CBS confirms our claims of fraud investigation cover-ups

Eighteen hours ago, as I write this article, CBS News confirmed what our staff writers have known for years. The subprime mortgage crisis was caused by greed and economic incentives that outweighed potential fines. Then there were the fraud investigation cover-ups. “If you talk to people who work on the front lines, they’ll tell you …

Subprime fallout continues in 2012

It was the summer of 2007. We waited for mortgage lending to explode (or implode). If you recall, Bear Sterns had problems that shocked everyone, HSBC announced the first subprime mortgage losses, and Lehman Brothers said Lehman was not associated or affiliated with subprime borrowers. Bear Sterns is gone, Lehman had egg on their face, …

No class certification for BofA toxic adjustables

A federal judge rejected class certification for more than 500,000 borrowers who say predatory lending schemes made them fall victim to “toxic” adjustable-rate or subprime-mortgage loans offered by Countrywide and Bank of America. In their consolidated class action, which alleges RICO violations, unfair competition and other claims, homeowners say that Countrywide and other lenders engaged …

Bank of America slashes costs with 40000 layoffs

Bank of America Corp. is preparing to slash 40,000 or more jobs nationwide, a dramatic retrenchment that reflects the deepening woes of the country’s largest bank and the magnitude of the U.S. economic slowdown. The layoffs will come mainly from the BofA’s sprawling consumer-banking operations. Bank of America (BofA) hopes to fashion a smaller but …

Saxon Mortgage wrongfully forecloses on military personnel

WASHINGTON -(Dow Jones)- Subsidiaries of Bank of America Corp. (BAC) and Morgan Stanley (MS) will pay more than $22 million to settle charges that they wrongfully foreclosed on active-duty military members without first obtaining court orders, the Justice Department announced Thursday. In one settlement, BAC Home Loans Servicing, formerly known as Countrywide Home Loans Servicing, …