September 4, 2012 |
WASHINGTON - Phil Angelides , who chaired the government commission that investigated the financial crisis, said the Justice Department should pursue more criminal cases against Wall Street executives to restore the faith of average Americans in U.S. markets. "Restoring that faith will require bringing a renewed sense of urgency to the mortgage securities fraud investigation, and a willingness to follow the evidence wherever it leads - even to criminal prosecutions of bank executives and mortgage lenders of any size," Angelides, the former California state treasurer, wrote in an opinion article Tuesday in Politico . "Americans need to know that law breaking at the highest levels will not be countenanced or allowed to jeopardize our financial system and economy," he said.
June 13, 2012 |
WASHINGTON -- The "King of Wall Street" returns to Capitol Hill today, this time to explain how JPMorgan Chase & Co. sustained a $2-billion hole in its "fortress balance sheet. " Jamie Dimon, JPMorgan's chairman and chief executive officer, will face questions from the Senate Banking Committee on how the vaunted bank was stung by risky bets like those that bedeviled its Wall Street peers in the financial crisis. JPMorgan last month disclosed at least $2 billion in losses from risky derivatives trades.
April 27, 2012 |
Calls for reforming Wall Street pay packages reverberated across Washington and the financial district following the disclosure that 50 Lehman Bros. employees were awarded nearly $700 million in the year before the investment bank collapsed. Lawmakers and other experts said disclosure at major banks and other financial institutions should be beefed up significantly, in part to spotlight potential risks that employees may be taking in their pursuit of super-sized paychecks. The Times reported Friday that dozens of lesser-known traders and others at Lehman were allotted pay ranging from $8.2 million to $51.3 million in 2007, including one person who earned more than the chief executive and 42 people who were awarded at least $10 million.
April 17, 2010 |
There comes a point in every man-made disaster when the guilty parties are identified and brought to book. That way the victims can at least snatch from the wreckage some confidence that lessons have been learned and mistakes recognized. If Friday's federal fraud lawsuit against Goldman, Sachs & Co. over its role in the subprime mortgage meltdown signals the start of that process, all we can say is: Finally . Goldman, like other big Wall Street banks, has taken the position that the crisis was something of a natural disaster.
September 2, 2010 |
The former chief executive of Lehman Bros. came out swinging at federal officials Wednesday, blaming them for failing to give the beleaguered investment banking firm the extraordinary help it gave to its rivals — aid that would have saved it from the 2008 collapse that helped trigger the worldwide financial crisis. A defiant Richard S. Fuld Jr. sparred with Federal Reserve officials during a hearing before a congressionally appointed panel investigating the financial crisis.
September 17, 2009 |
A special commission to determine the causes of the financial crisis is trying to pattern itself after the bipartisan panel that investigated the 2001 terrorist attacks -- but some Republicans say the deck already is stacked against them. The 10-person commission meeting for the first time today consists of six people selected by Democrats and four by the GOP, a departure from the even split on the so-called 9/11 commission. And it's headed by longtime loyalists from each party, which some worry could lead to partisan disputes as the Financial Crisis Inquiry Commission tackles the politically explosive task of what triggered the worst economic meltdown since the Great Depression.
January 14, 2010 |
They admitted making mistakes and they regretted the economic devastation their decisions wrought, but the heads of four major financial firms wouldn't take direct blame for the massive meltdown in some tough questioning today by a government panel investigating the causes of the financial crisis. "We did eat our own cooking, and we choked on it," John Mack, chairman of Morgan Stanley, said about the large bets his industry made on the continued rise in housing prices. The high-profile appearance Wednesday of Mack and other Wall Street titans at the first public hearing of the Financial Crisis Inquiry Commission came as President Obama prepared to announce Thursday a new levy on banks to help recoup expected losses from the $700-billion bailout fund.
June 8, 2010 |
Goldman Sachs Group Inc., already under fire for its actions leading up to the financial crisis, came under attack from a federal commission that accused it of refusing to divulge information, including documents detailing its controversial bets on the mortgage market. Saying it had been stonewalled, the federal commission investigating the financial crisis on Monday took the unusual step of issuing a subpoena to Goldman that demanded information about the investment bank's role before and during the mortgage meltdown and credit crunch.
July 2, 2010 |
Executives at Goldman Sachs Group Inc. on Thursday defended the investment bank's aggressive pursuit of billions of dollars in payments from American International Group Inc. in 2008, which critics said added to the deep financial problems of the insurance giant and led to a $182-billion federal bailout. Goldman and AIG sparred over the value of mortgage bonds behind complex financial derivatives for more than a year before the government rescued AIG in September 2008, executives from the two companies told the Financial Crisis Inquiry Commission.
October 23, 2013 |
NEW YORK - Bank of America has been found liable for fraud in the sale of faulty loans by its Countrywide mortgage unit, a major victory for the federal government as it continues to pursue cases stemming from the financial crisis. A federal jury in Manhattan sided with prosecutors who alleged Countrywide Financial Corp. churned out risky home loans in a process called "the Hustle" and then sold them to mortgage giants Fannie Mae and Freddie Mac. The Calabasas company, once considered the crown jewel of American mortgage lending, made big profits unloading loans that were later rendered worthless during the housing crisis in 2008.