Tag Archives: SEC

Prosecutors with the Manhattan District Attorney's office have issued a subpoena to Goldman Sachs for information related to the company's trading of mortgage bonds backed by subprime loans. The action against the Wall Street institution stems from a congressional report issued in April by a Senate subcommittee on the key causes of the financial crisis. The U.S. Justice Department, SEC, and New York's attorney general have reportedly launched their own investigations into Goldman's dealings during the run-up to the mortgage meltdown.

Wells Fargo says as of March 31, the company had 664,195 loans in active trial or permanent mortgage modifications. Eighty-six percent, or 568,548, were through Wells Fargo's own modification programs. Loans restructured through HAMP tallied 95,647. At the same time, 7.22 percent of all first mortgage and home equity loans serviced by the company were past due or in foreclosure in the first quarter, down from 8.02 percent. While past-dues are dropping, litigation expenses related to foreclosures are expected to rise.

Federal regulators proposed a new rule Wednesday that would require certain financial institutions, including large mortgage lenders, to account for risk as they structure incentive compensation packages for executives and employees. New rules for risk-based pay are a mandate of the Dodd-Frank Reform Act and are aimed at stemming the type of risky lending and investment gambles that many economists say pushed the nation's financial system to the brink of collapse.

The Securities and Exchange Commission (SEC) said last week that Bank of America must entertain shareholders' request to open up its foreclosure practices for an independent audit. The SEC ruled that BofA must include the option on the ballot at its annual stockholder meeting this spring. But the company's shareholders aren't waiting for a formal investigation. They filed a lawsuit this week with the New York State Supreme Court claiming they were damaged by the bank's intent to hide defects in the paperwork used to process foreclosures.

New York City Comptroller John Liu has announced a victory for the members of the New York City Pension Funds who have long been calling for banks to conduct an independent audit of their mortgage foreclosure practices. The NYC Pension Funds requested an audit of the banks' practices in November and again in January to no avail, but the Securities and Exchange Commission (SEC) has ruled that the banks must put the group's request on the ballot at their annual shareholder meetings this spring.

Daniel Mudd, former CEO of Fannie Mae, has received a Wells notice from the Securities and Exchange Commission (SEC) regarding his service with the GSE. A Wells notice informs the recipient that the agency is considering legal action against him. The recipient may elect to respond to the Wells notice with arguments and counter-evidence, and Mudd is reportedly planning a rebuttal. On the heels of Mudd's Wells notice comes the news that lawmakers are preparing to introduce bills as early as this week to accelerate the wind-down of the GSEs.

HSBC Holdings has suspended all foreclosure actions in the United States, according to the company's annual regulatory filing with the Securities and Exchange Commission (SEC). HSBC says it decided to temporarily halt foreclosure proceedings after examinations by federal regulators uncovered what the company described as ""deficiencies"" in its handling of legal paperwork related to foreclosure cases. HSBC is Europe's largest bank. It operates in the United States as HSBC Finance and HSBC Bank USA.

After paying a $22.5 million fine, and after Bank of America footed the bill for a $45 million settlement on his behalf, former Countrywide CEO Angelo Mozilo has had his name cleared. Criminally, at least. In October Mozilo settled a civil lawsuit with the Securities and Exchange Commission for $67.5 million, while not admitting or denying fault for his actions, which the SEC says helped bring about the financial meltdown. The Justice Department has reportedly closed its investigation of Mozilo that began in 2008, determining that those same actions were not criminal.

CoreLogic's CFO, Anthony ""Buddy"" Piszel, resigned from his post last week after receiving a Wells notice from the Securities and Exchange Commission (SEC), indicating that the agency is considering filing civil charges against Piszel in connection with his role at former employer Freddie Mac. Piszel served as Freddie Mac's CFO from November 2006 to September 2008. The SEC is looking into certain disclosure matters during Piszel's tenure with the GSE.

The Securities and Exchange Commission (SEC) has charged three former executives at IndyMac Bancorp with securities fraud for misleading investors about the lender's failing financial condition. The executives, former CEO Michael Perry and former CFOs A. Scott Keys and S. Blair Abernathy, allegedly filed false and misleading disclosures about the financial stability of IndyMac and IndyMac Bank F.S.B. and continued to sell millions of dollars in new stock. Abernathy is the only one of the three who has reached a settlement with the SEC.