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Financial Crisis Inquiry Commission

October 23, 2013 | By Andrew Tangel
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.
April 27, 2012 | By Walter Hamilton, Andrew Tangel and Stuart Pfeifer, Los Angeles Times
Less than a year before the 2008 collapse of Lehman Bros. plunged the global economy into a terrifying free fall, the Wall Street firm awarded nearly $700 million to 50 of its highest-paid employees, according to internal documents reviewed by The Times . The documents, which were among the millions of pages submitted in Lehman's bankruptcy, show the list of top earners each were pledged $8 million to $51 million in cash, stock and other compensation....
February 27, 2014 | By Scott Martelle
When is a crime not a crime? Apparently when it happens on Wall Street. Ever since the financial meltdown of 2007, prosecutors and market regulators have struggled with how to handle evidence of a wide range of chicanery by Wall Street financial firms and banking giants - most of which are flourishing again, by the way, while American workers continue to struggle with high unemployment, high underemployment and stagnant wages. Some cases have been brought, but the federal government almost invariably lets the offending bank or firm off with a fine, and no admission of guilt.
February 14, 2011
The Early Show (N) 7 a.m. KCBS Today Josh Groban; Giada De Laurentiis; Grammys; Janet Jackson. (N) 7 a.m. KNBC Good Morning America Liam Neeson. (N) 7 a.m. KABC Live With Regis and Kelly Michael Caine; Diane Kruger. (N) 9 a.m. KABC The View Geoffrey Rush; Steve Harvey; guest co-host Patti Stanger. (N) 10 a.m. KABC The Doctors Questions; moles; memory loss. (N) 11 a.m. KCAL The Talk LL Cool J and his wife Simone Smith; Gretchen Wilson performs. (N) 1 p.m. KCBS The Oprah Winfrey Show Roseanne Barr.
January 27, 2011
Will Ferrell will be joining "The Office" for four episodes at the end of Steve Carell's run. ( Los Angeles Times ) It's official: This year's Coachella is sold out. ( Los Angeles Times ) Indie darlings Wilco just got even more indie: They've formed their own music label. ( Los Angeles Times ) "Skins' " creator says his show is the "opposite of pornography. " Does that mean people who are against the show are actually pro-pornography? ( Los Angeles Times )
February 4, 2013 | By Jim Puzzanghera
WASHINGTON -- The Justice Department plans to file a civil lawsuit against Standard & Poor's for its ratings of mortgage-related investments leading up to the financial crisis, the company said Monday. The suit focuses on S&P's ratings in 2007 of some collateralized debt obligations, or CDOs -- securities that pool bonds and other assets, the company said. Such a suit "would be entirely without factual or legal merit," S&P said. "It would disregard the central facts that S&P reviewed the same subprime mortgage data as the rest of the market - including U.S. government officials who in 2007 publicly stated that problems in the subprime market appeared to be contained - and that every CDO that DOJ has cited to us also independently received the same rating from another rating agency," S&P said.
February 18, 2011 | By E. Scott Reckard, Los Angeles Times
Federal prosecutors have shelved a criminal investigation of Angelo R. Mozilo after determining that his actions in the mortgage meltdown ? which led to $67.5-million settlement against him ? did not amount to criminal wrongdoing. As the former chairman of Countrywide Financial Corp., Mozilo helped fuel the boom in risky subprime loans that led to the crippling of the banking industry and the near-collapse of the financial system. A federal grand jury in Los Angeles began probing Mozilo in 2008, and four months ago he agreed to pay a $22.5-million fine and to repay $45 million in what the government said were ill-gotten gains to former Countrywide shareholders.
September 3, 2010 | By Jim Puzzanghera, Los Angeles Times
Federal Reserve Chairman Ben S. Bernanke said Thursday that there was no way for the government to rescue Lehman Bros. from failure in 2008 without a huge loss of taxpayer money, and that he should have been "more straightforward" when explaining the decision to Congress shortly afterward. Appearing before the federal panel investigating the financial crisis, Bernanke said his vague congressional testimony less than two weeks after Lehman's collapse had helped feed what he called a myth that the investment bank could have been saved.
August 19, 2011 | Jim Puzzanghera
The backlash against Standard & Poor's for downgrading the U.S. credit rating adds to the company's problems in the nation's capital, where it faces investigations for its role in fueling the financial crisis with faulty assessments of mortgage-backed securities. S&P and the other credit-rating firms are widely believed to have enabled the near market meltdown by giving AAA ratings to many securities backed by risky subprime mortgages. The Financial Crisis Inquiry Commission called the credit-rating companies "essential cogs in the wheel of financial destruction.
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