Posts filed under “Legal”
Both ABC and Bloomberg TV, citing sources, said Spitzer was going to announce his resignation as Governor of NY.
Wall Street will be besides itself in an orgy of schadenfreude . . .
Update: March 10, 2008 3:45pm
Court document in NY Prostitution case is not an indictment;
document in NY case doesn’t name Spitzer, according to Fox Reporter – DJ
Excerpt from ABC:
Sources tell Eyewitness News that Governor Eliot
Spitzer is going to resign, after being linked to a prostitution ring
in a published report.
Spitzer officials wouldn’t immediately comment on the story. Spitzer, 48, is married and has three daughters.
Details about the prostitution ring were not immediately clear, but
last week federal prosecutors in Manhattan filed conspiracy charges
against four people accusing them of running a prostitution ring that
charged wealthy clients in Europe and the U.S. thousands of dollars for
The Times reported that a person with knowledge
of the governor’s role believes the governor is identified as a client
in court papers.
The Web site of the Emperors Club VIP
displays photographs of the prostitutes’ bodies, with their faces
hidden, along with hourly rates depending on whether the prostitutes
were rated with one diamond, the lowest ranking, or seven diamonds, the
highest. The most highly ranked prostitutes cost $5,500 an hour,
Spitzer has built his political legacy on
rooting out corruption. He made headlines battling Wall Street while
serving as attorney general. He won an historic share of the
vote for governor in 2006, and took office vowing to continue his
no-nonsense approach to fixing one of the nation’s worst governments.
Today’s WSJ had a run of Real Estate related articles that quite frankly, were rather surprising in their gentle naiveté.
The first is the somewhat surprised acknowledgment that speculators were involved in the run up and subsequent deflation of Housing prices.
Of course, every asset class attracts speculators when prices rapidly rise. Its why every big boom ends in a final blow off top — that’s the impact of late-to-the-party speculators — followed by the inevitable spectacular collapse.
The latest after-the-fact revision (see our discussion on "predatory borrowing") has a new name: occupancy
This new nonsense word is a way to duck responsibility for failing to do appropriate due diligence prior to lending out money. Here are the details:
"As lenders pore over their defaulted mortgages, they
are learning that the number of people who bought homes as investments
is much greater than previously believed. Such borrowers turn up frequently in analyses of loans
that defaulted within months after origination. In many cases, these
speculators lied on loan applications, saying they intended to live in
the homes in order to obtain more favorable loan terms or failed to
provide the requested information.
Roughly 20% of mortgage fraud involved "occupancy
fraud," or borrowers falsely claiming they intended to live in a
property, according to an analysis by BasePoint Analytics, a provider
of fraud-detection solutions in Carlsbad, Calif. Another study, by
Fitch Ratings, looked at 45 subprime loans that defaulted within the
first 12 months even though the borrowers had good credit scores. In
two-thirds of the cases, borrowers said they intended to live in the
property but never moved in."
Speaking of fraud — I am curious about these lenders, now claiming they were defrauded by speculators. How many of them asked the following questions, and then did the due diligence to verify the data:
- Do you presently own your primary residence?
- Is your home currently listed for sale? Or, are you in contract ?
- What is the asking price? Who is your real estate agency?
- RE Agent name? What’s their phone number?
Of course, none of these questions were asked, and no due diligence was performed, as these lenders were
whoring clerking out loans as fast as they could process them. After the fact, this lack of due dilly has become "Occupancy Fraud."
If there was any genuine interest in not lending to speculators, its easy enough to verify . . .