Via stupendous Google linkage of 1.5 million links, public opinion is formed; JP Morgan is the cause of Lehman’s bankrupty. Interlaced in the linkage is Moody’s ratings.
The plaintiffs claim that JP Morgan just helped themselves to Lehman’s funds thereby causing the collapse which would turn the royal house into no more than a “roach motel.” (NY Times, “Funds Try to Lose Ties…” )
Lehman’s CEO sits just as well on the board of the Federal Reserve Bank of New York as JP Morgan’s. See Fed’s bailout of JP Morgan in March (veiled as a Bear Stearns bailout and “not to set a precedent”); the Feds gave JP Morgan the dough. Could we the undernourished not assume the same game is on target date here?
Warren Buffett’s Moody’s ratings gave the push for the fall of Lehman. no doubt, but who told them to do so and what was the payoff?
March 17, 2008
Moody’s gets moody with Lehman Brothers or just following orders?
–“a positive outlook is no longer warranted.”–“Moody affirm’s Lehman’s Debt“
March 27, 2008
“Senator Christopher Dodd, in a radio broadcast of March 27, 2008 and noted in the New York Post,(note 3) stated that [JP Morgan’s] James Dimo had a conflict of interest, given his position on the NY FED Board of Directors and that matter needs to be examined. But Dodd failed to mention the conflict of interests at the April 4, 2008 Bear Stearns/J.P. Morgan bail-out Senate hearings. Perhaps it was because Senator Dodd receives political campaign contributions from none other than James Dimon.”
… not really… it was the order.
May 22, 2008
“Moody’s was already under fire over the U.S. mortgage market crisis when it took a fresh blow on Wednesday — launching an investigation into a report that it had wrongly assigned triple-A ratings to about $4 billion of complex European debt products — Constant Proportion Debt Obligations (CPDOs), funds that used borrowed money to bet on credit-default swaps — and had then not downgraded them. Buffett’s comment: “I don’t think one day will permanently change the franchise value of Moody’s.”–Can Buffet’s Moody’s survive?
September 9, 2008
“Moody’s announced that they would downgrade Lehman Brother’s debt ratings unless it completed the transactions it had already announced earlier. Further, Moody’s felt that Lehman’s falling equity prices showed that it was fast losing the market’s confidence and hence just raising capital would not be sufficient.”–“Moody’s Dangerous Aggression“
September 10, 2008
“The stock of the investment bank was increasingly targeted by short
sellers after Moody’s Corp. said that same day it might lower its
ratings for Lehman unless it reached a “strategic” merger with a
stronger partner, according to the filing. “–Google Finance
September 15, 2008
Moody’s announces merger with Fermat International.
September 15, 2008
Federal Reserve pays off JP Morgans first advance of $87 billion to the Lehman Bros. It is not the Federal Reserves’ function to do so and yet they “allowed” Lehman to fail? Lehman a willing victim in a privileged strategy?
September 25, 2008
Warren Buffet shoots up Goldman with $5 billion and then demands, not asks, a $700 billion bailout from Congress.
September 26, 2008
Federal Reserve overlooks 5 day antitrust waiting period for both Goldman Sachs and Morgan Stanley to become bank holding companies.
October 4, 2008
Congress passes $700 billion bailout plan.
October 8, 2008
Moody’s states upgrades not tied to government intervention (nothing about downgrades tied to government intervention mentioned ever):
“In some cases, downward rating transitions could be severe if we determine that the risk that a bank might not survive the current cycle, and default consequently becomes material.”–Mortgage Strategy
October 12, 2008
Depository Trust and Clearing Corporation states “The payment calculations so far performed by the DTCC Trade Information Warehouse relating to the Lehman Brothers bankruptcy indicate that the net funds transfers from net sellers of protection to net buyers of protection are expected to be in the $6 billion range (in U.S. dollar equivalents).”–naked capitalism, DTTC states Lehman CD swaps trouble overblown.
And just to make sure I got my facts right, Lehman Brothers and JP Morgan and who? board over there at the Federal Reserve Bank of New York and still have a little statute hanging over their head…
USC Title 18 Chapter 11, section 208 (note 1) makes it a felony punisable up to 5 five years for members of the Board of Directors of a Federal Reserve Bank to make Bank decisions which benefit their own interests.
and a lineage, that will make you scratch more than your head. see lineage.
Meanwhile the people remain undernourished… the people suffer….
and while Martha lied about the white-out on a ‘while you were out’ message pad and was sent to the slammer…
will these people suffer for lying to and stealing from the undernourished, we the people?