Tag Archives: banks

Moody Banks, Sad Ecomony

moodys

The American financial sector has taken another yet another hit today.  Moody’s downgrade of these 15 banks could not have come at a more dangerous time.  With unemployment starting to track up again, and this downgrade of major firms and securities that have global market reach, Greece, Spain, and the Eurozone all have economic problems which could cause a huge world wide financial crisis if anything is pushed further over the edge.  American citizens need reassurance that this “so-called” recovery is actually happening, not more devastating news about a faltering economy.

Earlier this year Moody’s announced that it would be reviewing some of the major financial institutions because of their, ” volatility and risks that creditors of firms with global capital markets operations face.”  The report continues, “ In the past, these risks have led many institutions to fail or to require outside support.” In the report issued today by Moody’s their Global Banking Managing Director Greg Bauer said, “All of the banks affected by today’s actions have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities,” Mr. Bauer continued, “However, they also engage in other, often market leading business activities that are central to Moody’s assessment of their credit profiles. These activities can provide important ‘shock absorbers’ that mitigate the potential volatility of capital markets operations, but they also present unique risks and challenges.”

The actions taken by  Moody’s today to downgrade 15 of these financial institutions was “reflected” in their reports that included factors such as capitalization, liquidity buffers, earnings from non-capital markets and their activities.  This downgrade hit 5 of the largest American banks, which among these institutions are Bank of America, Citigroup, Goldman Sachs Group Inc., JP Morgan Chase & Co., and Morgan Stanley.  Not only were major American institutions hit with this downgrade, but European banks were also downgraded, which will effect the markets world wide.  As a result of this downgrade issued by Moody’s today which sank the Dow by almost 250 points, causing more investors around the country and the world to lose more capital.

Bloomberg.com reported that,

A three-level cut for Morgan Stanley (MS) could cost it $400 million in annual trading revenue from those types of derivative deals, estimated Brad Hintz, an analyst at Sanford C. Bernstein & Co., before Moody’s released its decisions.

After some of the worlds largest financial institutions have taken a major downgrade today, recently the Italian Prime Minister, Mario Monti said that there is only a week to save the Eurozone.  This came ahead of the summit next week, in which he indicated that if the these talks result in failed policies, or no action, it could mean “a potential death spiral whose consequences would become more political than economic.”

As reported by the Guardian, some of the major players that will be involved in this summit will be;

The Italian leader is to hold talks with Chancellor Angela Merkel of Germany, the French president, François Hollande, and Spain’s prime minister, Mariano Rajoy.

Mario Monti spoke to the reporters of the Guardian, saying that, “there would be progressively greater speculative attacks on individual countries, with harassment of the weaker countries.” Mario continues, A large part of Europe would find itself having to continue to put up with very high interest rates that would then impact on the states and also indirectly on firms. This is the direct opposite of what is needed for economic growth.”

The Federal Reserve, with Chairman Ben Bernanke has spoken of a 3rd Quantitative Easing, which means that the Federal Reserve will just print money again, this will result in higher prices across the spectrum, because it will reduce the buying power of the dollar.  This may also impact oil prices due to the fact that crude is traded on the value of the dollar.  Country after Country is facing economic issues, one would wonder what will be the outcome, once every country runs out of money to lend to another?  When will it all stop?

US Consumers Continue to Leave the Branch; A New, “Virtual” Banking Segment is Rising and Threatens Traditional Bank Sales Systems

NEW YORK, March 21, 2012 /PRNewswire/ — New consumer research presented by the consulting firm Novantas at CBA Live 2012 today shows that banking customers increasingly prefer non-branch channels for a range of day-to-day banking transactions, from deposits, to solving service problems. As many as 35% of US banking customers are now “virtually domiciled,” essentially not using branches any more for their day-to-day banking needs. “The rise of virtually domiciled customers at banks is both a huge challenge and an opportunity for the industry,” said Novantas partner Kevin Travis, one of the study’s authors. “For traditional network banks, they are an untapped source of cross-sales, but they are also great targets for new entrant and direct players, from internet-only banks, to wealth managers and credit unions.”

These changes in customer preference and behavior mean branch volumes continue to fall, in some categories of transactions by as much as 20% year over year. As fewer customers walk in the door, banks face a sales crisis, with fewer “at-bat” opportunities to acquire new business. “The value of the sales force investment many banks have made has always been positive. Banks could count on a ‘if you build it, they will come’ model working in most markets. Today, that’s over.  Returns on sales force investments are likely negative for the industry and may not be coming back,” said Darryl Demos, Novantas partner and expert in bank sales and service staffing and processes.

For consumers, these findings show that many banks are continuing to invest in technology that improves their daily lives, and give them back the time they could have spent standing in line at a branch. The key question going forward is, will consumers be willing to give up branches as they use the new technologies. The research shows that levels of “branch attachment” remain very high, even in segments of customers that don’t use branches any more.

Robosigning to Robosettlement to Roboslaves

housing crisisLet’s keep this short and easy.  The banks own you.

They own your houses and most of your cars and your land and your government.  Oops, did I say that out loud.  Well if they didn’t, wouldn’t the government have actually punished the banks for the illegal, specifically fraudulent practice of “Robosigning”?  In stead they helped the banks in every way possible.

OK, if you heard anything form the lame-stream media, it was that the banks just got hit with a stiff $26 billion fine.  Fine.

Actually it was a “settlement.”   But that’s not all!  Of that $26 billion, over $20 billion worth are secured loans covered by Fannie & Freddie, pension funds, insurers, and 401(k)s  all backed by “we the taxpayers.”   In short, we take it in the shorts.

So, what the banks are left holding is $5 Billion, which is about $2000 per loan, or about 1% of the average $200,000 loan.  Oh, and the banks themselves are to report each loan and fine.  Good luck with that.

But wait, there’s more!  Having settled this, those huge bundles of low expectation loans are now worth much more.  Happy banks.  How much more remains to be seen, but certainly greater than 1% more.  So once again the banks get bailed out by … um … us.

But wait, there’s more!

It’s funny how “we the people” sounds like we’re in charge, but in the modern world of doublespeak it only means “we the burden bearers.”  So if you are one of those radical folks who are worried about becoming enslaved by some elite and powerful group, worry no more.  More and more of whatever you do for employment, you do for “da man.”  It is just a matter of who “dat man” is.  You might fight all those “Progressives” who have infiltrated and inflated our government, but who owns the government?

Well if the government were actually in charge, they would have done as any logical party who discovered and investigated blatant institutionalized fraud.  But no, the Federal task force didn’t use what they found to uncover a huge conspiracy between all banks.  After all such a coordinated widespread standard of fraud might kinda, maybe, suggests a conspiracy to those prone to such delusional thoughts that there is a deeper corruption, but our Federal task force decided to settle without a hearing.  This not only lets the bank structure off the hook, but shoots holes in State level suits as in New York, Massachusetts, and Delaware.

But wait!  There’s even more.  There is a new Federal Foreclosure Task Force to watch over us.  Doesn’t that make you feel better?  More tax money is being spent to pay more federal employees to ensure we don’t look any further behind the new curtain they have just pulled over our eyes.  Well that’s only if you call headlines that the settlement is a big victory for you, “a curtain.”

Don’t wait!  There’s always more.  Just uncover your eyes and spread the word.

U.S. Exports Hit $178 Billion in July

WASHINGTON, Sept. 8, 2011 /PRNewswire-USNewswire/ — The United States exported $178 billion in goods and services in July 2011, an all-time high, according to data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.

Exports of goods and services over the last twelve months totaled $2.005 trillion, which is 27.3 percent above the level of exports in 2009.  Over the last twelve months, exports have been growing at an annualized rate of 16.5 percent when compared to 2009, a pace greater than the 15 percent required to double exports by the end of 2014.

“Exports are a bright spot in our economic recovery, and it is critical that we encourage more American companies to compete in international markets,” said Hochberg. “I am pleased that U.S. exports are at an all-time high, and Ex-Im Bank is continuing to create and sustain U.S. jobs through our export financing products.”

Over the last twelve months, the major export markets with the largest annualized increase in U.S. goods purchases were Turkey (51.0 percent), Panama (36.3 percent), South Africa (36.1 percent), Argentina(35.1), Peru (33.8 percent), Brazil (30.2 percent), Thailand (29.0 percent), Hong Kong (28.8 percent),Taiwan (28.5), and Egypt (26.8).

Furthering U.S. export growth, the Export-Import Bank of the United States (Ex-Im Bank) has approved approximately $25 billion in total authorizations in FY2011 YTD – an all-time record. This total included more than 2,500 U.S. small-business transactions. Ex-Im Bank’s authorizations through August 2011 are supporting more than $30 billion in U.S. export sales and approximately 213,000 American jobs in communities across the country.

Government Causes Housing Crash Then Sues Everyone Else

housing crisisThe U.S. government on Friday sued 17 banking firms for their roles in the housing crash. The financial institutions are being accused of selling $196 billion dollars of now-toxic mortgage backed securities to Fannie Mae and Freddie Mac.

The Federal Housing Agency (FHA) filed suits against Bank of America, Citigroup, JP Morgan chase and 14 others. FHA is the government agency that oversees Fannie and Freddie which raises questions. Is this just a maneuver for Fannie and Freddie to recover some portion of the massive losses that they were responsible for taking on?

Fannie and Freddie have notoriously backed loans with questionable characteristics. So-called NJNA (no job no assets) loans and loans where the borrower was likely borrowing more than they could afford. This created the easy credit climate where banks, under pressure from regulators and community groups like ACORN, were pressed to make sub-prime loans. Now, the government is coming after them.

The law suits will likely have a chilling effect on the economy. Banks as a whole will now be even more timid about being involved with FHA loans that are backed by Fannie and Freddie in fear of reprisals in coming years should the housing crisis worsen.

The banks have spent the last three years rebuilding their balance sheets. Now, the legal fallout from the mortgage crisis is creating a new wave of liabilities for them and uncertainty for the financial system. News that the economy added no jobs in August and that the lawsuits were pending slammed the stock market Friday and sent bank stocks tumbling. – The Wall Street Journal

Making it more difficult for home buyers to get loans will continue to weaken housing demand and depress prices. Current home owners will continue to see their equity, and therefor personal wealth, dwindle.

Bank were pressured by progressive groups and Democrat lawmakers to make loans to lower-income buyers that in many cases could not afford the homes they were buying. In order to defray the risk, financial institutions then packaged up those mortgages into mortgage-backed securities (MBS) which Fannie and Freddie then bought – as did many other institutions.

The suits are specific to the mortgage-backed securities sold to Fannie and Freddie stating that the banks misrepresented that the securities met the FHA’s underwriting rules and overstated the ability of the borrowers to repay the loans.

While the President needs the banking industry to loosen lending rules to create any semblance of a recovery, having his administration go after the largest institutions able to do so will likely create yet another government impediment to growth in the economy.

On one hand the administration is asking these banks to make credit more available to home buyers and home owners while simultaneously suing them for having done just that in the past. That kind of uncertainty and mixed-messaging is precisely what is hindering an economic turn-around.

If the government wants to place blame, a closer inspection of FHA, Fannie and Freddie, and progressive housing policies should be their focus.
The institutions so far named in the law suits are: Ally Financial, GMAC LLC (or what was GMAC), Bank of America, Barclays, Citigroup, Countrywide, Credit Suisse, Deutsche Bank, First Horizon , General Electric, Goldman Sachs, HSBC, JPMorgan Chase, Merrill Lynch, First Franklin Financial, Morgan Stanley, Nomura Holdings, The Royal Bank of Scotland(RBS), and Societe Generale

MTBC Names Mavenir the Fastest Growing Tech Company in North Texas

DALLAS, Aug. 31, 2011 /PRNewswire/ — Mavenir Systems was named the winner of the Fast Tech Award on Friday, August 26th at the Metroplex Technology Business Council’s Tech Titans Awards Gala. The award presentation – sponsored by TravisWolff LLP, Comerica Bank and the Dallas Business Journal – revealed the list of the 35 companies as well as their ranking.

“We are pleased to announce that Mavenir placed number #1 on this distinguished list, growing at over 475% from 2008 to 2010,” said Pardeep Kohli, Mavenir’s president and CEO.

In its 11th year, the Fast Tech Award honors the fastest growing technology, media, telecommunications, life sciences and clean technology companies in the Dallas-Fort Worth Metroplex, based on revenue growth from 2008 to 2010. The ranking is compiled from nominations submitted directly to the Metroplex Technology Business Council (MTBC) as well as independent research using publicly available information conducted by the MTBC, TravisWolff LLP and Comerica Bank.

“Despite the most challenging global economy in 70 years, Mavenir and the rest of the North Texastechnology community have not only survived, but thrived,” added Kohli. “The key to that success is vision and leadership in enabling advanced wireless technologies like 4G LTE for mobile operators worldwide.”

“At the MTBC, we keep our finger on the pulse of what is happening in the tech industry in North Texas,” said Bill Sproull, president and CEO of the MTBC. “These fast growing companies are what makes our technology industry so vibrant…keep your eyes on them!”

In addition to being honored on-stage at the August 26th Tech Titans Awards Gala, Mavenir was also revealed as a Top Five Finalist for the Fast Tech Award at an invitation-only reception, sponsored by TravisWolff and Comerica Band, that was held Tuesday, August 16, 2011 at the Communities Foundation of Texas. Attendees included CEOs of many nominated technology companies as well as keynote speaker, Charlie Vogt, GENBAND, Tech Titan’s 2010 Corporate CEO of the Year.

As part of the reveal, Mavenir was paired with a fine HALL Napa Valley wine, and awarded a wine bottle etched with company logo as a trophy. Attendees were then invited to participate in a wine tasting of the five wines and learn more about the Finalists companies.

Michigan Economy Edges Down in June

COMERICA BANK LOGO / Comerica logo. (PRNewsFoto/Comerica Bank)DALLAS, Aug. 30, 2011 /PRNewswire/ — Comerica Bank’s Michigan Economic Activity Index edged down one point in June, to a level of 86.  The June index level is 15 points, or 21 percent, above the cyclical index low of 71.  Year-to-date, the index has averaged 88 points, three points above the average for all of 2010.

“The Michigan index gave back the small gains it made over the first three months of the year, finishing the second quarter at the same level as 2010 year-end,” said Robert Dye, Chief Economist at Comerica Bank.  “Weak motor vehicle sales, and weak vehicle production in the wake of the Japan earthquake, along with weak growth in nonfarm payrolls, held the index down in June. A third quarter rebound in the state’s auto sector should provide lift to the index in coming months.  However, downside risk to the broader U.S. economy and to the Euro-Zone economies remains elevated. The rapid decline in consumer confidence in August is particularly threatening to the auto sector. The good news is that there is ample pent-up demand for new cars, which would be unleashed in the presence of moderate job creation, stable gasoline prices and low interest rates.”

The Michigan Economic Activity Index equally weighs nine, seasonally-adjusted coincident indicators of real economic activity.  These indicators reflect activity in the construction, manufacturing and service sectors as well as job growth and consumer outlays.  A complete Index history is available upon request.

Comerica Bank is the commercial banking subsidiary of Comerica Incorporated (NYSE: CMA), a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Business Bank, The Retail Bank, and Wealth Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Michigan and Texas, Comerica Bank locations can be found in Arizona, California, and Florida, with select businesses operating in several other states, as well as in Canada and Mexico.

To receive this Index directly to your email inbox, go to www.comerica.com/econsubscribe to subscribe.

SOURCE Comerica Bank

CONTACT: Media, Robert Dye, +1-214-462-6839, [email protected], Data, Meaghan Derrick, +1-214-462-6815, [email protected], both of Comerica Bank

 

Mortgage Rates Inch Higher

NEW YORK, July 28, 2011 /PRNewswire/ — Mortgage rates turned course this week with the benchmark conforming 30-year fixed mortgage rate rising to 4.74 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.35 discount and origination points.

The average 15-year fixed mortgage moved up to 3.83 percent, as did the larger jumbo 30-year fixed rate, which is now 5.19 percent. Adjustable rate mortgages moved lower as well, with the average 5-year ARM sliding to 3.34 percent and the 7-year ARM falling to 3.57 percent.

Mortgage rates inched up this week as investors were worried by political gridlock over how to raise the national debt ceiling and cut the deficit. Industry analysts have made it clear that if the United Statesdefaults and the national debt is downgraded, mortgage rates could spike immediately. But the uncertainty over what Congress will decide over the next few days has already started to shake the mortgage world, as investors question if it’s still safe to invest in U.S. bonds.

The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.74 percent, the monthly payment for the same size loan would be $1,042.86, a difference of $199 per month for anyone refinancing now.

SURVEY RESULTS

30-year fixed: 4.74% — up from 4.68% last week (avg. points: 0.35)

15-year fixed: 3.83% — up from 3.82% last week (avg. points: 0.37)

5/1 ARM: 3.34% — down from 3.36% last week (avg. points: 033.)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

Renewed Calls on Obama and Democrats to Focus on America

NEW YORK, July 21, 2011 — Leading Independent and Senior Energy Executive Karl W. Miller today renewed calls for President Obama to start listening to senior industry executives and experts, resolve the U.S. real estate crisis, address depression era unemployment and put a credible national energy plan in place. The debt limit sideshow is a “red herring” and deferring focus away from the true problems facing the U.S. economy.

According to Mr. Miller:

The U.S. economy runs on three key factors: i) a stable housing market; ii) affordable and dependable energy supply; and iii) stable employment environment. Without these three critical factors functioning properly, there will be no meaningful economic recovery in the U.S. economy.

The U.S. Federal Reserve must stop subsidizing the defunct real estate loans in the residential and commercial marketplace which must be properly vetted, written down to net realizable value, and moved off the banks, hedge funds and insurance company books.

The U.S. regulators must force this to happen without preference for any specific group. There will be bankruptcies, bank failures and forced liquidations; these are the cold hard facts of a capitalist society, which the U.S. economy is founded upon.

Politicians must acknowledge where the U.S. economy and energy industry are today. We have serious and deep-rooted problems with no credible national energy plan in place and must start addressing these problems immediately.

The U.S. needs a credible and sensible energy policy and emissions plan. Subsidies and handouts do not work, never have and never will. Natural gas is not the “Holy Grail” but will remain a power generation fuel, heating fuel and select industrial manufacturing fuel. The U.S. has substantial cheap and dependable coal supplies which provide over fifty percent (50%) of the nation’s electricity generation.

President Obama and the Democrats failed to “recognize” the message that the American people sent them in November 2010 as the economy continues to decline, unemployment continues to grow and the real estate crisis continues to worsen.

It is time for Washington to take stock in America and start executing on a credible business plan. Failure to execute is cause for termination in Washington.

 

Study Reveals Impact of Real Estate ‘Shadow Inventory’ on Recovery

ATLANTA, June 30, 2011 /PRNewswire/ — Despite steady gains in key industry sectors, the nation’s housing market continues to exert pressure on the overall rate of economic recovery. While financial conditions across multiple financial sectors suggest economic stabilization and growth, delinquencies still exceed pre-recession levels due to continued turbulence in the mortgage marketplace, according to Equifax (NYSE: EFX) national credit trend research for May 2011.

Slowing today’s economic recovery are the challenges posed by high shadow inventory levels, which are contributing to the continued rise of severe mortgage delinquencies and write-offs. According to Equifax research, write-off dollars for home finance, which includes first mortgage and home equity installment loans as well as home equity revolving accounts, are still climbing and have yet to show signs of peaking. In fact, home finance write-offs reached $304.6 billion in 2010 compared to a combined total of $126.7 billion for 2006 and 2007.

Equifax data shows that severe delinquencies among these loan vintages have remained nearly constant since the first quarter of 2010. Further analysis reveals that as of May 2011 there are approximately$319.7 billion in 2006 and 2007 first mortgage vintages that are in the initial foreclosure process – many of which may be written off.

Real estate owned (REO) properties represent another roadblock to recovery. According to Equifax, first mortgage REO rates remain high as lenders struggle to divest of properties unsuccessfully sold through a short sale or foreclosure auction. While various factors over the last few years have led to fluctuations in the number of REO properties, REO rates since March 2011 are on the rise and causing continued economic strain. Equifax data shows that in May 2011:

  • Three percent of all U.S. first mortgages representing $21.8 billion were REO properties.
  • Foreclosure complete rates of 1.45 percent were almost in lock step with bankruptcy rates of 1.6 percent – suggesting that the majority of REO properties are the result of bankruptcy proceedings.

 

“Shadow inventory and real estate owned properties are still playing a dominant role in today’s mortgage market and slowing the pace of economic recovery. While we are seeing stabilization across multiple sectors of lending, there remains a significant volume of delinquent first mortgage loans, which has slowed the foreclosure process. Until these foreclosures are processed, the mortgage market will continue to impact economic growth,” said Craig Crabtree, senior vice president and general manager, Equifax Mortgage Services.

Mortgage Rates Reverse Course

NEW YORK, June 16, 2011 /PRNewswire/ — Mortgage rates increased this week, following a nine-week streak of declines. The benchmark conforming 30-year fixed mortgage rate is now 4.71 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.41 discount and origination points.

The average 15-year fixed mortgage jumped up to 3.86 percent and the larger jumbo 30-year fixed rate ticked up to 5.20 percent. Adjustable rate mortgages were higher also, with the average 5-year ARM rising to 3.40 percent and the 7-year ARM climbing to 3.63 percent.

Following nine straight weeks of declines, this week’s increase puts mortgage rates back to where they were the last week in May. The turnaround wasn’t spurred by economic news that was any better. It just wasn’t any worse. Further, the release of producer and consumer price measures for the month of May show inflation isn’t going away despite lower commodity prices. This is likely to put a floor under mortgage rates, pending any evidence of continued economic weakening.

The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.71 percent, the monthly payment for the same size loan would be $1,038.48, a difference of $203 per month for anyone refinancing now.

SURVEY RESULTS

30-year fixed: 4.71% — up from 4.65% last week (avg. points: 0.41)
15-year fixed: 3.86% — up from 3.79% last week (avg. points: 0.36)
5/1 ARM: 3.40% — up from 3.35% last week (avg. points: 0.33)

Mortgage Banking Giant Agrees to Pay Homeowner $30,000 as Part of Settlement Agreement

With pending counterclaims of fraud and predatory lending, Deutsche Bank agrees to pay defendant $30,000 and issue a letter to correct credit to settle a New Jersey foreclosure action

PHILADELPHIA, June 14, 2011 — Shaffer & Gaier, LLC announced today that its client has agreed to a $30,000 cash settlement with Deutsche Bank in an action filed by the banking giant to foreclosure on a New Jersey investment property worth approximately $65,000.00. As part of the terms of the settlement, the homeowner is entitled to retain the property and collect rental income for an expected period of 15-18 months, free of mortgage payment obligations, after which time he will walk away from the underwater property. The bank has also agreed to issue a letter to correct credit to the defendant, which will be distributed to the three credit bureaus to repair any credit blemishes caused by the suit.

Deutsche Bank, the plaintiff in this case, was acting as the trustee on behalf of Morgan Stanley ABS Capital Inc., Trust 2006-NC5, Mortgage-Pass Through Certificates, Series 2006-NC5, the mortgage pool that claimed to own the defendants loan. While the bank was able to produce an assignment dated and recorded prior to the filing of the foreclosure complaint, one of the most commonly raised foreclosure defenses, defense counsel was able to challenge the bank on several other issues of standing, but ultimately it was the counterclaims of fraud and predatory lending that drove the settlement.

Although predatory lending and fraud claims are common allegations in the foreclosure defense arena, foreclosing banks are usually successful at overcoming the charges with a “holder in due course” defense, hiding behind a securitization process that serves as smoke and mirrors for the true parties to a mortgage transaction. Michael Gaier, partner at the Philadelphia-based law firm of Shaffer & Gaier, LLC, with the help of his partner Michael Shaffer, and a team of mortgage experts, paralegals and associates, has dedicated the last two years of his life to crafting a legal argument that has survived summary judgment motions, overcome protective orders to depose high-level banking executives and gained nine dismissals or settlements in the last 10 weeks alone. “I’m especially pleased with the outcome of this case,” said Mr. Gaier. “This was not the most compelling story of our cases. It was an investment property that was purchased with a limited down payment and has been earning income for the last two years. The issue is that my client never should have been approved for this loan in the first place. The lenders grossly inflated his income on the application, and then hid that from him, and disclosed a rate and payment vastly different from what he ended up with at the closing table and pressured him to close with the threat of forfeiting a deposit. Bottom line is fraud is fraud. I anticipate there will be many more settlements going forward.”

 

EU Bailout Money Going to UK/ German Banks- U.S to Bailout Greece?

Many Americans were kind of surprised when German Chancellor Angela Merkel arrived for what was largely an unannounced White House visit recently. While many self-proclaimed political experts surmised that the main topic of discussion would be the ongoing three wars the U.S. is currently in, the real agenda has come out recently via thegatewaypundit:

After tripling the US deficit and with unemployment at 9.1% President Obama pledged US financial support to bail out Greece yesterday.
CNBC reported:

President Barack Obama on Tuesday urged European countries and bondholders to prevent a “disastrous” default by Greece and pledged U.S. support to help tackle the country’s debt crisis.

Obama, whose political prospects have suffered from persistently high unemployment and ballooning U.S. debt, has pinpointed the euro zone crisis as one foreign “headwind” hitting the U.S. economy.

After a meeting with German Chancellor Angela Merkel, he stressed the importance of German “leadership” on the issue – a hint that he expects Berlin to help – while expressing sympathy for the political difficulties European Union countries face in helping a struggling member state.

“I’m confident that Germany’s leadership, along with other key actors in Europe, will help us arrive at a path for Greece to return to growth, for this debt to become more manageable,” Obama said.

“But it’s going to require some patience and some time. And we have pledged to cooperate fully in working through these issues, both on a bilateral basis but also through international and financial institutions like the IMF.” (emphasis mine)

If that little tidbit doesn’t get American taxpayer’s blood boiling, this next one is certainly going to blow open some eyes and ears. Not only is Obama pledging stealth U.S. bailout dollars to be sent to Greece, who already has been bailed out numerous times, but the fact is that the money will  mainly go to German and  UK banks, not Greece itself! Big bankers, just like our very own wall street, have made irresponsible financial decisions, yet will not be held accountable for the losses they incurred by those actions in bailing out Greece with no real plan to fix Greece’s debt problem. Yes they called for the cutesy “austerity” measures, yet those measures are obviously either a huge failure, or this is all just a stealth plot to enable more never-ending Socialist wealth redistribution. Either way, we should be asking since Speaker Boehner supposedly holds the American taxpayer’s purse in the U.S. House of Representatives, just how can Obama decide to bailout big bankers in Germany and the U.K. under the guise of bailing out Greece without it passing through Congress? What say you Mr. Speaker?

Our friends over at birdflu666 exposed the fact about just who has been raking in the billions of bailout dollars that supposedly went to Greece, Portugal, and Ireland:

German economic advisor admits banks getting billions of eurozone bailout money, not Greece, Portugal or Ireland

Peter Böfinger, an economic advisor to the German government, said that the Berlin should come clean about the fact that the billions in eurozone bailouts are going primarily to German banks.

http://www.spiegel.de/wirtschaft/soziales/0,1518,762097,00.html

”[The bailouts] are first and foremost not about the problem countries but about our own banks, which hold high amounts of credit there,” he said.

Well, Peter, I do think more many people in Germany realise that Deutsche Bank and co are making record profits because of the money it is sucking out of the tax payers of Greece and Germany.

But I don’t think it is going to be of much cheer up to Germans already fed up with having to hand over their money to Deutsche Bank and co via national bailouts to find out that the rest is going to Deutsche Bank and co via international eurozone bailouts that violate the Lisbon Treaty (emphasis mine)

So the German people are not happy to hear that their tax dollars are being redistributed to the corrupt, in-bed-with-Merkel Deutsche Bank, while they make record profits. Kinda sounds like Bush/Obama and Goldman Sachs, Morgan Stanley , BOA and Citigroup here in the U.S. doesn’t it? Now that Obama’s crony-capitalism with those supposedly-Liberal-hated U.S. bankers has been exposed, I believe Obama has taken his Socialistic wealth redistribution overseas to try to disguise it as bailing out Greece. Oh what a tangled web we weave….when voting for the hope n change thieves. Wake up folks.

At least we now know the real reason Obama welcomed Merkel to the White House in a ceremony fit for a “Royal Queen.”

 

Mortgage Rates Lowest Since Thanksgiving

NEW YORK, June 2, 2011 /PRNewswire/ — Mortgage rates fell for an eighth consecutive week, with the benchmark conforming 30-year fixed mortgage rate falling to 4.69 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.39 discount and origination points.

SURVEY RESULTS

  • 30-year fixed: 4.69% — down from 4.75% last week (avg. points: 0.39)
  • 15-year fixed: 3.88% — down from 3.93% last week (avg. points: 0.37)
  • 5/1 ARM: 3.39% — down from 3.45% last week (avg. points: 0.37)

The average 15-year fixed mortgage dropped to 3.88 percent and the larger jumbo 30-year fixed rate retreated to 5.16 percent. Adjustable rate mortgages were mostly lower, with the average 5-year ARM resetting a record low of 3.39 percent and the 7-year ARM plunging to 3.64 percent, also a new low.

More weak economic data is increasing evidence that a summer soft patch has arrived — again. The loss of momentum means an even more sluggish recovery than was expected and that interest rates won’t be rising any time soon. This has been very beneficial to mortgage rates, both the fixed and adjustable rate varieties. Adjustable mortgage rates, such as the 5/1 and 7/1 ARMs, have moved to record lows. Fixed mortgage rates are at the lowest levels since last Thanksgiving. For many would-be refinancers, the turkey is indeed on the table with the opportunity to refinance at sub-5 percent rates. But with lower federal loan limits scheduled to take effect in October, waiting too long could mean missing the chance to lock in historically low fixed rates if the loan amount becomes ineligible for government guarantees.

The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.69 percent, the monthly payment for the same size loan would be $1,036.07, a difference of $205 per month for anyone refinancing now.

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