Bernanke & Paulson Broke The Law

Discussion in 'Law and Justice System' started by sealybobo, Apr 24, 2009.

  1. sealybobo
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    sealybobo Diamond Member

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    NPR: BOA Pressured By Feds?

    New York Attorney General Andrew Cuomo says former Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke pressured Bank of America CEO Ken Lewis to complete the bank's purchase of Merill Lynch. In a letter sent to members of Congress and federal regulators today, Cuomo says the government officials threated to get rid of the bank's management, including Lewis, if the deal did not go through. The Wall Street Journal reports:

    They also asked Lewis to mislead his stockholders, which is against SEC regulations. That could land these men in jail.
     
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  2. Yurt
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    Yurt Gold Member

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    so the threat to remove is against the law?
     
  3. sealybobo
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    sealybobo Diamond Member

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    None of the details revealed by Lewis' testimony to Cuomo's office--all substantive matters that would have been of keen importance to shareholders of Merrill Lynch and Bank of America--were ever made public before the deal went through on Dec. 31. That is a shocking violation of the requirement to inform shareholders of any material matters that could impact their vote or holding of shares in either company. This nondisclosure of market sensitive information means all the trading between Dec. 15 and April 22--tens of millions of shares of the largest U.S. bank--was executed on the basis of withheld information. This is a shocking violation of 75 years of securities regulation.

    Incredibly, the SEC was never informed of any of this: that Merrill was about to report a huge $15 billion loss, that Lewis wanted to kill the deal, that Paulson told Lewis that Bernanke had instructed him to fire Lewis and dismantle his entire board if he refused to go through with the merger. It's not exactly clear what authority Paulson and Bernanke were going to use to replace Lewis and his board--powers they might assume in a pending systemic breakdown?

    "Notably, during Bank of America's important communications with federal banking officials in late December 2008, the lone federal agency charged with protecting investor interests, the Securities and Exchange Commission, appears to have been kept in the dark," states Cuomo's letter to congressional leaders. "Indeed, Secretary Paulson informed this office that he did not keep the SEC chairman in the loop during the discussions and negotiations with Bank of America in December 2008." In other words, Paulson's disdain for SEC Chairman Christopher Cox meant that the Treasury was operating in an autonomous, somewhat high-handed fashion.

    BUSTED!!!!!

    Lies, Threats, Deal: Paulson, Bernanke, Lewis - Forbes.com

    Yes, highly illegal and charges can be brough.
     
  4. Indiana Oracle
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    Indiana Oracle The Truth is Hard to Find

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    Do not doubt some version of this is true. Why he would recommend buying a company in such financial trouble would be a mystery otherwise.
     
    Last edited: Apr 24, 2009
  5. DamnYankee
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    DamnYankee No Neg Policy

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    Not to mention, coercion is illegal.

    Coercion in law, the unlawful act of compelling a person to do, or to abstain from doing, something by depriving him of the exercise of his free will, particularly by use or threat of physical or moral force. In many states of the United States, statutes declare a person guilty of a misdemeanor if he, by violence or injury to another's person, family, or property, or by depriving him of his clothing or any tool or implement, or by intimidating him with threat of force, compels that other to perform some act that the other is not legally bound to perform. Coercion may involve other crimes, such as assault . In the law of contracts, the use of unfair persuasion to procure an agreement is known as duress ; such a contract is void unless later ratified. At common law, one who commits...

    http://www.encyclopedia.com/topic/coercion.aspx
     
  6. Yurt
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    Yurt Gold Member

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    oh.....then you fully support obama being charged with removing the CEO of GM....
     
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  7. DamnYankee
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    DamnYankee No Neg Policy

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    Probably didn't realize what the corner looked like before the painting began....
     
  8. sealybobo
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    sealybobo Diamond Member

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    Why? Did Obama tell the CEO of GM to do something or else?

    Seems more to me like Obama just fired him.

    You know what? You right wingers, corporate defenders, free market, deregulators, do not get in corporate americas way even if they are poisoning us because they need to make a profit!!!

    If we don't allow corporations to do whatever they want, they might raise prices or lay people off. Waaaa!!!!

    Pussies!!! As if Corporations are more important than people. You right wingers are pathetic.

    PS. Here in Michigan, we were the only state where a person could not sue the pharmacutical companies if their drugs were approved by the FDA. Can you believe that? The reason we did that was to lure the drug companies to Michigan.

    Well they have left now. So fuck them, right? You would think Michigan would lift that law since it isn't keeping Pfeiser around, right?

    WRONG!!!

    The Michigan GOP won't let it go up for a vote. They are defending the drug companies right to murder us for profit.

    How can I see it any other way?

    But I must admit, I love it that the GOP has lost their way. They're the pro torture, pro murdering us citizens, pro hoping for another terrorist attack so they can win the next election, party of NO.

    That'll win back a lot of voters. And you guys call me a partisan hack? :lol:
     
  9. Meister
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    Meister VIP Member Supporting Member

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    Actually, this is a good thread Bobo, I'm surprised that you posted it. This did impress me. We will be seeing a lot more of this coming from our government as it grows and starts nationalizing businesses. Strong arming, from our government is shameful, and not really what our Founding Fathers had in mind when they set up this great nation. The writing is on the wall, but I wonder if anyone is reading it?
     
  10. Meister
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    Meister VIP Member Supporting Member

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    Sealy, when you talk about corporate America, your talking of thousands of law abiding businesses that need no regulation. There is a very small percentage that needs to be handled. Please when you talk about corporate America...look at the big picture, and not catagorize all of them into something negative.
     

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