Prosecutorial misconduct – do we have a trend?

Federal prosecutors are hired to serve justice; but, some seem to focus more on winning cases – and it’s not just the case of former Senator Stevens, according this report from the WSJ Law Blog.

…it seems that prosecutorial misconduct is the hot topic, thanks in part to Judge Emmet Sullivan who decided to take on the prosecutors in the trial of former U.S. Ted Stevens. Judge Sullivan railed that he had “never seen anything approach the mishandling and misconduct I have seen in this case.”

But another federal judge has been on the war path in recent months about the same thing. In Boston, U.S. District Judge Mark Wolf is considering sanctions against a prosecutor for withholding evidence that showed a police officer gave questionable testimony about the defendant’s arrest. (See this Boston Globe story.) In a written opinion, the judge also referred to nine recent examples demonstrating what he called “repeated failure to disclose information” by local prosecutors.

“The egregious failure of the government to disclose plainly material exculpatory evidence in this case extends a dismal history of intentional and inadvertent violations of the government’s duties to disclose in cases assigned to this court,” wrote Wolf in his 42-page ruling. The judge wrote that in several cases, the misconduct led to mistrials and convictions that were overturned. Continue reading “Prosecutorial misconduct – do we have a trend?”

What a revolting develoment – lenders invest in CDS and pull the trigger

While lenders are living the life of Riley, the Financial Times reports this revolting development.

Credit default swaps, the derivatives instruments that have figured prominently in the global financial crisis, are now being blamed for playing a role in two bankruptcy filings this week.

Bankers and lawyers involved in restructuring efforts say they are concerned some lenders to troubled companies, such as newsprint producer AbitibiBowater and mall owner General Growth Properties, stand to benefit from a default because they also hold default swaps, which entitle them to payments in such events.

We have seen CDS becoming a significant factor” when negotiations on out-of-court restructurings fail, said Alan Kornberg, the partner in charge of the bankruptcy practice at Paul, Weiss, Rifkind, Wharton & Rice, speaking generally. “We used to talk about the practice theoretically but now we see cases where it is hard to get lenders to agree to tender or to compromise and then you find out that these holdouts had significant CDS protection.” Continue reading “What a revolting develoment – lenders invest in CDS and pull the trigger”

SLABBED Daily – April 17

So, how’s your Friday? Mine started with Sop “feeling fortish (as in OLD) which made tired “fiftish” me feel ancient!   However, before I could decide if tired felt different at any age, I found this.

Edward M. Liddy, the dollar-a-year chief executive leading the American International Group since its bailout last fall, still owns a significant stake in Goldman Sachs, one of the insurer’s trading partners that was made whole by the government bailout of A.I.G.

Mr. Liddy earned most of his holdings in Goldman, worth more than $3 million total, as compensation for serving on the bank’s board and its audit committee until he stepped down in September to take the job at A.I.G. He moved to A.I.G. at the request of Henry M. Paulson Jr., then the Treasury secretary and a former Goldman director.

Men with the Gold-man-Sachs to profit at the expense of the American people make me angry Continue reading “SLABBED Daily – April 17”