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gophilipgo

05/03/11 6:17 PM

#287608 RE: Large Green #287567

[the Hedgies back the EC by letting the court know the G.S was not fair and reasonable due to their trading (they will-avoid prison)]

This is a stretch, Large. You're essentially saying that the hedgies will admit to the court that they were guilty of insider trading. In doing this, they will agree that the GSA was not fair and reasonable, and in return, they will not face prison time. I'm sorry, but it doesn't work that way. What happens in the courtroom is limited to the courtroom only. If the hedgies confess to insider trading (or even allude to it), you can be certain the DOJ will be all over them, and they WILL do prison time. The courtroom cannot protect them from the world-at-large. Your theory doesn't work for this very reason.

Additionally, there's no way the FDIC and JPM would agree to $75/share in order to bury this case forever. If they agreed to that much per share, they'd be opening up themselves to constant scrutiny because that kind of money would clearly indicate major wrongdoing. I think the likelihood of JPM or the FDIC admitting to such a level of wrongdoing in any way, shape, or form is minimal.