Saturday, November 21, 2009
Don't Bank On It
Bill Scherer has fired the first shot in what promises to be a protracted legal war. But like many in war who unload the opening salvo, the satisfaction may be temporary and fleeting, especially when strategies were formulated without sufficient information at hand. Initial aggression is more often a result of desperation than of likelihood of success. I have not read Scherer's complaint against TD Bank. However, and only as an observation without knowing the particulars, aren't these investors a bit brazen? It has been many years since I was in law school but I do remember being taught about contributory negligence and assumption of risk. And before law school, I remember in 1969 my father told me I was the stupidest person in town for giving a man at the country club $5.00 from my caddy earnings so he could bet it at the track. My dad told me I deserved to lose the money for being such a dumb ass. In honor of my father, I will call Scherer's clients DADS as in Dumb Ass Dudes. Bascially, the DADS invested money in a scheme that any rational person would have seen as a joke. Having now lost their money, they seek to blame the bank where Rothstein deposited their money. Without having to quote Willie Sutton, the motive for this ploy is obvious. If I were TD Bank, I would sit back and let the dust settle. Find out the names of as many investors as you can who refused Rothstein's overtures, take their depositions, and lay out for the public to see the absurdity of the propositions he made and how a prudent person acted. In fact put the DADS in the spotlight and focus on their stupidity. I have a gut feeling they will have no jury sympathy. None. And I have another gut feeling that the bank did nothing wrong. It just doesn't seem logical that a bank like TD would allow itself to get roped into this. Stay tuned.