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
Bear Stearns Realized Need for Funding March 13, WSJ Says
By Nicholas Larkin

March 15 (Bloomberg) -- Bear Stearns Co. executives realized late afternoon of March 13 that the firm wouldn't be able to withstand what was effectively a ``run on the bank,'' the Wall Street Journal reported, citing unidentified people familiar with the events.

At about 4:30 p.m. local time that day Chief Executive Officer Alan Schwartz became ``convinced'' Bear Stearns was facing a ``desperate situation'' after securities firms began insisting on cash instead of accepting collateral and hedge funds started withdrawing cash, the newspaper said.

Bear Stearns and officials from the Securities and Exchange Commission told the Federal Reserve on a conference call at 7:30 p.m. that the bank had lost ``far more'' of its liquidity that day than it had realized, the Journal said.

Officials including Federal Reserve Chairman Ben S. Bernanke, New York Fed President Timothy Geithner, Treasury Secretary Henry Paulson and Robert Steel, the Treasury's undersecretary for domestic finance, convened by conference call at about 5 a.m. yesterday and the Federal Reserve decided by 7 a.m. to offer a loan via JPMorgan Chase & Co., the newspaper said. Paulson then called and briefed President George W. Bush, who was due to speak on the economy in New York, the paper said.

To contact the reporter on this story: Nicholas Larkin in London at
Quote 0 0
Write a reply...