Lehman Creditors Allege JP Morgan Role in Bank's Failure

[Hannah Bell]

Saturday, October 4, 2008

"Oh, this could get ugly. The Wall Street Journal reports that Lehman's unsecured creditors are calling on the bankruptcy court to examine why the investment bank ran out of funds. The suit argues that JP Morgan abused its role as clearing bank, retaining $17 billion of excess collateral which Lehman could have used to stave off its collapse."

http://www.nakedcapitalism.com/2008/10/lehman-creditors-allege-jp-morgan-role.html

[TexasObserver]

1. Someone inside the Bush administration/FDIC/Treasury is helping JP Morgan.

[Hannah Bell]

2. It would seem someone would have to be - to let them pull it off.

[spag68]

3. JP Morgan

If you look up JP on the Wiki, you will find that the original and his descendent's have been doing this for 100 years. He was a thief then and his namesake company is a thief now. Not that I have any sympathy for Lehman. Cotton dealers, that should set off alarm bells.

[Nordic65]

4. JP Morgan = birthplace & ground zero of the current crisis

The financial weapon of mass destruction, Credit Default Swaps, was created by JPM. To this day JPM is still the main market maker for this shit, and I presume, making some mighty big bucks...

[Hannah Bell]

5. MBIA Cries Fraud; Sues Countrywide

By: KELLY CURRAN
October 3, 2008

MBIA Insurance Inc. (MBI: 10.35 -10.00%) filed a suit Tuesday against several units of Countrywide Financial Corp. over $14 billion in guarantees it provided for Countrywide mortgage bonds, alleging the lender fraudulently misrepresented its loan underwriting standards.

The suit comes at a time when the California mortgage lender is already facing litigation filed by borrowers and states’ attorneys general that also claim Countrywide engaged in unfair lending practices, according to the Financial Times.<<



I foresee a river of lawsuits coming.

[gopbuster]

6. Here we go..it's gonna get nasty n/t

[slipslidingaway]

7. Although it could get ugly, the deed is already done :( n/t

[OmmmSweetOmmm]

8. If you go back in time, before the creation of the Federal Reserve, it was rumored that

JP Morgan, started their own rumors about a few banks being insolvent, which destroyed those banks. This was called the Panic of 1907. JP Morgan later went on to push for the Fed. Reserve Act.

I suspect that JP Morgan did some manipulation with Bear Stearn.

[Karenina]

9. Naaaaw... They wouldn't do something like THAT.

WOULD THEY??? Mebbe check out what kind of political donations Lehman's made. ;-)