Banks

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Proof That Crime Does Pay, Actually Very Well If You Are A Too-Big-To-Fail Bank CEO

Bank of America CEO Brian Moynihan received a hefty pay increase in 2012. It's reported that the CEO of America's poster child for mortgage malfeasance received $11.1 million in stock with a base salary of $950,000, bringing his total 2012 compensation to roughly $12 million. The news comes on the heels of numerous settlements between the bank and regulators which have helped to keep the bank operating as a viable entity, while also helping the bank's executives avoid any criminal prosecutions along the way.  See this, this and this. This news of Moynihan's big pay day will certainly come as [...]

By | 2013-02-20T12:53:46+00:00 February 20th, 2013|Economy, Politics, Spin Cycle|0 Comments

New York Fed Releases Bank Of America From Billions In Potential Legal Claims As AIG Suit Unfolds

If you thought the bank bailouts were a thing of the past, think again.  As Gretchen Morgenson reveals, the New York Fed was quietly making a deal to let Bank of America skate from what would likely have been billions in potential legal claims over toxic mortgage securities it purchased under an investment vehicle called Maiden Lane II. What did the NY Fed get in return? A paltry $43 million.  This settlement, gift-wrapped and hand delivered to Bank of America, comes while AIG is pursuing a $10 billion fraud case against Bank of America over the same toxic [...]

By | 2013-02-18T15:42:13+00:00 February 18th, 2013|Economy, Housing Policy, Mortgage Rates, Politics|0 Comments

Whistleblowers Reveal Orchestrated Coverup With Bank Of America Foreclosure Reviews

As usual, Yves Smith does the journalism community a favor by digging into the details of the underbelly of finance.  The latest story at Naked Capitalism involves the coverup surrounding the Bank of America foreclosure reviews which were halted by the OCC and Fed in favor of a $8.5 settlement whitewash involving major banks and servicers.  NC interviewed five contract workers who were working at the largest Bofa review site, Tampa Florida.  Part I of the NC piece reveals what the five reviewers estimated to be borrower harm relating to the abuses by Bofa: Reviewer A: 90% harmed, with [...]

By | 2013-01-23T16:42:37+00:00 January 23rd, 2013|Mortgage Rates, Politics, Real Estate, Spin Cycle|0 Comments

U.S. Banks Holding On To More Mortgages As GSE Fees Rise

An interesting discussion of mortgage retention at Financial Times.  It appears large U.S. lenders are keeping more newly-originated mortgages on their books, rather than selling them off to the GSE's for securitization.  Fannie Mae and Freddie Mac have roughly doubled the fees charged to lenders to guarantee loans, with the average cost of a GSE guarantee running approximately 52 basis points according to the report.  This is a good step forward in terms of growing the private lable mortgage business, but it could also mean that Fannie and Freddie are not receiving the best loans in [...]

By | 2012-12-18T15:23:33+00:00 December 18th, 2012|Mortgage Rates, Real Estate|0 Comments

JD Power – Quicken Best At Mortgage Lender Customer Service, Bofa Worst

No surprise here.  The latest J.D. Power 2012 survey of mortgage originator customer satisfaction shows that Quicken Loans topped the list, while Bank of America was dead last.  The industry average for lenders in the survey was up to 761 from 747 last year (based on a 1000 point scale).  Bank of America received a score of 696 in this year's J.D. Power Primary Mortgage Origination Satisfaction Study. Bank of America continues to deal with legacy litigation issues related to the Countrywide purchase, as well as numerous other failings. Bofa has lost market share in the mortgage business to Wells [...]

By | 2012-11-24T13:59:44+00:00 November 24th, 2012|Mortgage Rates|0 Comments

Why Are We Bailing Out The Banks?

David Malone asks a simple question in "Why are we bailing out the banks?".  His answer is amazingly straightforward and simple, with a wonderful analysis of just who supports all this money printing by the world's central banks to support various TBTF financial institutions. "Think of your own situation. How much of your wealth is held in the value of your house and how much in stocks and bonds? Almost all my wealth is contained in my  house.  The super rich, the top 1-10% hold much, much more of their wealth, vast bulk of it, [...]

By | 2012-11-02T14:36:29+00:00 October 9th, 2012|Economy, Politics|0 Comments

National Mortgage Settlement Update – Let Them Keep Eating Task Forces

A friend asked me yesterday where we stood on the national mortgage settlement, so I thought I would revisit the subject for an update.  I had written a number of articles earlier in the year outlining the various gifts bestowed on banks under the terms of the mortgage settlement, namely release of liability for a host of illegal activities and credits for things the banks would have done anyway when their hands were eventually forced by the market.  Naked Capitalism provided a nice summary of the mortgage settlement back in February. Subsequent reports indicate that settlement money [...]

By | 2016-09-29T14:01:15+00:00 August 26th, 2012|In the Press, Mortgage Rates|0 Comments

Wells Fargo Pays $175 Million Fine For Fair Lending Issues

In yet another example of the pay-for-play realm of American finance, Wells Fargo has agreed to pay a $175 million fine for allegations of fair lending violations.  Specifically, Wells was accused of discriminatory lending practices affecting more than 34,000 African-American and Hispanic borrowers in 36 sates, pushing the borrowers into higher rate subprime loans when they could have qualified for better prime rates. Of course, Wells denies the claims with no admission of guilt and no criminal prosecution but will pay the fine as a cost of doing business: "Wells Fargo is settling this matter solely for the purpose [...]

By | 2012-07-13T10:59:37+00:00 July 13th, 2012|Mortgage Rates|0 Comments

LIBOR Fraud “Largest Rigging Of Prices In The History Of The World By Many Orders Of Magnitude”

If you want to know why the LIBOR scandal is such a bid deal, Matt Taibbi and Bill Black summarize the issues rather well.  To put it in Layman's terms (pun intended) the American and international banking system has been exposed as a giant cesspool of fraud.   Bill Black and Max Keiser interviewed on Aljazeera's Inside Story.  Black enters the show at roughly 3 minutes in.  Keiser enters at roughly 7 minutes in. To get an idea of who the vicitims were in the LIBOR mess, just look at your local municipality. As Barry notes, a host [...]

By | 2012-07-06T14:26:22+00:00 July 5th, 2012|Economy, In the Press|0 Comments

Adjustable Rate Debt Holders Suffer In LIBOR Fraud Scheme – U.S. Banks Also Involved

As Jesse wrote earlier today, this is BIG news.  Sadly, I doubt we'll hear anything about it on the evening news.  The reason is simple.  It involves a number of major U.S. banks including Bank of America and JPMorgan Chase.  The fraud again exposes our financial system for what it truly is, a predatory landscape where fraud and corruption are just the normal course of business. For those who may be wondering, LIBOR stands for London Interbank Offered Rate.  LIBOR affects a host of financial products with variable interest rates, including adjustable rate U.S. residential mortgages and credit cards. Barclays traders were [...]

By | 2012-06-29T00:39:59+00:00 June 28th, 2012|Mortgage Rates|0 Comments