Republicans and Democrats Speak Out Against “Too Big to Jail” HSBC Case

By: Monday December 17, 2012 8:30 am

We now have bipartisan anger at the decision to hold HSBC and its executives harmlessfor years of money laundering and facilitating the culture of Mexican drug cartels. In fact, only the shareholders will pay, and not all that much, what amounts to five weeks’ worth of profits for the bank. The certainty of not being [...]

First Libor Arrests Net Three Former Low-Level Traders

By: Wednesday December 12, 2012 8:30 am

Everyone expects UBS, the Royal Bank of Scotland and several others to face some sort of sanction. But we’ve been hearing about imminent charges for months now, with nothing to show for it.

Justice: Wells Fargo Still Liable for FHA Abuse, Despite Foreclosure Fraud Settlement

By: Monday December 3, 2012 11:37 am

Late last week, the Justice Department issued a filing that attempts to reinforce the release limitations set by the foreclosure fraud settlement, stopping Wells Fargo from reimagining the deal as a broader release of liability on various mortgage claims. However, a judge will have to make the final decision. The US sued Wells Fargo in [...]

Morgan Stanley Trader Investigated for Manipulation

By: Monday December 3, 2012 8:30 am

It has taken many years, but we might see one Wall Street trader investigated for malfeasance. Glenn Hadden, a former partner at Goldman Sachs now on the trading desks at Morgan Stanley, faces an inquiry into his practices at Goldman. Specifically, regulators at the CME Group, which runs commodity and futures exchanges, are investigating whether [...]

The Anti-Due Process Bias of Housing Reporters and Analysts

By: Monday November 19, 2012 7:50 am

Existing-home sales rose 2.1% in October, with the number coming in slightly above expectations, although the previous month’s numbers were revised down. Inventory has decreased 21% year-over-year (in no small part due to structural factors like trapped borrowers not putting their houses on the market, as well as artificial constraints on supply from banks keeping [...]

Australian Court: Standard and Poor’s Liable for Bad Ratings on Securities

By: Monday November 5, 2012 12:26 pm

This will get approximately no attention today, but a federal court in Australia ruled that Standard and Poor’s, the credit rating agency, lied to investors when they awarded their highest, triple-A rating to derivative securities that lost their value within two years of purchase. The court ruled for a series of local councils in Australia, [...]

More on the Lawsuit Against BofA Over Countrywide’s “Hustle” Program

By: Thursday October 25, 2012 8:30 am

I’ve taken a closer look at the US Attorney from the Southern District of New York’s $1 billion lawsuit against Bank of America – particularly their subsidiary Countrywide – for “the hustle,” the program of selling mortgages with practically no underwriting and passing them on to Fannie Mae and Freddie Mac. And there’s something interesting [...]

On the Need to Continue Pointing Out That Nobody Has Gone to Jail for the Financial Crisis

By: Monday October 22, 2012 11:33 am

I would say that William Cohan has had enough. The author of several books about the financial sector cannot believe that nobody on Wall Street has been held to account for the crisis that caused the Great Recession. And though it pains him to end up on the same side as Elizabeth Warren, to whom [...]

Banks Trying to Grow Releases on Fraud-Related Settlements After the Fact

By: Monday October 15, 2012 3:30 pm

The ACLU’s calss action lawsuit against Morgan Stanley over racial discrimination in lending is out. Five African-American homeowners from Detroit form the core of the plaintiffs, who allege that Morgan Stanley pushed the now-defunct New Century Financial into providing them with a “steady stream of irresponsible, high-risk loans issued in communities of color that were [...]

Financial Industry Takes Hundreds of Millions in Tax Write-Offs from Penalties in Fraud Settlements

By: Monday October 15, 2012 11:37 am

Often, I get complaints that focusing on criminal penalties for financial fraud is for some reason unrealistic, and that settlements can themselves be meaningful if they cause the offending party some economic pain. This overlooks several points. First, no executive ever pays out these settlements; they basically come out of reserves, and the most that [...]

Robo-Signing Is Back, Now in Even More Robo-Form

By: Monday October 15, 2012 6:19 am

Yves Smith links to an important report on an entirely new type of robo-signing being performed by a small servicer called Green Tree Servicing. It appears Green Tree Servicing has been flying under the radar and was hardly noticed until a recordation research team began uncovering similarly signed documents – yup, the old robo-signed Assignment [...]

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