Lawsuits

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 »

  • 23 Sep 2013 at 2:01 PM

Steve Cohen Not The Only One Sick Of His Ex-Wife

Those of you who’ve kept a detailed spreadsheet of Things That Are Pains In Steve Cohen’s Ass know that a particularly hide-chapping outstanding item is that of his ex-wife, Patricia. Her existence in general, sure, but specifically the lawsuit she filed against him nearly four years ago. Over the years, the case has been dismissed and the case has been reinstated; Patty has replaced one lawyer, and another, and settled on a third; and the former Mrs. Cohen has gone from asking for $300 million to half of SAC to a measly $8.25 million. The one thing that hasn’t changed? Her desire to nail her ex-husband to the wall. And while she seems to have vowed to never, ever give up in her quest to do so, one member of the bench has decreed she’s got one final shot at settling this the legal way and then must resign herself to getting back at her ex by sticking pins in her Stevie doll. Read more »

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 »

Sayeth the SEC: Read more »