Lawsuits

Next time you think about pitying yourself for having to pull an all-nighter finishing yet another pitchbook or complaining to your friends that you’ve worked your fingers to the bone all week picking up the slack for your MD or worrying that you might go blind if you stare at the computer screen for one second longer, consider first walking a mile in this woman’s shoes: Read more »

The liquidators want $1 billion for investors and the name of the rating agencies’ dealer for a friend. Read more »

Greg Palm doesn’t have time for them, nor does the NY Fed for employees trying perform the job they were hired for, alleges a lawsuit filed today. Read more »

Lawyers for Mr. Corzine filed a motion late Tuesday to dismiss a civil case against him brought by the Commodity Futures Trading Commission, the federal agency that regulated MF Global until its demise in 2011. The 30-page motion, filed in Federal District Court in Manhattan, outlined Mr. Corzine’s defense and leveled a sharp critique of the commission, depicting the agency’s lawsuit as poorly drafted and error prone. “There is no evidence demonstrating that Mr. Corzine knowingly directed unlawful conduct or acted without good faith,” wrote the lawyers from Dechert, Andrew J. Levander and Benjamin E. Rosenberg. “Rather than acknowledge that reality and move on, the C.F.T.C. has clung to its baseless presumptions and manufactured charges of wrongdoing that are supposedly connected to Mr. Corzine.” [Dealbook]

Were they baited with promises of meeting the Donald in the flesh, only to be offered an opportunity to stand in line for a photo-op with a poster bearing his face? Maybe. Did thousands of Trump College alums nevertheless give the school an A+, tuition well spent? Supposedly, yes. Read more »

  • 09 Aug 2013 at 3:51 PM

Phil Falcone Is Just Going To Start Suing Everyone

Once the Harbinger founder got a taste of how good it felt to serve someone papers, he just couldn’t stop. This morning it was the entire GPS industry; tomorrow, anyone who sold their LightSquared debt to Charlie Ergen, these guys, for not winning the Stanley Cup, and maybe the SEC, in some sort of countersuit. Which, if you were looking into the not too distant future, might go down something like this:

[Somewhere in midtown.]

Phil Falcone, to someone on the other line. It’s not clear who it is, but we get the impression she has hooves: Have you seen this American Express bill?! I told you we need to be cutting BACK, not spending MORE right now. [pauses to listen to Unknown Caller's response.] Well maybe I don’t care if Barney’s had a mumu that was speaking to you. [pauses to listen to Unknown Caller's response, with increasing impatience.] Well maybe I don’t care if you needed a pick-me-up, I told you we can’t be borrowing from the fund anymore. [deafening shrieking on the other end of the phone.] I’m sorry, I didn’t mean that. I’m just really stressed these days…

[A knock at the door.] Read more »

  • 07 Aug 2013 at 9:40 AM

Everybody Will Always Be Suing BofA Over Mortgages

These lawsuits against Bank of America are pretty lame, aren’t they? The SEC and Department of Justice each sued BofA yesterday for fraud in a 2008 prime jumbo mortgage securitization but it doesn’t really feel like fraud. The guns are smoke-free. The DoJ gets itself all excited because someone proposed including some bad mortgages in the deal, and a Bank of America trader said of those mortgages that, “like a fat kid in dodgeball, these need to stay on the sidelines,” but they did! The trader thought some of the mortgages were crap, and they were crap, and so they weren’t included in the deal. The system worked! It’s like if Fabulous Fab emailed his girlfriend saying “I am creating monstruosities,” and she told him to stop, and he did.

The complaints put their fraudy eggs in two main baskets. The first is that Bank of America omitted to tell investors some material facts, of which the most important is that 70% of the loans in this securitization were wholesale loans (originated through brokers), and that wholesale loans were worse – for both credit and prepayment risk – than loans originated by BofA directly. Read more »