Category Archives: Uncategorized

Wells Fargo Hit by Surprise Charge From Pre-Crisis Mortgages

  • Bank takes $1 billion charge for pre-crisis mortgage probe
  • Surprise charge adds to headaches from fake accounts episode

Nearly a decade after the financial crisis, Wells Fargo & Co. is getting stung by bad behavior in the housing bubble.

The company took a surprise $1 billion charge in the quarter for previously disclosed regulatory investigations into its pre-crisis mortgage activity, the third-largest U.S. lender said Friday in a statement. The expense pushed total costs to a record $14.4 billion.

Read on.

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VP Mike Pence tweets same picture from Colts game that he tweeted in 2014

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Looking forward to cheering for our @Colts & honoring the great career of #18 Peyton Manning at @LucasOilStadium today. Go Colts! pic.twitter.com/C3aCYUNpqG

— Vice President Pence (@VP) October 8, 2017

 

 

 

Then, he left the game shortly after the national anthem. Things that make you go hmmm..

 

Harvey Weinstein Fired by Board Citing Harassment Allegations

Bloomberg:

Film producer Weinstein Co.’s board fired co-founder Harvey Weinstein, who stepped away from the company last week after allegations of sexual harassment became public.

“In light of new information about misconduct by Harvey Weinstein that has emerged in the past few days” the board of directors has informed “Weinstein that his employment is terminated, effective immediately,” the company said in an emailed statement Sunday.

And this, Harvey Weinstein only own 23% of the company:

 

The board has the right to suspend or permanently banish Weinstein, who holds about a 23% equity stake in the company, with his brother and co-chief Bob Weinstein holding the same amount. The board controls the majority, and things haven’t exactly been smooth between them. Weinstein’s good friend, James Dolan, was a board member but left that post in 2016.

Wells Fargo wrongly hit homebuyers with fees to lock in mortgage rates

Wells Fargo is in trouble once again — this time for fees charged to customers trying to nail down a mortgage.

The scandal-ridden bank said on Wednesday that some mortgage borrowers were inappropriately charged for missing a deadline to lock in promised interest rates, even though the delays were Wells Fargo’s fault.

Wells Fargo said it will reach out to all 110,000 customers who were charged “mortgage rate lock extension fees” between September 2013 and this February. The bank promised to refund customers “who believe they shouldn’t have paid those fees.”

Read on.

Wells Fargo accused of lying to Congress about auto insurance scandal

Wells Fargo was just accused of lying to Congress last year by failing to disclose a brewing scandal in the bank’s auto insurance business.

The startling allegation came from Senator Sherrod Brown on Tuesday during a Senate hearing on Wells Fargo’s various scandals.

“The company pure and simple lied to this committee — and lied to the public,” said Brown, the ranking Democrat on the Senate Banking Committee.

In July, Wells Fargo admitted that it forced auto insurance on as many as 570,000 borrowers who didn’t need it. About 20,000 of those customers had their cars wrongfully repossessed in part due to these unwanted insurance charges.

Read on.

Weinstein lawyer paid Manhattan D.A. $10,000 days after he waived assault charges against producer

The plot thickens…

Hollywood producer Harvey Weinstein’s lawyer delivered $10,000 to Manhattan District Attorney Cyrus Vance, Jr. in 2015, in the months after Vance’s office decided not to prosecute Weinstein over sexual assault allegations, according to an International Business Times review of campaign finance documents. That contribution from attorney David Boies — who previously headlined a fundraiser for Vance — was a fraction of the more than $182,000 that Boies, his son and his law partners have delivered to the Democrat during his political career.

Boies has done legal work for Weinstein since at least 2005, and his website at his law firm says his clients include The Weinstein Company.

“David Boies did not represent Harvey Weinstein in 2015 during the criminal investigation,” Joan Vollero, communications director for Vance, told IBT in an email when asked about Boies’ campaign contributions.

Read on.

JPMorgan paid penalties in its mortgage settlements by forgiving loans it already sold

By David Dayen

You know the old joke: How do you make a killing on Wall Street and never risk a loss? Easy—use other people’s money. Jamie Dimon and his underlings at JPMorgan Chase have perfected this dark art at America’s largest bank, which boasts a balance sheet one-eighth the size of the entire US economy.

After JPMorgan’s deceitful activities in the housing market helped trigger the 2008 financial crash that cost millions of Americans their jobs, homes, and life savings, punishment was in order. Among a vast array of misconduct, JPMorgan engaged in the routine use of “robo-signing,” which allowed bank employees to automatically sign hundreds, even thousands, of foreclosure documents per day without verifying their contents. But in the United States, white-collar criminals rarely go to prison; instead, they negotiate settlements. Thus, on February 9, 2012, US Attorney General Eric Holder announced the National Mortgage Settlement, which fined JPMorgan Chase and four other mega-banks a total of $25 billion.

JPMorgan’s share of the settlement was $5.3 billion, but only $1.1 billion had to be paid in cash; the other $4.2 billion was to come in the form of financial relief for homeowners in danger of losing their homes to foreclosure. The settlement called for JPMorgan to reduce the amounts owed, modify the loan terms, and take other steps to help distressed Americans keep their homes. A separate 2013 settlement against the bank for deceiving mortgage investors included another $4 billion in consumer relief.

Nation investigation can now reveal how JPMorgan met part of its $8.2 billion settlement burden: by using other people’s money.

Here’s how the alleged scam worked. JPMorgan moved to forgive the mortgages of tens of thousands of homeowners; the feds, in turn, credited these canceled loans against the penalties due under the 2012 and 2013 settlements. But here’s the rub: In many instances, JPMorgan was forgiving loans on properties it no longer owned.

The alleged fraud is described in internal JPMorgan documents, public records, testimony from homeowners and investors burned in the scam, and other evidence presented in a blockbuster lawsuit against JPMorgan, now being heard in US District Court in New York City.

JPMorgan no longer owned the properties because it had sold the mortgages years earlier to 21 third-party investors, including three companies owned by Larry Schneider. Those companies are the plaintiffs in the lawsuit; Schneider is also aiding the federal government in a related case against the bank. In a bizarre twist, a company associated with the Church of Scientology facilitated the apparent scheme. Nationwide Title Clearing, a document-processing company with close ties to the church, produced and filed the documents that JPMorgan needed to claim ownership and cancel the loans.

Read on.