Federal investigators want to know whether executives at mortgage finance giants Fannie Mae and Freddie Mac misled investors and the public about risky mortgages in the lead-up to the 2008 financial crisis.
High-ranking sources with the Department of Justice told The Daily that the FBI and other federal authorities have launched investigations into the matter. The development comes as the Securities and Exchange Commission filed suit yesterday against six former top executives at Fannie and Freddie.
The suits represent the most aggressive moves to date by federal regulators against financial executives at the heart of the housing market meltdown.
The civil suits claim execs at Fannie and Freddie — …
Keep moving…nothing to read here….just more of the same
SEATTLEPI-
No charges will be filed against the leadership team of Washington Mutual Bank, which failed in 2008 amid a cloud of suspicion that improper lending had been occurring there.
Announcing the decision late Friday, a U.S. Attorney’s Office spokesperson said in a statement that a federal task force examining the WaMu failure did not find evidence of criminal violations.
“Investigators have conducted an extensive investigation that included hundreds of interviews and the review of millions of documents relating to the operations, and the subsequent failure, of Washington Mutual Bank,” the statement read. “Based upon its investigation, the Department of Justice has concluded that the evidence does not meet the exacting standards for criminal charges in connection with the bank’s failure.”
Former Washington Mutual Inc. (WAMUQ) Chief Executive Officer Kerry Killinger and Chief Operating Officer Stephen Rotella are in lawsuit settlement talks with the Federal Deposit Insurance Corp., according to a court filing.
Lawyers for Killinger, Rotella and David Schneider, Washington Mutual’s former home-loans president, exchanged term sheets with FDIC attorneys and are “diligently working to resolve their remaining disputes,” according to papers filed yesterday in federal court in Seattle.
“In some instances, the settlement terms must have consent of certain third parties,” lawyers for both sides said.
“Very Big Money Making Opportunities As The Market Deteriorates”
NYTimes:
In the summer of 2007, as the first tremors of the coming financial crisis were being felt on Wall Street, top executives of JPMorgan Chase were raising red flags about a troubled investment vehicle called Sigma, which was based in London. But the bank chose not to move out $500 million in client assets that it had put into Sigma two months earlier.
“The factual allegations are fiction. The legal conclusions are political theater. Trial in a courtroom that honors the rule of law — and not the will of Washington D.C. — will confirm Kerry Killinger’s management, diligence and commitment to Washington Mutual responsibly and consistently served the interests of its depositors, customers and shareholders.”
Killinger added: “Washington Mutual’s management structure was a model of corporate governance.”
By Zachary A. Goldfarb and David S. Hilzenrath, Friday, March 18, 1:08 AM
The Securities and Exchange Commission is moving toward charging former and current Fannie Mae and Freddie Mac executives with violations related to the financial crisis, setting up a clash with the housing regulator that oversees the companies, according to sources familiar with the matter.
The SEC, responsible for enforcing securities laws, is alleging that at least four senior executives failed to provide necessary information to investors about the companies’ mortgage holdings as the U.S. housing market collapsed.
Puget Sound Business Journal – by Kirsten Grind
Date: Friday, February 18, 2011, 2:41pm PST – Last Modified: Friday, February 18, 2011, 5:15pm PST
The Federal Deposit Insurance Corp. plans to file a civil suit against at least three former Washington Mutualexecutives, including former chief executiveKerry Killinger, seeking to collect more than $1 billion in damages, according to people familiar with the pending suit.
Killinger, former president and chief operating officer Steve Rotella and David Schneider, former president of the failed bank’s home loan division, all recently received legal notices informing them of the pending litigation, these people say.
The three executives were the highest-level officials in charge of WaMu’s mortgage operations. It’s unclear when or where the FDIC will file its suit.
Security officials are warning the leaders of major Wall Street banks that al Qaeda terrorists in Yemen may be trying to plan attacks against those financial institutions or their leading executives.
Intelligence officials stress the threats are general in
Intelligence analysts added they have a general but growing concern that operatives in Yemen may again try to send package bombs or biological or chemical agents through the mail to Wall Street bankers.
In recent weeks, the FBI‘ Joint Terrorism Task Force and NYPD officials have been briefing bank executives and their security departments on the nature of the threat information. Much of it gleaned from al Qaeda writings like ‘Inspire’ magazine that recently warned of attacks targeting financial institutions.
The latest “Inspire” issue also made reference to trying to use Anthrax in an attack, officials said.
Recent Comments