It is an interesting lawsuit. The three companies have never come forward following the crisis to aid the residents.
There is no conscience when it comes to the financial sector. Morality requires a conscience.
They didn't even act to protect GM either. I mean at the very least I would expect greed merchants to at least look into any peril for Wall Street. Not even GM, huh?
My, my.
So are they going to say understanding every aspect of the project is not their responsibility? Really? Because if the financial markets don't understand what their investment involves, it might explain why they are always looking to the USA Treasury to bail them out.
Look, cities and towns across this country seek the financial sector to sponsor bonds. Municipal bonds are very desirable. But, it is a real eye-opener to realize they blindly allow financing without even performing a RISK ASSESSMENT. These companies have entire departments of Risk Assessment and they never even bothered to understand the Flint Water Project and the vicious nature of the project that put Flint lives in peril.
So, the City of Flint was placed in peril by their Governor financed by three investment banks that actually thought they were safe with a Republican at the top of the government. This is really interesting. I congratulate the resident of Flint in turning over every leaf to find where evil lives within our government.
What are they thinking? Certainly not about the people. Ya know. It is called regulation. What regulations were in force in 2014 and why wasn't a conscience put inside this project? That is what regulation is after all. A conscience. Evidently, any existing regulation didn't have a conscience when it comes to the people of Flint.
Why?
Not that investment firms should need a conscience. They should have one at the top of the company. This tragedy in Flint is a prime example right along with the 777 Max as to why corporate self-governance is a joke. They can't be trusted. Regulation is vitally necessary.
By Jennifer Henderson and Chauncey Alcorn
Residents of Flint, Michigan, (click here) have filed a civil lawsuit against three investment banks for claims arising from the poisoning of "minors, residents and water users of the City of Flint during the period when Flint utilized the Flint River as a primary water source without implementing proper corrosion controls," according to a complaint in federal court.
Prior lawsuits regarding the Flint water crisis have been ongoing for years against various government officials and environmental engineering companies that were involved in the decision to switch the water source in Flint.
This complaint alleges JPMorgan Chase, Wells Fargo and Stifel, Nicolaus & Company in 2014 "underwrote the bond sale that financed and enabled Flint's participation in the Karegnondi Water Authority" pipeline (click here). The bond sale "aided and abetted the perpetration of the violation of Plaintiffs' firmly established constitutional right to bodily integrity," the complaint says.
The complaint, filed at the US District Court for the Eastern District of Michigan, alleges that without the bond backed by the three investment banks, Flint would not have been able to pay for the KWA pipeline. According to the complaint, "J.P. Morgan Chase, Wells Fargo, and Stifel agreed to underwrite the bond financing ... and facilitated a plan for Flint to leave the Detroit Water and Sewerage Department ("DWSD") and enter the KWA, and they knew that a necessary element of the plan was the use of raw, untreated Flint River water as an interim drinking water source, which would expose Flint's residents and water users to lead-poisoning and legionella bacteria."...
