Yes, Virginia, Servicers Lie to Investors Too: $175 Billion in Loan Losses Not Allocated to Mortgage Backed Securities (and Another $300 Billion on the Way)

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Just In | FDIC Sues JPMorgan, Citigroup, BofA Securities, Deutsche Bank

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FDIC Sues Major Banks for $2.1 Billion that Pushed and Sold Residential Mortgage Backed Securities with False Statements About Quality

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Wells Fargo Wachovia Unit Faces Probe Over Mortgage Practices

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Eurozone Composite PMI October 2012: Eurozone Economy Endures Worst Month Since June 2009

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Massachusetts Senate Race 2012: Warren Win Is Big Wall Street Loss

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Wall Street Must Rebuild Obama Ties In Face Of Stricter Financial Regulation After Election Win

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Australian Judge rules Standard & Poor, the credit rating agency, misled investors with AAA ratings, the case will proceed

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In a 1,500 page opinion, a judge in Australia has ruled that a lawsuit against the rating agency, S&P, will go to trial.  This is the first of its type to survive, with those cases filed in the US usually dismissed on grounds that the ratings are merely the credit rating agency's exercising their First Amendment rights.

As noted in the article:

"The 1,500-page ruling marks the first time a rating agency has stood a full trial over a structured finance product. The decision will be closely studied by rival rating agencies and also by investors and investment banks around the world."

Keep an eye on this one.

Excellent article on the failure if various federal programs to help homeowners.

Wrong Turn: How Obama's Housing Policy Went Off Course: via HuffPost http://huff.to/QUnUYK

Excellent article on the history of the Collateralized Debt Obligation and the role of Fannie and Freddie

Read about it here on Bloomberg News

Justice Department's best friend in mortgage cases: the False Claims Act

Read about it here on Reuters

And yes, our office represents whistleblowers.  If you feel you have original information on a scheme / activity to defraud the government, please contact us to discuss potential claims.

Mortgage Fraud - the Crime of the Century

While this article really says nothing new, it sheds light on the elephant in the room, which was a major cause of the financial crisis (coupled with massive deregulation thanks to lobbying by those same banks and the Federal Reserve's policy of keeping interest rates low during the bubble): the massive amount of fraud lending institutions engaged in during the peak of the housing bubble (2004-2006). 

The claim that no one saw this coming is nonsensical.  Yet, it is repeated still today.  This helps the reader understand why those claims need to be shut down.  At some point, "truthiness" (a fabulous term coined by Stephen Colbert) has got to end, the truth has to be acknowledge, and people need to go to jail.  Period.

Check out the article on Forbes.com here:

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