FHFA has situational ethics here. They rail against states with long foreclosure timelines, even increasing their guarantee fees. But when faced with headlines about foreclosures during Christmas, they become beneficent, and act to increase foreclosure timelines.
|By: David Dayen Wednesday December 5, 2012 9:45 am|
|By: David Dayen Tuesday December 4, 2012 5:30 pm|
On both sides of the Capitol, there was news on the committee that holds oversight responsibilities over Wall Street today. In addition to Elizabeth Warren getting her spot on the Senate Banking Committee, Maxine Waters assumed the spot of ranking member on the House Financial Services Committee.
|By: David Dayen Monday November 19, 2012 7:52 am|
The second report from the Office of Mortgage Settlement Oversight has arrived, and it shows a continuation of one trend, tempered by the first batch of consumer relief in the form of actual principal reductions.
|By: David Dayen Thursday November 15, 2012 9:22 am|
This one offers a bit of vindication. I cannot tell you how much grief I got from “official sources” over the clear reality that banks would be able to pay off their penalties in the foreclosure fraud settlement with investor money. HUD Secretary Shaun Donovan flat-out said it, and then had to backtrack and obfuscate. But it was clearly set up by the terms of the settlement. Banks would get credit under the settlement for modifying loans in private label mortgage backed securities, which means the investors take the hit.
This became more clear in Bank of America’s side deal, where they would reduce their penalty through modifying loans they don’t own.
|By: David Dayen Wednesday November 14, 2012 3:25 pm|
After consolidating the financial sector rather than seeing it broken up over the last few years, Wall Street actually faces competition, in the form of big box retailers.
It shows you just how much trust banks have lost when people would rather do financial lending business with Home Depot or Sam’s Club.
|By: David Dayen Monday November 12, 2012 2:35 pm|
If anyone deserves a $6.7 million bonus, it’s the CEO who squandered 88% of his company’s stock value.
|By: David Dayen Sunday November 11, 2012 8:45 am|
Of all the thumbsuckers about the second-term Obama agenda I’ve read, the ones that reflect the least contact with reality concern Administration housing policy.
It’s beyond clear that the first-term policy framework sought to protect banks and allocate losses from the collapse of the housing bubble elsewhere. That was the point behind HAMP, designed to “foam the runway” for the banks, allowing them to squeeze out a few extra payments from borrowers and absorb foreclosures more slowly. That was the point behind the foreclosure fraud settlement, reacting to the largest consumer fraud in the history of the world by immunizing the conduct in exchange for a pittance of a fine. That was the point behind a financial fraud task force that turned up precious little financial fraud and sought criminal prosecutions of no individual.
|By: David Dayen Saturday November 3, 2012 11:06 am|
The sad thing here is that HUD Secretary Shaun Donovan actually highlighted the foreclosure reviews as a way for victims to get further compensation. If by “victims,” Donovan meant companies like PricewaterhouseCoopers and Promontory Financial Group, he was right.
|By: David Dayen Thursday November 1, 2012 8:37 am|
Barclays plans to challenge the fines. But they should be thrilled that their company stands accused of manipulating energy markets without any individuals actually committing the fraud. FERC proposed only fines for the individual traders who manipulated the markets. Similarly, the Justice Department had the opportunity to nail Barclays traders with criminal charges in the Libor case and passed on it. So bank fraud persists without the kind of accountability that puts the perpetrators behind bars.
|By: David Dayen Monday October 29, 2012 12:40 pm|
Taibbi is pretty polite about it, but Obama’s defense involves a lot of misdirection. It assumes that Lehman Brothers, by virtue of having failed, was the only financial institution out there responsible for the collapse, rather than an example of industry-wide behavior.