Weekend Special - Lehman, Pumping, And Lawsuits
The Market Ticker ® - Commentary on The Capital Markets
Posted 2008-08-22 18:14
by Karl Denninger
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Weekend Special - Lehman, Pumping, And Lawsuits
 

The story of the day, which hit at 6:00 AM CT, was that Lehman was being "eyeballed" by a Korean group lead by Korea Development Bank (KDB).

This resulted in an instant ramp in the futures which persisted into the day, and was the catalyst for the near-200 point rally in the market.

CNBC and Bloomberg were repeating the story literally all day long, with Bloomberg running it as recently as 5:30 Eastern.

There's only one problem - KDB denied the claim early this morning:

"South Korean banks led by Korea Development Bank (KDB) have shelved plans to buy a stake and management rights in Lehman Brothers due to concerns about its financial health, a report said Friday.
....
Problems with the accounts were more serious than initially believed, an unidentified government official was quoted as saying. "We concluded that it was too risky for KDB to take the deal."

That was 9:00 Central Today.

As of 5:00 PM Central the claim that there is interest in a deal continues. 

Even though it has been officially denied by the government, which runs KDB.

Never mind that there are all sorts of other problems, like the fact that an actual purchase of a US Investment bank by a foreign-government-controlled entity has about as much chance of passing regulatory approval as does the chance of us selling Iran a suitcase nuke for $25, especially with a Democrat majority Congress.

Now I can see the news media reporting the "rumor" because, well, they do that sort of thing.  I can also see it producing a ramp job in the futures, which it did.

But how can you defend the media continuing to run this "story" literally every 15 minutes, either directly or in some kind of crawler on the bottom of the screen, when the people who would be doing the buying have said they are not interested because they don't trust the financials of the firm involved!

(I will give props to CNBC on this in one regard - Jeff Macke on Fast Money midday said he didn't believe it for a second.  Well duh, that might be because Korea's government denied it!)

Folks, if you bought stock today and this "rally" turns out to be utter and complete crap, especially if you bought Lehman stock, and no deal materializes, you may want to talk to an attorney.

See, the news media has broad-based First Amendment rights to voice opinions. 

But willful and intentional ignorance of the facts may indeed cross a civil liability line, and if I were damaged from such an event, you can bet your last nickel I'd be trying to find out.

Now maybe Monday morning we will wake up to hear that indeed a deal has been announced or that there really is something in play.

But assuming there is no deal, at some point this sort of outrageous conduct in the face of an explicit denial (which was NOT mentioned on the air to the best of my knowledge) has to be met with some sort of legal sanction by someone.

The outright lying and complicity of the media when it comes to the market is completely out of control.  We've been treated to these rumors of "buyouts" of all sorts for the last year, and almost without exception, they have proved to be lies and produced nothing but losses - sometimes catastrophic losses - for the investors who believed them.

If you agree, send this ticker to enforcement@sec.gov or write your own letter.  It is high time that sort of garbage be stopped and the people producing, disseminating and "pumping" these rumors be prosecuted. 

Discussion below (registration required to post)
 

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Ads215
Posts: 7773
Incept: 2007-11-03
Green
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Couldn't agree more, KD. Emailed a copy to the address provided, thank you.

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Every man is guilty of all the good he didn't do - Voltaire
Widgeon
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Three Ticker Day - Woo Hoo.

Pabloescobar
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I believe a letter to your state attorney general is in order. Careers can be made here.

But please make sure your AG is either a woman or a very old man, otherwise they may be Spitzerized.


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Widgeon
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GEEZ - Look at This ... This Rumor Just Keeps Spreading Like Ebola.


http://www.tickerforum.org/cgi-ticker/ak....
Maple
Posts: 4785
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Gold
Southern California
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Sent. Thanks for the email address.
Quik49
Posts: 3265
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out yonderway
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Sent....with a little "get off your ass and do something".....

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UVA UVAM VIVENDO VARIA FIT

Bear
Posts: 6822
Incept: 2007-07-10
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SoCal, and my avatar is so ****ing small you cant see it
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did the same thing.....emailed it to every ****ing .gov addy I have

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Paying other people interest to borrow money from ourselves that we don't have...... Asimov

It is quite possible that ALL debt in FRB with fiat currency is insoluble...Mogambu
Widgeon
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Sent a letter and attachment.
Widgeon
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I closed mine w/

"I'm A Citizen Too"

Not they'd understand that anymore.
Asimov
Posts: 104066
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East Tennessee Eastern Time
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Like they care.

I did send it though, in some vain hope that somebody gives a sloppy wet, run down your leg, ****.

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It's justifiably immoral to deal morally with an immoral entity.
If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente.
Nomorespin
Posts: 1497
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KD,

What would it cost to do a class action lawsuit for all of these schenaigans. We have record of a lot of these. Today was completely blatent.

Can we get a tickerforum legal fund together and just hammer these asshats with one lawsuit after another? Criminal enforcement sure doesn't work, I think the best way to stop this rumor bull**** is with a class action civil suit.

Does anyone know a good attorney who would be willing to take on all of this ****? Maybe someone fresh out of law school and hungry for some good press?

I'll pony up $100.00. I'd do more, but things are tight around here. I think if we could get more donations, maybe we could get together a legal team and ram these asshats where it hurts.
Genesis
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You need standing (loss) as a result of the lie for starters...

If I knew a bright young lawyer looking to make a name for himself..... I betcha we could find injured parties....

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Nomorespin
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There's got to be someone on this forum who knows someone like that. Should I start the thread or do you want to?
Genesis
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GO for it.

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Nomorespin
Posts: 1497
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Green A True American Patriot!
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OK,

Where's the best place to post it and how do people tag donations for the Tickerforum Class Action Fund?
Fugitivekind
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Green A True American Patriot!
Boston
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Sent an e-mail to the SEC

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"I refuse to leave our children with a debt they cannot repay, and that means taking responsibility right now, in this administration, for getting our spending under control."
Barack Obama, Feb. 29, 2009
Widgeon
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Well, let's see ...

How much on Black Thursday? $80k or so LOSS
How Much on BSC Day? $#60K or so LOSS
Today - about $10K. But, I'M CERTAIN THAT'S COMING BACK

Actually, they've all come back - but they also certainly left a multi-month mark.

How about my TMA puts from February that were lied out of existence ...

Lot's of "Losses" that a properly motivated attorney could latch on to.

Nomorespin
Posts: 1497
Incept: 2007-07-17
Green A True American Patriot!
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I'll post this here, then again I guess in General. Critiques welcome before posting in general.

Tickerforum Class Action Fund

Here’s the skinny, we’ve all been burned by blatant lies and rumors. The Lehman rumor today was the most obvious. What I’m proposing is a Tickerforum Class Action Fund. We all know that these asshats are not going to be prosecuted criminally, so what we need to do is hit them where it hurts.


Here’s what we need.

1) A Bright young Attorney looking to make a name for themselves.
2) Cash to pay them while they’re hammering out multiple Class Action Lawsuits
3) Documented Injured parties.

I’m ponying up $100.00 this evening for it. That’s a lot for me right now, but this is something I believe in. I honestly believe this is the only way we can get the markets to a level playing field again.

If anyone knows of an attorney or law student willing to get involved, please post. If you can provide a donation for the legal fund, that will work too.

If we can make this work, we can make a difference.

Bubblesee
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nyc
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Gen - is this letter for real? ( Fuld begging Buffett )

http://www.bestwaytoinvest.com/display/1....

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Ticker Forum Special:
"Bennie and the Feds" Melody:Elton John Lyrics:Bubblesee
http://www.youtube.com/watch?v=etfVMtCq9Oc
(Larry Kudblow eat your heart out)
Econ101
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bubble,

that is attempted comedy.
Bubblesee
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Funny thing is - almost every Buffett rumour (cfc etc.) pumps the market for at least a day before anyone has to admit that it was BS.......


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Ticker Forum Special:
"Bennie and the Feds" Melody:Elton John Lyrics:Bubblesee
http://www.youtube.com/watch?v=etfVMtCq9Oc
(Larry Kudblow eat your heart out)
Blackswan
Posts: 5564
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Gold
Just outside of Philly
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Thanks KD. Look at my avatar. That's what that ****er Fuld and Lehman scum did to me today. I know take it to the bar but this was such bull****. CNBC should pay out billions to shut that piece of **** down. I don't watch that RICO channel.





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“It’s checkmate. Everywhere it’s checkmate.”
Hugh Hendry
Neontm968
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SENT!

ntm
Themortgagedude
Posts: 8853
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saint louis
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A three ticker day. Someone*****ed in KD's cornflakes this morning at about 6am. **** all these pigmen.

Gen did you see my post last nite on another thread where Hanky did not have to pay capital gains on 500 million of Goldman stock he was required to sell when he went to treasury department. And I wondered why he went to treasury. I got my answer when I read that on Bloomberg.

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I'm already visualizing you with duct tape over your mouth.
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