Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
Articles |The FORUM |Law Library |Videos | Fraudsters & Co. |File Complaints |How they STEAL |Search MSFraud |Contact Us
Nye Lavalle
Let me get this, hmm? A Wall St. American Firm loses its shareholders, investors, bondholders and its own money and causes a recession or even depression [yes the D word]. Now, they go overseas to help overseas companies and nations invest THEIR wealth? ARE YOU KIDDING ME? Who's drinking the kool aid here? How stupid would a King, prince, sheik, president or nation be to give ANY of their wealth or assets to the Wall St firms, even if you think you own them. Look at the billion plus investment one made in Bear Stearns that has lost hundreds of millions already. Wall St firms need to go and be replaced with new ones. The Good ol' boy game is over. More transparency and democracy for the system!



Money Managers in U.S. Hanker for a Slice of Sovereign-Wealth Pie
By DIYA GULLAPALLI
January 26, 2008; Page B1
There is a new courtship ritual among U.S. money managers hungry for business: They are wooing the world's cash-rich foreign governments.

Firms including State Street Corp., Franklin Resources Inc. and Janus Capital Group Inc. are pursuing foreign-government investment funds -- which operate from Abu Dhabi to Beijing to Oslo -- in hopes of managing a pile of their money in return for lucrative fees.

Foreign-government money is growing in importance in the U.S. financial world. In recent months, Chinese and Middle Eastern governments have bought sizable stakes in Wall Street firms, including Citigroup Inc. and Morgan Stanley.

Money managers have long helped foreign governments invest their assets. But as these "sovereign wealth" investment funds have started shifting away recently from traditional U.S. Treasury holdings to riskier investments like stocks and real estate, the job has gotten more lucrative. (See Breakingviews.)

One client being watched closely is the $200 billion China Investment Corp. fund. The fund is planning to invest about a third of its money abroad, and earlier this month was slated as the deadline for financial firms world-wide to apply to help with investing. The fund is estimated to have taken in more than 100 applications, and could potentially notify winning managers in coming weeks.

It is much bigger than some recent Asian offerings, like China's national social-security fund, which meted out an initial $1 billion to managers including AllianceBernstein Holding LP and and Allianz Global Investors in 2006.

For money managers, this source of revenue has become important as inflows from defined-benefit pensions and certain mutual-fund markets have flattened industrywide.

Government-affiliated funds like these are set up by nations to help invest their money. Some of these funds, particularly in the Middle East, have ballooned in size as oil prices have soared. In Asia, meantime, the export boom is fattening government coffers.

Altogether, government funds are home to about $2 trillion to $3 trillion world-wide, and are expected to top $12 trillion in a decade, according to British bank Standard Chartered PLC.

These funds could outsource as much as 20% of assets to external investment firms, and $200 billion a year may be up for grabs among money managers in the next five years as the funds increase, according to Morgan Stanley research. That would add to areas like the $12 trillion U.S. mutual-fund industry on which most managers already focus.

Merrill Lynch & Co. estimates a potential shift of $1.5 trillion to $3 trillion of assets into the global asset-management industry in coming years, generating $4 billion to $8 billion annually in extra fees.

While payment structures vary, outside managers have been known to earn as much as 0.4% of such institutional assets in fees.

More funds are focused on areas like emerging-market debt to boost returns and lower exposure to the weak U.S. dollar, said Bill Yun, president of Franklin Templeton Institutional.

"It is not just the inherent growth of those pools of assets," but the fact that they are dabbling in more complex and sophisticated investments that makes them appealing, said Jay Hooley of State Street Corp. at a recent conference.

Challenges are emerging for the firms scrambling for a share of this business. In particular, competition has given foreign funds more leverage in negotiating contracts and hiring outside managers. Many managers said sovereign funds are favoring firms with local offices or other investments in the country.

You "can't just fly in and fly out" to win business, because the "funds are becoming more sensitive to your commitment to the region," said Stephane Prunet, global chief executive of Axa Rosenberg, part of Axa Investment Managers Ltd. Axa Rosenberg's office in Singapore, for instance, has helped the firm win more business in the country.

Invesco Ltd. said its operations in China have been helpful in managing money there. Mr. Yun of Franklin Templeton said the same is true of his firm's Beijing office.

Many funds also are doing more of their own screening for external managers rather than relying on outside data or advice from consultants, said Ric van Weelden of Janus Capital International.

Norway's government pension fund, for instance, also has investment teams in New York, Shanghai and London to help keep a close eye on their external managers, said Mr. van Weelden. This means more competition in the search for new investment ideas and managers, and, in some cases, more demands.

As foreign-government funds invest in Wall Street banks, it is stirring up protectionist fears over how much say they might have in the firms' operations. Criticism also is mounting over poor financial disclosure, given many of the funds offer scant data on their investments.

To counter these issues, China's fund has been disclosing criteria for choosing external money managers. The fund explains that applicants must have more than six years of investment experience in the asset class for which they apply, and must already have total assets under management of at least $5 billion, with no severe regulatory penalties in the past three years.

The window for opportunities like these, while open now, also could snap shut in coming years, because many government funds are ramping up their own in-house expertise.
Quote 0 0
That's the danger of politicians who put foriegn interests first and a big spending high debt government coupled with a consumer driven economy, and no energy independence.

Perhaps worst of all the foreign investments prop up our economy by funding the debt. A shot doesn't need to be fired we can be taken over by checkbook warefare and monetary manipulation and tax stucturing.

Our fraud has a huge role in this foreign takeover and laundering the assets our of the country. They have used our mortgages to fund overseas investments and influence.

Many of our favorit and well liked politicians are not what they seem to the general public and even the informed who do not think they would sell us out like this.
Quote 0 0

Nye good post on a pertinent subject.

 

But let us not feel sorry for the Asian tycoons and especially the Saudi

ultra-deep pockets like those of Abu Dhabi Investments. These guys

didn't just fall off the turnip truck.. Indeed 'ol AD put together one of

the shrewdest investments since we bought Alaska at 3 cents an acre

from Russia and Manhattan for $27 bucks from an Indian tribe.

 

Anyone who looks at the fine print on the Citigroup bail-out by Abu and

company will be flabbergasted at how one sided the deal really was!!!

It is next to impossible (except for a nuclear holocaust) for ADI to lose

any money and a very handsome profit is virtually assured.

 

FACT: Citigroup was desperate and backed into the Abu Dhabi Palace

with their hands on their ankles.. Whereupon AD broke it off in the arse

of the highly distressed and vulnerable CitiGang.  

 

Ed Cage  |  Plano Texas  |  ecagetx@gmail.com  |  972-596-4363

 
- - -  ON:  - - - -
Citigroup gets $7.5 billion infusion
from Abu Dhabi
Bank still has to do more to keep capital levels up to scratch,
analysts say
LONDON (MarketWatch) -- Citigroup Inc. said it got a $7.5 billion injection from the Abu Dhabi Investment Authority, a much-needed shot in the arm as the financial-services giant weighs cutting more jobs and slashing the value of debt securities on its balance sheet.
The deal eased concern among some analysts that the bank would have to cut its dividend to maintain important capital levels. It also boosted confidence by showing that a major investor is willing to back Citi.
"The dividend in my view is well protected," Dick Bove, an analyst at Punk Ziegel & Co., wrote in a note to clients on Tuesday. "The sale indicates active interest among pools of money to invest in this company." He upgraded the stock to buy from market perform.
Still, other analysts remained worried, noting that Citi may still have to sell assets and raise more capital next year.
"Further capital raises and balance sheet actions may be necessary in 2008, as balance sheet risks linger," John McDonald, an analyst at Banc of America Securities, wrote in a note to investors.
Citigroup's shares rose 1.7% to close at $30.32 on Tuesday. The stock, which dropped below $30 for the first time in more than five years on Monday, has lost 40% of its value this year. The deal also helped lift the broader stock market. See full story.
 - - -  OFF  - - - -
Quote 0 0
Write a reply...