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  • Freddie Mac Bets Against American Homeowners
    house for it to go through The sale was finally completed in 2009 Such debacles hurt a borrower s credit rating But Bonnie has a solid job at a doctor s office and Jay has a pension from working for more than two decades for Johnson Johnson They say they haven t missed a payment on their current mortgage But the Silversteins haven t been able to get their refi Freddie Mac won t insure a new loan for people who had a short sale in the last two to four years depending on their financial condition While the company s previous rules prohibited some short sales in October 2010 the company changed its criteria to include all short sales It is unclear whether the Silverstein mortgage would have been barred from a short sale under the previous Freddie rules Short term Freddie s trades benefit from the high interest mortgage in which the Silversteins are trapped But in the long run Freddie could benefit if the Silversteins refinanced to a more affordable loan Freddie guarantees the Silversteins mortgage so if the couple defaults Freddie and the taxpayers who own the company are on the hook Getting the Silversteins into a more affordable mortgage would make a default less likely If millions of homeowners like the Silversteins default the economy would be harmed But if they switch to loans with lower interest rates they would have more money to spend which could boost the economy We re in financial jail says Jay and we ve never been there before How Freddie s investments work Here s how Freddie Mac s trades profit from the Silversteins staying in financial jail The couple s mortgage is sitting in a big pile of other mortgages most of which are also guaranteed by Freddie and have high interest rates Those mortgages underpin securities that get divided into two basic categories One portion is backed mainly by principal pays a low return and was sold to investors who wanted a safe place to park their money The other part the inverse floater is backed mainly by the interest payments on the mortgages such as the high rate that the Silversteins pay So this portion of the security can pay a much higher return and this is what Freddie retained In 2010 and 11 Freddie purchased 3 4 billion worth of inverse floater portions their value based mostly on interest payments on 19 5 billion in mortgage backed securities according to prospectuses for the deals They covered tens of thousands of homeowners Most of the mortgages backing these transactions have high rates of about 6 5 percent to 7 percent according to the deal documents Between late 2010 and early 2011 Freddie Mac s purchases of inverse floater securities rose dramatically Freddie purchased inverse floater portions of 29 deals in 2010 and 2011 with 26 bought between October 2010 and April 2011 That compares with seven for all of 2009 and five in 2008 In these

    Original URL path: http://www.911omissionreport.com/freddie_mac_bets.html (2016-02-14)
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  • Suit: Chase Bank ransacked home of man on his death bed
    They took 17th century paintings said Celeste Items that had been collected during a lifetime of service in the U S Navy were destroyed When I left this house everything was neat and clean in this room said Celeste Celeste s attorney says Chase J D s mortgage company is to blame One of the terms in the mortgage papers is that the bank has the right to enter the property if it appears that the home is abandoned so we believe that this event was orchestrated by the bank to allow the bank to initiate action against the Butler home said Chris Davis Celeste s attorney Chase says J D had fallen behind in payments And if a loan is delinquent Chase says it has the right to enter a house We followed our policy to maintain a mortgaged property especially during winter months when cold weather can damage property Chase said The contractor Chase hired left orange stickers where the plumbing had been winterized The mortgage company insists the house was disorganized when it initially checked on it But Celeste insists the payments had been made and the Port Angeles house was neat when she left it And

    Original URL path: http://www.911omissionreport.com/chase_ransacked_home.html (2016-02-14)
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  • How Goldman secretly bet on the U.S. housing crash
    request In May without admitting wrongdoing Goldman became the first firm to settle with the Massachusetts attorney general s office as it investigated Wall Street s subprime dealings The firm agreed to pay 60 million to the state most of it to reduce mortgage balances for 714 aggrieved homeowners Attorney General Martha Coakley now a candidate to succeed Edward Kennedy in the U S Senate cited the blight from foreclosed homes in Boston and other Massachusetts cities She said her office focused on investment banks because they provided a market for loans that mortgage lenders knew or should have known were destined for failure New Orleans public employees retirement system an electrical workers union and the New Jersey carpenters union also are suing Goldman and other Wall Street firms over their losses The full extent of the losses from Goldman s mortgage securities isn t known but data obtained by McClatchy show that insurance companies whose annuities provide income for many retirees collectively paid 2 billion for Goldman s risky high yield bonds Among the bigger buyers Ambac Assurance purchased 923 million of Goldman s bonds the Teachers Insurance and Annuities Association 141 5 million New York Life 96 million Prudential 70 million and Allstate 40 5 million according to the data from the National Association of Insurance Commissioners In 2007 as early signs of trouble rippled through the housing market Goldman paid a discounted price of 8 8 million to repurchase subprime mortgage bonds that Prudential had bought for 12 million Nearly all the insurers purchases were made in 2006 and 2007 after mortgage lenders had lifted most traditional lending criteria in favor of loans that required little or no documentation of borrowers incomes or assets While Goldman was far from the biggest player in the risky mortgage securitization business neither was it small From 2001 to 2007 Goldman hawked at least 135 billion in bonds keyed to risky home loans according to analyses by McClatchy and the industry newsletter Inside Mortgage Finance In addition to selling about 39 billion of its own risky mortgage securities in 2006 and 2007 Goldman marketed at least 17 billion more for others It also was the lead firm in marketing about 83 billion in complex securities many of them backed by subprime mortgages via the Caymans and other offshore sites according to an analysis of unpublished industry data by Gary Kopff a securitization expert In at least one of these offshore deals Goldman exaggerated the quality of more than 75 million of risky securities describing the underlying mortgages as prime or midprime although in the U S they were marketed with lower grades Goldman spokesman DuVally said that Moody s the bond rating firm gave them higher grades because the borrowers had high credit scores Goldman s securities came in two varieties those tied to subprime mortgages and those backed by a slightly higher grade of loans known as Alt A s Over time both types of mortgages required homeowners to pay

    Original URL path: http://www.911omissionreport.com/goldman_secretly_bet.html (2016-02-14)
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  • Ex-Goldman director charged with insider trading
    said Gupta was honored with the highest trust of leading public companies and he betrayed that trust by disclosing their most sensitive and valuable secrets SEC Enforcement Director Robert Khuzami said Gupta s attorney Gary Naftalis called the allegations totally baseless Naftalis noted that the SEC isn t accusing Gupta of trading in the stocks of the companies himself or sharing profits with Rajaratnam on the trades Gupta actually lost his 10 million investment in a hedge fund managed by Rajaratnam at the time he allegedly passed on the information Naftalis said The SEC s complaint lays out in moment to moment details its allegations of how the insider trading occurred It notes how often the two men spoke in September 2008 when Goldman was negotiating a deal with Buffett s investment firm At the time Wall Street was reeling from the failure of investment bank Lehman Bros Goldman CEO Lloyd Blankfein told the bank s board of a possible investment by Berkshire on Sept 21 Over the next two days Rajaratnam s funds bought 120 000 shares of Goldman He picked up one third of those shares while on the phone with Gupta the SEC said On Sept 23 Goldman s board agreed to the Berkshire deal during a call that ended at 3 53 p m Gupta called Rajaratnam once the call ended In the minutes before the market closed Rajaratnam bought 175 000 more Goldman shares Rajaratnam sold those shares the next day His profit 900 000 Goldman declined to comment Tuesday on the charges When Goldman appointed Gupta to its board of directors in 2006 the investment bank s release said that Gupta would serve on the Audit Compensation and Corporate Governance and Nominating Committees of the Board Rajaratnam a one time billionaire who is free on 100 million bail has pleaded not guilty to criminal securities fraud charges He has maintained that he traded only on information that was already public He is scheduled to go on trial next week in a probe that has resulted in criminal charges against more than 25 people Of those 19 have pleaded guilty to charges with the majority of them cooperating Jim McCarthy a spokesman for Rajaratnam declined to comment on the civil charges against Gupta The case against Gupta will be heard by an administrative law judge at the SEC That proceeding will determine whether Gupta should pay restitution and civil fines and whether he should be barred from serving as an officer or director of a public company the SEC said Gupta 62 of Westport Conn is also a board member of AMR Corp the parent company of American Airlines and chairman of Genpact Ltd a Bermuda based management contractor that is traded on the NYSE And he is on the board of Harman International Industries Inc a consumer electronics company based in Stamford Conn Gupta s list of achievements is long A guest of the White House at President Obama s first state dinner held

    Original URL path: http://www.911omissionreport.com/goldman_director.html (2016-02-14)
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  • Goldman person leaked Apple, Intel secrets: lawyer
    2007 and 2009 His trial is scheduled to begin in May In a letter he Brodsky said the government had a person who provided confidential information to Raj Rajaratnam about Apple and Intel Naftalis said There is also wiretap evidence substantial evidence of another source at Goldman Sachs Naftalis told U S District Judge Jed Rakoff the defense believed there is a much more circumstantial case that person should be sitting in the box rather than us The judge ended the late afternoon hearing but Brodsky and Naftalis continued to argue Brodsky declined to comment after the hearing A Goldman Sachs spokesman declined immediate comment Goldman has been in the spotlight this week with the public resignation of employee Greg Smith who said in a New York Times op ed that Goldman had become as toxic and destructive as I have ever seen it and was a place he no longer wished to work A person familiar with the Gupta case said in early March that prosecutors are investigating David Loeb a managing director of Goldman Sachs Loeb works with technology hedge fund employees including an Asia based analyst Henry King who is also under investigation according to another source

    Original URL path: http://www.911omissionreport.com/goldman_insider.html (2016-02-14)
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  • Goldman Sachs To Pay $22 Million To Settle 'Huddles' Probe
    YORK Dow Jones Goldman Sachs Group Inc GS agreed to pay 22 million to securities regulators to settle claims it inappropriately funneled trading ideas to preferred clients The securities firm will pay 11 million each to the Securities and Exchange Commission and the Financial Industry Regulatory Authority and agreed to the settlement without admitting or denying the charges Goldman also agreed to be censured subject to a cease and desist order and to review and revise its written policies and procedures on the matter The investigation focused on meetings from 2006 to 2011 called research huddles in which Goldman analysts allegedly discussed their top short term trading ideas and traders discussed their views on the markets according to the SEC The regulators said Goldman in 2007 began a program in which the analysts shared information and trading ideas from those huddles with select clients Goldman last year agreed to pay 10 million to settle a similar investigation by Massachusetts s securities regulator In previous regulatory filings following that settlement Goldman had said it was in discussions with the SEC and Finra concerning resolutions of their proposed charges A Goldman Sachs spokesman said we are pleased to have resolved this matter In the statement Thursday regulators said Goldman didn t adequately review discussions in the trading huddles to determine whether an equity research analyst may have previewed an upcoming ratings change In one such example Finra said a company analyst in a 2008 trading huddle said we expect companies with consumer and small business exposure to be under pressure in the current environment including the company The next day the analyst sought and received approval to downgrade the company from neutral to sell while Goldman published a research report reflecting that change In a statement Robert S Khuzami director of the

    Original URL path: http://www.911omissionreport.com/goldman_huddles.html (2016-02-14)
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  • How Paulson Gave Hedge Funds Advance Word of Fannie Mae Rescue
    with 3 5 billion at the time one of the biggest hedge fund launches ever Singh a former head of Goldman s proprietary trading desk also began his fund in 2004 in partnership with private equity firm Texas Pacific Group Ltd Lone Pine s Mandel worked as a retail analyst at Goldman before joining Julian Robertson s Tiger Management LLC one of the most successful hedge funds of the 1980s and 1990s He started his own firm in 1997 Och was co head of U S equity trading at Goldman before founding Och Ziff in 1994 The publicly listed firm managed 28 9 billion in November Goldman Alums One other Goldman Sachs alumnus was at the meeting Frank Brosens founder and principal of Taconic Capital Advisors LP who worked at Goldman as an arbitrageur and who was a protege of Robert Rubin who went on to become Treasury secretary Non Goldman Sachs alumni who attended included short seller James Chanos of Kynikos Associates Ltd who helped uncover the Enron Corp accounting fraud GSO Capital Partners LP co founder Bennett Goodman who sold his firm to Blackstone Group LP BX in early 2008 Roger Altman chairman and founder of New York investment bank Evercore Partners Inc EVR and Steven Rattner a co founder of private equity firm Quadrangle Group LLC who went on to serve as head of the U S government s Automotive Task Force Another person in attendance Michele Davis then assistant secretary for public affairs at the Treasury Department who now represents Paulson as a managing partner at public relations firm Brunswick Group Inc In an e mail response to Bloomberg Markets she referred all questions to Paulson s book on the financial crisis On the Brink Business Plus 2010 which makes no mention of the Eton Park meeting Paulson Thinktank Paulson is now a distinguished senior fellow at the University of Chicago where he s starting the Paulson Institute a think tank focused on U S Chinese relations Eton Park s Mindich Lone Pine s Mandel TPG Axon s Singh and Och Ziff s Och all declined to comment through spokesmen Reservoir s Stern didn t return phone calls Altman through a spokesman confirmed his attendance and declined to comment further Brosens confirmed in an e mail that he had attended and said he couldn t recall details A spokesman for Rattner acknowledged he attended and said he didn t trade in Fannie Mae or Freddie Mac related instruments after the meeting Chanos declined to comment A Blackstone spokesman confirmed in an e mail that GSO s Goodman attended the meeting Blackstone doesn t believe market sensitive information was discussed and in any event Blackstone didn t take any positions in Fannie or Freddie between the luncheon and Sept 6 he wrote Strong Short Interest Records show that many investors were betting against Fannie Mae and Freddie Mac at the time According to Data Explorers Ltd a London based research firm short interest in Fannie Mae shares

    Original URL path: http://www.911omissionreport.com/paulson_inside_trading.html (2016-02-14)
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  • Goldman Limits Facebook Investment to Foreign Clients
    regulatory scrutiny The transaction generated intense media attention following the publication of an article on the evening of January 2 2011 shortly after the launch of the transaction the firm said in its statement Monday Goldman had not been planning to initiate the offering that night but it sped up the process after The Times called the firm seeking comment according to an executive who spoke on the condition of anonymity because he was not authorized to speak That night a Goldman spokesman declined to comment Late that night before the report was published executives in Goldman s private wealth management unit e mailed their clients about the offering people who received the e mail said Goldman added in its statement on Monday that the decision was made on its own and was not required or requested by any other party Foreign investors will still be able to participate in the Goldman offering because they are not subject to the S E C rules on solicitation in private offerings However all partners of Goldman whether based in the United States or abroad will not be allowed to invest according to people briefed on the matter It is unclear how much money Goldman will raise for Facebook In a private memorandum to clients when it made the offering it said it planned to raise as much as 1 5 billion The minimum investment is 2 million The overall deal pegged Facebook s value at 50 billion While the offering was oversubscribed perhaps by as much as three times with American clients now ineligible to participate it is not clear whether Goldman or Facebook will lower the size of the offering A majority of Goldman s high net worth clients are based in the United States and these investors may be upset over being denied a potentially lucrative opportunity afforded to investors in Europe and Asia For Goldman executives who manage money for wealthy families so called special investments have long been a major selling point in luring clients to the firm The argument to prospective clients is that by placing their money with Goldman they have access to the same investment opportunities as the firm long considered one of the world s smartest investors The struggles of the offering may also deal a blow to Goldman s relationship with Facebook and to the firm s prospects of leading the social network s long awaited initial public offering expected in 2012 Over the last two weeks the companies relationship has grown increasingly tense people involved in the offering said Accusations about the news leak have flown back and forth these people said Goldman was brought in as a Facebook investor through its relationship with DST a Russian investment firm led by Yuri Milner which is a major Facebook shareholder and has invested in several other popular Internet companies like Groupon Within days of the news breaking about the offering the S E C began an inquiry looking both at the news reports

    Original URL path: http://www.911omissionreport.com/goldman_facebook.html (2016-02-14)
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