Daily Archives: March 2, 2016

Former Fannie Mae CEO to face SEC charges for subprime mortgages

A judge ruled that former Fannie Mae CEO Daniel Mudd must face a civil trial overSecurities and Exchange Commission charges that he misled investors about the government-sponsored enterprises’ exposure to subprime loans prior to the financial crisis, an article in Reuters said.

According to the article, U.S. District Judge Paul Crotty in Manhattan on Monday ruled the SEC could take Mudd to trial over claims he concealed $441 billion of risky loans before Fannie Mae’s September 2008 government seizure.

From Nate Raymond’s article in Reuters:

Crotty ruled that a jury could find that Fannie Mae’s disclosures about its exposure to subprime loans and Alt-A loans, a category between prime and subprime, misleadingly excluded billions of dollars worth of mortgages.

Crotty said the SEC had also put forward evidence from which a jury could conclude Mudd knew or should have known that public statements he made about Fannie Mae’s exposure to risky loans, as well as the company’s disclosures, were false or misleading.

“From these facts, a rational jury could infer that Mudd acted with intent or recklessness,” Crotty wrote.

Read on.

Chesapeake Founder Aubrey McClendon Dies In Car Crash One Day After Federal Indictment (updated)


Just one day after the DOJ unveiled its had indicted Chesapeake Founder and former CEO Aubrey McClendon on federal charges of conspiring to rig bids for oil and natural gas leases, moments ago the Oklahoma Police announced that he was found dead in a car accident, when while traveling in a 2013 Chevy Tahoe at a high rate of speed he slammed into an embankment in northeast Oklahoma City The car burst into flames before responders could pull McClendon’s body from the vehicle, Balderrama said.

“He pretty much drove straight into the wall,” Balderrama said, according to KFOR News Channel 4 in Oklahoma City. “The information out there at the scene is that he went left of center, went through a grassy area right before colliding into the embankment.There was plenty of opportunity for him to correct and get back on the roadway, and that didn’t occur.”


The police said that it responded at 9:12 am to a fatality accident involving McClendon, and that he was traveling south on Midwest Blvd., between Memorial and 122nd St..

McClendon crashed into an embankment while traveling at a “high rate of speed” in Oklahoma City on Wednesday morning, said Capt. Paco Balderrama of the Oklahoma City Police Department. McClendon’s vehicle was engulfed in flame, he said.

“He pretty much drove straight into the wall,” Balderrama said.

The scene of the crash:


Brent Loper from “The Foreclosure Story”

A new movie will be filming soon on the Gulf Coast.  It’s called “The Foreclosure Story” and will feature local actor Brent Loper in the lead role.

“The Foreclosure Story” is based on true events. It’s an action-drama that follows the hopes of a struggling, young father and entrepreneur, Eric Herrholz.  Eric’s
uncanny knack in business garners the attention of the Mob, which at first doesn’t seem such a bad thing. The money is rolling in and life is good. But the American
Dream takes a dark turn. With the lives of his family and all he has worked for at stake, Eric is pushed to his limits to keep ahead of the jailer and out of the grave.

Click on the video link to hear Brent talk about the upcoming film.

Also, the movie is still casting. For more information visit:


Read more: http://www.fox10tv.com/story/31366440/brent-loper-from-the-foreclosure-story#ixzz41mUFlAhu

Here is the video. Click here.

Larry Fink and His BlackRock Team Poised to Take Over Hillary Clinton’s Treasury Department

Time will tell…

Goldman Sachs paid Hillary Clinton $675,000 for three speeches, but an even bigger Wall Street player stands ready to mold and enact her economic and financial policy if she becomes president.

BlackRock is far from a household name but it is the largest asset management firm in the world, controlling $4.6 trillion in investor funds — about a trillion dollars more than the annual federal budget, and five times the assets of Goldman Sachs. And Larry Fink, BlackRock’s CEO, has assembled a veritable shadow government full of former Treasury Department officials at his company.

Fink has made clear his desire to become Treasury Secretary someday. The Obama Administration had him on the short list to replace Timothy Geithner. When that didn’t materialize, he pulled several members of prior Treasury Departments into high-level positions at the firm, which may improve the prospects of realizing his dream in a future Clinton Administration.

And his priorities appear to be so in sync with Clinton’s that it’s not entirely clear who shares whose agenda.

Clinton, for her part, has refused to rule out a Treasury Secretary drawn from Wall Street.

Fink’s ready-made team available for a move from Wall Street to Washington. includes:

  • Christopher Meade, former general counsel at the Treasury Department, who now serves in a similar capacity at BlackRock. Meade spent 2010 to 2015 at Treasury, with the last three years as general counsel.
  • Katheryn Rosen, a managing director at BlackRock, who cut her teeth in government as a senior policy advisor to Barney Frank on the House Financial Services Committee, helping to write Dodd-Frank. Frank is anadvisor to the Clinton campaign. Rosen went from Frank’s office to a deputy assistant secretary position at Treasury in February 2011, working to build the Financial Stability Oversight Council, the Treasury-led super-regulator monitoring systemic risk. Prior to government work, Rosen spent fourteen years as a managing director with JPMorgan Chase.
  • Kendrick Wilson, a vice chairman at BlackRock since 2010 who has ties to Goldman Sachs, Lazard, and the Treasury Department. He advised Treasury while they managed the financial crisis and its fallout in 2008 and 2009, before coming to BlackRock. At Treasury, Wilson brought his experience advising financial institutions to carry out hastily arranged crisis-era deals, like the merger of Bank of America and failed subprime lender Countrywide.
  • Michael Pyle, who was a senior adviser to Lael Brainard when she served as undersecretary to the Treasury for international affairs; he also worked at the White House for the National Economic Council and the Office of Management and Budget. He worked as a director at BlackRockuntil at least October 2015, though he apparently is now an economic policy advisor to the Clinton campaign.

Read on.

How The U.S. Government And HSBC Teamed Up To Hide The Truth From A Pennsylvania Couple

Release the hounds!

Submitted by Mike Krieger via Liberty Blitzkrieg blog,


Although the Department of Justice and HSBC thought the money laundering case was settled ancient history, a determined chemist from Pennsylvania is throwing a wrench into their plans and it could have major implications.

The Wall Street Journal reports:

WEST CHESTER, Pa.—When Dean Moore ran into roadblocks with a request for mortgage relief, he did what many people do: He sat down at his kitchen table to bang out an angry letter.


The letter has thrust Mr. Moore, a chemist, and his wife, Ann Marie Fletcher-Moore, a part-time bookstore manager, into a high-stakes battle over whether HSBC Holdings PLC must release a secret report on its compliance with a $1.9 billion money-laundering settlement.

A “secret” report. You’ve got to be kidding me.

The disclosure would be the first ever for this type of case and would shine a light on an increasingly common practice for banks accused of breaking the law. Instead of being prosecuted, banks typically enter into settlements under which they often agree to be overseen by monitors whose detailed judgments are kept secret. Judge Gleeson’s order has the potential to dial back that confidentiality, opening a new channel of information that prosecutors say could threaten the viability of such settlements in future cases.

If you don’t get by now that America is a banana republic, there’s little hope for you.

HSBC and Justice Department prosecutors have opposed the release, saying it wouldn’t do much to help Mr. Moore with his mortgage predicament. Judge Gleeson, in his order to unseal the report, said that was irrelevant.

Big banks and the U.S. government are simply 100% in bed together. Constantly scheming to prevent citizens from learning the truth.

The bank is appealing the ruling, but already it may be having an impact. HSBC disclosed last week that the January report by independent monitor Michael Cherkasky found instances of potential financial crime and had “significant concerns” about the bank’s pace of progress in complying with the money-laundering settlement.

A legitimate government that cared about the people would want the public to know this, but not the U.S. government.

The Moores say the experience has been surreal. The couple lives in this Philadelphia suburb with their four children, two dogs and a 15-year-old rabbit and had never spent much time in court other than for jury duty. They have nevertheless held their own against a phalanx of lawyers from the British bank and the Justice Department. A recent hearing in a Brooklyn federal court “was like ‘Law and Order,’” said Mrs. Fletcher-Moore, who is 50 years old.

HSBC admitted in its 2012 settlement that it failed to catch at least $881 million in drug-trafficking proceeds laundered through its U.S. bank and that its staff stripped data from transactions with Iran, Libya and Sudan to evade U.S. sanctions.


The mortgage was administered by HSBC, and the Moores say they wrote to the bank starting in 2008 asking it to temporarily lower the 7% interest rate. They said the lender appeared receptive, only for its representatives to misplace documents needed to complete their application for a loan modification several times.


Frustrated, the Moores researched the bank online last year and stumbled upon news of the money-laundering settlement and the monitor’s secret report. The Moores say they believe the report details faulty internal controls like those they encountered when trying to modify their loan.


If his ruling stands, it would be “the first time we get to see what happens after a bank settles a prosecution,” said Brandon Garrett, a professor at University of Virginia’s law school who has studied the monitor system.

Which is exactly what the U.S. government doesn’t want people to see.

HSBC and the Justice Department are still fighting to keep the report private and have appealed Judge Gleeson’s ruling to the Second Circuit Court of Appeals. An appeals court ruling could be months away. “I feel like a very small boat in a very large ocean,” Mr. Moore wrote at one point, in a letter responding to some of their arguments.

Chesapeake Founder Aubrey McClendon Dies In Car Crash One Day After Federal Indictment


Just one day after the DOJ unveiled its had indicted Chesapeake Founder and former CEO Aubrey McClendon on federal charges of conspiring to rig bids for oil and natural gas leases, moments ago the Oklahoma Police announced that he was found ead following a car accident, when while traveling at a high rate of speed he crashed and was engulfed in flames.


UK Regulators Ban Ex-Deutsche Trader Who Rigged Libor

Law360, New York (March 2, 2016, 2:10 PM ET) — The U.K.’s Financial Conduct Authority on Wednesday said it banned a former Deutsche Bank AG currency trader who in October pled guilty in New York federal court to charges relating to an eight-year scheme to manipulate the London Interbank Offered Rate.

U.K. native Michael R. Curtler pled guilty on Oct. 8 to one count of conspiracy to commit wire fraud and bank fraud after federal prosecutors said that he reported false information used in the calculation of the benchmark rate.

“Mr. Curtler has admitted engaging in dishonest…

Source: Law360

Ocwen Is Target of SEC Probe Over REO Fees

Correction: An earlier version of this article incorrectly stated that Ocwen had disclosed two new SEC investigations. Only one was new; the other had previously been disclosed.

National Mortgage News:

According to the 10-K, on Feb. 11 of this year the SEC sent a letter informing Ocwen that the agency was conducting an investigation of fees and expenses charged regarding liquidated loans and real-estate-owned properties held in nonagency residential mortgage-backed securities trusts.

As previously disclosed, nearly a year earlier the SEC sent a letter to Ocwen stating it was conducting an investigation into the use of collection agents by mortgage servicers. Ocwen said it believes that letter “was also sent to other companies in the industry.”

An SEC spokesman, Ryan White, declined to comment on either investigation.

During Ocwen’s conference call Monday, when asked about the fees and expenses investigation, President and Chief Executive Ronald Faris said that he could not comment but that Ocwen feels confident that the fees that are part of the servicing business that are either assessed to borrowers or passed on to RMBS investors are monitored closely by master servicers and trustees.

Why Bankers Should Fear Donald Trump

WASHINGTON — In almost any other election cycle, bankers would be celebrating the fact that a Republican candidate has emerged so far in front of the pack and would quickly fall in line behind him.

But New York real estate mogul Donald Trump’s Super Tuesday victories are cause for concern, not celebration, in the industry. His rhetoric, record and temperament make him a uniquely ill-suited Republican candidate to earn banker support, and those who do back the outspoken businessman are likely to soon regret it. Here’s why:

1. Trump is not committed to regulatory relief, Dodd-Frank repeal — or any other bank priority.

While most of the Republican candidates in the race have avoided discussing Wall Street reform or the financial crisis, almost every one at some point endorsed a repeal of the Dodd-Frank Act and pledged regulatory relief for community banks. (Sen. Marco Rubio, R-Fla., was the first, doing so during the initial Republican debate in August.) Trump, in contrast, has said almost nothing about Dodd-Frank beyond describing it as a “terrible law.”

Read on.

JPMorgan Chase agrees to $905,000 settlement with Indiana officials

JPMorgan Chase has agreed to pay $905,000 in a settlement with Indiana officials over losses from mortgage-backed securities purchased in 2006, just before the controversial investment vehicle contributed to a national financial meltdown.

Indiana Secretary of State Connie Lawson said Tuesday that the settlement was the result of an investigation into the sale of residential-mortgage backed securities in Indiana. The Indiana State Teachers’ Retirement Fund purchased such investments issued by the New York-based bank in 2006.

The Secretary of State’s Office has alleged that JPMorgan Chase did not disclose critical information about the quality of the collateral loans underpinning the securities to investors who purchased them.

Read on.