7 posts tagged with financialcrisis by saulgoodman.
Displaying 1 through 7 of 7.
US Justice Department suing Standard and Poor's over a "scheme to defraud investors" before the financial crisis. More details on these recent developments from The Tech online edition here, which notes: "For many years, the ratings agencies have defended themselves successfully in civil litigation by saying their ratings were independent opinions, protected by the First Amendment, which guarantees the right to free speech. Developments in the wake of the financial crisis have raised questions about the agencies’ independence, however." Reuters opts to let S&P break the news for themselves here.
New allegations of Widespread foreclosure fraud on the part of major US banks: As the housing crisis has unfolded, some of the biggest banks lenders have reportedly been so eager to reposses homes that, in some cases, they've changed the locks on occupied homes that hadn't even been foreclosed yet. Meanwhile, congress quietly passed little noticed bipartisan legislation that would have made it harder for home owners to contest foreclosure proceedings in some cases--legislation which President Obama vetoed despite it's legislative support among both parties. On a related topic: It's finally becoming clearer that widespread mortgage fraud, not ordinary homeowners living beyond their means, caused the housing collapse.
Obama Breaks with Geithner to support "Volcker Rule" in sweeping new financial sector reform proposal. Following the counsel of highly-respected former Fed Chairman Paul Volcker in a move that would significantly weaken the role of current Treasury Secretary Tim Geithner, Obama's tough new proposals are being received by recent administration critic Robert Reich as a welcome, if overdue, policy correction. Among other things, the new proposals would effectively restore previous restrictions separating deposit and investment banks (as originally imposed by the depression-era Glass-Steagall Act), as well as imposing stiff new capital requirements, and restrictions designed to prevent banks from becoming too big to fail.
TARP investments yield 15% returns. Almost trom the start, critics characterized the TARP program that first began under the Bush administration and that continued through early this year under President Obama as a taxpayer funded giveaway, while government officials insisted it was a long-term investment program whose initial costs would eventually turn a profit as economic recovery began. Now the NY Times reports that the program has already yielded $4 billion in profits, and a separate report reveals that related Federal Reserve loan programs aimed at economic stabilization have returned $14 billion in profits.
President Obama has announced he will seek broad new authority to regulate the financial derivatives markets. As has been discussed many times previously here on the blue, the massive unregulated financial derivatives markets (estimated to be in excess of hundreds of trillions of dollars in overall scale) have been one of the major contributing and complicating factors in the current global financial crisis. [more inside]
Who will be our era's Duncan Fletcher? Fed up with widespread financial sector double-dealing, profiteering and opportunism in the aftermath of the 1929 stock market crash that triggered the Great Depression, a soft-spoken, conservative Democrat senator from Jacksonville, Florida stepped up to play an instrumental role in shaping post-Depression era financial policies. [more inside]
Newsweek discusses Obama's "War on the Rich," a timely story, considering Bloomberg's recent christening of the "Obama Bear Market." And on a tangential note, TPM points out that those bankruptcy law reforms enacted under the Bush administration specifically included new provisions aggressively lobbied for by the "International Swaps and Derivatives Association," which were designed to protect the derivatives and swap industries. Yet another example of good timing. [more inside]