Bankruptcy

Swindle on Wall Street? Naw?

By mcbride

 Here is a hugely informative article on a monster swindle involving the Federal Reserve and certain anointed “too big to fail” banks. The allegations are that these folks got together and decided to buy massive amounts of puts on Bear Stears? stock ? yes, right before the Fed and Treasury let it fail. This deal made the participants over 159 times their investment within six days, all on insider information ? again according to the article. “That this was a brazen case of insider manipulation was so obvious that even Sen. Chris Dodd, chairman of the pillow-soft-touch Senate Banking Committee, couldn’t help but remark on it a few weeks later, when questioning Christopher Cox, the then-chief of the Securities and Exchange Commission. ?I would hope that you’re looking at this,? Dodd said. ?This kind of spike must have triggered some sort of bells and whistles at the SEC. This goes beyond rumors.?” 

http://www.rollingstone.com/politics/story/30481512/wall%20streets%20naked%20swindle

Full post as published by Texas Lawyer Blog on November 19, 2009 (boomark / email).