Daily Archives: January 29, 2016

Elizabeth Warren: DOJ and SEC Are Lousy at Enforcement

Days before the Iowa caucus​es, Sen​. Elizabeth Warren tossed another grenade into the debate over whether Wall Street and ​ U.S. corporations have too much influence in Washington.

In a report released Friday and an op-ed in the New York Times NYT +3.04%, ​the Massachusetts Democrat ​bluntly argues that U.S. corporations get away with crimes that regular people don’t because of weak enforcement.

The Securities and Exchange Commission, she says, is “particularly feeble.” Accountability for corporate crimes is “shockingly weak.” Twenty recent examples, she says, show “prosecutorial timidity” in dealing with “well-financed corporate defendants.”

She points to recent cases in which no individuals were prosecuted​. Among them:

  • Standard & Poor’s agreement last year to pay $1.4 billion to the Justice Department and several states to resolve claims that it issued inflated ratings on mortgage bonds that contributed to the financial crisis
  • Billion​-dollar criminal settlements​ that five top banks entered into last year to resolve charges that their traders worked to manipulate foreign exchange or other benchmark rates
  • General Motors’ $900 million​ agreement in September to resolve criminal charges in connection with​ faulty ignition switches linked to 124 deaths.

Read on.

Veteran, wife sue Wells Fargo in foreclosure fight

MORGANTOWN — A wounded veteran and his wife are seeking damages from Wells Fargo over what they claim was an aggressive pursuit of foreclosure by the bank.

Donald R. Manning and Kimberly D. Manning filed a lawsuit on Jan. 8 in Monongalia Circuit Court against Wells Fargo Bank NA, doing business as Wells Fargo Home Mortgage, claiming the bank breached their contract, failed to provide pertinent details of the plaintiffs’ account, refused and returned payments made by plaintiffs, and unfairly tried to collect on payments.

The plaintiffs allege that they entered into a loan agreement on or about June 23, 2005, with an initial principal balance of $94,400 for the property and land at 341 Blacks Run Road in the unincorporated West Virginia community of Core. The note and deed of trust for the subject loan allegedly contains a contractual guaranty by the U.S. Department of Veterans Affair which requires that defendant Well Fargo comply with regulations and laws governing VA-guaranteed loans.

Read on.

10 hilarious cartoons about the stock market panic

Marketwatch:

1. My favorite cartoon this week sums up this problem nicely:

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8. Here’s insight into the psychology of stock market winners and losers:

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