It has to be an all time record of all the CEO’s that have resigned these last two years.
Bloomberg-
Michael J. Williams has decided to step down as chief executive officer of Fannie Mae (FNMA), the mortgage finance company seized by U.S. regulators in 2008, the company announced.
Washington-based Fannie Mae made the announcement in a filing with the Securities and Exchange Commission. Williams will continue as chief executive officer and president until a successor is named.
* Suspicious envelope addressed to Deutsche CEO Ackermann
* Sources say it contained explosives
* Police say unclear who sent envelope
REUTERS-
An envelope containing explosives was sent on Wednesday to the head of Deutsche Bank Josef Ackermann — known as the face of capitalism in Germany — but it was intercepted before it reached him, a banking source and a U.S. law enforcement official said.
Police in Frankfurt confirmed that a suspicious package was sent to the bank’s headquarters in the city and that they were investigating. But a spokesman declined to say what it contained.
A former top U.S. official in charge of investigating the financial crisis said the government has concluded that many inquiries of wrongdoing by financial executives can’t succeed as criminal prosecutions.
“There’s been a realization and a more deliberate targeting by the Department of Justice before we launch criminally on some of these cases” said David Cardona, who was a deputy assistant director at the Federal Bureau of Investigation until he left last month for a job at the Securities and Exchange Commission. The Justice Department has decided it is “better left to regulators” to take civil-enforcement action on those cases, …
“the “New Man at MERS,” Bill Beckman was just
interviewed by Mortgage Technology Magazine and he
frankly admits:
“We did not have a robust process to
make sure that all the data on our system was
accurate, timely and reliable. Our view was that is
the servicer’s data and they’re relying on it for
their own transactions, they’re using their own
systems, so we don’t have to double check…Well, the
regulators took the perspective of, ‘No. You’ve got
your name on it. It’s your system. It is being used,
but you don’t know exactly the way it’s being used, so
there’s no reason those two things shouldn’t line
up.’”
Delaware Online-
Unfortunately, MERS has been making national headlines recently as the subject of politically motivated rhetoric and litigation, including in Delaware with Attorney General Beau Biden’s recently announced lawsuit. Critics of the MERS database are publicly blaming it for just about everything that went wrong in the housing industry, for local revenue problems, and even for some of Wall Street’s transgressions.
During 2009-2010, Fannie Mae & Freddie Mac lost $121.6 Billion and took $94 Billion from US taxpayers, who paid the top six executives as the government-owned mortgage giants more than $35 Million.
Let me start by saying, that no one was even qualified to run them making millions. It was at all times fraud and the cover up they have cost tax payers is insane. Lets not forget they got together with the “elites” to form MERS, knowing where it would find itself today with all missing papers.
Sadly, I bet you could only find an honest person $200,000 a year to run them!
HW-
Efforts to find a solution to the government-sponsored enterprises continue to spin in circles. This is especially frustrating for Federal Housing Finance Agency Acting Director Ed DeMarco and the CEOs of Fannie Mae and Freddie Mac.
To date, the only meaningful change is the move to abolish bonuses for the chief executives.
Sadly, this will only make things worse, as there is no one willing to do the job necessary to run the nation’s housing for $200,000 a year.
Take your pick of either REUTERS or BLOOMBERG to read the latest developing story.
Excerpt:
Freddie Mac, the mortgage finance firm controlled by the U.S., said Chief Executive Officer Charles E. Haldeman will step down and named Christopher S. Lynch to replace John Koskinen as non-executive chairman.
In case you want a refresher of Attorney Kathy Patrick you can read a letter from Attorneys for Bank of America, who fired back at her on November 4, 2010 about her “baseless allegations”.
Her $8.5 billion Bank of America settlement over bad mortgage deals was just the beginning. Now, backed by bond giants Pimco and BlackRock, Texas lawyer Kathy Patrick is gearing up for a new legal assault on the financial industry.
IN RE WELLS FARGO MORTGAGE-BACKED CERTIFICATES LITIGATION.
Consolidated Class Action No. 09-CV-1376-LHK (PSG).
United States District Court, N.D. California, San Jose Division.
October 13, 2011.
Kathy D. Patrick-Texas Bar No. 15581400, Scott A. Humphries-Texas Bar No. 00796800, Gibbs & Bruns LLP, Houston, Texas, Email: kpatrick@gibbsbruns.com, Email: shumphries@gibbsbruns.com.
.
(Pending Pro Hac Vice Admission), Charles M. Kagay-CBN 73377, Spiegel Liao & Kagay, LLP, San Francisco, California, Email: cmk@slksf.com, Attorneys for Neuberger Berman Europe, Ltd. and Bayerische Landesbank.
ORDER GRANTING APPLICATION FOR ADMISSION OF ATTORNEY ATTORNEY PRO HAC VICE
LUCY H. KOH, District Judge.
Kathy D. Patrick, whose business address and telephone number is 1100 Louisiana Street, Suite 5300, Houston, Texas 77002, (713) 650-8805 and who is an active member in good standing of the bar of Texas having applied in the above-entitled action for admission to practice in the Northern District of California on a pro hac vice basis, representing Neuberger Berman Europe, Ltd., as Agent for Sealink Funding, Ltd. and Bayerische Landesbank.
IT IS HEREBY ORDERED THAT the application Is granted, subject to the terms and conditions of Civil L.R. 11-3. All papers filed by the attorney must indicate appearance pro hac vice. Service of papers upon and communication with co-counsel designated in the application will constitute notice to the party. All future filings in this action are subject to the requirements contained in General Order No. 45, Electronic Case Filing.
BlackRock Inc. (BLK) Chief Executive Officer Laurence D. Fink, head of the world’s largest asset manager, said he understands the concerns of protesters speaking out against financial firms in New York and other cities.
“The protesting is a statement the future is very clouded for a lot of people,” Fink, 58, said yesterday during an event in Toronto. “These are not lazy people sitting around looking for something to do. We have people losing hope and they’re going into the street, whether it’s justified or not.”
If William K. Black and Janet would only team up to write a book?
HuffPO-
There were many factors that contributed to our recent financial bubble: deregulation, cheap money from the Fed, failure to enforce remaining regulations, crony capitalism, hubris, speculation, leverage, and fraud among other problems. While fraud wasn’t the only issue, it was and is a significant contributor to the credit bubble. Restraining fraud is a necessary but not sufficient condition for a sound financial system. Congressional investigations in recent years have put ample evidence of fraud in the public domain.
To illustrate just one type of malicious mischief, Senator Carl Levin (D. Mich.), Chairman of a senate investigative panel, issued a memo stating that Goldman ” magnified the impact of toxic mortgages.” The Wall Street Journal reviewed data showing that a $38 million subprime-mortgage bond created in June 2006 was referenced in more than 30 debt pool causing around$280 million in losses to investors by 2008. In other words, Goldman kept repackaging, reselling or protecting (buying credit default protection on) losers. It took the wrong kind of nerve for Goldman’s CEO to say he was doing “God’s work.”
New York prosecutors are widening their probe into the manner in which Goldman Sachs (GS.N) marketed certain mortgage-linked securities before the financial crisis, the Wall Street Journal reported, citing people familiar with the matter.
Bank of New York Mellon Corp said Robert Kelly, who has held the company’s top job since 2008, has stepped down as chairman and chief executive officer, following differences in approach to managing the company.
The company, one of the world’s largest custody banks, said it named board member Gerald Hassell as chairman and CEO, effective immediately.
Goldman Sachs Chief Executive Lloyd Blankfein has hired Reid Weingarten, a high-profile Washington defense attorney whose past clients include a former Enron accounting officer, according to a government source familiar with the matter.
MERSCORP Names Bill Beckmann New President & CEO, he will also lead the Reston-based company’s subsidiary Mortgage Electronic Registration Systems Inc.
During his tenure at CitiMortgage, the company had four million residential mortgage customers, representing over $800 billion in serviced assets. Beckmann had responsibility for strategy, sales, operations, capital markets, and regulation/compliance. Prior to this, he was president of Citigroup’s real estate servicing and technology group, providing customer service, technology and default management services to customers of CitiMortgage, CitiFinancial and Citi’s Auto business.
From 1997 to 2003 Beckmann was the chairman and CEO of The Student Loan Corporation. He has also worked in IBM’s Corporate Strategy and Internet Marketing divisions, Citigroup’s Card Products group, and European American Bank’s strategy department in various marketing, strategy, finance and treasury roles.
Beckmann is on the Boards of Junior Achievement of Mississippi Valley, Enterprise Community Partners and Enterprise Community Investments. He holds an M.S. in Management from the Stanford Sloan Program and a B.A. in Mathematical Economics from Brown University.
This is the second column in a series responding to Stephen Moore’s central assaults on regulation and the prosecution of the elite white-collar criminals who cause our recurrent, intensifying financial crises. Last week’s column addressed his claim in a recent Wall Street Journal column that all government employees, including the regulatory cops on the beat, are “takers” destroying America.
Washington, D.C., Feb. 11, 2011 — The Securities and Exchange Commission today charged three former senior executives at IndyMac Bancorp with securities fraud for misleading investors about the mortgage lender’s deteriorating financial condition.
The SEC alleges that former CEO Michael W. Perry and former CFOs A. Scott Keys and S. Blair Abernathy participated in the filing of false and misleading disclosures about the financial stability of IndyMac and its main subsidiary, IndyMac Bank F.S.B. The three executives regularly received internal reports about IndyMac’s deteriorating capital and liquidity positions in 2007 and 2008, but failed to ensure adequate disclosure of that information to investors as IndyMac sold millions of dollars in new stock.
IndyMac Bank was a federally-chartered thrift institution regulated by the Office of Thrift Supervision (OTS) and headquartered in Pasadena, Calif. The OTS closed the bank on July 11, 2008, and placed it under Federal Deposit Insurance Corporation (FDIC) receivership. IndyMac filed for bankruptcy protection later that month.
“These corporate executives made false and misleading disclosures about IndyMac at a time when the company’s financial condition was rapidly deteriorating. Truthful and accurate disclosure to investors is particularly critical during a time of crisis, and the federal securities laws do not become optional when the news is negative,” said Lorin L. Reisner, Deputy Director of the SEC’s Division of Enforcement.
According to the SEC’s complaints filed in U.S. District Court for the Central District of California, Perry and Keys defrauded new and existing IndyMac shareholders by making false and misleading statements about IndyMac’s financial condition in its 2007 annual report and in offering materials for the company’s sale of $100 million in new stock to investors. In early February 2008, IndyMac projected that it would return to profitability and continue to pay preferred dividends in 2008 without having to raise new capital. In late February 2008, Perry and Keys knew that contrary to the rosy projections released just two weeks earlier, IndyMac had begun raising new capital to protect IndyMac’s capital and liquidity positions. Specifically, Perry and Keys regularly received information that IndyMac’s financial condition was rapidly deteriorating and authorized new stock sales as a result. Yet they fraudulently failed to fully disclose IndyMac’s precarious financial condition in the 2007 annual report and the offering documents for the new stock sales.
The SEC further alleges that Perry knew that rating downgrades in April 2008 on bonds held by IndyMac Bank had exacerbated its capital and liquidity positions to the extent that IndyMac had no choice but to suspend future preferred dividend payments by no later than May 2, 2008. This material information was not disclosed in IndyMac’s ongoing stock offerings. Perry also failed to disclose in various SEC filings or a May 2008 earnings conference call that IndyMac would not have been “well-capitalized” at the end of its first quarter without departing from its traditional method for risk-weighting subprime assets and backdating an $18 million capital contribution.
According to the SEC’s complaint, Abernathy replaced Keys as IndyMac’s CFO in April 2008. He similarly made false and misleading statements in the offering documents used in selling new IndyMac stock to investors despite regularly receiving internal reports about IndyMac’s deteriorating capital and liquidity positions.
The SEC also alleges that in summer 2007 while serving as IndyMac’s executive vice president in charge of specialty lending, Abernathy made false and misleading statements about the quality of the loans in six IndyMac offerings of residential mortgage-backed securities (RMBS) totaling $2.5 billion. Abernathy received internal reports each month revealing that 12 to 18 percent of IndyMac’s loans contained misrepresentations regarding important loan and borrower characteristics. However, the RMBS offering documents stated that nothing had come to IndyMac’s attention that any loan included in the offering contained a misrepresentation. The SEC alleges that Abernathy failed to ensure that the quality of IndyMac’s loans was accurately disclosed and failed to disclose that information had come to IndyMac’s attention about loans containing misrepresentations.
Abernathy agreed to settle the SEC’s charges without admitting or denying the allegations. He consented to the entry of an order that permanently restrains and enjoins him from violating Section 17(a)(2) and 17(a)(3) of the Securities Act and requires him to pay a $100,000 penalty, $25,000 in disgorgement, and prejudgment interest of $1,592.26. Abernathy also consented to the issuance of an administrative order pursuant to Rule 102(e) of the SEC’s Rules of Practice, suspending him from appearing or practicing before the SEC as an accountant. He has the right to apply for reinstatement after two years.
The SEC’s complaint charges Perry and Keys with knowingly violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and aiding and abetting IndyMac’s violations of its periodic reporting requirements under Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-1 thereunder. Perry also is charged with aiding and abetting IndyMac’s reporting violations under Exchange Act Rules 13a-11 and 13a-13. The SEC’s complaint against Perry and Keys seeks permanent injunctive relief, an officer and director bar, disgorgement of ill-gotten gains with prejudgment interest, and a financial penalty.
The SEC acknowledges the assistance of the FDIC in this investigation.
# # #
For more information about this enforcement action, contact:
John M. McCoy III
Associate Regional Director, SEC’s Los Angeles Regional Office
(323) 965-4573
Kelly Bowers
Senior Assistant Regional Director, SEC’s Los Angeles Regional Office
(323) 965-3924
Donald W. Searles
Senior Trial Counsel, SEC’s Los Angeles Regional Office
(323) 965-4573
Remarks of R.K. Arnold
President and CEO of MERSCORP, Inc.
Before the
Subcommittee on Housing and Community Opportunity
House Financial Services Committee
November 18, 201
Excerpts:
The MERS database is important to individual borrowers because it provides a free and
accessible resource where borrowers can locate their servicers, and in many cases, learn who
their note-owner is as they change over time.
<SNIP>
To do this, MERS relies on specially designated employees of its members, called
certifying officers, to handle the foreclosure. To be a MERS certifying officer, one must be an
officer of the member institution who is familiar with the functions to be performed, and who
has passed an examination administered by MERS. Generally, these are the same individuals
who would handle the foreclosure if the lender was involved without MERS.
In my opinion if this is a correct statement than without reading into the rest we have a problem because you see in the image below these are not designated employees or officer of the “member institution”…but were or are employees of LPS. Not to mention the obvious issues. I am not an attorney.
Testimony of Mr. R.K. Arnold, 11/16/2010
Senate Banking, Housing and Urban Affairs Committee
Excerpt:
Under the corporate law in Delaware (where MERS is incorporated), there is no requirement that an officer of a corporation also be an employee of that corporation. A corporation is allowed to appoint individuals to be officers without having to employ those individuals or even pay them. This concept is not limited to MERS. Corporations cannot operate without officers; they can and often do operate without employees. It is not uncommon for large organizations to have all its employees employed by an operating company and for those employees to be elected as officers of affiliated companies that are created for other purposes (all corporations are required by law to have officers to act for it). Even for loans where MERS is not the mortgagee, employees of the servicer are generally delegated the power to take actions (e.g., initiate foreclosures) and execute documents (e.g., lien releases and assignments) on behalf of the owner of the loan (and the servicer, in turn, may further delegate such authority to a third-party vendor).
<SNIP>
If the note-owner chooses to have Mortgage Electronic Registration Systems, Inc. foreclose, then the note-owner endorses the note in blank (if it has not already done so), making it bearer paper, and grants possession of the note to a MERS certifying officer. This makes MERS the noteholder. Since MERS is already the mortgagee in the land records, MERS is now able to legally begin the foreclosure process on behalf of the note-owner.
SFF is in search of “THE AGREEMENT” that might exist between “MERS” and “NOTE-OWNER”, might be an actual Trust or Trustee. But this is not in public records.
“Our company’s process for preparing foreclosure affidavits was flawed”
“There were affidavits signed outside the immediate physical presence of a notary and without direct personal knowledge of the information in the affidavit”
Sorry about the quality…had to go with what I had at the time.
NOTE: Mr Arnold said there is 20,000 who sign 7 documents but not in this clip.
Ms. Diane E. Thompson Counsel National Consumer Law Center
Mr. R. K. Arnold President and CEO Mortgage Electronic Registration Systems, Inc
I wish I could have recorded this on HD so everyone can witness some of the lies the Bank Reps were telling. They are really out of touch with reality.
At one point when JPMorgan’s David Lowman began to speak some attendees stood up and yelled, then escorted out the room after a brief pause.
__
__
<SNIP>
SHELBY: I CAN SEE WHO OWNS THE MORTGAGE?
ARNOLD: There is no assignment if MERS is the Mortgagee
Problems in Mortgage Servicing From Modification to Foreclosure
Tuesday, November 16, 2010
02:30 PM – 05:00 PM
538 Dirksen Senate Office Building
The witnesses will be: The Honorable Tom Miller, Attorney General,State of Iowa; Ms. Barbara J. Desoer, President, Bank of America HomeLoans; Mr. David Lowman, CEO, Chase Home Lending; Mr. Adam J. Levitin,Associate Professor of Law, Georgetown University Law Center; and Ms.Diane Thompson, Counsel, National Consumer Law Center. Additional witnesses may be announced at a later date.
By Jody Shenn and David Mildenberg – Nov 5, 2010 4:21 PM ET
Bank of America Corp., responding to the attorney for a bondholder group that’s pushing the bank to repurchase soured home loans, demanded proof the lawyer is authorized to mount an attack on behalf of investors including units of BlackRock Inc. and MetLife Inc.
Wachtell, Lipton, Rosen & Katz’s Theodore N. Mirvis is among lawyers for Bank of America who said in a letter yesterday to Houston-based Gibbs & Bruns LLP’s Kathy Patrick that they want the names of individuals who approved signatures on a letter Patrick sent the Charlotte, North Carolina-based lender last month. They also want to know whether the board of directors for the bondholders Patrick said she represents approved signing of her correspondence.
“Troubling aspects of your letter strongly suggest that it was written for an improper purpose, or in furtherance of an ulterior agenda,” Bank of America’s attorneys wrote, saying they see no need to take action in response to Patrick’s letter.
Investors are stepping up efforts to recoup losses on mortgage bonds, which plummeted in value amid the worst slump in home prices since the 1930s. Bank of America Chief Executive Officer Brian T. Moynihan said Oct. 19 the lender will “defend our shareholders” by disputing any unjustified demands for mortgage buybacks.
Bank of America’s lawyers said they couldn’t determine “whether any investigation of your allegations is warranted” unless Patrick proves her clients own as much of the bonds created by the bank’s Countrywide Financial Corp. unit as they claim. Patrick also needs to show on a deal-by-deal basis how the bank is falling short of its responsibilities in servicing the home loans in the 115 securitizations at issue, they said.
Moynihan’s Surprise
Moynihan, 51, said yesterday that he was surprised by the Oct. 19 letter from investors, which included the Federal Reserve Bank of New York.
Moynihan’s company has resolved other debt disputes with the investors, and he has called BlackRock CEO Larry Fink to discuss the mortgage buyback issue, he said.
Patrick declined to comment.
Jerry Dubrowski, a spokesman for Bank of America, confirmed the letter’s authenticity and declined to comment further.
Lawyers Brian E. Pastuszenski of Goodwin Procter LLP and Marc T.G. Dworsky of Munger, Tolles & Olson LLP also signed the yesterday’s letter to Patrick, which was reported earlier today by the New York Times.
Do Not Print Letter Below (Poor quality and might not come out)
![[2] Testimony of R.K. Arnold President and CEO of MERSCORP, Inc. Before the Subcommittee 11/18/2010](https://stopforeclosurefraud.com/wp-content/themes/gazette/thumb.php?src=wp-content/uploads/2010/11/strawman2.jpg&w=100&h=57&zc=1&q=90)
In my opinion if this is a correct statement than without reading into the rest we have a problem because you see in the image below these are not designated employees or officer of the “member institution”…but were or are employees of LPS. Not to mention the obvious issues. I am not an attorney.
![[1] Testimony of R.K. Arnold President and CEO of MERSCORP, Inc. Before the Senate Committee 11/16/2010](https://stopforeclosurefraud.com/wp-content/themes/gazette/thumb.php?src=wp-content/uploads/2010/11/strawman3.jpg&w=100&h=57&zc=1&q=90)
SFF is in search of “THE AGREEMENT” that might exist between “MERS” and “NOTE-OWNER”, might be an actual Trust or Trustee. But this is not in public records.
![[UPDATE 3:15pm] R.K ARNOLD MERS CEO TO BE PRESENT Senate Banking Committee Hearing today, 11/16/2010 (Will be webcast)](https://stopforeclosurefraud.com/wp-content/themes/gazette/thumb.php?src=wp-content/uploads/2010/11/video.jpg&w=100&h=57&zc=1&q=90)
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