Daily Archives: November 8, 2012

Told You So: SEC Wants JP Morgan to Pay for Bear Stearns Sins

Teri Buhl reports:

Last night the Financial Times broke news Jamie Dimon is willing to admit that maybe the Bear Stearns mortgage traders really did break securities laws and he should settle with the Securities & Exchange Commission. What the FT forgot to mention was I was the lone reporter in late January 2011 who reported JPM was under SEC investigation for this. A story I continued to report and warned on for the last two years at DealFlow Media and on RT’s top financial news show Keiser Report.

Most of my peers in the financial press have been afraid to report on this story. Even when JP Morgan admitted in their own 1st quarter filling this year that they’d receiveda wells notice –which means their regulator told them they are going to be sued if they don’t settle. Once again a series of my reporting on a financial institution committing fraud was proven right. The only thing I don’t know is how many millions the SEC will accept as settlement for these crimes against Bears own investors. The amount of dollars JPM pays the SEC isn’t that important though because the simple fact that they are willing to admit it wasn’t ok for Bear Stearns traders, under Tom Marano, to steal billions from their own clients gives the $100 billionish in civil rmbs fraud suits, filed by investors, a huge negotiating advantage.

The WSJ wrote today that people close to the SEC settlement talks told them the investigation was over, “whether Bear Stearns got compensation from lender for bad loans it had purchased to bundle into mortgage-backed securities, but then failed to pass that money on to investors by putting it into the trust managing the securities.” TheWSJ actually learned about this when I first went on Max Keiser’s show last year,multiple times, and told his millions of viewers this is what the SEC was investigating. Then the WSJ read my story in May about JPM getting a Wells Notice.

And Teri Buhl did report this some time ago. See here and here.

Sealink Funding expands RMBS suits to Citigroup

Irish investment vehicle Sealink Funding is suing Citigroup ($36.41 0.36%)over $513.3 million in residential-mortgage backed securities deals that allegedly contained toxic underlying mortgages.

The structured-finance investment unit was known at the height of the mortgage bubble for its role in acquiring a slew of RMBS deals.

Read on.

Secret Documents Show Weak Oversight of Key Foreclosure Program

The Obama administration launched its main program to prevent foreclosures in the spring of 2009 with $50 billion and abundant promises. What the Home Affordable Modification Program, or HAMP, lacked — and wouldn’t have for years — was effective oversight of the big banks that were crucial to the program’s success.

Documents obtained by ProPublica shed new light on this failing in 2009 and 2010, when the foreclosure crisis was at its peak and six million American homeowners were in danger of losing their homes. HAMP required mortgage servicers to offer loan modifications to eligible homeowners so that their monthly payments would be lower. The servicers — the largest of which were owned by the banks that had fueled the crisis in the first place — were in charge of reviewing homeowner applications, but the government set the rules and was supposed to supervise their work.

But the documents show that the government did not complete a major audit of the two largest banks in the program, Bank of America and Wells Fargo, until over a year after the program launched.

Read on.

Mitt Romney’s campaign prepared a Presidential transition site in the event that he won

An old saying: Don’t put the cart before the horse. Taegan Goddard, author and former policy advisor, caught the slip up and captured screenshots of the now removed pages. He posted them on his blog, Political Wire.

Look out Wall Street: Elizabeth Warren is baaaaaack and this time as a U.S. Senator

Elizabeth Warren, the Harvard University law professor and self-styled “cop on the beat” who protects consumers from Wall Street, left Washington last year after failing to gain enough Senate support to be confirmed as director of the new consumer financial protection agency she championed.

Now, as if in a sequel, Warren will return to the U.S. capital having been remade into a senator herself just as Congress prepares its first revisions to the landmark Dodd-Frank Act enacted in response to the 2008 financial crisis.

Read on.

Corporations Are Not People in Montana

BLLINGS, Mont. (CN) – Montana voters on Tuesday overwhelmingly approved an initiative stating “that corporations are not entitled to constitutional rights because they are not human beings.”
Voters approved Initiative 166 by 75 percent to 25 percent, according to early, unofficial returns reported by the Billings Gazette.
The initiative also clarified that in Montana, money is not speech; it’s property.
The initiative was a rebuke to the U.S. Supreme Court’s Citizens United ruling, which unleashed corporate political donations. According to the Gazette’s early returns, 224,679 Montanans voted for the measure, and 74, 361 opposed it.

Read on.