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Bank Of Countrywide Lynch To Get Subpoena Over Preferrential Lending Terms
Bank of America is really unable to catch a break. The latest kick in the groin comes courtesy of the Chairman of the House Oversight Committee Edolphus Towns, who has announced he will launch a subpoena into whether Countrywide gave "favored terms to lawmakers and other VIPs." Concurrently, a panel is evaluating predatory lending practices at a variety of different banks. Some of the firms that will be told to provide information include Wells Fargo, JP Morgan, Citigroup, US Bank and GMAC.
In a letter dated October 23 to the banks, Towns asked for data on VIP-type programs, foreclosures, marketing strategies, and potential anti-trust behavior.
The letter asks for information on whether attempts were made by lenders to identify whether loan applicants had regulatory authority over them. It also asks for details on the types of mortgages offered and sold. Also, it asks whether the companies helped draft legislation or regulatory language to propose to federal or state officials.
"The actions of mortgage lenders contributing to the foreclosure and financial crisis are of serious concern to many Americans and to the members of this committee," Towns said.
Ironically, Towns himself may well have been the recipient of Angelo Mozilo's preferential generosity (if not Agent Orange-strength tanning lotion), after having received two loans from the lender. Previously it was rumored that certain politicians were stalling this inquiry for fear of what may be uncovered. Towns had previously "rebuffed calls by the top Republican on the panel, Darrell Issa, to demand documents from Countrywide."
The pending receipt of disclosure is the reason why yesterday's hearing with Bank Of America Directors and Mary Schapiro has been delayed indefinitely: a surprising development in light of all the information that is expected to be revealed.
For more perspectives on this matter read the following by Karl Denninger.
h/t Geoffrey Batt
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Red herring. Much ado about nothing. The stuff they do is all out in the opensecrets.com.
http://www.boston.com/news/local/massachusetts/articles/2009/10/23/fiscal_policy_role_fuels_frank_fund_raising/
TD - Your job is like shooting fish in a barrell. You are gonna need more servers though. Keep 'em coming and all ya'll up/over there have a great weekend.
"potential anit-trust behavior" Now we're getting somewhere.
Darrell Issa 1
Edolphus Towns 0
Doesn't this involve Dodd as well, or is that another scandal? Hard to keep track of it all.
dodd is in on the friends of angelo.
he also is quite the speculator in Irish real estate.
Too bad this doesn't extend to the Hamptons, DC, Wall Street etc
http://maps.police.uk/
Speaking of banks...failure number 100 has arrived
If Karl is on the WH enemies list, it is based on unanimous nomination by Ben, Larry, Sheila and Timmy.
Barry's only interest in finance involves an unlimited full faith and credit of the USA Platinum credit card. Michelle keeps the household books. Everything else is on the teleprompter.
Karl Denninger is a legend in his own mind, furthered by his Palace of Fascism, where you're either kissing his ass or you are banned.
The only way he is on some enemy list is because he once stole the hair piece that was to live on Pinky Paulson's head.
If they choose to pursue him as an enemy, they'll soon write him off as insane and a danger only to himself when they discover that his forums have 5 real visitors and the other several hundreds are only Karl, parroting his own lunacy with made up names and phony personalities.
lol...yes denninger is a nutcase...
"The letter asks for information on whether attempts were made by lenders to identify whether loan applicants had regulatory authority over them."
I know, the purpose here is comedic, isn't it. I mean talk about setting up ways for future defendants to disclaim responsibility. If they hadn't made documented attempts to identify regulatory authority among loan applicants they hadn't made any at all, right? And Towns, himself, a possible beneficiary. But of course. Just more made-for-television ca-ca that all of these choreographed, Congressional investigations really are at core whether its 9/11, torture, surges, financial abuse or whatever else these poseurs need to exploit.
Anyone that thinks that the filth that run the system would ever actually use it to benefit the cause of justice needs a new and more efficacious stool softener, trust me.
My own anecdotal evidence of favored loan status. A house selling for 975K in Calif. New owner is a Wells VP, puts nothing down and has a 3.5% fixed loan. If they are willing to do that for their own spawn, can you imagine the deal Senator Bedfellow must be getting?
For those who read Denninger, is the ticker across the top of his website his "predictions" on where the market is going in short order?
Please. Following Karl's market advice is tantamount to financial suicide.
http://ibankcoin.com/woodshedderblog/2009/07/01/mr-denninger-is-incorrect/
Note what has happened since I published this piece, and note that Karl is still, well, the same old Karl.
Obama in CT stumping for Dodd who is in trouble with his re-election campaign! total Banana Republic...
+1
dodd needs to go retire to that nice Irish real estate deal he worked out.
It's going to be a tough re-election for anyone who voted in favor of TARP and the Porkulus bills...as it should be. In fact, it should have been a stipulation of the legislation that if you vote for this you do not run for re-election.
TARP and Stimulus are going to be the achiles heel for any incumbent in 2010. It will be the first thing paraded out as an example of favortism toward banks and other cronies. Especially in the face of 10+ percent unemployment and the promise that if they voted for it unemployment would not reach 9 percent.
Again, we are blessed with idiots and a bloated government who believes that "systemic risk" is the responsibility of the tax payer. The Frontline episode was informative because of Brooksley Born, but its portrayal of free markets infuriates me. We don't have free markets in this country when we have a central banking creating liquidity hand over fist and pumping it in to the economy, corporatism and special interests. The system has failed, let it go quickly so we can start over, but don't drag it out over the next decade because of some failed ideas about "soft landing" or reflating bubbles.
ring-around the rosy...