Daily Archives: November 19, 2012

U.S. Trustee says in court document it is opposed to the Hostess wind-down plan because company plans improper bonuses to company insiders

(Reuters) – Hostess Brands Inc, the maker of the iconic Twinkies snack cake, will square off in abankruptcy court on Monday against an agent of the U.S. Justice Department, who says the wind-down plan is too generous to management.

The U.S. Trustee, an agent of the U.S. Department of Justice who oversees bankruptcy cases, said in court documents it is opposed to the wind-down plan because Hostess plans improper bonuses to company insiders.

The 82-year-old Hostess wants permission to pay senior management a bonus of up to 75 percent of their annual pay so they will stay on and help wind-down the business.

The U.S. Trustee, Tracy Hope Davis, planned to ask New York Bankruptcy Court Judge Robert Drain at Monday’s afternoon hearing to appoint an independent trustee to oversee the sales of the company’s assets.

Read on.

Suspicion of tax evasion: the third indictment of an officer of UBS France

Translated in English from French newspaper:

A former CEO of the French subsidiary of UBS, Patrick Fayet , was indicted for“aiding and abetting illegal solicitation” , money laundering and concealment, as part of the investigation on tax evasion charges that weigh on Swiss bank said on Monday, November 19th judicial source. UBS is suspected of having set up a dual accounting, designed to hide certain capital movements between France andSwitzerland , and have enabled its Swiss business canvass customers on the French territory, in violation of the law .

An anonymous note sent to the Prudential Supervisory Authority (ACP), seen by AFP, outlines and the existence of “books of milk” between 2002 and 2007, a system designed to record account openings undeclared Swiss made by trade.She described the alleged role of responsible business in the Confederation and the Hexagon and executives of UBS in France this double counting. The system allowed not to leave a trace in the official tools of the bank while to calculatebusiness operations for their year-end bonuses, according to this note.

Small State – Big Win in Rhode Island – Gray vs MERS

From the November 16, 2012 ruling….

Through the Complaint, Plaintiffs seek declaratory and injunctive relief pursuant to G.L. 1956 § 9-30-1, et seq., petitioning this Court to quiet title in favor of Plaintiffs and to declare Defendant Wells Fargo‟s foreclosure on the real property located at 155 Fuller Street, Pawtucket, Rhode Island (the “Property”) null and void, and therefore ineffective, as Defendants allegedly had no standing to exercise the statutory power of sale under § 34-11-22. Plaintiffs further set forth allegations in their Complaint concerning the alleged negligent misrepresentation of Defendants. Finally, Plaintiffs allege that the mortgage note is current or has been satisfied.


Plaintiffs’ have alleged facts in their Complaint concerning the absence of default which, if true, would entitle them to the relief sought. Accordingly, Defendants‟ Motion to Dismiss under Rule 12(b)(6) is Denied. Counsel for the prevailing party shall submit an Order in accordance with this Decision.


Banks, feds pay some short sellers cash as incentive

Like thousands of other people, Tina and Mark Holstein found themselves about to lose their home to foreclosure.

Then, days away from a sheriff’s sale this year, the Holsteins received a pleasant surprise when their mortgage company, JPMorgan Chase & Co., approved an offer of $80,000 for the Carroll-area property, even though the couple owed about $134,000 on it.

That surprise turned to shock when they learned that, in addition to the debt being forgiven, they would receive two checks at closing: $20,000 from Chase and $3,000 from a federal program.

“We wondered, ‘Is this really happening?’  ” Tina Holstein said. “We were waiting for someone to jump out and say, ‘Give it back.’  ”

The Holsteins had stumbled onto the new landscape in short sales, the once-arduous process of selling homes for less than the amount owed on the mortgage.

These days, homeowners are not only finding lenders more agreeable to short sales but also sometimes walking away with cash in their pockets.

Read on.

Freddie Mac Standard Deed-in-Lieu Announced in Guide Bulletin

Robosigning settlement aids 300,000 homeowners

Monitor of the National Mortgage Settlement, Joseph Smith, said the five banks reported to extended $26.11 billion in gross relief to more than 300,000 borrowers. This results in roughly $84,385 per homeowner (full breakdown below). Smith’s first progress report in August disclosed $10.5 billion in relief.

Bank of America ($9.37 0.25%), Wells Fargo ($32.39 0.451%), JPMorgan Chase ($0.00 %), Citigroup ($36.18 1.2%) and Ally Financial settled on terms with 49 state attorneys general and the Justice Department over robosiging foreclosure abuses. The settlement pays forward to distressed homeowners.

“The relief the banks have reported is encouraging,” said Smith. “But it is important to remember that no obligations will be met until I have reviewed, confirmed and credited them. I look forward to conducting that work in the coming months and reporting my findings to the public.”

Read on.