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Thread: You're not sweeping this under the rug
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11-29-11, 05:29 AM #1
You're not sweeping this under the rug
Citigroup's SEC settlement rejected - Nov. 28, 2011
Fuck the SEC and fuck the big banks that fucked the US.
This judge is right in forcing the truth to come out.
[I]"n any case like this that touches on the transparency of financial markets whose gyrations have so depressed our economy and debilitated our lives, there is an overriding public interest in knowing the truth," Rakoff, a U.S. district judge in Manhattan, wrote in his decision.
The SEC's pattern of allowing big banks to reach settlements without admitting or denying wrongdoing, Rakoff added, has been "hallowed by history, but not by reason."
After marketing the CDO, Citi (C, Fortune 500) then took a short position -- or bet against -- the security as the housing market deteriorated, bringing in a net profit of $160 million for the bank. Meanwhile, investors lost more than $700 million.
According to the SEC complaint, one CDO trader characterized the asset group in internal communications as "a collection of dogshit" and "possibly the best short EVER!"Last edited by triggerhappy2005; 11-29-11 at 05:33 AM.
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11-29-11, 09:48 AM #3Re: You're not sweeping this under the rug
Not that I disagree with this ruling, but what I want to know is when do we go after the politicians that pushed for growth in home ownership, and set the rules so that people that couldn't pay the bills could get houses? Or do we forgive them no questions asked, and just say "fuck the SEC, and fuck the banks!"?
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11-29-11, 10:57 AM #6
Re: You're not sweeping this under the rug
Off topic Civil. This is about banks swindling customers. They knew the product they were selling was broken but sold it anyways. That's called fraud.
The ruling simply forces Citi to either admit it's true or fight it. Similiar to when someone is banned here at TPG, they can't just head over to the donations page and make everything all right. They have to admit to it and then do the dance.
If you want to discuss whether banks should have been lending to clients who weren't creditworthy or whether the government is complicit in the housing bubble, that would be for another thread. This is about banks knowingly defrauding customers...only.
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11-29-11, 11:14 AM #7Re: You're not sweeping this under the rug
But it's not a different topic. Yes, the banks knew the loans were rubbish, but they were "encouraged" by the federal government to do it anyway. Once again I ask who truly backed the loans, the banks, or the government controlled Fanny and Freddie. It was "government" money that they were lending, and they knew the government was lending it to people who wouldn't pay it back, so they bet accordingly. Do I agree they should be held accountable? Yes, I already stated that. Do I think that the people now pointing the finger are the ones who aided them in committing the crimes? You bet your ass.
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11-29-11, 11:18 AM #8
Re: You're not sweeping this under the rug
But yes this is a different topic. This is about selling CDO's that they knew would tank and not about their lending practices. It's off topic.
As far as finger pointing...there is none. Unless you're referring to the judge and that would be a silly interpretation of his ruling.
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11-29-11, 11:25 AM #10
Re: You're not sweeping this under the rug
Get it past the tinfoil and into your head, this is not about the government and whether or not is was complicit in the bubble. This is about banks defrauding customers, not in their lending practices although one coul make that argument, but about a specific product they sold (CDO's) they knew to be shit.
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