US Rep. Marcy Kaptur: “LOOK AT THOSE OVER AT THE JUSTICE DEPARTMENT AND WHERE THEY WORKED BEFORE THEY GOT THERE”
WE NEED TO LOOK AT THOSE OVER AT THE JUSTICE DEPARTMENT AND WHERE THEY WORKED BEFORE THEY GOT THERE BECAUSE I THINK ONE OF THE REASONS PROSECUTION ISN’T THE LEVEL THAT IT SHOULD THERE IS SOME PARALYSIS IN SOME PLACES BECAUSE OF THOSE WHO ARE ABLE TO BLOCK A PLAY.

US Rep. Marcy Kaptur: “LOOK AT THOSE OVER AT THE JUSTICE DEPARTMENT AND WHERE THEY WORKED BEFORE THEY GOT THERE”

A publicly shamed audit: Justice Department, FBI, failed to jail mortgage fraudsters

Between 2009 to 2011, leadership at the Department of Justice stated publicly and repeatedly that tackling mortgage fraud was a top priority.

Today, that department’s Inspector General released an audit and concluded, despite the above claim, there is little proof the promise of high-levels of mortgage fraud prosecution ever took place.

“We… determined during this audit that DOJ did not uniformly ensure that mortgage fraud was prioritized at a level commensurate with its public statements,” said the audit, released today from Inspector General Michael Horowitz.

What did take place, however, was a high level of mishandling and lack of efficient law enforcement from a judicial level to effectively prosecute mortgage fraud cases, according to the audti.

The Federal Bureau of Investigation criminal investigative division in particular was lacking in prioritizing mortgage fraud. Despite nearly $200 million in funding…

As the dust from the financial crisis begins to settle, we learn that the lack of IRS enforcement of themortgage-backed securities industry bears blame for the financial crisis. The financial crisis began when lenders started making bad loans on a large-scale basis in the late ’90s and early ’00s. Big banks purchased these bad loans, bundled them into trusts, and sold interests in the trusts to investors worldwide. The interests in the trusts are mortgage-backed securities. The investors (financial institutions, pension and retirement plans, insurance companies, state and local governments and individuals) did not know the loans were bad, and paid inflated prices for the mortgage-backed securities. Now that the practices of lenders and banks are coming to light, borrowers and investors are seeking to recover losses through lawsuits. And it is obvious that better practices, as required by tax law and enforced through IRS audit, would have prevented or mitigated those losses.

Mortgage-backed securities are a vital part…

No, Americans Are Not All To Blame for the Financial Crisis: Exposing the big lie of the post-crash economy

mong my favorite anecdotes of the mortgage-industry decadence that preceded the global financial crisis is the one about Ameriquest’s wind machine. A motivational tool for managers, it made its appearance in the late ’90s at an executive conference at Las Vegas’s MGM Grand Hotel, where the future subprime leader hooked up a powerful fan to a plastic tent. Inside, exuberant branch managers jumped around amid a cascade of cash, allowed to keep as many swirling bills as they could grab.

That was how it went at mortgage-firm retreats: Here, a money-grabbing contest; there, a round of ritual chanting—“The power of yes! The power of yes!”—at a 2004 Washington Mutual gathering that was like the high ceremony of some bizarre money cult. Before long such incentivizing was part of the daily…

Fed Staff Suddenly Saw U.S. Economy in 2008 Needing Low Rate Era

Federal Reserve economists warned in December 2008 that five years could pass before growth revived enough to warrant raising interest rates from near zero, as the magnitude of the economic meltdown dawned on Fed officials.

The warnings, part of preparatory documents for policy meetings in 2008 released by the Fed yesterday, highlight the sudden alarm among central bank staff as the economy began to plunge in the worst downturn in seven decades. Six weeks earlier, the economists had predicted a contraction of no more than 1 percent and said the Fed could restore growth by lowering the main rate to 0.5 percent before tightening in 2010.

By the time of the Dec. 15-16 meeting, Fed staff warned that the central bank would simply be unable to “provide enough stimulus to generate a robust recovery with a relatively quick…

The Plaintiff sought a preservation order against the Defendants.  Young, at *2.

Judge Fogel summarized general preservation obligations in Federal Court, according to 9th Circuit precedent:

Parties to a civil action in federal court are under a duty to preserve evidence that they know is relevant or reasonably could lead to the discovery of admissible evidence. Leon v. IDX Sys. Corp., 464 F.3d 951, 959 (9th Cir. 2006). This obligation, backed by the court’s power to impose sanctions for the destruction of such evidence, is sufficient in most cases to secure the preservation of relevant evidence. Before additional measures to preserve evidence are implemented…

Ex-Dewey Executives Charged in Fraud That Destroyed Firm

Three former executives at Dewey & LeBoeuf LLP, once the No. 3 legal adviser to banks handling merger deals, were charged with a “blatant” $200 million fraud that spurred the largest law firm bankruptcy in history.

The three, including the chairman, executive director and chief financial officer, were accused of using accounting gimmicks similar to those that sent top executives at WorldCom Inc. and Tyco International Ltd. to prison a decade ago. Authorities cited e-mails in which the men referred to “fake income,” “cooking the books” and “accounting tricks.”

“Fraud is not an acceptable accounting practice,” ManhattanDistrict Attorney Cyrus R. Vance Jr. said today in announcing the charges. “The defendants are accused of concocting and overseeing a massive effort to cook the books” that “contributed to the collapse of a prestigious international law firm.”

UK prosecutor says has “vast amounts” of documents in Libor case

(Reuters) – British fraud prosecutors have sifted through “vast amounts” of documents in their case against three former Barclays traders alleged to have rigged crucial Libor benchmark interest rates over a two year period, a London court heard on Tuesday.

James Hines, a senior lawyer for Britain’s Serious Fraud Office (SFO), told a short hearing at Southwark Crown Court that much of the evidence against Peter Johnson, 59, Jonathan Mathew, 33, and Stylianos Contogoulas, 42, was in email form.

The three men, who are next expected to appear in court towards the end of July, bring to 13 the number facing criminal charges in Britain and the U.S. over allegations that they attempted to manipulate the London Interbank Offered Rate (Libor), a central cog in global financial markets against which about $450 trillion of financial products are pegged, from…