Billion | FORECLOSURE FRAUD | by DinSFLA - Part 2

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Goldman Sachs mortgage deal with federal agency FHFA could reach $1.25 billion

Goldman Sachs mortgage deal with federal agency FHFA could reach $1.25 billion

Reuters-

A deal to resolve a U.S. regulator’s claims against Goldman Sachs Group Inc over mortgage-backed securities sold to Fannie Mae and Freddie Mac leading up to the financial crisis could cost the bank between $800 million and $1.25 billion, according to a person familiar with the matter.

The person said Goldman Sachs is discussing a settlement with the Federal Housing Finance Agency (FHFA), which filed 18 lawsuits against Goldman and other banks in 2011 over about $200 billion in mortgage-backed securities that later went sour.

Goldman Sachs and the FHFA declined to comment on Saturday.

[REUTERS]

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CIT Group to Buy OneWest for $3.4 Billion

CIT Group to Buy OneWest for $3.4 Billion

NYT-

The CIT Group, a lender to small and midsize businesses run by John A. Thain, said on Tuesday that it had agreed to acquire the parent company of OneWest Bank for $3.4 billion in cash and stock.

The deal will bolster CIT’s lending abilities by more than doubling its deposit base. OneWest currently manages $15 billion in deposits, as well as $23 billion in assets, including commercial and home mortgages.

It will merge with CIT’s own bank, creating a commercial bank with $28 billion in deposits and $67 billion in assets — putting it above the $50 billion threshold for increased regulatory oversight of banks deemed systemically important.

[NEW YORK TIMES]

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Bank of America offering $13 billion to resolve probe

Bank of America offering $13 billion to resolve probe

Just close these cartels down now…ALL. OF. THEM.

 

CNBC-

Bank of America has offered $13 billion to settle a probe into mortgage securities sold by the bank, the Wall Street Journal reported, citing people familiar with the matter.

The bank met U.S. Justice Department representatives on Tuesday, but no progress was made toward a final deal, the paper reported.

Bank of America had previously offered about $12 billion to settle the matter, including a portion to help struggling homeowners, while the Justice Department had suggested a $17 billion settlement, sources told Reuters earlier this month.

[CNBC]

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Justice Department, Federal and State Partners Secure Record $7 Billion Global Settlement with Citigroup for Misleading Investors About Securities Containing Toxic Mortgages

Justice Department, Federal and State Partners Secure Record $7 Billion Global Settlement with Citigroup for Misleading Investors About Securities Containing Toxic Mortgages

Department of Justice

Office of Public Affairs
FOR IMMEDIATE RELEASE
Monday, July 14, 2014
Justice Department, Federal and State Partners Secure Record $7 Billion Global Settlement with Citigroup for Misleading Investors About Securities Containing Toxic Mortgages
Citigroup to Pay the Largest Penalty of Its Kind – $4 Billion

The Justice Department, along with federal and state partners, today announced a $7 billion settlement with Citigroup Inc. to resolve federal and state civil claims related to Citigroup’s conduct in the packaging, securitization, marketing, sale and issuance of residential mortgage-backed securities (RMBS) prior to Jan. 1, 2009.  The resolution includes a $4 billion civil penalty – the largest penalty to date under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).  As part of the settlement, Citigroup acknowledged it made serious misrepresentations to the public – including the investing public – about the mortgage loans it securitized in RMBS.  The resolution also requires Citigroup to provide relief to underwater homeowners, distressed borrowers and affected communities through a variety of means including financing affordable rental housing developments for low-income families in high-cost areas.  The settlement does not absolve Citigroup or its employees from facing any possible criminal charges.

 

This settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group, which has recovered $20 billion to date for American consumers and investors.

 

“This historic penalty is appropriate given the strength of the evidence of the wrongdoing committed by Citi,” said Attorney General Eric Holder.  “The bank’s activities contributed mightily to the financial crisis that devastated our economy in 2008.  Taken together, we believe the size and scope of this resolution goes beyond what could be considered the mere cost of doing business.  Citi is not the first financial institution to be held accountable by this Justice Department, and it will certainly not be the last.”

 

The settlement includes an agreed upon statement of facts that describes how Citigroup made representations to RMBS investors about the quality of the mortgage loans it securitized and sold to investors.  Contrary to those representations, Citigroup securitized and sold RMBS with underlying mortgage loans that it knew had material defects.  As the statement of facts explains, on a number of occasions, Citigroup employees learned that significant percentages of the mortgage loans reviewed in due diligence had material defects.  In one instance, a Citigroup trader stated in an internal email that he “went through the Diligence Reports and think[s] [they] should start praying . . . [he] would not be surprised if half of these loans went down. . . It’s amazing that some of these loans were closed at all.”  Citigroup nevertheless securitized the loan pools containing defective loans and sold the resulting RMBS to investors for billions of dollars.  This conduct, along with similar conduct by other banks that bundled defective and toxic loans into securities and misled investors who purchased those securities, contributed to the financial crisis.

“Today, we hold Citi accountable for its contributing role in creating the financial crisis, not only by demanding the largest civil penalty in history, but also by requiring innovative consumer relief that will help rectify the harm caused by Citi’s conduct,” said Associate Attorney General Tony West.  “In addition to the principal reductions and loan modifications we’ve built into previous resolutions, this consumer relief menu includes new measures such as $200 million in typically hard-to-obtain financing that will facilitate the construction of affordable rental housing, bringing relief to families pushed into the rental market in the wake of the financial crisis.”

 

Of the $7 billion resolution, $4.5 billion will be paid to settle federal and state civil claims by various entities related to RMBS: Citigroup will pay $4 billion as a civil penalty to settle the Justice Department claims under FIRREA, $208.25 million to settle federal and state securities claims by the Federal Deposit Insurance Corporation (FDIC), $102.7 million to settle claims by the state of California, $92 million to settle claims by the state of New York, $44 million to settle claims by the state of Illinois, $45.7  million to settle claims by the Commonwealth of Massachusetts, and $7.35 to settle claims by the state of Delaware.

 

Citigroup will pay out the remaining $2.5 billion in the form of relief to aid consumers harmed by the unlawful conduct of Citigroup.  That relief will take various forms, including loan modification for underwater homeowners, refinancing for distressed borrowers, down payment and closing cost assistance to homebuyers, donations to organizations assisting communities in redevelopment and affordable rental housing for low-income families in high-cost areas.  An independent monitor will be appointed to determine whether Citigroup is satisfying its obligations.  If Citigroup fails to live up to its agreement by the end of 2018,  it must pay liquidated damages in the amount of the shortfall to NeighborWorks America, a non-profit organization and leader in providing affordable housing and facilitating community development.

 

The U.S. Attorney’s Offices for the Eastern District of New York and the District of Colorado conducted investigations into Citigroup’s practices related to the sale and issuance of RMBS between 2006 and 2007.

 

“The strength of our financial markets depends on the truth of the representations that banks provide to investors and the public every day,” said U.S. Attorney John Walsh for the District of Colorado, Co-Chair of the RMBS Working Group.  “Today’s $7 billion settlement is a major step toward restoring public confidence in those markets.  Due to the tireless work by the Department of Justice, Citigroup is being forced to take responsibility for its home mortgage securitization misconduct in the years leading up to the financial crisis.  As important a step as this settlement is, however, the work of the RMBS working group is far from done, we will continue to pursue our investigations and cases vigorously because many other banks have not yet taken responsibility for their misconduct in packaging and selling RMBS securities.”

 

“After nearly 50 subpoenas to Citigroup, Trustees, Servicers, Due Diligence providers and their employees, and after collecting nearly 25 million documents relating to every residential mortgage backed security issued or underwritten by Citigroup in 2006 and 2007, our teams found that the misconduct in Citigroup’s deals devastated the nation and the world’s economies, touching everyone,” said U.S. Attorney of the Eastern District of New York Loretta Lynch.  “The investors in Citigroup RMBS included federally-insured financial institutions, as well as a host of states, cities, public and union pension and benefit funds, universities, religious charities, and hospitals, among others.  These are our neighbors in Colorado, New York and around the country, hard-working people who saved and put away for retirement, only to see their savings decimated.”

 

This settlement resolves civil claims against Citigroup arising out of certain securities packaged, securitized, structured, marketed, and sold by Citigroup.  The agreement does not release individuals from civil charges, nor does it release Citigroup or any individuals from potential criminal prosecution. In addition, as part of the settlement, Citigroup has pledged to fully cooperate in investigations related to the conduct covered by the agreement.

 

Michael Stephens, Acting Inspector General for the Federal Housing Finance Agency said, “Citigroup securitized billions of dollars of defective mortgages, after which investors suffered enormous losses by purchasing RMBS from Citi not knowing about those defects. Today’s settlement is another significant step by FHFA-OIG and its law enforcement partners to hold accountable those who committed acts of fraud and deceit in the lead up to the financial crisis, and is a necessary step toward reviving a sound RMBS market that is crucial to the housing industry and the American economy.  We are proud to have worked with the Department of Justice, the U.S. Attorneys’ Offices in the Eastern District of New York and the District of Colorado. They have been great partners and we look forward to our continued work together.”

 

The underlying investigation was led by Assistant U.S. Attorneys Richard K. Hayes, Kevin Traskos, Lila Bateman, John Vagelatos, J. Chris Larson and Edward K. Newman, with the support of agents from the Office of the Inspector General for the Federal Housing Finance Agency, in conjunction with the President’s Financial Fraud Enforcement Task Force’s RMBS Working Group.

 

The RMBS Working Group is a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis.  The RMBS Working Group brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, 10 U.S. Attorneys’ Offices, the FBI, the Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than 10 state Attorneys General offices around the country.

 

The RMBS Working Group is led by its Director Geoffrey Graber and its five co-chairs: Assistant Attorney General for the Civil Division Stuart Delery, Assistant Attorney General for the Criminal Division Leslie Caldwell, Director of the SEC’s Division of Enforcement Andrew Ceresney, U.S. Attorney for the District of Colorado John Walsh and New York Attorney General Eric Schneiderman.

 

Learn more about the RMBS Working Group and the Financial Fraud Enforcement Task Force at: www.stopfraud.gov .

14-733
Attorney General

Source: DOJ

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BlackRock, Pimco sue over billions in mortgage securities losses

BlackRock, Pimco sue over billions in mortgage securities losses

What about the homeowners? Pay very close attention to this suit…chances are you have or had a Frankenstein loan on your house.


Reuters-

Institutional investors including BlackRock Inc and Allianz SE’s Pimco on Wednesday sued six of the largest bond trustees, accusing them of failing to properly oversee more than $2 trillion in mortgage-backed securities issued in the run-up to the 2008 financial crisis.

The lawsuits, filed in New York state court, claim the trustees breached their duties to investors by failing to force lenders and sponsors of the securities to repurchase defective loans, the suits claim.

The investors are seeking damages for losses that exceed $250 billion and relate to over 2,200 residential mortgage-backed securities trusts issued between 2004 and 2008, according to a person familiar with the cases.

[REUTERS]

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BANK OF AMERICA INVESTIGATION INITIATED BY FORMER LOUISIANA ATTORNEY GENERAL: Kahn Swick & Foti, LLC Investigates Bank of America Corporation Following Disclosure of $4 Billion Accounting Error

BANK OF AMERICA INVESTIGATION INITIATED BY FORMER LOUISIANA ATTORNEY GENERAL: Kahn Swick & Foti, LLC Investigates Bank of America Corporation Following Disclosure of $4 Billion Accounting Error

NEW ORLEANS–(BUSINESS WIRE)–Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Bank of America Corporation (NYSE: BAC).

On April 28, 2014, Bank of America announced a $4 billion downward revision of the Company’s previously disclosed regulatory capital due to an accounting error related to the Company’s 2009 acquisition of Merrill Lynch & Co. The Company further announced that the Federal Reserve Board has required the Company to resubmit its data templates and requested capital actions and directed that the Company suspend its plan to buy back more shares and raise its dividend. The Federal Reserve Board stated that, “Bank of America must address the quantitative errors in its regulatory capital calculations as part of the resubmission and must undertake a review of its regulatory capital reporting to help ensure there are no further errors.”

KSF’s investigation is focusing on whether Bank of America and/or its officers and directors violated state or federal securities laws.

If you have information that would assist KSF in its investigation, or own a significant amount of Bank of America stock that was purchased recently and would like to discuss your legal rights, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com) or KSF Partner Melinda Nicholson (melinda.nicholson@ksfcounsel.com) toll free at 1-877-515-1850.

About Kahn Swick & Foti, LLC

KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities class action and shareholder derivative litigation with offices in New York and Louisiana. KSF’s lawyers have significant experience litigating complex securities class actions nationwide on behalf of both institutional and individual shareholders.

To learn more about KSF, you may visit www.ksfcounsel.com.

 

Contacts

Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner, 1-877-515-1850
lewis.kahn@ksfcounsel.com
or
Melinda Nicholson, Partner, 1-877-515-1850
melinda.nicholson@ksfcounsel.com

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U.S. Said to Ask BofA for More Than $13 Billion Over RMBS

U.S. Said to Ask BofA for More Than $13 Billion Over RMBS

Bloomberg-

U.S. prosecutors are seeking more than $13 billion from Bank of America Corp. to resolve federal and state probes into the lender’s sale of bonds backed by home loans in the run-up to the 2008 financial crisis, according to people familiar with the matter.

The settlement would come on top of the $9.5 billion the bank agreed last month to pay to resolve Federal Housing Finance Agency claims, said two people who asked not to be named because the negotiations are private. A deal could come within the next two months, the people said.

[BLOOMBERG]

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Citi agrees to pay $1.125 Billion across 68 trusts

Citi agrees to pay $1.125 Billion across 68 trusts

18 Institutional Investors in RMBS Issued by Citigroup Announce Binding Offer by Citigroup to Four RMBS Trustees to Settle Mortgage Repurchase Claims for 68 RMBS Trusts

4.7.2014

HOUSTON, April 7, 2014 – Today, 18 institutional investors represented by Gibbs & Bruns LLP (“Institutional Investors”) announced they have reached an agreement with Citigroup (“Citi”) under which Citi will make a binding offer (“Offer”) to the Trustees of 68 RMBS Trusts issued by Citi to settle mortgage repurchase claims.  The Institutional Investors support the agreement and have asked the Trustees to accept it.  The Trusts included in the Offer are listed on Exhibit “A.”   

The Trustees will have until June 30, 2014 to accept the Offer, which may be extended pursuant to the terms of the Offer for an additional forty-five days.  The Offer includes the following key terms:

1.      Payment by Citi of $1.125 billion in cash to the Trusts to settle mortgage repurchase claims;

2.      Reimbursement to the Trustees of expenses associated with their evaluation of the Offer; and

3.      A release of all repurchase claims that have been or could have been asserted by the Trusts.

 The Institutional Investors who are parties to the agreement are: 

·         Bayerische Landesbank

·         BlackRock Financial Management Inc.

·         Cascade Investment, L.L.C.

·         Federal Home Loan Bank of Atlanta

·         Federal Home Loan Mortgage Corporation

·         Goldman Sachs Asset Management, L.P.

·         ING Investment Management LLC

·         Invesco Advisers, Inc.

·         Kore Advisors, L.P.

·         Landesbank Baden-Wuerttemberg

·         Metropolitan Life Insurance Company

·         Pacific Investment Management Company LLC

·         Sealink Funding Limited

·         Teachers Insurance and Annuity Association of America

·         The Prudential Insurance Company of America

·         The TCW Group, Inc.

·         Thrivent Financial for Lutherans

·         Western Asset Management Company

The agreement is subject to regulatory approval by FHFA and acceptance of the Offer by the Trustees.  Pursuant to the agreement, the Institutional Investors have requested that the Trustees accept the Settlement.  The Institutional Investors have also agreed to use their reasonable best efforts to obtain court approval of the settlement, if the Trustees elect to accept the Offer and seek a judicial instruction concerning their decision to do so.  Attorneys’ fees for the Institutional Investors’ counsel, Gibbs & Bruns, will be paid in addition to—and not out of—the Settlement Payment upon the latter of the Trustees’ Acceptance or Final Court Approval, if a judicial instruction is sought. 

read more [GIBBS & BRUNS]


 

Exhibit A

CMLTI 2005-1

CMLTI 2006-NC1

CMLTI 2005-10

CMLTI 2006-NC2

CMLTI 2005-11

CMLTI 2006-NCB1

CMLTI 2005-2

CMLTI 2006-SHL1

CMLTI 2005-3

CMLTI 2006-WF1

CMLTI 2005-4

CMLTI 2006-WF2

CMLTI 2005-5

CMLTI 2006-WFH1

CMLTI 2005-6

CMLTI 2006-WFH2

CMLTI 2005-7

CMLTI 2006-WFH3

CMLTI 2005-8

CMLTI 2006-WFH4

CMLTI 2005-9

CMLTI 2006-WMC1

CMLTI 2005-HE1

CMLTI 2007-10

CMLTI 2005-HE2

CMLTI 2007-2

CMLTI 2005-HE3

CMLTI 2007-6

CMLTI 2005-HE4

CMLTI 2007-AHL1

CMLTI 2005-OPT1

CMLTI 2007-AHL2

CMLTI 2005-OPT3

CMLTI 2007-AHL3

CMLTI 2005-OPT4

CMLTI 2007-AMC1

CMLTI 2005-SHL1

CMLTI 2007-AMC2

CMLTI 2005-WF1

CMLTI 2007-AMC3

CMLTI 2005-WF2

CMLTI 2007-AMC4

CMLTI 2006-4

CMLTI 2007-AR1

CMLTI 2006-AMC1

CMLTI 2007-AR4

CMLTI 2006-AR1

CMLTI 2007-AR5

CMLTI 2006-AR2

CMLTI 2007-AR7

CMLTI 2006-AR3

CMLTI 2007-AR8

CMLTI 2006-AR5

CMLTI 2007-FS1

CMLTI 2006-AR6

CMLTI 2007-OPX1

CMLTI 2006-AR7

CMLTI 2007-SHL1

CMLTI 2006-AR9

CMLTI 2007-WFH1

CMLTI 2006-FX1

CMLTI 2007-WFH2

CMLTI 2006-HE1

CMLTI 2007-WFH3

CMLTI 2006-HE2

CMLTI 2007-WFH4

CMLTI 2006-HE3

CMLTI 2008-2

###

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Wall Street Got $26.7 Billion In Bonuses Last Year. That’s Enough To Feed Every Hungry American

Wall Street Got $26.7 Billion In Bonuses Last Year. That’s Enough To Feed Every Hungry American

Wonder what the kickback percentage fees of this amount went to the Corrupted Politicians?


HuffPO-

The average Wall Street bonus increased 15 percent in 2013, bringing the industry’s overall bonuses to a total of $26.7 billion, the largest since 2008. This milestone came just a few months after an NBC News/Wall Street Journal poll found that only 14 percent of Americans have a positive opinion of Wall Street, five years after a financial crisis spurred by these institutions. We’re talking congressional popularity numbers. Ouch.

We’re always told that “Main Street” is directly affected by the state of our financial markets. And yet, even as the stock market continues to rebound, average American workers struggle to find employment, keep their homes and even put food on the table. Wall Street’s earnings meanwhile continue to break records. Seems like a rather one-sided relationship as of late … but outside the decadent halls of Wall Street, that money could be put to excellent use.

With $26.7 billion, we could …

[HUFFINGTONPOST]

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Abigail Field: Is everyone looking forward to subsidizing JPMorgan Chase’s “13” billion dollar fraud settlement?

Abigail Field: Is everyone looking forward to subsidizing JPMorgan Chase’s “13” billion dollar fraud settlement?

Great to see Abigail write again!


Benzinga-

Special Interest Tax Break #9: Calling Payments for Law Breaking Ordinary Business Expenses

When companies “pay” huge amounts of money to settle claims that they broke the law, don’t believe the hype: the bill may be a lot less than advertised.

That’s because we taxpayers may be picking up part of the tab.

[BENZINGA]

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Bank of America to pay $9.3 billion to settle mortgage bond claims in FHFA litigation

Bank of America to pay $9.3 billion to settle mortgage bond claims in FHFA litigation

A lot they made off these loans!

Reuters-

Bank of America agreed to pay $9.3 billion to settle claims that it sold Fannie Mae and Freddie Mac faulty mortgage bonds, helping the bank to end one of the largest legal headaches it still faced from the financial crisis.

The settlement, announced on Wednesday, includes $6.3 billion in cash and $3.2 billion in securities that Bank of America will purchase from the two housing finance entities.

The second-largest U.S. bank by assets said it had now resolved around 88 percent of its total exposure to securities at issue in the mortgage bond litigation it has faced.

[REUTERS]

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Why Should Taxpayers Give Big Banks $83 Billion a Year?

Why Should Taxpayers Give Big Banks $83 Billion a Year?

We all are part of this PONZI if we like it or not…not up to us to decide but the crooked politicians that kiss the ass of the mighty corporate dollars for brown bags full of a share!


Bloomberg-

On television, in interviews and in meetings with investors, executives of the biggest U.S. banks — notably JPMorgan Chase & Co. Chief Executive Jamie Dimon — make the case that size is a competitive advantage. It helps them lower costs and vie for customers on an international scale. Limiting it, they warn, would impair profitability and weaken the country’s position in global finance.

So what if we told you that, by our calculations, the largest U.S. banks aren’t really profitable at all? What if the billions of dollars they allegedly earn for their shareholders were almost entirely a gift from U.S. taxpayers?

Granted, it’s a hard concept to swallow. It’s also crucial to understanding why the big banks present such a threat to the global economy.

[BLOOMBERG]

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AIG holding BofA $8.5 billion settlement ‘hostage,’ investors say

AIG holding BofA $8.5 billion settlement ‘hostage,’ investors say

Reuters-

American International Group (AIG.N) is holding “hostage” an $8.5 billion deal to compensate investors who bought Bank of America Corp (BAC.N) mortgage securities, supporters of the deal said in court filings ahead of a hearing on Wednesday.

The supporters urged the judge overseeing the deal to reject AIG’s efforts to delay its approval, according to documents submitted to the court late on Friday.

Bank of America agreed to the settlement in June 2011 to resolve claims by investors who had bought $174 billion of mortgage-backed securities issued by Countrywide Financial before the U.S. housing crisis. The investors said Countrywide, acquired by Bank of America in 2008, misrepresented the quality of the underlying home mortgages, which went sour in the crisis.

[REUTERS]

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Better Markets Files Lawsuit Challenging the U.S. Department of Justice’s Unlawful, Unprecedented and Unilateral Agreement Granting JP Morgan Chase Blanket Immunity In Exchange for $13 Billion

Better Markets Files Lawsuit Challenging the U.S. Department of Justice’s Unlawful, Unprecedented and Unilateral Agreement Granting JP Morgan Chase Blanket Immunity In Exchange for $13 Billion

Better Markets Files Lawsuit Challenging the U.S. Department of Justice’s Unlawful, Unprecedented and Unilateral Agreement Granting JP Morgan Chase Blanket Immunity In Exchange for $13 Billion

Executive Branch Acted as Investigator, Prosecutor, Judge, Jury, Sentencer and Collector without Any Court Review or Approval

(Washington, D.C.) Better Markets, Inc. today filed a lawsuit in U.S. District Court for the District of Columbia challenging the Justice Department’s authority to unilaterally enter into the unprecedented and historic $13 billion agreement with JP Morgan Chase, which was the largest settlement with a single entity in the nation’s history by more than 300%. The November 2013 agreement gave JP Morgan Chase – with no judicial review or approval – blanket civil immunity for years of alleged pervasive, egregious and knowing fraudulent and illegal conduct that contributed to the 2008 financial crash and the worst economy since the Great Depression.

“The Wall Street bailouts were bad enough, but now taxpayers are being forced to accept a secretive backroom deal that may well have been another sweetheart deal. The Justice Department cannot act as prosecutor, jury and judge and extract $13 billion in exchange for blanket civil immunity to the largest, richest, most politically-connected bank on Wall Street. The executive branch does not have this unilateral power because it violates the constitutional requirement of checks and balances,” said Dennis Kelleher, President and CEO of Better Markets, an independent nonprofit organization that promotes the public interest in the financial markets.

“Adding insult to injury, the Department of Justice did all this in an agreement that appears to have been written more to conceal than reveal. For example, it is using the large dollar amount to blind everyone to the reality that they have disclosed no meaningful facts about what JP Morgan Chase did, who did it, who it hurt, how much they profited and how much their clients, customers and others lost. The American people deserve, and the law requires, an independent judicial review to determine whether the settlement is fair and whether it can withstand scrutiny in the light of day,” Mr. Kelleher said.

To put the $13 billion settlement in perspective, the financial crisis that JP Morgan Chase contributed to  will ultimately cost Americans more than $13 trillion and some estimates are that it could cost every man, woman and child in the U.S. as much as $120,000.  A monetary sanction of $13 billion seems small given it contributed to such economic wreckage and given the size of JP Morgan Chase, a bank with $2.4 trillion in assets. The point is, however, that making an informed judgment about the substance of the agreement is simply impossible without judicial review and the disclosure of meaningful information.

Better Markets is asking the court to declare the agreement unlawful and to issue an injunction that would prevent the DOJ from enforcing the agreement until the agreement has been reviewed and approved by a court. As part of the judicial review, a court would have the opportunity to ask the parties for more details, which would become publicly available, about JP Morgan’s violations and the extent of the damages they caused.

A fact sheet and other information on the lawsuit are available on Better Markets’ website.

###

Better Markets is an independent, nonprofit, nonpartisan organization that promotes the public interest in financial reform in the domestic and global capital and commodity markets. Better Markets advocates for transparency, oversight and accountability with the goal of a stronger, safer financial system that is less prone to crisis and failure, thereby eliminating or minimizing the need for more taxpayer funded bailouts.

Here is more information on the lawsuit:
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U.S. seeks $2.1 billion from Bank of America in fraud case

U.S. seeks $2.1 billion from Bank of America in fraud case

REUTERS-

The U.S. government has asked a judge to order Bank of America Corp (BAC.N) to pay $2.1 billion, increasing its request for penalties stemming from a jury’s finding that the bank was liable for fraud over defective mortgages sold by its Countrywide unit.

The request in a court filing late Wednesday followed a December hearing where a judge asked the bank and the U.S. Justice Department to brief him on how he might base the penalties on Countrywide’s gains rather than losses resulting from the mortgage sales.

The Justice Department had previously asked for only $863.6 million based on gross losses it said government-sponsored mortgage finance companies Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) incurred on loans purchased from Countrywide in 2007 and 2008.

[REUTERS]

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Wall Street Predicts $50 Billion Bill to Settle U.S. Mortgage Suits

Wall Street Predicts $50 Billion Bill to Settle U.S. Mortgage Suits

Well, if they can afford $91 Billion in bonuses a year, then this is pennies for them!

Even though most will be a tax write-off.


CNBC-

Wall Street could pay nearly $50 billion to buy peace from federal authorities who are taking aim at the banks over their role in the mortgage crisis, according to interviews and a confidential analysis of the industry’s potential legal exposure.

Bracing for a potential reckoning, the banks and their outside lawyers are quietly using JPMorgan Chase’s record $13 billion mortgage settlement in November to do the math and determine just how much each bank might have to pay to move beyond the torrent of government mortgage litigation that has dogged them since the financial crisis. Such calculations, people briefed on the matter said, have gained particular urgency among the banks’ board members.

If the settlements materialize, they could yield, according to the analysis, $15 billion in relief for consumers — a mixture of cash payments and other assistance, like reductions in the size of homeowners’ loan payments. A payment of $50 billion, made up of a string of separate deals, would amount to roughly half the total annual profit of large American banks in 2012.

[CNBC]

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.






Posted in STOP FORECLOSURE FRAUD2 Comments

JPMorgan Chase agrees to pay $1.7 billion to settle federal claims in Madoff fraud –  Supporting Documents for Deferred Prosecution Agreement w/ Exhibits: U.S. v. JPMorgan Chase Bank, N.A.

JPMorgan Chase agrees to pay $1.7 billion to settle federal claims in Madoff fraud – Supporting Documents for Deferred Prosecution Agreement w/ Exhibits: U.S. v. JPMorgan Chase Bank, N.A.

JPMorgan Chase & Co will pay $1.7 billion to settle U.S. charges it violated laws requiring banks to monitor customer activity for money laundering in its handling of accounts of convicted Ponzi-schemer Bernard Madoff.

JPMorgan Chase Bank will be criminally charged with 2 violations of the Bank Secrecy Act in connection with the Bernard Madoff’s Multi-Billion Dollar ponzi-scheme.

Deferred prosecution agreement requires JPMC to admit its conduct, pay $1.7B to victims of Madoff’s fraud & reform its anti-money laundering policies.


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Posted in STOP FORECLOSURE FRAUD2 Comments

Infographic: JP Morgan pays $31.78 billion in fines and other legal costs since 2009

Infographic: JP Morgan pays $31.78 billion in fines and other legal costs since 2009

AND there are many, many more years to come!

Roll your mouse over a color block below to see what fine they paid.

 

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.






Posted in STOP FORECLOSURE FRAUD2 Comments

FHFA Recovers Nearly $8 Billion for Taxpayers in 2013 Through Settlements

FHFA Recovers Nearly $8 Billion for Taxpayers in 2013 Through Settlements

For Immediate Release
Contact:
Corinne Russell
(202) 649-3032

Stefanie Johnson
(202) 649-3030

January 2, 2014

.

..

FHFA Recovers Nearly $8 Billion for Taxpayers in 2013
Through Settlements

Washington, DC – The Federal Housing Finance Agency (FHFA), as conservator of Fannie Mae and Freddie Mac, today announced it has recovered nearly $8 billion on behalf of taxpayers in 2013 through settlements with financial institutions that sold private-label securities (PLS) to Fannie Mae and Freddie Mac between 2005 and 2007. FHFA sued 18 financial institutions in 2011 alleging securities law violations, and in some cases, fraud.

Attached to this news release is a list of the settlements.

Links to 2011 news releases on PLS litigation:

FHFA Sues 17 Firms to Recover Losses to Fannie Mae and Freddie Mac
http://www.fhfa.gov/webfiles/22599/PLSLitigation_final_090211.pdf

FHFA Sues UBS to Recover Losses to Fannie Mae and Freddie Mac
http://www.fhfa.gov/webfiles/21842/UBS072711FINAL.pdf

###

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.5 trillion in funding for the U.S. mortgage markets and financial institution.

Federal Housing Finance Agency
Update on Private-Label Securities Actions
2013 Settlements and Remaining Cases

In 2011, the Federal Housing Finance Agency initiated litigation against 18 financial institutions involving allegations of securities law violations and, in some instances, fraud in the sale of privatelabel securities (PLS) to Fannie Mae and Freddie Mac. Below is a synopsis of the status of each case, with amounts of any settlements reached in 2013, including a non-litigation settlement.

Settlement amounts result from calculating various factors, including statutory calculations, number of securities, unique circumstances of each matter and litigation risks.

PLS Litigation Settlements

1. General Electric Company $6.25 million
2. CitiGroup Inc. $250 million
3. UBS Americas, Inc. (Union Bank of Switzerland) $885 million
4. J.P. Morgan Chase & Co. $4 billion
5. Deutsche Bank AG $1.925 billion
6. Ally Financial, Inc. $475 million

Non-Litigation PLS Settlement

Wells Fargo Bank, N.A. $335.23 million

Remaining PLS Cases
Southern District of New York Cases:

7. Barclays Bank PLC
8. Bank of America Corp.
9. Credit Suisse Holdings (USA) Inc.
10. First Horizon National Corp.
11. Goldman Sachs & Co.
12. HSBC North America Holdings, Inc. (Hong Kong Shanghai Banking Corp.)
13. Merrill Lynch & Co.
14. Morgan Stanley
15. Nomura Holding America, Inc.
16. SG Americas (Societe Generale)
[Ally Financial, Inc. (certain non-Ally defendants remain in the case)]

District of Connecticut Case:

17. The Royal Bank of Scotland Group, PLC

Central District of California Case:

18. Countrywide Financial Corporation

Source: FHFA Recovers Nearly $8 Billion for Taxpayers in 2013 Through Settlements

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.






Posted in STOP FORECLOSURE FRAUD1 Comment

Bankers are getting their holiday bonuses again this year, to the tune of over $91 billion!!

Bankers are getting their holiday bonuses again this year, to the tune of over $91 billion!!

Bankers are getting their holiday bonuses again this year, to the tune of over $91 billion, and some don’t know what to do with all that extra money. One group, called The Other 98 Percent, has proposed that bankers give their bonuses to the homeowners who lost their homes due to foreclosures that never should have happened. RT’s Ameera David talks to Alexis Goldstein, communications director for Other98.com, about the group’s proposal and why they chose homeowners who had been foreclosed upon as the recipients.

© 2010-15 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.






Posted in STOP FORECLOSURE FRAUD8 Comments

FHFA Announces $1.9 Billion Settlement With Deutsche Bank

FHFA Announces $1.9 Billion Settlement With Deutsche Bank

For Immediate Release Contact:

Corinne Russell (202) 649-3032
Stefanie Johnson (202) 649-3030

December 20, 2013

FHFA Announces $1.9 Billion Settlement
With Deutsche Bank

.

Washington, DC — The Federal Housing Finance Agency (FHFA), as conservator of
Fannie Mae and Freddie Mac, today announced it has reached a settlement with
Deutsche Bank AG, related companies and specifically named individuals for $1.925
billion to resolve claims in FHFA v. Deutsche Bank AG, et al., as well as certain other
matters. The settlement addresses claims alleging violations of federal and state
securities laws in connection with private-label mortgage-backed securities (PLS)
purchased by Fannie Mae and Freddie Mac between 2005 and 2007.

Under the terms of the agreement, Deutsche Bank will pay approximately $1.63 billion
to Freddie Mac and $300 million to Fannie Mae. As part of the settlement, FHFA,
Fannie Mae and Freddie Mac will release certain claims brought against Deutsche Bank
related to securities sold to Fannie Mae and Freddie Mac between 2005 and 2007.

The settlement agreement does not release Deutsche Bank from any claims relating to
LIBOR manipulation and does not include claims made against Deutsche Bank in two
other PLS lawsuits presently the subject of ongoing litigation: FHFA v. SC Americas,
Inc., et. al., and FHFA v. Countrywide Financial Corp., et. al. The other parties to
those lawsuits were not part of the negotiations with Deutsche Bank.

This is the sixth settlement that FHFA has attained pursuant to the 18 PLS lawsuits
filed in 2011. FHFA remains committed to satisfactory resolution of the remaining
actions.

(Settlement Agreement follows; confidential materials omitted)

THE COVERED SECURITIES
Securitization Name CUSIP Action

ACE 2005-AG1 004427BV1 Deutsche Bank
ACE 2005-ASAP1 004421SY0 Deutsche Bank
ACE 2005-HE6 004421SG9 Deutsche Bank
ACE 2005-HE7 004421TV5 Deutsche Bank
ACE 2006-ASAP1 004421VS9 Deutsche Bank
ACE 2006-ASAP2 004421XB4 Deutsche Bank
ACE 2006-ASAP3 00442VAA5 Deutsche Bank
ACE 2006-ASAP4 00441UAA8 Deutsche Bank
ACE 2006-ASAP5 004422AA9 Deutsche Bank
ACE 2006-ASAP5 004422AB7 Deutsche Bank
ACE 2006-ASAP6 00443KAA8 Deutsche Bank
ACE 2006-ASAP6 00443KAB6 Deutsche Bank
ACE 2006-CW1 00441QAA7 Deutsche Bank
ACE 2006-FM1 00441VAA6 Deutsche Bank
ACE 2006-FM2 00442CAA7 Deutsche Bank
ACE 2006-HE1 004421WJ8 Deutsche Bank
ACE 2006-HE1 004421WK5 Deutsche Bank
ACE 2006-HE1 004421WL3 Deutsche Bank
ACE 2006-HE2 004421YR8 Deutsche Bank
ACE 2006-HE3 00441TAA1 Deutsche Bank
ACE 2006-HE4 00442BAA9 Deutsche Bank
ACE 2006-NC1 004421UP6 Deutsche Bank
ACE 2006-NC2 00441XAA2 Deutsche Bank
ACE 2006-NC3 00442EAC9 Deutsche Bank
ACE 2006-NC3 00442EAD7 Deutsche Bank
ACE 2006-OP1 00442PAA8 Deutsche Bank
ACE 2006-OP1 00442PAB6 Deutsche Bank
ACE 2006-OP2 00441YAA0 Deutsche Bank
ACE 2007-ASAP1 00442JAA2 Deutsche Bank
ACE 2007-ASAP2 00442UAA7 Deutsche Bank
ACE 2007-ASL1 00443MAA4 Deutsche Bank
ACE 2007-HE1 00443LAA6 Deutsche Bank
ACE 2007-HE2 00443PAA7 Deutsche Bank
ACE 2007-HE3 00442GAA8 Deutsche Bank
ACE 2007-HE4 00442LAA7 Deutsche Bank
ACE 2007-HE5 000797AA8 Deutsche Bank
ACE 2007-SL1 00442FAA0 Deutsche Bank
ACE 2007-WM1 004424AA5 Deutsche Bank
ACE 2007-WM2 00442KAA9 Deutsche Bank

Securitization Name CUSIP Action

DBALT 2007-OA4 25151XAC5 Deutsche Bank
DBALT 2007-OA4 25151XAE1 Deutsche Bank
INDX 2005-AR31 45660LW39 Deutsche Bank
INDX 2006-AR9 45661EGE8 Deutsche Bank
MHL 2007-1 61915YAA9 Deutsche Bank
NCHET 2006-2 64360YAP0 Deutsche Bank
NHEL 2007-1 669971AA1 Deutsche Bank
RAST 2005-A15 45660L4E6 Deutsche Bank
RAST 2005-A15 45660L4F3 Deutsche Bank

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Posted in STOP FORECLOSURE FRAUD4 Comments

New Jersey vs Credit Suisse | Lawsuit Against Credit Suisse Arising From Sale of Over $10 Billion in Troubled Mortgage Backed Securities

New Jersey vs Credit Suisse | Lawsuit Against Credit Suisse Arising From Sale of Over $10 Billion in Troubled Mortgage Backed Securities

SUPERIOR COURT OF NEW JERSEY
CHANCERY DIVISION
MERCER COUNTY

JOHN
J. HOFFMAN,
Acting Attorney General of New Jersey on
behalf of
AMY KOPLETON,
Acting Chief of the New Jersey Bureau of
Securities,
Plaintiff,

v.

CREDIT SUISSE SECURITIES (USA) LLC,
CREDIT SUISSE FIRST BOSTON
MORTGAGE SECURITIES CORP., and DLJ
MORTGAGE CAPITAL, INC.
Defendants.

SUMMARY

1. This case arises out of defendants’ sale of billions of dollars in toxic residential
mortgage backed securities (“RMBS”) trust certificates to investors. These RMBS trusts
included, but are not limited to, the Home Equity Mortgage Trusts (“HEMT”) Series 2006-4,
2006-5,2006-6,2007-l and 2007-2, and Home Equity Asset Trusts (“HEAT”) Series 2006-4,
2006-5, 2006-6, 2006-7, 2006-8, 2007-I, 2007-2, and 2007-3. These securities were offered
between May 1,2006 and April 30,2007, through offering materials that misrepresented to
investors that, among other things: (1) the mortgages underlying the trusts would be in
“substantial compliance” with the unden¡witing standards of the originators of the loans; (2) each
loan originator not affiliated with Credit Suisse would originate loans “in accordance with
accepted practices and prudent guidelines;” (3) defendants employed “certain quality assurances
designed to ensure” that the correct loan underwriting criteria for certain originators would be
“properly applied;” and (4) none of the loans had a negative equity because their combined loan
to value (“CLTV”) ratios did not exceed one hundred percent.

2. These representations were false and misleading, and omitted to disclose material
information,inat least the following respects: (1) many of the loans were not in “substantial
compliance” with applicable underwriting guidelines, which had been largely disregarded in
order to maximize the amount of loans in the offering and therefore defendants’ profits; (2) the
loans had not been originated by entities that conducted themselves “in accordance with accepted
practices and prudent guidelines,” but had instead been acquired from originators with poor track
records characfeized by alarming levels of defaults and delinquencies; (3) signif,rcant numbers
of loans had a negative equity as reflected by the most recent CLTV ratios in defendants’
possession; (4) defendants’ traders had warned about the high risks of certain types of the loans
being securitized and had even eliminated them from their matrix of products they were willing
to purchase; and (5) defendants were pocketing for themselves tens of millions of dollars in
settlements with originators due to defects in loans that had been securitized without passing
those funds along to the trusts and the investors themselves. These facts were material because
they would have disclosed that the mortgages that made up the RMBS posed a high risk of
delinquency and default, which could – and ultimately did – inflict enorrnous losses on the
investors who purchased these securities.

3. Within a relatively short period of time after their issuance, the HEMT and HEAT
trusts reported skyrocketing rates of delinquency and default on the underlying loan pools. This
resulted in significantly reduced distributions to investors, and write downs in the principal of
underlying loans as they veered into foreclosure or bankruptcy. Standard & Poor’s, Inc. (“S&P”)
and Moody’s Investor Services, Inc. (“Moody’s”) (together the “Ratings Agencies”) ultimately
downgraded virtually all of these securities from investment grade to junk status. One of the
reasons cited for the downgrades was the “aggressive underwriting” practices in the initial
origination of the loans. Subsequent investigations and analyses of certain of these loan pools
have shown that many of the loans had violated the underwriting guidelines of the sellers who
originated the loans, but had nevertheless been waived into the trusts by defendants even though
third-party due diligence firms retained by defendants had found that many of the loans had been
originated in violation of the applicable guidelines. Billions of dollars in investor funds have
been lost as a result.

4. While this Complaint focuses its discussion on HEMT Series 2006-4,2006-5,
2006-6,2007-I and2007-2, and HEAT Series 2006-4,2006-5,2006-6,2006-7,2006-8,2007-1,
2007-2, amd 2007-3, upon information and belief, Credit Suisse’s other RMBS trusts issued
during this time period had similar records of false and misleading statements and material
omissions in their offering materials and had similar delinquency and default experiences.

[…]

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Posted in STOP FORECLOSURE FRAUD0 Comments

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