U.S. DoJ sues Bank of America, citing alleged “fraudulent conduct”

October 24, 2012 by · Leave a Comment
Filed under: Legal News 

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.

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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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Bloomberg sues Federal Reserve to force disclosure of collateral for bailout loans

November 8, 2008 by · Leave a Comment
Filed under: Legal News 

Kudos to Matt Winkler and the Bloomberg team.  Finally it looks like people are starting to come to their sense and with that we have real questions being asked from a top-notch media outlet.   Bottom line is that most of these banks in questions gave extremely distressed if not worthless assets in exchange for our treasuries.  

I believe their plan was to give them these loans and then hopefully we would start borrowing at the same pace and that would let them dig themselves out of this crater of a hole.  Now that we are starting to realize this downturn is going to be severe and we have long-term consequences to deal with, we know that this bailout was really just a lifeline to a bunch of banks that should of failed at this point.   I also heard that the Supreme Court might look at this bailouts and see if they are constitutional. 

News:

 Bloomberg News asked a U.S. court today to force the Federal Reserve to disclose securities the central bank is accepting on behalf of American taxpayers as collateral for $1.5 trillion of loans to banks.

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