Banking Law

Suit Cites E-mail as Proof of Huge Conspiracy to Rig Municipal Bond Rates

Bank of America e-mails are being cited as proof in a lawsuit by Los Angeles that claims the city’s brokers took kickbacks in a massive scheme to rig the bidding for municipal bonds. The suit filed in Los Angeles superior court claims the rigged auctions increased profits for banks and…

Jul 24, 2008 12:37 PM CDT

San Diego Lawsuit Seeks to Stop Countrywide Foreclosures

San Diego City Attorney Michael Aguirre has filed a lawsuit against Countrywide Financial Corp. that seeks to stop residential foreclosures that were the result of predatory lending practices. Aguirre told the Daily Journal (sub. req.) that Buffalo, N.Y., Cleveland and Baltimore have filed similar suits. California’s attorney general has also…

Jul 24, 2008 11:26 AM CDT

More Builders Sue Lenders for Dried-Up Financing

Lender liability lawsuits that were popular during the real-estate downturn in the 1990s are making a comeback. Builders are beginning to file lawsuits that contend their lenders cut off financing for construction projects, threatening their financial viability, the Wall Street Journal reports (sub. req.). Fearing real-estate losses and under pressure…

Jul 23, 2008 11:49 AM CDT

Lender CEO OK’d Judge’s Refi While Class Action Was Pending, Magazine Says

When a California appeals court judge sought a $1 million mortgage and a $900,000 credit line to refinance his 8,200-square-foot home in January 2004, a loan officer for Countrywide Financial determined that the credit line was “above what guidelines allow.” But the mortgage lender’s chief executive, Angelo Mozilo was the…

Jul 22, 2008 5:57 PM CDT

‘Lolita’ Lawyer, an Ex-Cravath Partner, Blames Arrest on AmEx in $4M Suit

The so-called “Lolita Lawyer” who pleaded guilty to charges of statutory rape is blaming his arrest on American Express. Disbarred lawyer James Colliton, a former mergers and acquisitions lawyer with Cravath, Swaine & Moore, has sued the credit card company for giving police information that led to his 2006 capture…

Jul 22, 2008 4:52 PM CDT

Anatomy of a Bankruptcy: Too Much Credit, High Fees, Bad Breaks

Back when she was working a couple of jobs and sharing her home with an adult son, Diane McLeod seemed to have the money to pay her credit card bills and the relatively lavish lifestyle they helped fund along with the mortgage for her modest home in the Philadelphia suburbs.…

Jul 21, 2008 10:02 PM CDT

Feds Probe Possible Fraud in IndyMac Bank Failure

In the wake of the FDIC’s takeover Friday of IndyMac Bancorp Inc., the FBI is now investigating possible fraud by the lender concerning mortgage loans made to high-risk borrowers. “Countrywide Financial Corp., the nation’s largest mortgage lender, is also under scrutiny,” reports the Associated Press. “Over the last year, and…

Jul 16, 2008 9:46 PM CDT

New IRS Rules Target Secret Offshore Bank Accounts

In the wake of a series of revelations concerning secret accounts at UBS AG and other foreign banks, new rules are about to be released by the Internal Revenue Service seek to close loopholes previously used by some U.S. investors to avoid taxes by concealing assets in such accounts. The…

Jul 16, 2008 5:00 PM CDT

Countrywide Agrees to Pay $325K to Settle Trustee’s Late Fee Accusations

Countrywide Home Loans has agreed to pay $325,000 and investigate its records of payments from about 300 borrowers to settle a dispute with a bankruptcy trustee in Pittsburgh. The Chapter 13 trustee, Ronda Winnecour, had asserted in filings last October that Countrywide lost or destroyed more than $500,000 in checks…

Jul 16, 2008 12:09 PM CDT

Fla. Law Firm Has Filed About 70 Fraud Suits Against Lenders

Some borrowers who say their lenders hid the true terms of their onerous loans are suing for fraud. One law firm that is eager to help is the Affirmative Defense Group in Margate, Fla. Lawyer Frank Ingrassia says the firm has filed about 70 such suits on behalf of borrowers…

Jul 10, 2008 11:08 AM CDT

US Court Tells Swiss Bank UBS to Reveal Customer Names

In a reportedly unprecedented court order, a federal judge in Miami has ordered Swiss-based UBS AG to reveal the names of U.S. residents who have been using secret accounts to avoid paying American income tax. “Federal prosecutors have accused UBS of helping American clients hide $20 billion overseas in secret…

Jul 1, 2008 11:15 PM CDT

Another AG Sues Countrywide

The attorney general of Florida has sued Countrywide Financial Corp. over its mortgage lending practices, contending that they were deceptive and unfair and not properly disclosed in securities filings. “Underscoring the aggressiveness of its lending practices—aimed at maximizing the company’s profits regardless of credit risk—the complaint said Countrywide’s own underwriters…

Jul 1, 2008 6:44 PM CDT

DOJ Seeks Rare Federal Court Ruling Forcing UBS to Name Names

Updated: The Department of Justice is trying to get an unprecedented federal court order requiring a Switzerland bank to turn over the names of wealthy U.S. residents who maintained secret accounts there to evade income tax here. If the DOJ’s filing against Swiss-based UBS AG in federal court in Miami…

Jul 1, 2008 5:35 PM CDT

Construction Boom Leads to More ATM Machine Thefts

A construction boom has had an unexpected cost to banks in Florida and other high-growth areas. Thieves are stealing heavy equipment and using it to make away with ATM machines, apparently so they will have time to break into the machines and get the cash they contain, in a more…

Jun 27, 2008 6:08 PM CDT

AGs in 2 States Sue Countrywide, Allege Deceptive & Unfair Practices

Updated: The attorneys general of California and Illinois filed lawsuits today against Countrywide Financial Corp., claiming that the mortgage lender engaged in deceptive and unfair practices. Meanwhile, in third announcement today the governor of Washington state, Christine Gregoire, says it plans to fine the mortgage lender for allegedly discriminating against…

Jun 25, 2008 8:32 PM CDT