SEC finally sues New Century Financial Corp

From 2007 through 2009 Mortgage Blues reported on the subprime crisis. Daily articles highlighted a nation in turmoil as financial greed and abuse rocked the country. Now Mortgage Blues gets to report on the aftermath. Lawsuits continue to see America in search of a single culprit. In one such suit by the SEC three former …

Where was the Fed during Enron, subprime, and Madoff?

In an article by JON HILSENRATH that appears in the Journal, we note that World Bank President Robert Zoellick questioned the wisdom of giving the Federal Reserve more power over banks, as the Obama administration has proposed. In the text of a speech he is to deliver Monday at the Paul H. Nitze School of …

Breaking News – Fed to monitor subprime lenders starting in 2009

This is terrrible, ironic, and unfortunately it is still required. Years ago this proposal would have saved people from HSBC Finance, Citifinancial, and many others. Needless to say this decision is many years too late: The Federal Reserve announced Tuesday that it will extend its regulatory umbrella to cover a group of lenders that includes …

SEC is looking at originators, servicers, and big pictures

The SEC claims to be awake and actually doing something. The U.S. Securities and Exchange Commission expects to file additional subprime-related enforcement actions and has dozens of “very active” investigations underway, an SEC official said on Friday. Will this result in questions the SEC does not want to answer? Only a few days after Washington …