Sunday Reads: “Sanctions that didn’t exist before this regime took office.” – Mike Pompeo, Secretary of State.Posted: July 29, 2018
A lot of shit went down this week, the reason I chose to highlight the quote up top is simply because of the key word: Regime.
Many news outlets made quite a point about Mike Pompeo’s Freudian slip, referring to the tRump Administration as “this regime.”
THE LEAD WITH JAKE TAPPER Senate Grills Secretary of State Mike Pompeo. Aired 4:30-5p ET CNN.com – Transcripts
“Sanctions that didn’t exist before this regime took office.” – Mike Pompeo, Secretary of State.
Now, I read the transcript…link above, and honestly…I don’t know what the fuck “regime” Pompeo is talking about; so much bullshit is spewing from his mouth. But if he is indeed referring to tRump…he spoke the words we all know to be true.
I think the following sentiment has been mentioned before:
Take a look at this thread, it deals with Stein and Sanders and Tad Devine…and only strengthens my belief in #FuckBernieSanders :
Here is another long thread to check out, about my state…Georgia and the asshole named Kemp currently running for Governor:
A few tweets that continue to question the 2016 elections.
Here are some associations with tRump and his “friends” ….including the folks that perhaps Putin may have wanted to be excluded from sanctions?
The Trump Administration may lift sanctions on a major Russian company founded by one of Vladimir Putin’s top allies.
Treasury Secretary Steve Mnunchin told reporters during G-20 meeting of Finance Ministers last week, that the department may remove sanctions on Rusal, an international aluminum company that controls an estimated 6 percent of the global market that has long been controlled by Oleg Deripaska. Deripaska is a Putin confidant who has been implicated in suspected coordination between Moscow and Trump’s 2016 presidential campaign, but he has repeatedly denied involvement. As Reuters reported, the department is mulling the move in the wake of a sharp increase in aluminum prices that followed Trump‘s imposition of a 10 percent tariff on aluminum imports.
“The objective was to impact the oligarchs, not to impact the hardworking people of Rusal as a result of the sanctions,” Mnunchin told CNN, which reported the comments on Friday.
In April, Treasury’s Office of Foreign Assets Control imposed sanctions on Deripaska and Rusal, along with 24 other Russians, in a delayed action aimedat punishing Russia for interfering the 2016 election. Under the sanctions, the US assets of the individuals and firms listed are frozen, and American citizens are barred from doing business with them. Deripaska was specifically singled out for “having acted or purported to act for, or on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation.”
Updates on tRump’s crimes against humanity:
The latest on that 6 year old who was assaulted at a detention center…she has been reunited with her family.
A 6-year-old girl was allegedly sexually abused while at an Arizona-based detention center, The Nation reports. The child, who The Nation refers to as D.L., reportedly left Guatemala with her mother because of gang violence; they were separated at the U.S. border on May 24, as a result of the Trump administration’s “zero tolerance” immigration policy. The 6-year-old was then placed in Casa Glendale, a detention center run by Southwest Key Programs.
According to The Nation, D.L.’s father (who lives in California) received a phone call from Southwest Key on June 11, telling him that another child in the detention center had allegedly “fondled” his daughter and other children. Mark Lane, a spokesperson representing D.L.’s family, told The Nation that the 6-year-old’s father was instructed “not to worry” because “Southwest Key was changing some of its protocols and such abuse would not happen again.” (The report notes that several weeks later, D.L.’s father received another phone call, alerting him to a second instance of alleged abuse by the same suspect.)
The Nation also reports that D.L. was asked to sign a form that was part of the detention center’s “intervention protocol.” The form, a copy of which was obtained by The Nation, noted that D.L. was instructed to maintain her “distance from other youth involved,” and that she was made aware it was her “responsibility to maintain appropriate boundaries with peers/workers.” The document also noted that it was D.L.’s “responsibility to report sexual abuse, sexual harassment, and/or inappropriate sexual behavior.”
Boston Boomer mentioned this yesterday in the comments:
But this is really the disgusting part:
Almost as soon as President Trump took office, he began rolling back health care rules that had angered religious groups for much of the last decade. First, Trump signed an executive order declaring that his administration would protect religious freedom. Then, his administration ruled that health insurance plans offered by large employers don’t have to cover contraception for employees, an about-face from a contentious Obama policy. The Department of Health and Human Services created a Conscience and Religious Freedom Division, signaling a new focus for the agency. A proposed rule could require all 5,500 hospitals in the U.S. to post notices informing individuals and entities that they are protected from religious discrimination.
The changes are all designed to ensure that employers, health care institutions and providers don’t have to participate in health care practices they object to for ethical or moral reasons. But even decades before the Trump administration moved to roll back Obamacare policies, some religious hospitals — in particular, Catholic hospitals — already had the green light from the government to deny certain treatment options to their patients. These hospitals’ right to refuse care is generally unquestioned, creating a dilemma for the people who walk in the door: What happens when you need or want a standard medical service, but the hospital won’t provide it?
In a growing number of communities around the country, especially in rural areas, patients and physicians have access to just one hospital. And in more and more places, that hospital is Catholic. That sounds innocuous — a hospital is a hospital, after all. But Catholic hospitals are bound by a range of restrictions on care that are determined by religious authorities, with very little input from medical staff. Increasingly, where a patient lives can determine whether Catholic doctrine, and how the local bishop interprets that doctrine, will decide what kind of care she can get.
This is worrying news:
I lit candles for Lewis this morning…I hope he gets better…
Okay, so the storm is not called “Levon” but “Leon.”
It’s just that I had substituted the name Leon in that Elton John song as it “played” in my head, all day long yesterday…
Uh, Good morning!
Find the latest on the weather system the weather channel is calling Leon:
This storm is kicking the South’s ass…But this is no laughing matter: State troopers headed to schools where students, teachers are… | www.ajc.com
Shortly before midnight, about 50 students were still aboard Atlanta Public School buses, a spokeswoman for the district said. In DeKalb County, at least 20 vehicles were involved in a pileup on U.S. 78 eastbound, past Hugh Howell Road. All lanes were blocked around 1 a.m. Wednesday.
These kids are stuck in buses, some are stuck overnight in schools: State troopers to help with security at schools where stranded kids are spending the night | AccessNorthGa
Gov. Nathan Deal says state troopers are being sent to schools where students are stranded because they could not make it home on clogged roads caused by Tuesday’s snowstorm.
The governor spoke at a news conference at he State Capitol late Tuesday night.
Deal also said that state and local officials will try to rescue those stranded along highways that are at a standstill. Normal 30-minute commutes have turned into hourslong odysseys for thousands.
A winter storm that would probably be no big deal in the North all but paralyzed the Deep South, bringing snow, ice and teeth-chattering cold, with temperatures in the teens in some places.
The winter storm has mostly moved into the Carolinas, but metro Atlanta traffic remained gridlocked at 4 a.m. Wednesday as Tuesday’s afternoon rush hour from hell stretched into hour 16.
Traffic was still bumper-to-bumper and barely moving on several Atlanta interstates, including on I-75 north of downtown, on I-20 west of downtown and on the top-end Perimeter.
Imagine those people stuck on the road without medicine…and running out of gas.
There were warnings…I don’t understand why the schools did not close or plan for a delayed opening. My kids almost did not make it home from the bus themselves, the snow hit so fast and hard. We could not believe how close the school board cut it this time. It really amazes me how many people got caught up in this mess.
In Atlanta, the gridlock was so bad, a baby girl was delivered alongside Interstate 285, said Capt. Steve Rose, a spokesman for Sandy Springs police in suburban north Atlanta. He said an officer made it to the mother and her husband in time to help with the delivery, which he described as “flawless.” There were no complications and the family was taken to a hospital.
That is something, eh?
Yesterday was the SOTU: Full text: State of the Union | Al Jazeera America
President Obama’s 2014 address was his fifth in office. Read the entire transcript here, all 6,777 words
What does it mean if I did not watch the speech live, nor did I watch a taped version, I haven’t read any commentary or summaries, and the thought of reading all those 6,777 words makes me want to throw up everything I ate this evening. Even the possibility of nodding off during the speech was nothing to look forward to…
Supreme Court Justice Ruth Bader Ginsburg sits among the other justices during President Obama’s address. Win McNamee, Getty Images
• Did Justice Ginsberg fall asleep? Supreme Court Justice Ruth Bader Ginsburg, 80, was trending during Obama’s speech, with viewers speculating that she had fallen asleep, or at least was in full head-bob mode. We may never know for sure if it was a slump or a nap.
It would not be the first time she nodded off…But WTF is this all about?
Rep. Trey Gowdy, R-S.C., left, and Sen. Tim Scott, R-S.C., share a sign as they take their seats for the president’s speech. Charles Dharapak, AP
You know, that is pretty close to the sign for vagina (when I took ASL in college…from what I remember) could it be code for an anti-woman PLUB agenda? Or is it some little “I heart pussy” thing? Perhaps they were making reference to this:
To whet your State of the Union pallate, I give you: “The State of the Uterus.”
The State of the Uterus is a fun new video – it literally just went live – about a serious issue, women’s rights in America.
Here’s a portion of their press release:
We all know the State of the Union is strong, but what about the State of the Uterus? On this most ceremonial of days in the nation’s capital, a uterus is taking up that question and will deliver a live address moments after President Obama’s Speech and the Republican Party responds.
“Madam Uterus” (UTOUS) for so she shall be addressed — will talk at length about the state of the uterus, and the vagina, in a country where state legislatures have variously deemed that women are pregnant before they are pregnant, have magical powers to deactivate rape sperm, and must be forced to carry stillborn babies to term.
“The state of our uterus is in the hands of so many,” Madam Uterus will say, according to the text of her prepared remarks. “As the old saying goes, behind every successful uterus is a man calling her a whore while cutting her pay.”
So here are a few links on the SOTU speech:
After the speech there was this: Rep. Grimm Threatens NY1 Reporter Following State of the Union – NY1
Staten Island Rep. Michael Grimm physically threatened NY1 political reporter Michael Scotto at the conclusion of an interview in the Capitol Rotunda following Tuesday night’s State of the Union address.
Grimm’s threats came at the end of a brief interview in which he discussed the president’s speech, calling the address “divisive.”
Scotto then tried to ask the congressman about the ongoing federal investigation into his 2010 campaign fundraising:
Grimm told the reporter:
Grimm: “Let me be clear to you, you ever do that to me again I’ll throw you off this f—–g balcony.”
Scotto: “Why? I just wanted to ask you…”
Grimm: “If you ever do that to me again…”
Scotto: “Why? Why? It’s a valid question.”
Grimm: “No, no, you’re not man enough, you’re not man enough. I’ll break you in half. Like a boy.”
Hmmm…taking some pointers from Christie? Or did he watch that movie A Few Good Men? Or perhaps he was listening Divine on his iPod during the speech: You Think You’re A Man Lyrics – Divine
You will notice in the video…there are a lot of boys being tossed over balconies.
Digby had this nugget of news at her site: Hullabaloo
Iceland’s big problem: bringing 4% unemployment down to 2%
At one time there was a big debate about whether or not Iceland came out on top during our current depression, largely due to it’s hard core treatment of its banks. It was always pretty obvious that they made the smarter decision. It looks even more obvious today:
Iceland let its banks fail in 2008 because they proved too big to save.
Now, the island is finding crisis-management decisions made half a decade ago have put it on a trajectory that’s turned 2 percent unemployment into a realistic goal.
While the euro area grapples with record joblessness, led by more than 25 percent in Greece and Spain, only about 4 percent of Iceland’s labor force is without work. Prime MinisterSigmundur D. Gunnlaugsson says even that’s too high.
“Politicians always have something to worry about,” the 38-year-old said in an interview last week. “We’d like to see unemployment going from where it’s now — around 4 percent — to under 2 percent, which may sound strange to most other western countries, but Icelanders aren’t accustomed to unemployment.”
It doesn’t sound strange to me, it sounds fucking awesome!
The island’s sudden economic meltdown in October 2008 made international headlines as a debt-fueled banking boom ended in a matter of weeks when funding markets froze. Policy makers overseeing the $14 billion economy refused to back the banks, which subsequently defaulted on $85 billion. The government’s decision to protect state finances left it with the means to continue social support programs that shielded Icelanders from penury during the worst financial crisis in six decades.
We, on the other hand are making nearly 7% official unemployment (along with many millions not even being counted) the new normal. And we’re slashing our meager safety net, even food assistance. But our megabanks are doing very well which is what matters.
Geez, I really want to move to Iceland…to hell with this country’s right-wing assholes who have taken over everything. I mean, how can we even be at the point where the dicks are actually debating this shit…
Submitted without comment other than to notice how several of the candidates refer to evolution in schools as being part of a “politically correct” conspiracy.
From left: Sen. Dan Patrick, Lt. Gov. David Dewhurst, Agriculture Commissioner Todd Staples and Land Commissioner Jerry Patterson
Texas GOP Lt. Gov. Candidates Agree: More Religion Needed in Science Class
Oh…can someone get me outta here? I can’t take it anymore!
This is all I can bring myself to write, y’all go ahead and give it up in the comments below.
Enjoy your day…
After spending last night watching Lost in America...it made me think about Skippy, the manager at the Der Wienerschnitzel and those frozen fries, you know, the importance of details that make you great at your job. (If you forgot the scene I am talking about, the manager of the hot dog joint tells Albert Brooks just how wonderful his wife, Julie Hagerty, is…because of her attention to details, she noticed he had served “frozen” fries…with bits of ice inside of them.)
I wonder if Bank of America’s Bryan Moynihan, had such an attention to detail, but according to this article by Matt Taibbi, it looks like attention to detail is obviously not essential to a CEO…snark. Bank of America CEO Brian Moynihan Apparently Can’t Remember Anything | Matt Taibbi | Rolling Stone
Thank God for Bank of America CEO Brian Moynihan. If you’re a court junkie, or have the misfortune (as some of us poor reporters do) of being forced professionally to spend a lot of time reading legal documents, the just-released Moynihan deposition in MBIA v. Bank of America, Countrywide, and a Buttload of Other Shameless Mortgage Fraudsters will go down as one of the great Nixonian-stonewalling efforts ever, and one of the more entertaining reads of the year.
In this long-awaited interrogation – Bank of America has been fighting to keep Moynihan from being deposed in this case for some time – Moynihan does a full Star Trek special, boldly going where no deponent has ever gone before, breaking out the “I don’t recall” line more often and perhaps more ridiculously than was previously thought possible. Moynihan seems to remember his own name, and perhaps his current job title, but beyond that, he’ll have to get back to you.
Egyptian police battled thousands of protesters outside President Mohamed Mursi’s palace in Cairo on Tuesday, prompting the Islamist leader to leave the building, presidency sources said.
Officers fired teargas at up to 10,000 demonstrators angered by Mursi’s drive to hold a referendum on a new constitution on December 15. Some broke through police lines around his palace and protested next to the perimeter wall.
The crowds had gathered nearby in what organizers had dubbed “last warning” protests against Mursi, who infuriated opponents with a November 22 decree that expanded his powers. “The people want the downfall of the regime,” the demonstrators chanted.
“The president left the palace,” a presidential source, who declined to be named, told Reuters. A security source at the presidency also said the president had departed.
Building Lego towers is a competitive business – this one in Prague, at 32.5m, may be the tallest to date
It’s not just children who like to build towers with Lego – the internet is alive with discussion on how many Lego bricks, stacked one on top of the other, it would take to destroy the bottom brick. So what’s the answer?
There has been a burning debate on the social news website Reddit.
It’s a trivial question you might think, but one the Open University’s engineering department has – at the request of the BBC’s More or Less programme – fired up its labs to try to answer.
“It’s an exciting thing to do because it’s an entirely new question and new questions are always interesting,” says Dr Ian Johnston, an applied mathematician and lecturer in engineering.
The average maximum force the bricks can stand is 4,240N. That’s equivalent to a mass of 432kg (950lbs). If you divide that by the mass of a single brick, which is 1.152g, then you get the grand total of bricks a single piece of Lego could support: 375,000.
So, 375,000 bricks towering 3.5km (2.17 miles) high is what it would take to break a Lego brick.
NASA’s Voyager 1 spacecraft has encountered a “magnetic highway” at the edge of the solar system, a surprising discovery 35 years after its launch, the experts behind the pioneering craft said Monday.
Earlier this year a surge in a key indicator fueled hopes that the craft was nearing the so-called heliopause, which marks the boundary between our solar system and outer space.
But instead of slipping away from the bubble of charged particles the Sun blows around itself, Voyager encountered something completely unexpected.
This is amazing…think about how far Voyager has gone.
The craft’s daily radio reports sent back evidence that the Sun’s magnetic field lines was connected to interstellar magnetic fields. Lower-energy charged particles were zooming out and higher-energy particles from outside were streaming in.
They called it a magnetic highway because charged particles outside this region bounced around in all directions, as if trapped on local roads inside the bubble, or heliosphere.
“Although Voyager 1 still is inside the Sun’s environment, we now can taste what it’s like on the outside because the particles are zipping in and out on this magnetic highway,” said Edward Stone, a Voyager project scientist based at the California Institute of Technology, Pasadena.
We got ourselves all excited for NASA’s Mars press conference today, even though we already knew it wasn’t about life on the red planet, but what we should have been paying attention to was happening nearly 11.5 billion miles away in the heliosphere. The Voyager 1 spacecraft has encountered a new region of our solar system. What’s even more exciting is that NASA scientists believe this region is the final barrier between Voyager and interstellar space. That’s so much more impressive than chlorine on Mars.
The Voyager 1 spacecraft is now so far out into space that light from the Sun takes over 34 hours to reach it. NASA debated whether this new region should still be considered part of our solar system, but project scientist Edward Stone makes the call by saying, “Although Voyager 1 still is inside the sun’s environment, we now can taste what it’s like on the outside because the particles are zipping in and out on this magnetic highway.”
The scientists believe that Voyager will pass out of the solar system within the next two months or so. I’ve got one more space link for you this morning, it is about our Galaxy the Milky Way, New estimate suggests Milky Way mass of 1.6 trillion suns
Panorama of Milky Way from the inside: a mosaic of multiple shots on large-format film, comprising all 360 degrees of the galaxy from our vantage point. More about this image here. Image Credit: Digital Sky LLC via Wikimedia Commons
Our home galaxy the Milky Way is thought to be approximately 100,000 light-years wide and about 1,000 light-years thick. You often hear the estimate that the mass of our galaxy is equal to several billion suns, but some estimates have ranged up to twice that high, or even higher. Now some astronomers are suggesting a mass for the Milky Way of 1.6 trillion suns. The estimate isn’t just for stars but also includes the mass of our Milky Way’s invisible dark halo. It’s based on the first-ever measurement of the proper motion, or sideways motion along our line of sight, of a small galaxy satellite galaxy to our Milky Way. Ken Croswell reported on the role of this small galaxy – called Leo I – yesterday (December 3, 2012) in Scientific American.
There is a lot of information in that article, be sure to go and read the whole thing.
The rest of today’s post will be in link dump fashion…
An Amazing New Use for Ecstasy- Helping women deal with PTSD after rape.
Big Pharma Company Mocked Patients Who Got “Jawbone Death” from Drug: “Ma Toot Hurts So Bad” – Merck couldn’t care less about the patients…as long as they could make more money.
Noam Chomsky: What the American Media Won’t Tell You About Israel –Decades of hell in Gaza.
New research shows corrosion may accelerate failures at Fukushima Daiichi- Great…and guess what? There is nothing that can be done about it.
Be sure you read these couple of links on the NFL murder suicide this past weekend:
Regarding privacy in America…Laptop seizures by US government highlight 9/11-era climate of fear | Glenn Greenwald
And lastly, a bit of history…. Disability history month: Was Tamerlane disabled?
Tamerlane – derived from his nickname Timur the Lame – rose from obscurity to become a 14th Century conqueror of nations, who piled high the skulls of his enemies. It was quite a feat at a time when physical prowess was prized, writes Justin Marozzi.
Think of the greatest conquerors of all time and chances are you’ll quickly list Genghis Khan and Alexander the Great. It is rather less likely, unless you come from Central Asia or the Muslim world more widely, that you’d spare a thought for Tamerlane.
Yet in many ways this Tartar warlord, born near Samarkand in 1336 in what is now Uzbekistan, outshone both the Macedonian king and the Mongol warlord.
Lots of links, I know…but it is a busy time of the year, and if you can’t take it all in one shot…come back during the day when you have the time. And be sure to share the things you are reading about today…
My internet is running so slooooooow tonight. In fact, I could not even get the comic pages to load properly. So because of these technical problems, the post is going to be very short.
The first cartoon is funny, but I think the color is a bit off. Cagle Post – Political Cartoons & Commentary – » Boehner Ball
He needs to be orange…
If that IQ cartoon is too small, click the link up top to see the larger image.
What is on the GOP Christmas list?
For those of us who love hockey, this next cartoon is perfect. Cagle Post – Political Cartoons & Commentary – » Wonderful Life
This next one is for Dakinikat: Cagle Post – Political Cartoons & Commentary – » Illegal Department
And the last cartoon for you…Cagle Post – Political Cartoons & Commentary – » Egypt President Morsi
Alright, now for something real funny, ‘Feel My Pudgy Hands Now!’… And Other Incredible Lines From Lindsay Lohan’s Awful Liz & Dick Lifetime Movie
Did you miss Sunday night’s premiere of Lifetime’s maudlin movie Liz & Dick? The Elizabeth Taylor biopic starring Lindsay Lohan created something of a Twitter frenzy with its general horribleness… and unintentional comedy.
Most reviews of the movie boiled down to one concrete point: “Liz & Dick is the best comedy of the year!” And that’s because the acting and the dialogue were, shall we say… so awful it’s good.
A la Tommy Wiseau‘s much-loved stinkerThe Room, this Lohan debacle contained an endless stream of terrifically terrible one-liners.
Luckily, for comedy’s sake, Vultureput together a two-minute compilation of the biggest doozies of the night.
I missed the show, but from the video it looks like it was a laugh riot. Go to that link and watch it…but don’t do it while you are eating or drinking.
This is an open thread, have a wonderful evening!
The DOJ has filed a lawsuit against BOA on so-called “hustle mortgages” that accuses the lender of selling bad mortgages to Fannie and Freddie. I’m going to follow this, believe me, because it represents a ‘big deal’ for any one that does research in banking, lending, or moral hazard. I’m not a lawyer–nor do I play one on TV–so the finer parts of the law are not in my knowledge ballpark. I do have some knowledge of home value through the apprenticeship I did with a home appraisal service. However, I expect this to influence both lending behavior and the willingness of larger banks to merge with banks in bad shape. The latter is a trick used by regulators to deal with a problem bank. Bank of America is basically being sued over mortgages originated through a Countrywide program called the “hustle mortgage”. It supposedly continued the program after its merger to Countrywide.
This is the first civil fraud suit brought by the Department of Justice concerning mortgage loans sold to Fannie Mae or Freddie Mac.
Manhattan U.S. Attorney Preet Bharara said: “For the sixth time in less than 18 months, this Office has been compelled to sue a major U.S. bank for reckless mortgage practices in the lead-up to the financial crisis. The fraudulent conduct alleged in today’s complaint was spectacularly brazen in scope. As alleged, through a program aptly named ‘the Hustle,’ Countrywide and Bank of America made disastrously bad loans and stuck taxpayers with the bill. As described, Countrywide and Bank of America systematically removed every check in favor of its own balance – they cast aside underwriters, eliminated quality controls, incentivized unqualified personnel to cut corners, and concealed the resulting defects. These toxic products were then sold to the government sponsored enterprises as good loans. This lawsuit should send another clear message that reckless lending practices will not be tolerated.”
FHFA Inspector General Steve A. Linick said: “To prevent fraud, conducting quality reviews and complying with underwriting standards are critical. Countrywide and Bank of America allegedly engaged in fraudulent behavior that contributed to the financial crisis, which ultimately falls on the shoulders of taxpayers. This type of conduct is reprehensible and we are proud to work with our law enforcement partners to hold all parties accountable.”
SIGTARP Special Inspector General Christy Romero said: “The complaint filed today alleges serious and significant misrepresentations that Bank of America made before and during the time taxpayers invested $45 billion in TARP funds in the bank. SIGTARP and its law enforcement partners will investigate allegations of wrongdoing by TARP recipients, particularly conduct that results in substantial losses to the government and taxpayers.”
Are we beginning to see the DOJ move on the banksters? Has this got anything to do with the stampeded to Romney by all things Wall Street?
The Bank of America lawsuit is the sixth brought against a major U.S. bank by the Justice Department in less than 18 months over what Bharara called “reckless mortgage practices in the lead-up to the financial crisis.”
This month, the government sued Wells Fargo & Co. (WFC), one of the biggest mortgage lenders and service, over claims the San Francisco-based bank made reckless loans that caused losses for a federal insurance program when they defaulted. The complaint alleges misconduct over more than a decade related to the bank’s participation in a Federal Housing Administration program and follows similar cases against other lenders including Citigroup Inc. (C) and Deutsche Bank AG. (DB)
A state and federal task force is investigating misconduct in the bundling of mortgage loans into securities before the housing bust. The group’s first legal action was this month, when New York Attorney General Eric Schneiderman sued JPMorgan Chase & Co. (JPM), the biggest U.S. lender, over defective mortgage loans underlying securities, a suit he said would act as a template for other such cases. The bank has denied wrongdoing.
Fannie Mae and Freddie Mac losses totaled more than $1 billion, Bharara said. The Justice Department’s complaint was brought under the federal False Claims Act, which allows for triple damages.
Fannie Mae and Freddie Mac have operated under U.S. conservatorship since 2008, when they were seized amid subprime mortgage losses that pushed them toward insolvency.
“Bank of America has stepped up and acted responsibly to resolve legacy mortgage matters,” Larry DiRita, a spokesman for the Charlotte, North Carolina-based company, said in an e-mailed statement. “The claim that we have failed to repurchase loans from Fannie Mae is simply false. At some point, Bank of America can’t be expected to compensate every entity that claims losses that actually were caused by the economic downturn.”
The government said in the complaint that Bank of America “systematically removed every check” in the issuance of mortgages and then sold the “flawed” mortgages to Fannie Mae and Freddie Mac. Both relied on Bank of America’s assurances that the mortgages they purchased complied with their standards, the U.S. said.
According to the complaint, Countrywide initiated “the Hustle” in 2007 just as mortgage loan defaults were increasing nationally and Fannie Mae and Freddie Mac were tightening their loan purchasing standards to reduce risk. The Countrywide program did just the opposite, the U.S. said.
According to court records, Wednesday’s case was originally filed under seal in February by Edward O’Donnell, a Pennsylvania resident and former executive vice president at Countrywide Home Loans who had worked there between 2003 and 2009.
In that complaint, O’Donnell said Countrywide and later Bank of America dismissed his “numerous” objections to the Hustle, and that he became “one of the lone voices” in his division pointing to escalating loan quality issues and defaults.
O’Donnell could not immediately be reached for comment, and his lawyer did not immediately respond to requests for comment.
Grab your bowl of popcorn. This should be interesting.