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Banks could still see legal costs of $100bn

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Mortgage Professional America | 02 Dec 2013, 12:23 AM Agree 0
Big banks will continue to see fallout – and make payouts – in the wake of the subprime mortgage crisis, according to an analysis by Standard & Poor’s.
  • John C Durham | | 02 Dec 2013, 02:56 PM Agree 0
    Amazed S&P is ratting on the banks. Of course, the overall legal actions will certainly sink the banks, ie, the amount eventually brought against the banks will approach $2.5Trillion. So, S&P is trying to protect itself with this lowball estimate while still keeping the TBTF bank ratings high.

    There's not going to be any more bailouts and what is going on in Detroit will soon be understood as looting pension funds to pay derivative scam loses of that city and several others that are under attack by the thieving banks. The bank controlled governor wants the city in BK for only one reason. The 1995 bankruptcy law puts derivative holders first in line "Assault on Wall Street" front of all other creditors, including pension funds. Having screwed the city out of $Billions they are going to go for the workers' life savings.

    So, the banks are not going to get a way with a "bail-in" beyond stealing several millions of homes, which in time they will have to give back most of them also and pay some money too.

    So, in the long term, don't hold TBTF bank stocks and don't keep your money deposited there either. They are going to try to give American Depositors the Cyprus Treatment, ie, a "haircut".

    If the banks brought all of their off book gambling accounts onto their books, they are insolvent. Pure and simple. They are just trying to stay afloat by eating the People. And, Congress, by and large, and every President since Johnson (except Ford) has been helping them out.
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