Daily Archives: October 18, 2012

Credit union membership grows from Bank Transfer Day

Americans are friending credit unions as they grow increasingly frustrated with fees and customer service issues stemming from the nation’s larger banking institutions.

At least, that’s the conclusion of a new survey conducted by the National Association of Federal Credit Unions.

As for what led to the ascendancy of credit unions and smaller banks, NAFCU credits Bank Transfer Day and Facebook. Last November, users of Facebookpromoted the national Bank Transfer Day, encouraging consumers to move from banks that push excessive fees to credit unions and smaller firms.

Fifty-six percent of the credit unions surveyed reported strong membership growth in the past 12 months, NAFCU said. And more than half of the credit unions attributed their recent growth to Bank Transfer Day.

As for why consumers transferred their funds to credit unions, the majority, or 46.7%, cited dissatisfaction with the banks. Others said they left for better loan and deposit rates as well as lower fees.

Read on.

National foreclosure expert cites foreclosure fraud in ex-Atlanta PD officer’s fight for home


A national foreclosure expert said there is evidence of foreclosure fraud in a former Atlanta Police Department officer’s fight to keep her home.

Jacqueline Barber faces foreclosure on her home on Woodland Road in Fayetteville. She told Channel 2’s Linda Stouffer she is on edge from the constant threat of eviction.

Occupy Atlanta is keeping someone at Barber’s home 24 hours a day to assist her in case she gets an eviction notice.

The 20-year veteran detective retired after an on-the-job injury, and then, during a cancer fight, her finances fell apart and her dream home went into foreclosure.

National foreclosure expert Lynne Szymoniak found dates that do not match on some of the documents.

Read on.

Half of Foreclosure Fraud Settlement Hard Dollars Diverted Away From Housing Programs By States

McClatchy catches us up on the issue, based on a new report put out yesterday by Enterprise Community Partners, a housing advocacy group:


While states have announced plans to use $977 million of their direct payments for housing and foreclosure-related assistance, $989 million will go to fill budget shortfalls or for non-housing purposes, according to a report released Thursday by Enterprise Community Partners, a national affordable housing and community development group.

The report, which updated an earlier analysis, found that six states – Missouri, California, South Carolina, Georgia, Alabama and New Jersey – ignored the agreed-upon uses for the money entirely by directing nothing for housing-related activities.

It said that 23 states are using all, or nearly all, of their settlement money for housing, while five others – New York, North Carolina, Washington, Massachusetts and Kentucky – have dedicated between 70 percent and 89 percent for housing purposes.

Fourteen others, including Idaho and Illinois, are using less than half of their funds for the intended purposes.


JPMorgan Chase apologizes for submitting inaccurate information about California energy trading

JP Morgan, which has been threatened with having its trading privileges in California revoked, apologized to the Federal Energy Regulatory Commission in a lengthy filing.

Morgan said the inaccurate information was the result of “unintentional, good-faith mistakes, misunderstandings and miscommunications.” It said the mistakes have been cleared up and don’t justify revoking the company’s trading rights in California.
Read more here: http://www.sacbee.com/2012/10/18/4921789/jpmorgan-chase-apologizes-for.html#storylink=cpy

Yep they’re sorry, sorry they got caught.

Sinan al-Shabibi, Iraqi Central Bank Chief, Issued Arrest Warrant Over Corruption Allegations

I certainly would like to see arrest warrants for the correupted US bankers here in the US.

BAGHDAD (AP) — Iraqi authorities have issued arrest warrants for the longtime governor of the central bank following allegations of financial wrongdoing, the country’s judiciary said Thursday.

Allegations against Sinan al-Shabibi, who has led the bank since 2003, surfaced earlier this week while he was out of the country on official business. The charges are seen by the government’s critics as an attempt to sideline the politically independent economist, and have been blasted as politically motivated by al-Shabibi’s defense team.

Supreme Judicial Council spokesman Abdul-Sattar Bayrkdar told The Associated Press that 15 bank officials are being sought along with al-Shabibi. He did not name the other officials or say what specific charges they face. Bayrkdar did not say when the warrants were issued.

Read on.

In Conference Call, Mitt Romney Encouraged Business Owners To Advise Employees How To Vote

In Conference Call, Romney Urged Businesses To Tell Their Employees How to Vote – Working In These Times.

Ina June 6, 2012 conference callposted on theanti-unionNational Federation of Independent Business’s website, Republican presidential candidate Mitt Romney instructed employers to tell their employees how to vote in the upcoming election.

Dr. Lan T. Pham, CBO whistleblower: Welcome to Economics Voodoo!

It was not long ago in fall 2010 that I was a senior congressional staffer financial economist at the Congressional Budget Office (CBO) when I was fired after 2 ½ months for writing about the damage from the banking and financial system collapse since fall 2008. The writings included ‘robo-signing’ foreclosures as symptomatic of deeper problems in the securitization of $7 trillion mortgage bonds that CBO denied was a problem and the condition of the nation’s banks.

I was told that CBO should take the lead in treating foreclosure problems as “the kind of event of the moment where we should be adding skepticism, not just repeating the hype in the press”  and my writing about it showed “poor judgment about what is important and what isn’t.” This came from my direct report, then-CBO assistant director and chief economist, currently MIT Professor of Finance Deborah Lucas who was called by the U.S. President in 2009 to serve in a leadership role at CBO. CBO Director Douglas Elmendorf, a Harvard Ph.D. economist, agreed that such writings lacked knowledge of economics and poor communication skills for not understanding what it meant to remove them.

For those unfamiliar, CBO is a small federal agency that scores (produces cost estimates) Congress’s bills and can make or break them with its scoring. CBO’s panel of economic advisors includes Goldman Sachs, Morgan Stanley, former Federal Reserve economists, and distinguished economists from academia who are or were former scholars of the Federal Reserve.

Closure to the Congressional Inquiry

After over a year of congressional inquiry, my story was first made public in the Wall Street Journal, “Congress’s Number Cruncher Comes Under Fire,” (Feb. 2, 2012) what the Journal allowed the public to know. When the true nature of the issues would not come out, I was stunned that the congressional inquiry led by Senator Grassley, Ranking Member of the Senate Judiciary Committee, also declined to release my letter to the public to expose the issues. This happened during the week the New York Attorney’s General announced the lawsuit against MERS, but that too went silent a few days after the nationwide foreclosure settlement. All understood the ramifications of the NY AG lawsuit against MERS.

Read on.

Mitt Romney ties to Chinese ‘sweatshop’ revealed

This is interesting. this article passed to me by one my Facebook followers:
Oct 3, 2012
Just a few days before the first 2012 presidential debate between President Obama and Gov. Romney, more reports of Romney’s involvement with Chinese companies are surfacing.

Brookside Capital Partners Fund, a Bain Capital affiliate, filed a report with the Securities and Exchange Commission (SEC) on April 17, 1998 stating it had purchased 748,000 shares of Global Tech stock. The report also says:

“Brookside Investors acts by and through its general partner, Brookside Inc. Mr. W. Mitt Romney is the sole shareholder, sole director, President and Chief Executive Officer of Brookside Inc. and thus is the controlling person of Brookside Inc. No person other than the respective owner referred to herein of shares of Common Stock is known to have the right to receive or the power to direct the receipt of dividends from or the proceeds from the sale of such shares of Common Stock.”

Romney has stated that his “retroactive” resignation from Bain took place in February 1999, nine months after the acquisition of the Global Tech stock.

According to a Boston Globe investigation, on April 8, 1998, nine days prior to Brookside’s stock purchase, Global Tech issued a prospectus which stated it used “inexpensive labor,” and that it’s location in China meant

“an overall effective tax rate that may be less than that of US corporations.” [Current operations are not subject to] material US taxes because it should not be considered to have significant income effectively connected with a trade or business in the US.”

The prospectus also stated that working conditions included 6 day work weeks with 10 hour shifts during peak production periods at the metal stamping department.

An Institute for Global Labour and Human Rights describes the working and living conditions at Global Tech as a “sweatshop”. The report says twelve workers share a dorm room and wash by using small plastic buckets to fetch water, which they splash on themselves, standing next to the toilet in a small bathroom. High school age individuals must work 15 to 16 hours a day, seven days a week.

Read more: http://digitaljournal.com/article/334078#ixzz29fimE0qH

BofA profit falls 95% as legal problems continue

Bank of America Corp. eked out a $340-million profit for the third quarter after recording $1.6 billion in legal expenses, but analysts say the bank has much more work ahead before it can resolve the headaches that have plagued it since the financial crisis.

The latest litigation costs, disclosed in a third-quarter financial report, stem from a $2.4-billion settlement of lawsuits over BofA’s takeover of brokerage giant Merrill Lynch in 2008. The settlement, announced Sept. 28, was with investors who contended BofA knew Merrill was in worse financial shape than it revealed at the time.

Read on.

Washington Federal sues BofA over Countrywide mortgage servicing

Seattle-based Washington Federal sued Countrywide Financial, now part of Bank of America ($9.44 0%), claiming the mortgage lender misrepresented the quality of approximately 1,000 loans sold to the federally chartered savings association.

The case also steps into the terrain of mortgage servicing, with the plaintiff suggesting Countrywide failed to comply with an agreement to appropriately service the mortgages.

The original aggregate balance of the loans reached $400 million. It involves loans acquired over a three-year period beginning in 2004, according to the complaint.

Countrywide also is accused of breaching at least one representation or warranty contained in the mortgage loan purchase and servicing agreement. BofA did not comment on the case, but has already sought a declaratory judgment in a California court that Countrywide did not breach its contractual obligations to Washington Federal.

Washington Federal claims Countrywide was in charge of servicing the loans and failed to follow guidelines on how to handle borrowers, foreclosure proceedings and other actions, such as appropriately maintaining REO properties.

Read on.