SEC Blows Easy Fraud Prosecution of Toxic CDO Salesman

By: Wednesday August 1, 2012 10:10 am

The SEC managed to lose a layup of a case against former Citigroup executive Brian Stoker, in a case which revolved around CDO sales where Citi has already agreed to pay fines on the grounds that they misled investors and took the other side of the bet. The jury literally gave the SEC a message.


Criminal Indictments in Credit Suisse Case Investigated Four Years Ago… By the Bank

By: Wednesday February 1, 2012 9:30 am

Four years ago, the bank Credit Suisse Group announced investigations of traders for misleading investors on the value of mortgage bonds. After four years, the US Attorney just got around to announcing indictments of the same people Credit Suisse handpicked as responsible. The announcement occurs just as the Administration wants to prove their bona fides on financial fraud, with their shiny new task force and everything.

SEC Doing Collusion Deals with Big Banks over Dodgy CDO Deals?

By: Friday October 21, 2011 8:42 am

I think Felix Salmon uses the right word – collusion. This is regulatory capture of the first order. It’s different from constructing deliberately complex and confusing rules that will never be administered, or just looking the other way at misconduct. This generates the illusion of regulatory enforcement while letting off the offending parties for next to nothing.

The exact same premise is at work with the Obama Justice Department’s attempted get out of jail free card for foreclosure fraud. It certainly makes the banks happy, but it’s also a primary reason why there are protesters in Zuccotti Park and across the country.

SEC Puts Standard and Poor’s on Notice for Civil Charges on 2007 MBS

By: Tuesday September 27, 2011 9:20 am

The SEC has told Standard and Poor’s that they may file civil charges over the rating agency’s role in a 2007 mortgage backed securities deal. The formal warning of potential imminent charges, known as a Wells notice, was delivered yesterday.

Law & Order Party Vs. Law & Order

By: Tuesday February 1, 2011 6:01 pm

Laws and rules are for the little people. Especially the ones without guns.

FDL Special Book Salon Welcomes Byron Georgiou, The Financial Crisis Inquiry Report: Final Report of the National Commission on the Causes of the Financial and Economic Crisis in the United States

By: Tuesday February 1, 2011 11:00 am

The Final Report of the Financial Crisis Inquiry Commission is a fascinating history of the Great Crash of 2008. Join us as FDL’s Ed Walker hosts a special FDL Book Salon chat with Commissioner Byron Georgiou about the FCIC’s findings.

Foreclosure Fraud Isn’t Mere Paperwork

By: Monday October 25, 2010 8:30 am

Foreclosure fraud is just the tip of the problems facing securitizers. Real Estate Backed Mortgage Securities are governed by a contract that imposes a wide array of rights and duties on each participant in the process. The process of working out the implications of those rights and duties will take a long time and a lot of judicial resources.

Video: Kaufman Confronts Goldman’s David Viniar About Shorting the CDOs They Pushed to Their Clients

By: Tuesday April 27, 2010 3:30 pm

Sen. Ted Kaufman asked David Viniar what Goldman Sach’s obligations were to its clients, and whether they should  have stopped selling mortgage-backed CDO’s to them when Goldman itself was shorting them.  Viniar didn’t see any apparent conflict of interest.

The Fall of Goldman Sachs?

By: Monday April 19, 2010 7:05 am

The last 72 hours have left Goldman Sachs with a shattered reputation among the people who matter to them, their customers and the politicians they have courted. The SEC’s civil fraud suit over one of their synthetic CDO deals is bad enough, but it’s just getting worse and worse for them.

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