Housing Has “Turned the Corner” – For Banks

By: Friday October 12, 2012 8:10 am

JPMorgan Chase, feeling little ill effects from the federal attempts at investigation of their business practices, announced a major earnings jump of 34%. Part of this comes from the fact that the previous earnings report included most of the losses from the Fail Whale trades (which have increased to $6.25 billion, as per this earnings report), so this comes off a low bottom. But in the earnings call, CEO Jamie Dimon attributed the strength to increased consumer lending, and he added that the housing market has “turned the corner.”

 

JPMorgan Chase Trying to Throw Its Traders Under the Bus for Fail Whale-Related Securities Fraud

By: Thursday October 11, 2012 9:19 am

JPMorgan Chase clearly wants to sell out its former traders and confine the blame to them. I never look a gift prosecution of corrupt bankers in the mouth, but the law stipulates that the top executives, including Jamie Dimon, are responsible for any fraudulent valuations delivered to shareholders. Period. Sarbanes-Oxley makes this incredibly simple. But JPMorgan has tossed the government a few bad (and small) minnows, and the government has so far taken the bait.

Schneiderman Signed Tolling Agreements With MBS Issuers to Extend Statute of Limitations

By: Friday October 5, 2012 10:40 am

A financial firm or any other defendant doesn’t allow a tolling agreement out of the goodness of its heart. It comes out of a negotiated process. The prosecutor gets to stop the clock on the statute of limitations but must give up something in return. Maybe they’re given the opportunity to stop Schneiderman from filing a case at all, or maybe they’ve moved immediately to the settlement phase. Or maybe Schneiderman got the tolling agreement in exchange for agreeing not to prosecute or name any individuals in the cases. A tolling agreement isn’t free, in other words. And it would be good to know the cost of this.

The Potential Conflict of Interest Issue Inside the Schneiderman/JPMorgan Chase Case

By: Wednesday October 3, 2012 9:28 am

Much thanks to FT Alphaville for highlighting my storyabout Eric Schneiderman’s lawsuit against JPMorgan Chase over Bear Stearns’ dodgy mortgage-backed securities deals. As I have stressed, nothing in this case indicates there’s been much new investigation at all, or participation from the federal task force. It borrows liberally from a lawsuit by mortgage bond insurer Ambac, which was filed by Karla Sanchez, a former litigator who now works in Schneiderman’s office as the Deputy AG for Economic Justice.

Timing and Scope: The Issues With the Schneiderman JPMorgan Chase Lawsuit

By: Tuesday October 2, 2012 11:35 am

the lawsuit against Bear Stearns on securitization fraud put together by Eric Schneiderman’s office is that it’s rooted in reality. My issues are primarily with timing and scope. There’s no reason this case couldn’t have been filed in 2011. There’s literally nothing in the case that advances what we knew from these other cases in any meaningful way. If the New York AG’s office wanted to pursue a parallel proceeding, they had every ability to do it in 2011, before the foreclosure fraud settlement. Now they’ve given up claims they could have pursued.

Schneiderman Sues JPMorgan Chase; Lawsuit Mirrors Old Cases

By: Tuesday October 2, 2012 6:10 am

The delay in bringing the case cost tens of billions of potential exposure for JPMorgan Chase. And more than anything, the lack of federal participation in the suit shows that the federal agencies involved in the task force are simply disinterested in prosecution, forcing Schneiderman to cobble together an off-the-shelf suit from other sources to make it look like this move against the banks represents anything real. The timing, one month before voters go to the polls in the Presidential election, is similarly obvious.

Fed Sends Taxpayer and Business Money to Banks via Interest Rate Swaps

By: Friday August 24, 2012 3:55 pm

Politicians don’t talk about real issues in campaigns. Interest rate swaps? Screwed savers? Who the heck cares? Too complicated, you people wouldn’t understand.

If Barofsky Didn’t Work Out, I Have Another Guest Possibility for CNBC

By: Thursday August 23, 2012 7:30 pm

I’d be a bit surprised to see Neil Barofsky grace the airwaves of CNBC again. But I have good news for CNBC. I have another exciting guest opportunity for them.

Goldman Sachs Profits Down, Compensation Up, Investors Flee

By: Tuesday July 17, 2012 3:30 pm

Goldman Sachs released its income and expense data for the second quarter of 2012. Revenues are up 4% from the first quarter, but down 17% over the same period last year, and for the first six months of 2012, they are down 13% over the same period last year. Compensation is a different story. For the first six months, compensation is 44% of revenues (p.4), compared with 42.4% for all of 2011.So shareholders get 3.5% of the revenues and insiders get 44%? Really? Whose money is at risk, again?

Snapshots of an Era of Bank Greed and No Accountability

By: Tuesday July 17, 2012 8:30 am

I thought that, given all the pervasive bank crimes over the last several years, we wouldn’t have a time when the roof appeared to cave in on the financial industry. But I’m getting that feeling today. All of the criminality and venality and greed seems to be coming to a head.

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