Financial industry

Mortgage industry whistleblower wins case against Bank of America

Topics: 
USA, Financial crisis, White-collar crime, Financial industry
Rating: 
0

Michael Hudson – September 14, 2011

A high-level executive who reported corrupt lending practices at Countrywide Financial Corp. was improperly fired for leading internal investigations that “revealed widespread and pervasive wire, mail and bank fraud” at the lender, a federal agency ruled Wednesday.

The Labor Department ordered Bank of America Corp., which bought Countrywide, to pay the former executive roughly $930,000 and reinstate her.

W5: Who is protecting your investments?

Topics: 
White-collar crime, Videos, Financial industry
Rating: 
3

Robert Osborne – October 1, 2011

When Genie and Helmut Vollmer's accountant introduced them to a new investment opportunity, they had no reason to doubt their financial advisor and friend of 30 years.

The Calgary seniors were told by Heinz Weis that their principal would be guaranteed, and they could earn as much as 35 per cent annual returns."It was more or less guaranteed money and there would be no loss," Genie Vollmer said.

US Banks Took $6B in Reinsurance Kickbacks, Investigators Say

Topics: 
USA, Financial crisis, Corporate ethics, Financial industry
Rating: 
2

Jeff Horwitz – September 6, 2011

Many of the country's largest banks received $6 billion in kickbacks from mortgage insurers over the course of a decade, according to a previously undisclosed investigation by the Inspector General of the Department of Housing and Urban Development.

The allegations, since referred to the Department of Justice, stem from lenders' demand that insurers cut them in on the lucrative business of insuring the mortgages they produced during the housing boom.

Madoff Whistle-Blower Feared Mob

Topics: 
Organized crime, White-collar crime, Harry Markopolos, Financial industry
Rating: 
2

Rick Warner – Aug 24, 2011

Harry Markopolos knew right away that Bernie Madoff was a crook.While working for Rampart Investment Management in 1999, Markopolos was told about a money manager whose consistent profits seemed too good to be true.

When Markopolos looked at Madoff’s financial records, he saw that the returns rose steadily at a 45-degree angle, with none of the wide swings usually associated with big-time investors.

Former Exec Details Sleaze Within Credit Rating Firm

Topics: 
USA, Financial crisis, Corporate ethics, Financial industry, Conflict of interest
Rating: 
0

Alain Sherter – August 19, 2011

It’s open season on the credit rating agencies, and at least one former Moody’s (MCO) executive is doing the shooting.

William Harrington, until 2010 a senior analyst in the firm’s derivatives group, accuses Moody’s of everything from tailoring its securities ratings to suit financial industry clients to lying to lawmakers about the company’s actions.

Moody’s managers pressured analysts, former executive says

Topics: 
USA, Financial crisis, Corporate ethics, Financial industry, Conflict of interest
Rating: 
2

David S. Hilzenrath – August 19, 2011

The Moody’s credit-rating agency has been widely blamed for contributing to the financial bubble and its devastating implosion by giving high grades to dubious investments. Now one of its own is leading the criticism.

In an 80-page letter to federal regulators, a former Moody’s senior vice president says the firm systematically squelched its analysts’ private doubts to keep deals and profits flowing.

Why Isn't Wall Street in Jail?

Topics: 
Financial crisis, Corruption, White-collar crime, Financial industry
Rating: 
3

Matt Taibbi – February 16, 2011

Financial crooks brought down the world's economy — but the feds are doing more to protect them than to prosecute them.

Over drinks at a bar on a dreary, snowy night in Washington this past month, a former Senate investigator laughed as he polished off his beer. "Everything's fucked up, and nobody goes to jail," he said. "That's your whole story right there. Hell, you don't even have to write the rest of it. Just write that."

Is the SEC Covering Up Wall Street Crimes?

Topics: 
Corruption, White-collar crime, SEC, Financial industry
Rating: 
3

Matt Taibbi – August 17, 2011

A whistleblower claims that over the past two decades, the agency has destroyed records of thousands of investigations, whitewashing the files of some of the nation's worst financial criminals.

Imagine a world in which a man who is repeatedly investigated for a string of serious crimes, but never prosecuted, has his slate wiped clean every time the cops fail to make a case. No more Lifetime channel specials where the murderer is unveiled after police stumble upon past intrigues in some old file – "Hey, chief, didja know this guy had two wives die falling down the stairs?"

Whistleblower offers inside look at AIG corruption

Topics: 
Financial crisis, Corruption, Books, Financial industry
Rating: 
0
The Whistleblower's Dilemma

Linda Peyton – August 16, 2011

After 30 years of climbing the corporate ladder, Gordon Massie said he risked it all to do the right thing.He said he decided to expose the corruption and accounting fraud he discovered while working at American International Group Inc. As a result, he was shunned and ostracized at work and eventually fired.

In his recent book, The Whistleblower's Dilemma: Confronting Fraud at AIG, Massie describes his journey from the top to the bottom and the steps he took to survive the aftermath. The author launched his memoir with a speech and book-signing at Lone Star College–Montgomery.

SEC Probes Goldman Sachs Over Libyan Deals

Topics: 
USA, Corruption, Financial industry, Foreign corrupt practices legislation
Rating: 
0

Samuel Rubenfeld – August 10, 2011

The Wall Street Journal reported Wednesday on the filing, which was made late Tuesday. Goldman said in the filing that a probe of the company’s “compliance with the U.S. Foreign Corrupt Practices Act” was among the string of investigations and regulatory reviews it faced in the past quarter.

The revelation was part of an 8,179-word “Legal Proceedings” section of its quarterly report to the Securities and Exchange Commission.

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