Los Angeles Sues Wall Street Banks:

Discussion in 'Wall St. News' started by capmac, Jul 24, 2008.

  1. capmac


    Los Angeles sues Wall St banks, bond insurers

    Thursday July 24, 12:49 pm ET

    CHICAGO (Reuters) - The city of Los Angeles sued more than 30 municipal bond insurers and Wall Street investment banks, accusing them of fraud and antitrust that it said cost taxpayers millions of dollars.

    The city, which like other cities, U.S. states and agencies issues municipal bonds to fund various public projects, filed suit against the insurers and the investment banks in two separate complaints in Los Angeles Superior Court related to the city's purchase of bond insurance and the investment of the city's bond proceeds.

  2. It is about time!

    I mean yes, we elect politicians to do what they will with our tax dollars.

    But to allow the banking industry to profit from us with their "brain-farts" and then cover them with our tax dollars when they fail - because they are too big is a crying shame!

    So there is a way we can sue them? Well this might take the market down a notch - bastards. :mad:
  3. Xuanxue


    How many actually believe a precedent will set, though? I'd follow this one closely. The ramifications could mean a temporary windfall by local and State governments due to a full blown depression they will have exacerbated.

    Sue banking corporations most of whom are operating on illiquid capital presently? Who'll pay the damages? The only reason this would be a good idea were it that a foundation is to be laid to nearly absolutely devalue the dollar, which would create another hedge play in the bond markets, now that oil's seen its day, by virtue of the FED having no other choice but to dramatically raise interest rates to create growth.

    Agressive. My Jew-O-Meter is off the scale.