Big News: Supreme Court tells Fed to release secret bailout loan details

March 21, 2011 by · Leave a Comment
Filed under: Legal News 

Over two years and finally some good news and in my opinion the right choice on this case.  If you have read any of my previous postings about the secret Federal Reserve (NY Fed) loans to banks (domestic & foreign).   The Federal Reserve tried to maintain that is was better to keep these secret to basically prop up the banking sector than to tell the truth and let us decide (with our deposits), which banks should succeed and who should fail.  THAT IS HOW A MARKET SYSTEM WORKS and that is suppose to be a cornerstone in America (at least I was taught that in public schools).

I will continue to reiterate the point that if we do not punish the reckless banks and prosecute any criminal activity, we will have another financial crisis sooner than later and it will be much worst because they know as long as its bug enough, the taxpayer will be here to bail them out.   Not in my country is what I say.

The Supreme Court not only denied the banks appeal but they did not even have comment, just do it.   On the other side, this could have serious consequences for the short term but it will be good for the long term.   I believe this release of information could be the needle that breaks the recoveries back.   Heed those words, you have been warned.

NY Times: The high court, without comment, refused to hear an appeal from an association of bankers trying to keep the information from becoming public.

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Federal regulator investigating bonds sold to GSEs for fraud

July 13, 2010 by · Leave a Comment
Filed under: Legal News 

Glad to hear something is actually being done in this area after the taxpayers have been hosed from the subprime crisis.  It was not right that the loan originators basically let all lending standards go out the door to make fees while selling them to Freddie Mac and Fannie Mae.  If they followed the standards in place then it was our fault and not their’s on a technical level.

On a moral level this was obviously not okay but that is not how we run our society, we run it on incentives and loan originators operated under the incentives that were laid out.  What we need to figure out is if they did not follow those standards and committed fraud to make fees and bonuses.   If so, those money needs to be recouped and any crimes need to be punished to the fullest extent of the law.   We can not allow such lawless behavior in our country.  If you let criminals operate with a free hand then they tend to continue to commit crimes and even bring their friends into it.

Good job on the investigations, this was a huge debacle so many more should be coming down the pipe.

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FTC moves against mortgage modification and foreclosure relief scams

June 18, 2010 by · Leave a Comment
Filed under: Legal News 

We should be glad to see the FTC stepping up and doing its job against fraudsters of all kind.  Today in other news, the Attorney General’s office is cracking down on companies that have been committing mortgage fraud.  We have to persecute any and all wrong doing in this crisis or we will set up the precedent that is it okay to steal and loot the American people at will.  The people that are taking these types of programs are already vulnerable because of their financial situation.  We have to protect them from being exploited by these types of scams.

Consumer Reports – The Federal Trade Commission announced this week that it is taking legal action against more than a dozen marketers accused of offering bogus mortgage modification or foreclosure relief services. Foreclosure rescue companies that charge high upfront fees for help that never comes were among five financial traps we advised readers to steer clear of in a March 2009 Consumer Reports story describing scams that were flourishing in the wake of the economic meltdown.

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Bankers from BofA, JPMorgan and UBS named as suspected conspirators in bid-fixing case

March 26, 2010 by · Leave a Comment
Filed under: Legal News 

Good to see more investigations into our financial system.  We need much more to get the players to realize that they do not have a license to break and bend the law in pursuit of profits.  They are already in a inherently profitable industry and these actions are actually harmful to the economy due to the increase financial transaction costs.

Reuters – The list, made public this week in Manhattan federal court in a criminal case, said the 29 bankers included employees of Bank of America, JPMorgan Chase, Lehman Brothers, UBS, Wachovia Bank and Societe General.

None of the individuals or institutions on the list has been criminally charged. The papers were filed by lawyers defending a former employee of CDR Financial Products Inc, also known as Rubin/Chambers, Dunhill Insurance Service Inc.

Executives of CDR were indicted in October on charges of participating in bid-rigging and fraud.

S0urce:  Reuters

Federal Reserve Must Disclose Bank Bailout Records According to Appeals Judge

March 22, 2010 by · Leave a Comment
Filed under: Legal News 

This is good news no matter what material effects is has on the banks.  The federal reserve being our agent to issue our currency has an obligation to the America citizen first and foremost over any to the banks they serve as the lender of last resort.  If they have the prerogative to issue any amount of our currency to bailout out any bank for any reason they deem necessary then de-facto our freedom has been subverted a tiny bit.

We founded this country on religious, political and economic freedom and having the ability to know where our money goes is “key” to that freedom.  At the end of the day, what we are going to learn is that some major banks made some major bets and they had to go hat in hand to the Fed to stay solvent.  If the markets deems that as a lost of confidence in their prudence and make a run on the bank to put it out of business, SO BE IT.  That is our market system working and it will show notice to other banks that if they are not prudent they can share the same fate.

Bloomberg – The Federal Reserve Board must disclose documents identifying financial firms that might have collapsed without the largest U.S. government bailout ever, a federal appeals court said.

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