• Federal Government orders Goldman Sachs to actually do their job.
    8 replies, posted
[release]WASHINGTON (Dow Jones)--[b]The U.S. Federal Reserve on Thursday ordered Goldman Sachs Group Inc. (GS) to conduct an independent review of foreclosure practices by its former mortgage subsidiary, Litton Loan Servicing LP, which was sold earlier in the day to Ocwen Financial Corp. (OCN). The Fed said the review would cover "a pattern of misconduct and negligence relating to deficient practices in residential mortgage-loan servicing and foreclosure processing" by Litton last year and in 2009. The Fed also plans to announce monetary penalties, it said in a release.[/b] "Goldman Sachs has acknowledged in today's action that it will be responsible for satisfying any civil money penalty that the Board of Governors could have assessed against Litton for its conduct," the Fed said. As reported in The Wall Street Journal on Thursday, the three firms have also reached a deal with New York's financial-services superintendent to end the practice of robo-signing foreclosure documents and conduct a review of mortgage practices. The New York regulator has been working with the Fed to investigate the foreclosure troubles. [b]Thursday's action follows a crackdown by regulators in the spring against 14 other major financial institutions over improper foreclosure practices, including Bank of America Corp. (BAC), Wells Fargo & Co. (WFC), J.P. Morgan Chase & Co. (JPM) and Citigroup Inc. (C).[/b] The review by Goldman Sachs must be consistent with efforts underway by those other firms, the Fed said. While the bank is exiting the mortgage-servicing business with Thursday's sale of Litton, it must implement reforms similar to those being undertaken by those other firms if it wants to re-enter the market. The Fed cited a number of allegedly "unsafe or unsound banking practices" by Litton, the country's 23rd largest residential mortgage servicer, in its foreclosure proceedings. In addition to allegations of so-called called robo-signing--in which bank employees sign documents without reviewing case files as required by law--the Fed said the firm also allegedly didn't have adequate internal controls and failed to sufficiently increase resources to deal with the growing number of foreclosures. Goldman Sachs officials weren't immediately available for comment.[/release] [url]http://online.wsj.com/article/BT-CO-20110901-711888.html[/url]
It looks like the federal government actually does something for the American People for once. I really hope that some people get their houses and money back from the illegal practices and not having their cases reviewed as they should have.
The Fed are technically independent from the government though
Jews
[QUOTE=Lambeth;32065095]The Fed are technically independent from the government though[/QUOTE] In the sense that they're not a legal branch, even though they answer to them and work directly with them all the time. :v: Very little sense in those respects.
Isn't the federal reserve unconstitutional in the US?
[QUOTE=DrBreen;32065946]Isn't the federal reserve unconstitutional in the US?[/QUOTE] some people think so
[QUOTE=Lambeth;32065095]The Fed are technically independent from the government though[/QUOTE] Either way would you really want to mess with them?
[QUOTE=DrBreen;32065946]Isn't the federal reserve unconstitutional in the US?[/QUOTE] Some argue so but in reality there is no constitutional clause that outright says it shouldn't exist.
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