In more long-awaited fallout from the mortgage crisis, Federal prosecutors today sued the Bank of America and Countrywide Financial for a scheme to defraud the government via a program called "The Hustle."
Yes, they called it "The Hustle." Its purpose: allegedly to process home loans at high speed with quality control. Its effect: the creation of thousands of fraudulent or bad home loans, which led to more than $1 billion in losses and countless foreclosures, according to a statement from the U.S. Attorney's office.More »
|Congressman Steve Israel|
The banking behemoth says that the Americas co-head of fixed income and capital markets has since been put on leave, according to the New York Times.
Here's what supposedly went down: On Dec. 22., Jennings took a cab from a New York charity gala to his $3.6 million Darien, Conn. home. When he got there, he refused to pay the $200 fare, the cabbie claims. He's also said to have become abusive and started using racial slurs.More »
In a case that should resonate with the protesters down in Zuccotti Park, three San Francisco bank officials have been charged with fraud after receiving nearly $300 million in federal bail out money during the Bush era financial crisis.
United Commercial Bank CEO Thomas Wu, along with vice presidents Ebrahim Shabudin and Thomas Yu, allegedly falsified financial records and lied to auditors just prior to getting a $298 million bailout in October, 2008 from Bush's Troubled Asset Relief Program, authorities said. Craig On, the bank's ex-CFO, was accused of misleading auditors and assisting in filing false financial statements. Their motive, court records show, was to hide the true amount of their losses.More »
Earlier today we wrote of what appeared to be an Occupy Wall Street-related bank boycott planned for November 5th. We've spoken to Kristen Christian, the 27-year-old creator of the event, who has clarified some things. For one, it's not an Occupy Wall Street-organized event, though members of the Occupied movement support the idea and are planning to join in. Further, it's not an effort based in anarchy, or an event that Christian hopes will cause an economic crisis (any more than the one we're already in). "It's not people taking their money and burying it under their mattress. It's shifting the money to a company people respect the practices of. It's like, if you don't like Wal-Mart's practices, shopping at a local grocery store instead." More from Christian on Bank Transfer Day, after the jump.
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"There is a war going on in this country," he began. "I am talking about a war being waged by some of the wealthiest and most powerful people in this country against the working families of the United States of America, against the disappearing and shrinking middle class of our country."
How much does it cost to get out of the slimy grip of a dictatorial government? Try 500 G's. And that doesn't even get her friends off the hook! But the question remains: Who paid it?
Why aren't you more pissed off? Why is this story being underplayed?
No reason is given, but we suspect he did not wish to be questioned by the press that would attend such an event on yesterday's sentencing of Giuliani's former police commissioner, Bernard Kerik.
Liz Benjamin notes that another Friend of Rudy, campaign bundler Rabbi Milton Balkany, was indicted yesterday. The Grimm campaign says Giuliani's still endorsing, but that the formal ceremony would be "rescheduled."