Monthly Archives: October 2011

The Mortgage Foreclosure Settlement: Sometimes It’s Not About the Money

By Steven Berk on October 31st, 2011 Posted in In the Courts

Gretchen Morgenson yet again brings attention to a case of Main Street getting the short end of the stick. She was sanguine in her appraisal. In case you forgot, this was the case where banks flagrantly failed to comply with the most basic requirements governing mortgage foreclosures: If you thought this was the deal that… Continue Reading

Quick Links: Bank Fees, Welcome Competition, and Executive Compensation Abroad

By Steven Berk on October 28th, 2011 Posted in Consumer Protection

Some links that will get you ready for the coming weekend: Many of the biggest banks have begun to backtrack on their announced debit card fees. The banks had planned to charge between $3.00 and $5.00 to use debit cards for purchases. Wells Fargo continues to test the fee in five states, but JPMorgan and… Continue Reading

Rajat Gupta: What Was He Thinking?

By Steven Berk on October 26th, 2011 Posted in In the Courts

As the old proverb goes, "the fish rots from the head down." How can we expect mid-level managers and the like to act lawfully and ethically when they see Mr. Gupta walking away with a slap on the wrist? A product of the finest schools (the Indian Institute of Technology and Harvard Business School); the… Continue Reading

Quick Links: Europe’s Struggles, WikiLeaks’ Financial Issues, and Easing HARP’s Rules for Homeowners

By Steven Berk on October 24th, 2011 Posted in Consumer Protection

America’s economy is not the only one in trouble. Europe is hoping to reach an agreement before this Wednesday on how to resolve their current debt crisis, but not much optimism surrounds the upcoming decision. TIME explains that, based on the EU’s past history of putting narrow political interests in front of the greater good… Continue Reading

Citigroup Pays $285 Million for Getting Caught with its Hand in the Subprime Cookie Jar

By Steven Berk on October 20th, 2011 Posted in Banks and Financial Services

The SEC’s recent settlement with Citigroup wouldn’t even brush back Alex Rodriguez, so it’s certainly not scaring the world’s fourth-biggest bank into compliance. If the banks’ reaction to recent regulation is any indication, Citigroup will just levy more fees on its unsuspecting customers to pay off the $285 million legal tab in a few days…. Continue Reading

Groupon’s IPO: New Company, Same Old Tricks (Loses $20 Billion)

By Steven Berk on October 19th, 2011 Posted in Consumer Protection

Groupon is great. And they may still revolutionize the interaction between online and brick-and-mortar businesses, but do it the right way. No need to rely on what are nothing more than cheap carnival tricks.

The Face of Evil: Ponzi Schemer Nicholas Cosmo is Sentenced to 25 Years Imprisonment

By Steven Berk on October 17th, 2011 Posted in In the Courts

Source It’s one thing to cheat the securities markets—the "system"—by cajoling and paying friends for inside information. Getting an edge. It’s done everyday in every walk of life. In school, it might be taking a glance at your neighbor’s test—just a glance—to confirm your multiple choice selections. In sports, it might be taking steroids to… Continue Reading

Why Teach Financial Literacy?

By corporate observer guest on October 17th, 2011 Posted in Weekend Edition

Today, TCO welcomes guest blogger Amy Young. Please enjoy Amy’s post and feel free to visit her website, linked at the bottom of the post. Even those who are successful should be able to see that this country is going through a personal finance crisis. Many Americans don’t have the skills or resources necessary to… Continue Reading

Elizabeth Warren: Occupy Wall Street, ‘Formidable,’ and Other Comments on the Campaign

By Steven Berk on October 14th, 2011 Posted in Consumer Protection

I am all in for Elizabeth Warren. Even before the flop. I may not even look at the cards in my hand. Why? One word. She is formidable. Yes, there are many to choose from: smart, (the oft-cited Harvard Law Professor sure is smart), tenacious, straightforward, tireless, charming, persuasive, possessing of the common touch,… Continue Reading

Raj Rajaratnam Sentenced to 11 years in Federal Prison

By Steven Berk on October 13th, 2011 Posted in Banks and Financial Services

Judge Richard H. Howell sentenced Raj Rajaratnam to 11 years in prison this morning following his August conviction for securities fraud and conspiracy.

New iPhone has Some Cool Features but Eliminating Dropped Calls for AT&T Subscribers is not One of Them

By Steven Berk on October 12th, 2011 Posted in Consumer Protection

Apple’s new iPhone 4s will hit the market on Friday. Sure we’d like it to look even slicker and have some features that blow us away, but alas, just some pedestrian changes to what is already the smartest of the smart phones. For example, the already great camera is improved. You can edit pictures directly… Continue Reading

Wall Street Will Report Record Bonuses – Paul Krugman and I Ponder How??

By Steven Berk on October 11th, 2011 Posted in Banks and Financial Services

Wall Street: put people to work, and then collect your bonuses with your heads held high. And stop trying to destroy any sensible speed limits and caution signs (such as the Volcker Rule). Regulation keeps cars on the road. Without it we are doomed to repeat the mistakes of the last boom…

Jeffrey Goldberg, the Intelligent Observer: Chris Christie and the Fallacy of the Entitlement Society

By Steven Berk on October 7th, 2011 Posted in Weekend Edition

At his press conference announcing his decision not to seek the 2012 Republican nomination for President, New Jersey Governor Chris Christie used a phrase we hear a lot these days, stating that America needs to move from an entitlement society to an opportunity society. Nobody can argue against more opportunity, although how you increase opportunity… Continue Reading

The Banks’ Greatest Fear: An 84 Year Old man Named Paul Volcker

By Steven Berk on October 7th, 2011 Posted in Banks and Financial Services

You’d think banks would have a lot more to worry about than an unemployed octogenarian. Perhaps a portfolio of worthless subprime mortgage securities? Nope. The government will bail us out. How ’bout dwindling revenues in the face of a continued economic downtown? No worries, we’ll just start charging fees for everything our customers do, from… Continue Reading

In How Many Ways Can We Bail Out Bank of America?

By Steven Berk on October 5th, 2011 Posted in Banks and Financial Services

Surely now that we’ve bailed out the banks, they throw the lowly depositor a bone, right? Of course not. These hallway bullies already have our lunch money; now they’re after our caps, shoelaces and bubblegum–anything they can grab. Starting in 2012, Bank of America customers who plan to use their debit cards can expect to pay $5.00 per month, every month. You read that right.

More Regulation, More Prosperity

By Steven Berk on October 4th, 2011 Posted in Consumer Protection

At least once a week a new report comes out detailing inadequacies or improprieties by one or more of the companies involved in the housing bubble and financial crisis… While we read the reports and follow the news, the foreclosures continue, along with the unregulated credit ratings, robo-signings, and predatory lending. Nothing material about our current practices has changed.