Breaking: Lehman Bros creditors accuse JP Morgan of freeezing

[malaise]

cash before collapse.

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4882281.ece
<snip>
JP Morgan ‘brought down’ Lehman Brothers
Iain Dey and Danny Fortson

JP MORGAN has been accused by its Wall Street rivals of dealing the final hammer blow that forced Lehman Brothers into collapse in a sensational claim that threatens to spark a colossal legal battle.

The giant American bank is alleged to have frozen $17 billion (£9.6 billion) of cash and securities belonging to Lehman on the Friday night before its failure.

According to Lehman’s biggest creditors, this was what precipitated the liquidity crisis that embroiled the firm, forcing it into Chapter 11 bankruptcy protection on the morning of Monday, September 15.

The allegations have been raised in a filing at the bankruptcy court in New York, lodged late last week. Lehman’s biggest creditors include almost every big firm on Wall Street, most of Europe’s heavyweight banks and insurance companies as well as a slew of Japanese and Chinese institutions that are owed several hundred billion dollars.

[napi21]

1. So ANOTHER ONE can't take any responsibility! Well, at least

they're not blaming the poor people!

[mhatrw]

27. So JP Morgan didn't do this? n/t

[ThePhoenix]

2. JP Morgan Brought Down Lehman Brothers

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x390652

:)

[malaise]

4. Just broke on GEM$NBC

LOL :D

[rucky]

3. JP Morgan is living up to its name & reputation.

[OmmmSweetOmmm]

5. It was rumored that JP Morgan did the same thing around the turn of the last century.

They supposedly spread rumors about some banks being insolvent. It was called the Panic of 1907. Shortly thereafter, JP Morgan was an instrumental force in passing the Federal Reserve Act.

Some things don't seem to ever change......

[chill_wind]

13. If you haven't had a chance

this is some very rivoting reading:

Bear Stearns (Vanity Fair, August 2008)

http://www.vanityfair.com/politics/features/2008/08/bear_stearns200808?currentPage=1

[OmmmSweetOmmm]

29. Thanks! Bookmarked to read later. :)

[BrklynLiberal]

6. Would not surprise me at all. They want to be the biggest financial corp in the world.

[lonestarnot]

7. Well isn't that just fucked!

[Subdivisions]

8. AHEM!!! WHERE ARE THE BAILOUT SUPPORTERS ON THIS? n/t

[malaise]

9. Hiding

They achieved their agenda and I expect them to return for the next bailout.

[NoUsername]

22. You nailed it. Their job is done. Well, for now anyway.

They'll surface again when it's time to promote "Bailout: The Sequel."

[EFerrari]

12. What is the problem? We knew SOMEONE had done this, right? n/t

[Junkdrawer]

20. Their job here is done...Until the next $700 billion is needed...

Suckers...

[leftofthedial]

10. this entire "crash" and bailout scam was a pre-engineered ripoff.

Is the economy in trouble? Of course it is. 28 years of supply-side theft has all but destroyed it.

The "crisis" and bailout have nothing to do with that other than using the threat of collapse to engender fear, panic and a horrible legislative blunder.

We've been had.

Again.

[Subdivisions]

11. Remember the old days when, if Paulson didn't get his unrestrained

power to spend $700 billion, yesterday, the result tomorrow would be too horrific to even describe it on teevee? That was two weeks ago. And, looks like it's going to be a couple more weeks to a month to put Ben/Henry Capitol Management in business.

So, have we, indeed, been had? Sure. Since the "crisis" was strictly limited to Paulson's spewage on or around Sept. 26 and seemed to fizzle long before the funds were awarded. And now that they have it, suddenly we have all the time in the world to begin valuing the assets and begin distributing the funds.

[chill_wind]

14. This is bothersome: January 2008, it was written

"The world's stock markets are in meltdown so the Fed came in with an inter-meeting move to try to stop the panic," Christopher Rupkey, senior economist at Bank of Tokyo-Mitsubishi.

Global financial markets had plunged Monday as investors grew more concerned about the possibility that the United States, the world's largest economy, could be headed into a recession. Many markets suffered their biggest declines since the September 2001 terrorist attacks

http://www.annistonstar.com/breaking/2008/as-wireupdate-0122-0-8a22k1107.htm

I don't question the brutal deterioration of the economy over this time of the Bush admin, but these quotes and benchmarks were echoed in just this past week and are eerily familiar. What I question is what the Hell they have been doing and yes, there's an extremely strong feeling of manipulation going on here, if you look back to that date.

to crosspost a quick comment I just made in another thread--

LAST JANUARY. And Congressional Committee men and Paulson only emerged from that meeting a couple weeks ago "white-faced and ashen"? Only then? For whose consumption was this?

[malaise]

15. Just check the discussions in February and March when Bush

and Paulsen were denying that the recession had started.

[chill_wind]

16. That was going to be my next google. Anybody have those?

eom

[malaise]

18. Here are some

http://www.voanews.com/english/archive/2008-02/2008-02-28-voa66.cfm?CFID=48076200&CFTOKEN=29231381

http://thinkprogress.org/2008/02/18/bush-iraq-economy/

http://www.msnbc.msn.com/id/23389508/

America’s economy risks mother of all meltdowns
http://blogs.ft.com/wolfforum/2008/02/americas-economy-risks-mother-of-all-meltdowns/

Interview with Joseph Stiglitz
http://www.pbs.org/kcet/tavissmiley/archive/200809/20080919_stiglitz.html

[chill_wind]

19. Thank you malaise. Very much.

(What a contrast between the reading experiences of the apocalyptic Roubini and the Joseph Stiglitz interview).

[malaise]

21. But as apocalyptic as Roubini was in February

he wasn't wrong. On the other hand we know that Stiglitz is comfortable in his skin.
I like this point - funny that both links mentioned 'a little froth'
What I find so amazing is that they didn't see this coming back in 2004, 2005 and 2006. There was a kind of complacency. Alan Greenspan was asked, "Is there a bubble?" He said, "A little froth in the economy. If there's a problem, we can take care of it." Well, when he said we can take care of it, he didn't say we can take care of it with billions and billions and billions of American taxpayer money.

[chill_wind]

23. Excellent points.

What I appreciate about Stiglitz is his unflinching emphasis on the devastation of the economy by our military occupations.
I hope with all my heart that Obama will make that understanding an absolute priority in his planning and decision making from Day One.

I look forward to a day when I can change my sig line, although, tragically as he says--

"we're piled up debt that our children and grandchildren will be paying."

[malaise]

25. Stiglitz does not deny facts or fudge them

to suit neocon ideology.

[chill_wind]

17. Here we go: "Yeah, we're on top of it."

"Mr. Secretary, thank you very much for coming by today to talk about the economic situation. We’ll be meeting later on this afternoon with the President’s Task Force on Financial Markets.

First of all, the secretary has given me an update. One thing is for certain — we’re in challenging times. But another thing is for certain — that we’ve taken strong and decisive action. The Federal Reserve has moved quickly to bring order to the financial markets.

Secretary Paulson has been — is supportive of that action, as am I. And I want to thank you, Mr. Secretary, for working over the weekend. You’ve shown the country and the world that the United States is on top of the situation.

Secondly, you’ve reaffirmed the fact that our financial institutions are strong and that our capital markets are functioning efficiently and effectively. We obviously will continue to monitor the situation and when need be, will act decisively, in a way that continues to bring order to the financial markets.

In the long run, our economy is going to be fine. Right now we’re dealing with a difficult situation and, Mr. Secretary, I want to thank you very much for your steady and strong and consistent leadership.

Thank you very much.

March 17, 2008, 10:14 am
Bush: ‘On Top of the Situation’ in the U.S. Markets

Henry J. Pulizzi reports on the White House.

http://blogs.wsj.com/washwire/2008/03/17/bush-on-top-of-the-situation-in-markets/

[malaise]

24. What a difference $700B makes

[chill_wind]

26. OMG. Priceless retort! :-)

eom

[gopbuster]

28. allegations and

Previous court documents have suggested that JP Morgan was owed $23 billion by Lehman in secured loans.

JP Morgan said: “These assertions raised by the creditors’ panel are unfounded conjecture. We will address them at the appropriate time in bankruptcy court.”

[closeupready]

30. No. What brought them down was that they bet BIG that subprime was going to improve.

There was an article about this in the NY Times, I think.