Tag Archives: U.S. Securities & Exchange Commission

Targeting job growth to boost the nation's economy and housing markets, a co-authored bill calls for the easing of mandates contained within the Dodd-Frank Act and the Sarbanes Oxley Act. U.S. Senators Mark R. Warner (D-Virginia), Mike Crapo (R-Idaho), Pat Toomey (R-Pennsylvania), and CHarles Schumer (D-New York) recently announced the Reopening American Capital Markets to Emerging Growth Companies Act of 2011; the senators hope to help small businesses seeking to go public by altering the pace required to meet expensive obligations in terms of investor protections.

A U.S. district court judge threw out a settlement Monday that Citigroup proposed as a way to compensate investors for losses related to $1 billion in collateralized mortgage debt. Citigroup wanted to settle with the Securities and Exchange Commission by covering the losses with $285 million. He cited the need for more information in lieu of a request for enforcement of relief by the court from the commission, a federal agency, and Citigroup, a private party.

JPMorgan Chase & Co. has a buyer for $15 billion in mortgage servicing rights from the financial institution, with the announcement that Ocwen Financial Corp. would purchase the bank's MSRs for a rumored $950 million. Ocwen's acquisition follows the company's decision to raise $375 million in new equity through offering 25 million shares of public common stock.

Fannie Mae and Freddie Mac remain under scrutiny in the wake of large salaries and bonuses for their executives, as lawmakers from both major parties mount a rare joint effort to criticize the GSEs and their federal regulator. No less than 60 senators a total of 35 Republicans and 25 Democrats crossed the aisle to circulate a letter Friday that denounced the Federal Housing Finance Agency for signing off on $12.79 million in bonuses for ten executives with the GSEs. Furor over the bonuses follows a string of changes for Freddie Mac.

The head of the agency that regulates the GSEs addressed one lawmaker's recent proposal to eliminate the federal lifeline for Fannie Mae and Freddie Mac Thursday even as the latter filed staggering third-quarter losses and requested another $6 billion in taxpayer funds. Federal Housing Finance Agency Acting Director Edward DeMarco and several others testified before the House Subcommittee on Capital Markets, which heard the chief regulator describe why the federal government needs to slowly phase out taxpayer support for the GSEs.

Shareholders in Municipal Mortgage & Equity, LLC, can now take a look at all proxy paperwork in preparation for the company's annual meeting. Better known as MuniMae, the entity has filed its proxy materials with the U.S. Securities Exchange Commission in advance of the 2011 Annual Meeting of Shareholders, which will take place on November 9. Listed among the OTC's collection of companies, better known as the riskier "Pink Sheets," MuniMae is part of the entity's OTCQB tier.

The Securities and Exchange Commission recently announced a new game plan when it comes to targeting companies and individuals under fire for allegations stemming from the mortgage meltdown. The SEC will now update enforcement procedures; moving away from difficult to prove filings that are geared to prove purposeful wrongdoing, recklessness, or fraud, the SEC will reduce its burden with civil cases that require only proof of negligence. The SEC has utilized similar tactics as as supplement to more intensive accusations.

Standard & Poor's is coming under heavy scrutiny from the Securities and Exchange Commission for it alleged misconduct in handling valuations for a $1.6 billion mortgage-bond deal. Regulators for the SEC are focusing on the company's possible exploitation of fictitious assets when rating the transaction in question. The bond deal became a debacle during the financial crisis, and this week, S&P's parent company, McGraw-Hill Cos., received notice from the SEC that it could be facing civil charges related to its potentially fraudulent actions.

Bank of America Corp. will continue to be under investigation, following a recent filing that alleges the big bank failed to properly inform investors as to risk factors associated with a pending lawsuit from American International Group. Hagens Berman announced that it will advance its look into BAC's investor dealings surrounding the bank's legal issues with AIG. BAC shares dropped significantly in the wake of the AIG filing, and it's estimated that the full damages equate to around 20 percent per share.

A new acquisition is in the works for Ranieri Real Estate Partners LP (RREP) and WL Ross & Co. LLC. The companies are teaming up to purchase Deutsche Bank Berkshire Mortgage.