Implode-Explode Heavy Industries news feed http://implode-explode.com/ Tracking the many faces of the global credit implosion. en-us iehi-feed-65204 Thu, 27 Feb 2020 19:49:24 GMT Wells Fargo paid 9x more in criminal penalties than it paid in interest to its depositors in past decade http://implode-explode.com/viewnews/2020-02-27_WellsFargopaid9xmoreincriminalpenaltiesthanitpaidininteresttoits.html iehi-feed-65203 Wed, 26 Feb 2020 13:54:36 GMT Quicken Loans hits "pause" on One Reverse Mortgage http://implode-explode.com/viewnews/2020-02-26_QuickenLoanshitspauseonOneReverseMortgage.html iehi-feed-65202 Tue, 25 Feb 2020 17:15:45 GMT Socialist Bernie Sanders And His Pigsty DC Home http://implode-explode.com/viewnews/2020-02-25_SocialistBernieSandersAndHisPigstyDCHome.html iehi-feed-65201 Mon, 24 Feb 2020 22:27:06 GMT Wells Fargo Forced To Pay $3 Billion For Fake Account Scandal http://implode-explode.com/viewnews/2020-02-24_WellsFargoForcedToPay3BillionForFakeAccountScandal.html Wells Fargo, the fourth largest bank in the United States, agreed on Friday to pay $3 billion to settle its long-running civil and criminal probes into the heinous accusations of rampant fraudulent sales practices.

The San Francisco-based bank announced that it will pay the substantial financial penalty to both the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). Roughly $500 million of the fine will be allocated to the SEC. The regulator will use the funds from the settlement to offer some restitution to the the defrauded customers. 

The problems began when Wells Fargo executives pressured rank-and-file bank personnel to aggressively cross-sell products to enhance sales and revenue to meet certain quotas. Deception reared its ugly head when Wells Fargo employees then created millions of savings and checking accounts for customers without their knowledge or approval. 

For comparison's sake, major WF shareholder "Uncle Warren" Buffett made sure to get a dig into cryptocurrencies today -- "he doesn't hold them and never will"; but WF shares are, presumably, sterling!

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iehi-feed-65200 Mon, 24 Feb 2020 22:20:28 GMT Dow sinks 1,000 points as pandemic fears rattle Wall Street http://implode-explode.com/viewnews/2020-02-24_Dowsinks1000pointsaspandemicfearsrattleWallStreet.html iehi-feed-65199 Mon, 24 Feb 2020 15:58:09 GMT Trump's Seedy & Dysfunctional Relationship With Deutsche Bank: Over $1.7bln In Defaults--$1bln To Outside Bond Investors http://implode-explode.com/viewnews/2020-02-24_TrumpsSeedyDysfunctionalRelationshipWithDeutscheBankOver17blnInD.html iehi-feed-65198 Mon, 24 Feb 2020 13:44:57 GMT Communist Bernie Sanders Owns Three Houses. Not Bad For A "Socialist" http://implode-explode.com/viewnews/2020-02-24_CommunistBernieSandersOwnsThreeHousesNotBadForASocialist.html iehi-feed-65195 Fri, 21 Feb 2020 15:36:17 GMT Leaked Mulvaney Recording: "We Don't Really Care About Deficits" http://implode-explode.com/viewnews/2020-02-21_LeakedMulvaneyRecordingWeDontReallyCareAboutDeficits.html The Washington Post obtained a recording of Mulvaney at the Oxford Union, sounding an awful lot like a Daily Kos blogger. "My party is very interested in deficits when there is a Democrat in the White House," he said. "The worst thing in the whole world is deficits when Barack Obama was the president. Then Donald Trump became president, and we're a lot less interested as a party." Until it comes time to wield the deficit as a weapon to cut the safety net, of course.

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He ... made another admission about why Republicans refuse to do anything about climate change, which he implicitly acknowledged as a real thing. "We take the position in my party that asking people to change their lifestyle dramatically, including by paying more taxes, is simply not something we are interested in doing." ... They never have a problem with asking poor people, senior citizens, communities of color or anyone who doesn't vote Republican to change their lifestyle dramatically by not having enough to eat, or a roof, or health care...

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iehi-feed-65194 Thu, 20 Feb 2020 16:54:47 GMT Rhode Island Property Preservationist Gets 8 Years In Prison http://implode-explode.com/viewnews/2020-02-20_RhodeIslandPropertyPreservationistGets8YearsInPrison.html iehi-feed-65191 Tue, 18 Feb 2020 17:19:53 GMT Rushmore Loan Management Warning! http://implode-explode.com/viewnews/2020-02-18_RushmoreLoanManagementWarning.html iehi-feed-65190 Sun, 16 Feb 2020 23:37:40 GMT Economists Finally Tackle Gentrification: Find Mixed (But Overall Good) Effect of Adding Supply http://implode-explode.com/viewnews/2020-02-16_EconomistsFinallyTackleGentrificationFindMixedButOverallGoodEffe.html Neighbors may assume that the high-rises cause the high rents. That's plausible if new buildings attract much wealthier residents, who in turn attract higher-end amenities that make a neighborhood more desirable... [NYU researcher Xiaodi Li] finds in New York that new buildings do attract more restaurants and cafes nearby. But she concludes that any effect those amenities have pushing up local rents is swamped by the power of new supply to push rents down. On net, she finds, for every 10 percent increase in housing supply, rents for properties within 500 feet drop by 1 percent, relative to other high-demand areas.

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"Wealthy people are already looking to move into the neighborhood," Mr. Mast said of how he would explain his findings to a heated public meeting over such a proposal. "So we can build this building that will give them the sort of unit that they want to live in. Or if we don't, they'll take a unit nearby and renovate it."

That logic may be little comfort to longtime residents, particularly those concerned about neighborhood changes that go beyond rent prices. But it addresses at least one argument against new housing.

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One caution comes from research by Anthony Damiano and Chris Frenier, doctoral candidates at the University of Minnesota who looked at new large-scale buildings built across Minneapolis. Like Mr. Mast and Ms. Li, they find that new supply helped ease rent pressure for higher-end units nearby. But at the bottom third of the market, they concluded that new buildings had the opposite effect, accelerating rents.

It's possible in some contexts that new market-rate apartments could cause one set of nearby landlords to curb their rents even as it causes another set to reassess how cheap their rents have been. It's even possible that lower-income renters may feel a bite from new construction at first, even if they may benefit from it over the long run

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iehi-feed-65186 Tue, 11 Feb 2020 13:50:07 GMT Deadbeat Dad Bernie Sanders Never Paid Child Support http://implode-explode.com/viewnews/2020-02-11_DeadbeatDadBernieSandersNeverPaidChildSupport.html iehi-feed-65185 Mon, 10 Feb 2020 04:20:48 GMT Real pay data show Trump's 'blue collar boom' is more of a bust for US workers: in 3 charts http://implode-explode.com/viewnews/2020-02-09_RealpaydatashowTrumpsbluecollarboomismoreofabustforUSworkersin3c.html iehi-feed-65184 Sun, 09 Feb 2020 14:55:48 GMT Foreclosure Horror Stories: 4 Bizarre Foreclosure Stories http://implode-explode.com/viewnews/2020-02-09_ForeclosureHorrorStories4BizarreForeclosureStories.html iehi-feed-65182 Fri, 07 Feb 2020 15:34:19 GMT FT Report: $2B of "Middle Eastern" Money Lies in Kushner Bailout With Secretive Behemoth Brookfield http://implode-explode.com/viewnews/2020-02-07_FTReport2BofMiddleEasternMoneyLiesinKushnerBailoutWithSecretiveB.html On a busy stretch of Manhattan's Fifth Avenue a few blocks south of Trump Tower, a decaying skyscraper stands as a rebuke to the $1.8bn deal that Jared Kushner helped his family sign a decade ago, at the age of 26. It was the most expensive New York office purchase in history, and for a time it looked likely to sink the Kushners' business. Steve Roth, the billionaire who co-owned 666 Fifth Avenue, lamented it would "be worth a lot more if it was just dirt".By 2016, Mr Kushner was searching for a way out. Destined for a top job in his father-in-law's White House the following year, he found plenty of people to talk to, but no one who was buying. Discussions with Anbang, the Chinese insurance group, came to a halt some time before its flashy chairman Wu Xiaohui landed in a Chinese jail. The Qatari finance minister Ali Shareef al-Emadi met Mr Kushner's father in 2017, although Charles Kushner has said he took the appointment "out of respect" and stressed there could be no deal.Then, with months to go before $1.2bn of mortgage payments fell due in February 2019, the Kushners won a reprieve -- one that looked nothing like a favour from a foreign state. It was an investment from financial group Brookfield, which leased the building whole, paying nearly a century of rent in advance.

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To unpack the Canadian group's accounts is to discover not so much a company as a giant, triangular jigsaw board that spreads across the world and covers assets worth $500bn. The pieces are hundreds of corporate entities, all locked together by elaborate contracts, which give 40 people at the top the right to rule huge sections of the puzzle almost as if it were their own. Those insiders wield such power that the companies below them could face risks similar to those of "pyramid control companies", according to a draft investor disclosure that Brookfield filed with the Securities and Exchange Commission in 2013. (The final version warned instead of risks "associated with a separation of economic interest from control".)

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The known links between Qatar and Brookfield all converge on the investment group's listed property fund BPY. About one-tenth of the fund's assets are tied up in skyscrapers in Canary Wharf and Manhattan that are co-owned by Qatar, but the connection goes further. Through a sovereign wealth fund, Doha is one of BPY's biggest investors, holding $1.8bn worth of BPY preferred equity. The securities have a debtlike quality, and Qatar can force BAM to buy them back for $1.8bn over the next six years.In theory, Qatar has significant influence over BPY. It is entitled to choose one person to sit on BPY's board, and to receive confidential information that other investors never see. Brookfield says the kingdom has never exercised either of those rights. (The Qatar Investment Authority declined to comment.) Both sides have previously indicated that, when Brookfield was negotiating a $1.3bn lease on 666 Fifth Avenue, a building that Charles Kushner had discussed with the Qataris the previous year, the kingdom was not involved.No matter who made the decision or knew about it, rescuing the Kushners strikes some real estate investors as ill-advised.

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In the public accounts of BPY, the listed property fund that received Qatari investment, 666 Fifth Avenue has already all but disappeared. Last January, BPY lost control of BSREP III, the private vehicle that owns the building, after reducing its stake to $1bn. New investors piled in, each taking a piece of the Kushner tower, and lifting the private fund's firepower to $15bn.That influx of cash has not made the tower's ownership any more transparent. A handful of US pension funds have acknowledged their participation, but few other investors have been identified publicly. Knowledgeable people insist that no Qatari money is involved. Materials reviewed by the FT show that about $3bn of the total comes from sovereign governments, although they do not specify which ones, and $2bn of it from the Middle East, although the document does not say exactly where.

So, despite claims to the contrary, Qatari money was indeed involved in "bootstrapping" the Kushner bailout (based on God knows what geopolitical pressure). Now a bunch of other anonymous investors have taken their place and piled on, but admittedly, as $3 bln from sovereign governments, $2 bln from the Middle East. The potential conflicts of interest with US foreign policy are unknown (and, given recent experiences with the Trump administration, constitute a realistic, if not critical, concern).

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iehi-feed-65180 Thu, 06 Feb 2020 19:53:33 GMT Attorney Anthony Colleluori: The Lionel Hutz Of Long Island http://implode-explode.com/viewnews/2020-02-06_AttorneyAnthonyColleluoriTheLionelHutzOfLongIsland.html iehi-feed-65179 Wed, 05 Feb 2020 16:57:57 GMT Former Porn Lawyer Off To Federal Prison For Mortgage Fraud http://implode-explode.com/viewnews/2020-02-05_FormerPornLawyerOffToFederalPrisonForMortgageFraud.html iehi-feed-65178 Tue, 04 Feb 2020 23:43:54 GMT Macy's to close 125 stores, cut 2,000 corporate jobs, in hunt for growth http://implode-explode.com/viewnews/2020-02-04_Macystoclose125storescut2000corporatejobsinhuntforgrowth.html The company has lost market share in core categories like apparel, and its profits have been pressured, as fewer shoppers take trips to malls, and instead are buying on Amazon and other online retailers.

The steps Macy's is taking are expected to generate annual gross savings of about $1.5 billion, which will be fully realized by the end of 2022. This year, Macy's expects to save roughly $600 million.

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iehi-feed-65177 Tue, 04 Feb 2020 19:43:20 GMT New York Zombie Foreclosure Warning: Second Lien Holders Are Coming! http://implode-explode.com/viewnews/2020-02-04_NewYorkZombieForeclosureWarningSecondLienHoldersAreComing.html iehi-feed-65176 Sun, 02 Feb 2020 17:12:51 GMT Slow GDP Growth Undermines Trump "Success" Claims http://implode-explode.com/viewnews/2020-02-02_SlowGDPGrowthUnderminesTrumpSuccessClaims.html