The Triumvirate of Wall Street/ the Fed/ and US Politicians is Crumbling

Fleeing a Tsunami by frankie_8 / FreeDigitalPhotos.net

“Months ago, I warned that a tsunami of litigation was going to be coming to Wall Street and Washington.”

“Indeed, the only reason this process hasn’t already reached a fever pitch is because the benefits of not talking for most of those who were in on the corruption still outweigh the consequences of keeping their mouths shut.”

“It’s too early to know, but one thing is for certain, the litigation is beginning to shift from minor players to major players at the core of the Financial Crisis.    Graham Summers, Phoenix Capital Research

The Triumvirate of Wall Street/ the Fed/ and US Politicians is Crumbling

By Graham Summers
Phoenix Capital Research

Via zerohedge.com

February 17, 2012

Months ago, I warned that a tsunami of litigation was going to be coming to Wall Street and Washington. At the time I noted that Goldman Sachs CEO Lloyd Blankfein had recently hired a mega-defense attorney, as well as the fact that the Fed had gone into damage control mode (staging town-hall meetings, opening itself up to Q& A sessions, defending its actions to Congress, etc.).

I also noted in a recent article that the triumvirate of Wall Street/ the Fed/ and US Politicians would be crumbling in the future as these three groups tried to shift the blame for what happened during 2008 from one to another in an attempt to divert public outrage.

Indeed, the only reason this process hasn’t already reached a fever pitch is because the benefits of not talking for most of those who were in on the corruption still outweigh the consequences of keeping their mouths shut.

This process has already changed for some players in the financial game: we have recently seen some minor players get taken down, but those have primarily been insider trading cases involving expert networks, hedge funds, and corporate directors.

The main issue or question is: when do we start seeing the real power players at the heart of the Financial Crisis come under scrutiny (what Blankfein is clearly anticipating by hiring a defense lawyer).

By the look of things, it’s coming sooner rather than later:

Lehman Brothers Subpoenas Geithner In J.P. Morgan Fight

Lehman Brothers Holdings Inc. (LEHMQ) and its creditors late Thursday said they want to subpoena Treasury Secretary Timothy Geithner to question him under oath over allegations J.P. Morgan Chase & Co., (JPM) illegally siphoned billions of dollars from the collapsing investment bank in the days before it filed for the largest bankruptcy in U.S. history.

In a filing accompanying Lehman’s filing, made in U.S. District Court in Washington, Lehman’s official committee of unsecured creditors said Geithner has thus far refused to comply with an Aug. 9, 2011, subpoena, and it wants a court to force Geithner to give a deposition by a March 16 deadline.

“Despite being a crucial fact witness on these issues, Secretary Geithner has refused to appear at a deposition in accordance with a valid subpoena issued by the Committee,” the committee’s lawyers said in the filing. Geithner was president of the Federal Reserve Bank of New York at the time of the Lehman collapse.

http://online.wsj.com/article/BT-CO-20120216-722070.html

This could represent a potential sea change in the legal environment in the US. It’s clear Geithner thought he could get out of this mess by virtue of the fact he’s among the highest level of the power elite. However, the announcement that he doesn’t expect Obama to keep him as Treasury Secretary may have changed this.

For one thing, it’s clear that Obama is trying to distance himself from Geithner for political reasons (more than one GOP candidate has stated Geithner should be fired). The real issue is whether it’s been decided that Geithner will be the one who gets the albatross hung around his neck.

It’s too early to know, but one thing is for certain, the litigation is beginning to shift from minor players to major players at the core of the Financial Crisis. Investors take note, this is a major shift and needs to be monitored as it will have major implications for market dynamics going forward.

For the complete article: www.zerohedge.com/contributed/triumvirate-wall-street-fed-and-us-politicians-crumbling-pt-2

*Image reference:
Source: http://www.freedigitalphotos.net/images/Coastal_And_Oceans_g117-Fleeing_A_Tsunami_p61187.html
By frankie_8 / FreeDigitalPhotos.net

The publishing of this image does not imply that the author endorse this article.

*** More articles and videos from CanadaNewsLibre HERE !

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of CanadaNewsLibre. The contents of this article are of sole responsibility of the author(s). CanadaNewsLibre will not be responsible or liable for any inaccurate or incorrect statements.

The CNL grants permission to cross-post original CanadaNewsLibre articles and videos on community internet sites as long as the text & title are not modified. The source and the author’s copyright must be displayed.

http://canadanewslibre contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.

ↄ⃝ Copyleft CanadaNewsLibre 2012

About these ads

One thought on “The Triumvirate of Wall Street/ the Fed/ and US Politicians is Crumbling

  1. Complementary video: ”The Men Who Own and Run the U.S. Government 2011 Part 2 of 5”

    EbookCashStreams
    says:
    “Discover the truth about the men behind the curtain who own and run the U.S. Government. These men are totally evil, ruthless, greedy and vicious individuals who will stop at nothing to gain control of the world and the enslavement of us all. There is still time left to stop them and the internet is the only means possible as they own and control mainstream media but they are now taking steps to control and shut down the internet when ever they like”.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s