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$8.5 Billion Settlement but No Fraud, Right? They Must Think We’re Stupid.

Posted by Larry Doyle on June 29, 2011 6:44 AM |

They must think we’re stupid.

News that Bank of America is poised to pay an $8.5 billion settlement in a claim by investors that the firm and a predecessor sold packages of loans/securities which did not meet standards and provide proper disclosures is a joke. Regrettably the joke is on us, that is, the citizens of this great land.

$8.5 billion may be a lot of money but what price warrants real justice?

I believe very strongly that real justice is never bought in terms of a mere financial settlement. Real justice does not come with the face of Benjamin Franklin. Dare I say, Ben and the boys would be retching right about now learning of the practices within the financial system and the “supposed” justice dispensed in the form of this settlement.

Where is the admission of fraud in the settlement?

We are supposed to believe that a firm can make an $8.5 BILLION settlement but there was no fraud? Are you kidding me?

We are supposed to believe that this settlement can serve as a precedent for other financial institutions to cut similar deals?

These institutions can borrow funds from the Federal Reserve at 0% and leverage those funds so who really pays this settlement? The American taxpayer in the form of a wealth redistribution into the financial system.

Settlement? Real justice? Bulls&$t!!

For those in the crowd who may think we need to move forward, put this mess in the rear view mirror, and try to heal our economy, I assure you the real price of justice neglected and justice denied comes in the form of capital flight.

Why is it that trading volumes in so many market segments are declining precipitously? For the very simple reason that when capital is not protected and real justice is not dispensed then investors will take their capital elsewhere.

Again, $8.5 billion may be a lot of money but let me assure those in Washington and on Wall Street that real justice can not be bought. Real truth and total integrity are NEVER for sale in the court of public opinion.

Those virtues are embraced only in the form of total accountability and transparency. Regrettably we witness little of these prized virtues in the canyons on Wall Street and the halls on Capitol Hill.

When will Wall Street and Washington wake up and realize that while many in our nation may be easily duped, the American public as a whole is NOT stupid.

Larry Doyle

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I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.



  • Taylor


    I learn a lot following your blog. From time to time I will discuss some of the content with my soon to be wife. Together we are disgusted at the lies of Wall Street. Our discussions about the lack of truth and transparency in the markets always has her ask one question, “Aren’t these people on wall street concerned investors will no longer invest their money with crooks?” I guess the declining trading volume is a sign of just that. My question is what if things don’t turn around? What if the regulators don’t start holding individuals accountable and show investors there can be confidence in the market? Can the system we have used (for the last 100-150 years?) go broke? If public companies don’t have money from investors my understanding is they can’t grow. This situation seems very bad.

  • LD


    Thanks for your kind remarks. I am happy to hear that you find my blog to be informative.

    Your soon to be better half is very savvy.

    Why are we witnessing Goldman and many others lay people off on Wall Street only to hire others in the Far East. Wall Street’s defenders would say that the firms are shifting focus to skirt new regulatory and capital standards. To a certain extent that may be true but it is also due to the fact that capital is moving to that part of the world and away from our markets.

    Will the system go broke? I do not think so BUT I do strongly believe that without market confidence, we will have sub-standard growth for a protracted period. That is basic ‘sense on cents’.

  • Howard T. Lewis III

    Check on the Skull and Bones Society and the SEC and the FTC. We are seeing the effects of the first installment of talmud law, which a few SCOTUS must have an opinion of.

    The Talmud says there is nothing morally or unethical about a jew ripping off goys. So don’t expect to see convictions where the law enforcement prosecution following this guideline. The guidelines extend beyond mere issues of the coin of the realm. They extend to investment fraud and any conflict involving trade or even violence between individuals.

    The nazis had a word for it. I don’t know what it was. Ask a zionist.

  • Miguel Grande

    The fine is for $8.5 billion? The problem they caused with this criminal activity is $9.5 trillion. Our government bailed them out to the tune of $27 trillion. What kind of justice is this? Now, does this mean that the banksters can start stealing people’s homesteads again with fraudulent documentation? When are these geniuses going to address the gorilla in the room which is the commercial real estate bubble?

    Soon the Amerikan people will shake off the cobwebs of befuddlement caused by the sodium flouride (rat poison)in their food and drinking water. When that day comes, they will be fighting in the streets and burning down the banks, police stations, govt buildings and synogogues. You can see the previews in Greece, Spain, Tunisia, Syria, Ireland, Portugal, Italy and Bahrain.

  • Ray Barboni

    Did anyone ever hear buyer beware, I would not have given then a penny. When you buy something make sure what you are buying is for real and not a piece of garbage. If you were sold a bill of goods and you did no due diligence. Forgetaboutit.

  • Alex Seredin

    Seems to me that Americans are so enamored with the idea that anyone can get rich and be like Howard Hughes or George Soros, all one has to do is save their dollars, buy low, and sell high and lay back and relax in a million dollar pad. This is a dream and it does not work that way. Americans have to learn to be satisfied with 1,200 square foot home, garden and borsch and salad for dinner. Which is much more than most people in the world have.

  • Bill Mantz

    Wasn’t Black Rock lobbying to advise the government on the appropriate valuation of mortgage securities when TARP was going to be used to buy assets from the banks?

    Weren’t they holding themselves out as the leading expert on mortgage securities valuation?

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