Monday, December 27, 2010

....and one Year later, Justice has been served. Wait! Really?

From the massive collapse of Lehman Brothers, Bear Stearns, Merril Lynch and such reciprocating into the Financial Systems world wide to the current record levels of the Stock Markets here in the USA, the DOW Jones, the S&P 500, the Nasdaq and the Russel (SPX, DJI, NDQ, RUT) to the record employment (U6 at almost 20%) to the record debt / deficiets in the USA to the massive losses in the Real Estate valuations, What have we learnt?

I came across very interesting findings by a very good website, ProPublica.org

1. This fall, the Securities and Exchange Commission reached a $67.5 million settlement with former Countrywide CEO Angelo Mozilo, the only major case against a financial executive. The SEC charged Mozilo with praising Countrywide to investors while internally doubting its lending standards. As part of the settlement, Mozilo admitted no wrongdoing.

2. In April, the SEC accused Goldman Sachs of creating a mortgage deal that was designed to fail. The argument was that Goldman's hedge-fund client helped design the deal specifically to bet against it - without Goldman explaining the relationship to investors. In July, Goldman settled for $550 million (or about two weeks' worth of profit), admitting a "mistake" but no wrongdoing.

3. The SEC is looking into whether JPMorgan Chase allowed a hedge fund named Magnetar to choose assets for a mortgage deal without disclosing Magnetar's role in selecting what went into the deal. Magnetar encouraged banks to put together riskier deals and bought the riskiest bond slices that otherwise may have been unsold. Magnetar then bet against some of those deals, standing to make far more by shorting its losses on those risky slices if the housing market went south.

4. The SEC is also looking into whether Morgan Stanley created a series of CDOs that its own trading desks bet against, the Wall Street Journal reported in May. A few months later it reported on how Deutsche Bank also bet against the souring housing market at the same time it was marketing new mortgage deals.

5. The Securities and Exchange Commission is investigating Citigroup's role in a $1 billion deal that the bank created in the run-up to the financial crisis. The agency is looking at whether Citi improperly pushed an independent manager to put specific assets into the deal, according to people familiar with the probe.

6. U.S. securities regulators are in preliminary discussions with several major Wall Street banks aimed at reaching settlements to resolve a broad investigation of their sales of mortgage-bond deals that helped unleash the financial crisis.

7. In the most sweeping allegations against an accounting firm in nearly a decade, New York's attorney general is accusing accounting giant Ernst & Young of helping Lehman Brothers Holdings Inc. disguise its financial condition for more than seven years, while collecting more than $150 million in fees from the firm. Executives from the now-bankrupt Lehman have not been charged.

Here is a link to the original Article by the Investigative Journalist, Karen Weise, about this hair raising, blood boiling disgusting sad things that we had to go through and its not over yet.....

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