This page contains a single entry from the blog posted on December 13, 2010 7:43 AM. The previous post in this blog was Rename dissent "espionage" and criticism of government "treason". The next post in this blog is Cha-ching! Another $1 million for Homer Williams in SoWhat . Many more can be found on the main index page or by looking through the archives.

E-mail, Feeds, 'n' Stuff

Monday, December 13, 2010

City of Portland's favorite lender is crooked

Good old Bank of America has been busted by the SEC for bid rigging in the municipal bond market. Given that the City of Portland can't seem to borrow enough money from these guys, the charges and settlement are most interesting.

Comments (7)

$137.3 million is a negligible fine for BAC: a swatted fly. Certainly not enough for the bank not to behave similarly in the future. Besides, the GOPers are retrieving power and reinvigorating the dictum: "The bad news is that the SEC is investigating; the good news is that the SEC is investigating."

Is it naive to imagine that OR's AG might locate resources to rigorously oversee too-big-to-fail (TBTF) banks doing business in the state?

Perhaps the taxpayers of Portland can find solace in the knowledge that we are preserving the financial system by directly subsidizing a TBTF?

Generally, I take a sort of populist line vis a vis the banks, and have little confidence in the SEC at all.

But reading the details here in the underlying story when it ran on the wires last week, I noticed that BoA turned itself in. AIUI, internal auditors at BoA found the scheme and BoA went to the feds and confessed, snitching themselves, and others, off.

Interesting behavior by BoA upper management.

Anyone go to jail? Nope!

Interesting behavior by BoA upper management.

But I can't help but think their decision to "turn themselves in" was more a risk-management or cost-benefit solution than an outcome based on some inherent sense of ethics or moral accountability. When it comes to thinking about the financial sector, I feel it's safer to be jaded than naive.

I recently received an email from a local law enforcement official who stated that not all fraud is criminal. Was that a fraudian slip?

17 Dec

"SAN FRANCISCO (Reuters) – The states of Arizona and Nevada sued Bank of America Corp on Friday, accusing the largest U.S. bank of routinely misleading consumers about home loan modifications.

The two lawsuits, filed by each state attorney general in Arizona and Nevada state courts, seek potentially massive fines against the bank and compensation for customers.

Arizona accuses Bank of America of violating a 2009 consent judgment in which it committed to widespread home loan modifications. The bank failed to follow through, leaving borrowers in limbo, according to the suit.

The bank is also accused of violating the state's consumer fraud act."

There's more:

I do not receive press releases from the AG. Does anyone follow whether Mr Kroger -- separately or as part of the multi-state effort -- is pursuing BAC or other TBTFs?

Now comes BAC and, perhaps in response to the possibility that Assange & Co. has the bank in its sights, announces "it will stop handling transactions for WikiLeaks."

Clicky Web Analytics