Daily Archives: May 12, 2014


SunTrust To Repay Premiums In Force-Placed Coverage Deal

SunTrust To Repay Premiums In Force-Placed Coverage Deal

Law360, New York (May 12, 2014, 1:38 PM ET) — SunTrust Mortgage Inc. will refund mortgagors a portion of force-placed property insurance premiums that were allegedly inflated by a collusive arrangement with QBE Specialty Insurance Co. under an uncapped, claims-made settlement filed Friday in Florida federal court.

The pact provides for a $3.6 million attorneys’ fee award and obligates SunTrust to return 10.5 percent of the net premium on class members’ lender-placed hazard, flood or wind policies. The bank placed more than 127,000 such policies during the six-year class period, according to the settlement.

Settlements over…


No end in sight for Deutsche Bank Libor probe: sources

No end in sight for Deutsche Bank Libor probe: sources

(Reuters) – There is no end in sight to investigations into the Libor benchmark rate scandal at Deutsche Bank, two sources familiar with the probe said on Monday, rejecting a report saying senior managers had received an “all-clear” signal.

The comments come after German magazine WirstschaftWoche reported at the weekend that Deutsche Bank’s internal investigation had ended and had found no misconduct by senior managers, citing high-placed sources at the bank.

Two sources close to the matter said it was too early to issue any all-clear signal as investigations both internally at the bank and by external investigators remained in full swing.

“The Libor investigation at Deutsche Bank is still running,” said one regulatory source. “There is no end in sight at the moment. It could go on for months – there is no concrete schedule.”

Deutsche Bank declined to comment on the report and referred to a previous statement saying it was cooperating with authorities as it pursued its own internal probe.


OneWest Bank Accepts Forged “Deed of Trust” Document and Proceeds With Foreclosure Process On Elderly Individual – Press Conference Scheduled For May 15, 2014

OneWest Bank Accepts Forged “Deed of Trust” Document and Proceeds With Foreclosure Process On Elderly Individual – Press Conference Scheduled For May 15, 2014

As a result of the Mortgage Meltdown of 2008, customers of IndyMac Mortgage Services, now operated by OneWest Bank, are systematically being taken to the cleaners by unscrupulous bureaucrats who place their own interests first.

LOS ANGELES, CALIFORNIA, May 12, 2014, As a result of unscrupulous bank practices, such as “Robo-Signing”, Mortgage Document Packages were sold off in batches with no oversight. Supporting Documents were far and few between, and exactly who owned many of these properties could not be determined. The result was thousands of Homeowners losing their homes without Due Process. Those people who had the capability of speaking out received some relief, which often amounted to a “pat on the back”, or a Check in the amount of $300.00, or even as little as $25.00, which was supposed to satisfy people who lost homes worth hundreds of thousands of dollars.


The instant case is most disturbing in that an elderly individual was defrauded by his Caretaker, who even went to the extent of Forging his signature to the “Deed of Trust” Document. The home went from a free-and-clear property, to a property deep in debt. A Forensic expert agreed that the signature was indeed a Forgery, yet the bank officials decided to use it anyway as a Fiduciary Instrument to further their own interests, and proceed with the Foreclosure.

If an 88 year old individual has no legal recourse, it represents a legal system that has gone “sour”. Steven Rosenberg, whose father is the victim of not only Caretaker Abuse, but also of One West Bank Abuse, is not going to stand idly by and watch his family home become another statistic. How many other families have lost their homes due to criminal actions of caretakers, and then the banks? It is almost as if the banks invite these criminal episodes to take place so that their position is enhanced in the foreclosure process.


A Press Conference has been scheduled for Thursday, May 15, 2014, at the Los Angeles Press Club. Case Number BP109162 filed in the Los Angeles Superior Court in behalf of the Estate of Isadore Rosenberg will be discussed. This conference is being held to inform the public that the Independent Foreclosure Review conducted by OneWest Bank and its designated “independent auditor” Rust Consulting, appears to be a sham. The amount of one of the first issued checks will be revealed at the press conference.

An independent consultant ignored the extensive claim package documentation of:

* Forgery of Borrowers Name on Loan Application and Deed of Trust.

* False County Recorder Assignments.

* False “Robo Signed” Court Filings.


Telegraph: Banks use intrusive questions to slash mortgage offers

Telegraph: Banks use intrusive questions to slash mortgage offers

In one case, a borrower who was reassessed under new rules was offered almost £20,000 less

Banks are using deeply intrusive questioning to cut tens of thousands of pounds off the mortgages offered to home buyers, it has emerged.

The questions range from how much is spent on pet food to membership of golf clubs or, according to one report, whether customers frequently eat steak.

The intrusions are part of new affordability checks, ordered by regulators, to prevent a repeat of the 2008 financial crisis.

The Telegraph has anecdotal evidence that lenders are using the rules to downgrade loan offers. This could block people from home ownership even if their income and outgoings are stable – and comes just as house prices rise.

In one case, a borrower who was reassessed under the new rules was offered almost £20,000 less than she secured just months earlier, even though she had a 40pc deposit.


J.P. Morgan could shed up to 10,000 more jobs

J.P. Morgan could shed up to 10,000 more jobs

JPMorgan is on the ropes.

As many as 10,000 more job cuts are on the table this year on top of previously announced layoffs — the brutal result of shrinking business and regulators prowling for blood, The Post has learned.

The latest setbacks at the largest US bank, employing 250,000 worldwide, are so stark, they could force CEO Jamie Dimon to throw in the towel, analysts say.

“It’s just beginning to hit them over the head,” said Nancy Bush, a consultant and strategic adviser at NAB Research. She believes JPMorgan is also caught up in massive global deleveraging, which is shrinking the entire financial system — and it’ll reverberate through trading markets. “Consumers have reduced their debt,” Bush said. “The government leveraged up to fill in that hole and is now going to start deleveraging. There’ll be layoffs at JPMorgan.”

A Commodities Trading Titan Staffed With Former Goldman And JPM Employees Is Quietly Growing In Switzerland

WSJ reports:


Magid Shenouda, who retired from Goldman Sachs toward the end of last year, will run Mercuria’s trading business, joining the company’s two Swiss founders, Marco Dunand and Daniel Jaeggi on the management team.


Mr. Shenouda will take over management of the company’s trading operations from Mr. Jaeggi, giving the Swiss trader more time to focus on client relationships and the integration of J.P. Morgan’s commodities business once the sale closes later this year, the person said.


“It makes sense to have another person…the size of the company has reached a level that it’s tough to run with the current management,” said a person familiar with the situation.


Mr. Shenouda spent 14 years at Goldman Sachs running the bank’s European crude oil and oil products and gas and power trading desks before becoming global co-head of its commodities trading business.


Independent commodities merchants—an elite group of mostly privately held companies that specialize in trading everything from copper to cocoa—have grown rapidly over the past 10 years and are increasingly tapping big banks for executive talent as they seek to bolster their management teams.

Mercuria isn’t the only commodities merchant to take advantage of Goldman talent:


Hong Kong-based trader Noble Group appointed former co-head of Goldman Sachs’ operations in Asia, Yusuf Alireza, as its chief executive officer in 2012. Agricultural trading giant Louis Dreyfus Commodities is on the hunt for a new CEO from outside the company.


Feds Indict Attys, Banker For $30M NY Mortgage Fraud Plot

Feds Indict Attys, Banker For $30M NY Mortgage Fraud Plot

Law360, New York (May 12, 2014, 1:18 PM ET) — Two New York lawyers, one who was disbarred in 2011 and is now incarcerated, and the principal of a Garden City mortgage bank engaged in a $30 million scheme to rip off lenders by lying about property values and other information, according to a Long Island federal court indictment unsealed last week.

Victims of the alleged fraud, including First Collateral Services Inc., Georgia Banking Co. and Sovereign Bank, relied on information provided by the mortgage bank’s principal, defendant Aaron Wider, who was aided by others, including…

EXCLUSIVE: Baker denies employment at General Catalyst. Pando finds 33 docs that say otherwise

Great reporting by Pando.

Sterlings’ fight for the LA Clippers franchise vs. NBA Constitution and by-laws

I am avid basketball watcher. This whole Donald Sterling soap opera of the racist comments exposed by TMZ.com  continues to be distracting. Now the whole scandal has turned into  Donald Sterling vs Shelly Sterling fight for the LA Clippers franchise. Each of them has given their own interviews. Mr. Sterling on Anderson Cooper’s AC360 show is asking for forgiveness and not given up the Clippers team. On the other hand, Ms. Sterling gave an interview with Barbara Walters that she vows to fight Clippers’ share. NBA says no. From NBA spokesman Mike Bass:

“Under the NBA Constitution, if a controlling owner’s interest is terminated by a 3/4 vote, all other team owners’ interests are automatically terminated as well. It doesn’t matter whether the owners are related as is the case here. These are the rules to which all NBA owners agreed to as a condition of owning their team.”

Ms. Sterling’s attorney Pierce O’Donnell says: “We do not agree with the league’s self-serving interpretation of its constitution, its application to Shelly Sterling or its validity under these unique circumstances..” “We live in a nation of laws. California law and the United States Constitution trump any such interpretation.”

Well this an excerpt of the NBA Constitution. Maybe the Sterlings need to brush up on it. From Article 14:

(g) If, by a three-fourths (3/4) vote, the Board of
Governors votes to sustain the charges, the Membership of the guilty Member or the Member in which the guilty Owner has an interest shall automatically be terminated, unless, following a motion duly made and seconded, two-thirds (2/3) of all the Governors vote instead to terminate the ownership interest of the guilty Owner or to invoke the provisions of Article 15.


(i) If any Membership or interest of an Owner shall be
terminated pursuant to this Article 14, the provisions of Article 14A
shall apply.

(j) The decisions of the Association made in accordance
with the foregoing procedure shall be final, binding, and conclusive, and each Member and Owner waives any and all recourse to any court of law to review any such decision.

The only hope that Sterlings have is there isn’t 3/4 of a vote to sell the team in which I am not holding my breath.



FHFA launches Twitter platform

FHFA launches Twitter platform

According to the FHFA,  it launched its Twitter account to increase the availability and accessibility of FHFA news. The FHFA will use @FHFA to tweet links to speeches, testimony, news releases, research papers, monthly and quarterly reports and other select announcements.