"Civil War" On Wall Street: As Reality Finally Hits The Financial Elite, They Turn On Each Other

I thought this was interesting and offered a detailed report of what all is happening in Wall St these days. It seems the sharks are turning on each other and regulations can be worked for or against the system and those involved. Regulations, damned if we do and damned if we don't. Still, imo, we have to have some type of objective oversight.
This just seems crazy and I credit Taibbi for being brave and trying to convey the story, even if it is how he sees it. The information provided in this story and the number of banks involved are kind of surreal, in that it seems the tipping point for fairness and good for the countries, via financing and stocks, has drowned in the waters of greed and coverup.

FHA Files a $196 Billion Lawsuit Against 17 Banks

The Federal Housing Finance Agency (FHFA), as conservator for Fannie Mae and Freddie Mac (the Enterprises), today filed lawsuits against 17 financial institutions, certain of their officers and various unaffiliated lead underwriters. The suits allege violations of federal securities laws and common law in the sale of residential private-label mortgage-backed securities (PLS) to the Enterprises.

Complaints have been filed against the following lead defendants, in alphabetical order:

1. Ally Financial Inc. f/k/a GMAC, LLC – $6 billion
2. Bank of America Corporation – $6 billion
3. Barclays Bank PLC – $4.9 billion
4. Citigroup, Inc. – $3.5 billion
5. Countrywide Financial Corporation -$26.6 billion
6. Credit Suisse Holdings (USA), Inc. – $14.1 billion
7. Deutsche Bank AG – $14.2 billion
8. First Horizon National Corporation – $883 million
9. General Electric Company – $549 million
10. Goldman Sachs & Co. – $11.1 billion
11. HSBC North America Holdings, Inc. – $6.2 billion
12. JPMorgan Chase & Co. – $33 billion
13. Merrill Lynch & Co. / First Franklin Financial Corp. – $24.8 billion
14. Morgan Stanley – $10.6 billion
15. Nomura Holding America Inc. – $2 billion
16. The Royal Bank of Scotland Group PLC – $30.4 billion
17. Société Générale – $1.3 billion

These complaints were filed in federal or state court in New York or the federal court in Connecticut. The complaints seek damages and civil penalties under the Securities Act of 1933, similar in content to the complaint FHFA filed against UBS Americas, Inc. on July 27, 2011. In addition, each complaint seeks compensatory damages for negligent misrepresentation. Certain complaints also allege state securities law violations or common law fraud. [read full FHFA release [4]]

You can read the suits filed against each individual bank here [5]. For some more information read Bloomberg: BofA, JPMorgan Among 17 Banks Sued by U.S. for $196 Billion [6]. Noticeably

MUCH more info involved too..
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Not much to add, just thought this was a good detailed description of the turmoil within the industry.
Conspiracy? On both sides it seems, for and against.

Further disenchanted,
spec

There is only one answer for those poor souls on Wall Street:

www.flickr.com...

(Beware strong language)

So they got caught shredding evidence and now wall street is finally being investigated.... or is this sueing by the US another layer to cover-up the ponzi scheme & only paying back a fraction of what the banks stole??

a trillion is more than a billion, the fed's secret bailouts will probably cover the minor fees the government is asking from these banks. They are only sueing to prop up the government, but the 198 billion if they ever get it will only last a week or so, so why even bother. Maybe if they lose, they'll sue the banks for the cost it took to try and sue them, like with Casey Anthony.

reply to post by john124


Hard to tell when it comes to Wall Street. The media and law enforcement does a fantastic job with cases like the Casey Antony trial, drug investigations, organized crime, etc,... but when it comes to Wall Street and white collar criminals, they always seem to go unnoticed, evidence is lost, or swept under the rug or whistle blowers are simply ignored by the Wall Street police. The majority of them are corrupt, I'm talking about the big dogs, not so much the little guys, but even they are guilty of something I am sure, but lets start at the top and work our way down.

Of all the criminals in the world I fear white collar thugs than any gang banger or what have you. White collar thugs have more a negative impact on all of our lives than all of the gangs and mafia types combined. I just look forward to the day when we can finally see justice where justice is deserved. So lets hope this is the beginning of justice!

This looks to me more like FHA trying to get money from the banks on account of their robosigning and other fraudulent mortgage practices. If they win that's less taxes they have to extort from the rest of us.
So I guess I don't see this as any kind of civil war among wall street but more like WS vs the Feds.
I don't have time to read the article right now but I will - anything Taibbi writes is usually very important and in depth.
I appreciate you posting this for all to see specs.
Cheers,

ATA

you beat me to it. I worked for two of these companies before becoming disabled, one of which owned the lein on my house and almost took it, i did a shortsale one day BEFORE forclosure... leaving the bank with a loss and writeoff. I was a lucky one.

however when i left i also wrote a letter to their internal investigator, because the turnover rate was like 76% at the time.

a while later i heard that our head of dept was escorted out after the investigation... and told never to return.

ive always wondered if i should sue their asses lol but looks like they are broker now than they were then hahahaha

Everybody wants a slice of the pie. My goodness...are people that desperate? Or, does everybody want something for nothing? Where is my compensation for my pain and suffering? Who can i sue, to get me some free money? These people are like DRUG ADDICTS. Oh wait, they're not 'like' drug addicts......they're WORSE!

I say they all need to be charged with treason and given the death penalty, that includes bush senior, jr, the clintons, Obama and everyone directly connected to the on going theft and coverup.

all these banks and their corporate executives need to have all their assets seized and all the money needs to be returned to the investors who lost their money.

in china when they catch thieves they just chop off their heads and call it a day, we need to have a look into china's judicial system for recourse and remedy