Daily Archives: May 27, 2016

Goldman Sachs subsidiary just bought more non-performing loans from Fannie Mae

Fannie also announces sale of smaller NPL pool to non-profit

For the third time in 2016, MTGLQ Investors, L.P., a “significant subsidiary” of Goldman Sachs is the winning bidder for a pool of non-performing loans fromFannie Mae, pushing the amount of loans sold to MTGLQ Investors over $2 billion in 2016.

According to the Securities and Exchange Commission, Goldman Sachs owns, directly or indirectly, at least 99% of the voting securities of MTGLQ Investors, L.P.

MTGLQ Investors bought its first pool of NPLs from Fannie Mae in February. In that sale, MTGLQ Investors was the winning bidder for two pools of NPLs representing 2,068 loans that carry an unpaid principal balance of $418,414,683.

Read on.

Ex-Barclays Trader Disrupts Libor Testimony Shouting ‘No

A former Barclays Plc trader on trial for rigging Libor was admonished by the judge for an outburst that interrupted a co-defendant being questioned by a prosecutor.

Ryan Reich shouted “no, no, no, no,” from his seat on Friday after the prosecutor asked fellow ex-Barclays trader Alex Pabon on the stand if the Libor rate affected swaps valuations. After the interruption, Reich’s lawyer told him to be quiet and Judge Anthony Leonard said “interruptions should not take place.” Pabon answered that, yes, Libor did affect swaps valuations.

Reich and Pabon are on trial with former colleagues Stylianos Contogoulas, Jay Merchant and Jonathan Mathew for conspiring from 2005 through 2007 to fix the London interbank offered rate, or Libor, a benchmark tied to trillions of dollars in securities and loans. Another ex-trader, Peter Johnson, has pleaded guilty to the charge.

Read on.

Mossack Fonseca’s U.S. operations cut back after Nevada penalty

Panama law firm’s U.S. arm resigns from Nevada companies and loses its partner in Wyoming amid continued global scrutiny

Panamanian law firm Mossack Fonseca’s local affiliate in Nevada has resigned from more than 1,000 companies and paid a penalty to the state, while the law firm has also announced the closure of three of its international offices as the fallout from the Panama Papers investigation continues.

Nevada’s Secretary of State Barbara Cegavske announced in a statement on Monday that M.F. Corporate Services (Nevada), Mossack Fonseca’s local affiliate, had paid a $10,000 fine for failing to keep the required records and contact details for its clients. The penalty is the maximum allowed under the state’s laws.

Cegavske’s statement also revealed that the firm had abruptly resigned as registered agent from the 1,024 companies it administered in the state, a move that one expert told ICIJ partner McClatchy was “absolutely unusual.”

Read on.

Hillary Clinton Won’t Say How Much Goldman Sachs CEO Invested With Her Son-in-Law

 

By Lee Fang

The Intercept:

WHEN HILLARY CLINTON’S son-in-law sought funding for his new hedge fund in 2011, he found financial backing from one of the biggest names on Wall Street: Goldman Sachs chief executive Lloyd Blankfein.

The fund, called Eaglevale Partners, was founded by Chelsea Clinton’s husband, Marc Mezvinsky, and two of his partners. Blankfein not only personally invested in the fund, but allowed his association with it to be used in the fund’s marketing.

The investment did not turn out to be savvy business decision. Earlier this month, Mezvinsky was forced to shutter one of the investment vehicles he launched under Eaglevale, called Eaglevale Hellenic Opportunity, after losing 90 percent of its money betting on the Greek recovery. The flagship Eaglevale fund has also lost money, according to the New York Times.

There has been minimal reporting on the Blankfein investment in Eaglevale Partners, which is a private fund that faces few disclosure requirements. At a campaign rally in downtown San Francisco on Thursday, I attempted to ask Hillary Clinton if she knew the amount that Blankfein invested in her son-in-law’s fund.

After repeated attempts on the rope line, I asked the Clinton campaign traveling press secretary Nick Merrill, who said, “I don’t know, has it been reported?” and said he would get in touch with me over email. I sent the question but have not heard a response back.

Wells Fargo Sponsorship of Black Lives Matter Panel Draws Scorn

How quickly we forget. History repeats itself. Wells Fargo still using the same tactics to pander to minorities especially since the bank has announced that they are promoting 3% down on mortgage for customers with fico score of 620. Sounds familiar. Remember a 2015 article that I posted last year that Oakland City Attorney in California accused the bank of steering blacks and latinos toward bad loans.

USBC

USBC pamphlet

Wells Fargo’s sordid practice of steering minorities into exploitative mortgages burst into public view after the housing crash in 2008. But to a black business group the bank has partnered with — by donating nearly half a million dollars — it’s ancient history.

The U.S. Black Chambers (USBC), an organization dedicated to growing black business, has been collaborating on programs with Wells Fargo since 2014.

But a Wells Fargo-sponsored USBC luncheon held last week was a bridge too far for some observers.

The lunch discussion was titled: “From Black Panthers to Black Lives Matter, the Movement Continues.” One panelist was DeRay Mckesson, a former candidate for mayor in Baltimore and a high-profile Black Lives Matter activist. The Wells Fargo branding was prominent.

The event drew scorn from people incensed that black activism would be linked with Wells Fargo. Dwayne David Paul, a minister at St. Peter’s University in New Jersey, tweeted: “Liberal reformist politics in a nutshell. ‘Black liberation brought to you by orgs that prey upon Black folk.’”

Indiana-based writer Fredrik DeBoer drew attention to the event in a post on Facebook, writing, “this is why I drink.”

Mckesson, who spoke on the panel with Ron Busby, the president and CEO of U.S. Black Chambers, tweeted in response: “I didn’t make/approve this graphic & Wells Fargo didn’t sponsor/pay me. You want a conspiracy here & there is none.”

But the event’s organizers made no such effort to distance themselves from Wells Fargo. In interviews with The Intercept, two board members for the U.S. Black Chambers offered Wells Fargo, without prompting, as an example of a beneficial corporate partner.

Read on.

‘Face of the housing crisis’ exonerated by Appeals Court Countrywide Hustle ruling

Ugh!

Former Countrywide exec Rebecca Mairone cleared

Lost in the shuffle of the United States Court of Appeals for the Second Circuit’sdecision to toss the $1.27 billion penalty against Bank of America in a fraud case over defective mortgages sold by Countrywide was the fact that the court also overturned the fraud charges and voided the $1 million penalty against Rebecca Mairone, who the New York Times once referred to as the “face of the housing crisis.”

Mairone, who now goes by her maiden name, Rebecca Steele, is a former executive at Countrywide and one of the few individuals whose actions during the housing crisis landed them in legal trouble – until earlier this week, that is.

Read on.

Disney CEO to Sanders: Our company has created 18,000 in the U.S. in the last five years. How many jobs have you created?

Bob Iger did not take an attack on Disney from Bernie Sanders lying down.

After the Democratic presidential candidate spent Tuesday in Anaheim, Calif., blasting Disney for not paying workers at its theme parks — including nearby Disneyland — enough money, the CEO responded in a private Facebook post.

“To Bernie Sanders: We created 11,000 new jobs at Disneyland in the past decade, and our company has created 18,000 in the U.S. in the last five years. How many jobs have you created? What have you contributed to the U.S. economy?” Iger wrote in his post.

Sanders spent a decent amount of time criticizing Disney while speaking at the Anaheim Convention Center, and his remarks were a topic of conversation on conservative talk radio on Wednesday.

“Anybody make a living wage working for Disney?” Sanders asked supporters.

He continued his attack last night.

Disney, he said, “pays its workers so low that many are forced to live in motels, because they can’t afford a decent place to live. Meanwhile, Disney made a record-breaking profit of nearly $3 billion last quarter.”

Sanders also took Iger — though not by name — to task for his large salary. In the most recent fiscal year, Iger earned $44.9 million, down from $46.5 million a year earlier. Sanders also accused Disney of sending work overseas and “exploiting people in China.”

Read on.

And Sanders stated in LA Times that Disney products are made overseas:

Sanders went on to attack Disney, which made a record $2.9 billion in the first quarter of this year, for sending jobs overseas, noting that some Disney products are made in places like China.

On a side note: Disney is found in the ICIJ offshore leaks database:

Incorporation Jurisdiction Linked To Data From
DISNEY KINGDOM LIMITED 10-OCT-2002 British Virgin Islands British Virgin Islands Offshore Leaks
DISNEY GARDEN LIMITED 07-OCT-2002 British Virgin Islands British Virgin Islands Offshore Leaks
DISNEY NET LIMITED 03-MAY-2001 British Virgin Islands British Virgin Islands Offshore Leaks