Posts Tagged ‘bank’

Northern Rock in Florida with a run on a fund

Written by Timothy Blake on November 29, 2007 under Archives, Economic Impact

Perceiving a problem with a Florida investment fund, investors withdrew about $10 billion in recent weeks before Florida halted any further withdrawals. Similar to run on U.K. bank Northern Rock, it shows how far this year’s subprime-fueled credit crisis has spread. Florida’s Local Government Investment Pool, which had more than $27 billion in assets at the end of September, is a money-market fund that’s supposed to invest in ultrasafe assets to provide participants with a secure place to stash spare cash.

Option ARM lawsuit may seek class action status

Written by Timothy Blake on November 28, 2007 under Adjustables (ARMs), Archives, Lawsuits, Lenders

A suit files in South Carolina alleges the borrower was not properly informed of how an option ARM actually works. The suit was filed Nov. 16 in U.S. District Court in Charleston and names as defendants World Savings Bank FSB of Oakland, Calif., and Golden West Financial Corp. and Wachovia Corp., both of Charlotte. Option AMRs were invented in the 1980′s for wealthy borrowers, but mortgage enthusiasts sold the products to anybody and everybody by 2005.

Did Countrywide foreclosures abuse the bankruptcy system?

Written by Timothy Blake on November 28, 2007 under Archives, Lawsuits, Lenders, Mortgage Fraud

The federal agency monitoring the bankruptcy courts has subpoenaed Countrywide Financial, the nation’s largest mortgage lender and loan servicer, to determine whether the company’s conduct in two foreclosures in southern Florida represented abuses of the bankruptcy system. The subpoenas for Countrywide documents were issued in late October by the United States Trustee after the agency announced an effort to move against mortgage servicing companies that file false and inaccurate claims in foreclosure cases. The inquiries into Countrywide by the trustee’s office, a division of the Justice Department, come as foreclosures are increasing across the country.

Watchdog calls for coordinated mortgage complaint database

Written by Timothy Blake on November 28, 2007 under Archives, Government Positions, Opinion, Risk Management

State Division of Banking offices examine the soundness and lending practices of licensed mortgage companies and are designed to prevent unscrupulous lenders and brokers from taking advantage of consumers. Watchdog organization Household – HSBC Watch called for a national database that would enable all states to coordinate data and perform trend analysis. “If an examiner sends a problem to a state Attorney General the AG’s office should be able to immediately see if the problem exists in the other 50 states” said the group.

Citigroup rumored to plan massive layoffs

Written by Timothy Blake on November 26, 2007 under Archives, Economic Impact, Job Losses

US business television channel CNBC reports that people inside Citigroup, America’s largest financial services firm, say the firm hasn’t set a target number of cuts from its roughly 320,000 employees. But people with knowledge of the matter have described the pending job reductions as “massive” and “large.” In April, Citigroup cut nearly 5% of its workforce, or 17,000 employees, a move by former Chief Executive Chuck Prince to reduce costs at the financial-services conglomerate.

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