Saturday, September 03, 2011

US Govt plans to file law suit against major banks

This is an interesting development. The lawsuits are for misrepresenting the risks in the mortgage backed securities. These products caused the global financial crisis and led to heavy investment losses for Singapore investors following the collapse of Lehman Brothers. The US Govt alleged that the banks failed in their duty. 
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8 comments:

Anonymous said...

US govt thinks their banks failed in their duties.

our govt think its banks had done nothing wrong.

Funny right?

September 03, 2011 1:03 AM
Anonymous said...

@ 1:03am.

It's not funny.
It's sad.
But not surprising.

If you expect the worst from a certain political party.
You will generally not be wrong.

This is what happens when "profit maximization" instead of values are used to formulate policies.

Reminds me of an old joke.

Guy asks a pretty girl if she would go to bed with Tom Cruise if Tom Cruise paid her $1 million dollars. The girl says yes.
Guy then asks if the girl will go to bed with him for $1 million dollars.

Girl is outraged and says "what do you think I am?"
Guy says, "We have already established that. We are trying to establish the price now."

The road downhill starts with small little baby steps.
And before you know it, you find yourself lost, in an unknown place.
And without a moral compass (values), you can't find your way home.

September 03, 2011 9:31 AM
Anonymous said...

US govt got no share in their banks. Singapore govt got share in DBS. Hence cannot sue thyself?

September 03, 2011 11:04 AM
Anonymous said...

Thr US govt. don't own the banks.

S'pore government is closely linked to our banks e.g. OCBC

September 03, 2011 12:22 PM
Anonymous said...

Can the new EP answer the question?

September 03, 2011 2:04 PM
yujuan said...

All banks and insurance companies are mollycoddled by Govt in Singapore. Govt is indebted to them to keep up running our country to be one of the financial centres of the world. So never invest in bank products and insurance plans, unless for basic health protection. Better to invest in Hongkong or Australia.
All those bank wealth managers are all out to make commissions only. Die die is your business, they are protected by our Govt, through discriminating Laws against investors.

September 03, 2011 2:17 PM
Anonymous said...

MAS is never for the consumers.It is paid by the FIs. Without the FIs it doesn't exist.

September 03, 2011 6:38 PM
Tan Kin Lian said...

The legal suits are for losses sustained by the two mortgage agencies, i.e. Fannie Mac and Freddie Mae. Any settlement will get money paid back to the Government and not to the individual investors. However, the shareholders of these two agencies will benefit from the compensations that are recovered.

September 05, 2011 8:35 PM

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