Daily Archives: August 15, 2014

Bank of America could get tax break on part of $16 billion mortgage settlement

As Bank of America prepares for a possible multibillion-dollar settlement with the government, the deal is expected to share a feature common to similar settlements with other banks – a big portion that’s tax-deductible as a business expense.

The Charlotte bank and the Department of Justice are negotiating the terms of a potential settlement of more than $16 billion over soured mortgage bonds, in a deal that has not been finalized but could be announced as early as next week.

Morgan Stanley must pay $4.5 million to Banamex: panel

(Reuters) – A unit of Morgan Stanley (>> Morgan Stanley) must pay $4.5 million to Citigroup Inc’s (>> Citigroup Inc) Banamex unit which alleged the firm had allowed funds in a family’s trust account to be used to repay third-party loans without its authorization, according to a ruling on Friday.

(Reuters) – A unit of Morgan Stanley (>> Morgan Stanley)must pay $4.5 million to Citigroup Inc’s (>> Citigroup Inc)Banamex unit which alleged the firm had allowed funds in a family’s trust account to be used to repay third-party loans without its authorization, according to a ruling on Friday.

A Financial Industry Regulatory Authority (FINRA) arbitration panel found Morgan Stanley & Co Inc liable for negligence in the case, filed by Banamex in 2012. Banamex, which served as trustee to a family’s trust account, had sought more than $5.2 million, according to the ruling.

Read on.

Ferguson Police Chief IDs officer who shot Mike Brown

This will be a very interesting.. Police Chief names Darren Wilson as the officer that shot and killed 18 year old Mike Brown.  From Zerohedge:

Police suggest Brown was prime suspect in a crime… As The BBC reports,

Michael Brown, the black teenager shot by police on Saturday in Ferguson, Missouri, was asuspect in a robbery just moments earlier, police have said.

Police say Mr Brown, 18, was one of two men suspected of robbing a nearby convenience store.

Minutes later he was shot by Officer Darren Wilson after a struggle, Ferguson police Chief Thomas Jackson said on Friday.


Here is the photo from the convenience store. Click here.

The Nation Journal reports,


After nearly a week of protests, on Friday the Ferguson, Mo. Police Department identified the officer who shot 18-year-old Michael Brown.


At a press conference, Ferguson Police Chief Thomas Jackson said Darren Wilson, a police officer who had been serving in the force for six years, was responsible for the shooting.


Jackson did not take questions, but earlier told CNN that the responsible officer was “devastated.”


The news comes after five days of turmoil in Ferguson, a St. Louis suburb of 21,000.


On Sunday night, Darren Wilson shot and killed Brown, who was unarmed. Since then, there have been protests in the street every night. Ferguson police initially responded with SWAT teams, tear gas, and rubber bullets. On Thursday, the state government announced a switch, taking St. Louis County police officers off the beat and placing Missouri State Highway Patrol officers in command.


The naming comes after hackers tried to figure out the officer responsible for themselves. On Thursday, Anonymous released the name and photo of a Ferguson police officer the group claimed to be the man who shot Brown. Ferguson police quickly denied their claim, and Twittersuspended the Anonymous account that had sent out the information.

*  *  *

Is this Darren Wilson?

Black officers call for changes to ease racial tension in St. Louis police

Darren Wilson, president of the Ethical Society of Police, speaks to members on Wednesday, Sept. 11, 2013, during a meeting to discuss racial tensions in the department after a racially charged letter was left in an African-American police officer’s mailbox.

From 2013,


Minority officers sounded off for more than two hours Wednesday before the police department’s highest-ranking black commanders about issues they believe illustrate racism within the ranks and the need for reform. But those commanders blamed some of the issues on unmotivated officers.


About 30 members of the Ethical Society of Police packed the organization’s office for the special meeting convened to call black commanders to action in the wake of a racist letter sent to a black police officer, presumably by another officer in South Patrol.


The group’s president, Sgt. Darren Wilson, said last week that the racist note was symptomatic of a larger, citywide problem. About a third of the 1,325-member police force is African-American; the city it serves is almost equally divided between black and white residents.


“If you’re treating a police department employee like this, how are we treating our citizens?” Wilson asked.

*  *  *

This is pure speculation but he is a police officer in St.Louis called Darren Wilson…

Important update: There is certainly a problem as several witnesses that witness the shooting came forward in the media and stated that the officer was white. Now, yesterday  Anonymous ‘announced’ the possible name (Bryan Willman).  There is an update on Epoch Times that St. Louis Police Department is stating that are two Darren Wilsons on the Fergerson police force and neither Sgt. Darren Wilson (the pic above) nor Bryan Willman are the officer who shot Mike Brown. From Epoch Times:

The St. Louis County Police Department released the name of the police officer who killed Michael Brown on Friday after public pressure.

It’s not Bryan Willman; the department says it was Darren Wilson, a six-year veteran of the force. 

However, no photos are available as of yet of Wilson–and there’s two Darren Wilsons on the Ferguson police force. The Darren Wilson who shot Brown is not the black Wilson who is president of the Ethical Society of Police.

We have to see from the result this entire state as well as federal investigation who is telling the truth…the real question who is the other Darren Wilson???


It is expected that Plaintiffs will seek leave to amend the Complaint to allege that Ocwen took over servicing from Litton Loan Servicing, L.P. (“Litton”) when the loan was in default. 

Here is the complaint. Click here.

Dodd-Frank Law Doesn’t Shield Whistleblowers Overseas: 2nd Circ.

Case Information

Case Title

Liu v. Siemens AG


Case Number



Appellate – 2nd Circuit

Nature of Suit


Law360, New York (August 14, 2014, 12:22 PM ET) — The Second Circuit ruled Thursday that the Dodd-Frank Act’s whistleblower protections do not cover tipsters outside the U.S., siding with Siemens AG in a case brought by a former company lawyer alleging he was fired after reporting potential fraud at a Chinese subsidiary.

A three-judge appellate panel upheld a lower court’s ruling that the Dodd-Frank Wall Street Reform and Consumer Protection Act’s anti-retaliation provisions, which are meant to protect those who report potential securities fraud, does not apply “extraterritorially.”

The Second Circuit said further that, in…

Source: Law360

RBS Settles Insurer’s NY Fraud Suit Over $291M In MBS

Law360, New York (August 15, 2014, 2:15 PM ET) — RBS Securities Inc. has struck a deal to end Assured Guaranty Municipal Corp.’s claims that it misrepresented the value of residential mortgage-backed securities worth $291 million to score financial guaranty insurance, according to a Thursday filing in New York federal court.

U.S. District Judge Ronnie Abrams dismissed the suit with prejudice and without costs, with the stipulation that Assured Guaranty could revive the suit within 30 days.

The certificates that were insured were part of a $1.2 billion securitization known as the Soundview Home Loan Trusts….

Source: Law360

Holders of Argentina eurobonds plan to appeal U.S. court ruling

Holders of euro-denominated Argentine bonds plan to appeal a U.S. judge’s ruling blocking the country from making payments on their debt, according to a court filing on Friday.

In a notice filed in Manhattan federal court, lawyers for the bondholders challenged an Aug. 6 ruling from U.S. District Judge Thomas Griesa that Argentina cannot pay the bondholders until it also pays holdout investors who refused to restructure their debt in the wake of Argentina’s 2001-2002 default.

Meanwhile, Citigroup Inc and Argentina on Friday were granted an expedited appeal of another order from Griesa that barred future payments to holders of certain U.S. dollar-denominated restructured bonds, after the judge allowed the bank to make a one-time payment.

Both appeals will be considered by the 2nd U.S. Circuit Court of Appeals in New York. The court on Friday set oral arguments in the Citibank matter for Sept. 18.

Argentina defaulted after missing a July 30 deadline for payments on restructured bonds. Officials have claimed the country fulfilled its obligations but was blocked by Griesa, whom they have criticized, saying he overstepped his authority.

Read on.

California changes loan originator education requirements

A newly adopted law changes the education requirements for mortgage loan originators in California. Senate Bill 1459 amends the California Finance Lenders Law and the California Residential Mortgage Lending Act to require that mortgage loan originators receive additional education on California’s laws to gain a license to operate in the state.

California Gov. Jerry Brown signed SB-1459 into law on July 10 after the state senate unanimously approved the bill on June 26.

The new law requires that an applicant seeking a mortgage loan originator license in California must complete two hours of approved education related to relevant California law and regulation.

An applicant seeking a mortgage loan originator license must also complete at least 18 additional hours of Nationwide Mortgage Licensing System and Registry-approved education, including at least:

  • Three hours of instruction on federal law and regulations
  • Three hours of ethics, which shall include instruction on fraud, consumer protection, and fair lending issues
  • Two hours of training related to lending standards for the nontraditional mortgage product marketplace

Applicants are also required to pass an NMLS-approved written test that covers the following areas:

  • Ethics
  • Federal law and regulation relating to mortgage origination
  • State law and regulation relating to mortgage origination
  • Federal and state law and regulation, including instruction on fraud, consumer protection, the nontraditional mortgage marketplace, and fair lending issues

Read on.

Bank ‘relief’ leaves homeowners in the cold


 – Bruce Marks, CEO Of Neighborhood Assistance Corporation Of America

Maybe size doesn’t matter.

The whopping $17 billion settlement expected next week from Bank of America over its soured mortgage-backed securities may be the biggest ever against a single bank — but for aggrieved homeowners that might not be enough.

Consumer activists are unhappy with Attorney General Eric Holder and President Barack Obama over the reported terms of the settlement. The bank will pay about $9 billion in cash to the US Treasury and state coffers. An additional $8 billion will be in the form of “consumer relief,” while no top executives are expected to see jail time.

“They have absolutely failed the American homeowners,” Bruce Marks, chief executive officer of the Neighborhood Assistance Corporation of America, an advocacy group that helps underwater mortgagees, told The Post.

“These settlements are a public relations scheme to try to convince the American people that they’re on their side when the facts show they have been there for the banks.”

Last month, Kevin Whelan, national director of the Home Defenders League, asked Holder to “ensure that the consumers who have been the victims of predatory lending practices see the relief that is intended and has been promised” with the BofA settlement.

Marks, who formerly worked at the Federal Reserve Bank of New York, said he was skeptical of how much homeowners would receive from the bank because of past settlements.

Previous settlements “have not provided significant benefits for the homeowners,” he said. “Even though the homeowners were the most victimized, very little was done to help the homeowners.”

Read on.

Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against Ocwen Financial Corporation — OCN

NEW YORK, Aug. 13, 2014 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Florida, on behalf of all persons who purchased or otherwise acquired the securities of Ocwen Financial Corporation (“Ocwen” or the “Company”) (NYSE:OCN) during the period between May 2, 2013 through August 11, 2014, inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).

The Complaint alleges that during the Class Period, Defendants issued materially false and misleading statements and omitted material information from Ocwen’s public disclosures, which failed to disclose, among other things, that: (i) Altisource Portfolio Solutions, S.A. (“Altisource”) — a company of which Defendant William C. Erbey, Ocwen’s Chairman of the Board, owns approximately 27% of its shares outstanding — was charging exorbitant fees to Ocwen to enable Defendants to funnel as much as $65 million in questionable fees; (ii) despite public representations to the contrary, Defendant Erbey was personally involved in approving conflicted transactions with Altisource and other related entities which he controlled; (iii) the Company failed to comply with applicable laws and regulations, including lending regulations designed to protect homeowners; (iv) the Company’s financial statements during the Class Period were artificially inflated and did not provide a fair presentation of the Company’s finances and operations; (v) the Company lacked adequate internal and financial controls; and (vi) as a result of the above, the Company’s financial statements were materially false and misleading at all relevant times. In addition, the Company’s financial results were artificially inflated during the Class Period, resulting in a restatement of the Company’s financial results.

If you wish to serve as lead plaintiff, you must move the Court no later than October 14, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Read more: http://www.nasdaq.com/press-release/gainey-mckenna–egleston-announces-a-class-action-lawsuit-has-been-filed-against-ocwen-financial-20140813-01164#ixzz3AQxy43OX