Daily Archives: October 4, 2012

JPMorgan Lawsuit `Not the Only Case,’ N.Y. AG Says

Courtesy of Bloomberg. Here is the video. Click here.

Pay-to-Play Scheme Costs Goldman Sachs $16M

(CN) – Goldman Sachs agreed to pay $16.5 million after a former employee traded his help on a gubernatorial campaign for the politician’s banking business.
The investment bank drew fire from Massachusetts after Neil Morrison illegally assisted the gubernatorial campaign of former Massachusetts State Treasurer Timothy Cahill between November 2008 and October 2010.
Before joining Goldman Sachs, Morrison served as Deputy Treasurer in Cahill’s department.
After he began working for the investment bank, Morrison actively sought municipal underwriting business on behalf of Goldman Sachs in instances where Cahill or one of the treasurer’s employees controlled the choice of underwriter – while secretly fundraising for Cahill’s campaign, often during work hours.
Goldman Sachs made millions on underwriting 11 municipal transactions during Morrison’s tenure, including landing a $445.9 million bond deal, according to the Boston Globe.
Morrison apparently knew his behavior was illegal, Massachusetts says, pointing to an email in which Morrison told a senior campaign official: “I am staying in banking and don’t want a story that says that I am helping Cahill, who is giving me banking business. If that came out, I’m sure I wouldn’t get any more banking business.”
Although it is illegal for Massachusetts state employees to solicit political donations, Morrision also encouraged Massachusetts State Lottery employees to raise funds for Cahill, telling them it would be good for their careers.

Read on.

PRIVATE-EQUITY FIRM AGREES TO BUY NEARLY 100 PROPERTIES IN THE CHICAGO AREA FROM FANNIE MAE AT A 14% DISCOUNT OFF ESTIMATED MARKET VALUE

A private-equity firm has agreed to buy nearly 100 properties in the Chicago area from Fannie Mae part of a federal strategy to find buyers for large numbers of foreclosed properties.

The Cogsville Group, a New York-based firm led by former professional soccer player Donald Cogsville, reached an agreement to buy the properties from the government-controlled mortgage giant in a joint venture deal worth $11.8 million. The deal, announced Tuesday, is the second completed bulk sale of foreclosures held by the mortgage finance giant.

In an interview, Mr. Cogsville said the investment offered attractive returns in the form of rental income and the “opportunity to do some real investment in these homes.”

Mr. Cogsville’s firm has been a big investor in distressed real estate, buying loans and other assets from the Federal Deposit Insurance Corp.

Rest here…