Deregulation Debacles: And, Heller Wants To Repeal Dodd Frank?

** Altogether too many Nevadans were happy to sign adjustable rate mortgages based on the COFI.    COFI is the Cost of Funds Index, i.e. a monthly weighted average interest paid on checking and savings accounts offered by financial institutions in California, Arizona, and Nevada.  [QNA]   It could have been worse, the loans could have been based on LIBOR,  the London Interbank Offered Rate.   Barclays Bank (as in Premier League) has now settled with U.S. and British financial authorities for $453 million. Why? “Barclays admitted to trying to make Libor look artificially low, to avoid signaling the bank’s distress to markets during the financial crisis. The bank also manipulated borrowing rates to benefit its trading positions.” [Reuters] (emphasis added)  Before anyone gets too comfortable about the shakeout from the financial meltdown of 2008, refer to Gradman’s Top Five RMBS Cases now winding their way through the courts.

And, Senator Heller (R-NV) believes we should repeal the Dodd Frank Act which sought to reform financial sector regulation.  [GovTrack]

** Meanwhile, the SEC has filed allegations that Philip Falcone, hedge fund manager of Harbinger Funds, manipulated the market, gave preferential treatment to Goldman-Sachs, and got a company loan to pay his taxes. [Bloomberg]

And, Senator Heller (R-NV) believes we should repeal the Dodd Frank Act which sought to reform financial sector regulation.  [GovTrack]

**  Then, we have MBIA v. Countrywide, Bank of America, in the NY Supreme Court.  “MBIA has been looking for just this type of smoking gun (documentation of knowledge, reliance on fraud)  since the beginning of their case, and it appears they believe they’ve found it, in the form of internal Countrywide documents relating to its fraud hotline and internal fraud investigations.  If Countrywide knew there was widespread fraud in its loan origination processes, and covered up that information, it could certainly form the foundation for a finding that it intentionally misled MBIA into providing insurance coverage.  And Countrywide has certainly acted like MBIA is knocking on the door of a treasure trove of damaging evidence, as it has fought like crazy to avoid producing these documents.”   [IGrad]

And, Senator Heller (R-NV) believes we should repeal the Dodd Frank Act which sought to reform financial sector regulation.  [GovTrack]

** The Securities and Exchange Commission opened a preliminary  investigation into the JPMorganChase “London Whale” debacle, “An important avenue for the S.E.C. investigation, the people said, is the firm’s accounting methods relating to the trades. Investigators could take a close look at a measure known as value-at-risk. The company disclosed earlier this year that it changed the way it calculates the metric, which may have masked some of the risk surrounding this trade.” [DealBook]

And, Senator Heller (R-NV) believes we should repeal the Dodd Frank Act which sought to reform financial sector regulation.  [GovTrack]

** The SEC is also looking into possible NASDAQ improprieties in the Facebook IPO.  [CNBC] “The S.E.C. is also examining whether some exchanges give undue priority to high-frequency trading firms and big institutional investors through its order types and data disclosure.” [DealBook]

And, Senator Heller (R-NV) believes we should repeal the Dodd Frank Act which sought to reform financial sector regulation.  [GovTrack]

** On June 7, 2012 the CFTC filed charges against a Florida “Wealth Management LLC; ” The U.S. Commodity Futures Trading Commission (CFTC) today announced that it filed a civil enforcement action against Jose S. Rubio (Rubio) and Rubio Wealth Management, LLC (RWM) of Surfside and Coral Gables, Fla., respectively. The CFTC complaint charges Rubio and RWM with defrauding investors in connection with operating a commodity pool to trade commodity futures and off-exchange foreign currency (forex) contracts. The CFTC complaint also charges Rubio with making false statements to pool participants, misappropriating pool funds, commingling investor funds with those of RWM, failing to register as a commodity pool operator, and failing to produce documents to the CFTC.”

And, Senator Heller (R-NV) believes we should repeal the Dodd Frank Act which sought to reform financial sector regulation.  [GovTrack]

On June 25, 2012 the SEC announced a settlement with Ayuda Equity Funding:   “According to the SEC’s complaint, Ayuda and AmeriFund reaped more than $3.2 million of illegal gains on loans to public company officers and directors who put up stock as collateral. Although some borrowers received written and oral assurances that the stock would not be sold as long as they did not default on their loan payments, Ayuda and AmeriFund sold the shares before or soon after making the loans, the SEC alleged.”

And, Senator Heller (R-NV) believes we should repeal the Dodd Frank Act which sought to reform financial sector regulation.  [GovTrack]

On June 26, 2012, the Securities and Exchange Commission filed a civil injunctive action in the United States District Court for the Southern District of New York charging Tai Nguyen, the owner of the California-based equity research firm Insight Research, with insider trading.  The charges stem from the SEC’s ongoing investigation of insider trading involving so-called “expert networks” that provide specialized information to investment firms.”

And, Senator Heller (R-NV) believes we should repeal the Dodd Frank Act which sought to reform financial sector regulation.  [GovTrack]

Enough Said?

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