Enron, Sarbanes-Oxley and the subprime mess

The excesses of the current ‘subprime’ era are not the only excesses with ties to structured finance transactions. Many banks were sued by Enron Corporation. Enron filed suit in September 2003 against 11 banks, accusing them of conspiring with former Enron officials to manipulate the energy company’s finances. Enron says the banks helped set up …

19 indicted in foreclosure rescue scam, equity stripping

Federal officials announced the indictment of 19 people today in what they call the largest “foreclosure rescue” scam in the nation, one that allegedly took in more than $12 million and affected more than 100 homes. Officials with the FBI, IRS and the U.S. attorney’s office say the defendants ran an “equity stripping” scam targeting …

Clinton’s desire to protect lenders is questioned

Hilliary Clinton’s ruse to protect her friends while playing up to homeowners is so shallow it’s not even funny. Consider Whitewater and other “Clinton” dramas they wish you would forget about. Clinton proposed greater protections for lenders from possible lawsuits by investors, a variation of so-called tort reform. For years, GOP leaders have called for …

Out of the Ashes – PennyMac

A press release on March 24, 2008 announced new Private National Mortgage Acceptance Company, LLC (PennyMac). There will be some interesting developments due to the senior management of the newly formed company because of positions held at Countrywide Home Loans. Critics of PennyMac have questions regarding motives and opportunities for the newly formed company. Critics …