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.
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Joe B

Maybe the moderators would consider pinning this.

 

I would like to see if we can consolidate the reports of write-downs of the banks over the last couple of months. Heck, we could even put out an over/under!!

 

Anyway, here's Citi bank, http://www.reuters.com/article/businessNews/idUSN1945544220071119?feedType=RSS&feedName=businessNews:

 

What I particularly love about this one is that it is Goldman that is downgrading. Anybody have any interesting MS Fraud stories about these guys?


For those of you counting, thats $15 Billion over the next six months. Anybody want to bet it increases?

JB

Citigroup faces $15 bln writeoff, cut to "sell": GS

Mon Nov 19, 2007 12:01pm EST

By Jonathan Stempel

NEW YORK (Reuters) - Goldman Sachs & Co on Monday downgraded Citigroup Inc (C.N: Quote, Profile, Research) to "sell" from "neutral," and said the largest U.S. bank may have to write off $15 billion over the next two quarters as mortgage losses reduce earnings.

The downgrade sent Citigroup's shares down as much as 5.4 percent, leading a broad decline in financial services stocks.

Monday's report from analyst William Tanona came shortly after Citigroup's own chief U.S. equity strategist, Tobias Levkovich, upgraded the nation's banking sector to "overweight" from "market weight," calling selling pressure "overdone."

Goldman's forecast compares with the $8 billion to $11 billion that Citigroup on November 4 said it may write off this quarter for exposure to subprime mortgages and collateralized debt obligations. Charles Prince, Citigroup's chief executive, resigned the same day.

"With deteriorating consumer and housing metrics, Citigroup is facing mounting pressure across many businesses," Tanona wrote. "The lack of leadership at this point in Citigroup's storied history could not have come at a worse time."

Tanona also cut Citigroup's price target to $33 from $48, and his profit-per-share forecast to $3.80 from $4.65 for 2008, and to $4.60 from $5.20 in 2009.

He said the bank may need to cut its 54-cents-per-share quarterly dividend or find new capital to shore up capital levels.

The analyst also lowered his price targets for six other banks and brokerages: Bear Stearns Cos (BSC.N: Quote, Profile, Research), E*Trade Financial Corp (ETFC.O: Quote, Profile, Research), JPMorgan Chase & Co (JPM.N: Quote, Profile, Research), Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research), Merrill Lynch & Co (MER.N: Quote, Profile, Research) and Morgan Stanley (MS.N: Quote, Profile, Research).

Citigroup shares were down $1.61, or 4.7 percent, to $32.39 in late morning trading on the New York Stock Exchange, after earlier falling to $32.15. The 24-member Philadelphia KBW Bank Index (.BKX: Quote, Profile, Research) was down 3 percent. Citigroup shares touched $31.06 on November 8, their lowest since March 2003.

RISK CULTURE

Banks have announced more than $50 billion of write-downs tied to the U.S. housing slump, as defaults soared and the value of mortgages that investors deemed too risky plummeted.

The projected $8 billion to $11 billion write-down is on top of a top of a $1.83 billion mortgage-related loss that Citigroup took in the third quarter. The New York-based bank on November 4 said it had no plans to cut its dividend.

Citigroup also provided $7.6 billion of financing as of October 31 to so-called structured investment vehicles after they were unable to pay down maturing short-term debt, according to a November 5 regulatory filing.

Among 19 analysts who cover Citigroup, eight rate it "buy" or the equivalent, eight rate it "hold" and three rate it "sell," according to Reuters Estimates.

Goldman expects Citigroup will need write-downs of $11 billion this quarter and $4 billion in the first quarter of 2008. A $15 billion loss would, after taxes, wipe out close to six months of profit.

"(The) risk taking culture may be irreparably damaged," Tanona wrote.

In contrast, Citigroup strategist Levkovich on November 16 upgraded the banking sector, citing its "compelling valuations and beaten down earnings estimate revisions, not to mention repulsive sentiment around these stocks, a contrarian signal."

Levkovich also wrote that worries about subprime exposures have created a "pile-on effect that seems to be overdone." He admitted his upgrade may seem "fairly controversial."

(Reporting by Jonathan Stempel; Editing by Dave Zimmerman and Tim Dobbyn)

© Reuters 2006. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

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Ed Cage

Good post and good subject Joe:

"NEW YORK (Reuters) - Goldman Sachs & Co on Monday downgraded Citigroup Inc (C.N: Quote, Profile, Research) to "sell" from "neutral," and said the largest U.S. bank may have to write off $15 billion over the next two quarters as mortgage losses reduce earnings."

 

This dovetails in nicely with what I have been saying: Citi Residential's hiring of the infamous James Brantley of AMC/Ameriquest notoriety in spite of his dreadful reputation for fraud appears to have been an act of desperation.  Citi was in such dire straits that they had to risk hiring this double talking charlatan in hopes of stopping the bleeding the old fashioned way: Mortgage fraud, an area Brantley excels in.

 

As ye sow so shall ye reap I suppose..  

 

Anyway here’s some similar data on a more immediate timescale:

- - - - -  ON: - - - - -

S&P cut Bear Stearns’ credit rating after the company announced plans to write down $1.2 billion in subprime assets, which will likely result in its first quarterly loss since 1985 when the company went public. After the rating was revised from A+ to A, the stock price actually rose because the writedown was smaller than other securities firms’. Citigroup got its ratings lowered after writedowns of $9 billion and Merrill Lynch & Co was downgraded on writedowns of $8 billion.

        Meanwhile, Wells Fargo’s CEO John Stumpf, speaking at an investment conference, predicted that the worst is yet to come for the housing market. He said that this is the worst Real Estate market he’s seen in his 30-year career, and 2008 will probably be even worse. Wow he actually said that.” 

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Ed Cage

1804 Cross Bend, Plano Texas 75023

972-596-4363

ecagetx@tx.rr.com

 

 
 

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~beenawhile
Freddie Mac loses $2B, seeks new capital

 

WASHINGTON - The mortgage crisis intensified Tuesday as Freddie Mac, the nation's No. 2 buyer and guarantor of home loans, posted its largest quarterly loss ever and warned that it may need to curtail its business unless it can raise fresh capital.

 

Freddie Mac lost $2 billion in the third quarter, much more than Wall Street was expecting, primarily because it needed to set aside $1.2 billion to account for bad home loans. It also said it may cut by half its quarterly dividend of 50 cents per share.

That double dose of bad news sent Freddie Mac's shares skidding 25.5 percent, the largest decline in the two decades its shares have traded in public markets.

It also sent a shudder through the mortgage market since Freddie's loss was even larger than the $1.4 billion quarterly deficit of Fannie Mae, its bigger government-sponsored competitor

 

http://news.yahoo.com/s/ap/20071120/ap_on_bi_ge/earns_freddie_mac;

 

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bookie
What I would like to know is why we as homeowners cannot "write-down" the deflated value of our assets.

A question for the ages, no?

bookie
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Joe B
Bookie-

You can write down assets; what do you want to write down?

JB
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bookie
I was being facetious. I hardly think my mortgage lender will agree to a "writedown" of the mortgage they're holding for me to bring it inline with the "corrected" value of my home <wink>

I work with home builders (not for long maybe) and the whole land write-down business is nothing but a massive Ponzi scheme being perpetuated on the public and their shareholders. In most cases they don't even actually own the land they are writing down, they are simply writing down the mythical "goodwill" value of the options to buy said land.

It's insane. I was merely taking a poke at the ridiculosity of public companies being able to write down billions in imaginary asset value. There is certainly no private-party option to accomplish the same.

Crazy.

bookie
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Joe B
Bookie-

     Sorry, I thought you were looking for help... Good luck with your situation.

JB
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Ed Cage

Citigroup Update

 

Source:

http://www.mortgagedaily.com/

 

ON:

Citi Downgraded on Subprime Exposure
Shares of Citigroup Inc., which said earlier this month it would take subprime related charges of as much as $11 billion, were downgraded by a Wall Street investment banking firm that forecasts even higher losses for the financial services giant.”

OFF

 

Mortgage Daily article submitted by
Ed Cage
1804 Cross Bend, Plano Texas 75023
972-596-4363
ecagetx@tx.rr.com

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Ed Cage

22 Nov 2007

 

Further sub-prime losses in the US sent bank shares crashing yesterday

 

ON:   - - - - - - - -

“Fears that conditions on global money markets are deteriorating amid gloom at further sub-prime losses in the US sent bank shares crashing yesterday. Royal Bank of Scotland, Barclays and Lloyds TSB joined Northern Rock and Paragon on the sick list of finance companies expected to suffer from a prolonged credit crunch. Barclays sank 5% while RBS declined 3.7%. Paragon, the specialist buy-to-let lender, was the big loser along with Northern Rock, which last night plunged 12.5% to an all-time low of 84.8p, valuing the bank at £360m. Hank Paulson, US Treasury secretary, predicted that 2008 would be an even worse year for the US housing market than 2007, undermining what little confidence was left that the financial system could make a quick recovery from the freeze on lending that began in August.”

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Submitted by

Ed Cage

1804 Cross Bend, Plano Texas 75023

972-596-4363

ecagetx@tx.rr.com

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Ed Cage

http://www.thetruthaboutmortgage.com/wachovia-faces-3-billion-fourth-quarter-writedown/ 

Wachovia Faces $3 Billion Fourth Quarter Writedown

07Dec07

Wachovia Corp. could write down $3 billion worth of debt-related securities in the fourth quarter, cutting profit to a mere $3 million, according to analysts at Sanford C. Bernstein & Co.

“This will wipe out fourth-quarter earnings,” New York-based analysts Howard Mason and Michael Howard wrote in a note to investors Thursday.

The Charlotte-based bank earned $2.3 billion in the fourth quarter last year, but recent mortgage-related losses have put a dent in earnings, with third quarter profit falling 10 percent from year-ago levels after a $1.3 billion writedown.

On November 9th, Wachovia also said it wrote down the value of its collateralized debt obligations by $1.1 billion in October and set aside $600 million for fourth quarter loan losses.

In late January, Wachovia closed its subprime mortgage division, Equibanc, after “an intensive strategic review of its mortgage business,” but still run its wholesale mortgage unit Vertice.

Wachovia, the fourth largest bank in the U.S., bought World Savings, which was the nation’s second-largest savings and loan association, for $25.5 billion in October of 2006.

Shares of Wachovia were down 89 cents, or 2.02%, to $43.18 in late trading Friday, well below their 52-week high of $58.80. 

OFF ~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Submitted by
Ed Cage
Plano Texas
ecagetx@tx.rr.com

972-596-4363

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Joe B
UBS adds $10 Billion in write-downs.

http://www.msnbc.msn.com/id/22178391/

Subprimes Force UBS to Write Down $10B
By ERNST E. ABEGG
Associated Press Writer
The Associated Press
updated 8:00 a.m. ET, Mon., Dec. 10, 2007

ZURICH, Switzerland - Swiss banking giant UBS AG said Monday it will write off a further $10 billion on losses in the U.S. subprime lending market and will raise capital by selling substantial stakes to Singapore and an unnamed investor in the Middle East.

UBS will now record a loss for the fourth quarter and said "it is now possible that UBS will record a net loss attributable to shareholders for the full year 2007."

UBS said that the government of Singapore Investment Corp., or GIC, is investing 11 billion francs ($9.75 billion), while an undisclosed strategic investor in the Middle East is contributing the other 2 billion francs ($1.77 billion).

As recently as the middle of November, UBS had predicted a profit for the fourth quarter despite ongoing speculation about its subprime holdings.

"Conditions in the U.S mortgage and housing markets have continued to deteriorate, and we have updated our loss assumptions to the levels implied by the current distressed market for mortgage securities," the company's chief executive, Marcel Rohner, said in a statement.

"In our judgment these writedowns will create maximum clarity on this issue and will have the effect of substantially eliminating speculation," he added.

"UBS revises its outlook for its fourth quarter 2007 from an overall Group profit, as anticipated in its announcement of 30 October 2007, to a loss. It is now possible that UBS will record a net loss attributable to shareholders for the full year 2007."

In October the bank downgraded the value of some assets by over 4 billion francs ($3.4 billion) because of losses linked to the U.S. mortgage crisis.

The writedown meant UBS posted a net loss of 830 million francs ($712 million) in the period ending Sept. 30, the first quarter in nine years in which it suffered an operating loss.

Tony Tan, deputy chairman of GIC, said the 9 percent stake does not mean Singapore is seeking control of the Swiss bank.

"GIC is now the single largest investor in UBS and this is the largest investment GIC has made in any company," Tan said during news conference in Singapore. "We did not make it a condition that our investment should have a representation (on UBS's board.) We have no desire to control the business of the bank."

It was the first time that the publicity-shy GIC, which manages Singapore's foreign reserves, has revealed a major investment.

Western banks have lost billions of dollars from their exposure to U.S. subprime loans, and cash-rich sovereign wealth funds have been stepping in to help them boost their capital. Last month the Abu Dhabi Investment Authority, the sovereign investment fund of the Gulf Arab state, acquired a 4.9 percent stake in Citigroup Inc., the nation's largest bank, for $7.5 billion.

UBS said it attracted about 30 billion francs in new money from clients in October and November. Ensuring a strong capital base will allow the bank to continue to make acquisitions to further expand its wealth management business, when such opportunities arise, UBS Chairman Marcel Ospel told a conference call.

"Our losses in the U.S. mortgage securities market are substantial, but could have been absorbed by our earnings and capital base," Ospel said in a statement.

"The write-downs and capital raising represent a dramatic U-turn from guidance given by Chief Financial Officer Marco Suter just three weeks ago," said analysts Matthew Clark and Vasco Moreono of Keefe, Bruyette & Woods Ltd.

The fact that the capital-raising outweighs the write-down makes it appear that UBS is trying to draw a line under its subprime woes, Clark and Moreono said.

UBS shares gained 2.4 percent to 58.55 francs ($51.90) in Zurich.

__

Associated Press writer Balz Bruppacher in Bern contributed to this report.

URL: http://www.msnbc.msn.com/id/22178391/

For those of you keeping score at home, we are over $35 Billion and counting... For some perspective, in the last quarter there was somewhere around $10 Billion in new loans originated...

JB
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Ed Cage

Why Citi May Need a Merger 

The financial-services giant may need to pair up with another bank     
by Steve Rosenbush

As Citigroup (C) nears a decision on its new chief, it's becoming increasingly clear that the financial-services giant will present severe challenges for any executive. The latest development came on Dec. 10, when one research analyst said it will take years for Citigroup to recover from its billions of dollars in losses in the credit market and that it may even need to merge with a stronger partner to mend its balance sheet.

The company's writedowns (BusinessWeek.com, 11/13/07)—$6.5 billion in the third quarter and $8 billion to $11 billion in the fourth—prompted the resignation of Chief Executive Charles O. Prince III last month. David Hendler, a senior analyst at CreditSights, now says that such writedowns may put Citi in "a precarious position in terms of capital levels." The result, he wrote in a research report, is that "the company could have to consider options ranging from dividend cuts to major asset/business unit sales, and/or a full-scale breakup or even potentially M&A with a stronger bank."
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Submitted by
Ed Cage / ecagetx@tx.rr.com / 972-596-4363
 

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Goldman Sachs
We'll bite!

We bought Litton, (for an, "UNDISCLOSED" amount)

We'll buy ANYTHING!!!!!
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