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Finally Wall Street Investment Banks And Mortgage Lenders “May Be” Held Accountable

Sep 02

filed under: Real Estate, Yada Yada

While good hard working people in this country have been losing their homes to foreclosure and short sales, we have been watching Wall Street’s investment banks, the very ones that were bailed out with taxpayer money, rake in billions of dollars in profits in the past couple of years. Same ole, same ole extravagant salaries and bonuses are the norm once again for the CEO’s and hedge fund managers. Well maybe, just maybe, and pardon the expression, but I do find it very appropriate and way past due “the shit’s about to hit the fan”.

As announced in the New York Times this afternoon “It’s Official, the Federal Housing Agency (FHFA) has unleashed a barrage of lawsuits against Wall Street investment banks and major mortgage lenders.”

The lawsuits are being filed against 17 financial institutions, the officers of the companies and unaffiliated lead underwriters. The alleged violations point to the breaking of securities laws that are related to the sale of private-label mortgage-backed securities to Fannie Mae and Freddie Mac. So here’s the list of defendants, I’d like to call them something else but it probably wouldn’t be appropriate. Recognize some of these names. .

  1. Ally Financial Inc. f/k/a GMAC, LLC
  2. Bank of America Corporation
  3. Barclays Bank PLC
  4. Citigroup, Inc.
  5. Countrywide Financial Corp.
  6. Credit Suisse Holdings (USA), Inc.
  7. Deutsche Bank AG
  8. First Horizon National Corp.
  9. General Electric. Co.
  10. Goldman Sachs & Co.
  11. HSBC North America Holdings, Inc.
  12. JPMorgan Chase & Co.
  13. Merrill Lynch & Co./First Franklin Financial Corp.
  14. Morgan Stanley
  15. Nomura Holding America, Inc.
  16. The Royal Bank of Scotland Group, PLC
  17. Societe Generale

To be honest, I’m not sure who the last three are, maybe that’s why they’re last. The majority of the others I have seen countless times when looking on the tax records to see who the lien holders are on a short sale or foreclosure listing. Many an agent has had to deal with these financial institutions on behalf of our clients who have painstakingly tried to save their homes from foreclosure or at least made an effort to sell their homes via the long and ridiculous short sale process. Sadly the odds have not been in their favor.

So maybe, just maybe, accountability may be out there. For these institutions to not to be held accountable and called out  for the role they played in the economic mess we now find ourselves in is not acceptable.  Oh I’m sure this will be a long drawn out process. Yes, it will probably end up in some kind of settlement that will not even come close to what taxpayers have had to spend to bail out these guys or keeping Fannie Mae and Freddie Mac afloat.

I want to say “whatever”, but that’s not good enough, I’m angry. This needs to be made right.  The details are yet to be released, but I promise you this is one I will be following very closely. At least this is a beginning.

Written by Howard Harris