Law? LAW? We are BOA we don't obey no stink'n laws!
Posted on 12/14/2010 12:52:09 PM PST by longtermmemmory
U.S. Bankruptcy Judge James Peck said Bank of America violated federal law when it "brazenly" seized the deposits after having taken advantage of Lehman's weakened condition in the summer of 2008 in obtaining the money.
"It is difficult to understand how Bank of America could have thought that taking the money was the right thing to do without first seeking permission from the court," Peck wrote in a Tuesday opinion filed in Manhattan bankruptcy court.
"The actions taken were surprising and, quite frankly, disappointing for a leading financial institution that should care a great deal about its reputation," he wrote.
The decision is a victory for Lehman as it tries to repay creditors still owed hundreds of billions of dollars following its September 15, 2008 bankruptcy.
Peck directed Lehman to draft an order calling for the return of the $500 million plus interest, and for the parties to meet to discuss "the amount of any further monetary award."
"We are disappointed with the court's decision, and we continue to believe that our actions were fully supported by well established New York law and the unambiguous language of the bankruptcy code," said Bank of America spokeswoman Shirley Norton. "We are considering our appellate options."
Martha Solinger, Lehman's co-general counsel, said the company is gratified by and fully agrees with the ruling.
Lehman is also seeking to recover $8.6 billion it said JPMorgan Chase & Co extracted just before the bankruptcy, and an $11 billion "windfall" that Barclays Plc got in acquiring a U.S. brokerage unit. Peck handles those cases as well.
ULTIMATUM
=snip=
The judge said Bank of America gave Lehman an "ultimatum" that resulted in creation on August 25, 2008 of an account in which Lehman posted the $500 million as security.
(Excerpt) Read more at reuters.com ...
Bank of America up to its usual tricks. Disregarding law and doing whatever they want.
Bank of America disregarded the automatic stay of a bankruptcy court and did a snatch and grab.
Anyone going to jail?
(It was a rhetorical question)
Why don’t a few of us get together and rob a bank. If they catch us, we’ll just give them the money back and they’ll let us go.
Now that's funny. A bank that allows illegals to open accounts really cares about its reputation.
BOA is a completely corrupt organization.
B of A deserves to lose every customer they have. I no longer even accept checks drawn on B of A or any other TARP bank. If someone wants to do business with me, he has to come up with another method of payment.
BofA didn't not want ML or to be a part of TARP. They were threatened by the government with ruin if they didn't play along.
Bankruptcy judges don’t have jail power. They turn over the faud to the DOJ for FBI investigating.
BoA BOUGHT the Obama Administration that is why they can ignore laws. They have zero fear of prosecution.
“completely corrupt” would be a step up!
so we are told...
Wamu / Chase, as well. Never saw so much collusion and theft without a gun in my life! The Feds and Bofa and Chase belong in shackles n chains.
All banks who got TARP funds were essentially forced to take them.
However, the big banks and financial companies caused the problem in the first place.
Sorry, BoA, that was pre-Obama. Just ask the GM bondholders/
BoA is also snatching homes that are in the government’s loan modification process. They are the lowest of the banking bottom feeders, and that is extremely low indeed.
Wells Fargo does the same thing out here.
If you go to court to get court BK protection, they instantly seize your accounts and money and give control over to a “trustee” that will only talk to lawyers and is paid a commission by creditors on what they give to them.
Every lawyer here says WF the worst - don’t care about the law, they own the politicians.
Good news. Finally a bankruptcy judge who stands up for the rule of law against the thugs who are running our economy.
Too bad the bankruptcy judge in the General Motors case didn’t do the same thing. That whole business was a total violation of the rule of law.
I thought it was Barney Franks' fault?
BofA lawyers actually tell judges, TO THEIR FACE, “your honor you don’t understand how these things really work.”
your sarcastic picture is actual truth.
Wasn’t the Bank of America when it originally started the Bank of Italy?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.