The Colonel Strikes Again

And here’s that name again….

Banks stand to lose millions of dollars in debt repayments if the biggest municipal bankruptcy in American history is allowed to proceed.

But the real victims of the financial collapse in the US state of Alabama’s most populous county are its poorest residents – forced to bathe in bottled water and use portable toilets after being cut off from the mains supply.

And there is widespread anger in Jefferson County that swingeing sewerage rate hikes could have been avoided but for the greed, corruption and incompetence of local politicians, government officials and Wall Street financiers.


The facility, which has been under construction since 1996, was meant to cost about $300m.

But the bill soared to $3.1bn after construction problems and a series of bond and derivatives deals that went sour in the financial meltdown of 2008.

Investment bank JP Morgan Securities and two of its former directors have been fined for offering bribes to Jefferson County workers and politicians to win business financing the sewer upgrade.

Fined? Just a cost of doing business…

And here we are again

Named are Bank of America, Citibank, JPMorgan Chase, Wells Fargo, and Ally Financial, the former GMAC. The 57-page suit accuses them of a host of foreclosure violations, filing fraudulent legal paperwork, clouding the legality of thousands of deeds and transfer documents by having “robosigners” affix their names to what are supposed to be affidavits, and refusing to honor debt-relief laws.

“For unlawful and illegal foreclosure against homeowners in Massachusetts, this is the first comprehensive lawsuit seeking to attain accountability and real relief for the banks’ role and their misconduct,’’ Coakley said.

This won’t stop until executives start going to jail.

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