Fannie Mae, Freddie Mac and RBS roundup

Royal Bank of Scotland is eliminating 3,500 investment bank jobs and will sell or shut the bank’s equities and advisory business under a 3-year plan to further reduce risk. RBS said the bank will focus more on domestic retail and corporate banking. RBS, 83 percent owned by the UK government, on Thursday said it will …

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, …

Homeless Themed Law Firm Closes

Stephen L. Baum, the foreclosure mill law firm which generated controversy recently when pictures of a past Halloween party showed employees dressed as homeless people and foreclosure victims, will close its doors, they announced today. The party, while perhaps crude and thoughtless, didn’t cause the real problem. Fannie Mae and Freddie Mac recently dropped the …

List of lawsuits against major banks

The regulator overseeing Fannie Mae and Freddie Mac today sued many of the country‚Äôs biggest banks, claiming the government-owned entities were duped into buying tens of billions of dollars in mortgage securities that went south. In a news release, the FHFA detailed the banks it is suing. And its filings also detail the amount of …