GlassSteagallfan
31st July 2011, 05:36
Of Municipal Bankruptcies, Wall Street Crimes, and Glass-Steagall
July 30, 2011 • 8:01AM
As 2011 began, at least $500 billion of the $2.8 trillion in bonded indebtedness of U.S. states and municipalities was estimated to be gambling debts, pure and simple; interest swaps and other derivatives pushed on them by Wall Street swindlers, with the collusion of rating agency hitsquads, which would be wiped off the books in one fell swoop with the restoration of Glass-Steagall.
The announcement yesterday by the Attornies General of Connecticut and Pennsylvania of a "settlement" with one player in the municipal bond derivatives swindle, points to the sheer criminality of this entire game, which looted cities, counties, and towns across the United States into bankruptcy. The settlement stems from the 24-state investigation into rigging of the municipal bond derivatives market, begun back in April 2008 by the Justice Department, Internal Revenue Service, and Treasury.
In this latest deal, a former chief executive officer of a now-defunct New York brokerage firm admitted to having conspired with major financial institutions from 2001 to 2006, in placing intentionally fraudulent bids on municipal derivatives contracts. In recent months, Bank of America Corp., UBS AG, and JP Morgan Chase have already "settled" with the investigation, admitting to having engaged in fraud, only to be let off with restitution payments to defrauded institutions, totaling, between them, a mere $250 million.
Source: http://www.larouchepac.com/node/18939
July 30, 2011 • 8:01AM
As 2011 began, at least $500 billion of the $2.8 trillion in bonded indebtedness of U.S. states and municipalities was estimated to be gambling debts, pure and simple; interest swaps and other derivatives pushed on them by Wall Street swindlers, with the collusion of rating agency hitsquads, which would be wiped off the books in one fell swoop with the restoration of Glass-Steagall.
The announcement yesterday by the Attornies General of Connecticut and Pennsylvania of a "settlement" with one player in the municipal bond derivatives swindle, points to the sheer criminality of this entire game, which looted cities, counties, and towns across the United States into bankruptcy. The settlement stems from the 24-state investigation into rigging of the municipal bond derivatives market, begun back in April 2008 by the Justice Department, Internal Revenue Service, and Treasury.
In this latest deal, a former chief executive officer of a now-defunct New York brokerage firm admitted to having conspired with major financial institutions from 2001 to 2006, in placing intentionally fraudulent bids on municipal derivatives contracts. In recent months, Bank of America Corp., UBS AG, and JP Morgan Chase have already "settled" with the investigation, admitting to having engaged in fraud, only to be let off with restitution payments to defrauded institutions, totaling, between them, a mere $250 million.
Source: http://www.larouchepac.com/node/18939