Category Archives: Banking industry

GMAC Ordered to Stop All Foreclosures in California

Per the Sacremento Bee, hat tip Foghorn Leghorn and Brian: California officials today demanded that Ally Financial Inc. stop foreclosing on homes in the state, citing reports indicating the big mortgage lender is violating the law. The cease-and-desist letter, issued by Attorney General Jerry Brown, came as officials in several other states began investigating Ally’s […]

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GMAC Told Freddie of Improper Affidavits Weeks Ago; Frank, Grayson, Brown Write “WTF” Letter

It isn’t surprising that given the potential consequences (revelation of widespread fraud, improper foreclosures, and big time difficulties straightening out the mess revealed), GMAC and other servicers have taken the “nothing to see here, drive on by” approach to reports that they forged affidavits and fabricated documents in order to be able to show courts […]

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Improper GMAC Affidavits Leading to Charges of Document Fabrication to Change Title

Ah, what a tangled web we weave when first we practice to deceive, said the bard. And the web emanating from the GMAC affidavit improprieties extend much further than most may realize. Although GMAC continues to maintain that having its “robot signor” officers like Jeffrey Stephan provide affidavits on matters they know nothing about is […]

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Why Backstopping Repo is a Bad Idea

The normally sound Gillian Tett of the Financial Times endorses an idea that is both dangerous and unnecessary, namely, government backstopping of the system of short-term collateralized lending called repo, for “sale with agreement to repurchase.” The problem with her analysis is that her proposal treats symptoms rather than the underlying ailment. It would amount […]

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Inside Job: A Movie Wall Street is Sure to Hate

Tom Adams and I saw an advance screening of the Charles Ferguson film Inside Job, a documentary on the financial crisis, due for theatrical release in New York on October 8. Given how well each of us knows the subject matter, we’re not easily swayed, but I can speak for both of us in giving […]

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Goldman Sex Discrimination Lawsuit: Bad Habits Die Hard

Three women filed a sex discrimination suit against Goldman seeking class action status. It has gotten some attention in the press and on the Web for not the best reasons, namely, the complaint recounts in some detail how one of the plaintiffs, Christina Chen-Oster a convertible bonds sales rep, had had a colleague force himself […]

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Lehman Black Hole Update: It’s Gotten Bigger!

The Financial Times provides an update on the Mess That Ate the Markets, circa September-October 2008. As we’ve harped on, Lehman’s bankruptcy advisors have been remarkably unhelpful in providing much insight on why the firm had such a big hole in its balance sheet. The previous estimate we had seen was $150+ billion (a swing […]

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Basel III vs Dodd-Frank on ratings agencies and risk weights

The disastrous twins, ratings agency credit ratings and RWAs (risk weighted assets), are still embedded in Basel III. Dodd-Frank does not like this much. The ratings agencies are still a big part of Basel III, though the December draft does allow for the alternative possibility of using bank-internal models for assessing credit risk. Alas, the […]

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Michael Hirsh on Wall Street and the Roots of the Crisis

Michael Hirsh, until very recently of Newsweek, now at the National Journal, is doing a star turn in connection with his new book, Capital Offense: How Washington’s Wise Men Turned America’s Future Over to Wall Street I must confess I blurbed his book (I find it a bit weird that I am now considered a […]

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Appearance on Max Keiser Show

Keiser is admittedly hyperbolic, but his colorful style has been effective in calling attention to some of the bad practices of financial institutions. This taping was on the day when I seemed to be the Typhoid Mary of studio operations. The audio kept failing (although the folks in NYC told me that happened often with […]

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How Serious is the GMAC Problem? Pretty Serious and Not Just GMAC

The news reports on GMAC Mortgage’s decision to halt evictions and foreclosure sales in 23 states, as originally reported by Bloomberg News, has generated keen interest in the mortgage and securitizaion communities. One reason is the oddly abrupt and broad nature of GMAC Mortgage’s action. GMAC Mortgage subsequently issued a rebuttal of sorts to the […]

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Steve Keen: Deleveraging With a Twist

By Steve Keen, Associate Professor of Economics & Finance at the University of Western Sydney, and author of the book Debunking Economics, cross posted from Steve Keen’s Debt Deflation. The latest Flow of Funds release by the US Federal Reserve shows that the private sector is continuing to delever. However there are nuances in this […]

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Grayson Calls on Florida Supreme Court to Halt Foreclosures

Representative Alan Grayson of Florida has asked the Florida Supreme Court to halt all foreclosures in the state in light of an investigation by its attorney general into allegations of pervasive foreclosure fraud by so-called “foreclosure mills”. Text below: September 20, 2010 Chief Justice Charles T. Canady Florida Supreme Court 500 South Duval Street Tallahassee, […]

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More on GMAC and Foreclosure Fraud Mess: “The Shit is Hitting the Fan” (Updated)

Various updates on the possible drivers of the GMAC announcement suspending its foreclosures in 23 states. Max Gardner, a North Carolina bankruptcy attorney who is held in high esteem and is playing a leading role in legal efforts against foreclosure fraud, provided this comment on our earlier post on the GMAC bombshell: I believe this […]

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