Daily Archives: July 27, 2015

Jury retires to deliberate in Libor rigging case

The jury in the trial of Tom Hayes, the former UBS and Citigroup trader charged with manipulating global Libor interest rates, has retired to digest nine weeks of evidence.

Mr Hayes has pleaded not guilty to the eight counts of conspiracy to defraud.

Libor, which stands for London Interbank Offered Rate, is the agreed rate at which large banks charge each other for borrowing.

Mr Hayes is the first trader to be tried by a jury for Libor manipulation.

Several trillion dollars of loans, mortgages and other deals are tied to the Libor rate worldwide.

Read on.

Utah AG Revives BofA Foreclosure Fight Tied to Corruption Case

Utah’s attorney general revived a potential billion-dollar battle with Bank of America Corp. over foreclosure practices after two of his predecessors were charged with corruption for abandoning the fight.

The lawsuit is deja vu for U.S. District Judge Bruce Jenkins, who last week allowed Utah Attorney General Sean Reyes to join a homeowner’s case accusing Bank of America unit ReconTrust Co. of illegally foreclosing on Utahans’ homes.

Jenkins expressed puzzlement when outgoing Attorney General Mark Shurtleff bowed out of a similar case two years ago — just months after the judge ruled the suit could head to trial.

Read on.

Hillary Clinton won’t propose reinstating a bank break-up law known as the Glass-Steagall Act

Hillary Clinton won’t propose reinstating a bank break-up law known as the Glass-Steagall Act – at least according to Alan Blinder, an economist who has been advising Clinton’s campaign. “You’re not going to see Glass-Steagall,” Blinder saidafter her economic speech Monday in which she failed to mention it. Blinder said he had spoken to Clinton directly about Glass-Steagall.

This is a big mistake.

It’s a mistake politically because people who believe Hillary Clinton is still too close to Wall Street will not be reassured by her position on Glass-Steagall. Many will recall that her husband led the way to repealing Glass Steagall in 1999 at the request of the big Wall Street banks.

It’s a big mistake economically because the repeal of Glass-Steagall led directly to the 2008 Wall Street crash, and without it we’re in danger of another one.

Read on.

Mortgage lenders “routing” homebuyers to FHA?

Even as the housing and mortgage markets are stabilizing, many borrowers with good credit remain shut out of the home-loan market or saddled with a new array of fees and extra costs.

Lending standards may have loosened since the end of the Great Recession six years ago, but mostly for buyers with excellent credit scores of more than 700, analysts say.

Borrowers with minor credit dings, or down payments of less than 20 percent, still can’t get access to federally backed loans once considered mainstream. Lenders are instead routing them into higher-cost Federal Housing Administration (FHA) mortgages, designed for low-income or bad-credit borrowers.

The cost of such FHA loans has also jumped, with hiked upfront fees for private mortgage insurance and monthly insurance payments that now are locked in for the entire loan period — regardless of the borrower’s payment record or escalating home equity.

Read on.

How We Got Here – The 2008 Financial Crisis For Dummies

It could never happen again, right?

h/t 2020Crash.blogspot.com

DK CONSULTANTS LLC RELEASES THE OSCEOLA COUNTY, FLORIDA FORENSIC EXAMINATION