Thursday, February 9, 2012

SEC to Issue Wells Notices to Several Major US Banks

Jim Sinclair was the first one to correctly predict that:  'What OTC derivatives do not do to the international banking firms, litigation will.'
Our friends at The Morgue and The Squid are currently facing a 1-2 punch.
Goldman's Blankfein already testified numerous times before the Senate that they were fully aware of the rancidity of the crap they were bundling and selling, but it was the hedge funds' fault for not doing due diligence.

Federal securities regulators plan to warn several major banks that they intend to sue them over mortgage-related actions linked to the financial crisis, according to people familiar with the matter.

The move would mark a stepped-up regulatory effort to hold Wall Street accountable for its sale of bonds linked to subprime mortgages in 2007 and 2008. At issue is whether the banks misrepresented the poor quality of loan pools they bundled and sold to investors, the people said.
It isn't clear which firms will receive the formal Securities and Exchange Commission enforcement warnings, known as "Wells notices."
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