Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Anthony@Pacific & TRUTHSEEKER Expose Crims & Scammers!!! -- Ignore unavailable to you. Want to Upgrade?

To: StockDung who wrote (4493)	9/7/2007 10:17:21 PM
From: ravenseye	Respond to of 5673

STATE OF NEW JERSEY DEPARTMENT OF BANKING AND INSURANCE STATEMENT ON SUBPRIME MORTGAGE LENDING state.nj.us 7/20/07 Date

To: StockDung who wrote (4493)	9/10/2007 2:56:37 PM
From: ravenseye	Respond to of 5673

Mortgage debacle the result of criminal action, not mistakes Kai-Alexander Schlevogt, Singapore thejakartapost.com Here is the ploy: Banks rapidly grow their loan books by granting mortgages even to borrowers who cannot afford them. They swiftly sell these risky loans to other financial intermediaries and thus clean their balance sheets. Those repackage them as "collateralized debt obligations" (CDOs), adorn the securities with high credit ratings, and thus hide the junky nature of the underlying assets. Then, they sell myriad slices of what essentially is a black box to investors around the globe, who are lured by high interest rates and put blind faith both in the sellers' brands and credit ratings. Central banks look the other way. In a pyramid scheme, a steady flow of new CDOs helps financing the interest payments to the investors. The Pandora's Box is opened when the mortgage holders start to default and the equivalent of a run on banks is triggered. Liquidity is drained from the system, since banks refuse to lend and investors scramble to escape from the trap. Market insiders again profit, this time from well-informed bets against the junk loans. Financial institutions at the brink of collapse are rescued with taxpayers' money. Central banks succumb to pressures to cut interest rates, which fuels inflation. The financial problems spread into the real economy and unleash a vicious circle: The credit squeeze dampens investment in the housing sector and results in layoffs. Distressed consumers spend less and default on other loans, prompting banks to tighten credit further. Governments around the world should implement a "3 R"-framework of retribution, regulation and reengineering to deal with the crisis and prevent similar developments. In the short-term, authorities must stop talking about unfortunate "mistakes" and use the term "crime" instead. The masterminds of the financial time bombs and their accomplices should be prosecuted mercilessly. Destroying the life savings of pensioners and other investors is a serious offense, especially in countries with ageing populations and insufficient retirement provisions. Like drug trafficking, it undermines the fundament of society and thus deserves the harshest sentences that courts have at their disposal. Those criminals and their employers, rather than taxpayers, should pay for the damage using the cash they horded. Criminal convictions and significant compensation payouts will help deter similar crimes. In the medium-term, governments must tighten regulation in certain financial arenas. As for other legal subjects, compliance must be mandatory, not just voluntary. Mortgage features, such as low down-payments and deferred debt-service, should be scrutinized to protect financially naove consumers. Hedge funds must be closely supervised, too. Besides, the authorities must lift the veil hiding the dubious practices of credit-rating agencies and regulate them, too. To eliminate their monopoly power, which leads to abuse, national governments should consider setting up their own credit rating agencies. The authorities also need to regulate securities more tightly and keep a watchful eye on financial "innovations", which often are old tricks in new disguises. A stricter penal code needs to be introduced to deal with financial high crime. In the long-term, the financial system must be changed fundamentally to decrease the likelihood of collapse. Most importantly, countries around the world should move from a market-driven system to a bank-centered financial architecture, which puts firm limits on "securitization". In the past,...

To: StockDung who wrote (4493)	9/10/2007 2:57:29 PM
From: ravenseye	Respond to of 5673

Mortgage broker licensing requirements on horizon BY ELLEN YAN September 10, 2007 newsday.com ...Next year, as many as 50,000 loan officers and brokers are expected to send in applications with fingerprints to the New York State Banking Department, which has beefed up its staff to handle the influx. Applicants will have criminal background checks on both federal and state levels, and they'll also have to attend 18 hours of classes, including three hours on ethics. The licensing and discipline records will go online in January as part of a new database set up by the Conference of State Bank Supervisors. Consumers will be able to look up brokers and loan officers in the 36 states that have various licensing systems, an effort aimed at tracking employees who have been fired and try to go from company to company.... newsday.com ...Industry veterans said it was a sort of joke that anyone could get a loan officer or broker job and sometimes did - disbarred attorneys, criminals, people with bad credit, Wall Street bullpen guys who lost their jobs shouting "buy" and "sell" and then were hired as phone salespeople saying they could get this or that interest rate.... newsday.com ...Starting in January, New York State will begin licensing loan officers and brokers, who will be required to complete [only] 18 hours of classes. Here are the hourly course study requirements for some licensed professions: 45 hours Real estate sales agent 75 hours Hair waxer 90 hours Real estate broker 140 hours Home inspector 1,000 hours Massage therapist 1,300 hours Shorthand reporter 4,050 hours Acupuncturist