Contents Finance Posts

Finance Contents

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Short List

Savings and Loan crisis finance-12savings-a
  Accounting control fraud
  Savings and Loan Associations
  Hiding debt
  Lincoln Savings and Loan
  Comparisons between the S&L and subprime crises
Federal Promotion finance-14fedpromotion-a
  Support for home owners
  Going private
Securitizing finance-16securitizing-a
  Mortgages, MBSs, CDOs, CDSs, synthetic CDOs
Credit Rating Agencies finance-18cra-a
  Bad CRAs driving out good
The bubble grows finance-22bubblegrows-a
  Giant fees for bad loans
The bubble bursts finance-24bubblebursts-a
  Loans flop and banks let others pay
Spreading money finance-28spending-a
  Pushing money on the banks
  Exploiting federal money
The rules finance-32rules-a
A new paradigm finance-33newparadigm-a
  Fees instead of performance
  Foreclosure instead of modification
  From rewarding performance to rewarding failure
Special companies finance-34specialfirms-a
  Specialization
Default and foreclosure finance-36default-a
  Default, often lender induced
  Banks, not borrower, profiting on HAMP
Dirty tricks finance-37dirtytricks-a
  Pyramiding charges, protracting foreclosure, more
Victims finance-42victims-a
  It was the borrower's fault
  Banks refuse to correct mistakes
Larry Delassus and Sunny Sheu finance-44delassussheu-a
  Two spectacular cases
Municipalities finance-46municipalities-a
  Municipalities fair game
Good pay, bad performance finance-51motivation-a
  The better the pay, the worse the performance
  How incentives work
No one expected it finance-53unexpected-a
Special knowledge finance-55knowledge-a
  Only we fully understand
  Wall Street Gurus
Bank friendly courts finance-62probank-a
Not in court finance-63notincourt-a
  Settlements instead of prosecutions
Sarbanes-Oxley and other things finance-66sarbox-a
  Sarbanes-Oxley
  IRS, Lawyers, Accountants and more
Courts against the banks finance-67antibank-a
  Not all judges are friends of the banks
Regulators finance-72regulators-a
  Lots of regulation
Obstructions finance-74obstructions-a
Bank reviews finance-76reviews-a
Settlements finance-78settlements-a
Alternatives finance-80alternatives-a
Competence finance-81competence-a
Regulation finance-82regulation-a
Theory finance-84theory-a
  Praxis and theory
  The Invisible Hand
Not only mortgages (Stub) finance-88more-a
  Stub
  Finance
Not only banks (Stub) finance-89evenmore-a
Politics (Stub) finance-91politics-a
  Stub
Conclusion (Stub) finance-92conclusion-a
Finance Appendix finance-96appendix-a
  Terms and abbreviations
  Institutions
  Persons
  References

Long List

Savings and Loan crisis finance-12savings-a
  Accounting control fraud
    Accounting control fraud
  Savings and Loan Associations
    Savings and Loan
  Hiding debt
    Goodwill
    Creating fictitious profits
    More help for the fraudsters
  Lincoln Savings and Loan
    Lincoln Savings and Loan: No foreseeable risk
    "make life unbearable for Gray"
  Comparisons between the S&L and subprime crises
    Similarities between S&L and subprime crises
    Differences between S&L and subprime crises
Federal Promotion finance-14fedpromotion-a
    The Fed
    Deposit insurance
    FHA, Fannie and Freddie
  Support for home owners
    Political support for home owners
    Clinton and Bush push for subprime
  Going private
    Prime and subprime loans
    Privates go for subprime
    Lower standards hurt F&F
Securitizing finance-16securitizing-a
  Mortgages, MBSs, CDOs, CDSs, synthetic CDOs
    Mortgages becoming MBSs becoming CDOs
    CDOs
    CDS for insurance
    CDSs and synthetic CDOs
Credit Rating Agencies finance-18cra-a
    CRAs
    Blackmail to avoid scrutiny?
    Different rating grades for different securities
  Bad CRAs driving out good
    Pressured to give good ratings
    Many things can go wrong
    An officially recognized economic advisor
The bubble grows finance-22bubblegrows-a
  Giant fees for bad loans
    Everybody joins
    Risky loans increase
    Teasers, liar's loans
The bubble bursts finance-24bubblebursts-a
  Loans flop and banks let others pay
    Prices fall after marketplace opens
    Investors, not banks, pay for bad loans
    Selling most likely to fail
    Too much risk, AIG won't insure any more
    FHA asked to take over bad loans
    Most bad loans to investors and F&F
Spreading money finance-28spending-a
  Pushing money on the banks
    TARP money to banks in need
    TARP money not used to help economy
  Exploiting federal money
    Exploiting federal money
    Treasury and Fed paying overprice to save AIG
    AIG paying back. How?
The rules finance-32rules-a
    The cheat goes on
    A mortgage is two documents
    The note has to be handled in a prescribed manner
    Originators quit conveying the note
    Robo-signing, affidavits and allonges
    At first does not hurt borrower
A new paradigm finance-33newparadigm-a
  Fees instead of performance
    No partnership means no personal responsibility
    First banks, then much of the financial sector
    Fees instead of performance
  Foreclosure instead of modification
    Modification is good for you and the bank
    Foreclosure instead of modification
    Do investor managers care?
  From rewarding performance to rewarding failure
    Once there was Ford
    Big finance taking over industry
    The state taking over innovation
    From rewarding performance to rewarding failure
Special companies finance-34specialfirms-a
  Specialization
    Specialized companies
    The Mortgage Electronic Registration Systems
    The Lender Processing Services
    DOCX
    Foreclosure mills
    SPEs and SIVs
Default and foreclosure finance-36default-a
  Default, often lender induced
    Default and strategic default
    With rising prices, wage backing is not important
  Banks, not borrower, profiting on HAMP
    Help through HAMP
    Harm through HAMP
    Up to 70% of defaulting loans borrower fraud
Dirty tricks finance-37dirtytricks-a
  Pyramiding charges, protracting foreclosure, more
    Many ways to skin a cat
    Pyramiding charges and other dirty tricks
    Active duty soldiers targeted?
    Banks dragging on with foreclosure
    Breaking foreclosure stay
    Sloppy handling, passwords shared and more
Victims finance-42victims-a
  It was the borrower's fault
    The banks didn't do anything wrong
    They don't deserve to stay in the house
    The seller does have some responsibility
    Deadbeat borrower not necessary deadbeat
  Banks refuse to correct mistakes
    Foreclosing fully paid
    Break and entry
    Chase abuse in Alabama
    Do banks correct their mistakes?
Larry Delassus and Sunny Sheu finance-44delassussheu-a
  Two spectacular cases
    Two spectacular cases
    Larry Delassus
    Bankruptcy hijacking
    Sunny Sheu is defrauded
    Sunny Sheu is dead
Municipalities finance-46municipalities-a
  Municipalities fair game
    Becoming Wall Street prey
    Reward for failure
    Libor abuse
    Stupid to believe in competition
    Municipalities tricked by advisers
    Jefferson County breakdown
Good pay, bad performance finance-51motivation-a
  The better the pay, the worse the performance
    CEOs perform worse for better pay
    Bonuses of millions and billions
    Bankruptcy CEO Fuld making hundreds of millions
    Greed, performance and severance money
    This is Wall Street
  How incentives work
    Success addictive
    Pay can be detrimental to performance
    Carnegie, Ford, Rockefeller vs the subprime crisis
No one expected it finance-53unexpected-a
    Lifetime strongest global economy
    No one expected it
    We told you so
    It wasn't our fault
Special knowledge finance-55knowledge-a
  Only we fully understand
    Greenspan: Only we fully understand
    SIGTARP can't understand brilliant Wall Street
    Jamie Dimon understanding or not understanding
  Wall Street Gurus
    Gurus
    The wisdom of Wall Street
    Sowell: Explaining things
Bank friendly courts finance-62probank-a
    Judges for the banks
    Spurious claims against borrowers' lawyers
    Big ones go free...
    ...small fry sentenced
    Neither guilty nor innocent
    The decay of law
Not in court finance-63notincourt-a
  Settlements instead of prosecutions
    There are prosecutable cases
    Law hurting business
    A strong record of compliance with securities laws
    USA citizens' rights 20 out of 35
Sarbanes-Oxley and other things finance-66sarbox-a
  Sarbanes-Oxley
    Sarbanes-Oxley
    Sarbox and the SEC
    Lehman a clear Sarbox case
  IRS, Lawyers, Accountants and more
    The IRS affiliation
    Lawyers and Accountants get a free pass
    One small fish
    Bad judgment by high-ranking SEC official
Courts against the banks finance-67antibank-a
  Not all judges are friends of the banks
    Judge for the banks, business as usual
    Not as usual
    GMAC sued for $25,000 per false affidavit
    Attorneys must notify a judge about fraud
    Wells "duplicitous and misleading"
    Wells admits systematic abuse, then renegades
Regulators finance-72regulators-a
  Lots of regulation
    Many organizations to control financial market
    Five fraud investigating groups, total staff one
    Basel I, II and III
    Raising leverage and risk
    Hiding bad assets
    Lehman daily supervised, failed tests
    Regulation can force crisis
Obstructions finance-74obstructions-a
    Cooperation between SEC and Wall Street
    Treasury obstructing SIGTARP
    OCC forbids banks to submit data
    Congress to cut SEC founding
Bank reviews finance-76reviews-a
    Sound banking practices
    They shouldn't pay for all the damage they caused
    Banks and OCC select reviewers
    Of 10,000 reviewed cases, 0 are found faulty
    Widely varying times for one review
    Local audits find lots of errors
    Hires own counsel for "independent" review
    An account from one reviewer
Settlements finance-78settlements-a
    The end of reviews
    How to split the money
    Paid according to how far the review had proceeded
    Messing up payments
    Paying by not paying
    BoA to pay with the money of others
    Reportable and above "acceptable error rate"
    We can afford some losses, right?
Alternatives finance-80alternatives-a
    Instead of production
    Lobbying
    Profit without productivity
    Buying back own stock
    Commodities
    Innovations
Competence finance-81competence-a
    Production no more
    Taking over the economy
    Profit without performance
    With or without a clue
    Hiding knowledge
    Trust me, I can do this
    Unfair treatment of bankers?
Regulation finance-82regulation-a
    Federal regulation and self-regulation
    No realistic alternative to bad banks
    Regulation: Bad or not
    Some regulation necessary
Theory finance-84theory-a
  Praxis and theory
    Theory and praxis
    The First Fundamental Theorem of Welfare economics
  The Invisible Hand
    Adam Smith
    The invisible hand
    For better or worse
    Self-interest symmetric, knowledge asymmetric
    Free market assumes knowledge
    Federal supervision dwindles
    Quid without quo
Not only mortgages (Stub) finance-88more-a
  Stub
    Stub
  Finance
    Not only mortgage abuse
    Government giving away money
    Public pension funds
    Private pension funds
    Private equity
Not only banks (Stub) finance-89evenmore-a
    Health, education, defence and more
Politics (Stub) finance-91politics-a
  Stub
    Stub
Conclusion (Stub) finance-92conclusion-a
    Disclaimer
Finance Appendix finance-96appendix-a
  Terms and abbreviations
  Institutions
  Persons
  References
© Anders Floderus