I fully agree, that was an awful interview. Granted, there's no doubt in my mind that there is political motivation behind this, but you simply don't act like that and expect any respect from viewers - or anyone for that matter.
Having said that, I would very much like more details as to this story. STT claims it has done nothing wrong, so I would like to see details of the contract what the details are on how exactly they broke it. This could be serious or it could be a computational (albeit shady) error. Ie, charging 2.00 for a trade compared to an actual charge of 2.009 which may have gotten lost in the fine print. I've heard that sort of thing before.
In any event, another poster mentioned the long-term repercussions beyond just the 50 million in alleged fraud and around 200 all together with penalties. I personally do not expect a transition (by calpers etc) of such magnitude to happen over a charge such as this as it would be costly and time consuming. All of the involved parties in this fraud case can throw 50 million around like its nothing. It may very well equate to as little as a couple dollars per account involved over the course of almost 10 years.
With all of this in mind, I do believe there is some political grandstanding going on here. However, I think its a good thing regardless of any motivation that might behind or it however minuscule the fraud may be. Companies should be held responsible for their actions - if they, in fact, are committing fraud. Looking forward to the details.
By Michael Corkery It isn’t often that State Street Corp. is portrayed as the bad guy? (Heck, it isn’t often that the staid Boston bank gets mentioned in the news at all)
But in a lawsuit filed today in Sacramento Superior Court, the state of California says State Street “raided the custodial accounts of California’s two largest pension funds.”
California Attorney Jerry Brown, who brought the suit, said in a statement that State Street bankers committed “unconscionable fraud” by overcharging the California State Teachers Retirement System and the California Public Employees Retirement System.
At the heart of the lawsuit, which Brown says arose from a whistleblower, is the allegation that State Street overcharged for foreign-currency trades that the bank executed on behalf of the pension funds. The lawsuit says State Street and the pension funds had agreed that the currency trades would be based on the “Interbank Rate.” Instead, the bank allegedly “marked up” the rates without disclosing it to Calpers or Calsters. As a result, the lawsuit alleges, the pension funds were overcharged $56 million.
Then CNBC helped spice up the State Street story even further. A few minute ago, Brown was interviewed on CNBC, where he was grilled by the network’s on-air reporters about his motivations for filing the lawsuit. The reporters suggested that Brown, a veteran Democratic politician who is considered to be possible gubernatorial candidate, was talking to the press about the lawsuit to further his political ambitions.
Brown reminded CNBC that it requested the interview with him. “First of all, if you don’t want the interview shut it off. It was your idea. That’s pretty silly. You feed off this.”
Reporter Dennis Kneale followed up with a question about whether the whistleblower was a private law firm that Brown’s office hired.
Brown looked incredulous. “What are you doing? Are you pimping for the defendant?”
(The identify of the whistleblower is under seal)
A State Street spokeswoman told the WSJ the bank had done nothing wrong and intends to vigorously defend against the lawsuit.
CNBC is so far gone that they cannot even comprehend it. I don't know how these people can show their faces on national TV every day. Hey, how many of you know that the Taliban went to Texas in 1997? They didn't allow the pipeline to daddy Bush and hellaburton's investments in the Caspian. 9/11 was the result and a war that has gone on 8 years.
Bottom line, Cramer was talking about how great BP was, but blood is on the hands of these big companies. They wanted this war and they wanted the war in Iraq.