Posts belonging to Category Bear Stearns

Wall Street Abuses Have Significantly Increased the Economic Problems Currently Faced by State and Local Governments


In “Paying a price for risky schemes,” Atlanta Journal Constitution reporter Russell Grantham presents an excellent overview of how at least a dozen metro governments and nonprofits that issued debt were whipsawed by the “shadow banking system” ? the freezing of the auction rate securities markets and complex derivative contracts called swaps. As a result, […]

Many Wall Street Banks Disguised CDO Scraps as Tasty Morsels


Bloomberg writer Mark Gilbert says that the trouble with collateralized debt obligations (CDOs), which slice bundles of asset-backed securities into different risk-reward classes, is that no one has a clear idea of how risky any given slice is or any sense of how to quantify and value that risk.

It’s Official – Most Americans Despise Wall Street


According to a recent Bloomberg National Poll, more than 50% of Americans despise Wall Street and favor punishment of the bankers who caused the worst financial crisis since the Great Depression. The majority of poll participants — 56 percent — say big financial companies are more interested in enriching themselves at the expense of ordinary […]

Federal Home Loan Bank Sues Securities Firms to Recover Subprime Losses


The Federal Home Loan Bank of Seattle has filed 11 lawsuits against an array of Wall Street banks, seeking rescind $4 billion of mortgage-backed securities with interest, according to a Feb. 16 Wall Street Journal article by Nick Timiraos, “Home Loan Bank Sues Wall Street Firm.” The lawsuits were filed in late December in King […]

Page Perry’s Market Monitor – November 13, 2009


There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following: The Dow Jones Industrial Average opened the week at 10,023 and, on Monday, the […]

Wall Street Firms Want a “Free Pass” for Ripping Off State and Municipal Governments


Wachovia Bank, JPMorgan and other major financial institutions have filed their second motion to dismiss a complaint brought against them by more than a dozen state and local governments alleging price-fixing and bid-rigging of municipal derivatives markets. This according to a recent article by Erin Fuchs in Law360 entitled “Banks Shoot To Kill Municipal Bond […]

More Investor Claims Focus on Sales of Preferred Stocks Issued by Financial Institutions


Investors are bringing an increasing number of legal claims against brokerage firms as a result of inappropriate sales of preferred stocks issued by financial institutions. For example, Merrill Lynch has been hit with an arbitration claim filed by an elderly couple that lost $650,000 in the preferred stocks of financial companies according to Sue Asci […]

Wall Street Trade Association Supports Fiduciary Standard


The Securities Industry and Financial Markets Association, an important Wall Street lobbying group, has decided to support the Obama administration’s proposal to hold brokers to the same standard as a fiduciary when they provide investment advice, according to a recent report in The Wall Street Journal. While investors who sue their brokers have long argued, […]

Addressing Recent Wall Street Misconduct Requires The SEC to Adopt Creative Approaches


Citigroup and the U. S. Securities and Exchange Commission (SEC) are discussing possible settlement of an investigation into whether Citigroup overvalued billions of dollars of subprime mortgage-backed securities on its books in the latter part of 2007, according Susan Pulliam and Randall Smith of the Wall Street Journal in a May 28, 209 article entitled […]

Public Confidence in SEC Sinks to New Low


According to recent surveys, the public now views the U.S. Securities and Exchange Commission more unfavorably than the “always hated Internal Revenue Service,” reported Bruce Canton in his column called “Enforcement Action,” published on In its National Juror Survey, Litigation PostScript found that 55% of the respondents expressed an unfavorable opinion of the SEC […]