Daily Archives: May 16, 2015

GROUP ACCUSES FANNIE MAE OF RACIAL DISCRIMINATION

INDIANAPOLIS (WISH) — The Fair Housing Center of Central Indiana is one of 20 civil rights groups accusing the Federal National Mortgage Association, or Fannie Mae, of racial discrimination. The groups say Fannie Mae catered to primarily white neighborhoods, while neglecting neighborhoods with mostly minorities.

The National Fair Housing Alliance will lead an announcement in D.C. at 9:15 a.m. Wednesday, detailing what they call “illegal discrimination” in more than 60 cities, including Indianapolis. The civil rights groups say Fannie Mae ignored its foreclosed homes in African American and Latino neighborhoods, while consistently taking care of its homes in white neighborhoods.

According to the complaint, Fannie Mae did not market or maintain the homes in the minority neighborhoods — leaving property to deteriorate. Authorities have said run down homes hurt the neighborhoods and can lead to crime. The Fair Housing Alliance says this has been going on since at least 2009 and they’ve warned Fannie Mae about the problems before, but nothing has changed. At the announcement, the groups will release evidence they say they’ve gathered for the past five years.

Rest here…

Sen. Bernie Sanders exposed 18 CEOs who took trillions in bailouts, evaded taxes and outsourced jobs

It’s worth repeating again since Sen. Bernie Sanders is running for President in 2016 and has been spot on about Wall Street. Sanders exposed those corporate dodgers that took trillions in bailouts:

Sanders said,

There really is no shame. The Wall Street leaders whose recklessness and illegal behavior caused this terrible recession are now lecturing the American people on the need for courage to deal with the nation’s finances and deficit crisis. Before telling us why we should cut Social Security, Medicare and other vitally important programs, these CEOs might want to take a hard look at their responsibility for causing the deficit and this terrible recession.

Our Wall Street friends might also want to show some courage of their own by suggesting that the wealthiest people in this country, like them, start paying their fair share of taxes. They might work to end the outrageous corporate loopholes, tax havens and outsourcing provisions that their lobbyists have littered throughout the tax code – contributing greatly to our deficit.

Many of the CEO’s who signed the deficit-reduction letter run corporations that evaded at least $34.5 billion in taxes by setting up more than 600 subsidiaries in the Cayman Islands and other offshore tax havens since 2008. As a result, at least a dozen of the companies avoided paying any federal income taxes in recent years, and even received more than $6.4 billion in tax refunds from the IRS since 2008.

Several of the companies received a total taxpayer bailout of more than $2.5 trillion from the Federal Reserve and the Treasury Department.

Many of the companies also have outsourced hundreds of thousands of American jobs to China and other low wage countries, forcing their workers to receive unemployment insurance and other federal benefits. In other words, these are some of the same people who have significantly caused the deficit to explode over the last four years.

Here are the 18 CEOs Sen. Sanders labeled job destroyers in his report. (All data from Top Corporate Dodgers report.)

1). 1. Bank of America CEO Brian Moynihan
Amount of federal income taxes paid in 2010? Zero. $1.9 billion tax refund.
Taxpayer Bailout from the Federal Reserve and the Treasury Department? Over $1.3 trillion.
Amount of federal income taxes Bank of America would have owed if offshore tax havens were eliminated? $2.6 billion.

2). Goldman Sachs CEO Lloyd Blankfein
Amount of federal income taxes paid in 2008? Zero. $278 million tax refund.
Taxpayer Bailout from the Federal Reserve and the Treasury Department? $824 billion.
Amount of federal income taxes Goldman Sachs would have owed if offshore tax havens were eliminated? $2.7 billion.

3). JP Morgan Chase CEO James Dimon
Taxpayer Bailout from the Federal Reserve and the Treasury Department? $416 billion.
Amount of federal income taxes JP Morgan Chase would have owed if offshore tax havens were eliminated? $4.9 billion.

And the list goes on….

L.A.’s mortgage discrimination lawsuit against Bank of America tossed

A federal judge rejected a mortgage discrimination lawsuit brought by the city of Los Angeles against Bank of America, according to a ruling obtained Friday.

In a written decision, U.S. District Judge Percy Anderson determined that the municipality could not sue under the U.S. Fair Housing Act because it had not shown it had suffered any damages “as a result of defendants’ allegedly discriminatory loans.”

Los Angeles City Attorney Mike Feuer is “currently reviewing the judge’s decision,” which was handed down Thursday, said his spokesman, Rob Wilcox.

Read on.

JPMorgan close to settling rigging probe

JPMorgan Chase says the US Justice Department will require the bank to plead guilty to settle charges it conspired with other banks to rig the foreign exchange market.

The bank’s negotiations with the Justice Department and other regulators on the forex probe, ‘while not completed, are nearing conclusion’, JPMorgan said in a securities filing on Thursday.

‘The firm understands that any resolution acceptable to DOJ would require that the firm plead guilty to an antitrust charge.’

– See more at: http://www.skynews.com.au/business/business/world/2015/05/15/jpmorgan-close-to-settling-forex-rigging-probe.html#sthash.lM4HWdRc.dpuf

Ex-JPMorgan Banker, Father Charged With Insider Trading

Law360, New York (May 14, 2015, 1:15 PM ET) — New York federal prosecutors on Thursday charged a former JPMorgan Chase & Co. investment banker and his father with insider trading ahead of five health care industry mergers.

Former JPMorgan Chase & Co. investment banker Sean Stewart was charged on Thursday with insider trading in a New York district court. (Credit: Getty) Sean Stewart, a former vice president in JPMorgan’s health care group who now works as a managing director at Perella Weinberg Partners LP, was charged in a criminal complaint along with his father, Robert…

Source: Law360

Nomura, RBS must pay $806 million in mortgage bond case: U.S. judge

A U.S. judge on Friday ordered Nomura Holdings Inc (>> Nomura Holdings, Inc.) and Royal Bank of Scotland Group Plc (>> Royal Bank of Scotland Group plc) to pay a collective $806 million for making false statements in selling mortgage-backed securities to Fannie Mae (>> Federal National Mortgage Assctn Fnni Me) and Freddie Mac (>> Federal Home Loan Mortgage Corp).

U.S. District Judge Denise Cote in Manhattan entered the judgment after finding the banks liable on Monday following a non-jury bench trial in a lawsuit by the Federal Housing Finance Agency over securities sold ahead of the 2008 financial crisis.

Under the order, Fannie Mae will receive $26.6 million while Freddie Mac will be paid $779.4 million by the two firms.

Read on.

Solve This, Class Tells Wells Fargo Bank

OAKLAND (CN) – A federal class action accuses Wells Fargo of deceptively charging customers for “solutions” to problems they never had, and services they never asked for.
Lead plaintiff Shahriar Jabbari sue then bank Wednesday, claiming it encourages employees to use illegal, fraudulent, deceptive and abusive tactics to open fee-generating accounts it calls by misrepresenting them or not informing customers at all.
Wells Fargo calls the tricks “solutions,” and induces employees to use them by giving them “unrealistic sales quotas,” Jabbari claims.
Los Angeles City Attorney Michael Feuer filed a similar complaint against Wells Fargo last week.
The bank’s abusive “solutions” include hidden fees, adding unwanted secondary accounts to primary accounts without permission, misrepresentations and no representations at all, Jabbari says.
“(T)he bank also routinely opens customer accounts and issues credit cards without the customer’s authorization or knowledge,” the lawsuit states. “Then, when customers fail to maintain mandatory account balances, pay fees for accounts they did not know existed, or comply with some other undisclosed policy, Wells Fargo charges the customer a fee. Often Wells Fargo simply ‘pays’ this resulting fee by taking money from the clients’ existing accounts. Or Wells Fargo sends the ‘debt’ the customers ‘owe’ to a debt collection agency.”
If bank employees fail to meet their quotas, they could lose pay or lose their jobs, Jabbari claims.

Read on.