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The Corporate Observer A Publication by Attorneys Devoted to Protecting Consumer Rights

Monthly Archives: December 2011

Bank of America Pays $335 million To Settle Systemic Racism in Countrywide’s Lending Practices

Posted in Banks and Financial Services

Bank of America will pay $335 million to settle their dispute with DOJ. The settlement will directly benefit those damaged by Countrywide’s actions. Click here for the official settlement announcement.
Is this justice? Hardly. Blatant, institutionalized racism and greed must be punished with more than a slap on the wrist.

Legislation is not Enough to Curb Cell Phone Use While Driving

Posted in Social Policy

Even in the long term, as technology accelerates, one wonders if legislation is the answer. Though organizations like the NTSB and government voices like Ray LaHood should continue to rail against the evils of distracted driving, it may be more realistic to hope for systems that are more effective and safe.

The Back Room Bail Out: Congress Provides the “Inside” Information that Drives Wall Street

Posted in Banks and Financial Services

In more recent times, Wall Street banks know that a government announcement on particular policies can drastically and immediately affect stock movement. And when you can trade rapidly through a high speed modem – that spells “ka-ching”, big money. One of the latest games takes the form of lunches, meetings, and panel discussions organized by firms who will earn a commission on trades resulting from the information provided at these soirees

2011 All-American Whistleblower Team

Posted in Consumer Protection

This year’s team – Franz Gayl, Cheryl Eckard, Michael Winston, Bunny Greenhouse, and Harry Markopolos – saved lives and contributed billions to our national treasury. We honor their courage, dignity and willingness to stand for justice.

The “Robin Hood Tax” Misses the Point

Posted in Banks and Financial Services

Any such tax will divert us from the core problem: Banks are getting bigger and stronger while regulation lags dangerously behind. This Robin Hood, although dapper in his green tights and equipped with a full quiver of arrows, is no match for the modern arsenal and armies of lobbyists owned by the banks.

Raj Rajaratnam To Spend The Weekend At Home Then It’s Off to Federal Prison; Despite the Eloquence of His Appellate Attorney Patricia Millett

Posted in Banks and Financial Services

Mr. Rajaratnam, enjoy your last weekend at home. Watch some football, enjoy your favorite foods and make sure to hug your kids. Because come Monday it’s federal prison in Massachusetts – ouchhh. Despite the arguments of your eloquent and powerful attorney, Patricia Millett, the trial judge and a panel of judges from the second circuit court of… Continue Reading

Quick Links 12/1/11: The Consumer Financial Protection Board is getting rolling; Nicholas Kristoff sits down with a former Citigroup salesman; and finally, a well written piece on the wisdom of regulation

Posted in Consumer Protection

The CFPB  is taking important first steps towards its mandate of helping consumers wade the murky waters of personal finance. Click Here Proof Positive. Sixty Percent of his evaluation was focused on selling risky subprime mortgages. Read this and more in Nicholas Kristoff’s captivating interview with a banker/salesman from Citigroup who seems to have realized… Continue Reading