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FBN’s Liz MacDonald on states now claiming they were harmed due to Libor rigging, and some moving to probe the issue to see if taxpayers were hurt i...
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-- growing number of states are now looking into how liable right -- may have impacted taxpayers Liz MacDonald covering this story she has more.
Bottom line -- you have what you see the states get an action that's when you hear talk of a global settlement among the banks even though there have been no proof.
Our evidence yet conclusively that there is collusion and and wrongdoing but here -- the states.
Tracy and asked that that are not talking about and launching probes are looking into this new York new York and Connecticut.
They're not working together also Massachusetts Florida and basically we're seeing other cities as well who are saying we're going to get into fights.
With the Wall Street over derivatives take a look you're gonna see Chicago Detroit Los Angeles Oakland also -- counties are getting in on the act.
Jefferson County in Alabama he also seeing NASA Kennedy as well -- issue here is.
You know stuck pretty easy to prove that all the banks colluded to drive down live -- on one day that they that they are paying -- do payouts.
On these derivatives are tacitly think -- counties -- people interest rate swaps correct further Muni bonds that immunity -- so when -- liable went down the cost them money give it turned upside down on them and so the issue was they bought these derivatives to hedge.
And now they say look we -- may have had to do budget cutbacks because we have to.
-- make bigger payments -- lawsuit but again I have to say don't -- -- town or city where municipalities enter into these deals with Wall Street right.
-- these are also the same towns where you were also.
Correctly reported that the homeowners benefited from.
Yep right see you have on one hand the homeowner benefited at the but the state or sit -- county did it not simply eaten and it and that it -- probably -- that's enough.
Again that's a deal too because in the boiler plate for these derivatives deals as well as you point out the benefit who benefit but even on top of that then real fight is what was disclosed caveat -- to the investors to the provides.
Of these derivatives I can't -- also -- an act here is calpers are saying they're potentially.
Their pension the holders are retirees may have been hurt.
But you know there are a lot of officials out there investment officials who little red faced with -- how they act.
Investments that turned out this could be -- very convenient scapegoat does.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- That the banks artificially -- like we're at mid day that they were doing these payouts.
On these derivative contracts so that's gonna be really cool cool isn't -- -- the charges against and mean pilot pretty still.
The more they're looking into is the usual it's JPMorgan Chase park please.
Also of -- that banks rather investment firms are around pre collapse including and dating back to Bear Stearns and Merrill Lynch as well and as that these are really -- fights for the other -- to was Wall -- got to watch out.
There's been a pushing congress to let these tents and municipalities walk away from these derivative deals without paying.
Let me break up fees and -- talk of even outlined them for Muni bond sales in places like Pennsylvania so this clothing I don't know Wall Street.
Very much all right.
