Deutsche Bank AG’s energy trading arm told U.S. regulators that it did not manipulate the California power market and should not have to pay a $1.5-million (U.S.) fine and give up $123,198 in profits.
The fine that the U.S. Federal Energy Regulatory Commission is seeking from Deutsche Bank is much smaller than the record $435-million that the energy regulator sought last week from British bank Barclays PLC, also for allegedly manipulating the power markets in California.
While ReCap, a subsidary of Ally Financial Inc., deals with the bankruptcy court, there has been a lack of focus on the homeowners who have mortgages with the bankrupted company or whose mortgages are serviced with the company. Besides the creditors of ResCap, who is looking out of the best interest of the homeowners? Ms. Rush commented on my posting of the government objecting to the ResCap-Ocwen acquision:
This is exactly what I argued in my amicus brief in support of the homeowner committee which the judge denied. It can be found on the kccllcc site which has all RESCAP BK filings or follow this link:http://www.kccllc.net/documents/1212020/1212020120926000000000009.pdf
There are many issues that are not being addressed in this “pump and dump” all liabilities scheme.
What I worry about is whether Ocwen is going to honor ResCap’s obligations in the state Attorneys General settlement in which the government is questioning the Ocwen-ResCap acquision. If Ocwen bucks the settlement, ResCap’s creditors as well as homeowners could be stuck holding the bag. That is a must to address. And let’s not forget that ResCap is involved in 22 securities lawsuits and state and federal law violations of illegal foreclosures as Ms. Rush pointed out in her amicus brief.
As we stop to remember the sacrifice of so many, we thought perhaps some reflection from over 50 years ago would provide a little context for that ‘shared’ sacrifice…:
Video of Eisenhower: http://youtu.be/8y06NSBBRtY
Going viral today almost as fast as a good pepper spray video is the latest idea from Occupy Wall Street: the Rolling Jubilee, a project to buy up and zero out people’s debts. David “How To Sharpen Pencils” Rees explains:
Now OWS is launching the ROLLING JUBILEE, a program that has been in development for months. OWS is going to start buying distressed debt (medical bills, student loans, etc.) in order to forgive it. As a test run, we spent $500, which bought $14,000 of distressed debt. We then ERASED THAT DEBT. (If you’re a debt broker, once you own someone’s debt you can do whatever you want with it—traditionally, you hound debtors to their grave trying to collect. We’re playing a different game. A MORE AWESOME GAME.)