Posts Tagged ‘OTS’
What happens when the country falls deeper and deeper into recession and some executives just don’t get it? As job losses continue to mount and executive bonuses come under fire John Thain seems to think he is above the fray.
This is a recap. Merrill Lynch & Co. Inc. said in a financial report that it has agreed to pay $550 million to settle separate class action lawsuits stemming from subprime loss disclosures. The Ohio State Teachers Retirement System, the lead plaintiff in one lawsuit brought on behalf of stock purchasers, agreed to a proposed settlement totaling $475 million in cash. The other suit was brought by employees, and was settled for $75 million.
When it comes to annoying lenders and mortgage servicers Saxon Mortgage Services Inc. takes the title as the most annoying, which reflects poorly on parent company Morgan Stanley. We are qualified to make that assessment for several reasons:
If subprime issues and tainted paper sold around the world didn’t start a global economic war a recent move might do so. Investors in bank debt are threatening to boycott lenders that follow Deutsche Bank in breaking an unwritten rule and failing to exercise a call option on subordinated debt.
In a coordinated action, angry bond investors are writing to bank treasurers and investor relations heads telling them that any failure to exercise a call option will be considered a breach of trust that could cause all the issuer’s debt to be shunned.
We receive reader input almost every day. Last summer we wrote about mortgage lenders and servicers that call customers, often before the due date. Many of those lenders are gone, erased from the financial landscape altogether. Nobody will miss them. But it seems Saxon Mortgage has joined this group. Calling customers well before the payment is due, Saxon seems to anger their customers. This lender bears considerable scrutiny. Panic by Saxon does not constitute an emergency for the home owner.