Thursday, November 18, 2010
The Daily Campus, Page 3
News
Foreclosure class actions pile up against banks NEW YORK (AP) — Foreclosure-fraud class action lawsuits are starting to pile up against major banks across the U.S., threatening a besieged industry with billions more in potential losses. Bank executives are swarming Capitol Hill this week to defend themselves against multiple foreclosure-related investigations, including one by all 50 state attorneys general. Talks are under way in that probe in hopes of reaching a settlement, but that wouldn’t extinguish the mounting threat of an avalanche of class actions. A congressional watchdog said in a report issued Tuesday that the foreclosure document debacle could threaten major banks with billions of dollars in losses, further prolong the housing depression and damage the government’s effort to keep people in their homes. The class actions, which could be expanded nationally, seek damages for homeowners whose properties were illegally foreclosed upon by banks using fraudulent documents. Suits have been filed in Maryland, New Jersey and Massachusetts that target Bank of America Corp., Wells Fargo & Co., HSBC PLC and JPMorgan Chase &
Co. In Florida and Maine, Ally Financial, formerly known as GMAC Mortgage, is also being targeted. Perhaps an even bigger threat are the lawsuits that contend the banks’ foreclosure machinery amounted to a racketeering enterprise. One such case, an Indiana lawsuit against Bank of America, was filed under civil Racketeering Influenced and Corrupt Organizations or RICO laws, which allow damages to be tripled. The race is on for the banks to keep the scandal from metastasizing. Crisis management specialists are working around the clock to help banking executives stem the financial and public relations disaster. Shares of Bank of America, the biggest U.S. lender, are already down 21 percent for the year, making it the biggest laggard in the 30 stocks that make up the Dow Jones industrial average. Even if a settlement materializes with the state attorneys general, it won’t necessarily stop all the class actions, although it could slow their momentum and limit their scale. A settlement would also help assuage public distrust and outrage that is fueling a consumer backlash against banks.
The probe by the state prosecutors amounts to far more than an effort to root out the “robo-signers,” whose backoffice antics of signing thousands of foreclosure affidavits a day helped trigger the scandal. Lawmakers are also pressuring the banks to re-engineer their entire mortgage and foreclosure process to rid it of what they say is systemic dysfunction. For now, much of the talk in the banks’ negotiations with the state prosecutors involves a possible compensation fund, modeled on the one created for victims of the BP oil spill, for people who went through foreclosure proceedings based on faulty documents. Details are still hazy, but a consensus seems to be building that some kind of financial remedy is needed. “It’s a preliminary discussion and it’s part of several options being considered by this group,” said Geoff Greenwood, a spokesman for Tom Miller, the Iowa attorney general whose office is leading the investigation against the banks by the state AGs. Greenwood said the attorneys general have had several meetings by phone and in person with officials of some banks in recent weeks, and they plan
Malloy taps former Stamford aide as budget chief
HARTFORD, Conn. (AP) — Connecticut Gov.-elect Dan Malloy’s new pick for state budget director warned Wednesday that “shared pain and shared sacrifice” will be needed to tackle the state’s budget woes and its multi-billion-dollar deficit projections. Benjamin Barnes, Malloy’s choice for secretary of the Office of Policy and Management, said state policymakers can no longer rely on one-shot revenues or borrowing schemes to balance the budget. Instead, he said, they need to take on the longterm challenges Connecticut faces to put the state on a solid fiscal footing. The new budget year that begins July 1 is forecast to have a $3.44 billion shortfall — a figure that’s expected to be tens of millions of dollars larger if Malloy institutes accounting rules requiring that expenses incurred in one fiscal year be paid for in that year. “I think the concept of shared pain and shared sacrifice is critical to our success here,” Barnes told reporters at a news conference Malloy called to announce the appointment. “I think it’s going to involve a lot of very difficult decisions that are challenging for a great number of constituencies in Connecticut. There’s no ques-
AP
Benjamin Barnes, Connecticut Gov.-elect Dan Malloy’s choice for secretary of the Office of Policy and Management.
tion that that’s true.” The 42-year-old Barnes, who lives in Stratford with his wife and three sons, held several positions with the city of Stamford, most recently the director of operations — a position Malloy described as the city’s OPM secretary. The city’s annual budget is about $500 million; the state’s yearly budget is about $19 billion. In total, Barnes served eight years in the Malloy administration in Stamford, including as director of administration and director of public safety, health and welfare. “Ben understands, because we’ve discussed this, that this is
Classifieds Classifieds Dept. U-189 11 Dog Lane Storrs, CT 06268
tel: (860) 486-3407 fax: (860) 486-4388
for sale
ON CAMPUS HOUSING The Nathan Hale Inn is now reserving Spring and Fall housing. Excellent location, housekeeping, private bath, pool & spa, fitness center, high speed internet, includes all utilities. Parking option available. Contact missy.diloreto@ihrco.com 860427-7888 http://www.nathanhaleinn.com/
Office Hours: Monday – Friday 9 a.m. – 4 p.m.
For more information: www.dailycampus.com
for rent
LOOKING FOR OFFCAMPUS HOUSING Roommates or Sublets? Check out the UConn Off-Campus Student Services website at: www.offcampus.uconn. edu ONE BEDROOM HOUSE with loft. Architect designed (3yrs old). Cozy/spotless 1&1/2 baths w/first floor washer/dryer, all appliances, hardwood/ tile floors, full basement, private lake privileges, country setting. Available for immediate occupancy. Easy commute to I-84,
a great challenge for him,” said Malloy, who lauded his pick as someone with “great budgetary experience” and a proven track record of public sector success. “I explained to him that he will get a day off in August, and not before, and that a lot of work lies before him.” Barnes is currently the operating officer for the Bridgeport Public Schools, where he’s responsible for overseeing the school system’s facilities, transportation, technology and a $215 million budget. Barnes, who holds a bachelor’s degree in history from Swarthmore College and a masters degree in urban planning from New York University, also worked as the government finance director for the Connecticut Conference of Municipalities and as a planner for the cities of Hartford and St. Petersburg, Fla. He will replace Brenda Sisco, the acting secretary. She was appointed to the job by Gov. M. Jodi Rell after the former secretary, Robert Genuario, was named a superior court judge. Malloy said he hasn’t decided whether to keep any of Rell’s appointees, including some who now work at the Office of Policy and Management. He said some commissioners have asked to keep their jobs.
AP
Members of Alliance of Californians for Community Empowerment (ACCE), from left: Betty Steele, Mabdullah Mohamed and Lyneva Mottley protest outside Bank of America offices to demand banks’ accountability, foreclosure moratorium and loan modifications.
to meet with others. However, “We’re not close to a deal,” Greenwood said. Among other topics being discussed in the talks, prosecutors
MEXICO CITY (AP) — A captured drug trafficker said Wednesday that the boss of one of Mexico’s fiercest cartels is physically and emotionally drained and that the leader’s recent offer to disband the gang is real. Sergio Moreno Godinez, known as “Yellow,” said La Familia was behind a letter last week that offered to dissolve if the government will protect citizens in the western state of Michoacan, where the cartel is based. The cartel is in decline and leader Servando Gomez, a.k.a. “La Tuta,” has suggested they give up, Moreno said in an interrogation video released by Mexico’s federal police.
GRAD STUDENTS 2-bedroom apt good location on bus route. Heat, hot water & appliances included. Security deposit $850/ month 860-456-0681 help wanted
DAILY CAMPUS WRITERS WANTED! If you’re interested in writing for The Daily Campus, come to a section meeting at the Daily Campus building, 11 Dog Lane. All majors welcomed!
“The organization ... is in decline, it’s very badly structured,” Moreno said. Saying that La Tuta “seems exhausted, Moreno added, “It’s like he doesn’t want problems.” Police say Moreno, who was arrested Tuesday, was the major trafficker for La Familia in the port city of Lazaro Cardenas. La Familia, Mexico’s main trafficker of methamphetamine, captured nationwide attention in 2006 by rolling severed heads into a disco in the mountain town of Uruapan. Shortly afterward, President Felipe Calderon intensified the war on drug cartels, sending thousands of federal troops and police into Michoacan, his home state. The government has since
deployed tens of thousands of federal forces to drug trafficking hotspots across Mexico. Several kingpins have been captured or killed, but cartel violence has soared, claiming more than 28,000 lives in four years. The violence terrorized parts of Michoacan, one of Mexico’s most picturesque states, with a colonial capital, quaint mountain towns, sparkling lakes and famed monarch butterfly sanctuary. La Familia has been blamed for some of the brashest attacks on security forces, including an ambush that killed 12 federal police officers in June and a spasm of violence last year in which at least 18 police officers were killed.
SURJ protested pro-life group in Hartford from PRO-CHOICE, page 1 “We’re not yelling, we’re not screaming, we’re just trying to give people the information they need to know,” said Michelle Farber, a 7thsemester anthropology major and co-president of SURJ. Several SURJ members attended a “Homophobia Kills” Die-In in Hartford, which highlighted the struggle of the LBGT community. The event consisted of a ‘mock dying’ held in front
For ads of 25 words or less: 1 day............................................................................ $5.75 3 consecutive days........................................................ $15.25 5 consecutive days: . .................................................... $26.50 10 consecutive days:..................................................... $48.00 1 month:..................................................................... $88.00 Semester: ... ... ... ... ... ... ... ... ................................ $200.00 Each additional word: ... ... . .................................... ... ..$0.10 Additional Features: Bold ... ........................................... .$0.50
Hartford, UConn, and ESCU. 1-860-933-2822
of investors in mortgage-backed securities, banks put homeowners who are in loan modification programs into foreclosure proceedings at the same time.
Detainee says Mexico’s La Familia gang in decline
Rates:
for rent
also want banks to do more home loan modifications and to end something called the “dual-track” process. Under that system, which was put in place at the insistence
help wanted
Sunday: Commentary @ 8pm. Monday: News @ 7pm, Focus @8pm, Sports @ 8:30 pm, Photo @ 9:30pm. For more info. call 860-4863407.
business/Sales Opportunities
JOIN THE FIGHT AGAINST GERMS! Discover the first EPA approved antimicrobial in 30 years. Non-toxic, food contact safe, odorless! Kills a wide spectrum of germs including MRSA &
of the capitol building, where the attendees all ‘died’ in unison at the sound of a whistle, while an announcer called out the names of gay people who have committed suicide. This demonstration was followed by a rally, speakers and slam poetry. According to a member of SURJ, the event was “powerful and moving, and displayed how gay-friendly Hartford is.” SURJ also recently counterpicketed a pro-life group that was protesting in front of a Planned
Parenthood in Norwich. The committee plans on screening movies such as “Eggsploitation” and “Daddy I Do.” Students are encouraged to attend these films. SURJ welcomes new members, and both men and women are encouraged to join SURJ in their efforts to educate themselves and others on issues concerning reproductive choice.
Kimberley.Wilson@UConn.edu
Policies:
Classifieds are non-refundable. Credit will be given if an error materially affects the meaning of the ad and only for the first incorrect insertion. Ads will only be printed if they are accompanied by both first and last name as well as telephone number. Names and numbers may be subject to verification. All advertising is subject to acceptance by The Daily Campus, which reserves the right to reject any ad copy at its sole discretion. The Daily Campus does not knowingly accept ads of a fraudulent nature.
business/sales
H1N1! Contact info@ theiv7store.com to purchase today! Business opportunities also available
services
ROSS EDITORIAL SERVICES: Will help organize, proofread and edit your dissertations, theses, articles, chapters. Phone 860-429-6688; Email rosseditorialservices@earthlink.net; Web rosseditorialservices. com
Services
greatACNrate.com World’s Largest Direct Seller of Essential Services classes
!Bartending! Make up to $300 a day. No experience necessary. Training provided. (800) 965-6520 ext. 163 travel
SPRINGBREAK HEADQUARTERS! Early booking prices to Punta Cana, Jamaica, Mexico. The professionals at TRAVELPLANNERS know the deals! 1254 Storrs Rd 860-487-2030 vacations@charter.net