Daily Archives: February 25, 2013

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Bernie Madoff claims big banks knew exactly what he was up to, in email from jail

Bernie Madoff claims big banks knew exactly what he was up to, in email from jail

Bernie Madoff says that the big banks knew about the multi-billion dollar Ponzi scheme he masterminded and chose to turn a blind eye. 

Madoff, serving a 150 year sentence for his crimes, wrote an email from jail advising his victims to go after banks where he held accounts if they wanted to get their money back. 

‘The Banks had to know what I was doing regarding the fraud,’ he wrote.

This isn’t the first time Madoff has claimed the banks were complicit. 

In a 2011 interview with the New York Times he said the banks couldn’t possibly be unaware of his fraud. 

He had accounts with several banks and hedge funds, some of whom have been the target of ruined Madoff investors.

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Reuters is Writing Stories to Help JP Morgan Defend Itself from the NYAG Now

Reuters is Writing Stories to Help JP Morgan Defend Itself from the NYAG Now

J.P. Morgan’s outside counsel at Sullivan & Cromwell are showing signs of desperation in their mortgage securities fraud lawsuits. You know the ones that the bank says in SEC fillings are now $140 billion of litigation. Last week the banks lawyers got a Reutersreporter to write a hit piece on the New York Attorney General’s $22 billion civil fraudsuit against JPM/ Bear Stearns/ EMC.

The Reuters story, by Karen Freifeld, basically speculated a judge would be looking at a conflict of interest in the AG’s office because they hired a top lawyer from the firm, PBWT, who first discovered some of the alleged Bear Stearns rmbs fraud. Freifeld starts by writing a line that ‘legal experts’ think the former PBWT attorney who worked on the Ambac v. JP Morgan Securities suit has a conflict because she also played a role in the NY AG’s suit. Karla Sanchez, the lawyer in question, started with the NY AG in January 2011 – after the explosive amended Ambac complaint was filed. This is the complaint you just saw me talking about in the Frontline film The Untouchables.

It’s odd for Retuers to not quote actual working lawyers in the story and leave the reader guessing that the reporter actually found attorneys to back up her claim. I called five securities lawyers last week trying to get one of them to go on the record that they saw a conflict here but none would. That’s because Robert Sacks, JPM’s puffy chested outside counsel from Sullivan & Cromwell, doesn’t actually lay out in the motion he filed last week what he thinks the conflict is.

The Reuters reporter, who has indirectly become a JP Morgan’s flack, also doesn’t explain to the reader that JP Morgan’s lawyer, Sacks, didn’t actually file a motion in the NY AG’s case in New York civil supreme court. All he really did is indirectly mention the idea in a damn footnote in a motion for an entirely different case. On February 19th Sacks filed a motion trying to stop Judge Ramos from allowing AMBAC/PBWT to get loan file discovery and CLAS database records from third-party due diligence firm Clayton – info they been asking for over a year that Clayton is also fighting to not turn over because it’s likely really really damaging. [ You see on top of all this Clayton is apparently STILL covering up for it’s big bank clients even though they signed an agreement to help the State of New York prosecute their financial crisis cases in turn for them not getting sued for their role in billions of rmbs fraud. ] It’s this motion that has the footnote that Reuters in turn made into a story to discredit the NY AG’s head of economic cases.

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Foreclosed Vallejo Home Haunts Former Owner After Squatters Move In

Foreclosed Vallejo Home Haunts Former Owner After Squatters Move In

VALLEJO (KPIX 5) – Most homeowners believe that handing the keys over to the bank is the final step in the foreclosure process, but for one Vallejo man, it was just the beginning of a legal tug-of-war with one of the largest financial institutions in the country.

In 2010, Todd Bishop signed over his rights to his home to Bank of America.

“We had neighborhood meetings. We have Fourth of July parties. It was a great house,” Bishop remembered.

After the foreclose, Bishop relocated to southern California thinking the deal was done. Nearly two years later, he learned that Bank of America had never assumed title and that squatters had moved in.

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Major Banks Aid in Payday Loans Banned by States

Major Banks Aid in Payday Loans Banned by States

Major banks have quickly become behind-the-scenes allies of Internet-based payday lenders that offer short-term loans with interest rates sometimes exceeding 500 percent.

With 15 states banning payday loans, a growing number of the lenders have set up online operations in more hospitable states or far-flung locales like Belize, Malta and the West Indies to more easily evade statewide caps on interest rates.

While the banks, which include giants like JPMorgan Chase, Bank of America and Wells Fargo, do not make the loans, they are a critical link for the lenders, enabling the lenders to withdraw payments automatically from borrowers’ bank accounts, even in states where the loans are banned entirely. In some cases, the banks allow lenders to tap checking accounts even after the customers have begged them to stop the withdrawals.

MCDONALD v. ONEWEST | EVIDENTIARY HEARING – We have discovered today that there are two versions of the original note. Are you now aware of that?

Here is the transcript. Click here. Here is the 2 versions of indorsements of the note: