December 21st, 2009 
Before You Invest The 10 largest U.S. retail banking companies on the eve of the financial crisis:
1. Citigroup — The Fed let it gamble beyond its means, allowing the company to circumvent basic regulations requiring banks to hold capital reserves against unexpected losses.
2. Bank of America — Needed more than $45 billion in federal aid.
3.
Posted in Finance Fraud 
Tags: Bank Of America, Biggest Banks, Bumps And Bruises, Capital One, Capital One Financial, Capital Reserves, Chevy Chase, Chevy Chase Bank, Clean Bills, Fed Officials, J P Morgan Chase, Mortgage Lender, Regions Financial, S Board, Subprime Loans, Suntrust Bank, U S Bancorp, Unexpected Losses, Wachovia, Wells Fargo 
No Comments » December 9th, 2009 Before You Invest 
The U.S. Securities and Exchange Commission accused the three executives of trying to disguise New Century’s rapidly deteriorating performance from investors while releasing weekly internal reports entitled “Storm Watch.”
The 2007 failure of New Century, one of the largest independent providers of home loans to people with poor credit, rippled across the U.S.
Posted in Finance Fraud Tags: Angelo Mozilo, Brad Morrice, Civil Fraud, Civil Penalties, Countrywide Financial, Disgorgement, Dramatic Increases, Forerunner, Global Financial Crisis, Government Effort, Insider Trading, Loan Defaults, Mortgage Lender, Mortgage Lending, New Century Financial, New Century Financial Corp, Patti Dodge, Reuters, Securities And Exchange Commission, Subprime Mortgage Market No Comments » October 13th, 2009 Before You Invest The trial of two Bear Stearns hedge fund managers has begun today, with the men facing potential jail sentences of 20 years if they are found guilty of fraud.
Matthew Tannin and Ralph Cioffi are denying allegations they knew two hedge funds they were operating were close to collapse but did not tell investors.
When the hedge funds, which bet on the sub-prime mortgage market, collapsed in June 2007, investors lost $1.4 billion.
Less than a year after the funds collapsed, so did Bear Stearns itself, becoming one of the highest-profile casualties of the financial crisis.
Much of the evidence against the pair is expected to center on emails sent between the two men from November 2006 up to June 2007.
Prosecutors claim Mr Tannin and Mr Cioffi continued to encourage clients to invest in the hedge funds, despite both being aware of the coming financial storm.
In an email from March 2007 that was cited in the indictment, Mr Cioffi told Mr Tannin: “The worry for me is that sub-prime losses will be far worse than anything people have modelled.”
A few days later, Mr Cioffi emailed a colleague to say that while Mr Tannin could not decide whether the market was heading towards meltdown or merely becoming a fantastic buying opportunity, he believed meltdown was the more likely option.
Jury selection for the trial at the Federal District Court in Brooklyn started today (October 13th 2009) and proceedings are expected to last for around five or six weeks.
Last week, JPMorgan Chase, which bought out Bear Stearns, paid $55 million on behalf of both investment banks in order to settle allegations they were involved in a Ponzi scheme at American Business Financial Services (ABFS), a now-collapsed mortgage lender.
Credit Suisse and Morgan Stanley also paid out an additional $45 million after it was claimed the four Wall Street firms falsely created the impression that ABFS was still financially viable, despite it becoming insolvent in 2000.
All allegations of wrongdoing were denied by the companies.
Posted in Finance Fraud Tags: American Business Financial Services, Bear Stearns, Bear Stearns Hedge Fund, Business Financial Services, Credit Suisse, Federal District Court, Financial Storm, Fraud Trial, Hedge Fund Managers, Hedge Funds, Investment Banks, Jail Sentences, Jury Selection, Morgan Stanley, Mortgage Lender, Ponzi Scheme, Ralph Cioffi, Sub Prime Mortgage, Sub Prime Mortgage Market, Tannin No Comments » October 11th, 2009 Before You Invest JPMorgan Chase, Credit Suisse and Morgan Stanley have agreed to pay out $100 million over claims they were involved in a Ponzi scheme at the now bankrupt mortgage lender American Business Financial Services (ABFS).
The lawsuit alleged that ABFS had become insolvent in 2000, but created the impression it was still financially viable with the assistance of the Wall Street firms. Bear Stearns, which is now part of JPMorgan Chase, was also named in the lawsuit. George Miller, the ABFS’s bankruptcy trustee, was seeking at least $750 million from the banks on behalf of more than 20,000 people who lost their life savings when ABFS went bankrupt. JPMorgan Chase paid $55 million on behalf of it and Bear Stearns to settle the case, while Credit Suisse paid out $37.5 million and Morgan Stanley $7.5 million. The companies denied any wrongdoing. Last month, changes to the Security and Exchange Commission’s investigations policies into Ponzi schemes were recommended after it missed Bernard Madoff’s $50 billion worldwide fraud for years.
Posted in Finance Fraud Tags: 100 Million, 5 Million, Abfs, American Business Financial Services, Bankruptcy Trustee, Bear Stearns, Bernard Madoff, Business Financial Services, Chase Credit, Credit Suisse, George Miller, Jpmorgan Chase, Morgan Stanley, Mortgage Lender, Ponzi Scheme, Ponzi Schemes, Security And Exchange Commission, Wall Street, Wall Street Firms, Wrongdoing No Comments » April 9th, 2009 Before You Invest A federal judge in Los Angeles has thrown out shareholder claims of insider trading against all but one former executive of Countrywide Financial Corp.
U.S. District Judge Mariana Pfaelzer allowed the allegations contained in a shareholders’ lawsuit to remain against former Countrywide chairman and CEO Angelo Mozilo.
Posted in Finance Fraud Tags: Allegations, Bank Of America, Bank Of America Corp, Ceo, Chief Operating Officer, Countrywide Financial, Countrywide Financial Corp, District Judge, Federal Judge, Insider Trading, Judge Mariana Pfaelzer, Mariana, Mortgage Lender, Shareholder, Shareholders, Stanford Kurland, Stock, Trims No Comments »
