Sheila Bair (ex FDIC Chairwoman) has always understood. She was fired for understanding. It’s hard to understand that the TBTF banks were NOT speculating and never lost any money. Harder still to understand how they stole trillions of dollars from the US economy. And finally harder still to understand how “lenders” could cause a crash.

It’s really quite simple. Usually prices and values are within the same range. Fair market value has always been closely related to the ability of people to pay for housing — i.e., household income. Prices rise when demand becomes high OR, and this is the big one, when the big banks flood the market with money.

Like the 2008 crisis if you look at the Case Schiller Index, you will see that prices went through the roof by unprecedented increases while fair market value was flatlined. The crash was thoroughly predictable and was predicted on…

The big bank announced this week it is laying off 638 mortgage employees in California, Colorado, Florida and North Carolina, according to an article written by Hanna Levitt for Bloomberg.

The bank’s latest earnings report indicated it continues to struggle following its fake accounts scandal. Not only did the bank report a lower net income, its latest earnings report shows that although originations are increasing, it is still struggling with mortgage banking revenue.

Affected employees were informed of the upcoming layoffs on Thursday. Employees will be eligible to receive pay and benefits through Oct. 21, the company said.

However, employees unable to find another position within the company may be eligible to participate in the Wells Fargo salary continuation plan for separation benefits based upon the number of years of service with the bank, according to Wells Fargo’s SVP of Consumer Lending Operations Tom Goyda.

Read on.

NEW YORK (Reuters) – Goldman Sachs Group Inc (GS.N) was sued on Thursday by a former managing director who said the Wall Street bank retaliated against him and fired him after he complained about its dealings with an unidentified, “notorious European businessman.”

Christopher Rollins, now chief executive of BTIG Ltd, a London-based unit of investment banking and trading firm BTIG LLC, is seeking at least $50 million plus punitive damages in his complaint filed with the U.S. District Court in Manhattan.

The 2000 Harvard University graduate accused Goldman and Jim Esposito, promoted this week to global co-head of its trading business, of violating his rights as a whistleblower under the federal Dodd-Frank law, and also accused Goldman of defamation.

“The suit is without merit and we intend to vigorously contest it,” Goldman spokesman Michael DuVally said in an email, responding to a request for comment on behalf of…

Kelley v. USAA Fed. Sav. Bank (In re Jones), 580 B.R. 916 (Bankr. M.D. Ga. 2017) –

A chapter 7 trustee sought to avoid a lender’s lien on property of the debtor. The recorded deed of trust was not signed by the borrower since it was missing a signature page. The trustee argued that as a consequence the document was not eligible to be recorded, and thus did not provide constructive notice of the lender’s interests.