Daily Archives: April 20, 2015

Quicken Loans sues DOJ, HUD for “shake down”

Quicken Loans, the nation’s largest Federal Housing Administration-backed mortgage lender, filed suit late Friday in Federal District Court against the United States Department of Justice and the Department of Housing and Urban Development.

The company says it was left with no alternative but to take this action after the DOJ demanded Quicken Loans make public admissions that were blatantly false, as well as pay an inexplicable penalty or face legal action.

“After three years of struggling to understand the DOJ’s position and methodology that would warrant the country’s largest and highest quality FHA lender to make untrue admissions and pay an inexplicable penalty or face public legal action, it is time to ask the court to intervene,” said Quicken Loans CEO Bill Emerson.  “No threat, including high-profile senseless lawsuits from powerful federal officials, will deter our company and its leadership from doing the right thing.  We will stand in defense of our impeccable reputation established by thousands of hard-working ethical team members over our 30-year history.”

Quicken Loans has provided the DOJ with more than 85,000 documents, including 55,000 emails. In addition, the DOJ has conducted hundreds of hours of depositions from numerous Quicken Loans team members.

Read on.

American Justice? FBI Lab Overstated 95% Of Forensic Hair Matches (Including 32 Death Sentences)

We have a very broken justice system…

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

The Justice Department and FBI have formally acknowledged that nearly every examiner in an elite FBI forensic unit gave flawed testimony in almost all trials in which they offered evidence against criminal defendants over more than a two-decade period before 2000.

Of 28 examiners with the FBI Laboratory’s microscopic hair comparison unit, 26 overstated forensic matches in ways that favored prosecutors in more than 95 percent of the 268 trials reviewed so far, according to the National Association of Criminal Defense Lawyers (NACDL) and the Innocence Project, which are assisting the government with the country’s largest post-conviction review of questioned forensic evidence.

The cases include those of 32 defendants sentenced to death. Of those, 14 have been executed or died in prison.

“These findings are appalling and chilling in their indictment of our criminal justice system, not only for potentially innocent defendants who have been wrongly imprisoned and even executed, but for prosecutors who have relied on fabricated and false evidence despite their intentions to faithfully enforce the law,” Blumenthal said.

– From the Washington Post article: FBI Overstated Forensic Hair Matches in Nearly All Trials efore 2000

Some banks tried to renege on deals after SNB’s policy U-turn: Bloomberg

(Reuters) – After the Swiss National Bank abandoned its price cap on the franc in January, some dealers such as Bank of America Corp (>> Bank of America Corp), Barclays Plc (>> Barclays PLC) and Goldman Sachs Group Inc (>> Goldman Sachs Group Inc)approached customers about changing some trades, Bloomberg reported, citing people familiar with the discussions.

The banks sought to reduce their losses by trying to renege on transactions by contacting customers after the SNB decision, asking to discuss the rates they’d traded on, Bloomberg said.

Some currency trading firms and major banks lost out when the SNB scrapped its three-year-old cap on the franc against the euro <EURCHF=EBS> without warning on Jan. 15. Barclays lost “tens of millions” of dollars and retail broker Alpari UK filed for insolvency.

The banks’ attempts to reopen deals present their rivals such as electronic trading venues and established exchanges with a new argument – do business through us rather than dealers who can cancel or alter your trades after they have been executed, Bloomberg said.

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NY attorney general in $500-million talks to settle probe: WSJ.com

Morgan Stanley is in discussions to pay $500 million to settle an investigation by New York’s attorney general into whether the Wall Street bank misled investors in taking mortgage bonds that lost value during the financial crisis, the Wall Street Journal reported Sunday in its online edition, citing people familiar with the matter.

A deal with New York Attorney General Eric Schneiderman would likely include some cash from Morgan Stanley as well as consumer relief, the report said.

An agreement between the New York-based financial institution and Schneiderman’s office isn’t imminent, however, and the terms under discussion have changed, the report said. Aid to struggling homeowners will account for more than half of the total value of the settlement, but the form of the consumer relief isn’t clear, according to sources.

Read on