Daily Archives: December 27, 2013

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Allstate, Deutsche Bank settle suit over mortgage securities

Allstate, Deutsche Bank settle suit over mortgage securities

(Bloomberg) — Deutsche Bank AG and Allstate Corp. settled a suit the insurer brought that accused the bank of misrepresentations and omissions in connection with loans backing $185 million in mortgage securities.

Allstate sued the Frankfurt-based lender in New York state Supreme Court in Manhattan in February 2011 on claims of fraud and negligent misrepresentation, saying the bank knew the securities were “toxic mixes of loans extended to borrowers who could not afford the properties.” The parties have settled the case, according to a court filing dated today.

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Letters: Questionable ethics at Wells Fargo

Letters: Questionable ethics at Wells Fargo

Re “Wells Fargo sales quotas come at cost,” Dec. 22

From 1996 to 2002, I worked at a Wells Fargo branch in Brentwood. My experience was just as The Times reported for other workers.

I was criticized numerous times for not selling according to the bank’s wishes. Contrary to the bosses’ demands, I chose not to push products on people who did not want or need things like loans or credit cards.

Customers were called in the evenings, as the article describes. Employees misbehaved. The pressure created a workplace that fostered fear-based conduct.

Customers who did their banking in the branch were given the hard sell at each desk and each teller window. Sales goals and tactics were devoid of any kind of business ethics.

I stayed at the job for the health insurance benefits. When I was able to quit, I did.

Kathryn M. Newman


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New Revelation that AG Eric Holder Is Protecting JPMorgan Chase NYC From Criminal Investigation

New Revelation that AG Eric Holder Is Protecting JPMorgan Chase NYC From Criminal Investigation

Providing additional evidence that the Obama Administration’s Department of Justice (DOJ) is protecting “banks too big to fail,” Pulitzer Prize winning financial reporter David Cay Johnston has revealed that the DOJ has refused to force JPMorgan Chase to comply with an ongoing investigation into the bank’s possible knowledge of Bernard Madoff’s fraud scheme of a few years ago.

The information obtained might reveal that the bank chose to financially benefit from criminal activity:

Bernard Madoff’s principal bank, JPMorgan Chase, has for years obstructed federal bank examiners trying to ascertain what it knew about his gigantic Ponzi scheme, an official document obtained by Newsweek shows.

The Justice Department refused in September to back up Treasury inspector general staff who wanted a  court order to enforce a subpoena, in effect shielding JPMorgan from law enforcement, the October 8 document shows.

The Justice Department told the Treasury Inspector General “that they were denying the request for enforcement of the subpoena,” which means officials “could not undertake further actions regarding this matter,” wrote Jason J. Metrick, the inspector general special-agent-in-charge.

Johnston disclosed the latest damning indication of the DOJ shielding Wall Street banks that dominate US finanes in aNewsweek article. The DOJ pattern of not exploring potential big bank criminal activity was admitted to by Attorney General Eric Holder — as BuzzFlash at Truthout reported at the time — as recalled by Johnston:

Last March Attorney General Eric Holder told a Senate hearing he was afraid to prosecute the Too Big to Fail Banks, as it could do even more economic damage, in effect declaring them Too Big to Prosecute.

“The size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy — perhaps even the world economy,” Holder testified.

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Mary Lou Vega v. Ocwen Financial Corp.; Ocwen Loan Servicing LLC

Mary Lou Vega v. Ocwen Financial Corp.; Ocwen Loan Servicing LLC

Ocwen routinely ordered unnecessary property inspections and assessed fees against the accounts of borrowers whose mortgages it services, a class claims.

USDC Central District of California
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Flagstar Bank Class Action

Flagstar Bank Class Action

SAN JOSE – Thousands of homebuyers lost millions of dollars in tax deductions because Flagstar Bank didn’t report to the IRS the mortgage interest they paid (Form 1098), a class action claims in Federal Court.

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Bankers are getting their holiday bonuses again this year, to the tune of over 91 billion!!

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BofA’s legal costs mount in Countrywide mortgage fiasco

BofA’s legal costs mount in Countrywide mortgage fiasco

NEW YORK — A federal judge will soon decide how much Bank of America should pay for some of Countrywide Financial Corp.‘s sins in the lead-up to the financial crisis.

Federal prosecutors want BofA to pay $864 million after the bank’s stinging defeat in a major civil fraud trial in October. A jury found BofA liable in a case centered on a Countrywide program called “The Hustle,” which churned out risky home loans before selling them to mortgage giants Fannie Mae and Freddie Mac.

But whatever penalty the bank might pay, it will amount to a mere drop in the bucket of BofA’s legal bills — much of it stemming from its ill-fated acquisition of the former Calabasas mortgage lender in 2008.