Bankster Civil War

[marmar]

(Bloomberg) Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM) and other banks may pay more to resolve claims over their alleged roles in the collapse of a $2.3 trillion mortgage- backed securities market if sophisticated investors are allowed to sue as a group along with less savvy ones.

Class-action status allows investors to pool financial and legal resources, giving them greater leverage to win larger settlements or verdicts. The banks, however, have a court ruling on their side that may help fend off such blockbuster cases. It says class status is barred because some investors are too sophisticated -- in fact, because some of them are other banks, including JPMorgan.

“It is possible to be both an alleged perpetrator and victim at the same time,” said Jacob S. Frenkel, a former U.S. Securities and Exchange Commission lawyer now in private practice in Potomac, Maryland. “It’s unprecedented that you have the most sophisticated institutions as victims, to be in a position where their losses are so great that they have sued.”

The ruling by U.S. District Judge Harold Baer Jr. in Manhattan, favoring defendants Royal Bank of Scotland Group Plc (RBS) and Ally Financial Inc., held that investors may not sue as a class in part because some of them are being sued over the same claims. Last month, that ruling was countered by two judges in Baer’s courthouse, both of whom ruled that investors in home- loan backed securities may sue as a class. ...............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-09-09/banks-may-fight-banks-as-mortgage-securities-investors-try-for-class-suits.html

[xchrom]

1. May they eat each other into nonexistence. Nt

[marmar]

2. Amen to that.

And start over with localized retail banks that don't dabble in casino, err, investment banking.

[banned from Kos]

3. this is a total mess. The $20 billion settlement was logical and clean.

Very little in actual damages for robo-signings will be proven in the 50 different state actions.

As for civil bank-on-bank MBS suits - why does anyone here care? So you prefer Blackrock over Bank of America? Fine. 99% of America doesn't know who Blackrock is. Or RBS. Or HSBC.


This will now drag on for years.