Courtesy of Karl Denninger, The Market Ticker
In its complaint, Allstate alleges the defendants "made numerous misrepresentations and omissions regarding the riskiness and credit quality" of the loans backing the securities sold as part of the transaction. JPMorgan Chase acquired Bear Stearns and Washington Mutual — along with the banks’ assets — back in 2008 when the housing meltdown hit. While both firms are technically defunct, each still has structured finance trading platforms unwinding.
Same basic allegations in the last lawsuit. Statistical sampling says "you intentionally hosed us."
In a land with an actual justice system by now there would be some people in "pound-me-in-the-ass" Federal Prison. Instead, we do the quaint lawsuit thing.
"Everything’s ****ed up, and nobody goes to jail," he said. "That’s your whole story right there. Hell, you don’t even have to write the rest of it. Just write that."
I put down my notebook. "Just that?"
"That’s right," he said, signaling to the waitress for the check. "Everything’s ****ed up, and nobody goes to jail. You can end the piece right there."
And until we, the people, demand that this change and enforce that demand with an Egypt-like protest, it won’t change, and you, dear reader, will keep getting screwed.
Right up until the debt bubble pops…. which it will.
Pic credit: Jr. Deputy Accountant