Yesterday, I did a blog entry on how the Financial Crisis Commission was set to recommend civil and criminal prosecutions against the banks and several financial industry people who appear to have broken the law.
Now we have a report from The Atlantic detailing corruption at collapsed bank Bear Stearns.
According to a lawsuit against Bear Stearns and JP Morgan, which conveniently looked the other way when it bought the remains of the failed bank, Bear Stearns traders were telling their superiors that the securities they were selling amounted to a "sack of shit".
According to The Atlantic, the traders were double dipping. It says the traders would "sell back the bad loans with early payment defaults to the banks that originated them at a discount. The traders would pocket the refund, and would not pass it on to the mortgage trust, which was where it should have gone to be distributed to the investors who owned the bonds."
Translated, that means the traders were getting paid twice.
And JP Morgan knew about it but covered up the fraud. That allowed executives to reap "tens of millions of dollars in compensation" from the deal, the suit alleges.
It's time the banksters were sent to jail.
no comment untill now