Daily Archives: September 15, 2013

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No balloons and cake for Wall Street: Larry Summers pulls out of running to be Federal Reserve chairman

No balloons and cake for Wall Street: Larry Summers pulls out of running to be Federal Reserve chairman

WASHINGTON — Former Treasury Secretary Lawrence H. Summers has withdrawn his name from consideration to be the next chairman of the Federal Reserve chairman, President Obama said Sunday.

Summers had been a leading contender to replace current Chairman Ben S. Bernanke, whose term expires in January, and in recent weeks had appeared to be the front-runner.

His withdrawal opens the door for the other leading contender, Janet L. Yellen, the Fed’s current vice chair. If nominated and confirmed, she who would be the first woman to head the central bank.

Summers, a former top economic advisor to Obama, had faced strong opposition from many Democrats. He is known for being difficult to work with and has been criticized by liberals for his support for some financial-industry deregulation in the late 1990s when he was in the Clinton administration.

This is a complete list of Wall Street CEOs prosecuted for their role in the financial crisis

Five years after Lehman fell, taking the global economy along with it, a roll call of Wall Street CEOs serving time for their role in the crisis looks something like this:

So, yeah. Zero Wall Street CEOs are in jail. But we did promise you a list:

1. No one.

2. LOL.

3. Wall Street’s lawyers are amazing.

4. Etc. Etc.

It’s not that federal government tried to prosecute a bunch of them but lost the cases. There were no serious efforts at criminal prosecutions at all.

Read on.

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Merritt v. Mozilo | The … judgments in favor of Bank of America and Lewis are REVERSED… In sum, the Merritts stated a cause of action for conspiracy to commit fraud against Bank of America and Lewis

Merritt v. Mozilo | The … judgments in favor of Bank of America and Lewis are REVERSED… In sum, the Merritts stated a cause of action for conspiracy to commit fraud against Bank of America and Lewis

We conclude that this court lacks jurisdiction to consider the appeal as to Countrywide defendants and that the trial court did not err when it sustained the demurrers of First American and MERS. We also conclude that the trial court erred in sustaining the demurrers of Bank of America and Lewis. Accordingly, the judgments in favor of First American and MERS are affirmed and the judgments in favor of Bank of America and Lewis are reversed.

Here is the court document: http://stopforeclosurefraud.com/wp-content/uploads/2013/09/Merritt-v.-Mozilo-CA6-H037414-Cal.-2013.pdf

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Foreclosure nightmare: Family’s home sold, but it wasn’t for sale

Foreclosure nightmare: Family’s home sold, but it wasn’t for sale

ALTADENA, Calif. (KABC) — What would you do if you suddenly found out your mortgage company had sold your house right out from under you even though you always paid on time? An Altadena family suddenly facing eviction turned to Eyewitness News when that happened to them.

 

The Altadena house has been home for Ceith and Louise Sinclair, who bought it in 2003. They’ve been living in it with four of their kids.

Last year, they got a loan modification with Ocwen Financial Corporation. Then they say they got a call, and later a letter, notifying them Ocwen had sold their loan to Nationstar Mortgage. In June, they got a knock at the door.

“They came and knocked on our door. That’s how we found out our house had been sold,” said Louise Sinclair.

The Sinclairs say although they hadn’t received notice prior to that day, the person at the door told them they had two weeks to leave their house because a company called Sage Equities had bought it in foreclosure. They were expected to pay rent in the meantime.

“We thought we were doing everything. We were paying our mortgage every month. And then they’re going to sell your house up from underneath you without you knowing?” said Ceith Sinclair.

The Sinclairs say they’ve always paid their mortgage on time, in full, and they have the documentation to prove it. But then, in June, after their first payment to Nationstar, the mortgage company sent a check back to them for the full amount.

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Ex- SEC Cop who looked the other way is now employed by the banksters

Ex- SEC Cop who looked the other way is now employed by the banksters

On March 11, 2008, Christopher Cox, former chairman of the Securities and Exchange Commission, said he was comfortable with the amount of capital that Bear Stearns and the other publicly traded Wall Street investment banks had on hand.

Days later, Bear was gone, becoming the first investment bank to disappear in 2008 under the watch of Cox’s SEC. By the end of the year, all five banks supervised by the SEC were either bankrupt, bought or converted to bank holding companies.

Under Cox’s leadership from 2005 to 2009, the SEC was widely criticized for falling asleep on the job during the events leading up to the financial meltdown. SEC defenders say the agency was understaffed, underfunded and simply didn’t have the authority to be an effective watchdog.

Cox is one of the slew of regulators and overseers who became household names during the financial crisis of 2008 — a cast of characters whose jobs were to protect consumers, monitor banks and financial firms, rescue the ailing industry and punish wrongdoing in the years that followed.

Cox took his Washington expertise to the private sector, helping banks and other companies navigate the new regulatory landscape that the crisis spawned. Other former top regulators — like Hank Paulson, Timothy Geithner and Sheila Bair — have written books based on their experience and joined the lecture circuit. John Reich has retired since his agency, the Office of Thrift Supervision, was eliminated. Federal Reserve Chairman Ben Bernanke is the only top regulator still on the job, though he is expected to be gone soon.