Daily Archives: January 17, 2013

NINTH CIRCUIT APPEAL COURT ORDERS DEUTSCHE TO ANSWER THE ORDER TO SHOW CAUSE IN THREE DAYS IN THE DAVIES CASE

THE NINTH CIRCUIT COURT OF APPEAL ORDERS DEUTSCHE BANK TO ANSWER TO THE EMERGENCY ORDER TO SHOW CAUSE IN THE BRIAN DAVIES FORECLOSURE MATTER-JAN 2013

 

HERE DAVIES FILES ORDER TO SHOW CAUSE FOR CONTEMPT- JANUARY 2013-FORECLOSURE-APPELLEE IGNORING INJUNCTION
ORDER TO SHOW CAUSE-VIOLATION OF INJUNCTION ORDER–THEY MOVE AHEAD WITH FORECLOSURE TRUSTEE SALE:

Link

CFPB launches national mortgage servicing rules

CFPB launches national mortgage servicing rules

An outright dual-tracking ban and serious consideration of loan modification requests are just two provisions in a series of national servicing standards rolled out by the Consumer Financial Protection Bureau late Wednesday.

The CFPB’s official servicing rules, which take effect Jan. 2014, create a baseline set of standards for all U.S. servicers to follow.

The guidelines apply to all mortgage servicers, except for smaller servicing shops that deal with 5,000 or fewer loans. 

THE CFPB SERVICING RULE IN A NUTSHELL

The CFPB’s official mortgage servicing guidelines released Wednesday forbid dual-tracking, or from starting a foreclosure if a borrower already submitted a completed application for a loan mod or foreclosure alternative.

To give borrowers time to submit loan-mod applications, the CFBP rule prevents servicers from making a first foreclosure notice or filing until a mortgage is at least 120 days delinquent.

Transcript of Deposition of Ken Lewis – threatened by Hank Paulson re MAC clause on ML transaction

Q: At the point in time of this board meeting, though, you were relating to the board that you felt you had a commitment from the Fed and the Treasury to make good on whatever harm is caused by the increased losses at Merrill Lynch; is that right?

A: I had verbal commitments from Ben Bernanke and Hank Paulson that they were going to see this through, to fill that hole, and have the market perceive this as a good deal.

Q: Did you ask anyone to look into whether the oral, verbal commitments from the Fed and Treasury were enforceable?

A: No. I was going on the word of two very well respected individuals high up in the American government.

Q: Wasn’t Mr. Paulson, by his instruction, really asking Bank of America shareholders to take a good part of the hit of the Merrill losses?

A: What he was doing was trying to stem a financial disaster in the financial markets, from his perspective.

Q: From your perspective, wasn’t that one of the effects of what he was doing?

A: Over the short term, yes, but we still thought we had an entity that filled two big strategic holes for us and over the long term would still be an interest to shareholders.

Q: What do you mean by “short term”?

A: Two to three years.

Q: So isn’t that something that any shareholder at Bank of America who had less than a three-year time horizon would want to know?

A: The situation was that everyone felt like the deal needed to be completed and to be able to say that…

Q: When you say “everyone,” what do you mean?

A: The people I was talking to, Bernanke and Paulson.

Q: Had it been up to you would you made the disclosure?

A: It wasn’t up to me.

Q: Had it been up to you.

A: It wasn’t

Q: Why do you say it wasn’t up to you? Were you instructed not to tell your shareholders what the transaction was going to be?

A: I was instructed that “We do not want a public disclosure.”

Q: Who said that to you?

A: Paulson

Q: Did anyone consider that the oral agreement was a commitment for financing, so under SEC rules there had to be a disclosure?

A: I did not. That’s all I can tell you.

Link

JPMorgan Chase Settles ‘Whale’ Lawsuit: Report

JPMorgan Chase Settles ‘Whale’ Lawsuit: Report

JPMorgan Chase has settled a lawsuit against Javier Martin-Artajo, who supervised a trader in the New York company’s London-based investment office whose trades last year cost the company $6.2 billion, Reuters reported on Wednesday.

Link

Morgan Stanley, Goldman Sachs pay $557 million to end foreclosure reviews

Morgan Stanley, Goldman Sachs pay $557 million to end foreclosure reviews

 

By Kerri Ann Panchuk

• January 16, 2013 • 12:15pm

Morgan Stanley   ($20.54 0.11%) and Goldman Sachs   ($141.09 5.5%) became the latest banks to sign an accord with federal regulators to end the long process of reviewing past foreclosures for document processing errors.

The two investment banks agreed to pay $557 million in cash payments and other assistance to borrowers in exchange for ending costly and inefficient foreclosure reviews, according to the Federal Reserve.

Link

FHFA withstands another motion to dismiss in MBS lawsuit

FHFA withstands another motion to dismiss in MBS lawsuit

The federal judge in charge of overseeing multiple lawsuits filed by the Federal Housing Finance Agency against non-agency mortgage-backed securities issuers for misrepresenting deals that were sold to Fannie Mae and Freddie Mac rebuffed yet another motion by one of the banks to shut down the legal action.

Judge Denise Cote of the U.S. District Court for the Southern District of Manhattan recently rejected a motion to reconsider her December decision allowing the FHFA to proceed on behalf of the GSEs with most of its fraud claims against Ally Financial

Link

Guy applies for Wall Street job, says he has ‘no special skills’

Guy applies for Wall Street job, says he has ‘no special skills’

lol. Maybe the guy should apply for the job of Congress.

 

 An undergraduate applicant for a summer internship at an investment bank described himself as having “no unbelievably special skills or genius eccentricities” in a cover letter to one of the firm’s execs. The exec then forwarded the letter around Wall Street, saying, “this might be the best cover letter I’ve ever received.” Hey, fancy banker dude: You work too much and your social skills are poor. Want to go on a date?

Here’s the full letter, via Forbes:

From: BLOCKED

Sent: Monday, January 14, 2013 1:14PM

To: BLOCKED

Subject: Summer Internship

Dear BLOCKED

My name is (BLOCKED) and I am an undergraduate finance student at (BLOCKED). I met you the summer before last at Smith & Wollensky’s in New York when I was touring the east coast with my uncle, (BLOCKED). I just wanted to thank you for taking the time to talk with me that night.

I am writing to inquire about a possible summer internship in your office. I am aware it is highly unusual for undergraduates from average universities like (BLOCKED) to intern at (BLOCKED), but nevertheless I was hoping you might make an exception.  I am extremely interested in investment banking and would love nothing more than to learn under your tutelage. I have no qualms about fetching coffee, shining shoes or picking up laundry, and will work for next to nothing. In all honesty, I just want to be around professionals in the industry and gain as much knowledge as I can.

I won’t waste your time inflating my credentials, throwing around exaggerated job titles, or feeding you a line of crapp about how my past experiences and skill set align perfectly for an investment banking internship. The truth is I have no unbelievably special skills or genius eccentricities, but I do have a near perfect GPA and will work hard for you.  I’ve interned for Merrill Lynch in the Wealth Management Division and taken an investment banking class at (BLOCKED), for whatever that is worth.

I am currently awaiting admission results for (BLOCKED) Masters of Science in Accountancy program, which I would begin this fall if admitted. I am also planning on attending law school after my master’s program, which we spoke about in New York. I apologize for the blunt nature of my letter, but I hope you seriously consider taking me under your wing this summer. I have attached my resume for your review. Feel free to call me at (BLOCKED) or email at (BLOCKED). Thank you for your time.

Sincerely,

BLOCKED