Posted on July 3, 2011 by Neil Garfield
EDITORS COMMENT: Is it me? Or does it seem that everyone — investors, governments, and anybody BIG is getting paid hundreds of millions of dollars or even billions of dollars from all the big players in the securitization (derivative scam) but NOBODY is asking to apply these settlements to the Borrower’s obligation. The figures are wrong in the settlements, wrong in the foreclosures, wrong at the auction, wrong on demands for adequate protection and wrong on supercedeas bond.When is somebody going to ask the the FULL accounting from the investors on down to the borrower and start doing simple arithmetic. These loans are (a) not in default (b) partially or completely paid off by third parties (c) subject to various counterclaims and defenses that would set-off against the principal demanded, (d) not secured (e) discharged in bankruptcy.
Washington Mutual Settles Fraud Suits for $208 Million
Washington Mutual’s officers, directors, underwriters and auditor have agreed to a $208.5 million settlement to end class-action securities fraud lawsuits, according to court documents.
The settlement is among the largest stemming from the financial crisis, behind a $624 million settlement by the Countrywide Financial Corporation and $475 million by Merrill Lynch & Company.
The lawsuits, in the United States District Court for the Western District of Washington, accused the defendants of concealing from investors poor loan underwriting and inflated appraisals that overstated earnings and inflated the company’s stock price.
As the housing market began to crash, Washington Mutual’s loans soured at an alarming rate. In September 2008, regulators seized the company’s savings and loanbusiness in the largest bank failure in the nation’s history.
The day after the seizure, the bank holding company, Washington Mutual, filed for bankruptcy.
Under the terms of the class-action settlement, announced in court papers dated Thursday, claims against the directors and officers will be settled for about $105 million.
About a dozen underwriters of the company’s securities contributed $85 million to the settlement; the company’s auditor, Deloitte & Touche, contributed $18.5 million.
The settlement is subject to court approval.
Filed under: bubble, CDO, CORRUPTION, currency, Eviction, foreclosure, GTC | Honor, Investor,Mortgage, securities fraud Tagged: | bankruptcy, borrower, countrywide, disclosure,foreclosure, foreclosure defense, foreclosure offense, foreclosures, fraud, LOAN MODIFICATION, modification, quiet title, rescission, RESPA, securitization, TILA audit, trustee,WEISBAND
Be the first to like this post.
- Foreclosure-Gate Screw Tightens: Banks Face $17 Billion in Suits Over Foreclosures (timothymccandless.wordpress.com)
- Settlement may be near in federal lawsuit against Killinger, other WaMu execs (seattletimes.nwsource.com)
- FDIC Working on Settlement with WaMu Executives (blogs.wsj.com)
- Funds Slam WaMu Trading Investigation (blogs.wsj.com)
- Abigail Field Finds Smoking Gun on BofA Securitization Fraud (news.firedoglake.com)
- AG Settlement Just About Cashed, As Principal Reductions Exit the Picture (news.firedoglake.com)
- FDIC Sues LPS and CoreLogic Over Appraisal Fraud; Shows Investors Leaving Money on the Table (ritholtz.com)
- First look - Wall Street and the Financial Crisis; Anatomy of a Financial Collapse (thebankwatch.com)
- Congressional Whitewash (adask.wordpress.com)
- Ex-Washington Mutual Officials Near Deal With FDCI Over Losses (businessweek.com)