Abandon All Hope

From the Agonist:

The Examiner responsible for investigating the Lehman Brothers collapse and bankruptcy has found a number of “colorable claims”, meaning legal claims that, given the facts as now known, would have a good chance of succeeding with a jury. These include:

  • A claim against Richard Fuld, CEO, and three successive CFOs (Christopher O’Meara, Erin Callan, and Ian Lowitt) that they are liable for providing “materially misleading periodic reports” regarding the true liquidity situation of Lehman Bros. In particular, these individuals never revealed the true purpose of 105 Repos.
  • A claim against Ernst & Young for “professional negligence” in allowing the 105 Repo program to continue without any explanation to the public.
  • A claim that JP Morgan Chase did not act with “good faith and fair dealing” when negotiating with Lehman over collateral requests. The bank may have knowingly taken too much collateral.

There’s much more before this – the usual outstanding detail you’ve come to expect from the Agonist.

Go. Read.

This will help you understand why we need better banking regulations.

Also, it underlines that the people of Longmont deserved to know about Twin Peaks sooner… and it was kept carefully quiet and only mentioned obliquely and never in actual value numbers – sound familiar?

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