Lawyers Score Big Again

           As we understand yesterday's Reuters account, Sillycorp has agreed to pay $590 million to shareholders duped into buying the bank’s common stock between Feb 26, 2007 and April 18, 2008 because the Crime Family had toxic mortgage assets on the books at the time and kept mum about it.  By March 2009, Sillycorp’s stock had lost roughly $250 billion from the start of that class period, meaning the award amounts to substantially less than a penny on every dollar lost, so shareholders somewhere, maybe everywhere, have been horribly shortchanged by our pathetic legal system, though you can't tell who got what from the information reported.

           Whatever, it’s unlikely that anyone responsible for creating said toxic assets will pay anybody anything, and shareholders buying Sillycorp common before and after the class period weren’t included in the lawsuit, so, as near as we can figure anyway, their stockholder interest is, in effect, ponying up the cash.

           Lawyers initiating this kind of legal action generally do so to further victimize the victims, as it's our understanding that attorneys can pull down as much as half of the pitiful proceeds for themselves.

           Nothing in the Reuters story mentioned that part or even began to describe what’s really going on here.  More crooks.  More racketeering.  Different perps is all.

           Members of a corrupt bar climbing aboard the Crime Family gravy train to screw us on this one, totally ignoring 1) the 99 cents on the dollar that folks like you and I really lost, and 2) the Crime Lords who pulled that little toxic asset caper off.

           And all the reasons why Rigged-Market Nepotism can't possibly work just keep on keeping on.