AIG sues Bank of America for $10 Billion Over Sale of Toxic Mortgages. The Irony of this All!

With the amazing revelation of a $10 Billion lawsuit of plaintiff AIG against defendant BOA comes that realization that there may yet ensue  exposure of some malfeasants in the scandal that won't go away.

Second there may be some accountability resulting in sensible regulation in a crisis-- where in the the last 5 years there has been none.

Why have the regulators been asleep at the wheel?

Does anybody remember Senator Carl Levin's remarks to Goldman Sachs executives barely 17 months ago in April 2010?:

"...600 million dollars of Timberwolf securities is what you sold. Before you sold them this is what your sales team were telling to each other. Look what your sales team were saying about Timberwolf : 'Boy that Timberwolf was one sh---y deal..' "

Not a single individual, mortgage firm, or corporate banking entity has been brought to trial, convicted and/or serving jail time in the sale of bundled mortgages under the pretense that they were investment grade securities given a high stamp of approval by the most respected rating agency S&P.

The irony of this all is that the suing party, a corporate entity,  was bailed out by the Federal taxpayer to the tune of over $85 Billion just 36 months ago. 


This is one bailed out corporate entity suing another corporate entity over issues that should have been dealt with by the US DOJ.

Why have the regulators been asleep at the wheel?

The irony of this all....won't go away!