Corzine

Corzine Gets Sued!

Just when you think they all got completely away with it, along comes one government regulator, the CFTC.  The U.S. Commodity Futures Trading Commission issued a settlement with MF Global.   The firm settlement consisted of full restitution of the $1 billion customer money lost plus a $100 million fine.  Yet the CFTC also filed civil charges against former CEO Jon Corzine along with another MF Global executive, Edith O'Brien.

What's Up in Bankster Land?

bankstersIt might just be election time. We have Bank of America being sued for Countrywide's hustle, a program which pawned off bad mortgages onto Fannie Mae and Freddie Mac from 2007 to 2009. The U.S. District Attorney, Office’s Civil Frauds Unit in New York filed a civil complaint against BoA, who acquired Countrywide, for $1 billion.

The Complaint seeks civil penalties under FIRREA, as well as treble damages and penalties under the False Claims Act, for over $1 billion in losses suffered by Fannie Mae and Freddie Mac for defaulted loans fraudulently sold by COUNTRYWIDE and BANK OF AMERICA.

Manhattan U.S. Attorney Preet Bharara said: “For the sixth time in less than 18 months, this Office has been compelled to sue a major U.S. bank for reckless mortgage practices in the lead-up to the financial crisis. The fraudulent conduct alleged in today’s complaint was spectacularly brazen in scope. As alleged, through a program aptly named ‘the Hustle,’ Countrywide and Bank of America made disastrously bad loans and stuck taxpayers with the bill. As described, Countrywide and Bank of America systematically removed every check in favor of its own balance – they cast aside underwriters, eliminated quality controls, incentivized unqualified personnel to cut corners, and concealed the resulting defects. These toxic products were then sold to the government sponsored enterprises as good loans. This lawsuit should send another clear message that reckless lending practices will not be tolerated.”

Saturday Reads Around the Internets - Silicon Valley Sexism & Other Slimy Stories

shocknews Welcome to the weekly roundup of great articles, facts and figures. These are the weekly finds that made our eyes pop. Sometimes events are just tidbits of more injustice, absurdities and disaster.

 

Corzine Will Get Away With It

How many times have we seen this?

Friday Movie Night - Frontline's Cell Tower Worker Deaths & MF Global

hot buttered popcorn It's Friday Night! Party Time!   Time to relax, put your feet up on the couch, lay back, and watch some detailed videos on economic policy!

 

This week's videos are two shorts by PBS Frontline. The first is about workers falling from Cell Towers. At first you might think, that's an easy fix through safety and regulation. Think again. Literally young boys are climbing up cell towers for $10 bucks an hour. It's a poster child for what has happened to work in America. The cheapest price wins and training, safety, experience be damned. This short puts new meaning to the phrase working yourself to death.

Pay close attention to the description of contracts, the chain of subcontracts all the way down to the worker, who also are contractors, not employees. Use of contracts, contract law to subvert U.S. worker rights, deny benefits and remove any sort of liability is extremely common these days.

Ripped Off MF Global Investors Will Never See That Money

armed robberyRob a 7-11 with a gun? Get at least 20 years in prison. Rip-off investors to the tune of $1.6 billion, get no jail time, no charges and you don't even need to make restitution. MF Global represents yet another example how financial crime goes unpunished and not penalized.

We know MF Global played around with customer's money. The amount they lost is even larger than originally estimated, now at $1.6 billion bucks. Seems there is $700 million overseas and that branch of MF Global in the U.K. ain't giving the money back.