The Neil Garfield Show… Understanding Mortgages and Real Estate Loans


Hello Homeowners,
This is a great source of info pertaining to real estate loans.  I have learned so much from Neil.

 

Thursdays LIVE! Click in to the The Neil Garfield Show Or call in at (347) 850-1260, 6pm Eastern Thursdays NEW MAIN NUMBER: 202-838-NEIL (6345). Do you have a question regarding wrongful foreclosure? Tonight Neil Garfield and California Attorney Charles Marshall will answer questions from Livinglies readers. Please keep your questions short and concise so […]

via Tonight on the Neil Garfield Radio Show 6pm Eastern: Q&A with Attorney Charles Marshall. — Livinglies’s Weblog

Advertisements

US govt sues Bank of America for defrauding investors prior to housing crash


US govt sues Bank of America for defrauding investors prior to housing crash

Hello Everyone!

Well, when the Bank of America is sued by both the US Security Exchange Commission (SEC) and Justice Department…  Please share any feelings you have about a pillar of Wall Street and US Banking being sued for “defrauding investors by massively underestimating the quality of mortgage-backed securities prior to the 2008 housing market crash and US recession.”

Enjoy,  Ed Reidhead

US govt sues Bank of America for defrauding investors prior to housing crash

The US government has filed two lawsuits against Bank of America accusing the company of defrauding investors by massively underestimating the quality of mortgage-backed securities prior to the 2008 housing market crash and US recession.

The US Security Exchange Commission (SEC) and Justice Department each filed a lawsuit in US District Court in Charlotte, North Carolina on Tuesday, accusing Bank of America of knowingly minimizing the risk associated with $850 million worth of securities backed by residential mortgages.

I applaud Attorney General Holder for taking this important step toward holding Bank of America accountable for packaging and selling toxic loans to investors and brokers, a key cause of the housing collapse that crashed our economy and still plagues communities to this day,” New York Attorney General Eric Schneidermann said in a statement.

US President Barack Obama has promised to hold Wall Street accountable for corruption and malfeasance which took place during the housing boom. Attorney General Eric Holder said the lawsuit is “the latest step forward in the Justice Department’s ongoing efforts to hold accountable those who engage in fraudulent or irresponsible conduct.”

Bank of America said it was expecting the lawsuit in a corporate filing last week, according to The New York Times.

The Justice Department lawsuit claims an “unprecedented portion” of the mortgages originated with brokers unaffiliated with the bank. Then-CEO Ken Lewis, the suit says, referred to the so-called wholesale loans as “toxic waste.”

Prosecutors say that while Bank of America assembled securities in 2008, employees were pressured to process as many mortgage evaluations as possible in order to maximize profits. More than 40 per cent of the mortgages did not meet the underwriting qualifications and were summarily ignored.

According to the lawsuit, one employee said her job was to “basically validate the loans” instead of reviewing them to find any potential flaws. Upon raising the issue with her superiors, she was told to “keep her opinions to herself,” prosecutors said.

The two suits accuse Bank of America – which has over 260,000 employees across the world – of lying to investors and failing to disclose essential information. A Justice Department statement declared that a “material number” of mortgages “failed to materially adhere to Bank of America’s underwriting standards.”

Bank of America stock shares fell by one per cent after the news broke, but have increased by 97 per cent over the past year. In a statement released Tuesday, the company denied the transactions were tainted in any way.

These were prime mortgages sold to sophisticated investors who had ample access to the underlying data, and we will demonstrate that,” the statement said.

The loans in this pool performed better than loans with similar characteristics originated and securitized at the same time by other financial institutions. We are not responsible for the housing market collapse that caused mortgage loans to default at unprecedented rates and these securities to lose value as a result.”

KERRY CASSIDY INTERVIEW WITH KAREN HUDES- World Bank Legal Counsel and Whistleblower


Hello everyone,

I am so grateful to Karen and Kerry for creating this informative and monumental interview on the current state of affairs involving International Finance and World Bank operations and connected political events. This is a must see interview that is far ranging and provides deep background information.
When this information gets out to people and discovery of suppressed financial/political events reaches the general public, this may be the tipping point towards integrity and dignity. Feel free to comment on the information herein…

Enjoy,

Ed

From the website;  www.kahudes.net/

Who is Karen Hudes?

Karen Hudes studied law at Yale Law School and economics at the University of Amsterdam. She worked in the US Export Import Bank of the US from 1980-1985 and in the Legal Department of the World Bank from 1986-2007. She established the Non Governmental Organization Committee of the International Law Section of the American Bar Association and the Committee on Multilateralism and the Accountability of International Organizations of the American Branch of the International Law Association.
What did Karen Hudes blow the whistle on?

In 2007 Karen warned the US Treasury Department and US Congress that the US would lose its right to appoint the President of the World Bank if the current American President of the World Bank did not play by the rules. The 66 year old Gentlemen’s Agreement that Europe would appoint the Managing Director of the IMF and US would appoint the World Bank President ended in 2010 http://www.imf.org/external/np/cm/2010/042510.htm

In 1999 Karen reported the corrupt take-over of the second largest bank in the Philippines. Lucio Tan, a crony of Joseph Estrada, then President of the Philippines, acquired stock owned by government employees in Philippines National Bank (“PNB”) valued more than 10% of PNB’s outstanding capital without disclosure, as required by Philippines securities laws. Tan owned Philippines Airlines, in default on its loans from PNB. The government of the Philippines loaned $493 million to PNB after PNB’s depositors made heavy withdrawals. $200 million of a loan from the World Bank and a $200 million loan from Japan were cancelled. Estrada was ultimately impeached, and in 2007 an anti-corruption court in the Philippines required Estrada to refund graft he had plundered. The Bank’s Country Director in the Philippines reassigned Karen when she asked him to sign a letter warning the Philippines’ government that the Bank could not disburse its loan without a waiver from the Board of Executive Directors since the loan conditionality was not met. The World Bank’s Internal Audit Department refused to correct the satisfactory evaluation of the Bank’s supervision performance or the flawed report of the Institutional Integrity Department to the Audit Committee of the Board of Executive Directors. When the Audit Committee requested an audit of internal controls over financial reporting, KPMG, the external auditors, circumscribed the scope of their audit in violation of Generally Accepted Accounting Principles and Generally Accepted Auditing Standards.

Two days after informing the Board’s Audit Committee of the cover-up in the Philippines, Karen was reprimanded and placed on probation. The Dutch Ministry of Foreign Affairs requested the World Bank’s Audit Committee to look into the cover- up. Instead, the Chair of the World Bank’s Audit Committee requested an inquiry into the World Bank’s Institutional Integrity Department. The Senate Committee on Foreign Relations followed up with three letters to the World Bank. The World Bank forged documents and fired Karen in contempt of Congress. The World Bank also fired the Staff Association’s lawyer. The Staff Association stated that what had happened to Karen had damaged staff morale and prevented others from reporting misconduct. The World Bank’s Ethics’ Officer left in frustration after her request for an investigation by the World Bank’s Institutional Integrity Department was turned down.

Mr. Paul Volcker headed the 2007 inquiry into the Institutional Integrity Department. The Volcker Panel was discredited after sixteen staff employed in the Institutional Integrity Department received significant damage awards in compensation for abuses of authority to intimidate them during the Volker Panel investigation. A staff-member of the EU’s anti-fraud agency, Office Lutte Anti-Fraude, on the Volcker Panel wrote to Karen:
“My Director General and I met with a number of European Executive Directors of the World Bank a few weeks ago to discuss the Volcker Panel report. At the meeting there was also discussion about governance issues. My impression was that the European Executive Directors are well apprised of all relevant issues at the Bank and no further comment by OLAF is warranted even if it was within our legal competence.”

Karen informed Senator Bayh, “[t]he ongoing cover-up is an indictment of the probity of US oversight at the Bank and I would encourage the Senate to request GAO to look into it.” Senators Richard Lugar, Evan Bayh and Patrick Leahy requested GAO to investigate “internal resistance to increased transparency and accountability at the World Bank.” http://citizenoversight.com/pdf/blwb.pdf In 2008 Karen’s Congressman, Representative Chris Van Hollen, noted “that [Karen’s] claims and concerns have already been provided to the GAO…. and to the relevant congressional committees.” In 2009 GAO stated that it could not commence the inquiry “because of challenges we recently faced in gaining access to World Bank officials.” Senator Lugar asked what was delaying the GAO review during hearings on the World Bank’s capital increase.

Mr. Pieter Stek, then Executive Director for the Netherlands, and Chair of the Board Committee on Development Effectiveness, said:
“In a multilateral institution which should be governed by the rule of law and high standards of probity the charge of concealment from the Board of Executive Directors of information relevant to the exercise of its duty of supervising management and the persecution of the person who brings this to light is extremely serious. If correct, which I believe, this poisonous cocktail undermines good governance and ultimately the effectiveness of the Bank in fulfilling its mandate. I shall continue to assist Ms. Hudes in her efforts to have due process brought to bear, preferably by the Bank itself, on these issues of governance.”

David Brooks wrote:
“Then there are violations, when someone intentionally breaks the rules. Errors can be very hard for outsiders to detect. It was people inside the companies who were most likely to report fraud, because they have local knowledge. And yet 80 percent of these whistleblowers regret having reported the crimes because of the negative consequences they suffered. This is not the way to treat people who detect error.” http://brooks.blogs.nytimes.com/2011/06/13/living-with-mistakes/?comments#permid=34

%d bloggers like this: