Daily Archives: October 18, 2015

New book dives into Wall Street’s shady dealings

Wall Street often puts the individual investor to sleep, then picks his or her pockets, say the authors of a new book.

And the blockbuster charges don’t end there.

In one controversial section, the book claims that even widely revered Fidelity Investments charges investors too much.

“Financial firms and money managers have intentionally made investing overly complicated and then convinced us that we cannot do it on our own,” says Bobby Monks, the primary author of “Uninvested: How Wall Street Hijacks Your Money & How to Fight Back.”

“They have elbowed their way into every corner of investing, cultivating a financial intermediary complex that disconnects us from our capital and charges us handsomely for it,” the author goes on to say.

Read on.

Billboards urge Wall Street employees to report financial crimes

The NYPD asks if you see something, say something. And now a band of Wall Street gadflies are similarly seeking help in sniffing out weapons of financial destruction.

The financial industry requests hit New York like a thunderbolt last week, announced by in-your-face billboards across downtown Manhattan advertising an encrypted new way bank employees can electronically and anonymously disclose sensitive statements and documents on suspected workplace fraud.

The aim is to help level the playing field on Wall Street between get-rich-quick shady operators and the often-innocent workers, according to a grassroots coalition of workers. Behind this campaign urging bank employees to blow the whistle in an intensified clampdown on suspected corruption are advocates and lawyers.

Read on.

Some Bankers Don’t Buy What Hillary Clinton Is Selling

Hillary Clinton is campaigning as a president who will be tough on Wall Street. But the leader of one powerful bank lobby isn’t buying it.

Camden Fine, the head of the Independent Community Bankers of America, said Clinton’s stance on regulating large Wall Street banks is pure politicking.

“She’s doing that because of Bernie. If Hillary is elected president of the United States, it’s gonna be $500 billion, and that’s fine,” Fine said in an interview with Morning Consult, referring to a policy proposed by Senate Republicans to loosen Dodd-Frank regulations. “She’s gonna all of a sudden become Mrs. Wall Street if she’s elected. So it’s all Bernie theatrics right now. She’s a Clinton, for God’s sake. What do you expect?”

Read on.

California Teachers Have Been Financing Evictions of Homeowners

The teachers’ pension fund invested hundreds of millions of dollars into a company that has foreclosed on and evicted numerous homeowners, including dozens in the East Bay.

California’s pension fund for public school teachers invested hundreds of millions of dollars in a company that has been criticized for foreclosing on property owners and kicking them out of their homes, including dozens in the East Bay, records and interviews show. The company, Caliber Home Loans, is owned by the private equity firm Lone Star Funds and was featured in a New York Times story last week because of its controversial practices.

In an email to the Express, officials for the California State Teachers Retirement System (CalSTRS) confirmed that the pension fund invested $660 million in two different funds managed by Lone Star, and that the company has used the money to buy up distressed home loans, foreclose on the homeowners, and resell the homes. CalSTRS spokesperson Ricardo Duran said that Lonestar officials have told pension fund managers that the investment has resulted in a lower rate of foreclosure than the industry standard. But according to Duran, CalSTRS has not been provided with data from Lone Star to substantiate these claims.

Read on.

Ex-FDIC Auditor Files Brief

Interesting…

Eric Mains, former FDIC Auditor who quit to defend his home and go after the banks for the “culpable” actions has filed a brief worth reading. Anyone following this blog should read it carefully.

The banks use the Rooker Feldman doctrine, res judicata, collateral estoppel and a variety of other devices to convince judges that any action for damages or other relief is barred if a judgment has been entered against the borrower. It is a cloud of legal fantasy that often obscures the vision of the court.

Among the points that are well made is that if the relief sought by the homeowner would not set aside or disturb the judgment that was entered, and the homeowner is complaining of external culpable actions that led the to the entry of the judgment, then the homeowner has in fact raised issues that can be heard in Federal or State Court or in Bankruptcy Court. It is simple logic based upon long-standing law.

see RESPONSE Brief Chase and Citi-Highlighted

Source: Livinglies website

JPMorgan Said to Have Fired 10 Analysts for Cheating on Tests

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Goldman Sachs Sacks 20 Analysts for Cheating on Exams

JPMorgan Chase & Co., the biggest U.S. bank, dismissed 10 analysts last month for cheating on internal training exams, a person briefed on the matter said Friday.

Some of the employees were based in New York and some in Latin America, said the person, who asked not to be identified because the moves aren’t public. The analysts are junior bankers, not research analysts who recommend stocks to investors.

Read on.