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 […]
Read more...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 […]
Read more...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 […]
Read more...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 […]
Read more...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 […]
Read more...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 […]
Read more...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 […]
Read more...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 […]
Read more...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 […]
Read more...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 […]
Read more...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, […]
Read more...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 […]
Read more...In one trial I’m familiar with, but not one of these 23 states listed, the GMAC guy was on the stand twice, and the second time, it was pretty clearly established that he had perjured himself in his initial testimony. But I doubt the mother ship took note of that trial (no verdict rendered yet). […]
Read more...It is increasingly evident that the appointment of Elizabeth Warren to act as special advisor to the President and Treasury for the newly-established Consumer Financial Protection Agency has everything to do with Obama trying to shore up his questionable credentials as a reformer and perilous little with helping ordinary citizens. So the only question that […]
Read more...It may seem perverse to use a particularly strong piece by Martin Wolf of the Financial Times, who even on his rare less than stellar days is reasoned and readable, to illustrate a deep rooted problem even for critical thinkers in the mainstream media, namely, that certain ways of framing issues are simply off limits. […]
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