20 March 2012

Melin and Koutoulas: Did JP Morgan 'Loot Accounts' At Lehman and MF Global As Bankruptcy Tactic



It is one thing for an organization to use its privileged position to seize assets in a firm that it knows is going to go bankrupt. That is certainly a possible crime under the fraudulent conveyance laws, as well any violations of fiduciary responsibility.

If a lawyer, for example, knows that a client is going to go bankrupt because of their privileged view of the situation, do they have the right to seize any and all of their client assets for themselves, to secure any outstanding obligations the customer may have with them? Does this include escrow accounts and assets held on behalf of other parties and creditors?

But beyond this, what compounds the situation is any subsequent obstruction of justice, and racketeering with regard to concealing the discovery of those looted funds and assets that were taken extra-legally under some self-serving rationale, and the perversion of the process of the law as a result of this effort.

Remember, it was the concerted attempt to conceal a 'third rate burglary' that finally brought Nixon crashing down.

But I have to admit, this occurred at a time when the nation and its representatives still had an active conscience, that could be repelled in disgust at the trampling of the Constitution. It is not so clear that the soul of the nation has not been deadened by years of deceit and excess, dulled by propaganda and self-serving relativism.



The powerful always snicker, reveling at the height of their reign. They murder the messengers and prophets, to maintain their delusion. And they abuse justice, and the cries of the oppressed rise to heaven.

And then it may not be man's law but God's justice that prevails, and that will be a terrible chastisement indeed, the inevitable downfall, der untergang, of a group of wealthy people driven mad by the will to power and the illusion of their own exceptionalism. And then they will be broken in default and disgrace, as a sign to the faithful.

"For the oppression of the poor, for the groans of the much abused, now will I arise, says the LORD. I will set them in safety from those that sneer at them. The words of the Lord are pure words: as silver tested in a furnace purified seven times.

You shall keep them safe, O Lord, you shall preserve them from this generation of vipers forever, where the wicked prowl on every side, where vile men are exalted." Psalm 12:5-8