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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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BFCSA: Australia, America - same TOO BIG TO FAIL BANKS problem. RMBS scams hurt the Economy!

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http://www.occupycorporatism.com/home/experts-forcing-banks-to-admit-

mortgage-fraud-hurts-economy/

 

Experts: Forcing Banks to Admit Mortgage Fraud Hurts Economy By Susanne

Posel – October 23, 2013

 

Dick Bove, bank analyst at Rafferty Capital Markets (RCM), warns banking institutions such as Wells Fargo, Bank of America (BoA), Wachovia and PNC Financial should be concerned about the Department of Justice (DoJ) suing JP Morgan & Chase Co (JPM) over mortgage-backed securities. Bove says that “the question that investors must ask is: ‘Will the government apply this set of precedents to JPMorgan Chase alone or will it now seek to extort funds from other banks involved in assisted mergers.

Since “all of these banks are guilty of the same things as JPMorgan. Forget JPMorgan, the government is going to go after every major bank with the potential civil lawsuits for tens of billions of dollars.”The prediction is that “the supposed settlement between JPMorgan Chase and the government affects stockholders, job holders, and the growth of the economy.

 

This could be just the beginning of the government’s activities not the end.”In the end, Bove asserts that the “potential fallout” of forcing “banks to admit guilt” could be “used by trail lawyers as evidence that the firm defrauded investors, and cost the big banks many more billions of dollars in both litigation costs and settlements.”Bove said: “If the banks in question are required to admit guilt, it will start a literal bloodbath of civil suits that will tie up the nation’s banking system so that it will be unable to lend money to assist the growth of the U.S. economy.

 

”Last September, Jamie Dimon and Attorney General Eric Holder at the headquarters of the DoJ to discuss settlement options after the DoJ threatened legal proceedings over JPM’s involvement in the mortgage-backed securities (MBS) fraud. Talks between Dimon and Holder involved a possible $11 billion to be paid to the government. Holder personally attended the meeting with Dimon which was described as “civil” by an unnamed source. This anonymous informant said that “the discussion centered partly on whether the bank could avoid criminal prosecution if it paid the fine and whether it would have to admit guilt.

Asked about the negotiations in an unrelated news conference, Holder acknowledged the meeting but snapped at a reporter who suggested that “prison time” was not part of the talks. ‘You weren’t in the room when I said I was talking to them,’ Holder said.”This includes no jail time for JPM executives while only paying a small fraction of the financial windfall JPM and others caused when the housing bubble was created and burst in 2008. -

 

See more at: http://www.occupycorporatism.com/home/experts-forcing-banks-to-admit-mortgage-fraud-hurts-economy/#sthash.9B6elkTj.dpuf

 

- See more at: http://www.occupycorporatism.com/home/experts-forcing-banks-to-admit-mortgage-fraud-hurts-economy/#sthash.9B6elkTj.dpuf

 

http://www.reuters.com/article/2014/03/07/us-jpmorgan-whistleblower-idUSBREA261HM20140307

JPMorgan whistleblower gets $63.9 million in mortgage fraud deal

Fri Mar 7, 2014

 (Reuters) - A whistleblower will be paid $63.9 million for providing tips that led to JPMorgan Chase & Co's agreement to pay $614 million and tighten oversight to resolve charges that it defrauded the government into insuring flawed home loans.  The payment to the whistleblower, Keith Edwards, was disclosed on Friday in a filing with the U.S. district court in Manhattan that formally ended the case.

In the February 4 settlement, JPMorgan admitted that for more than a decade it submitted thousands of mortgages for insurance by the Federal Housing Administration or the Department of Veterans Affairs that did not qualify for government guarantees.  JPMorgan also admitted that it had failed to tell the agencies that its own internal reviews had turned up problems.  The government said it ultimately had to cover millions of dollars of losses after some of the bank's loans went sour, resulting in evictions and foreclosures nationwide.  "There were a lot of bad loans made during the financial boom, and the United States taxpayer was left holding the bag through the VA and FHA loan programs," Edwards' lawyer, David Wasinger, said in a phone interview. "Hopefully the settlement sends a message to Wall Street that this conduct is not allowed, and that in the future it will be held accountable."  Edwards could not immediately be reached for comment...

Edwards, a Louisiana resident, had worked for JPMorgan or its predecessors from 2003 to 2008, and had been an assistant vice president supervising a government insuring unit.  He originally sued in January 2013 under the federal False Claims Act, which lets individuals sue government contractors and suppliers for allegedly defrauding taxpayers. The U.S. Department of Justice later joined as a plaintiff.  Whistleblowers can recover portions of False Claims Act settlements, which often grow if the government gets involved.  Wasinger also represented Edward O'Donnell, whose tips led to an October 2013 jury finding that Bank of America Corp was liable for fraud over defective mortgages sold by its Countrywide unit. The government is seeking $2.1 billion of penalties in that case.

.read more http://www.reuters.com/article/2014/03/07/us-jpmorgan-whistleblower-idUSBREA261HM20140307

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Comments

  • doyla66
    doyla66 Friday, 23 May 2014

    US Financial Industry Sword Rattling - or Blackmail ... No more excuses for Australia's Financial Sector

    There the financial industries go again - there won't be loans to help fix the US economy - bloodbath of cases - etc etc.
    Good to see the US Govt having what it takes to at least attempt to get some money back from JPM and Co - even if it is only a fraction of their gains. They should continue on with the other Banks that were part of the scam. That's only fair.
    If Banks and lenders are concerned about their legal costs and time taken up in court the solution is easy: don't waste money on a case you're going to lose now that some precedent has been set with JPM and Chase. But still no jail - they should shut up, wear the penalties and not complain!
    How about the payment for the whistleblower! Just imagine how much Denise and BFCSA would net if Australia valued whistleblowers for their enormous effort and contribution to reality based justice, often at considerable risk to themselves! Blowing the lid off Australia's RMBS Lo Doc Mortgage Scam in detail should result in honour and recognition, not denigration, lies, ignorance, suspicion and failure to act promptly on the information by regulators and the government. This is serious stuff - Australia needs to rebuild its financial sector integrity by cleansing it of corrupt practices, illegal conduct and widespread fraud. Until that happens our Banking and Financial success is built on shaky foundations indeed - and many people here and around the world know this. With the government reducing the supervision of the financial sector, it's definitely time for the Inquiry into Lo Doc Mortgage Fraud - without doubt - to answer the questions, exonerate the innocent borrowers and make mortgages safe for all Australians, not just sophisticated financial clients. Only then can Australians deal with caveat emptor and have some chance of making informed financial decisions for the well being of their families.
    Until that happens, stay out of the mortgage market, for your own safety. It's proven to be riddled with fraud as normal business practice!

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