Mortgage Meltdown: How Banks Silenced Whistleblowers In-House Investigators at Banks Say Company Officials Ignored Their Warnings About Fraud
Amid the frenzy of the nation’s mortgage boom, the back-of-the-hand treatment that Parmer describes wasn’t out of the ordinary. Parmer was one of a small band of in-house gumshoes at various financial institutions who uncovered evidence of corruption in the mortgage business—including made-up addresses, pyramid schemes, and organized criminal rings—and tried to warn their employers that this wave of fraud threatened consumers as well as the stability of the financial system. Instead of heeding their warnings, they say, company officials ignored them, harassed them, demoted them, or fired them.
In interviews and in court records, 10 former fraud investigators at seven of the nation’s biggest banks and lenders—including Wells Fargo (WFC), IndyMac Bank, and Countrywide Financial—describe corporate cultures that allowed fraud to thrive in the pursuit of loan volume and market share. Mortgage salesmen stuck homeowners into loans they couldn’t afford by exaggerating borrowers’ assets and, in some cases, forging their signatures on disclosure documents. In other instances, banks opened their vaults to professional fraudsters who arranged millions of dollars in loans using “straw buyers,” bogus identities, or, in a few instances, dead people’s names and Social Security numbers. To read the full story of fraud encounters: Click Here
Goldman Sachs FRAUD Charges Filed By SEC Over Subprime Mortgage Securities
The SEC claims Goldman Sachs and one of its top officers misled investors by not disclosing that hedge fund manager John Pauson, who made billions betting against the housing market, selected the assets that went into a complex security called “Abacaus.” How does John Paulson relate? Well, ladies & gentlemen, he bought (with friends) the remnants of Indymac Bank. He was also in September 2008, prior to his purchase of the bank testifying before Congress on how to develop financial reform regarding the subprime mortgage lending- which he helped create. How odd.
To read the article CLICK HERE
To read about the Time Magazine article from November 2008, CLICK HERE.
IndyMac Attack: Did Schumer, Paulson, Soros, and the CRL Kill the Bank and Profit From Its Collapse? by Andrew Mellon
I have been saying this was in the cards from the beginning since July 2008. Now maybe it will come out in the dirty laundry being aired.
To read the article click here
J.P. And The Fat Cats By: Bruce Krasting Tuesday, April 20, 2010 9:08 AM
From iStockanalyst.com
This article gets particularly interesting on page two.
To Read more click here
The players in this Indymac- now OneWest Consortium:
Steve Mnunchin – Goldman Alum – Billionaire
John Paulson – Goldman Alum – Billionaire
J. Christopher Flowers – Goldman Alum – Billionaire
Robert Leeds – Goldman Alum – Billionaire
Michael Dell – Dell Computer – Goldman Client – Billionaire
George Soros – Big Goldman Client – Billionaire
There is some evidence that the FDIC has had some “sellers remorse” on the sale of Indymac assets. On 2/21/2010 they did a $2 billion deal where they sold more underwater mortgages. Based on the over collateralization of that transaction it would appear that similar pricing (haircuts) to the OneWest discounts were established. There was a big difference between the OneWest deal and the CMO that was recently done. This time around the FDIC kept the equity. What upside is in the portfolio is theirs to keep. The FDIC kept the equity on a $2b deal but gave it away to One West in a $16b deal. Way to go JP&Co.
There has been some criticism of the FDIC/OneWest deal. Some have suggested that the new owners of the Indymac mortgages have not been treating the old customers very well. Never mind that, what about the depositors who owed nothing to the bank, but lent it to them to give to bad debtors. Now they want to give the deadbeats yet another chance to default.
BANKING Regulators did little to halt reckless practices at WaMu…. Same as Indymac!
LA Times reporter By Jim Puzzanghera writes about how the OTS’s and FDIC’s lack of oversight and willingness to turn a blind eye to the obvious reckless practices caused the collapse of Washington Mutual.
Further Jim writes “The OTS gets the most heat because it was WaMu’s primary regulator. The agency, which supervises savings and loans, also has been criticized for its lax oversight of IndyMac Bank, a Pasadena lender that failed in 2008.”
Click here to read the story
Interim CEO, John Bovenzi discusses biggest bank to fail
John Bovenzi says “Indymac was messy”. Having lost many thousands of dollars myself, I’ll say.
Question…Where did all the depositor money go? Answer…Probably funding bad Fannie Mae and Freddie Mac home loans foe people who did not save for their future, but just gambled on it. I find it really odd how those people still make out (who took loans they could not repay) but the saver-DEPOSITOR loses!
To read the article, Click here!
“I’m 63 and I’m Tired” by Robert A. Hall; Robert A. Hall is a Marine Vietnam veteran who served five terms in the Massachusetts State Senate.
“I’m 63 and I’m Tired”
by Robert A. Hall
I’m 63. Except for one semester in college when jobs were scarce and a six-month period when I was between jobs, but job-hunting every day, I’ve worked, hard, since I was 18. Despite some health challenges, I still put in 50-hour weeks, and haven’t called in sick in seven or eight years. I make a good salary, but I didn’t inherit my job or my income, and I worked to get where I am. Given the economy, there’s no retirement in sight, and I’m tired. Very tired.
I’m tired of being told that I have to “spread the wealth” to people who don’t have my work ethic. I’m tired of being told the government will take the money I earned, by force if necessary, and give it to people too lazy to earn it.
I’m tired of being told that I have to pay more taxes to “keep people in their homes.” Sure, if they lost their jobs or got sick, I’m willing to help. But if they bought McMansions at three times the price of our paid-off, $250,000 condo, on one-third of my salary, then let the left-wing Congress-critters who passed Fannie and Freddie and the Community Reinvestment Act that created the bubble help them with their own money.
I’m tired of being told how bad America is by left-wing millionaires like Michael Moore, George Soros and Hollywood Entertainers who live in luxury because of the opportunities America offers. In thirty years, if they get their way, the United States will have the economy of Zimbabwe , the freedom of the press of China , the crime and violence of Mexico , the tolerance for Christian people of Iran , and the freedom of speech of Venezuela .
I’m tired of being told that Islam is a “Religion of Peace,” when every day I can read dozens of stories of Muslim men killing their sisters, wives and daughters for their family “honor”; of Muslims rioting over some slight offense; of Muslims murdering Christian and Jews because they aren’t “believers”; of Muslims burning schools for girls; of Muslims stoning teenage rape victims to death for “adultery”; of Muslims mutilating the genitals of little girls; all in the name of Allah, because the Qur’an and Shari’a law tells them to.
I’m tired of being told that “race doesn’t matter” in the post-racial world of Obama, when it’s all that matters in affirmative action jobs, lower college admission and graduation standards for minorities (harming them the most), government contract set-asides, tolerance for the ghetto culture of violence and fatherless children that hurts minorities more than anyone, and in the appointment of U.S. Senators from Illinois.
I think it’s very cool that we have a black president and that a black child is doing her homework at the desk where Lincoln wrote the Emancipation Proclamation. I just wish the black president was Condi Rice, or someone who believes more in freedom and the individual and less arrogantly of an all-knowing government.
I’m tired of a news media that thinks Bush’s fundraising and inaugural expenses were obscene, but that think Obama’s, at triple the cost, were wonderful; that thinks Bush exercising daily was a waste of presidential time, but Obama exercising is a great example for the public to control weight and stress; that picked over every line of Bush’s military records, but never demanded that Kerry release his; that slammed Palin, with two years as governor, for being too inexperienced for VP, but touted Obama with three years as senator as potentially the best president ever. Wonder why people are dropping their subscriptions or switching to Fox News? Get a clue. I didn’t vote for Bush in 2000, but the media and Kerry drove me to his camp in 2004.
I’m tired of being told that out of “tolerance for other cultures” we must let Saudi Arabia use our oil money to fund mosques and madrassa Islamic schools to preach hate in America , while no American group is allowed to fund a church, synagogue or religious school in Saudi Arabia to teach love and tolerance.
I’m tired of being told I must lower my living standard to fight global warming, which no one is allowed to debate. My wife and I live in a two-bedroom apartment and carpool together five miles to our jobs. We also own a three-bedroom condo where our daughter and granddaughter live. Our carbon footprint is about 5% of Al Gore’s, and if you’re greener than Gore, you’re green enough.
I’m tired of being told that drug addicts have a disease, and I must help support and treat them, and pay for the damage they do. Did a giant germ rush out of a dark alley, grab them, and stuff white powder up their noses while they tried to fight it off? I think Gay people choose to be Gay, I damn sure think druggies chose to take drugs. And I’m tired of harassment from cool people treating me like a freak when I tell them I never tried marijuana.
I’m tired of illegal aliens being called “undocumented workers,” especially the ones who aren’t working, but are living on welfare or crime. What’s next? Calling drug dealers, “Undocumented Pharmacists”? And, no, I’m not against Hispanics. Most of them are Catholic, and it’s been a few hundred years since Catholics wanted to kill me for my religion. I’m willing to fast track for citizenship any Hispanic person, who can speak English, doesn’t have a criminal record and who is self-supporting without family on welfare, or who serves honorably for three years in our military…. Those are the citizens we need.
I’m tired of latte liberals and journalists, who would never wear the uniform of the Republic themselves, or let their entitlement-handicapped kids near a recruiting station, trashing our military. They and their kids can sit at home, never having to make split-second decisions under life and death circumstances, and bad mouth better people than themselves. Do bad things happen in war? You bet. Do our troops sometimes misbehave? Sure. Does this compare with the atrocities that were the policy of our enemies for the last fifty years and still are? Not even close. So here’s the deal. I’ll let myself be subjected to all the humiliation and abuse that was heaped on terrorists at Abu Ghraib or Gitmo, and the critics can let themselves be subject to captivity by the Muslims, who tortured and beheaded Daniel Pearl in Pakistan, or the Muslims who tortured and murdered Marine Lt. Col. William Higgins in Lebanon, or the Muslims who ran the blood-spattered Al Qaeda torture rooms our troops found in Iraq, or the Muslims who cut off the heads of schoolgirls in Indonesia, because the girls were Christian. Then we’ll compare notes. British and American soldiers are the only troops in history that civilians came to for help and handouts, instead of hiding from in fear.
I’m tired of people telling me that their party has a corner on virtue and the other party has a corner on corruption. Read the papers; bums are bipartisan. And I’m tired of people telling me we need bipartisanship. I live in Illinois , where the “Illinois Combine” of Democrats has worked to loot the public for years. Not to mention the tax cheats in Obama’s cabinet.
I’m tired of hearing wealthy athletes, entertainers and politicians of both parties talking about innocent mistakes, stupid mistakes or youthful mistakes, when we all know they think their only mistake was getting caught. I’m tired of people with a sense of entitlement, rich or poor.
Speaking of poor, I’m tired of hearing people with air-conditioned homes, color TVs and two cars called poor. The majority of Americans didn’t have that in 1970, but we didn’t know we were “poor.” The poverty pimps have to keep changing the definition of poor to keep the dollars flowing.
I’m real tired of people who don’t take responsibility for their lives and actions. I’m tired of hearing them blame the government, or discrimination or big-whatever for their problems.
Yes, I’m very tired. But I’m also glad to be 63. Because, mostly, I’m not going to have to see the world these people are making. I’m just sorry for my granddaughter.
Robert A. Hall is a Marine Vietnam veteran who served five terms in the Massachusetts State Senate.
There is no way this will be widely publicized, unless each of us sends it on! This is your chance to make a difference.
AP IMPACT: Gov’t bank auditors got big bonuses
Matt Apuzzo of Associated Press writes this story:
AP IMPACT: Gov’t bank auditors got big bonuses
_”OTS examiners did not identify or sufficiently address the core weaknesses that ultimately caused the thrift to fail until it was too late,” Treasury’s inspector general said regarding IndyMac, which in 2008 became one of the largest bank failures in history. “They believed their supervision was adequate. We disagree.”
The government’s internal investigators surveyed the wreckage…Click here ….read the story!
The Indymac Slap In Our Face: A Fantastic, Succinct Video by THINKBIGWORKSMALL.com
Hey Barney Frank,
Here’s to you from us here at indymacdepositors.com for your urge to vote down the Honorable Congresswoman Jane Harman’s amendments that would quietly reimburse us to the tune of the new legislation, keep you from FURTHER embarrassment for robbing the LITTLE people, (then again maybe nothing embarrasses you).
Take a gander at this video, PLEASE. We know you will all agree with it, and have asked the creators for a copy which will allow us to post it in its purest form right on the web site, eliminating the need to click on a link. But for now, click here to view it in its pure, unadulterated truth:
Please comment on the site for these guys, they did an excellent job of explaining and simplifying the WINDFALL created by the FDIC for OneWest Bank.
What I really want to know boys and girls, is besides the investors at OneWest, is WHO else benefited or continues to benefit from this OUTRAGEOUS transaction that only a fool would enter into without benefit to his or herself.
Thank you from Lisa Marshall
Another Example of Too Big to Fail
This article chimes in regarding the banks which are deemed too big to fail. It cites Indymac, and how “The action by the Fed has drawn criticism from many quarters. It has bailed out an investment bank which managed funds for wealthy clients and has let a bank which specialised in mortgage lending fail. This sounds like public support for the wealthy and privileged while poorer people have to face the cold wind of capitalism.” This statement regarding Bear Stearns being too big to fail, and for which a new owner was found, but that Indymac was left hanging out in the breeze, since we were seen as “SMALL” depositors, who would not affect the flux of the markets, and how the US economy is viewed globally. Isn’t that nice?
Read the full story here: http://www.pdxpole.com/wild-parties-and-the-bank-of-england/