This initial report is pretty thin on details and the only real reference is to an old settlement that occurred in 2010 wit a mortgage related issue. We can be assured a major press release will be announced soon give us more details on exactly what this is regarding and if any guilt it admitted. My bet in on “no wrong-doing” which is the trend lately in the wake of the largest financial crisis…..ever.
We didn’t get executives on the stand receiving justice, what we can hope for is real regulation and prohibits all this cowboy behavior tied to basic human greed. If not, then it will happen again and maybe that is what it will take to put this situation into the proper perspective. I love capitalism and finance, but it has to be done with the national and global interest in the forefront. We use these tools to bring betterment to everyone as a whole and provides incentives for people to do the “bare maximum”.
Bloomberg - JPMorgan Chase & Co., the biggest U.S. bank, reached a settlement with regulators to resolve claims tied to its home-loan business and said it would buy back as much as $3 billion of shares.
It is absurd that the courts before this, the lower courts were granting foreclosures without the proper paperwork. Regardless off statute of limitations issues, it is obvious looking back that major misconduct, including fraud happened on the part of homeowners and lenders to be fair. The difference is the lenders were offering the credit and in their rush to make the billions in fees that the entire industry reaped during the “go-go” years, they didn’t set aside time to file the proper paperwork to secure their title to many homes.
We as the taxpayers stood behind the banks in backing them from insolvency, that was for their favor. Now, in cases were it shows lenders or subsequent title holders can not produce paperwork, showing legitimate claim on the house. This should fall in the current homeowners favor. It can break either way when people are greedy. If you do not allow this to happen, you really start to show a skewed American system where the big boys get protected from both ends and the little people get taken for a ride on both ends (no pun).
The Columbus Dispatch - In a decision praised as a safeguard for homeowners in trouble, the Ohio Supreme Court ruled yesterday that lenders can’t file foreclosure cases until they have the proper paperwork in hand.
The ruling will stop the practice of some foreclosures being granted even though lenders failed to produce vital documentation, said one lawyer who specializes in such cases.Common pleas courts cannot hear foreclosure cases unless they are filed by the lender holding the mortgage interest in the property, the justices said in a unanimous ruling.
We all knew that the Countrywide merger was ill timed compared to what was happening in the mortgage industry at the time. Most commentators on the subject talked about how this would become a potential problem down the road. Well that saga and case is being continued today.
The Washington Post mentioned that Countrywide loans were 9 times more likely to have “defects” in them compared to their peers. That is a pretty startling figure when you put this into to context of how much more, other bad and mos likely fraudulent behavior that was happening in the time leading up to the crisis point.
People need to go to jail and credibility needs to be severely restoring in our banking and other credit institutions. I love banks and the concepts they represent in a market system using other peoples capital to help get things done. But this brazen handling of these affairs should not be tolerated.
This types of companies already have inherently great advantages just because of the natural of their business, when you give people this type of responsibility, they need to take care and uphold its tenants no matter what. They can affect everyone lives and that is a big weight that have chosen to carry.
Reuters – Wednesday’s case, originally brought by a whistleblower, is the U.S. Department of Justice’s first civil fraud lawsuit over mortgage loans sold to the big mortgage financiers, which were bailed out in 2008.
The bad news just keeps coming. On the heels of HSBC having possible terrorism funding links, now Standard Charter look to have violated the sanctions on Iran by the order of $250 BILLION in transactions that should not of happened, this is even after the said they cuts ties with the Iranian Government in 2007. When are we going to hand down the “Rule of Law” and make it apply to everyone? How long are the antics going to be tolerated by the general public.
We are now calling outright “Fraud”, “Mis-selling” to make it sound not so bad. White collar crimes are the worst of the bunch in my book because it involves people who have the means and intelligence to know better but choose to commit crimes. If I go rob a store, I can’t go into court and settle without admitting guilt. Some of these crimes I read about daily, show nothing but guilt but we can’t seem to be able to put anyone in jail. Are we that captured as a society? Do we really not have the spine and gut to do what needs to be done regardless of the cost? I want everyone to ask themselves these questions tonight and think about that every-time you read another one of these stories.
I try everyday not to become numb to this because I believe we will have a moment of clarity and then and only then we will see meaningful change. In my opinion, this is the civil rights issue of our time. Will the civil have the same laws as the privileged and will the sword of justice come down equally on both groups of class?
WSJ - British banks just can’t seem to stay out of trouble with U.S. regulators. Barclays paid a huge fine for its role in manipulating Libor. HSBC then came unstuck on money-laundering charges. Now it is Standard Chartered’s turn.
I need to get my hands on the report, please link it in the comments if you find it. The Senate committee did not try and pull any punches on this report according to the Reuters story. Sadly, the only part of the story that surprised me was how direct the language is. It is not new that people have used banks for laundering money and funding operations that are politically unpopular. Let us not for get Citibank that has been caught a few times dealing in different markets, handling funds from darker elements of society.
I hope we decide to do more than make reports, but actually use it to enforce the rules. In the end, attacking the black market itself will do the most in the long run to combat these funds. The only problem is that in the United States at least, we would need to admit that 50 years of policy what the incorrect prescription and do a complete 180 to go after these markets. I don’t know what the ultimate solution is but I know it starts with reducing the obscene profits that attracted the organized crime elements.
Reuters - A “pervasively polluted” culture at HSBC Holdings Plc allowed the bank to act as financier to clients seeking to route shadowy funds from the world’s most dangerous and secretive corners, including Mexico, Iran, the Cayman Islands, Saudi Arabia and Syria, according to a scathing U.S. Senate report issued on Monday.