The anniversary of the Consumer Financial Protection Bureau’s Know Before You Owe rule isn’t the only historical mortgage moment that happened on Oct. 3. Today also marks the eighth anniversary of the Emergency Economic Stabilization Act of 2008 becoming law, putting the Troubled Asset Relief Program (TARP) into effect.
In light of the program’s anniversary, Rob Runyan is a spokesperson at the U.S. Treasury Department, penned a quick blog on the success of TARP since it was implemented.
Runyon explained that to date, TARP dispersed a total of $433.7 billion, and as of Aug. 31, cumulative collections under TARP, together with Treasury’s additional proceeds from the sale of non-TARP shares of AIG, total $442.1 billion, exceeding disbursements by $8.4 billion.
The program, as Runyon stated, was once feared to possibly cause taxpayers to lose hundreds of billions of dollars, but it instead generated a positive return.
Runyon spotlighted three clear takeaways from TARP:
- TARP was instrumental in turning a collapsing economy around
- Treasury disbursed less in TARP support than was initially anticipated and even generated a positive return for taxpayers
- TARP housing programs helped millions of Americans get back on their feet after the greatest economic downturn since the Great Depression and will continue to help homeowners in the years to come.
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SACRAMENTO – ‘California stands united with Illinois State Treasurer Michael Frerichs’ decision to suspend investment activity with Wells Fargo Bank.
‘From the savings and loan scandal of the 1980s to the subprime lending abuses which recently brought down the world economy, we have suffered the incredible power banks hold over every day Americans. Wells Fargo is just the most recent example of the craven abuses that can be perpetrated when a financial institution comes to serve itself rather than its customers.
‘But banks are not so powerful as to be untouchable. Until Congress and bank regulators pass sensible reforms to curtail the further fleecing of consumers, bank customers – like the states of California and Illinois – will have to fill the leadership void. And, the best way to do so is to hit Wells Fargo where it hurts – in the pocketbook.
Oh cry me a river, Jamie!
JPMorgan Chase’s chief executive pushed back at the Democratic presidential candidate after she criticized the U.S. banking culture amid Wells Fargo’s fake account scandal. “It is outrageous that eight years after a cowboy culture on Wall Street wrecked our economy we are still seeing powerful bankers playing fast and loose with the law,” Clinton said on Monday.
In response, Dimon said: “When people blanket a whole class of people…that’s just unfair.”
Massachusetts’ top securities regulator accused Morgan Stanley of paying bonuses to brokers to encourage them to push loans on their wealth-management clients.
A complaint filed Monday by the secretary of the commonwealth alleges that Morgan Stanley brokers in Massachusetts and Rhode Island promoted securities-backed loans, in which clients borrow against the value of their investment portfolios, to win an internal “sales contest” that rewarded them financially.
The complaint says the program tripled new loan originations and created a conflict of interest between the brokers and their clients. It alleges that Morgan Stanley played down the risks, including that the firm could liquidate their investments to repay the loans.
Here is the complaint. Click here.
Last Thursday, September 22, 2016, the body of Ann Korkki, a Senior Administrative Assistant in the Wealth Management division of JPMorgan Chase in Denver, Colorado was found with the body of her sister, Robin Korkki, inside their luxury vacation villa at the Maia Resort on Seychelles, an island in the Indian Ocean off the East African coast. Ann Korkki was 37; her sister Robin was 42.
According to the local Seychelles newspaper, there was no sign of violence on the bodies of the women who were on a one week vacation at the resort. The mother and brother of the sisters are currently in Seychelles “pressing U.S. and local officials for details” and making arrangements to bring the sisters back to the U.S. according to a news report in the Minneapolis Star Tribune, which covered the story because the sisters had attended high school in the area.
This latest unusual death of a JPMorgan Chase employee adds to a stunning roster of bizarre deaths since 2014 – a period which has also seen three felony counts leveled against the firm by the U.S. Justice Department and billions of dollars in fines for wide-ranging charges of wrongdoing.
Law360, New York (October 3, 2016, 6:10 PM EDT) — A Royal Bank of Scotland Group PLC unit will pay $120 million to the state of Connecticut to end a four-year investigation into the bank’s underwriting of residential mortgage-backed securities in the years before the 2008 financial crisis, the state’s attorney general announced Monday.
In what is the largest settlement sum ever paid to Connecticut, RBS Securities Inc. agreed to pay $250,000 to the state Department of Banking and the rest into the state’s general fund, Attorney General George Jepsen and DOB Commissioner Jorge Perez said.
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View the Notice of Violation.
New York Attorney General website:
NEW YORK – On Friday, September 30, the Office of New York State Attorney General Eric Schneiderman issued a Notice of Violation to the Donald J. Trump Foundation (“Trump Foundation”) and directed the entity to cease and desist from soliciting contributions in New York.
The notice states that the Trump Foundation “is in violation of section 172 of Article 7-A New York’s Executive Law, which requires charitable organizations that solicit contributions in New York State to register with the Charities Bureau and to provide annual financial reports and annual audited financial statements.” Despite failing to register pursuant to Article 7-A, the Trump Foundation solicited contributions in New York State earlier this year, in violation of New York law.
Republican presidential candidate Donald Trump’s method to allegedly and legally avoid federal income taxes for up to 18 years after suffering a $916 million business loss in 1995 is based on the same law that prevented many housing companies from going out of business less than a decade ago.
In fact, back when this was going on in 2009 and 2010, real estate lawyer Chris Hunter, of the San Francisco Bay area law firm Morgan Miller Blair, told HousingWire the law is most applicable to homebuilders.
When President Barack Obama signed the “Worker, Homeownership and Business Assistance Act of 2009” into law in November 2009, extending the first-time homebuyer tax credit as well as certain jobless benefits, he also extended the credit to repeat buyers and allowed corporations to recoup certain losses through back taxes.
Known as net operating loss (NOL) carrybacks, the law lets a company that made money and paid taxes on those profits in a past year obtain a tax refund if the company loses money in another year.