Daily Archives: September 22, 2015

Oakland, CA lawsuit accuses Wells Fargo of mortgage discrimination

The City of Oakland, California has sued Wells Fargo & Co, accusing the largest U.S. mortgage lender of steering minorities into high-cost mortgage loans that allegedly led to foreclosures, abandoned properties and neighborhood blight.

The complaint is a sign that U.S. municipalities are not relenting in a push to hold big banks liable for economic damages following the 2007 foreclosure crisis.

Read on.

Bank of America’s Moynihan wins fight to keep dual role

It’s been a bumpy ride, but Bank of America CEO Brian Moynihan gets to keep the chairman’s title.

BofA shareholders voted on Tuesday morning to allow him to retain his dual roles, putting their faith in a more powerful bank boss over an independent board even as the firm’s share performance lags its peers.

The resolution was one of the most closely watched decisions on Wall Street this year, and cements Moynihan’s place among other bank bigwigs with both titles, including JPMorgan Chase’s Jamie Dimon and Goldman Sachs’ Lloyd Blankfein.

The preliminary tally showed 63 percent of investors voted for the 55-year-old CEO to remain chairman, essentially reversing course after a 2009 shareholder vote that split the company’s two most powerful positions.

Read on.

Goldman Sachs CEO Lloyd Blankfein has cancer

Goldman Sachs website:

To my colleagues, our clients and our shareholders,

Late this summer after several weeks of not feeling well, I underwent a series of tests, which culminated in a biopsy last week. After the biopsy, I was told by my doctors that I have lymphoma. Fortunately, my form of lymphoma is highly curable and my doctors’ and my own expectation is that I will be cured.

My treatment plan will include chemotherapy over the next several months in New York. My doctors have advised me that during the treatment, I will be able to work substantially as normal, leading the firm. I will, however, reduce some of my previously planned travel during the treatment period.  I have discussed this approach with our Board of Directors and they are supportive.

There are many people who are dealing with cancer every day. I draw on their experiences as I begin my own.  I have a lot of energy and I’m anxious to begin the treatment.  I appreciate your support and good wishes.


WATCH: Hollywood’s A-list brings subprime to the silver screen

Look forward to this movie. Movie is coming out in December.


Starring Brad Pitt. Steven Carrell. Christian Bale. Ryan Gosling. The Big Short

True story: Guy walks into a strip bar and gets into a conversation with one of the ladies employed there.

“You’re not going to be able to refinance,” the Wall Street insider, played by Steve Carrell, tells her.

“On all of my loans?” she asks.

“What do you mean, ‘all your loans’?” Carrell’s character responds.

“I have 5 houses, and a condo,” the stripper informs her client.

Flashback to the 2008 timeframe where the subprime debacle was just taking hold.

Enter into that the cast of characters who bet against the big banks, and potentially, the American economy to get rich while the Empire crumbled.

Add in a couple of Hollywood A-listers and you get The Big Short movie, based on the book by Michael Lewis.


Boost to Tax-Recovery Suit by AIG Shareholder

WASHINGTON (CN) – AIG’s major Swiss shareholder received a boost from a federal judge in its fight to recover $38 million in taxes it paid the U.S. government.
The dispute stems from a statute that taxes a foreign corporation’s dividend income at a rate of 30 percent, by statute, if the income is deemed sufficiently connected to business activity in the United States.
Treaties that the United States maintains with various countries, including Switzerland, could lower this rate, but the secretary of the U.S. Treasury refused to grant such benefits to Swiss-domiciled Starr International Co., which was once AIG’s largest shareholder.
Starr filed its $38 million tax-refund suit – amounting to half of its withholdings on AIG dividends in 2007 – after the Internal Revenue Service denied its petition for discretionary benefits under the U.S.-Swiss tax treaty.

Read on.

Paralyzed veteran fighting foreclosure with Ctigroup after ex-wife took out $80k in loans

PROSPECT, Ky. (WDRB) — A paralyzed war veteran is fighting to keep his home in Prospect. A bank is trying to take it, but he says he’s not to blame.

Cleveland Graham, 74, enjoys sitting in the sun and listening to jazz music. But the past four years he’s been fighting a legal battle with Citigroup – a global bank trying to foreclose on his Prospect home.

“I was disappointed,” said Graham.

The Vietnam veteran, paralyzed from the waist down, says he gave his now ex-wife Delores power of attorney. She had control of his $10,000 a month check from Veterans Affairs.

“What can you say?” said Graham. “She was supposed to be my wife — caregiver.”

But in 2011, between stays in the nursing home and hospital, Graham was shocked when bills started showing up in his mailbox.

“Well the lights getting cut off, bill collectors calling me. I didn’t have no bills,” said Graham.

According to court documents, Delores took out nearly $80,000 in loans — money Graham says he never authorized. After defaulting on her payments, Citigroup came after the home she used as collateral — a house that Graham built in the 70s and later paid off in 1983.

“I didn’t know at first,” said Kay Rayburn, Graham’s caretaker for the past six years.

Read on.

Judicial Panel Finds Federal Judge Mark Fuller ‘Physically Abused’ Second Wife ‘At Least Eight Times’, Committed Perjury During Probe

Impeachment of now-resigned jurist recommended; Report contradicts prior, unreported claims made by Fuller’s attorney to The BRAD BLOG
Gov. Don Siegelman (D-AL), sentenced by corrupt, disgraced, abusive judge who failed to recuse, remains in federal prison as Fuller roams free…

“Impeachment of former United States District Judge Mark E. Fuller [Middle District, Alabama] may be warranted,” according to the Special Committee to the Judicial Council of the U.S. 11th Circuit Court.

While Fuller has already resigned from his lifetime appointment in the wake of his wife-beating scandal, the panel of federal judges found “the severity of the misconduct” by the former jurist so “reprehensible”, they believe impeachment may be appropriate nonetheless.

“In the event that the House of Representatives determines in its sound discretion that impeachment is not warranted, this certification may also serve as a public censure of Judge Fuller’s reprehensible conduct, which has no doubt brought disrepute to the Judiciary and cannot constitute the ‘good behavior’ required of a federal judge,” U.S. Judicial Conference Secretary James C. Duff wrote in his letter [PDF] to U.S. House Speaker John Boehner, accompanying the final report of the Special Committee.

As the panel of federal judges tasked by the 11th U.S. Circuit Court with investigating the 2014 arrest of Alabama’s U.S. District Court Judge Mark Fuller on spousal abuse charges proceeded over the past year, his Birmingham attorney, Barry Ragsdale, was adamant about his client’s innocence.

Fuller “never hit, punched, slapped or kicked,” his wife Kelli on the night he was hauled away by police from the Ritz-Carlton in Atlanta following her chilling call to 911, Ragsdale repeated over and over to any media outlet which would listen.

Judge Fuller made similar “repeated statements under oath before the Special Committee,” according to Duff. The Committee found those assertions to be “false.”

Read on.

Fed Should Hold Hearing on Goldman-GE Banking Deal, NCRC Says

  • Organization wants more info on Goldman Sachs’s CRA program
  • NCRC has opposed other bank deals that required hearings

The Federal Reserve should hold hearings on Goldman Sachs Group Inc.’s planned purchase of an online banking unit from General Electric Co. because of concern a deal won’t create a public benefit, the National Community Reinvestment Coalition told the central bank.

Goldman Sachs should release more information on its program to comply with the Community Reinvestment Act, the organization wrote in a letter to the Fed. The coalition also cited as concerns the Wall Street firm’s legal fines and potential conflicts of interest from the bank’s ties to the Fed.

NCRC has opposed other bank mergers including Capital One Financial Corp.’s 2012 purchase of ING Groep NV’s U.S. online bank, which had three regulatory hearings before winning approval. Goldman Sachs agreed last month to buy the unit from GE in order to access its $16 billion of deposits as an inexpensive and steady funding source.
Read on.

SEC settles with two ex-Fannie Mae executives, but not ex-CEO

The U.S. Securities and Exchange Commission has reached a settlement with two former Fannie Mae (>> Federal National Mortgage Assctn Fnni Me) executives in one of its biggest lawsuits tied to the financial crisis, but has yet to settle with former Chief Executive Daniel Mudd.

Former Chief Risk Officer Enrico Dallavecchia and former Executive Vice President Thomas Lund will pay $25,000 and $10,000 respectively to settle charges that they helped conceal Fannie Mae’s exposure to more than $100 billion of subprime and $341 billion of low-documentation “Alt-A” home loans.

Both denied wrongdoing and agreed to cooperate with the SEC in its case against Mudd, which could increase pressure on him to settle. The SEC said that case could last another year.

Read on.

Chase Mortgage CEO to CNBC: FHA loans same as “subprime lending”

“We’re not in the subprime lending business”

lol! Memo to Chase Mortgage CEO: You were in the subprime business.  Remember the 2008 financial crisis?? You brought Bear Stearns’ mortgage division EMC Mortgage and WAMU. You had no problem lending money to people who couldn’t afford a loan and providing liar loans.