I am glad CITI lost. Whoever knew about this at CITI should be in jail.

kayaker 71

October 19th, 2011
7:30 pm

Those evil Wall Street Corporations……. those vile and despicable people……like J.P. Morgan Chase, who donated 808,000 to Bozo in 2008….. then there’s Citigroup, the evil bank of the day who donated 736,000 to Bozo for his election campaign in 2008….. not to forget Goldman Sach who threw $1,013, 000 into the Democratic hat in 2008…. and lastly, Morgan Stanley… those evil money managers… they only contributed 936,000 to Bozo for his campaign. Most of those Wall Street protestors don’t have a clue about this and wouldn’t care if they did.

AmVet

October 19th, 2011
7:31 pm

Exactly how much fraud are you Cainiacs willing to overlook???

This is NOT the first time that that criminal organization has been indicted for such thievery.

Yep, the suicidal cons live them some white collar criminals…

Recon (2nd.and 3rd.)

October 19th, 2011
7:32 pm

Crony capitalism, that’s what the OWS crowd should be protesting and they can look no further than 1600 Pennsylvania Avenue. Maybe they are from a distance.

md

October 19th, 2011
7:34 pm

“Nope, It was the traders and the lenders. No one FORCED the lenders to set aside prudent business practices and lend to people who were a bad risk. It’s the lenders decision who to lend to. People who can’t pay back loans never have the opportunity to default if no one will lend them the money in the first place.”

And that may be true if only those that were bad risks were defaulting……yet that was not the case.

There were plenty that defaulted that were not judged as bad risks……and only the buyer knows the true ratios involved……loans to uncle Bob, gambling and drug habits, etc etc all play into it…..the banks can’t see that part of the equation…..ever.

It takes 2 signatures on every contract………it was both.

Steve - USA

October 19th, 2011
7:34 pm

You have to separate criminal behavior from legal behavior. There is nothing wrong with making a profit, there is something wrong when you are scamming people to do it.

I don’t mind cars, I don’t mind people who drink….I do mind drunken driving.

getalife

October 19th, 2011
7:34 pm

josef,

Clinton said on Letterman that when he tries something with his foundation and it fails, he can just move on to try something else. It is not the end so that fits your theory.

I hope Obama continues to work to help others when he leaves office because Clinton is getting up there in age. Carter can’t go on much longer so the younger generation like Obama needs to step up.

I think he will.

carlosgvv

October 19th, 2011
7:37 pm

Steve – USA

I know this was a civil case. I also know the DOJ has very long arms and much legal influence that you and I will never know about. They can make VERY big threats and also offer very large carrots.

getalife

October 19th, 2011
7:37 pm

“Crony capitalism, that’s what the OWS crowd should be protesting”

They are.

It is not a simple “cut spending” movement.

Keep Up the Good Fight!

October 19th, 2011
7:38 pm

md, how absurd….try some facts and not your fantasies….. When you have some facts and proof and not a variation of the “Shopping at Whole Foods” welfare queen, do try to post it.

Recon (2nd.and 3rd.)

October 19th, 2011
7:39 pm

Joe Biden’s tirade saying that if Obama’s job bill doesn’t pass more woman will be rape victims. He may very well become unwittingly one of the Republicans best weapons in the 012 elections. Joe the gift that keeps on giving. Of course most know that the crime of rape unfortunately is an after the fact crime investigation.

getalife

October 19th, 2011
7:41 pm

del,

His facts are correct.

Lets hope the younger generation does not give up.

That is how the riots start.

md

October 19th, 2011
7:42 pm

“md, how absurd….try some facts and not your fantasies….. When you have some facts and proof and not a variation of the “Shopping at Whole Foods” welfare queen, do try to post it.”

Sorry, I didn’t make copies of the hundreds of loans I took part in personally……….many of which were made to folks that had great credit…….but over-extended themselves………

Trying to paint one side as the sole culprit only makes one look silly…….

Recon (2nd.and 3rd.)

October 19th, 2011
7:44 pm

“Obama needs to step up.

I think he will.”

No when he loses in 012 he’ll go back to Chicago and crawl down lower than a starving snake.

kayaker 71

October 19th, 2011
7:44 pm

getalife,

I can just see Bozo hammering nails into some Habilitat house in Chicago. Clinton is 65…. don’t count him out yet. Carter is 87, according to Wiki… he’s about had it. I did have the opportunity to hear he and Rosalyn teach a Sunday school class at the Maranatha Baptist Church in Plains in the mid nineties. There is a schedule published for the weekends that they are going to be teaching…. was quite an experience. Although I don’t always agree with him politically, I feel that he is a well meaning person. Most of his books have been enjoyable, especially the one about growing up in Plains with his brother Billy. His railroad car in Plains where he and Rosalyn spent a lot of campaign hours is on a siding to tour. Worth a trip.

Doggone/GA

October 19th, 2011
7:46 pm

“There were plenty that defaulted that were not judged as bad risks”

And many, many more that were not vetted properly, or that were even fingaled to make it look like they qualified when they should not have. It is always the lender who is in charge. THEY have the money to lend, no one forces them to hand it out.

Steve - USA

October 19th, 2011
7:47 pm

If Obama loses in 2012 or does a second term I fully expect that he will be in full Capitalist mode. A huge book contract and endless profitable speeches.

Which is fine by me.

TaxPayer

October 19th, 2011
7:48 pm

Jon Stewart did a most excellent job of nailing the hypocrite Republicans to the wall once again. Especially that worthless Eric Cantor. What an idiot. I’m so glad Obama put that brat in his place back during the debt debate.

Keep Up the Good Fight!

October 19th, 2011
7:49 pm

md, trying to make up facts like you have done for thousands and thousands of borrowers make you look real silly…..

Mick

October 19th, 2011
7:58 pm

Additionally we taxpayers still have to pay $7500 for every POS Volt GM sells thanks to Mr. Green jeans in the White House.

Then, go out and buy a volt and wean yourself off of the fossil fuel. It only costs $1.50 per day for a recharge, reduce your gas bill to $45 every month – no more gas station..

AmVet

October 19th, 2011
8:02 pm

I love it.

At long last, the giant has been awakened. And the criminal coddlers for Citi hide under their beds.

Throughout the country — from about 50 people in Jackson, Miss., to some 2,000 in Pittsburgh — the protest gained momentum.

Nearly 1,500 protesters gathered for a march past banks in downtown Orlando, Fla. Hundreds marched on a Key Bank branch in Anchorage, and declared it be foreclosed. In Arizona, reporters and protesters saw an estimated 40 people detained around midnight Saturday at a park just north of downtown Phoenix.

In Colorado, about 1,000 people rallied in downtown Denver to support Occupy Wall Street and at least two dozen were arrested. Nearly 200 people spent a cold night in tents in Grand Circus Park in Detroit, donning gloves, scarves and heavy coats to keep warm. Helen Stockton, a 34-year-old certified midwife from Ypsilanti, said they planned to remain there “as long as it takes to effect change.”

Rallies drew young and old, laborers and retirees. In Pittsburgh, marchers included parents with children in strollers. The peaceful crowd stretched for two or three blocks.

“I see our members losing jobs. People are angry,” said Janet Hill, 49, who works for the United Steelworkers, which she said hosted a sign-making event before the march.

Retired teacher Albert Siemsen said at a demonstration in Milwaukee that he’d grown angry watching school funding get cut at the same time banks and corporations gained more influence in government. The 81-year-old wants to see tighter Wall Street regulation.

My favorite sign so far?

Mr. Obama! Tear Down that Wall Street!